DHT Holdings, Inc. 2020 Q1 - Results - Earnings Call Presentation

The following slide deck was published by DHT Holdings, Inc. in conjunction with their 2020 Q1 earnings call.

Comments

[CowSix]

I don't get it, everything looks great on paper yet the market is just pounding it down. Someone shed so light please.

[OneBlueSummer]

Still wish they all would have cut down divi's and just paid down debt. Alas either way most will take either or as a negative.

[gaohong]

That is what I hope. Dividend will not be able to hold the price. Good balance, such as debt free, will support the price.

[ManuelB]

www.tradewindsnews.com/...

This article seems to paint a very gloom picture for H2 onwards basically saying that tankers share price will go back to low 2016 levels...

What are your thoughts🙄?

[OneBlueSummer]

ya maybe in 2 years, remember all these hipster ( disagree with the industry just because they just think so, thinking it will make them sound trendy, ) idealists, with zero certitude credibility have no real leverage.

Look at the numbers! All the tankers reports Ive seen have show improvement on profit and debt pay down even before the cervesa hysteria.
IF they light switched the economy to go back to normal today, how long do you think it will take for it to really go back to normal? At least a year or two.

IF you believe that then you can't believe that article. I have heard two CEO's state they could be debt free by the end of the year. One even bet that he would walk across Norway if he is wrong about profit succeeding.

[gaohong]

They could be debt free, but they never do that. That is the problem.

[bqdoo]

@ManuelB
Article is a firewall, but headline and preview say bull / bear debate. It is a debate and today the bears are winning mindshare and share prices falling. I am taking the other side.

If you want more comments, post the key parts and give your take.

[kris77]

Why no transcript? Anyone has idea?

[Silky Oak Capital]

66% days booked of Q2 at $100k per day. If other 33% are booked at $40k, that is likely another $170m of cash flow this quarter. minus the dividend that means net debt would be $584m.

If spot rates would fall to $15-25k per day for the next 12 months after Q2, with the 10 out of 27 ships on 12 month charters between for an average of $61k per day, they would still generate a further, $160-220m in cash.

Currently net debt is $700m, so that means even rates start to plummet in H2 and 2021, they will have mostly delevered with net debt between $310-$360m vs $1.6-1.7bn in ships.

If this is not the case, and we have a full quarter of lets say $100k day rates for their remaining ships in Q3 or Q4 if another oil demand shock happens, you can add $100m to this calculation.

So then $210-260m of net debt by around this time next year. And book value of $1.5bn in what will probably be a tight tanker market in the medium term.

[Silky Oak Capital]

Market cap is just under a billion $ now, book value will likely be above $1 billion when quarter ends. Book value is basically the value of the ships if for the next 10-12 years (since ships are about 7 years old on average) they would get average rates of about ~$25-30k per day and then get scrapped.

So not a lot of short or medium term optimism is priced in at this point. I think they are a decent hedge against further shut downs at these prices.

[kris77]

It is highly unlikely that 100% gets booked and chances of Q4 100k day are low.

[iamsravankumar]

Can anyone please post your views on the share price. Will it move up?

[sigarms]

Do not understand the beat down on these stocks. Hard to see it happen...

[Player 001]

Next quarter should see a debt reduction of $100MM and a dividend of at least $.50!

[OneBlueSummer]

quarter by quarter, year by year, more money made, more debt paid, can't get any better. Oh ya, ya it can just wait till q2 pops LONG!!

[iamsravankumar]

What is your prediction on the share price? Will it go up?

[OneBlueSummer]

yes, insane buy in value on all tankers right now. As sitting just with q1 results they are all showing steady growth and are about 20% undervalued. That does NOT include the upcoming q2 A bomb that will drop showing 2+ years of profit in April alone.
I wrote a couple blogs on my profile if you want to check them out.