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DHT Holdings (DHT)
NYSE:DHT

DHT Holdings (DHT) AI Stock Analysis

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DH

DHT Holdings

(NYSE:DHT)

Rating:79Outperform
Price Target:
$13.50
â–²(18.32%Upside)
DHT Holdings is well-positioned with strong financial metrics, positive technical analysis, and an attractive valuation. The earnings call provided additional confidence with positive guidance and strategic moves suggesting future growth. Despite some revenue volatility and potential operational expenses, the overall outlook remains favorable, supporting a high stock score.
Positive Factors
Dividend Strategy
DHT's 100% payout of net income dividend strategy and low leverage position it to payout higher dividends as VLCC rates move higher.
Market Positioning
DHT's fleet primarily trades in the spot market, positioning it to take advantage of increasing rates and rate spikes.
Revenue Enhancement
DHT's fleet is fully scrubber fitted, which provides an advantage by adding $6-10k per day to VLCC rates.
Negative Factors

DHT Holdings (DHT) vs. SPDR S&P 500 ETF (SPY)

DHT Holdings Business Overview & Revenue Model

Company DescriptionDHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. As of March 17, 2022, it had a fleet of 26 very large crude carriers with a capacity of 8,043,657 deadweight tons. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.
How the Company Makes MoneyDHT Holdings makes money primarily through the chartering of its VLCC fleet to oil companies and traders for the transportation of crude oil. The company employs a mix of spot market charters, where vessels are hired for single voyages at prevailing market rates, and time charters, where vessels are leased for extended periods at fixed rates. This balanced chartering strategy allows DHT Holdings to capitalize on favorable market conditions while ensuring a steady revenue stream. Additionally, the company may enter into partnerships or joint ventures with other shipping companies to optimize fleet utilization and expand its market reach. Factors such as global oil demand, shipping rates, and operational efficiency significantly impact DHT's earnings.

DHT Holdings Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 2.89%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook for DHT Holdings, highlighting strong financial performance, a robust balance sheet, and successful strategic actions like vessel sales and long-term charters. While there were some moderate operational expenses and potential market challenges, the positive aspects significantly outweighed the negatives.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
DHT reported TCE revenues of $79.3 million and adjusted EBITDA of $56.4 million in Q1 2025. Net income was $44.1 million, or $0.27 per share.
Robust Balance Sheet
DHT has significant liquidity of $277 million and low financial leverage of 16.9%. Net debt stood at $12.3 million per vessel.
Successful Vessel Sale
The sale of DHT Scandinavia resulted in a capital gain of $19.8 million, contributing to a net profit of $24.3 million after adjustments.
Positive Market Outlook
DHT expects an improved spot market with 72% of days booked at $48,700 per day, a meaningful increase from the previous quarter.
Long-term Time Charter Success
DHT Appaloosa entered a 7-year time charter with a major energy company, highlighting long-term earnings visibility and profit-sharing potential.
Negative Updates
Moderate Vessel Operating Expenses
Vessel operating expenses were reported at $17.8 million, which may indicate higher than expected operational costs.
Potential Market Challenges
Ongoing market dynamics and geopolitical factors, such as potential sanctions and OPEC decisions, could pose challenges to market stability.
Company Guidance
During the Q1 2025 earnings call for DHT Holdings, CFO Laila Halvorsen and CEO Svein Moxnes Harfjeld provided a comprehensive financial overview, highlighting a robust performance with revenues on a TCE basis of $79.3 million and an adjusted EBITDA of $56.4 million. The company's net income was reported at $44.1 million, or $0.27 per share, with a net profit of $24.3 million, or $0.15 per share, after adjustments. They reported vessel operating expenses at $17.8 million and G&A expenses at $5.5 million for the quarter. The average TCE rates were $36,300 per day for spot market vessels, $42,700 per day for time charters, and $38,200 per day overall. DHT's balance sheet was noted for its strength, with total liquidity at $277 million, including $80.5 million in cash. Financial leverage stood at 16.9%, and net debt was $12.3 million per vessel. The company allocated $27 million for cash dividends, reflecting their policy of distributing 100% of ordinary net income, marking the 61st consecutive quarterly cash dividend. Additionally, DHT announced vessel sales and time charter contracts, including a noteworthy seven-year charter for the DHT Appaloosa. Looking ahead, they expect improved earnings for Q2 2025 with anticipated time charter and spot market rates. The call concluded with a positive outlook on market dynamics, supported by favorable supply conditions and OPEC's production strategies.

DHT Holdings Financial Statement Overview

Summary
DHT Holdings is in a strong financial position, with robust profitability and cash flow generation. Despite some revenue volatility, the company maintains solid profit margins and efficient leverage, indicating sound financial management.
Income Statement
75
Positive
DHT Holdings shows a stable income performance with a positive TTM (Trailing-Twelve-Months) net profit margin of 32.95% and a gross profit margin of 37.39%. However, revenue has decreased by 5.18% in the most recent annual period, which indicates some volatility. The EBIT margin remains strong at 37.65% in TTM, showcasing effective management of operating expenses.
Balance Sheet
70
Positive
The company's balance sheet is solid, with a debt-to-equity ratio of 0.34, indicating a conservative leverage position. ROE is strong at 16.90% in TTM, reflecting efficient use of equity capital. The equity ratio is healthy at 72.50%, indicating strong equity backing for assets, but there is a slight decrease in stockholders' equity over the year.
Cash Flow
80
Positive
DHT Holdings demonstrates robust cash flow generation with an operating cash flow to net income ratio of 1.61 in TTM, showing high-quality earnings. Free cash flow has grown by 37.23% annually, reinforcing its capacity to reinvest and return capital to shareholders. The free cash flow to net income ratio of 0.95 indicates efficient cash conversion.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
542.14M571.77M560.56M454.14M295.85M691.04M
Gross Profit
202.69M313.56M210.56M71.58M-3.00M344.04M
EBIT
204.12M210.64M193.11M74.20M-13.02M313.59M
EBITDA
316.10M324.35M304.01M210.69M124.23M428.64M
Net Income Common Stockholders
178.61M181.38M161.35M61.52M-11.51M266.27M
Balance SheetCash, Cash Equivalents and Short-Term Investments
80.51M78.14M74.74M125.95M60.66M68.64M
Total Assets
1.46B1.49B1.49B1.51B1.61B1.62B
Total Debt
364.07M410.81M430.14M400.63M522.30M449.96M
Net Debt
283.56M332.67M355.40M274.69M461.64M381.32M
Total Liabilities
396.58M443.89M460.56M434.99M562.00M513.05M
Stockholders Equity
1.06B1.04B1.03B1.07B1.05B1.11B
Cash FlowFree Cash Flow
169.03M201.62M123.18M117.76M-114.04M502.32M
Operating Cash Flow
288.00M298.65M251.41M127.91M60.56M529.87M
Investing Cash Flow
-76.48M-97.03M-124.98M110.52M-86.51M-26.72M
Financing Cash Flow
-204.04M-197.91M-177.76M-173.34M17.97M-501.87M

DHT Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.41
Price Trends
50DMA
10.80
Positive
100DMA
10.72
Positive
200DMA
10.35
Positive
Market Momentum
MACD
0.13
Positive
RSI
54.08
Neutral
STOCH
36.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHT, the sentiment is Positive. The current price of 11.41 is below the 20-day moving average (MA) of 11.48, above the 50-day MA of 10.80, and above the 200-day MA of 10.35, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 36.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHT.

DHT Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$35.82B30.3446.37%2.42%6.05%11.64%
80
Outperform
$1.83B5.7217.57%7.56%-18.74%-39.64%
DHDHT
79
Outperform
$1.81B10.1717.04%5.32%-5.32%5.51%
FRFRO
78
Outperform
$3.91B11.2314.79%4.56%0.88%-45.41%
78
Outperform
$2.03B2.8824.68%4.03%-7.25%31.85%
TNTNK
75
Outperform
$1.51B4.6818.57%11.45%-21.27%-34.25%
58
Neutral
$7.37B3.39-4.49%10.01%0.82%-49.15%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DHT
DHT Holdings
11.41
0.50
4.58%
FRO
Frontline
17.96
-6.28
-25.91%
STNG
Scorpio Tankers
41.23
-35.87
-46.52%
TRGP
Targa Resources
169.78
50.64
42.50%
TNK
Teekay Tankers
44.92
-21.44
-32.31%
INSW
International Seaways
37.93
-16.06
-29.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.