DHT Holdings' Fleet Divestment Debates and Newbuild Timeline Shifts Highlight Contradictions in 2026 Earnings Call

Date of Call: Aug 6, 2026

Financials Results

• Revenue: $255 million on a TCE basis for Q2 2026
• EPS: $1.22 per share in ordinary net income after paying $1.3 million in dividends

Guidance:

• Q3 2026 time-charter days expected to be 1,020 at an average rate of $75,900 per day.
• Q3 2026 spot days expected to be 600 at an average rate of $152,700 per day.
• PNL breakeven for 2026 estimated at $29,700 per day; cash breakeven at $22,600 per day.
• Dry dock schedule completed for 2026, with only four vessels scheduled for 2027.

Business Commentary:

Strong Financial Performance:

• DHT Holdings reported revenues on a TCE basis of $255 million for the second quarter, with an adjusted EBITDA of $231 million and net income of $198.3 million, equating to $1.23 per share.
• The strong financial results were driven by favorable market conditions, including growing market consolidation and regional disruptions, notably from the conflict involving Iran.

Vessel Operating and Market Earnings:

• Vessel operating expenses for the quarter were $18.6 million, while the average combined TCE for the fleet was $126,700 per day.
• The earnings were bolstered by strong spot market performance, with vessels earning an average of $162,000 in the spot market and $90,800 per day on time charters.

Fleet Development and New Contracts:

• DHT Holdings contracted a new-build VLCC, the DHT Oryx, for delivery in August 2028, and secured a three-year time charter for the DHT Jaguar at a rate of $1,000 per day.
• The strategic focus on fleet development and securing long-term charters aims to enhance the company's earning capabilities and maintain a strong operational framework.

Balance Sheet and Cash Flow:

• The company maintained a strong balance sheet with total liquidity of $569 million, including $161.7 million in cash and available credit facilities.
• Cash flow was managed effectively, with operations generating $231 million in EBITDA, which was distributed as dividends and used for vessel investments and debt prepayments.

Market Dynamics and Strategic Positioning:

• The company is navigating market dynamics influenced by geopolitical friction and structural supply consolidation, which have tightened spot supply and increased risk premiums.
• DHT Holdings is positioning itself to capitalize on potential market catalysts, such as conflict resolution and energy security initiatives, which could drive sustained transportation demand.

Sentiment Analysis:

Overall Tone: Positive

• Management highlighted 'strong market conditions,' 'record earnings,' and a 'very strong balance sheet.' They noted vessels achieving high rates, ongoing geopolitical-driven demand, and successful newbuild deliveries. The tone was confident regarding operational strategy and growth.

Q&A:

• Question from Omar Nocta (Clarkson): Given the conflict in the Red Sea, how has that affected your trading in the region, and what's the current pattern for VLCCs?
  Response: Ships have rerouted around the Red Sea, adding distance, with some loading in the Med and exiting via Suez Canal; a new trade pattern involves half-cargo transits.

• Question from Omar Nocta (Clarkson): Is DHT still looking to expand its fleet footprint beyond the current 24-vessel target, and if so, how?
  Response: The ambition is to continue building, but high secondhand valuations and patience are required; corporate opportunities are possible but challenging.

• Question from Michael Gregory Lewis (BTID): In the event of a credible agreement to clear the Strait of Hormuz, how long might it take for normalcy to return, and what would that look like?
  Response: It's difficult to predict timing due to fluid news; a credible opening would require numerous safe transits without discrimination, and DHT would likely not be a first mover.

• Question from Michael Gregory Lewis (BTID): Considering the newbuild delivery in 2028, what is the turnaround time to establish a string of new VLCCs?
  Response: Delivery timelines vary by yard; 2030 is typical for top Korean or Chinese yards, while some less experienced yards may offer earlier deliveries around 2029.

• Question from Eric Halfordson (Pareto Securities): Given the high asset values, would you consider selling the five oldest vessels without a newbuild pipeline?
  Response: The ideal is not to dispose of them, but replacement planning is challenging. The ships are in good condition and could serve for 5-6+ years.

Contradiction Point 1

Fleet Renewal Strategy for Oldest Vessels

Strategy shifts from holding oldest ships long-term to considering divestment without newbuilds, impacting fleet renewal plans.

Eric Halfordson (Pareto Securities) - Eric Halfordson (Pareto Securities)

2026Q2: The decision to divest would be considered, but the priority is having a clear path for fleet renewal... - Svein Moxnes Harfell(CEO)

Would you consider selling the five oldest vessels given high secondhand values and no newbuilds in the pipeline? - Gregory Lewis (BTIG)

2025Q4: DHT is done selling and its five 2011/2012-built ships are 'fantastic,' 'not going anywhere,' and will remain in the fleet. - Svein Moxnes Harfjeld(CEO)

Contradiction Point 2

Assessment of Risk Premiums and Trade Route Normalization

Contradiction on the current status and normalization of risk premiums for Gulf trades, affecting operational and market outlook.

Omar Nocta (Clarkson) - Omar Nocta (Clarkson)

2026Q2: The ongoing threats... have led to rerouting of vessels... This disruption reduces fleet efficiency. - Svein Moxnes Harfell(CEO)

How has the Red Sea conflict impacted your regional operations, particularly regarding direct lifts from Yanbu and trade pattern adjustments? - Omar Nokta (Clarksons Platou Securities, Inc.)

2026Q1: Risk premiums for trades at Yanbu and Fujairah initially existed but have now normalized and aligned more closely with Atlantic trade rates. - Svein Moxnes Harfjeld(CEO)

Contradiction Point 3

Timeline and Strategy for Newbuild Deliveries

Shifts from focusing on 2027/2028 deliveries to highlighting limited options until 2030, changing fleet growth strategy.

Michael Gregory Lewis (BTIG) - Michael Gregory Lewis (BTIG)

2026Q2: The high-end Korean shipyards... offer delivery around 2030... The company has a limited number of options for 2027/2028. - Svein Moxnes Harfell(CEO)

When will the new VLCCs from the DHT Oryx order be delivered, and how does this timeline align with fleet positioning? - Eirik Haavaldsen (Pareto Securities AS)

2025Q4: A significant portion (~70%) of the VLCC order book is in China... For the 2029-delivery newbuilds, prices are around $130M. - Svein Moxnes Harfjeld(CEO)

Contradiction Point 4

Fleet Growth Strategy and Divestment Plans

Contradiction on willingness to sell older vessels without a replacement plan, affecting fleet strategy.

Eric Halfordson (Pareto Securities) - Eric Halfordson (Pareto Securities)

2026Q2: The ideal scenario is to have a replacement plan in place... The decision to divest would be considered, but the priority is having a clear path for fleet renewal and potential expansion. - Svein Moxnes Harfell(CEO)

Would you consider selling the five oldest vessels given high secondhand values and no newbuilds in the pipeline? - Sherif Elmaghrabi (BTIG, LLC)

2026Q1: The company is happy with its current fleet and has no planned divestments. - Svein Moxnes Harfjeld(CEO)

Contradiction Point 5

Trade Pattern Rerouting Impact

Inconsistent portrayal of operational disruption caused by Red Sea rerouting, affecting efficiency assessments.

Omar Nocta (Clarkson) - Omar Nocta (Clarkson)

2026Q2: This disruption reduces fleet efficiency. - Svein Moxnes Harfell(CEO)

How has the Red Sea conflict impacted your operations in the region, particularly regarding direct lifts from Yanbu and trade pattern adjustments? - Omar Nokta (Clarksons)

2026Q2: This creates disruption, reduces fleet efficiency, and tightens the general market. - Svein Moxnes Harfjeld(CEO)