DHT Holdings' Q3 2025: Contradictions Emerge on Indian Crude Tariffs, Older Vessel Acceptance, OPEC Production Impact, and Port Fee Suspension

Date of Call: October 30, 2025

Financials Results

• Revenue: TCE revenues of $79.1M for Q3 2025; average combined TCE $40,500/day; spot avg $38,700/day; time-charter avg $42,800/day
• EPS: Net income $44.8M, $0.28 per share; adjusted net profit $29.5M, $0.18 per share after $15.7M vessel sale gain and $0.4M fair-value loss on interest-rate derivatives

Guidance:

• Q4 bookings: 901 time-charter days at $42,200/day (includes Oct profit sharing, Nov–Dec base rates only)
• Q4 spot exposure: 1,070 spot days, 68% already booked at $64,900/day
• Q4 spot P&L breakeven estimated at $15,200/day
• 2026 P&L cash breakeven differential estimated at $7,500/day to fund remaining newbuilding installments
• Capital allocation: Q3 dividend $0.18/share (63rd consecutive quarterly cash dividend)

Business Commentary:

• Strong Financial Performance in Q3 2025:
• DHT Holdings, Inc. reported revenue on TCE basis of $79.1 million and adjusted EBITDA of $57.7 million in Q3 2025, with net income of $44.8 million.

• The positive financial results were driven by strong demand in the VLCC market and a fragmented fleet structure.

• VLCC Market Strength and Fleet Dynamics:

• The VLCC market demonstrated significant strength in Q3 2025, which positively impacted DHT's earnings.

• The market strength is attributed to growing demand for seaborne transportation of crude oil, aging and fragmented fleet, and geopolitical factors affecting supply security.

• Capital Allocation and Dividend:

• DHT has maintained a robust balance sheet with low leverage and significant liquidity, ending the quarter with $298 million in total liquidity.

• The company approved a quarterly cash dividend of $0.18 per share, marking its 63rd consecutive quarterly cash dividend.

• Newbuilding Program and Financing:

• DHT entered into a $308.4 million secured credit facility to finance its 4 newbuildings, and a $64 million reducing revolving credit facility for the acquisition of DHT Nakota.
• These financings are part of the company's strategic planning for future growth and maintaining a competitive edge in the market.

Sentiment Analysis:

Overall Tone: Positive

• "The VLCC market is demonstrating significant strength." Management: "highly constructive on our franchise and future." Company highlights: robust balance sheet, low leverage (12.4%), strong liquidity ($298M), and continued 100% ordinary net income dividend policy.

Q&A:

• Question from Frode Morkedal (Clarksons Platou Securities AS, Research Division): On the port fees being suspended for a year, is that good for the market — what's the impact on the market and on your positions?
  Response: Too early to tell; suspension likely creates a short pause—only a modest portion of the fleet was exposed—market strength is driven by demand and fleet fragmentation, so TC earnings impact is unclear.

• Question from Frode Morkedal (Clarksons Platou Securities AS, Research Division): Do you know if China still has a tariff on U.S. crude oil (i.e., did U.S. crude exports to China go away)?
  Response: U.S. crude exports to China have been very modest; major Chinese players use outside facilities, so any tariff impact is likely immaterial and probably out of the equation commercially.

• Question from Frode Morkedal (Clarksons Platou Securities AS, Research Division): With spot rates now very high, how is that affecting the time-charter side — are levels or durations improving or is it too early?
  Response: There is increased interest and some short-term charters at improved rates, but the large spot–TC delta makes pricing hard; if the firm market persists, TC rates should rise as customers pay up.

• Question from Frode Morkedal (Clarksons Platou Securities AS, Research Division): Would you consider adding time-charter coverage if the market continues (i.e., are you looking to fix more ships)?
  Response: Yes—company prefers some fixed income; with several charters rolling off there's opportunity to reprice or secure longer tenders, and management is in preliminary discussions but outcomes take time.

• Question from Geoffrey Scott (Scott Asset Management): As charter prices rise, will major charters accept ships over 15 years, and could acceptance extend past 20 years in the next few years?
  Response: Customers become pragmatic in strong markets—acceptance typically up to 17–18 years; beyond 20 years commercial opportunities are limited for DHT, which expects commercial life to ~20 years.

Contradiction Point 1

Impact of Tariffs on Indian Crude Imports

It involves the expected impact of tariffs on Indian crude oil imports, which can affect international trade and market dynamics.

Is China still imposing tariffs on U.S. crude oil? - Frode Morkedal(Clarksons Platou Securities AS)

2025Q3: U.S. crude oil exports to China have been modest. The 2 state-owned oil companies in China use facilities outside China for storage and transshipment. Any tariffs are expected to be lifted as part of the truth established during the U.S.-China meetings. - Svein Moxnes Harfjeld(CEO)

Can you explain the impact of the proposed Indian tariffs on chartering activity? Will it significantly affect the conventional tanker market? - Frode Morkedal(Clarksons Platou Securities AS)

2025Q2: The U.S. administration has not publicly stated any tariffs against India. We have not seen any impact from the tariffs, and we believe this is a timing issue. - Svein Moxnes Harfjeld(CEO)

Contradiction Point 2

Customer Acceptance of Older Vessels

It involves the customer acceptance of older ships, which can impact the company's fleet strategy and market positioning.

As spot rates rise, would major charterers be more willing to accept vessels over 15 years old, and would they consider vessels older than 20 years? - Frode Morkedal(Clarksons Platou Securities AS)

2025Q3: There is a dynamic in customer acceptance of ship ages, which depends on market strength. Some customers accept ships up to 18 years old. DHT's commercial life expectation of ships is up to 20 years, with limited opportunities beyond that age. - Svein Moxnes Harfjeld(CEO)

Can you repeat similar ship fixtures at a high rate of $41,500 per day and does this suggest higher secondhand values? - Frode Morkedal(Clarksons Platou Securities AS)

2025Q2: DHT has successfully secured time charters for older vessels, with rates starting with a 4 handle. These charters provide a stable earnings stream and are beneficial for shareholders. The company focuses on maintaining a strong and reliable fleet and uses good customer relationships to accomplish this. - Svein Moxnes Harfjeld(CEO)

Contradiction Point 3

Market Impact of OPEC Production Increases

The diverging views on how increased OPEC production might affect the VLCC market highlight potential uncertainties in market predictions.

How is the high spot rate affecting time charter levels? - Frode Morkedal(Clarksons Platou Securities AS, Research Division)

2025Q3: U.S. crude oil exports to China have been modest. The 2 state-owned oil companies in China use facilities outside China for storage and transshipment. Any tariffs are expected to be lifted as part of the truth established during the U.S.-China meetings. - Svein Moxnes Harfjeld(CEO)

What is the estimated impact of OPEC's production increase announcements and how much supply will enter the market? - Jon Chappell(Evercore ISI)

2025Q1: It's too early to pinpoint exact numbers, but more cargoes are evident since June. Increased OPEC production, particularly beyond 400,000 barrels, will likely drive higher demand for VLCCs, though exact impacts need more data. - Svein Moxnes Harfjeld(CEO)

Contradiction Point 4

Impact of Suspended Port Fees

It involves the market impact of suspended port fees, which could affect the company's operations and financial performance.

Will suspending port fees for a year be positive for the market? What impact will it have on the market and your positions? - Frode Morkedal(Clarksons Platou Securities AS, Research Division)

2025Q3: The suspension of port fees may cause a short-term 'time out' in the market as people adjust, similar to when they were first introduced. However, the impact is expected to be minimal as a relatively small portion of the fleet was exposed to these fees. - Svein Moxnes Harfjeld(CEO)

Will port fees be suspended next year and if so will there be any market impact? - Frode Morkedal(Clarksons Platou Securities AS, Research Division)

2024Q4: Therefore, we would not expect the port fees to have any material impact in 2025, either on us or the overall market. - Svein Moxnes Harfjeld(CEO)