Fistein
09-23

$DHT Holdings Inc(DHT)$ $DHT Holdings Inc(DHT)$ 28 Target Price.

--Growth Catalysts for DHT--

1.1). High VLCC spot rates caused by Hormuz-Strait closure--

Metric Level Date

TD3C (MEG–China) VLCC spot rate ~USD 1,034,803/day 2026-09-14

TD34 (Oman–China) ~USD 643,677/day 2026-09-1

TD15 (W.Africa–China) round-voyage TCE ~USD 441,081/day (record high) 2026-09-14

TD22 (US Gulf–China) round-voyage TCE ~USD 289,894/day (record high) 2026-09-14

Core Catalyst: Very tight vessel availability, high market concentration giving owners pricing power. MMoreover, restocking demand and geopolitical tensions create a surplus of cargoes, awaiting for VLCC transhippments.

. Rates have moved from ~USD 132k/day in February to over USD 500k/day recently.

This transmits to DHT with high leverage. In 2026Q2, the fleet earned an estimated blended TCE of USD 126,700/day , split between USD 162,600/day spot and USD 90,800/day time-charter — i.e. spot earned roughly 79% more than contracted rates. Revenue for the quarter was USD 284.8m (+122.6% YoY) , with net income of USD 198.3m (+253.6% YoY) and gross margin of 83.0% .

2. 2). Contracting catalyst: locking in elevated ratetill 2026 year-end.

DHT is converting spot strength into multi-year visibility rather than riding spot alone:

Vessel Charter Rate Start

DHT Panther (2016-built) 3-year TC with a global energy company USD 100,000/day Oct 2026

DHT Jaguar (2007-built) 3-year TC USD 75,000/day Jul 2026

The 3-year benchmark has risen +33% (USD 75k → USD 100k/day) in just over a month

. For 2026Q3, ~ 48% of available spot days are already fixed at an average USD 139,700/day , and 74% of total operating days are locked at a blended USD 94,300/day — meaning a large share of Q3 cash flow is already contracted before the quarter closes.

3. 3). Fleet and earnings trajectory

Fleet: 23 VLCCs in operation — 12 on time charter, 11 in the spot market — plus one newbuild (DHT Oryx) delivering Aug 2028

Recent deliveries: DHT Gazelle, DHT Antelope, DHT Addax and the final unit DHT Impala (319,825 dwt) were received from Hanwha Ocean/Hyundai Samho; DHT Gazelle is returning to yard in Q3 2026 for a design upgrade to improve commercial flexibility

Revenue mix is spot-heavy: Voyage Charter 67.6% vs Time Charter 32.3% of 2026Q2 revenue.

4). Growth metrics (latest period): revenue growth +95.5% , operating profit growth +237.0% , net profit growth +253.6% ; ROE 61.9% , ROA 28.3% , debt-to-asset 24.9% , current ratio 3.64 — a strongly deleveraged balance sheet entering the upcyclupcycle4Shareholder-return angle

Dividend yield 10.91% , paid quarterly, payout ratio 56.3% ; 5-year average yield 6.52% .

Latest declared dividend USD 1.22/share (record date 2026-08-17).

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Comments

  • glimzy
    09-23 21:13
    glimzy
    Those spot rates are insane, but tanker peaks always look safest right before newbuilds bite. I care more about whether a 10.9% yield still works once rates normalize.
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