uploads/2015/01/Article-221.jpg

DHT Holdings’ fleet portfolio and vessels under construction

By

Updated

DHT Fleet

DHT Holdings (DHT) has 14 VLCCs[1. very large crude carriers], two Suezmaxes, two Aframaxes, and six newbuilds. Most of the vessels in DHT Holdings’ fleet portfolio were built in the year 2000 and onwards. The exception is one vessel that was built in 1999. All newbuild vessels are to be delivered in 2016, excluding one scheduled for 2015 delivery.

Compared to industry (SEA) peers like Teekay Tanker (TNK), Nordic American Tanker (NAT), and Tsakos Energy Navigation (TNP), DHT has a larger VLCC portfolio. Frontline (FRO) has a mix of major VLCC and Suezmax vessels.

Article continues below advertisement

DHT Holdings is one of the pure-play crude tanker operators, similar to Frontline and Nordic American Tankers and unlike Teekay Tanker and Tsakos Energy Navigation (TNP), which have exposure to product tankers. However, FRO and NAT’s VLCCs are much older, while DHT’s vessels are comparatively new. So, for a fundamentally strong crude tanker pure-play, DHT Holdings is a better player.

Vessels under construction and carrying value

DHT Holdings has entered into agreements with Hyundai Heavy Industries (or HHI) for the construction of six VLCCs with average an contract price of $95.5 million, including $2.3 million in additions and upgrades to the standard specification. The first two pre-delivery installments of 20% and 10%, respectively, are paid for all six newbuilds, totalling $171.0 million.

The carrying values of DHT Holdings’ (DHT) vessels may not represent their fair market value at any point in time, since the market prices of second-hand vessels tend to fluctuate with changes in charter rates and the cost of constructing new vessels.

Advertisement

More From Market Realist