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DHT Holdings orders VLCC pair from HHI

Frontline acquisition target DHT Holdings has ordered two VLCC newbuildings from Hyundai Heavy Industries (HHI).

In its annual results announcement DHT said it had ordered two 319,000 dwt VLCC newbuildings from HHI this month for delivery in July and September 2018. The company said the newbuilds would be financed from cash in hand. The price of the newbuildings was not revealed.

The order comes as DHT took delivery of the last of six VLCC newbuildings from HHI this month – the DHT Tiger which is being traded on the spot market.

For the fourth quarter of 2016 DHT reported a net profit of $17.6m compared to $32.4m in the same period a year earlier. Net revenues for Q4 2016 were $67m down from $80m in the same period in 2015.

“The change from the 2015 period to the 2016 period was due to lower tanker rates as well as off hire due to repair and design modification of the rudders for the VLCC newbuildings in the 2016 period partly offset by an increase in the fleet with the delivery of five newbuildings from November 2015 to August 2016,” the company said.

For the year as whole net income for 2016 was $9.3m compared to $105.4m in 2015 hit by the fall in asset values.

“Due to the decline in values for secondhand tankers the company adjusted the carrying value of its fleet in 2016 through non-cash impairment charges totaling $84.7m,” DHT said.

On Monday DHT announced it had been approached by John Fredriksen’s Frontline with a stock-for-stock takeover offer.

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