DHT Holdings lets VLCC newbuild options lapse

Announcing its second quarter financial results NYSE-listed DHT reported a net profit of $44.5 million for Q2 2024 compared to $57.1 million in the same period a year earlier. Revenues slipped slightly to $150.1 million in Q2 this year compared to $152 million the same quarter in 2023.

A decline in spot rates for VLCCs can be seen in the numbers reported by DHT with the average spot rate in Q2 2024 standing at $52,700 per day compared to $64,800 per day in the same quarter last year. For its VLCCs deployed in the charter market there was a marginal uptick in average daily earnings to $36,400 per day in Q2 2024 compared to $36,200 per day in Q2 2023.

Commenting on the market DHT said, “The freight market ended the second quarter and has commenced the third quarter with weaker freight rates when compared to the first half of 2024. Chinese economic growth and oil demand has recently been slower than expected.”

In the second quarter DHT made $51.4 million instalment payments on four VLCC newbuildings order at Hyundai Samho Heavy Industries and Hanwha Ocean in South Korea. In Q1 this year DHT brought forward delivery of the new vessels to between February and July 2026 increasing revenue earning days for 2026.

However, DHT has not executed options it had for an additional four VLCC newbuildings and these options have now expired.

Related:DHT Holdings accelerates VLCC newbuild deliveries

At the end of June this year DHT owned and operated a fleet of 24 VLCCs.