DHT Holdings reported a drop in quarterly profit but still delivered the second-best annual results in its history, as the New York-listed tanker owner expressed optimism for the year ahead.
The VLCC specialist reported a net profit of $35.3m for the fourth quarter, a plunge from $61.8m a year earlier.
But for the full 2023, the outfit’s profits surged to $161m from $62m in 2022.
Quarterly shipping revenue dipped to $142m from $167m in the final three months of the prior year as DHT, while full-year revenue jumped to $556m from $450m.
But so far this year, the company’s tankers are seeing their earnings move higher.
“The overall freight market shows encouraging behaviour for what is ahead of us,” DHT said in the earnings report.
DHT’s time-charter equivalent earnings came in at $42,000 per day in the final quarter of last year, the shipowner said, but bookings so far this year have come in at $55,900 per day, with 78% of available spot days locked in for the first quarter.
The company pointed to shifting oil market adjustments that point to longer transportation distances, a plus for VLCC owners.
“We expect continued rewarding times ahead, supported by growth in oil demand, longer transportation distances and a very limited supply of new ships into a rapidly ageing global fleet,” DHT said.
“It is an increasingly complex geopolitical environment, not least the latest developments in the Red Sea, with conflicts and risks on several fronts, many that will influence our business and could be beneficial for our market.”
