DHT (NYSE:DHT) reported fourth-quarter 2025 results highlighted by strong spot-market earnings, continued fleet renewal activity, and another quarterly dividend under its policy of paying out 100% of ordinary net income.
Fourth-quarter and full-year financial results
Chief Financial Officer Laila Halvorsen said the company generated fourth-quarter revenues on a TCE (time charter equivalent) basis of $118 million and adjusted EBITDA of $95 million. Net income was $66 million, or $0.41 per share.
On a full-year basis, Halvorsen said DHT posted $369 million in TCE revenues and $278 million of adjusted EBITDA. Net income for 2025 was $211 million, or $1.31 per share. Adjusted for gains related to vessel sales, adjusted net income was $158 million, or $0.99 per share.
Balance sheet, liquidity, and cash flow
Management emphasized what it described as a “rock-solid balance sheet.” At the end of the fourth quarter, total liquidity was $189 million, including $79 million in cash and $110.5 million of availability under two revolving credit facilities. Halvorsen noted that DHT drew on revolving capacity in December to fund a final newbuilding installment tied to the first newbuilding delivery in early January, and repaid that draw in January when it tapped the newbuilding facility. After those transactions, revolving credit availability stood at $171.9 million.
At quarter end, financial leverage was 17.6% based on market values for the fleet, and net debt was “just under” $16 million per vessel, which management said was well below estimated residual values.
On cash movements, Halvorsen said the company began the quarter with $81 million in cash and generated $95.3 million in EBITDA. Ordinary debt repayment and cash interest totaled $13.2 million, while $28.9 million was distributed through a cash dividend. DHT deployed $97.6 million toward vessels during the quarter, including the delivery of the 2018-built secondhand acquisition DHT Nokota. The company also issued $169.4 million in long-term debt associated with the delivery of DHT Nokota and the delivery of the first newbuilding, and invested $107.8 million in its newbuilding program. The quarter ended with $79 million in cash.
Fleet renewal: acquisitions, newbuildings, and sales
President and CEO Svein Moxnes Harfjeld said DHT took delivery in November of the 2018-built VLCC acquired under an agreement signed in June, naming the vessel DHT Nokota. He said delivery timing was favorable given a strong freight market, and the vessel trades in the spot market.
Harfjeld reiterated the company’s plan to divest its older 2007-built vessels as part of fleet modernization alongside a four-ship newbuilding program delivering in the first half of 2026. During the quarter, DHT entered into agreements to sell DHT China and DHT Europe for a combined $101.6 million. The company delivered DHT Europe on the last day of January and expects to deliver DHT China later in the first quarter. Management expects to book a combined gain of about $60 million in the first quarter and receive cash proceeds of about $95 million.
Subsequent to quarter end, DHT took delivery of the first of its four newbuildings on January 2, naming it DHT Antelope and introducing what management called the “Antelope Class.” Harfjeld said the ship’s fuel economics on its maiden voyage have exceeded expectations. The remaining three newbuildings are scheduled to deliver with two in March and one in June. He said the project is fully funded and that no new shares will be issued in connection with the newbuildings.
The company also announced an agreement to sell DHT Virginia, its last 2007-built vessel, for $51.5 million. Harfjeld said the vessel is debt-free, is expected to be delivered in June/July, and is expected to generate a gain of $34.2 million.
In response to analyst questions about additional fleet sales, Harfjeld said the company is “done selling, for now,” adding that DHT’s five ships built in 2011 and 2012 are “fantastic ships” that are earning “top dollars” and will remain in the fleet.
Dividend and early 2026 bookings
Halvorsen said the board approved a quarterly dividend of $0.41 per share for the fourth quarter, aligned with DHT’s policy of paying out 100% of ordinary net income as a quarterly cash dividend. She said this marks DHT’s 64th consecutive quarterly cash dividend. The shares are expected to trade ex-dividend on February 19, with payment on February 26 to shareholders of record as of February 19.
Looking ahead, the company provided estimated 2026 break-even levels. Halvorsen said DHT’s estimated spot cash break-even for 2026 is $17,500 per day, reflecting the sale of its three oldest vessels and seven special surveys scheduled during the year. The difference between P&L and cash break-even was estimated at $6,700 per day, totaling about $56 million for the year, which management said would be retained for general corporate purposes.
For the first quarter of 2026, Halvorsen said DHT expects 797 time charter days covered at an average rate of $43,300 per day, including profit sharing for January and base rates only for February and March where applicable. The company anticipates 1,195 spot days for the quarter, with 76% already booked at an average rate of $78,900 per day. The spot P&L break-even for the quarter was estimated at $18,300 per day.
Market outlook: aging fleet, consolidation, and charter dynamics
Management pointed to fleet demographics as a central support for its market outlook. Harfjeld estimated the current sailing VLCC fleet at 897 ships (net of permanent floating storage). By the end of 2026, he said, 46% of the fleet (427 ships) would be older than 15 years, while 20% (199 ships) would be older than 20 years, and just over 5% (49 ships) would be older than 25 years.
He also discussed the “sanctioned VLCC fleet,” which he put at 151 vessels, including 105 older than 20 years. He said there are discussions about whether sanctioned tonnage could reenter the compliant market, but added that commercial opportunities in the compliant VLCC market are limited once a ship passes the 20-year mark.
On supply, Harfjeld said DHT does not view the order book as moving into “oversupply territory,” citing a confirmed order book of 171 ships delivering over the next three years and the fact that new VLCC delivery slots on offer now are in 2029. He argued that the “supply squeeze” is real, particularly when considering the aging fleet profile.
Harfjeld also described what he called a “fundamental shift” in ownership dynamics, with consolidation by private “aggregators” influencing spot rates, time charter demand, and secondhand values. He estimated aggregators have gained control of around 120 ships and said he expects consolidation to continue, potentially reaching at least 25% of the compliant tramping VLCC fleet over time. In Q&A, he clarified that the “compliant tramping” fleet excludes the sanctioned fleet and also excludes significant state-controlled fleets that primarily serve their owners’ cargo needs.
In that context, Harfjeld said DHT is increasing spot exposure by reducing fixed-income coverage, with an expectation that spot exposure could reach roughly three-quarters of capacity in the second quarter. He also confirmed customers are in the market seeking time charters across one- to three-year tenors at rates above prior levels, citing market rumors of a one-year charter at $85,000 per day (noting it was “on subs”) and customer interest in three-year deals at materially higher levels than previous terms. DHT extended a time charter for DHT Harrier on a five-year contract at $47,500 per day, with options for two additional one-year extensions at $49,000 and $50,000 per day.
During Q&A, Harfjeld also addressed demand framing, arguing that crude oil demand growth should be viewed against seaborne crude volumes rather than total liquids demand. He said seaborne crude transportation is roughly 41 million barrels per day, and that incremental crude supply would largely be seaborne, implying a higher growth rate when measured against that base. He also discussed potential contributions from Guyana and Brazil and said U.S. production could expand as efficiencies improve.
On Venezuela, Harfjeld said it was early, but that initial barrels would “predominantly go to the U.S.” based on his reading, while also noting China’s position as a creditor and the potential for some oil placement into Asia. He added that for mainstream owners to transport those barrels, OFAC-related risks would need to be clearly resolved.
Finally, responding to a question on demolition of non-compliant/shadow fleet tonnage, Harfjeld said DHT understands that one of the two largest cash buyers in the demolition market is seeking approvals, particularly from the U.S. and OFAC, to transact with sanctioned counterparties to acquire and scrap ships, though he said he did not have a specific timeline for resolution.
About DHT (NYSE:DHT)
DHT Holdings, Inc (NYSE: DHT) is a Bermuda-based independent crude oil tanker company that provides seaborne transportation of crude oil on a worldwide basis. The company’s core business involves the ownership and operation of a modern fleet of Very Large Crude Carriers (VLCCs) and Suezmax tankers, which are chartered to oil producers, trading houses and national oil companies. Through spot charters, time-charters and tanker pooling arrangements, DHT connects crude oil exporters with refining hubs in Asia, Europe, North America and other global markets.
Founded in 2005 and listed on the New York Stock Exchange later that year, DHT has grown its presence in the maritime sector by focusing on operational efficiency and disciplined capital management.
