DHT Holdings (DHT) Q2 FY26 earnings call: guidance and Q&A

DHT Holdings achieved its strongest quarter and first half in company history, with Q2 2026 revenues on a TCE basis of $255 million and adjusted EBITDA of $231 million. Net income reached $198.3 million ($1.23 per share) for the quarter, contributing to a first-half net income of $362.9 million, which surpassed the previous full-year record of $266.3 million achieved in 2020. The company reported an adjusted net income of $197 million ($1.22 per share) for Q2 2026.

The company capitalized on strong market conditions, driven by fundamental supply and demand dynamics, market consolidation, and regional disruptions. DHT's operational framework prioritized the safety of its crew, cargo, and vessels, leading the fleet to avoid trading in the Persian Gulf during the period. Red Sea hostilities also forced rerouting of vessels via the Suez Canal, adding significant transportation distances and reducing overall fleet efficiency, thereby tightening the general market.

DHT secured two 1-year time charter contracts for the DHT Sundarbans (2012-built) and DHT Amazon (2011-built) at an average rate of $109,000 per day. Post-quarter, a 3-year time charter was secured for the 2015-built DHT Jaguar at $75,000 per day, scheduled for September delivery. The company also contracted a newbuild VLCC, DHT Oryx, at Hanwha Ocean for early August 2028 delivery, which will be a sister ship to recently delivered vessels and equipped with an exhaust gas cleaning system. The 2007-built DHT Bauhinia was sold in July for $51 million in total cash proceeds and a net capital gain of $34 million, aligning with the strategy to divest older tonnage. DHT Impala, the fourth and final newbuilding in the 2026 fleet program, was delivered from Hyundai in July.

DHT maintains a very strong balance sheet, supported by conservative leverage and robust liquidity. At the end of Q2 2026, total liquidity stood at $569 million, comprising $161.7 million in cash and $407.5 million available under revolving credit facilities. Financial leverage was 14.1% based on market values, with net debt of $11.9 million per vessel. The company secured a new $250 million reducing revolving credit facility with a 7-year tenor and a 20-year repayment profile, priced at 135 basis points above SOFR, which was oversubscribed. In line with its capital allocation policy, the Board approved a dividend of $1.22 per share for Q2 2026, marking the 66th consecutive quarterly cash dividend.

Management highlighted several structural forces shaping the tanker landscape, including geopolitical friction, structural supply consolidation by a private aggregator, and strong institutional support for secondhand asset values. China's temporary destocking of crude reserves is expected to lead to a sharp rebound in seaborne crude import demand once completed. Key structural catalysts identified are the potential resolution of regional conflicts, which could shift transport volumes to compliant operators, and the necessity of rebuilding depleted national strategic and commercial inventories, generating sustained transportation demand.

DHT has 7 vessels due for dry docking in 2026. DHT Lion completed its dry dock in Q1, while DHT Amazon, DHT Osprey, and DHT Puma completed theirs in Q2. DHT Panther completed its dry dock earlier in Q3. All planned dry docks were completed on time and within expectations. Two remaining vessels, DHT Harrier and DHT Redwood, are scheduled for dry dock in H2 2026. Upon their completion, the company will enter 2027 with a lighter maintenance schedule, with only 4 vessels scheduled for dry dock next year.