Double Hull Tankers Announces Results

Tuesday, May 23, 2006
Double Hull Tankers, Inc. announced results for the period from January 1 to March 31, 2006. Total revenues for this period were $24.2 million and net income was $11.7 million, or $0.39 per share (diluted).

On October 18, 2005, having completed its initial public offering, DHT acquired seven double hull crude oil tankers from Overseas Shipholding Group, Inc. (OSG) and commenced operations as an independent tanker company. DHT's modern fleet consists of three Very Large Crude Carriers (VLCCs) and four Aframax tankers.

From the same date, all seven vessels have been chartered to OSG for periods ranging from five to six and one-half years. OSG in turn employs the three VLCCs in the Tankers International (TI) pool, the largest commercial pool for VLCCs, and the four Aframaxes in the Aframax International (AI) pool, the second largest commercial pool for Aframaxes. DHT receives a base charter hire and may, through profit sharing agreements, benefit from the vessels' earnings in the pools over and above the base charter hire rates. The technical operations of the vessels (crewing, maintenance, repairs, drydockings etc.) are conducted by a subsidiary of OSG at substantially fixed costs to DHT.

Total revenues of $24.2 million consist of $17.5 million in base charter hire revenue and $6.7 million in additional hire under our profit sharing arrangements with OSG. Of the additional hire, $4.1 million relates to the VLCCs and $2.6 million relates to the Aframax vessels. In the first quarter, DHT's VLCC and Aframax tankers achieved average time charter equivalent (TCE) earnings in the commercial pools of $75,800 and $39,700 per day, respectively, according to data from the commercial pools. In general, through the profit sharing agreements, DHT earns 40% of the excess of the vessels' actual net TCE earnings in the commercial pools over the base charter hire rates for the quarter, calculated on a fleet wide basis and on a four quarter rolling average. The actual average TCE earnings that DHT received for its vessels during the first quarter were $52,600 and $28,700 per day for the VLCCs and Aframax vessels, respectively.

Actual average TCE earnings are calculated by dividing the total revenue actually earned by the vessels by the sum of the total days each vessel was on hire during the period, or "revenue days". In the first quarter, the vessels' revenue days were 267 for the VLCCs and 352 for the Aframax vessels.

DHT's vessel expenses, including insurance costs, were $4.5 million for the quarter, depreciation and amortization expenses were $4.2 million and general and administrative expenses were $0.6 million.

Net finance expenses, including amortization of deferred debt issuance costs, were $3.3 million. DHT has entered into an interest rate swap agreement for the full amount of its term loan of $236 million, effectively fixing the interest rate at 5.6% until October 18, 2010. The term loan is non-amortizing until October 18, 2010.

Market rates for VLCCs and Aframax tankers were strong in the first quarter of 2006 with rates well above the base charter hire rates in DHT's charter arrangements with OSG for both the VLCCs and the Aframax tankers. Presently we are experiencing an expected seasonal decline, exacerbated by more than normal refinery capacity being shut down for maintenance in the United States. The effect is a lower fleet utilization and downward pressure on daily freight rates.

The company continues to see increased demand by charterers for double hull tankers compared to single hull tankers, leading to a premium being paid for double hull tankers.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

China to Add 8 Cruises to Push Tourism in South China Sea

Three State-owned enterprises from the shipping, tourism and construction sectors will cooperate to equip up to eight cruise liners and offer diversified sightseeing

RINA Awards Carnival Maritime with Environmental, Safety

RINA recently awarded Carnival Maritime GmbH ISO 14001 and BS OHSAS 18001 certificates.   Now the Carnival Maritime office in Hamburg as well as 26 ships in

40% Cruise Ships Use Outdated Sewage Treatment Plants

ACO Marine has welcomed the findings reported in the Friends of the Earth 2016 Cruise Ship Report Card, the annual survey of cruise shipping’s impact on the environment,

Finance

Funding Approved for Georgia’s New Inland Terminal

At its July board meeting, the Georgia Ports Authority (GPA) approved a spending package of $19.7 million to construct the Appalachian Regional Port in Chatsworth, Murray County, Ga.

Baltic Index Falls on Weak Freight Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Monday due to weaker rates across all segments, except handysizes.

As Market Sours, LPG Tankers Anchor off Singapore

Record U.S. LPG exports to Asia flip market into a glut. Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical makers.

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0856 sec (12 req/sec)