DHT Fourth Quarter 2020 Financial Report

Financial Highlights:

DHT made $266.3 million in net income in 2020 – the highest yearly result in the Company’s history.
Adjusted for a non-cash change in fair value related to interest rate derivatives of $8.1 million and a
non-cash impairment charge of $12.6 million, net income would be $286.9 million, equivalent to $1.84
per basic share.
As of December 31, 2020, interest bearing debt to total assets (based on market values) was 29%, and
net debt per ship was $14.1 million.


Quarterly Highlights:


• In the fourth quarter of 2020, the Company’s VLCCs achieved an average rate of $33,800 per day.
• Adjusted EBITDA for the fourth quarter of 2020 was $51.1 million. Net income of $7.6 million equates to $0.04
per basic share. Adjusted for a non-cash change in fair value related to interest rate derivatives of $2.4 million
and a non-cash impairment charge of $7.6 million, net income would be $12.9 million, equivalent to $0.08 per
basic share.
• For the fourth quarter of 2020, the Company declared a cash dividend of $0.05 per share of outstanding common stock, payable on February 25, 2021 to shareholders of record as of February 18, 2021. This marks the 44th consecutive quarterly dividend. The shares will be traded ex-dividend from February 17, 2021.
• DHT currently has 16 of its vessels on time charters, where four vessels have profit-sharing structures on top of
base rates, whilst the other 12 have fixed rates. The average of the fixed elements in these 16-time charters, i.e.
of the four base rates and the 12 fixed rates, is $41,965 per day. Of the 16 vessels on time charters, seven are
estimated to redeliver during the first quarter of 2021.
• In the fourth quarter of 2020, the Company prepaid $25.8 million under the Nordea Credit Facility. The voluntary
prepayment was made for all regular installments for 2022.
• Mrs. Sophie Rossini, Senior Business Manager at MAN AHL, was appointed to the Board of DHT Holdings, Inc.
and joined the board effective November 15, 2020.

Operational Highlights:


• Scheduled off hire for the quarter was 180 days as the Company took advantage of the weak freight market to
bring forward drydockings and planned installations of scrubbers and ballast water treatment systems.
• The Covid-19 virus outbreak is still impacting our business. The main operational challenge in 2020 related to
our seafarers and our ability to change crews at regular intervals. Crews have stayed onboard longer than
planned, awaiting opportunities to go ashore and for replacements to come onboard. Our crews are
demonstrating cooperation and understanding to support continuation of our services. The challenge has abated
compared to Q2 and Q3, but hurdles remain as several geographical areas curb these operations. We consumed
16.0 days of scheduled off hire during the quarter because of deviations and longer port stays to enable crew
changes. We will continue to do everything we reasonably can to facilitate safe and regular crew changes.
The virus outbreak led to reduced global consumption of refined oil products resulting in a build-up of shorebased inventories of both feedstock and end products. Further, leading oil producers have reduced supply with
the view to rebalance the oil markets. As such, demand is partly being satisfied by drawing down on inventories,
resulting in reduced demand for transportation.
• As of December 31, 2020, DHT had a fleet of 27 VLCCs. The total dwt of the fleet is 8,360,850. For more details
on the fleet, please refer to the web site: http://dhtankers.com/index.php?name=About_DHT%2FFleet.html.

Subsequent Event Highlights:


• On January 21, 2021, the Company announced that it has entered into agreement to acquire two VLCCs built
2016 at DSME (Daewoo) for a total of $136 million. The vessels are scheduled to deliver during the first half of 2021.

•The Company will finance the acquisition with available liquidity and projected mortgage debt hence it is
expected to be accretive to DHT’s earnings per share. The vessels were built to high specifications by their current
owner and are fuel efficient, scrubber fitted Eco-designs that will further improve the DHT fleet’s efficiencies,
amongst other its Annual Efficiency Ratio (AER) and Energy Efficiency Operational Index (EEOI) metrics. The
Company has drawn $15 million under one of its revolving credit facilities funding the deposit for the two VLCCs.

Outlook:
• Thus far in the first quarter of 2021, 77% of the available VLCC days have been booked at an average rate of
$34,700 per day on a discharge to discharge basis (not including any potential profit splits on four-time charters).
• The Company will continue to take advantage of the weak freight market to bring forward drydockings and
planned installations of scrubbers and ballast water treatment systems and expect scheduled offhire to be in the
range between 200 and 230 days during the first quarter of 2021.