DHT Maritime, Inc. yesterday announced results for the period from July 1 to September 30, 2009. Total revenues for this period were $22.7 million and net income was $1.1 million, or $0.02 per share (diluted).

Effective January 1, 2009, DHT no longer accounts for interest rate
swaps as hedges for accounting purposes and as a result, net income for
the third quarter of 2009 includes non-cash financial expense related
to interest rate swaps. Net income adjusted for non-cash financial
items related to interest rate swaps was $3.6 million, or $0.07 per
share1. Free cash flow from operations after contractual debt service,
or net income adjusted for non-cash items, was $10.4 million, or $0.21
per share2.

DHT’s policy of employing its vessels on medium- to long-term charters
that provide stable earnings and cash flow is serving the Company well
in the current freight market, which experienced additional weakness in
the third quarter relative to the second quarter. Nonetheless, the
current charter rates obtainable in the spot market have had, and are
expected to continue to have, a negative impact on the Company’s
revenues by decreasing the profit sharing element under its charter
agreements.

The average remaining term under the current charters is in excess of 4
years, and all of the Company’s vessels are chartered to wholly-owned
subsidiaries of Overseas Shipholding Group Inc. (“OSG”), which has a
credit rating of BB/Ba2.

At the end of the third quarter, the Company’s cash balance was $65.4
million. The Company is within its financial covenants and generates
stable, positive cash flow from the base hire component of its period
charters, but continues to monitor market developments for any impact
that negative changes in its vessels’ values may have on the Company’s
compliance with its financial covenants.

To enable the Company to take advantage of opportunities created by the
adverse global shipping market, and to preserve liquidity for the
Company’s financial commitments, the Board of Directors believes that
the Company continue to be best served by strengthening its balance
sheet and has, therefore, decided not to declare any dividend for the
third quarter 2009.

Payment of dividends remains subject to quarterly reviews and
assessment of several factors, including the Company’s current and
projected cash flow, the relative strength of the shipping markets, new
business opportunities and the Company’s financial commitments.

DHT plans to host a conference call at 8:30 am ET on November 24, 2009
to present the results for the quarter. See below for further details.

Third Quarter 2009 Results*

Total revenues for the third quarter were $22.7 million, a decline of
$8.3 million compared to the third quarter of 2008. Total revenues for
the quarter consisted of $22.1 million in base charter hire and $0.6
million in additional hire under the Company’s profit sharing
arrangements with OSG3, the charterer of DHT’s vessels. Of the total
revenue derived from base charter hire, $17.2 million relates to the
seven vessels on time charter and $4.9 million relates to the two
vessels on bareboat charter.

With the base hire rates under the time charter agreements exceeding
the charter rates achievable in the spot market, the Company’s revenue
for the third quarter exceeded the earnings of the vessels on a TCE
basis in their respective commercial pools.

In the quarter ended September 30, 2009, the VLCCs earned an average
TCE of $37,600 equal to the base hire under the time charter
agreements, while the average earnings in the commercial pool were
$21,700 per day (compared to $29,700 per day in the second quarter of
2009 and $113,000 per day in the third quarter of 2008) and the two
Aframax tankers which operate in the Aframax International pool earned
an average TCE of $24,900 equal to the base hire under the time charter
agreements while the average earnings in the commercial pool were
$13,400 per day (compared to $21,900 per day in the second quarter of
2009 and $43,000 per day in the third quarter of 2008). The Aframax
tankers Overseas Ania and Overseas Rebecca, both operating in the OSG
Lightering Service earned $18,900 per day, equal to the base hire under
the time charter agreements while the vessels’ earnings in the
lightering service which is the basis for the profit sharing was
$29,000 and $17,500 per day, respectively. The Suezmax tanker Overseas
Newcastle earned $26,300 per day under its bareboat charter and
achieved average TCE earnings for the third quarter of $14,700 per day
(compared to $23,300 per day in the second quarter of 2009 and $55,000
per day in the third quarter of 2008).

The revenue days for the third quarter of 2009 were 268 for the VLCCs
(compared to 276 revenue days in the third quarter of 2008) and 320 for
the Aframaxes (compared to 351 revenue days in the third quarter of
2008). The Aframax Overseas Ania had 43 off hire days in the quarter
related to the vessel passing the mandatory Special Class Survey and
the charterers’ required Condition Assessment Program (CAP) for vessels
over 15 years of age. The vessel incurred another 19 days offhire,
according to schedule, in the fourth quarter to successfully completing
the survey.

DHT’s vessel expenses for the quarter, including insurance costs, were
$7.1 million reflecting the new technical management contracts
effective January 16, 2009. Depreciation and amortization expenses were
$6.8 million and general and administrative expenses were $1.0 million.
Net finance expenses of $6.8 million include a loss on interest rate
swaps of $0.2 million and amortization of unrealized loss on interest
rate swaps of $2.4 million.

Market Update*

The reduced world-wide demand for oil resulting from the global
economic slow down has severely affected the number of cargoes
available and the need for transportation in the tanker sector. At the
same time as there is substantial net increase in the fleet from
deliveries of newbuildings. Combined, this has created significant
negative pressure on freight rates, which, together with the effect of
the difficult credit market on capital available to finance vessels,
has had a severe, adverse affect on vessel values.

A number of vessels continue to be used for storage as a result of a
current oil price contango. Together with an increase in transportation
distances and the reduced viability of single hull tankers, this has
helped to mitigate the unfavorable demand and supply factors that
affect the freight rates and the ship values, although not sufficiently
to offset the increase in the fleet from newbuilding deliveries and the
effect of cuts in OPEC production.

Cancellations and delays of future deliveries of newbuilding orders
resulting from the weak freight market and the adverse credit
conditions, as well as the phase out of single hull and older vessels
affected by the 2010 IMO regulations with its restrictions on trading
of these vessel segments will affect the tonnage supply, and are
expected to bring the net growth in tonnage supply to 3-4% for 2010. On
the other hand, at the same time, the growth demand for transportation
is expected to remain flat, and OPEC production growth to remain
limited with the persistent high crude oil inventories.

The demand for transportation in non-OECD countries, particularly
China, which continue to show a growth in GDP of 8% and has provided
price incentives for refiners to ensure ample supplies of gasoline and
fuel is a major driver for growth in crude oil demand. On a quarter to
quarter basis the Chinese import of crude oil increased 12 %, and 26 %
on a year to year basis. China has surpassed the United States as the
largest market for automobiles.

For the fourth quarter of 2009, the pools in which DHT’s vessels
operate, report booking of pool capacity as of October 23, 2009 at TCE
rates averaging $20,000 per day for the VLCCs with 59% of the fourth
quarter revenue days booked, $20,000 per day for the Suezmax vessels
with 39% of the fourth quarter revenue days booked and $10,000 per day
for the Aframax tankers with 37% of the fourth quarter revenue days
booked.

In contrast to the low freight rates obtainable in the spot market, the
Company’s vessels are employed on period charters at pre-contracted
rates that assure the Company of stable earnings for several years to
come. The current volatility and downward pressure on the freight rates
will not affect the Company’s revenues derived from base charter hire,
although the current market will affect the Company’s potential to earn
additional hire over and above the base charter hire.

Vessels’ Charter Arrangements and Vessel Operations*

Of the fleet of nine vessels, seven vessels are time chartered to OSG
with the terms expiring from the second quarter of 2012 to the second
quarter of 2013. The two Suezmax tankers are bareboat chartered to OSG
until 2014 and 2018, respectively.

The Company expects the base hire component of each of its charters
will provide for stable cash flow during the current volatile and
uncertain market, as the charters provide for fixed monthly base hire
payments regardless of prevailing market rates, so long as the vessels
are not-off hire for technical reasons. In addition, with respect to
eight of the nine charters, if market rates exceed the daily base hire
rates set forth in such charters, DHT will have the opportunity to
participate in any such excess under the profit-sharing component of
the applicable charter arrangements.

DHT’s two Suezmax tankers which are bareboat chartered to OSG have
their charter hire payable 365 days per year and no operating expenses
for the account of DHT. The vessels provide for stable earnings over
the period of the charters. One of the two Suezmax tankers, the
Overseas Newcastle, has a profit-sharing arrangement.

Unlike the vessels on bareboat charter, vessels on time charter may go
off-hire. The seven vessels on time charter are subject to scheduled
periodic dry docking for the purpose of special surveys and other
interim inspections that result in off-hire. In addition to scheduled
off-hire, these vessels may be subject to unscheduled off-hire for
ongoing maintenance purposes. Total off-hire for running repairs and
mandatory inspections amounted to 55 days during the third quarter of
2009, of which 43 days related to the Overseas Ania and the vessel’s
mandatory Class Special Survey.

Overseas Chris will undergo her scheduled Class Interim Survey in the
first quarter of 2010, postponed from the third quarter 2009 for
commercial reasons. Overseas Regal is scheduled to also undergo class
interim survey in early 2010. It is estimated that each vessel will be
off-hire for approximately 5 to 10 days.

Source: DHT Maritime Inc.

Search to find what you want

• Diana Shipping Inc. reported financial results for the third quarter and first nine months

    Diana Shipping Inc., a global shipping company specializing in the transportation of dry bulk cargoes, yesterday reported net income of $28.7 million for the third quarter of 2009. This compared to net income of $57.6 million reported in the third quarter of 2008.

• Diana Shipping reports financial results for the third quarter and nine months to 30 September 2009

     Diana Shipping Inc., a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $28.7 million for the third quarter of 2009.? This compared to net income of $57.6 million reported in the third quarter of 2008. Voyage and time charter revenues were $58.2 million

• Diana Shipping Inc. Reports Financial Results for the second quarter and six months at 30 June

     Diana Shipping Inc., a global shipping company specializing in the transportation of dry bulk cargoes, yesterday reported net income of $30.4 million for the second quarter of 2009. This compared to net income of $56.7 million reported in the second quarter of 2008.  Voyage and time charter revenues were $59.8 million for

• Diana Shipping Inc. Reports Financial Results for the second quarter and six months at 30 June

     Diana Shipping Inc., a global shipping company specializing in the transportation of dry bulk cargoes, yesterday reported net income of $30.4 million for the second quarter of 2009. This compared to net income of $56.7 million reported in the second quarter of 2008.  Voyage and time charter revenues were $59.8 million for

• LTC pays $ US20m to ship dispute

    Iron ore miner Fortescue Metals Group has nearly resolved the year-long dispute with its shipping charter contractors after agreeing to pay more than $US20 million to one of the counterparties involved, wrotes WA Business news. In early December 2008, Fortescue severed its long-term shipping contracts citing “changed market conditions” and

• Diana Shipping reports financial results

     Diana Shipping Inc., a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $30.4 million for the second quarter of 2009.  This compared to net income of $56.7 million reported in the second quarter of 2008. Voyage and time charter revenues were $59.8 million

• Ocean Freight Inc. reported financial results for the third quarter of 2009

    OceanFreight Inc., a global provider of marine transportation services, yesterday announced its financial results for the quarter ended September 30, 2009.

• Trailer Bridge Reports Second Quarter 2009 Financial Results

    Trailer Bridge, Inc. yesterday reported unaudited financial results for the second quarter ended June 30, 2009. The Company reported operating income of $3.2 million in the second quarter of 2009, compared to operating income of $2.2 million in the second quarter of 2008; and net income of $0.7 million, or $0.05

• Trailer Bridge Reports Second Quarter 2009 Financial Results

    Trailer Bridge, Inc. yesterday reported unaudited financial results for the second quarter ended June 30, 2009. The Company reported operating income of $3.2 million in the second quarter of 2009, compared to operating income of $2.2 million in the second quarter of 2008; and net income of $0.7 million, or $0.05

• Havila Shipping – Agreed Contracts

    Havila Shipping has entered  into a contract with Total Angola for the AHTS Havila Neptune for a fixed period of 2 years with two options of 6 months each – total 3 years.  The charter starts primo September this year. Condux has declared two monthly options for Havila Phoenix which

• Aries Maritime Transport Limited Announces Second Quarter 2009 Interim Financial Results

    Aries Maritime Transport Limited yesterday reported its interim financial results for the three and six months ended June 30, 2009. The following financial review discusses the results for the three and six months ended June 30, 2009, compared with the results for the three and six months ended June 30, 2008. On

• TBS International Limited Reports Second Quarter and six months 2009 Financial Results

     TBS International Limited announced yesterday its financial and operating results for the second quarter and six months ended June 30, 2009. Joseph E. Royce, Chairman and Chief Executive Officer and President, stated: “The second quarter of 2009 continued to be very challenging for TBS, and the Handymax/Handysize and General Cargo

• Paragon Shipping Inc. reports third quarter and nine months to 30 September 2009 Results

    Paragon Shipping Inc., a global shipping transportation company specializing in drybulk cargoes, announced yesterday its results for the third quarter and nine months ended September 30, 2009. Commenting on the results, Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, “Once again, Paragon has delivered a strong set

• Paragon Shipping Inc. Reports Second Quarter and six months at 30 June 2009 results

    Paragon Shipping Inc., a global shipping transportation company specializing in drybulk cargoes, announced yesterday its results for the second quarter and six months ended June 30, 2009. Commenting on the results, Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, “We are pleased to announce another profitable quarter for Paragon with

• Independent Tankers posts third quarter of 2009 and nine months results

    Independent Tankers Corporation Limited (the “Company” or “Independent Tankers”) was incorporated in Bermuda on January 18, 2008 and the shares have traded on the Norwegian over-the-counter market since March 7, 2008. Independent Tankers’ business is mainly concentrated on the ownership and operation of crude oil tankers on long term bareboat