DHT Holdings: Well-Positioned For A Counter-Cyclical Strategy (NYSE:DHT)

Key Takeaway

DHT Holdings Inc. (DHT) has a solid track record of reading the shipping cycles successfully. As a matter of fact, the management does it from 2013 up until now consistently.

During the recent period of strong earnings and asset values appreciation, management earmarks the excess cash from operations for two strategic pillars:

1. Enhancing the shareholder returns by making hefty dividend payments of $134 million in relation to H1 2020.

2. Deleveraging the company’s balance sheet by paying $117 million of debt on top of the scheduled debt repayments.

Also, management executed on a third pillar concerning DHT’s chartering strategy:

3. Securing 10 vessels to long-term time charters. In that way, DHT managed to lower business cash break-even rates considerably.

As a result, DHT is well-positioned to explore growth opportunities in the present leg of the crude tanker market.

Current newbuilding and second-hand markets for VLCCs are not

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