DHT Holdings, Inc.

Good morning and good afternoon, everyone. Welcome and thank you for joining DHT Holdings' fourth quarter 2020 earnings call. I am joined by DHT's co-CEOs, Svein Moxnes Harfjell and Trygve Munster, and Vilhelm Flinder, Head of Investor Relations. As usual, we will go through financials and some highlights before we open up for your questions. The link to the slide deck can be found on our website, dhtankers.com. Before we get started with today's call, I would like to make the following remarks. A replay of this conference call will be available at our website, dhtankers.com, until February 16th. In addition, our earnings press release will be available on our website and on the SSE EDGAR system as an exhibit to our Form 6K. As a reminder, on this conference call, we will discuss matters that are forward-looking in nature. These forward-looking statements are based on our current expectations about future events, including DHT's prospects, dividends, share repurchases and debt repayments, the outlook for the tanker market in general, daily shorter highways and vessel utilization, forecasts of world economic activity, oil prices and oil trading patterns, anticipated levels of new building and scrapping, and projected dry dock schedules. Actual results may differ materially from the expectations reflected in these forward-looking statements. We urge you to read our periodic report available on our website and on the SSB EDGAR system, including the risk factors in these reports, for more information regarding risks that we face.

Good morning and good afternoon, everyone. This is Drigva. Before we take you through the highlights for the quarter, I just wanted to get you up in the helicopter, so to say, in order for you to get the right perspective. The fact of the matter is that 2020 not only set the new record for adjusted net income, it crushed the old one. The adjusted net income of $287 million last year was 2.8 times the old record from 2015. So with that as a backdrop, Laila will now focus in on the fourth quarter financials. Laila?

Thank you, Trude. Looking at the P&L highlights, DHT showed profitable results for the fourth quarter despite a very tough bank market. EBITDA for the quarter came in at $51.1 million and an net income of $7.6 million or $0.04 per share. Adjusted for non-cash gain 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 or $0.08 per share for the quarter. Offex for the quarter was $22.1 million, which is above the quarterly average for the year of $20.4 million. The increase is mainly due to higher costs, for crude changes due to COVID-19 and upstoring of spares and consumables. We expect OPEX to be more in line with historical levels when things normalize. G&A for the quarter was $4.5 million. EBITDA for 2020 came in at $450.4 million and a net income of $266.3 million or $1.71 per share. Adjusted for a non-cash loss 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 or $1.84 per share for 2020. Moving over to the balance sheet, the quarter ended with $68.6 million of cash. During the quarter, we prepaid $25.8 million under the Nordea credit facility. The voluntary prepayment was made for all regular installments for 2022. At quarter end, the company's availability under both the revolving credit facilities was $170 million, putting total liquidity at $239 million as of December 31st. DHT has continued to strengthen the balance sheet with the prepayment done during the quarter. Financial leverage is 29% based on market values for the ship, and estimated to 35% when including the two new assets announced in January. Net debt per vessel is 14.1 million per year end, which is well below current scrap values. Looking at the cash bridge, the quarter started with 75 million of cash, and we generated 51 million in EBITDA. Ordinary debt repayment and cash interest amounted to 23 million. 34 million was paid in dividends. 11 million was used for maintenance cash back, and 26 million was used for debt prepayments. Changes in working capital amounted to 35 million. and the quarter ended with 69 million of cash. With that, I will turn the call over to Trigva.