DHT's Q2 earnings beat estimates at $126,700/day. Third-quarter spot bookings are already 14% lower. A new charter locks in a $75,000 floor for three years.
DHT Holdings reported second-quarter time charter equivalent earnings of $126,700 per day, driven by spot VLCC rates of $162,600 per day on 1,007 spot days. The fleet-wide figure includes lower contributions from time-chartered vessels at $90,800 per day, the company said in a July 13 business update.
The Q2 TCE beat the prior quarter's $105,000 per day and exceeded the $75,000 per day floor on a new three-year charter signed in July. The third-quarter outlook already shows a pullback. Through mid-July, DHT has booked 48% of available spot days at an average of $139,700 per day on a discharge-to-discharge basis. That is a 14% decline from the Q2 spot average. The rate still stands well above historical norms for the VLCC segment.
In total, 74% of the third quarter's revenue days are booked at $94,300 per day. That blends softening spot rates with the fixed-income contribution from time charters.
VLCC spot rates averaged around $50,000 a day through 2024 and early 2025. The Q2 average of $162,600 represents a period of elevated earnings. Industry data shows spot rates have drifted lower since May. OPEC+ supply cuts and softer Chinese crude imports are among the factors that have reduced spot demand.
The July charter for the 2015-built DHT Jaguar at $75,000 per day for three years locks in revenue at a premium to the 2025 average. It falls below the spot rates the company has been earning. The contract starts in September with a global energy company, DHT said. The fixed-income component provides a floor that reduces earnings volatility. It also means DHT will forgo upside if spot rates rally again.
DHT's balance sheet remains conservative. The company has no debt maturities until 2027. It has been using cash flow to prepay debt, buy back shares, and pay dividends. Its Alpha Score of 75 out of 100, classified as "Strong," reflects low leverage, high fleet utilization, and consistent capital returns.
The tanker market's direction in the second half of the year hinges on OPEC+ output decisions and Chinese crude import demand. The winter heating season will also play a role. DHT's Q3 bookings suggest the company is already pricing in a more cautious environment. The $75,000 charter floor keeps the dividend supported through the near term.
For more on crude oil market dynamics, see the crude oil profile.
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