DHT Holdings reported posted a loss for the third-quarter due to a non-cash impairment charge on the value of its existing ships and its newbuildings.
The third-quarter weakness in tanker rates also sank revenue.
Oslo-based DHT reported a third-quarter loss of $75.7m, which includes a $76.6m non-cash impairment charge.
That resulted in a bottom-line net loss of $0.81 per share.
Without the charge, the company would have reported a breakeven quarter, while analysts had been expecting a $0.04 per share profit.
The company said it plans to pay a $0.02 per share dividend for the quarter.
But it tweaked its capital allocation policy to say that it intends to return 60% of its net income to shareholders in the form of stock buybacks, as well as dividends, beginning this quarter. Its previous capital allocation policy only listed dividends as a use for net income.
Revenue was $50.3m for the quarter, which was a 33% drop from the year earlier quarter.
While the company’s time chartered VLCC fleet was able to earn $46,700 per day, its VLCCs trading in the spot market only earned $20,300 per day. The owner took delivery of two additional ships in the quarter that are trading in the spot market.
The company said it also refinanced a $40m credit facility with RBS that was set to mature in July 2017. The credit facility financed four tankers, including the 309,300-dwt DHT Chris (built 2001), which TradeWinds reported last month was being sold for $23.7m.
With the sale of the DHT Chris, the refinancing will bring down DHT’s quarterly amortisation to $1.3m with a final balloon payment of $13.6m in August 2019.
