DHT Holdings has revealed another increase in VLCC spot rates as brokers report vessel earnings bottoming out worldwide.
In a trading update, the New York-listed company estimated time charter equivalent earnings for its fleet at $50,900 per day in the first quarter — $54,000 per day for its spot VLCCs and $39,500 for the time-chartered ships.
Figures were based on 2,091 revenue days for the first quarter, of which 1,636 days were spot days.
So far in the second quarter, DHT has booked 42% of available spot days at an average rate of $54,200 per day on a discharge-to-discharge basis.
The combined spot and time charter figure for 54% of days is $46,900 per day.
The rises have come against a background of falling rates over the last month.
The Baltic Exchange assessed VLCCs from the Middle East Gulf to China at $38,200 per day on Thursday, down 20% over the past month, unchanged from Wednesday.
Fearnley Securities said brokers were reporting that rates have bottomed out and activity is picking up in the Atlantic.
DHT’s TCE earnings came in at $42,000 per day in the final quarter of last year.
The VLCC specialist reported a net profit of $35.3m for the fourth quarter, a drop from $61.8m a year earlier.
With VLCC rates flat, suezmax and aframaxes took the spotlight.
Suezmaxes were quoted at $50,300 per day, up 5% from Wednesday, while aframaxes gained 8% at $50,600.
