DHT Holdings, Inc. announced it has entered into agreements to build four large VLCCs for delivery between April and December 2026. Two will be constructed at each Hyundai Samho Heavy Industries and Hanwha Ocean, in South Korea.
As explained, the average price is $128,500,000 for the four ships. The contracts include options for an additional four vessels that can be delivered during the first half of 2027. The vessels have been ordered to high specifications with new Super Eco-designs and premium earning power through improved fuel economics, reduced emissions and large carrying capacity of about 320,000 metric tons. The ships will be fitted with Exhaust Gas Cleaning Systems, be Tier III compliant, hold class ready notations for multiple fuels, and further improve the DHT fleet efficiencies.
We have secured very early and competitive delivery slots to build the most efficient ships and of the highest quality the market has to offer. We expect our clients to welcome these timely fleet additions through DHT’s continued safe, efficient and reliable transportation of crude oil.
..President & CEO, Svein Moxnes Harfjeld, stated.
The Company does not intend to issue any new capital, but plans to finance the project with cash-flows from operations, available liquidity, and new mortgage debt. These investments are expected to be accretive to the Company’s earnings and the Company will maintain its dividend policy of paying out 100% of ordinary net income to shareholders through quarterly cash dividends.
The vessel supply scenario for the VLCC sector is very constructive:
- The current orderbook with the supply of new VLCCs equals less than 3% of the existing fleet.
- Delivery slots for potential additional VLCC orders are available from 2027 onwards. These potential delivery slots face competition from several other shipping segments.
- The fleet is rapidly aging. By the end of 2026, close to 50% of the fleet is projected to be older than 15-years of age and over 20% will be older than 20-years.
- About 160 VLCCs, with an average age of 21-years, are estimated to have been involved in sanctioned trades. These vessels have limited, if any, commercial opportunities in the compliant markets and trades.
- IMO’s implementation of the Carbon Intensity Indicator (CII) will increasingly constrain the efficiency of the older end of the fleet. Ships in this category may be forced to decrease speed to meet lower emissions targets thereby reducing shipping capacity.
