DHT - We Have Increased Our Stake In DHT Holdings

2024-04-08 03:41:33 ET

Summary

• DHT Holdings has seen a total return of 33.5% in the past six months and shows potential for further growth.
• The company has a strong balance sheet and is renewing its fleet with newbuildings to improve fuel economics and reduce emissions.
• The VLCC market is expected to remain strong for the next 2-3 years, barring any major economic downturn impacting demand for crude oil.

Investment thesis

It has been just over six months since we shared with our readers that we had started a position in DHT Holdings, Inc. ( DHT ).

It was the favorable supply/demand dynamics which are particularly taking place for the large crude oil tankers that caused us to take a keen interest in this sector. At that time, the total global fleet of VLCCs was 883 vessels with 100 of them being 20 years or older. Newbuildings on order were just 13 vessels, or 1.5% of the fleet....

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