DHT Holdings Inc (NYSE:DHT) stock fell 2.34% (As on August 13, 11:22:02 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the second quarter of FY 24. In the second quarter of 2024, the Company achieved average combined time charter equivalent earnings of $49,100 per day, comprised of $52,700 per day for the Company’s VLCCs operating in the spot market and $36,400 per day for the Company’s VLCCs on time-charter.  Adjusted EBITDA for the second quarter of 2024 was $80.0 million. Net profit for the quarter was $44.5 million, which equates to $0.27 per basic share. In the second quarter of 2024, the Company paid $51.4 million as installments for the four newbuildings on order with Hyundai Samho Heavy Industries Co., Ltd. and Hanwha Ocean Co., Ltd. (formerly known as Daewoo Shipbuilding and Marine Engineering) in South Korea. The expected deliveries for all four vessels have been expedited, increasing revenue days in 2026, with the vessels expected to be delivered in February, April, May and July 2026, respectively. The options for four additional vessels have not been executed and have expired. The Company has entered into a one-year time charter contract with a refining company for DHT Europe, built 2007. The time charter contract has a rate of $49,500 per day and the vessel is intended to trade in the Atlantic basin, servicing a European refinery. The vessel was delivered into the time charter contract at the end of the second quarter.

Moreover, the freight market ended the second quarter and has commenced the third quarter with weaker freight rates when compared to the first half of 2024. Chinese economic growth and oil demand has recently been slower than expected.

DHT in the second quarter of FY 24 has reported the adjusted earnings per share of 27 cents, missing the analysts’ estimates for the adjusted earnings per share of 28 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $103.7 million in the second quarter of FY 24, missing the analysts’ estimates for revenue by 0.43%.

Additionally, for the second quarter of 2024, the Company has declared a cash dividend of $0.27 per share of outstanding common stock, payable on August 30, 2024, to shareholders of record as of August 23, 2024.