First Quarter Results
The Company today reported revenues for the period from January 1 to March 31, 2011, of $22.3 million, compared to revenues of $22.4 million for the prior-year period. Of the $22.3 million of revenues for the quarter, $17.6 million relates to the seven vessels on time charter and $4.7 million relates to the two vessels on bareboat charter. For the quarter there was no profit sharing under the Company’s profit-sharing arrangements. The DHT Phoenix was delivered to DHT on March 2, 2011 and will enter the TI pool during April 2011.
The Company’s seven vessels on time charter contracts were on-hire 99.6% for the quarter. The next scheduled class surveys are special surveys for three VLCCs; one in each of the second, third and fourth quarter of 2011. In addition, two Aframax vessels are scheduled for interim surveys in the fourth quarter of 2011.
Vessel operating expenses for the quarter were $6.4 million. Voyage related expenses of $1.3 million relate to bunker consumption to reposition the newly acquired DHT Phoenix to enter the TI pool.Depreciation and amortization expenses, including depreciation of capitalized dry docking costs, were $6.8 million. G&A for the quarter was $2.4 million including non-cash cost related to restricted share agreements for management and board. G&A for the quarter includes a high level of activity related to capital raising, vessel inspections, vessel acquisitions and move of offices. Net financial expenses of $1.3 million include a net non-cash gain on interest rate swaps of $0.3 million. The Company had net income for the quarter of $4.0 million or $0.07 per diluted share, compared to net loss of $2.2 million or $0.05 per diluted share, for the first quarter of 2010. After adjusting for non-cash financial items related to interest rate swaps, net income for the quarter was $3.8 million or $0.07 per share. Free cash flow from operations was $10.8 million or $0.18 per share 1. At the end of the first quarter, the Company’s cash balance was $102.2 million, not including $6.7 million in deposit paid towards the acquisition of the DHT Eagle. The Company remains in compliance with its financial covenants.