DHT Holdings Streamlines Fleet with Sale of Two VLCCs Amid Strategic Repositioning

DHT Holdings, Inc. (NYSE: DHT), a leading independent owner and operator of crude oil tankers, has announced the sale of two of its Very Large Crude Carriers (VLCCs), the DHT Lotus and DHT Peony, as part of a broader effort to optimize its fleet for evolving market demands.

The vessels, built in 2011 by Bohai Shipbuilding Heavy Industry Co. in China, are scheduled to be delivered to their new, undisclosed buyer in April and July of 2025. The total consideration for the sale stands at $103 million. Following the repayment of $15.9 million in outstanding debt linked to these ships, DHT expects net cash proceeds of approximately $85 million.

The transaction will also yield notable accounting gains, with the company anticipating a capital gain of approximately $17.5 million in Q2 2025 and $15.5 million in Q3 2025. The sale represents a profitable exit, as the vessels were originally acquired in 2017 as part of DHT’s $538 million fleet acquisition from BW Group, in which the DHT Lotus and DHT Peony were valued at a combined $115.8 million.

According to President & CEO Svein Moxnes Harfjeld, the move is part of a “fleet rejuvenation strategy” that ensures DHT remains agile and aligned with the technical and environmental expectations of modern charterers. “This sale supports our effort to improve fleet efficiency, reduce the average age of our vessels, and respond to increasing environmental scrutiny across the oil shipping industry,” Harfjeld said.

The sale comes as the global tanker market continues to shift in response to environmental regulations, changing oil trade flows, and the growing emphasis on carbon efficiency. Older VLCCs, particularly those built before 2013, are increasingly facing pressure due to stricter emissions rules and potential limitations under upcoming Carbon Intensity Indicator (CII) requirements.

While DHT has not disclosed whether the proceeds will be used for new vessel orders or share repurchases, the company has maintained a conservative capital allocation strategy in recent quarters, emphasizing shareholder returns and operational leverage.

Investors have responded favorably to the announcement, with analysts noting that the sale strengthens DHT’s balance sheet and increases strategic flexibility. The cash injection, coupled with asset gains, improves the company's financial position at a time when newbuild VLCC prices remain high and secondhand asset values are firm due to limited yard capacity through 2027.

As of this sale, DHT operates a fleet comprised exclusively of VLCCs, which are primarily employed on time-charter and spot market routes. The sale of these two older vessels will likely reduce maintenance costs and improve average fleet fuel efficiency metrics.

With decarbonization efforts accelerating across maritime shipping, operators like DHT are expected to continue rotating out older tonnage and reinvesting in more energy-efficient solutions—whether through scrubber retrofits, dual-fuel propulsion, or partnerships with green corridor initiatives. The company has not ruled out future acquisitions but remains focused on disciplined capital deployment.

The DHT Lotus and DHT Peony represent the last of the pre-eco VLCCs in DHT’s portfolio, underscoring the company’s commitment to maintaining a modern, high-performance fleet.