Page 32 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΟΚΤΩΒΡΙΟΣ 2024

TANKER MARKET

offer to the shipowner. We believe that the and offer much lower energy content. We
leading shipyards in South Korea and Japan doubt that our customers would be willing to
continue to offer the most advanced designs, bear the cost or be able to pass it on to their
equipment, and production facilities, and we end users. It seems logical that early uptake
do not seem to be alone in holding this view, of these fuels should occur on smaller ves-
as these shipyards are able to command sels with shorter voyages, operating closer to
higher prices. shore-based infrastructure.
As for LNG dual-fuel solutions, we are not
❹ DHT Holdings is a listed ship- convinced that the incremental capital expend-
ping company. Do stock markets iture of nearly $20 million for a VLCC can be
“reward” companies that prefer justified. The current pricing environment does
chartering their vessels on long- not make LNG economical, and the existing
term contracts, or is investor inter- dual-fuel VLCC fleet does not have scrubbers
est mainly driven by the company’s installed, meaning they would still rely on
ability to make the right decisions VLSFO if LNG is uneconomical.
based on the prevailing conditions
in the shipping markets? ❻ Does the CII influence your manage-
In general, shipping stocks have typically ment and operational decisions?
been tradeable equities. Our long-term Yes, to the extent that we can influence how
ambition has been to become an investable the ships operate. If a ship is on time charter,
In efforts to shipping equity. To achieve this, a strong bal- the customer will influence its operational
reduce emissions ance sheet, predictable capital allocation, and mode. In these time charter contracts, we have
regulators seem sound financial performance over time are included terms that address potential changes
to disregard crucial. The market is cyclical, and a compa- in CII ratings resulting from how the customer
the immediate ny’s ability to manage these cycles and make is trading the ship. In the spot market, the
positive impact good decisions influences its financial results. laden leg is predefined by the customer, so
that speed Moreover, as public companies manage other the shipowner’s ability to influence the CII
reductions could people’s money, corporate governance and a outcome is somewhat limited.
have. It may not high level of integrity are also essential. I like In efforts to reduce emissions, regulators seem
fix everything, to think that our list of long-term sharehold- to disregard the immediate positive impact
but it could ers reflects our track record in these areas. that speed reductions could have. It may not
be a significant fix everything, but it could be a significant
positive change ❺ In your 2023 ESG Report, you positive change with swift impact and limited
with swift emphasised the viability of eco-de- investment. End users, such as refiners, could
impact and limited sign vessels over alternative-fuel play a major role by considering how they man-
investment. ones. What is this belief based on? age feedstock deliveries.
What is your outlook on the future
of the tanker market? ❼ Throughout its long history, DHT
Early last year, we engaged two of the world’s Holdings has taken advantage of
leading energy research firms to conduct two appealing opportunities to expand
studies for us. One was a deep dive into future its fleet through timely acquisi-
fuels, focusing specifically on green ammo- tions of both vessels and compa-
nia and bio-methanol. Our goal was to better nies. Given that we are currently in
understand several factors determining the via- a tanker market “supercycle”, are
bility of these fuels, including planned projects you exploring new opportunities?
for their production, the locations of production We are always seeking ways to enhance value
plants, the way these fuels will be delivered to for our shareholders. As asset prices have
the market, the cost of building the production risen, it has become more challenging to
plants, which will, in turn, determine the cost of develop value propositions with a reasonable
the fuels, and the greater ability or willingness confidence level. We are currently in a strong
of other industries to pay for these fuels. position with a sizable fleet, a highly compe-
The two firms, unaware of each other, deliv- tent organisation both ashore and onboard our
ered their conclusions independently at the vessels, a strong balance sheet with robust
end of last year with highly aligned results. break-even levels, and a supportive group of
The key takeaway for large tankers is that the customers and lending banks. This provides us
availability of these fuels will remain limited with the luxury of not having to do something
for many years, they will be very expensive just for the sake of it.

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