The tanker carrier's two CEOs each earn more respectively than the top chief execs from Norway's three largest companies combined, reports Dagens Næringsliv. Competitor Frontline, which has made repeated attempts to buy DHT, has previously criticized the carrier's salary costs.
John Fredriksen is, according to the Wall Street Journal, in talks related to an acquisition of US-based tanker carrier Gener8 Maritime in a deal which would create the world's biggest VLCC fleet. As such, Frontline looks to have quit its pursuit of DHT.
Crude carrier Frontline saw its profit slide in the first quarter 2017 due to weak rates in the tanker market. But the CEO is optimistic and maintains the strategy to grow despite the failed attempts to take over competitor DHT.
Rates for supertankers in the Middle East have plunged to the lowest level since 2014 for this time of year, reports Morgan Stanley. The investment bank expects strained rates for some time going forward.
A massive orderbook packed with new crude oil tankers set for delivery in 2017 means that overcapacity will continue to strain the sector. The large vessel influx will be replaced next year by weak demand, and the scrapping of vessels is thus crucial to the prospects of a tanker market recovery, writes Drewry.
En massiv ordrebog af nye råolietankere sat til levering i 2017 betyder, at overkapacitet fortsat vil holde sektoren nede. Næste år vil den store flådetilgang blive afløst af svag efterspørgsel, og skrotning af tankskibe er derfor afgørende for at sikre et bedre tankmarked, skriver Drewry.
DHT Holdings performed above analyst expectations with the operating result in the first quarter this year. The carrier, which is subject to continuous acquisition offers from competitor Frontline, has also settled a new bank agreement.
DHT Holdings' board of directors rejects the Frontline bid announced on April 25. The board adds that it is about time that the parties move on. Instead, Frontline replies that the bid should be presented to the shareholders, according to a comment to ShippingWatch.
Significantly more supertankers will join the fleet this year – and likely, in the years to come – than there are vessels leaving the fleet, shows a survey by McQuilling. As many as 30 new VLCCs are expected delivered this year while ten will leave the fleet, and that is cause for concern, notes the firm.
The Marshall Islands court has, like the court in New York, determined that the deal between BW Group and DHT Holdings does not pose a problem. Frontline has at both courts attempted to have the transaction voided in an attempt to get a bigger share in DHT Holdings' VLCC fleet.
Shipping magnate John Fredriksen continues the battle to take over DHT as the move could give his tanker carrier Frontline a superior position in the VLCC market. "Size does matter," one analyst tells ShippingWatch. "Very insufficient offer," says DHT.
John Fredriksen's Frontline has sent a new offer to DHT in which the company proposes a merger of Frontline and DHT. "We are convinced that the proposed new combination of Frontline and DHT will maximize value for both sets of shareholders," writes Frontline. DHT Holdings describes the new bid as "unimproved."
John Fredriksen and his tanker carrier Frontline are offloading shares in DHT Holdings. The sale comes after Frontline's attempts to buy the competitor failed last week, as DHT made a deal with BW Group instead.
Clarksons Platou and Fearnley Securities are both praising tanker carrier DHT Holdings for its purchase of BW Group's VLCC fleet. With the transaction, the company goes from being on the defense to an active player in the consolidation in the tanker market, say the analysts.
DHT Holdings is set to buy BW Group's fleet of 11 VLCCs including two newbuildings set for delivery next year, inform the parties Thursday. The transaction will make BW Group a major shareholder in DHT Holdings.