Shares of DHT Holdings Inc. (NYSE: DHT) jumped more than 8% in today�s trading. The small cap stock reached a high of $4.43 in today�s trading. It closed 8.64% higher at $4.40, with volume up from daily average of 367,000 to 634,000. DHT Holdings Inc. operates a fleet of double-hull tankers.
DHT Holdings reported its first-quarter results today, posting first-quarter revenue of $22.4 million, down from $29.8 million reported for the same period last year. It reported a net loss of $2.2 million, or $0.05 per diluted share in the quarter. For the same period last year, the company reported net income of $6.9 million, or $0.17 per diluted share. Randee Day, the company�s acting CEO, said that the strategy of employing its vessels on medium to long-term charters is serving the company well in the current freight market. It is providing the company with stable earnings and cash flow. Also, in the first quarter, the company established a holding company structure. This has been done to enhance flexibility to support growth and capital opportunities.
The company�s board of directors has also declared a cash dividend of $0.10 per share for the first quarter. This will be payable June 8, 2010. Day said that the deleveraging of balance sheet, following $153 million in debt repayments since 2008, along with firming of vessel values over the past quarter and cash on hand of $49 million, enabled the board to reinstate a quarterly dividend. The dividend payment will not restrict the company from taking advantage of growth opportunities offered by the current shipping market.
Last week, the company and MMI Investments announced that they reached an agreement that will resolve the proxy contests, which relate to DHT�s 2010 Annual Meeting of Stockholders.
DHT stock has a 52-week range of $3.30-$5.82. It has a beta of 0.59. The small cap stock is currently trading above its 50-day and 200-day moving averages. At the moment, the stock has one Buy rating, five Hold ratings, and one Underperform rating.
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