DHT Holdings Nets $101.6M in Strategic Sale of Aging Oil Tankers

NEW YORK, NY – December 29, 2025 – Crude oil tanker operator DHT Holdings, Inc. has announced a strategically timed sale of two of its older vessels for a combined $101.6 million, a move that capitalizes on a scorching hot tanker market and injects substantial cash into the company’s coffers.

The sale involves the DHT China and DHT Europe, two Very Large Crude Carriers (VLCCs) built in 2007. The transaction underscores a period of record-high asset values for second-hand tankers, allowing DHT to generate approximately $95 million in net cash proceeds after repaying outstanding debt on the ships. The deal is expected to close in the first quarter of 2026 and will result in a combined accounting gain of over $60 million, signaling a highly profitable divestment for the firm.

This sale is more than just a profitable transaction; it is a clear execution of DHT's long-stated strategy of disciplined asset management and fleet renewal, perfectly timed to coincide with one of the strongest tanker markets in over a decade.

A Market at its Peak

The decision to sell the 18-year-old vessels comes as the VLCC market experiences extraordinary conditions. Charter rates, the fees paid to hire tankers, have surged dramatically throughout late 2025. Spot market earnings have consistently exceeded $100,000 per day, with some fixtures on critical routes like the Middle East to Asia reportedly surpassing $125,000 per day. These figures represent the most lucrative environment for tanker owners since before the global financial crisis.

Several factors are converging to fuel this market boom. Geopolitical tensions, including conflicts that have rerouted shipping lanes, have significantly increased voyage distances. This rise in so-called tonne-mile demand means that more ships are required for longer periods to transport the same amount of oil, effectively tightening the available supply of vessels.

Simultaneously, the supply side of the equation remains constrained. The global orderbook for new VLCCs is at a historic low, representing just 8% of the active fleet. With shipyards full and focused on other vessel types, only a handful of new VLCCs were delivered in 2025. This scarcity of new ships, combined with minimal scrapping of older ones, has created a supply bottleneck that has sent asset values soaring. The result is a seller's market where even vintage tonnage can command premium prices.

The Enduring Value of Vintage Steel

While selling ships approaching two decades of service might seem routine, the $101.6 million price tag for the DHT China and DHT Europe highlights a remarkable trend: the escalating value of older tankers. In the current market, these are not merely aging assets but valuable, cash-generating machines capable of capitalizing on high freight rates.

Second-hand vessel prices across all age categories have hit record highs. The market has seen some 10-year-old VLCCs trade for prices approaching their original construction cost. This appreciation makes selling older, fully depreciated assets an attractive proposition for owners like DHT. The sale allows the company to realize significant capital gains and avoid future maintenance and regulatory compliance costs associated with older ships.

A major, albeit opaque, driver for this demand is the expansion of the so-called “shadow fleet.” This collection of older tankers is often used in trades that circumvent international sanctions. Industry analysis shows that vessels over 15 years old have dominated sale-and-purchase transactions in 2025. While the buyer of the DHT vessels has not been identified, the robust demand from this segment of the market has undeniably lifted values for all older tonnage, creating profitable exit opportunities for mainstream operators.

The average age of the global VLCC fleet now stands at 12 years, with a growing number of vessels approaching or exceeding the 20-year mark. This dynamic ensures that well-maintained, 18-year-old ships remain commercially viable and in high demand, particularly when newbuilds are years away from delivery.

DHT's Disciplined Fleet Strategy

For DHT Holdings, this sale is a textbook execution of its corporate philosophy. The company has long emphasized a “prudent capital structure” and a disciplined approach to capital allocation designed to ensure “staying power through the business cycles.” The $95 million cash infusion provides a significant boost to its financial flexibility.

This transaction is part of a consistent fleet renewal program. Earlier in 2025, DHT sold two younger, 2011-built VLCCs for $103 million. The divestment of the 2007-built DHT China and DHT Europe further reduces the average age of the company's fleet, leaving it with a more modern and efficient portfolio of all Korean-built VLCCs.

The proceeds from the sale can be deployed in line with DHT’s stated capital allocation priorities. These include returning cash to shareholders through dividends or share buybacks, further paying down debt to strengthen the balance sheet, or reinvesting in the fleet. The latter could involve acquiring more modern, fuel-efficient second-hand vessels or, when the time is right, placing orders for newbuilds that meet upcoming environmental regulations.

By monetizing its oldest assets at a market peak, DHT not only crystallizes immense value but also enhances its capacity to navigate the industry's future challenges and opportunities from a position of financial strength.

Navigating Future Currents

Looking ahead to 2026, the crude tanker market is expected to remain balanced, though not without complexities. While the VLCC segment is in a relatively strong position due to its low orderbook, other tanker segments are expecting higher fleet growth. Furthermore, the long-term status of the shadow fleet and its potential reintegration into mainstream trading remains a significant variable for future vessel supply.

Global oil demand growth is forecast to be steady, and lower oil prices could stimulate further stocking activity, supporting tanker demand. However, the industry is also on a path toward decarbonization, which will require significant investment in new technologies and fuels over the coming decade.

Against this backdrop, DHT's strategic sale provides it with a crucial advantage. The substantial cash proceeds act as a powerful tool, giving the management team the flexibility to adapt to changing market dynamics, whether by seizing investment opportunities in next-generation vessels or by weathering any potential downturns. This proactive management of its fleet and balance sheet positions the company to continue creating value as the energy landscape evolves.