Condensed Financial Information of DHT Holdings, Inc.

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of DHT Holdings, Inc. [Abstract]

Condensed Financial Information of DHT Holdings, Inc.

Note 16 - Condensed Financial Information of DHT Holdings, Inc. (parent company only)

SEC Rule 5-04 Schedule I of Regulation S-X requires DHT to disclose condensed financial statements of the parent company when the restricted net assets of consolidated subsidiaries exceeds 25% of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant's proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations), which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.).

The restricted net assets of consolidated subsidiaries exceeded 25% of the consolidated net assets of the parent company as of December 31, 2017, 2016, and 2015. The restricted assets mainly relate to assets restricted by covenants in our secured credit agreements entered into by the Company's vessel-owning subsidiaries.

F-47

FINANCIAL POSITION

(Dollars in thousands)

ASSETS	December 31,			December 31,			December 31,
Current assets	2017			2016			2015
Cash and cash equivalents	$	11,540		$	6,043		$	53,645
Accounts receivable and prepaid expenses		249			4,554			406
Deposit for vessel acquisition		114,759			50,138			214,905
Amounts due from related parties		7,992			-			-
Total current assets	$	134,540		$	60,735		$	268,956

Investments in subsidiaries	$	521,801		$	527,149		$	439,955
Loan to subsidiaries		481,012			357,776			201,312
Investment in associate company		201			201			-
Total non-current assets	$	1,003,014		$	885,127		$	641,266

Total assets	$	1,137,555		$	945,862		$	910,222

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses	$	1,454		$	1,848		$	1,996
Amounts due to related parties		-			125,870			3,469
Total current liabilities	$	1,454		$	127,718		$	5,465

Non-current liabilities
Long-term debt		98,262			109,916			129,179
Total non-current liabilities	$	98,262		$	109,916		$	129,179

Total liabilities	$	99,716		$	237,634		$	134,644

Stockholders' equity
Stock	$	1,424		$	934		$	929
Paid-in additional capital		1,096,793			839,008			834,769
Accumulated deficit		(60,379	)		(131,714	)		(60,121	)
Total stockholders' equity	$	1,037,838		$	708,228		$	775,578

Total liabilities and stockholders' equity	$	1,137,555		$	945,862		$	910,222

F-48

INCOME STATEMENT

(Dollars in thousands)	Jan. 1 - Dec. 31,			Jan. 1 - Dec. 31,			Jan. 1 - Dec. 31,
	2017			2016			2015

Revenues	$	-		$	6,770		$	4,894
Impairment charge		(4,948	)		(18,132	)		(9,500	)
Dividend income		25,415			16,900			125,400
General and administrative expense		(13,764	)		(14,525	)		(12,769	)
Operating income	$	6,703		$	(8,987	)	$	108,025

Interest income	$	21,798		$	14,559		$	10,692
Interest expense		(9,229	)		(11,494	)		(11,340	)
Other financial income/(expenses)		1,020			693			403
Profit for the year	$	20,293		$	(5,228	)	$	107,780

Statement of Comprehensive Income

	Jan. 1 - Dec. 31,		Jan. 1 - Dec. 31,			Jan. 1 - Dec. 31,
	2017		2016			2015

Profit for the year	$	20,293	$	(5,228	)	$	107,780
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:		-		-			-
Items that may be reclassified subsequently to profit or loss:		-		-			-
Total comprehensive income for the period	$	20,293	$	(5,228	)	$	107,780

Attributable to the owners	$	20,293	$	(5,228	)	$	107,780

In the condensed financial statement of parent company, the parent company's investments in subsidiaries were recorded at cost less any impairment. An assessment for impairment was performed when there was an indication that the investment had been impaired or the impairment losses recognized in prior years no longer existed.

F-49

CASH FLOW

(Dollars in thousands)	Jan. 1 - Dec. 31,			Jan. 1 - Dec. 31,			Jan. 1 - Dec. 31,
	2017			2016			2015

Cash Flows from Operating Activities:
Profit for the year	$	20,293		$	(5,228	)	$	107,780
Items included in net income not affecting cash flows:
Amortization		4,170			4,982			4,571
Impairment charge		4,948			18,132			-
Compensation related to options and restricted stock		4,948			7,365			6,911
(Gain)/loss purchase convertible bond		(1,035	)		-			-
Changes in operating assets and liabilities:
Accounts receivable and prepaid expenses		4,305			(4,148	)		(7	)
Accounts payable and accrued expenses		(291	)		(148	)		(1,980	)
Amounts due to related parties		11,782			122,401			358
Net cash provided by operating activities	$	49,119		$	143,357		$	117,632

Cash flows from Investing Activities
Investments in subsidiaries	$	-		$	(1,022	)	$	(9,486	)
Loan to subsidiaries		82,814			(63,985	)		(47,564	)
Investment in vessels under construction		(86,004	)		(32,219	)		(40,409	)
Net cash used in investing activities	$	(3,191	)	$	(97,227	)	$	(97,458	)

Cash flows from Financing Activities
Cash dividends paid		(23,328	)		(66,365	)		(49,194	)
Purchase of treasury shares		-			(2,031	)		-
Purchase of convertible bonds		(17,104	)		(25,334	)		-
Net cash used in financing activities	$	(40,431	)	$	(93,731	)	$	(49,194	)

Net increase/(decrease) in cash and cash equivalents	$	5,497		$	(47,602	)	$	(29,019	)
Cash and cash equivalents at beginning of period		6,043			53,645			82,664
Cash and cash equivalents at end of period	$	11,540		$	6,043		$	53,645

The condensed financial information of DHT Holdings Inc. has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the cost method has been used to account for investments in its subsidiaries.

F-50

A reconciliation of the profit/(loss) and equity of the parent company only between cost method of accounting and equity method of accounting for investments in its subsidiaries are as follows:

(Dollars in thousands)	Jan. 1 - Dec. 31,			Jan. 1 - Dec. 31,			Jan. 1 - Dec. 31,
	2017			2016			2015

Profit/(Loss) Reconciliation
Profit/(loss) of the parent company only under cost method off accounting	$	20,293		$	(5,228	)	$	107,780
Additional profit/(loss) if subsidiaries had been accounted for using equity method of accounting as opposed to cost method of accounting		(13,664	)		14,467			(2,456	)
Profit of the parent company only under equity method of accounting	$	6,628		$	9,239		$	105,325

(Dollars in thousands)	December 31,			December 31,
	2017			2016
Equity Reconciliation
Equity of the parent company only under cost method of accounting	$	1,037,838		$	708,228
Additional profit if subsidiaries had been accounted for using equity method of accounting as opposed to cost method of accounting		(16,253	)		(2,588	)
Equity of the parent company only under equity method of accounting	$	1,021,586		$	705,640

Dividends from subsidiaries are recognized when they are authorized. During the year ended December 31, 2017, the parent company recorded dividend income from its subsidiaries of $25,000 thousand. During the year ended December 31, 2016, the parent company recorded dividend income from its subsidiaries of $16,900 thousand. During the year ended December 31, 2015, the parent company recorded dividend income from its subsidiaries of $125,400 thousand.

During the year ended December 31, 2017, the parent company was a guarantor for all of its credit facilities. Please refer to Notes 8 and 9 for a listing and summary of the credit facilities.