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Condensed Financial Information of DHT Holdings, Inc.
 12 Months Ended
Dec. 31, 2018
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 12-04 Condensed Financial Information of Registrant 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, 2018, 2017 and 2016.  The restricted assets mainly relate to assets restricted by covenants in our secured credit agreements entered into by the Company's vessel-owning subsidiaries.
 




FINANCIAL POSITION

(Dollars in thousands)

ASSETS
  
December 31,
    
December 31,
  
Current assets
  
2018
    
2017
  
Cash and cash equivalents
  
$
17,783
    
$
11,540
  
Accounts receivable and prepaid expenses
    
374
      
249
  
Deposit for vessel acquisition
    
-
      
114,759
  
Amounts due from related parties
    
36,216
      
7,992
  
Total current assets
  
$
54,372
    
$
134,540
  
 
                
Investments in subsidiaries
  
$
468,941
    
$
521,801
  
Loan to subsidiaries
    
563,349
      
481,012
  
Investment in associate company
    
201
      
201
  
Total non-current assets
  
$
1,032,491
    
$
1,003,014
  
 
                
Total assets
  
$
1,086,864
    
$
1,137,555
  
 
                
LIABILITIES AND STOCKHOLDERS' EQUITY
                
Current liabilities
                
Accounts payable and accrued expenses
  
$
3,733
    
$
1,454
  
Current portion long-term debt
    
32,009
      
-
  
Total current liabilities
  
$
35,742
    
$
1,454
  
 
                
Non-current liabilities
                
Long-term debt
    
111,968
      
98,262
  
Total non-current liabilities
  
$
111,968
    
$
98,262
  
 
                
Total liabilities
  
$
147,710
    
$
99,716
  
 
                
Stockholders' equity
                
Stock
  
$
1,427
    
$
1,424
  
Treasury shares
    
(1,364
)
    
-
  
Paid-in additional capital
    
1,097,099
      
1,096,793
  
Accumulated deficit
    
(158,009
)
    
(60,379
)
Total stockholders equity
  
$
939,154
    
$
1,037,838
  
 
                
Total liabilities and stockholders' equity
  
$
1,086,864
    
$
1,137,555
  
 

 



INCOME STATEMENT

(Dollars in thousands)
  
Jan. 1 - Dec. 31,
    
Jan. 1 - Dec. 31,
    
Jan. 1 - Dec. 31,
  
 
  
2018
    
2017
    
2016
  
 
                  
Revenues
  
$
-
    
$
-
    
$
6,770
  
Impairment charge
    
(93,452
)
    
(4,948
)
    
(18,132
)
Dividend income
    
9,909
      
25,415
      
16,900
  
General and administrative expense
    
(13,735
)
    
(13,764
)
    
(14,525
)
Operating income/(loss)
  
$
(97,279
)
  
$
6,703
    
$
(8,987
)
 
                        
Interest income
  
$
24,893
    
$
21,798
    
$
14,559
  
Interest expense
    
(10,341
)
    
(9,229
)
    
(11,494
)
Other financial income/(expenses)
    
(3,416
)
    
1,020
      
693
  
Profit/(loss) for the year
  
$
(86,143
)
  
$
20,293
    
$
(5,228
)

Statement of Comprehensive Income

(Dollars in thousands)
  
Jan. 1 - Dec. 31,
    
Jan. 1 - Dec. 31,
    
Jan. 1 - Dec. 31,
  
 
  
2018
    
2017
    
2016
  
Profit/(loss) for the year
  
$
(86,143
)
  
$
20,293
    
$
(5,228
)
Other comprehensive income/(loss):
                        
Items that will not be reclassified subsequently to profit or loss:
    
-
      
-
      
-
  
Items that may be reclassified subsequently to profit or loss:
    
-
      
-
      
-
  
Total comprehensive income/(loss) for the period
  
$
(86,143
)
  
$
20,293
    
$
(5,228
)
 
                        
Attributable to the owners
  
$
(86,143
)
  
$
20,293
    
$
(5,228
)

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.



CASH FLOW

(Dollars in thousands)
  
Jan. 1 - Dec. 31,
    
Jan. 1 - Dec. 31,
    
Jan. 1 - Dec. 31,
  
 
  
2018
    
2017
    
2016
  
 
                  
Cash Flows from Operating Activities:
                  
Profit/(loss) for the year
  
$
(86,143
)
  
$
20,293
    
$
(5,228
)
Items included in net income not affecting cash flows:
                        
Amortization
    
4,733
      
4,170
      
4,982
  
Impairment charge
    
93,452
      
4,948
      
18,132
  
Compensation related to options and restricted stock
    
663
      
4,948
      
7,365
  
(Gain)/loss purchase convertible bond
    
3,589
      
(1,035
)
    
-
  
Changes in operating assets and liabilities:
                        
Accounts receivable and prepaid expenses
    
(125
)
    
4,305
      
(4,148
)
Accounts payable and accrued expenses
    
2,279
      
(291
)
    
(148
)
Amounts due to related parties
    
(72,365
)
    
11,782
      
122,401
  
Net cash (used in)/provided by operating activities
  
$
(53,917
)
  
$
49,119
    
$
143,357
  
 
                        
Cash flows from Investing Activities
                        
Investments in subsidiaries
  
$
-
    
$
-
    
$
(1,022
)
Loan to subsidiaries
    
58,990
      
82,814
      
(63,985
)
Investment in vessels under construction
    
(21,263
)
    
(86,004
)
    
(32,219
)
Net cash provided by/(used in) investing activities
  
$
37,727
    
$
(3,191
)
  
$
(97,227
)
 
                        
Cash flows from Financing Activities
                        
Cash dividends paid
    
(11,487
)
    
(23,328
)
    
(66,365
)
Purchase of treasury shares
    
(5,026
)
    
-
      
(2,031
)
Issuance of convertible bonds
    
38,945
      
-
      
-
  
Purchase of convertible bonds
    
-
      
(17,104
)
    
(25,334
)
Net cash provided by/(used in) financing activities
  
$
22,432
    
$
(40,431
)
  
$
(93,731
)
 
                        
Net increase/(decrease) in cash and cash equivalents
  
$
6,242
    
$
5,497
    
$
(47,602
)
Cash and cash equivalents at beginning of period
    
11,540
      
6,043
      
53,645
  
Cash and cash equivalents at end of period
  
$
17,783
    
$
11,540
    
$
6,043
  

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.
 




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:
 
Profit/(Loss) Reconciliation
(Dollars in thousands)
  
Jan. 1 - Dec. 31,
    
Jan. 1 - Dec. 31,
    
Jan. 1 - Dec. 31,
  
 
  
2018
    
2017
    
2016
  
 
                  
Profit/(loss) of the parent company only under cost method off accounting
  
$
(86,143
)
  
$
20,293
    
$
(5,228
)
Additional profit/(loss) if subsidiaries had been accounted for using equity method of accounting as opposed to cost method of accounting
    
39,014
      
(13,664
)
    
14,467
  
Profit/(loss) of the parent company only under equity method of accounting
  
$
(47,128
)
  
$
6,628
    
$
9,239
  
 
Equity Reconciliation
(Dollars in thousands)
  
December 31,
    
December 31,
  
 
  
2018
    
2017
  
Equity of the parent company only under cost method of accounting
  
$
939,154
    
$
1,037,838
  
Additional profit if subsidiaries had been accounted for using equity method of accounting as opposed to cost method of accounting
    
22,762
      
(16,253
)
Equity of the parent company only under equity method of accounting
  
$
961,915
    
$
1,021,586
  

Dividends from subsidiaries are recognized when they are authorized. During the year ended December 31, 2018, the parent company recorded dividend income from its subsidiaries of $ 9,500 thousand. 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, 2018, 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.