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Condensed Financial Information of DHT Holdings, Inc. (parent company only)
 12 Months Ended
Dec. 31, 2022
Condensed Financial Information of DHT Holdings, Inc. (parent company only) [Abstract]  
Condensed Financial Information of DHT Holdings, Inc. (parent company only)
Note 17 – Condensed Financial Information of DHT Holdings, Inc. (parent company only)
 
SEC Rule 5-04 requires DHT to disclose condensed financial statements of the parent company when the restricted net assets of consolidated subsidiaries exceed 25% of consolidated net assets as of the end of the most recently completed fiscal year as prescribed in SEC Rule 12-04 Condensed Financial Information of Registrant. 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, 2022, 2021 and 2020. The restricted assets mainly relate to assets restricted by covenants in our secured credit agreements entered into by the vessel-owning subsidiaries.
 

Condensed Statement of Financial Position
 
(Dollars in thousands)
            
             
ASSETS
  
December 31,
    
December 31,
  
Current assets
  
2022
    
2021
  
Cash and cash equivalents
  
$
29,601
    
$
15,539
  
Accounts receivable and prepaid expenses
    
749
      
74
  
Amounts due from related parties
    
89,980
      
90,190
  
Total current assets
  
$
120,330
    
$
105,803
  
                 
Investments in subsidiaries
  
$
375,683
    
$
392,489
  
Loan to subsidiaries
    
377,131
      
338,051
  
Investment in associate company
    
-
      
201
  
Total non-current assets
  
$
752,814
    
$
730,741
  
                 
Total assets
  
$
873,144
    
$
836,545
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
                
Accounts payable and accrued expenses
  
$
201
    
$
447
  
Total current liabilities
  
$
201
    
$
447
  
                 
Stockholders’ equity
                
Stock
  
$
1,627
    
$
1,661
  
Paid-in additional capital
    
1,196,239
      
1,217,244
  
Accumulated deficit
    
(324,923
)
    
(382,808
)
Total stockholders’ equity
  
$
872,943
    
$
836,097
  
                 
Total liabilities and stockholders’ equity
  
$
873,144
    
$
836,545
  


Condensed Income Statement
 
(Dollars in thousands)
  Year ended
    Year ended     Year ended  
    December 31,
    December 31,
    December 31,  

 
2022
    
2021
    
2020
  
                   
Revenues   $ -     $ 980     $ -  
Impairment charge
    
(1,234
)
    
(35,149
)
    
(35,278
)
Dividend income
    
77,820
      
70,746
      
17,081
  
General and administrative expense
    
(17,704
)
    
(17,742
)
    
(19,148
)
Operating income/(loss)
  
$
58,881
    
$
18,835
    
$
(37,345
)
                         
Interest income
  
$
18,823
    
$
17,233
    
$
21,434
  
Interest expense
    
-
      
-
      
(6,766
)
Other financial (expense)/income
    
(141
)
    
26
      
245
  
Profit/(loss) for the year
  
$
77,563
    
$
36,095
    
$
(22,433
)

Condensed Statement of Comprehensive Income

(Dollars in thousands)
  Year ended
    Year ended     Year ended  
    December 31,
    December 31,
    December 31,
 

 
2022
    
2021
    
2020
  
Profit/(loss) for the year
  
$
77,563
    
$
36,095
    
$
(22,433
)
Total comprehensive income/(loss) for the period
  
$
77,563
    
$
36,095
    
$
(22,433
)
Attributable to the owners
  
$
77,563
    
$
36,095
    
$
(22,433
)

In the condensed financial statements of the 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.
 

Condensed Statement of Cash Flow

(Dollars in thousands)
   Year ended
    Year ended     Year ended
 
    December 31,     December 31,     December 31,
 

 
2022
    
2021
    
2020
  
                   
Cash flows from operating activities
                  
Profit/(loss) for the year
  
$
77,563
    
$
36,095
    
$
(22,433
)
Items included in net income not affecting cash flows:
                        
Amortization
    
-
      
-
      
3,250
  
Impairment charge
    
1,234
      
35,149
      
35,278
  
Compensation related to options and restricted stock
    
3,013
      
3,203
      
4,204
  
Changes in operating assets and liabilities:
                        
Accounts receivable and prepaid expenses
    
(675
)
    
1,604
      
(805
)
Accounts payable and accrued expenses
    
(246
)
    
277
      
(2,246
)
Amounts due to related parties
    
(69,740
)
    
(6,834
)
    
(43,313
)
Net cash provided by/(used in) operating activities
  
$
11,150
    
$
69,494
    
$
(26,063
)
                         
Cash flows from investing activities
                        
Investments in subsidiaries
   $ (395 )   $ -     $ -  
Loan to subsidiaries
  
$
47,744
    
$
(5,004
)
  
$
223,550
  
Net cash provided by/(used in) investing activities  
$
47,349
    
$
(5,004
)
  
$
223,550
  
                         
Cash flows from financing activities
                        
Cash dividends paid
  
$
(19,679
)
  
$
(22,083
)
  
$
(214,669
)
Purchase of treasury shares
    
(24,758
)
    
(32,178
)
    
-
  
Net cash used in financing activities  
$
(44,436
)
  
$
(54,261
)
  
$
(214,669
)
                         
Net increase/(decrease) in cash and cash equivalents  
$
14,062
    
$
10,229
    
$
(17,182
)
Cash and cash equivalents at beginning of period
    
15,539
      
5,310
      
22,492
  
Cash and cash equivalents at end of period
  
$
29,601
    
$
15,539
    
$
5,310
  

The condensed financial information of the parent company 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
 
    Year ended
    Year ended
    Year ended  
    December 31,     December 31,
     December 31,
 
(Dollars in thousands)
  
2022
    
2021
    
2020
  
                   
Profit/(loss) of the parent company only under cost method of accounting
  
$
77,563
    
$
36,095
    
$
(22,433
)
Additional profit/(loss) if subsidiaries had been accounted for using equity method of accounting as opposed to cost method of accounting
    
(16,107
)
    
(47,776
)
    
288,653
  
Profit/(loss) of the parent company only under equity method of accounting
  
$
61,456
    
$
(11,681
)
  
$
266,221
  

Equity reconciliation

    December 31,     December 31,     December 31,  
(Dollars in thousands)
  
2022
    
2021
    
2020
  
                   
Equity of the parent company only under cost method of accounting
  
$
872,943
    
$
836,097
     $ 850,336  
Additional profit if subsidiaries had been accounted for using equity method of accounting as opposed to cost method of accounting
    
294,501
      
310,608
       358,384  
Equity of the parent company only under equity method of accounting
  
$
1,167,444
    
$
1,146,706
     $ 1,208,720  

Dividends from subsidiaries are recognized when they are authorized. During the year ended December 31, 2022, the parent company recorded dividend income from its subsidiaries of $72,700 thousand. During the year ended December 31, 2021, the parent company recorded dividend income from its subsidiaries of $69,500 thousand. During the year ended December 31, 2020, the parent company recorded dividend income from its subsidiaries of $15,000 thousand.
 
During the year ended December 31, 2022, 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.