Vessels

9 Months Ended

Sep. 30, 2023

Note 5 – Vessels

The carrying values of the vessels may not represent their fair market value at any point in time since the market prices of second-hand vessels tend to fluctuate with changes in charter rates and the cost of constructing new vessels. Historically, both charter rates and vessel values have been cyclical. The carrying amounts of vessels held and used by us are reviewed for potential impairment or reversal of prior impairment charges whenever events or changes in circumstances indicate that the carrying amount of a particular vessel may not accurately reflect the recoverable amount of a particular vessel.

Vessels

Cost of Vessels
$ in thousands
At January 1, 2023	1,997,196
Transferred from vessels upgrades	128,791
Retirement ¹	(9,040	)
At September 30, 2023	2,116,946

Depreciation and amortization
$ in thousands
At January 1, 2023	735,198
Depreciation and amortization²	78,897
Retirement ¹	(9,040	)
At September 30, 2023	805,055

Carrying Amount
$ in thousands
At January 1, 2023			1,261,998
At September 30, 2023			1,311,892

¹Relates to completed depreciation of drydocking for DHT Bronco, DHT Colt, DHT Mustang, DHT Scandinavia and DHT Stallion.

²Relates solely to depreciation of vessels, drydocking, and EGCS. Depreciation of office leases and other property, plant, and equipment represents an additional $1,530 thousand, which combined with the depreciation of vessels, drydocking, and EGCS comprises $80,427 thousand in depreciation and amortization.

Advances for vessel and vessel upgrades

Cost of advances for vessel and vessel upgrades relates to prepaid drydocking.

Cost of advances of vessel and vessel upgrades
$ in thousands
At January 1, 2023	4,583
Additions	124,223
Transferred to vessels	(128,791	)
At September 30, 2023	15