Double Hull Tankers, Inc. Sets Dividend Policy to a Fixed Annual Amount of $1.00 Per Share.ST. HELIER, JERSEY, Channel Islands -- Double Hull A double hull is a ship hull design and construction method where the bottom and sides of the ship have two complete layers of watertight hull surface: one outer layer forming the normal hull of the ship, and a second inner hull which is somewhat further into the ship, perhaps a Tankers, Inc. ("DHT (Distributed Hash Table) A method for storing hash tables in geographically distributed locations in order to provide a failsafe lookup mechanism for distributed computing. ") (NYSE NYSE See: New York Stock Exchange :DHT) today announced that its Board of Directors has set a dividend policy to provide the shareholders with a fixed quarterly dividend of $0.25 per common share commencing with the first dividend payment attributable to the 2008 fiscal year. This dividend policy is intended to provide shareholders with a stable and visible distribution and also position the Company to use its incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. cash flow to fund future growth opportunities. In reference to the recent acquisition of two suezmax tankers chartered to Overseas Shipholding Group Overseas Shipholding Group, Inc. (OSG) is the second largest oil tanker company in the world. OSG has offices in Athens, London, Manila, Newcastle, New York and Singapore with more than 3200 sea and shore-based employees. ("OSG OSG Open Scene Graph OSG Open Science Grid OSG Office of the Secretary-General (United Nations) OSG Open Systems Group OSG Office of the Surgeon General (HHS - PHS) ") on long term bare boat charters, the Company believes the fundamentals for the tanker market will remain strong and allow for additional growth opportunities. The present spot market in which the vessels are operating is substantially higher than the base charter hire, and serves the basis for the vessels to earn significant additional hire and generate significant cash flow over and above the base hire under the profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of arrangements the Company has with OSG. The dividend policy allows for a dividend amount that is consistent with the Company's business model of having its vessels on long term charters with financially strong customers. The long term strategy of the Company remains to increase shareholder value and provide stable and predictable dividend payments. The Board of Directors of DHT retains the discretion to review and amend the Company's dividend policy and declare quarterly dividends that deviate from the above quarterly estimated dividend of $0.25 per common share, taking into consideration legal restrictions, covenants under the Company's credit agreement and changes in the Company's operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. from various market conditions. Forward Looking Statements This press release contains assumptions, expectations, projections, intentions and beliefs about future events, in particular regarding daily charter rates, vessel utilization, the future number of newbuildings New Buildings (officially written as Newbuildings) is a large village in County Londonderry, Northern Ireland. It lies about 1 km (0.6 mi) from the shores of the River Foyle and 5 km (3 mi) south of the city of Derry/Londonderry. , oil prices and seasonal fluctuations in vessel supply and demand. When used in this document, words such as "believe," "intend," "anticipate," "estimate," "project," "forecast," "plan," "potential," "will," "may," "should," and "expect" and similar expressions are intended to identify forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. but are not the exclusive means of identifying such statements. These statements are intended as "forward-looking statements." All statements in this document that are not statements of historical fact are forward-looking statements. The forward-looking statements included in this press release reflect DHT's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. We caution that assumptions, expectations, projections, intentions and beliefs about future events may and often do vary from actual results and the differences can be material. The reasons for this include the risks, uncertainties and factors described under the section of our latest annual report on Form 20-F entitled "Risk Factors," a copy of which is available on the SEC's website at www.sec.gov. These include the risk that DHT may not be able to pay dividends; the highly cyclical nature of the tanker industry; global demand for oil and oil products; the number of newbuilding deliveries and the scrapping rate of older vessels; the risks associated with acquiring additional vessels; changes in trading patterns Trading pattern Long-range direction of a security or commodity futures price, charted by drawing one line connecting the highest prices the security has reached and another line connecting the lowest prices at which the security has traded over the same period. for particular commodities significantly impacting overall tonnage requirements; risks related to terrorist attacks and international hostilities; expectations about the availability of insurance; our ability to repay our credit facility or obtain additional financing; our ability to find replacement charters for our vessels when their current charters expire; compliance costs with environmental laws and regulations; risks incident to vessel operation, including discharge of pollutants pollutants see environmental pollution. ; and unanticipated changes in laws and regulations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements included in this press release. DHT does not intend, and does not assume any obligation, to update these forward-looking statements. |
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