DHT Holdings Inc, the Bermudian-based crude oil tanker company, has reported a net loss in fiscal year 2021 of $11.5 million.

That compares with net income of $266.3 million in 2020.

The difference between the two periods mainly reflects lower tanker rates in 2021, the company said.

DHT reported shipping revenues for 2021 of $295.9 million compared with $691 million in 2020. The decrease includes $366.8 million attributable to lower tanker rates and $28.3 million attributable to a decrease in total revenue days as a result of scheduled off hire in connection with special surveys and scrubber installations.

Net financial expenses for 2021 were $11.3 million, compared with $46.4 million in 2020.

The decrease was due to a non-cash gain of $12.5 million related to interest-rate derivatives in 2021 compared with a non-cash loss of $8.1 million in 2020 and $12.7 million decrease in interest expenses due to reduced outstanding debt and a reduction in three-month Libor in 2021.

DHT reported a net loss in the fourth quarter of $2.9 million, compared with net income in the fourth quarter of 2020 of $7.6 million. The decrease was mainly due to lower tanker rates.

The company reported shipping revenues for the fourth quarter of $83.8 million compared with shipping revenues of $91 million in the fourth quarter of 2020. The decrease includes $6.7 million attributable to lower tanker rates and $500,000 attributable to a decrease in total revenue days as a result of scheduled off hire.

As of December 31, the company’s cash balance was $60.7 million, compared with $68.6 million as of December 31, 2020.

The company said it took advantage of low freight markets in 2021 to dry dock 13 ships, equal to half its fleet.

Some of the dockings included installation of ballast water treatment systems and scrubbers, which marked the conclusion of its planned programme to retrofit scrubbers and have optimised the company’s available trading days for 2022, with only three vessels due for dry docks.

DHT said Covid-19 continues to create operational challenges related to its seafarers and the ability to change crews at regular intervals and at convenient locations.

There are still numerous restrictions affecting crew changes with strict transit and quarantine procedures and a limited number of geographical options to execute crew changes.

DHT said all its seafarers are fully vaccinated at the time of joining a vessel, as is the majority of its on-board sailing crew.

The company said its market outlook “remains cautiously optimistic” based on three key forces at play.

“Firstly, oil consumption, and hence demand, is recovering post the 2020 virus outbreak although hitting speed bumps with new outbreaks.

“Secondly, refiners are consuming from oil inventories which has lowered the inventory to levels targeted by leading oil producers.

“Thirdly, Opec+ is gradually increasing supply of oil in response to the two preceding points, although with actual additional barrels being shy of announced increased quotas.

“In sum, this should slowly increase demand for transportation.”

Thus far in the first quarter of 2022, the company said, 69 per cent of the available very large crude carrier days have been booked at an average rate of $19,900 per day on a discharge-to-discharge basis (not including any potential profit splits on time charters).