(RTTNews) - Tuesday, DHT Maritime, Inc. (DHT: News ) said its third quarter profit dropped sharply from last year, essentially on lower shipping revenue and higher vessel expenses. The company suspended its third-quarter dividend, stating that it needs to strengthen its balance sheet.

DHT Maritime's third-quarter profit dropped to $1.08 million or $0.02 per share from $12.31 million or $0.31 per share in the year-ago period, mainly due to reduced worldwide demand for oil, lowering the transportation requirements in the tanker sector.

Net income adjusted for non-cash financial items related to interest rate swaps was $3.6 million or $0.07 per share. Analysts polled by Thomson Reuters expected earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total shipping revenues for the third-quarter declined to $22.67 million from $31.00 million in the prior-year period due to unfavorable charter rates and phasing out of older, single-hull vessels. Analysts expected revenue of $22.66 million for the quarter.

Segment-wise, DHT Maritime earned $22.1 million in base charter hire and $0.6 million in additional hire under the company's profit sharing arrangements with OSG3, the charterer of DHT's vessels.
DHT's vessel expenses, including insurance costs, increased to $7.08 million from $5.71 million due to new technical management contracts. Total operating expenses increased to $14.80 million from $13.70 million in the prior year quarter.

For the nine-month period, net income declined to $12.95 million or $0.28 per share from $30.28 million or $0.87 per share a year ago. Revenue for the period declined to $78.69 million from $83.73 million a year ago.

Looking forward, the company expects the growth demand for transportation to remain flat and OPEC production growth to remain limited with the persistent high crude oil inventories.

DHT is currently trading at $3.8, down $0.20 or 4.91% on the NYSE.

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by RTT Staff Writer

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