<\/p>\n
Hafnia Limited Announces Financial Results for the Three and Nine Months Ended September 30, 2024<\/b><\/p>\n
SINGAPORE–(BUSINESS WIRE<\/a>)– \nThe full report can be found in the Investor Relations section of Hafnia\u2019s website: https:\/\/investor.hafniabw.com\/financials\/quarterly-results\/default.aspx<\/a><\/p>\n Highlights and Recent Activity<\/b><\/p>\n Third Quarter 2024<\/b><\/p>\n Year-to-Date September 30, 2024<\/b><\/p>\n \nMikael Skov, CEO of Hafnia, commented:<\/p>\n After a strong second quarter, the product tanker market softened seasonally in the third quarter, due to refinery maintenance, lower refinery margins, and increased cannibalization from the crude sector.<\/i><\/p>\n Despite these challenges, Hafnia has continued to perform well, delivering solid earnings. I am pleased to announce that we achieved a net profit of USD 215.6 million<\/b> in Q3, bringing our year-to-date net profit to USD 694.4 million<\/b> \u2013 the best nine-month performance in our company\u2019s history.<\/i><\/p>\n Our adjacent fee-generating business segments have also performed strongly, contributing USD 7.8 million<\/b> to our overall results. At the end of the third quarter, our net asset value (NAV)1<\/sup> reached approximately USD 4.6 billion<\/b>, reflecting the increased market value of our vessels and strong operating cashflows, which equates to an NAV per share of about USD 9.07 (NOK 95.24).<\/b><\/i><\/p>\n Our net Loan-to-Value (LTV) ratio decreased to 19.1%<\/b> at the end of the quarter. This allowed us to reach a new milestone in our dividend policy, and we are pleased to announce a dividend payout ratio of 90% for the quarter. For the quarter, we will distribute USD 194.1 million<\/b> or USD 0.3790<\/b> per share in dividends.<\/i><\/p>\n On October 1, 2024, we successfully completed the redomiciliation of Hafnia Limited from Bermuda to Singapore. As Hafnia Limited is a Singapore tax resident post-redomiciliation, no Singapore withholding taxes will be imposed on dividend distributions to all shareholders. There is, therefore, no change in the dividend treatment resulting from the redomiciliation.<\/i><\/p>\n Hafnia\u2019s Board has authorized management to initiate a share buyback program of up to USD 100 million<\/b>, from December 2, 2024, to January 27, 2025, subject to market conditions. Authorization will be reviewed on a quarterly basis. We will disclose the structure of the program and details of any buyback as it occurs. The amount utilized for this buyback program will be deducted before declaring dividends for Q4 2024. This ensures the combined total of dividends and share buybacks aligns to our payout ratio under our dividend policy, reflecting our dedication to shareholder value while also ensuring strategic flexibility.<\/i><\/p>\n While market conditions softened slightly due to competition from the crude sector, Q3 trade volumes and earnings remained above last year\u2019s levels, driven by strong global oil demand and increased tonne-miles from refinery dislocations. Looking ahead, seasonal strengthening in the crude sector, coupled with the technical challenges of transporting products on crude carriers, is expected to reduce this cannibalization. Additionally, seasonal demand increases and geopolitical tensions will further support product demand and tonne-miles.<\/i><\/p>\n As of November 18, 2024, 71%<\/b> of the Q4 earning days are covered at an average of USD 24,004<\/b> per day, and 9%<\/b> is covered at USD 24,089<\/b> per day for 2025.<\/i><\/p>\n We continue to enhance our technological capabilities and are optimistic about our strategic investment in Complexio Foundational AI to advance data automation. Complexio\u2019s \u2018bottom-up\u2019 approach first ingests companies\u2019 unstructured and structured data and then, via its multi-modal framework – currently leveraging eight Large Language Models (LLMs) – maps this data into a comprehensive landscape.<\/i><\/p>\n With ongoing advancements in prediction and reasoning, this detailed understanding enables the automation of recurring processes such as chartering, ship clearance, finance management, and contract negotiation. These continuous R&D improvements, combined with expanding partnerships with industry leaders like Marfin, CTM, Sogemm, BW Epic Kosan, and Alassia Newships, reinforce Hafnia\u2019s position at the forefront of technological innovation.<\/i><\/p>\n Fleet<\/b><\/p>\n \nAt the end of the quarter, Hafnia\u2019s fleet consisted of 115<\/b> owned vessels1<\/sup> and 15<\/b> chartered-in vessels. The Group\u2019s total fleet includes 10 LR2s<\/b>, 34 LR1s<\/b> (including three bareboat-chartered in and four time-chartered in), 62 MRs<\/b> of which nine are IMO II (including two bareboat chartered in and 11 time-chartered in), and 24 Handy<\/b> vessels of which 18 are IMO II (including seven bareboat-chartered in).<\/p>\n \nThe average estimated broker value of the owned fleet1<\/sup> was USD 4,914 million<\/b>, of which the LR2 vessels had a broker value of USD 649 million2<\/sup><\/b>, the LR1 fleet had a broker value of USD 1,288 million2<\/sup><\/b>, the MR fleet had a broker value of USD 2,059 million3<\/sup><\/b> and the Handy vessels had a broker value of USD 918 million4<\/sup><\/b>. The unencumbered vessels had a broker value of USD 475 million5<\/sup><\/b>. The chartered-in fleet had a right-of-use asset book value of USD 19.5 million<\/b> with a corresponding lease liability of USD 22.3 million<\/b>.<\/p>\n Market Review & Outlook<\/b><\/p>\n \nIn the third quarter of 2024, the Clean Petroleum Products (CPP) trade remained robust, despite a 6%<\/b> drop in tonne-miles since Q2. High cargo volumes and tonne-miles remain at historical average highs, primarily driven by geopolitical tensions. These tensions have led to more vessels rerouting away from the Suez Canal toward the Cape of Good Hope.<\/p>\n \nGlobal oil demand also remained firm in the third quarter, driven by growth in advanced economies. According to the International Energy Agency (IEA), global oil demand increased by 1.1 million<\/b> barrels per day in the third quarter, driven by global gasoil deliveries, despite a contraction in overall Chinese demand. Furthermore, global oil demand for 2024 remains firm at an average of 102.8 million<\/b> barrels per day, an increase of 0.9 million<\/b> barrels from 2023. Despite steady demand, product tanker rates were under pressure in the last part of Q3, mainly due to increased competition from the crude sector. With a seasonally weak crude market, some crude tankers \u2013 despite high conversion costs \u2013 shifted to carrying refined products. During the quarter, Suezmax and VLCC tankers transported more diesel shipments from the Middle East to Europe, a trade typically handled by LR2s.<\/p>\n \nAs winter approaches, both crude and product markets are expected to strengthen seasonally. Technical challenges and reduced commercial incentives for using crude carriers to carry refined products limit cannibalization, as shown in recent daily loading data, and this drives forward tightness in supply versus demand for the clean products segments. For the first time in history, the product markets will experience a full winter period where seasonal increases in Atlantic demand, partly serviced by the Eastern hemisphere, will exclusively have to route via the Cape of Good Hope rather than Suez. Additionally, improving refinery margins and gradually increasing distances between refineries and end consumers support a strong outlook for earnings in the product sector.<\/p>\n \nOn the supply side, the orderbook-to-fleet ratio is approximately 20%<\/b> for deliveries through 2028 as of November 2024. However, a growing number of tankers over 20 years old are likely scrapping candidates. These older vessels, with lower utilization rates and frequent involvement in \u201cdark trades\u201d, effectively reduce available tonnage and increase demand for the existing fleet. Furthermore, LR2s comprise over 50%<\/b> of the new tonnage expected in the next few years, and historically, 70%<\/b> of LR2 capacity has been absorbed into the dirty petroleum products trade. This is further supported by aged Panamax, Aframax, and large crude tanker fleets where newbuild order books are limited compared to the clean segments. Applying 70% dirty products trading for LR2 newbuild capacity reduces the clean products book-to-fleet ratio to 13%<\/b>. As a result, the overall supply balance is expected to remain manageable in the coming years.<\/p>\n \nLooking ahead, the product tanker market outlook is positive. Demand is expected to remain strong, supported by longer transport distances and refinery dislocation. With winter\u2019s seasonal factors and reduced cannibalization from crude tankers, the market is set to benefit from a high-rate environment for product tankers. This will however be impacted if there is normalization of trade through the Red Sea, or further addition of new tonnage.<\/p>\n Key Figures<\/b><\/p>\n USD million<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q1 2024<\/b><\/p>\n<\/td>\n Q2 2024<\/b><\/p>\n<\/td>\n Q3 2024<\/b><\/p>\n<\/td>\n YTD 2024<\/b><\/p>\n<\/td>\n<\/tr>\n Income Statement<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOperating revenue (Hafnia vessels and TC vessels)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n521.8<\/p>\n<\/td>\n \n563.1<\/p>\n<\/td>\n \n497.9<\/p>\n<\/td>\n \n1,582.8<\/p>\n<\/td>\n<\/tr>\n \nProfit before tax<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n221.3<\/p>\n<\/td>\n \n260.8<\/p>\n<\/td>\n \n216.8<\/p>\n<\/td>\n \n698.9<\/p>\n<\/td>\n<\/tr>\n \nProfit for the period<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n219.6<\/p>\n<\/td>\n \n259.2<\/p>\n<\/td>\n \n215.6<\/p>\n<\/td>\n \n694.4<\/p>\n<\/td>\n<\/tr>\n \nFinancial items<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(18.9)<\/p>\n<\/td>\n \n(9.9)<\/p>\n<\/td>\n \n(6.3)<\/p>\n<\/td>\n \n(35.1)<\/p>\n<\/td>\n<\/tr>\n \nShare of profit from joint ventures<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.3<\/p>\n<\/td>\n \n8.5<\/p>\n<\/td>\n \n4.1<\/p>\n<\/td>\n \n19.9<\/p>\n<\/td>\n<\/tr>\n \nTCE income1<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n378.8<\/p>\n<\/td>\n \n417.4<\/p>\n<\/td>\n \n361.6<\/p>\n<\/td>\n \n1,157.7<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA1<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n287.1<\/p>\n<\/td>\n \n317.1<\/p>\n<\/td>\n \n257.0<\/p>\n<\/td>\n \n861.1<\/p>\n<\/td>\n<\/tr>\n Balance Sheet<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,897.0<\/p>\n<\/td>\n \n3,922.7<\/p>\n<\/td>\n \n3,828.9<\/p>\n<\/td>\n \n3,828.9<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,541.8<\/p>\n<\/td>\n \n1,486.2<\/p>\n<\/td>\n \n1,408.7<\/p>\n<\/td>\n \n1,408.7<\/p>\n<\/td>\n<\/tr>\n \nTotal equity<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,355.2<\/p>\n<\/td>\n \n2,436.5<\/p>\n<\/td>\n \n2,420.2<\/p>\n<\/td>\n \n2,420.2<\/p>\n<\/td>\n<\/tr>\n \nCash at bank and on hand2<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n128.9<\/p>\n<\/td>\n \n166.7<\/p>\n<\/td>\n \n197.1<\/p>\n<\/td>\n \n197.1<\/p>\n<\/td>\n<\/tr>\n Key financial figures<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nReturn on Equity (RoE) (p.a.)3<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n38.3%<\/p>\n<\/td>\n \n44.5%<\/p>\n<\/td>\n \n37.1%<\/p>\n<\/td>\n \n39.8%<\/p>\n<\/td>\n<\/tr>\n \nReturn on Invested Capital (p.a.)4<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n27.6%<\/p>\n<\/td>\n \n31.4%<\/p>\n<\/td>\n \n26.7%<\/p>\n<\/td>\n \n29.0%<\/p>\n<\/td>\n<\/tr>\n \nEquity ratio<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n60.4%<\/p>\n<\/td>\n \n62.1%<\/p>\n<\/td>\n \n63.2%<\/p>\n<\/td>\n \n63.2%<\/p>\n<\/td>\n<\/tr>\n \nNet loan-to-value (LTV) ratio5<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n24.2%<\/p>\n<\/td>\n \n21.3%<\/p>\n<\/td>\n \n19.1%<\/p>\n<\/td>\n \n19.1%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n For the 3 months ended 30 September 2024<\/b><\/p>\n<\/td>\n LR2<\/b><\/p>\n<\/td>\n LR1<\/b><\/p>\n<\/td>\n MR6<\/sup><\/span><\/b><\/p>\n<\/td>\n Handy7<\/sup><\/span><\/b><\/p>\n<\/td>\n Total<\/b><\/p>\n<\/td>\n<\/tr>\n \nVessels on water at the end of the period8<\/sup><\/p>\n<\/td>\n \n6<\/p>\n<\/td>\n \n28<\/p>\n<\/td>\n \n60<\/p>\n<\/td>\n \n24<\/p>\n<\/td>\n \n118<\/p>\n<\/td>\n<\/tr>\n \nTotal operating days9<\/sup><\/p>\n<\/td>\n \n506<\/p>\n<\/td>\n \n2,464<\/p>\n<\/td>\n \n5,603<\/p>\n<\/td>\n \n2,203<\/p>\n<\/td>\n \n10,776<\/p>\n<\/td>\n<\/tr>\n \nTotal calendar days (excluding TC-in)<\/p>\n<\/td>\n \n552<\/p>\n<\/td>\n \n2,163<\/p>\n<\/td>\n \n4,600<\/p>\n<\/td>\n \n2,208<\/p>\n<\/td>\n \n9,523<\/p>\n<\/td>\n<\/tr>\n \nTCE (USD per operating day)1<\/sup><\/p>\n<\/td>\n \n42,829<\/p>\n<\/td>\n \n37,564<\/p>\n<\/td>\n \n31,928<\/p>\n<\/td>\n \n31,047<\/p>\n<\/td>\n \n33,549<\/p>\n<\/td>\n<\/tr>\n \nSpot TCE (USD per operating day)1<\/sup><\/p>\n<\/td>\n \n42,829<\/p>\n<\/td>\n \n37,689<\/p>\n<\/td>\n \n32,896<\/p>\n<\/td>\n \n31,722<\/p>\n<\/td>\n \n34,410<\/p>\n<\/td>\n<\/tr>\n \nTC-out TCE (USD per operating day)1<\/sup><\/p>\n<\/td>\n \n\u2013<\/p>\n<\/td>\n \n27,401<\/p>\n<\/td>\n \n27,524<\/p>\n<\/td>\n \n25,307<\/p>\n<\/td>\n \n27,117<\/p>\n<\/td>\n<\/tr>\n \nOPEX (USD per calendar day)10<\/sup><\/p>\n<\/td>\n \n8,112<\/p>\n<\/td>\n \n8,353<\/p>\n<\/td>\n \n8,044<\/p>\n<\/td>\n \n8,142<\/p>\n<\/td>\n \n8,141<\/p>\n<\/td>\n<\/tr>\n \nG&A (USD per operating day)11<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,386<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Declaration of Dividend<\/b><\/p>\n \nHafnia will pay a quarterly dividend of USD 0.3790 per share. The record date will be December 6, 2024.<\/p>\n \nFor shares registered in the Euronext VPS Oslo Stock Exchange, dividends will be distributed in NOK with an ex-dividend date of December 5, 2024<\/b> and payment date on, or about, December 17, 2024.<\/p>\n \nFor shares registered in the Depository Trust Company, the ex-dividend date will be December 6, 2024<\/b> with a payment date on, or about, December 12, 2024.<\/p>\n \nPlease see our separate announcement for additional details regarding the Company\u2019s dividend.<\/p>\n Webcast and Conference Call<\/b><\/p>\n \nHafnia will host a conference call for investors and financial analysts at 9:30 pm SGT\/2:30 pm CET\/8:30 am EST on November 27, 2024.<\/p>\n The details are as follows:<\/b><\/p>\n Date:<\/b> Wednesday, November 27, 2024<\/p>\n
\nHafnia Limited (\u201cHafnia\u201d, the \u201cCompany\u201d or \u201cwe\u201d, OSE ticker code: \u201cHAFNI\u201d, NYSE ticker code: \u201cHAFN\u201d), a leading product tanker company with a diversified and modern fleet of over 130 vessels, today announced results for the three and nine months ended September 30, 2024.<\/p>\n\n
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\n 1<\/sup> Based on weighted average number of shares as at 30 September 2024<\/td>\n<\/tr>\n \n 2<\/sup> Excluding a one-off item amounting to USD 7.4 million in Q3 2023<\/td>\n<\/tr>\n \n 3<\/sup> See Non-IFRS Measures section below<\/td>\n<\/tr>\n \n 4<\/sup> NAV is calculated using the fair value of Hafnia\u2019s owned vessels.<\/td>\n<\/tr>\n<\/table>\n \n
\n 1<\/sup> NAV is calculated using the fair value of Hafnia\u2019s owned vessels.<\/i><\/td>\n<\/tr>\n<\/table>\n \n
\n 1 <\/sup>Including bareboat chartered in vessels; six LR1s and four LR2s owned through 50% ownership in the Vista Shipping Joint Venture and two MRs owned through 50% ownership in the H&A Shipping Joint Venture; and excluding Hafnia Pegasus which was classified as an asset held for sale<\/td>\n<\/tr>\n \n 2 <\/sup>Including USD 353 million relating to Hafnia\u2019s 50% share of six LR1s and four LR2s owned through 50% ownership in the Vista Shipping Joint Venture<\/td>\n<\/tr>\n \n 3 <\/sup>Including USD 54 million relating to Hafnia\u2019s 50% share of two MRs owned through 50% ownership in the H&A Shipping Joint Venture; and IMO II MR vessels; and excluding Hafnia Pegasus which was classified as an asset held for sale<\/td>\n<\/tr>\n \n 4 <\/sup>Including IMO II Handy vessels<\/td>\n<\/tr>\n \n 5 <\/sup>Excluding Hafnia Pegasus which was classified as an asset held for sale<\/td>\n<\/tr>\n<\/table>\n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n 1 <\/sup>See Non-IFRS Measures section below.<\/td>\n<\/tr>\n \n 2<\/sup> Excluding cash retained in the commercial pools.<\/td>\n<\/tr>\n \n 3<\/sup> Annualised<\/td>\n<\/tr>\n \n 4<\/sup> ROIC is calculated using annualised EBIT less tax.<\/td>\n<\/tr>\n \n 5 <\/sup>Net loan-to-value is calculated as vessel bank and finance lease debt (excluding debt for vessels sold but pending legal completion), debt from the pool borrowing base facilities less cash at bank and on hand, divided by broker vessel values (100% owned vessels and asset held for sale).<\/td>\n<\/tr>\n \n 6 <\/sup>Inclusive of nine IMO II MR vessels.<\/td>\n<\/tr>\n \n 7<\/sup> Inclusive of 18 IMO II Handy vessels.<\/td>\n<\/tr>\n \n 8 <\/sup>Excluding six LR1s and four LR2s owned through 50% ownership in the Vista Shipping Joint Venture, two MRs owned through 50% ownership in the H&A Shipping Joint Venture and Hafnia Pegasus which was classified as an asset held for sale in the statement of financial position.<\/td>\n<\/tr>\n \n 9<\/sup> Total operating days include operating days for vessels that are time chartered-in. Operating days are defined as the total number of days (including waiting time) in a period during which each vessel is owned, partly owned, operated under a bareboat arrangement (including sale and lease-back) or time chartered-in, net of technical off-hire days. Total operating days stated in the quarterly financial information include operating days for TC Vessels.<\/td>\n<\/tr>\n \n 10 <\/sup>OPEX includes vessel running costs and technical management fees.<\/td>\n<\/tr>\n \n 11<\/sup> G&A includes all expenses and is adjusted for cost incurred in managing external vessels.<\/td>\n<\/tr>\n<\/table>\n