<\/p>\n
Hafnia Limited Announces Financial Results for the Three and Twelve Months Ended December 31, 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.hafnia.com\/financials\/quarterly-results\/default.aspx<\/a><\/p>\n Highlights and Recent Activity<\/b><\/p>\n Fourth Quarter 2024<\/b><\/p>\n Full Year 2024<\/b><\/p>\n 1<\/sup> Based on weighted average number of shares as at 31 December 2024.<\/p>\n<\/td>\n<\/tr>\n 2<\/sup> See Non-IFRS Measures section below.<\/p>\n<\/td>\n<\/tr>\n 3<\/sup> NAV is calculated using the fair value of Hafnia\u2019s owned vessels (including joint venture vessels).<\/p>\n<\/td>\n<\/tr>\n 4<\/sup> Excluding a one-off item amounting to USD 7.4 million in Q3 2023.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nMikael Skov, CEO of Hafnia, commented:<\/p>\n Following a strong first nine months in 2024, the product tanker market softened in the fourth quarter, impacted by crude sector cannibalization of the product tanker space and shorter voyages, though partly offset by high daily loadings.<\/i><\/p>\n While the market dynamics shifted in the fourth quarter, Hafnia demonstrated resilience in navigating the market, delivering a net profit of USD 79.6 million<\/b> in Q4 2024. This brings our full-year net profit to USD 774.0 million<\/b>, marking another year of strong performance.<\/i><\/p>\n Our adjacent fee-generating business segments continued to perform well, recording full-year revenue of USD 35.2 million<\/b>, and our net asset value (NAV) 1<\/sup> at year end stood at approximately USD 3.8 billion<\/b> (USD 7.63<\/b> per share \/~NOK 86.34<\/b>).<\/i><\/p>\n The dislocation between our share price and NAV in late 2024 presented an opportunistic moment for share buybacks. Completed on January 24, 2025, we repurchased ~2.8%<\/b> of the outstanding shares (14,382,255<\/b> shares) at approximately 70%<\/b> of NAV, for an average of USD 5.33<\/b> per share and total consideration of USD 76.7 million<\/b>. Capital utilized for buybacks in December has been deducted from the total payout before declaring Q4 dividends, ensuring combined shareholder returns align with our payout ratio policy.<\/i><\/p>\n At the end of Q4, our net Loan-to-Value (LTV) ratio was <\/i>23.2%<\/i><\/b>, increasing from Q3 mainly due to a decline in the market value of our vessels. Given that, I am pleased to announce a payout ratio of <\/i>80%<\/i><\/b> for the quarter, including <\/i>USD 49.1 million<\/i><\/b> utilized in share buybacks in December. As a result, we will distribute a total of <\/i>USD 14.6 million<\/i><\/b> or <\/i>USD 0.0294<\/i><\/b> per share in dividends.<\/i><\/p>\n Including share buybacks, our full-year payout reached USD 640.8 million<\/b>, representing a payout ratio of 82.8%.<\/b><\/i><\/p>\n While the fourth quarter saw rate pressures from increased crude tanker cannibalization, trade volumes and tonne-miles remain at elevated levels, supported by strong global demand. Tanker rates also strengthened with the seasonal winter market. Looking ahead to 2025, while near-term market dynamics are fluid, the fundamental drivers of our business remain solid. The evolving nature of sanctions, tariffs and developments in the Red Sea will continue to influence market dynamics. Importantly, long-term supply fundamentals on the tanker side remain firm, with the current orderbook of approximately 22% offset by an ageing global product tanker fleet and the increasing number of vessels subject to sanctions involving Russia, Iran and Venezuela. Furthermore, LR2s comprise over 50% of the new tonnage expected in the next few years, and historically, 70% of LR2 capacity has been absorbed into the dirty petroleum products trade.<\/i><\/p>\n As of February 13, 2025, <\/i>67%<\/i><\/b> of the Q1 earning days are covered at an average of <\/i>USD 23,989<\/i><\/b> per day, and <\/i>25%<\/i><\/b> is covered at <\/i>USD 24,062<\/i><\/b> per day for 2025.<\/i><\/p>\n Reflecting our fleet renewal strategy and commitment to a sustainable maritime future, we have in January welcomed Ecomar Gascogne<\/b>, the first of four 49,800 dwt dual-fuel Methanol Chemical IMO-II MRs, ordered through our joint venture with Socatra of France. Two additional vessels are scheduled for delivery later this year, with the fourth in 2026 \u2014 all time-chartered to TotalEnergies for a multi-year period. These vessels, running on both conventional fuel and methanol, mark a key step in our decarbonization journey.<\/i><\/p>\n In addition, I am proud to announce our recent joint arrangement with Cargill to launch Seascale Energy. This aims to transform marine fuel procurement services by delivering customers worldwide with cost efficiencies, transparency and access to sustainable fuel innovations.<\/i><\/p>\n As we conclude 2024 and look forward to 2025, I wish to express my sincere gratitude to the Hafnia team, both onshore and at sea, as well as our valued partners for the excellent results we have achieved together. We will remain focused on making strategic investments in technology and innovation while leveraging our extensive fleet capabilities to drive sustainable growth and solidify our position as a global leader in the product and chemical tanker market.<\/i><\/p>\n 1<\/sup> NAV is calculated using the fair value of Hafnia\u2019s owned vessels (including joint venture vessels).<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Fleet<\/b><\/p>\n \nAt the end of the quarter, Hafnia\u2019s fleet consisted of 115<\/b> owned vessels1<\/sup> and 10<\/b> chartered-in vessels. The Group\u2019s total fleet includes 10 LR2s<\/b>, 33 LR1s<\/b> (including three bareboat-chartered in and three time-chartered in), 58 MRs<\/b> of which nine are IMO II (including two bareboat-chartered in and seven 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 4,289 million<\/b>, of which the LR2 vessels had a broker value of USD 609 million2<\/sup><\/b>, the LR1 fleet had a broker value of USD 1,187 million<\/b>2<\/sup>, the MR fleet had a broker value of USD 1,721 million3<\/sup><\/b>and the Handy vessels had a broker value of USD 772 million<\/b>4<\/sup>. The unencumbered vessels had a broker value of USD 402 million<\/b>. The chartered-in fleet had a right-of-use asset book value of USD 18.7 million<\/b> with a corresponding lease liability of USD 20.4 million<\/b>.<\/p>\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<\/p>\n<\/td>\n<\/tr>\n 2 <\/sup>Including USD 336 million relating to Hafnia\u2019s 50% share of six LR1s and four LR2s owned through 50% ownership in the Vista Shipping Joint Venture<\/p>\n<\/td>\n<\/tr>\n 3 <\/sup>Including USD 48 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<\/p>\n<\/td>\n<\/tr>\n 4 <\/sup>Including IMO II Handy vessels<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Market Review & Outlook<\/b><\/p>\n \nThroughout the first nine months of 2024, the product tanker market sustained an extended period of high earnings, driven by strong cargo volumes and tonne-miles, as vessels rerouted from the Suez Canal to the Cape of Good Hope. In the fourth quarter, tanker rates came under pressure due to the increased cannibalization from the crude sector. A key driver of the market, daily loadings of Clean Petroleum Products (CPP), dropped in the beginning of Q4, mainly due to refinery maintenance and market inefficiencies. However, since December 2024 and in the beginning of 2025, CPP loadings on Handy to LR2 tankers have increased significantly. This was largely driven by reduced crude tanker cannibalization and higher export volumes from the US Gulf.<\/p>\n \nTon-days for product tankers have also recovered after the dip in early Q4, while earnings have improved less profoundly. This is mainly due to subdued market sentiment, limited cross-hemisphere trading and shorter voyage lengths. Laden voyage lengths dropped by approximately 12%, mainly as a result of increased refinery output from the US Gulf, which has largely replaced Middle East output for European demand.<\/p>\n \nGlobal oil demand remained robust and rose seasonally in the fourth quarter, driven by a winter uptick in the Northern Hemisphere. According to the International Energy Agency (IEA), global oil demand increased by 1.4 million barrels per day in the fourth quarter, as a result of a seasonal uptick, lower fuel prices and increased US petrochemical activities. For the full year 2024, global oil demand has increased by 0.87 million barrels per day from 2023, and a further increase of 1.10 million barrels per day is expected for 2025.<\/p>\n \nRecent OFAC sanctions announced in January 2025, targeting tankers carrying Russia, Iran and Venezuela oil, will have a significant impact on oil flows and tanker markets. China and India have announced they will exclude sanctioned tankers from imports, and we estimate this replacement barrels impact to be equivalent to 100 Suezmax vessels. We have noticed a decline in ton-miles in the sanctioned fleet since, and we expect this to decrease further in the coming months. This will increase the utilization and tonne-mile impact for existing crude tankers, which will result in a significant reduction in cannibalization in the clean market.<\/p>\n \nOn the supply side, the product tanker orderbook-to-fleet ratio is approximately 22% as of February 2025. However, longer term fundamentals are still positive as a growing number of tankers over 20 years old are likely scrapping candidates. Many of these vessels, which operate with lower utilization and are frequently involved in \u201cdark trades,\u201d effectively reduce available fleet capacity. 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, supported by strong underlying demand and supply fundamentals. However, evolving geopolitical factors\u2014including sanctions, tariffs, and disruptions in the Red Sea\u2014will continue to influence trade flows and market dynamics.<\/p>\n Key Figures<\/b><\/p>\n USD million<\/b><\/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 Q4 2024<\/b><\/p>\n<\/td>\n Full year 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 \n521.8<\/p>\n<\/td>\n \n563.1<\/p>\n<\/td>\n \n497.9<\/p>\n<\/td>\n \n352.8<\/p>\n<\/td>\n \n1,935.6<\/p>\n<\/td>\n<\/tr>\n \nProfit before tax<\/p>\n<\/td>\n \n221.3<\/p>\n<\/td>\n \n260.8<\/p>\n<\/td>\n \n216.8<\/p>\n<\/td>\n \n79.6<\/p>\n<\/td>\n \n778.5<\/p>\n<\/td>\n<\/tr>\n \nProfit for the period<\/p>\n<\/td>\n \n219.6<\/p>\n<\/td>\n \n259.2<\/p>\n<\/td>\n \n215.6<\/p>\n<\/td>\n \n79.6<\/p>\n<\/td>\n \n774.0<\/p>\n<\/td>\n<\/tr>\n \nFinancial items<\/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(12.7)<\/p>\n<\/td>\n \n(47.8)<\/p>\n<\/td>\n<\/tr>\n \nShare of profit from joint ventures<\/p>\n<\/td>\n \n7.3<\/p>\n<\/td>\n \n8.5<\/p>\n<\/td>\n \n4.1<\/p>\n<\/td>\n \n0.6<\/p>\n<\/td>\n \n20.5<\/p>\n<\/td>\n<\/tr>\n \nTCE income1<\/sup><\/p>\n<\/td>\n \n378.8<\/p>\n<\/td>\n \n417.4<\/p>\n<\/td>\n \n361.6<\/p>\n<\/td>\n \n233.6<\/p>\n<\/td>\n \n1,391.3<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA1<\/sup><\/p>\n<\/td>\n \n287.1<\/p>\n<\/td>\n \n317.1<\/p>\n<\/td>\n \n257.0<\/p>\n<\/td>\n \n131.2<\/p>\n<\/td>\n \n992.3<\/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 \n3,897.0<\/p>\n<\/td>\n \n3,922.7<\/p>\n<\/td>\n \n3,828.9<\/p>\n<\/td>\n \n3,735.0<\/p>\n<\/td>\n \n3,735.0<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities<\/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 \n1,472.5<\/p>\n<\/td>\n \n1,472.5<\/p>\n<\/td>\n<\/tr>\n \nTotal equity<\/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 \n2,262.5<\/p>\n<\/td>\n \n2,262.5<\/p>\n<\/td>\n<\/tr>\n \nCash at bank and on hand2<\/sup><\/p>\n<\/td>\n \n128.9<\/p>\n<\/td>\n \n166.7<\/p>\n<\/td>\n \n197.1<\/p>\n<\/td>\n \n195.3<\/p>\n<\/td>\n \n195.3<\/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 \n38.3%<\/p>\n<\/td>\n \n44.5%<\/p>\n<\/td>\n \n37.1%<\/p>\n<\/td>\n \n14.2%<\/p>\n<\/td>\n \n34.5%<\/p>\n<\/td>\n<\/tr>\n \nReturn on Invested Capital (p.a.)4<\/sup><\/p>\n<\/td>\n \n27.6%<\/p>\n<\/td>\n \n31.4%<\/p>\n<\/td>\n \n26.7%<\/p>\n<\/td>\n \n11.4%<\/p>\n<\/td>\n \n25.0%<\/p>\n<\/td>\n<\/tr>\n \nEquity ratio<\/p>\n<\/td>\n \n60.4%<\/p>\n<\/td>\n \n62.1%<\/p>\n<\/td>\n \n63.2%<\/p>\n<\/td>\n \n60.6%<\/p>\n<\/td>\n \n60.6%<\/p>\n<\/td>\n<\/tr>\n \nNet loan-to-value (LTV) ratio5<\/sup><\/p>\n<\/td>\n \n24.2%<\/p>\n<\/td>\n \n21.3%<\/p>\n<\/td>\n \n19.1%<\/p>\n<\/td>\n \n23.2%<\/p>\n<\/td>\n \n23.2%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n For the 3 months ended 31 December 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 \n27<\/p>\n<\/td>\n \n56<\/p>\n<\/td>\n \n24<\/p>\n<\/td>\n \n113<\/p>\n<\/td>\n<\/tr>\n \nTotal operating days9<\/sup><\/p>\n<\/td>\n \n536<\/p>\n<\/td>\n \n2,386<\/p>\n<\/td>\n \n5,309<\/p>\n<\/td>\n \n2,062<\/p>\n<\/td>\n \n10,293<\/p>\n<\/td>\n<\/tr>\n \nTotal calendar days (excluding TC-in)<\/p>\n<\/td>\n \n552<\/p>\n<\/td>\n \n2,111<\/p>\n<\/td>\n \n4,559<\/p>\n<\/td>\n \n2,208<\/p>\n<\/td>\n \n9,430<\/p>\n<\/td>\n<\/tr>\n \nTCE (USD per operating day)1<\/sup><\/p>\n<\/td>\n \n25,772<\/p>\n<\/td>\n \n21,266<\/p>\n<\/td>\n \n22,274<\/p>\n<\/td>\n \n24,620<\/p>\n<\/td>\n \n22,692<\/p>\n<\/td>\n<\/tr>\n \nSpot TCE (USD per operating day)1<\/sup><\/p>\n<\/td>\n \n25,508<\/p>\n<\/td>\n \n21,378<\/p>\n<\/td>\n \n20,984<\/p>\n<\/td>\n \n24,401<\/p>\n<\/td>\n \n22,085<\/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 \n19,641<\/p>\n<\/td>\n \n26,985<\/p>\n<\/td>\n \n26,856<\/p>\n<\/td>\n \n26,310<\/p>\n<\/td>\n<\/tr>\n \nOPEX (USD per calendar day)10<\/sup><\/p>\n<\/td>\n \n7,719<\/p>\n<\/td>\n \n7,971<\/p>\n<\/td>\n \n8,187<\/p>\n<\/td>\n \n8,270<\/p>\n<\/td>\n \n8,131<\/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 \n1,518<\/p>\n<\/td>\n<\/tr>\n<\/table>\n 1 <\/sup>See Non-IFRS Measures section below.<\/p>\n<\/td>\n<\/tr>\n 2<\/sup> Excluding cash retained in the commercial pools.<\/p>\n<\/td>\n<\/tr>\n 3<\/sup> Annualised<\/p>\n<\/td>\n<\/tr>\n 4<\/sup> ROIC is calculated using annualised EBIT less tax.<\/p>\n<\/td>\n<\/tr>\n 5 <\/sup>Net loan-to-value (excluding joint venture vessels and debt) 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).<\/p>\n<\/td>\n<\/tr>\n 6<\/sup> Inclusive of nine IMO II MR vessels.<\/p>\n<\/td>\n<\/tr>\n 7<\/sup> Inclusive of 18 IMO II Handy vessels.<\/p>\n<\/td>\n<\/tr>\n 8 <\/sup>Excluding 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.<\/p>\n<\/td>\n<\/tr>\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.<\/p>\n<\/td>\n<\/tr>\n 10<\/sup> OPEX includes vessel running costs and technical management fees.<\/p>\n<\/td>\n<\/tr>\n 11<\/sup> G&A includes all expenses and is adjusted for cost incurred in managing external vessels.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Declaration of Dividend<\/b><\/p>\n \nHafnia will pay a quarterly dividend of USD 0.0294<\/b> per share. The record date will be March 7, 2025.<\/p>\n \nFor shares registered in the Euronext VPS Oslo Stock Exchange, dividends will be distributed in NOK with an ex-dividend date of March 6, 2025 <\/b>and a payment date on, or about, March 18, 2025.<\/p>\n \nFor shares registered in the Depository Trust Company, the ex-dividend date will be March 7, 2025 <\/b>with a payment date on, or about, March 13, 2025.<\/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 February 27, 2025.<\/p>\n The details are as follows:<\/b><\/p>\n Date:<\/b> Thursday, February 27, 2025<\/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 120 vessels, today announced results for the three and twelve months ended December 31, 2024.<\/p>\n\n
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