Financial Data and Key Metrics Changes - The company reported a net result of $75.3 million for Q2, which is an improvement compared to Q1, indicating a resilient market performance [3][4] - The dividend payout ratio remains at 80% of net profit, consistent with the company's dividend policy [4][17] - The net asset value (NAV) is approximately NOK 67 million, with a narrowing gap to the current trading price of NOK 61 [12][13] Business Line Data and Key Metrics Changes - The company operates around 130 product tankers and manages about 80 additional vessels for other owners, totaling over 200 vessels in operation [6][7] - The company is primarily exposed to the spot market, with approximately 85% to 90% of its operations in this segment, which has been beneficial in the recent market environment [7] Market Data and Key Metrics Changes - The order book for product tankers is reported to be around 19% to 20% of the existing fleet, but the effective order book is closer to 13% to 14% when accounting for LR2 ships that primarily serve the crude market [29][30] - The market is currently undersupplied, with expectations for fleet growth of at least 5% per year to maintain balance [31][32] Company Strategy and Development Direction - The company aims to maintain an average fleet age below 10 years, currently at 9.4 years, to ensure competitiveness and compliance with environmental regulations [10][11] - The company is focusing on consolidation within the industry rather than acquiring individual assets, preferring to return capital to shareholders when attractive opportunities are not present [21][22] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the current market conditions, noting that Q3 has started strong, with various factors contributing to a stable outlook [40][41] - The geopolitical situation, including the ongoing Ukraine war and issues in the Red Sea, is viewed as having a neutral impact on the product tanker market [25][26] Other Important Information - The company has established a joint venture with Cargill, named Seascale Energy, to optimize fuel procurement amidst changing energy dynamics [8] - The company has a revolving credit facility of approximately $700 million, which is seen as a standard business practice to enhance financial flexibility [19][20] Q&A Session Summary Question: What is the company's outlook for Q3 and 2026? - The company noted that Q3 has started strong, with various positive factors influencing the market, and does not foresee significant vulnerabilities [40][41] Question: Is the company optimizing the age of its fleet by selling older vessels? - Yes, the company has been actively selling older ships and plans to continue this strategy [44] Question: What is the motivation for acquiring new builds? - The company is currently not looking to order new builds due to high costs and long delivery times, preferring to focus on fleet modernization through secondhand tonnage [46][48] Question: What impact would it have if it becomes safe to sail through the Suez Canal and the Red Sea? - The company believes it would have a neutral impact on the product tanker market, as volume lost during the diversion would not significantly change [49][50]

Financial Data and Key Metrics Changes - For Q2 2025, the company achieved an adjusted EBITDA of $134.2 million and a net profit of $75.3 million, reflecting strong operational execution and market conditions [7][24] - The net asset value at the end of Q2 was approximately $3.3 billion, equating to an NAV of $6.55 per share [9] - The net loan-to-value (LTV) ratio remained unchanged at 24.1%, indicating a balance between reduced vessel market values and further debt reduction [11][29] Business Line Data and Key Metrics Changes - The commercial pool and bunkering operations contributed $7.9 million to overall results, with the Seascale Energy joint venture commencing operations in mid-May [7][24] - The average time charter equivalent (TCE) income for the quarter was $231.2 million, averaging $24,452 per day across vessel segments [26] Market Data and Key Metrics Changes - Clean product volumes transported on sanctioned vessels decreased by 17%, despite an increase in the number of product tankers sanctioned [13] - The company noted a strong recovery in accumulated tonne days for the clean segment, significantly surpassing the three-year average by Q3 [16] - Global refinery margins remain strong, with limited refinery outages projected for the remainder of the year, supporting higher volumes and longer haul trading [18] Company Strategy and Development Direction - The company aims to maintain a transparent and consistent dividend policy, having paid out 82.8% of net profit through dividends and share buybacks in 2024 [11] - Hafnia is focused on sustainability initiatives and aims to provide reliable, efficient, and sustainable solutions through partnerships and smart investments [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market fundamentals, citing limited fleet supply and improved spot rates as drivers for future performance [35] - The company anticipates robust net profits for the full year, with analysts' consensus indicating profits in the range of $300 million to $310 million [31] Other Important Information - The company secured a $750 million revolving credit facility in July, which is expected to reduce overall funding costs and lower cash flow breakeven levels [29][30] - The company has maintained a strong liquidity profile, with over $450 million in liquidity at the end of Q2 [25] Q&A Session Summary Question: Can you quantify the improvement to cash breakeven rates after refinancing? - The refinancing is expected to improve cash flow breakeven to roughly $13,000 per day, reflecting a margin improvement of 50 to 60 basis points [39][40] Question: What is driving the divergence in performance between MRs and LRs? - The LR1s and LR2s have remained resilient, and the improvement in MRs is more about catching up rather than LRs declining [48] Question: How do sanctions impact the market and tonnage availability? - OFAC sanctions are seen as more impactful, but EU and UK sanctions also significantly affect market dynamics, making it challenging to operate sanctioned vessels [56][58] Question: What are the expectations regarding the IMO's net zero framework? - The company believes the IMO will vote through the proposed regulations, despite geopolitical uncertainties [67][68] Question: Will the company consider share buybacks in addition to dividends? - The company maintains a clear dividend policy and will consider share buybacks as an addition to the existing policy [71][74]

Financial Data and Key Metrics Changes - The company reported a net profit of $75.3 million for Q2 2025, an improvement compared to Q1 2025, indicating a resilient market performance [3][4] - The dividend payout ratio remains at 80% of net profit, consistent with the company's dividend policy [4][16] - The net asset value (NAV) is approximately NOK 67 million, with the company narrowing the gap between its trading price and NAV [12][13] Business Line Data and Key Metrics Changes - Hafnia operates around 130 product tankers and manages about 80 additional vessels for other owners, totaling over 200 vessels in operation [6][7] - The company is primarily exposed to the spot market, with approximately 85% to 90% of its operations in this segment, which has been beneficial in the recent market environment [7] Market Data and Key Metrics Changes - The order book for product tankers is reported to be around 19% to 20% of the existing fleet, but the effective order book is closer to 13% to 14% when accounting for LR2 vessels primarily used for crude transportation [29][30] - The market is currently undersupplied, with a significant portion of the fleet being older and poorly maintained, leading to potential scrapping pressures in the future [32][33] Company Strategy and Development Direction - The company aims to maintain an average fleet age below ten years, currently at 9.4 years, to enhance operational efficiency and compliance with environmental regulations [10][11] - Hafnia is focusing on consolidation within the industry rather than acquiring individual assets, emphasizing the importance of scale and access to capital in the evolving market [20][21] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the current market conditions, noting that Q3 has started strong, with various factors contributing to a stable outlook [41][53] - The geopolitical situation, particularly regarding the Red Sea and Ukraine, is viewed as having a neutral impact on the product tanker market, with no significant return to previous import levels from Russia expected [25][26] Other Important Information - The company has established a joint venture with Cargill, named Seascale Energy, to optimize fuel procurement amidst changing energy dynamics [8] - The company has a revolving credit facility of approximately $700 million, which is seen as a standard business practice to enhance financial flexibility [18][19] Q&A Session Summary Question: What is the outlook for Q3 and 2026 regarding fixings? - The management noted that Q3 has started strong, with July being the best month of the year, and they expect a stable market moving forward [41][42] Question: Are you optimizing the age of your fleet by selling older vessels? - Yes, the company has been steadily selling older ships and plans to continue this strategy [45] Question: What is the motivation for acquiring new builds? - The management highlighted that ordering new ships would not yield deliveries until 2028, and current prices are not attractive, leading to a focus on consolidation instead [47][49] Question: What would be the impact if it becomes safe to sail through the U.S. and the Red Sea? - The management believes it would have a neutral effect on the product tanker market, as the volume lost during the diversion would not be fully regained [51] Question: How do you see the market currently? - The management sees the market as surprisingly strong, with stability across various parameters and no indications of a return to previous lows [53][55]

Financial Performance - Hafnia reported a TCE income of USD 231.2 million for Q2 2025, with USD 449.9 million for 1H 2025[15] - Adjusted EBITDA for Q2 2025 was USD 134.2 million, and USD 259.3 million for 1H 2025[15] - Net profit for Q2 2025 reached USD 75.3 million (USD 0.15 per share), and USD 138.5 million (USD 0.28 per share) for 1H 2025[15] - A dividend of USD 60.3 million was declared, representing 80% of the net profit, which equals USD 0.1210 per share[15, 26] Fleet and Coverage - As of August 15, 2025, 75% of the fleet's earning days for Q3 2025 were covered at USD 25,395 per day[18] - Net Asset Value (NAV) is approximately USD 3.3 billion, equivalent to around USD 6.55 or NOK 66.07 per share[20] Market Dynamics - Cargo volumes for CPPs and chemicals have increased since 2020, with tonne-miles reaching their highest levels in eight years[38] - The company anticipates that the recent OPEC+ decision to boost production in September will support crude tanker rates and benefit the product tanker market[38] Strategic Initiatives - Hafnia concluded a USD 715 million revolving credit facility on July 10, 2025[18, 77] - The company maintains a strong balance sheet with a Net LTV of 24.1%[25, 76] Supply Outlook - UK, UN, and OFAC have sanctioned more than 400 tankers in 2025, reflecting a total of approximately 800 vessels trading outside normal market competition[55]

Financial Data and Key Metrics Changes - The company reported a net result of $75.3 million for Q2, which is an improvement compared to Q1, indicating a resilient market performance [3][4] - The dividend payout ratio remains at 80% of net profit, consistent with the company's dividend policy [4][17] - The net asset value (NAV) is approximately NOK 67 million, reflecting a narrowing gap to the current trading price of NOK 61 [12] Business Line Data and Key Metrics Changes - Hafnir operates around 130 product tankers and manages an additional 80 vessels for other owners, totaling over 200 vessels in operation [6][7] - The company is primarily exposed to the spot market, with approximately 85% to 90% of its operations in this segment, which has been beneficial in the recent market environment [7] Market Data and Key Metrics Changes - The order book for product tankers is estimated to be around 19% to 20% of the existing fleet, but the effective addition to the product tanker fleet is closer to 13% to 14% due to the classification of certain vessels [29][30] - The market is currently undersupplied, with expectations of a stable high market as older, poorly maintained vessels are phased out [31][32] Company Strategy and Development Direction - The company aims to maintain an average fleet age below ten years, currently at 9.4 years, to ensure competitiveness and compliance with environmental regulations [10][11] - Hafnir is focusing on consolidation within the industry rather than acquiring individual vessels, preferring to return capital to shareholders when attractive opportunities are not present [20][21][47] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the current market conditions, noting that Q3 has started strong, with various factors contributing to a stable outlook [39][50] - The geopolitical situation, particularly regarding the Red Sea and Ukraine, is viewed as having a neutral impact on the product tanker market, with no significant return to previous import levels from Russia expected [25][26][48] Other Important Information - The company has established a joint venture with Cargill, Seascale Energy, to optimize fuel procurement amidst changing energy dynamics [8] - The company has a revolving credit facility of approximately $700 million, which enhances financial flexibility for future investments [19] Q&A Session Summary Question: What is the outlook for Q3 and 2026? - The third quarter has started strong, with July being the best month of the year so far, indicating a stable market outlook [39][50] Question: Are you optimizing the age of your fleet by selling older vessels? - Yes, the company has been steadily selling older vessels over the past 18 months and plans to continue this strategy [43] Question: What is the motivation for acquiring new builds? - Current new builds are not attractive due to high costs and long delivery times, leading the company to focus on consolidation and modernization of the fleet through secondhand tonnage [46][47]

Financial Data and Key Metrics Changes - The company reported a net profit of $75.3 million for Q2 2025, an improvement compared to Q1 2025, indicating a resilient market performance [3][4] - The dividend payout ratio remains at 80% of net profit, consistent with the company's dividend policy [4][16] - The net asset value (NAV) is approximately NOK 67 million, with the company narrowing the gap to NAV [12] Business Line Data and Key Metrics Changes - Hafnia operates around 130 product tankers and manages about 80 additional vessels for other owners, totaling over 200 vessels in its fleet [6][7] - The company is primarily exposed to the spot market, with approximately 85% to 90% of its operations in this segment, which has been beneficial in the recent market environment [7] Market Data and Key Metrics Changes - The order book for product tankers is estimated to be around 19% to 20% of the existing fleet, but the effective order book is closer to 13% to 14% when accounting for LR2 ships that primarily serve the crude market [28][29] - The market is currently undersupplied, with a significant portion of the fleet being older and poorly maintained, leading to potential scrapping pressures in the future [31][32] Company Strategy and Development Direction - The company aims to maintain an average fleet age below ten years, currently at 9.4 years, to ensure competitiveness and compliance with environmental regulations [10][11] - Hafnia is focusing on consolidation within the product tanker market, believing that scale and access to capital will be crucial as the industry transitions away from fossil fuels [20] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the current market conditions, noting that Q3 has started strong, with various factors contributing to a stable outlook [40][52] - The geopolitical situation, particularly regarding the Ukraine war and the Red Sea, is viewed as uncertain but not expected to significantly impact the product tanker market [25][50] Other Important Information - The company has established a joint venture with Cargill, named Seascale Energy, to optimize fuel procurement amidst changing energy dynamics [8] - Hafnia has a revolving credit facility of approximately $700 million, which enhances financial flexibility for future investments [18] Q&A Session Summary Question: What is the outlook for Q3 and 2026? - The third quarter has started strong, with July being the best month of the year so far, indicating a stable market outlook [40][41] Question: Are you optimizing the age of your fleet by selling older vessels? - Yes, the company has been steadily selling older ships and plans to continue this strategy [44] Question: What is the motivation for acquiring new builds? - Current new build prices are not attractive, and the company prefers to focus on consolidation and modernizing the fleet through secondhand tonnage [46][49] Question: What will be the impact if it becomes safe to sail through the Suez Canal and the Red Sea? - The company believes it will have a neutral impact on the product tanker market, as volume lost during the diversion will not be fully regained [50]

Economic Overview - The U.S. economy faced significant volatility with mixed signals, as major indexes like the S&P 500 and Dow Jones increased by 0.28% and 1.60%, while the Nasdaq Composite decreased by 0.62% [1] - The Federal Reserve Chair Jerome Powell suggested the possibility of an interest rate cut as early as September during the Jackson Hole symposium [1] Labor Market Concerns - A slowing labor market is a primary concern for the Federal Reserve, with recent data showing a downward revision of job growth in May and June, and only 73,000 jobs added in July [2] - Despite strong Q2 GDP numbers, labor market and manufacturing data indicate a potential economic slowdown, presenting a dilemma for the Fed between supporting the job market and combating inflation [2] Zacks Research Performance - WisdomTree, Inc. shares increased by 28% since being upgraded to Zacks Rank 2 (Buy) on June 23, outperforming the S&P 500's 8.7% gain [4] - Hafnia Limited shares rose by 14.1% after a Zacks Rank 2 upgrade on June 25, also surpassing the S&P 500's 6.4% increase [5] - A hypothetical portfolio of Zacks Rank 1 stocks returned +20.65% in 2023, compared to +24.83% for the S&P 500 index [6] Focus List and Model Portfolios - The Zacks Focus List portfolio returned +10.91% in 2025 (through July 31) compared to +8.59% for the S&P 500 index [12] - The Top 10 portfolio has delivered a cumulative return of +2,220.4% since 2012, significantly outperforming the S&P 500 index's +517.8% return [24] Sector-Specific Performance - Johnson & Johnson and The Hershey Company, part of the Earnings Certain Dividend Portfolio, returned 17.2% and 16.8% respectively over the past 12 weeks, driven by investor interest in quality dividend stocks amid market volatility [19] - Mettler-Toledo International Inc. and PepsiCo, part of the Earnings Certain Admiral Portfolio, saw returns of 18.6% and 15.7% over the past 12 weeks [15]

The consensus estimate for REV Group's current year EPS has increased 2.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Hafnia Limited belongs to the Transportation - Shipping industry, a group that includes 38 individual stocks and currently sits at #158 in the Zacks Industry Rank. On average, stocks in this group have lost 0.1% this year, meaning that HAFN is performing better in terms of year-to-date returns. In contrast, REV Group falls und ...

[Sustainability Statement 2024](index=1&type=section&id=Sustainability%20Statement%202024) This report outlines Hafnia's 2024 sustainability performance, adhering to ESRS and CSRD, covering environmental, social, and governance aspects [Responsibility Statement 2024](index=3&type=section&id=Responsibility%20Statement%202024) Hafnia's 2024 Sustainability Statement adheres to European Sustainability Reporting Standards (ESRS) under the CSRD framework, providing a comprehensive view of ESG matters - Hafnia's 2024 reporting aligns with European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability Reporting Directive (CSRD)[4](index=4&type=chunk) - The report provides a comprehensive view of sustainability for all stakeholders[4](index=4&type=chunk) - The Board of Directors and CEO are responsible for preparing the CSRD report, integrating sustainability into Hafnia's core business strategy[8](index=8&type=chunk) [General Disclosures (ESRS 2)](index=4&type=section&id=General%20Disclosures) This section details the general basis for preparing Hafnia's 2024 Sustainability Statement, adhering to EU CSRD and ESRS [General Basis for Preparation of the Sustainability Statement (BP-1)](index=5&type=section&id=BP-1%20General%20Basis%20for%20Preparation%20of%20the%20Sustainability%20Statement) Hafnia's 2024 Sustainability Statement follows EU CSRD and ESRS, consolidating data consistent with financial statements, with an exception for GHG and pollutant emissions from joint ventures - Hafnia's 2024 Sustainability Statement adheres to EU's Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS)[12](index=12&type=chunk) - Data consolidation follows financial statement principles, including subsidiaries, but GHG and pollutant emissions include joint-venture vessels based on ownership share[13](index=13&type=chunk) - The statement covers Hafnia's entire value chain, upstream and downstream, with suppliers integrated into policies[13](index=13&type=chunk) [Disclosures in Relation to Specific Circumstances (BP-2)](index=5&type=section&id=BP-2%20Disclosures%20in%20Relation%20to%20Specific%20Circumstances) This section defines time horizons for sustainability reporting and explains the spend-based approach for Scope 3 emissions estimation, with plans to enhance data accuracy from 2025 - Time horizons are defined as short-term (up to one year), medium-term (one to five years), and long-term (more than five years)[15](index=15&type=chunk) - Scope 3 emissions are estimated using a spend-based approach, with plans to engage suppliers directly from 2025 for more accurate data[16](index=16&type=chunk) - No comparative figures from prior years are included as 2024 is the first year of CSRD-aligned reporting[18](index=18&type=chunk) [The Role of The Administrative, Management, And Supervisory Bodies (GOV-1)](index=6&type=section&id=GOV-1%20The%20Role%20of%20The%20Administrative%2C%20Management%2C%20And%20Supervisory%20Bodies) This section details the composition, gender diversity, and independence of Hafnia's Board of Directors, highlighting their extensive industry experience and specific expertise in sustainability matters - The Board of Directors brings extensive industry knowledge from maritime and shipping sectors[22](index=22&type=chunk) - The Audit Committee oversees ESG reporting and annually reviews the Double Materiality Assessment (DMA)[30](index=30&type=chunk)[31](index=31&type=chunk) - The Board of Directors has expertise in key sustainability challenges, including climate change, air and water pollution, biodiversity, and business conduct[34](index=34&type=chunk)[35](index=35&type=chunk) Hafnia's Board of Directors Metric (2024) | Metric | Value | | :--- | :--- | | Number of Executive Members | 0 | | Number of Non-Executive Members | 5 | | Representation of Employees | None | | Board of Directors Gender Diversity Ratio | 20% women | | Percentage of Independent Board Members | 80% (4 out of 5) | [Information Provided to and Sustainability Matters Addressed by the Undertaking's Administrative, Management, and Supervisory Bodies (GOV-2)](index=9&type=section&id=GOV-2%20Information%20Provided%20to%20and%20Sustainability%20Matters%20Addressed%20by%20the%20Undertaking%27s%20Administrative%2C%20Management%2C%20and%20Supervisory%20Bodies) The Head of ESG presents the Double Materiality Assessment (DMA) and IROs to the Executive Management Team and Audit Committee for annual review, with quarterly updates on risks, impacts, and opportunities starting in 2025 - The Head of ESG presents the DMA and IROs to the Executive Management Team and Audit Committee for annual review and approval[39](index=39&type=chunk) - Starting in 2025, quarterly updates on risks, impacts, and opportunities will be provided to the Executive Management Team and Audit Committee[40](index=40&type=chunk) - ESG-related risks and opportunities are integrated into Hafnia's Enterprise Risk Management (ERM) framework, guiding strategic planning and investment decisions[41](index=41&type=chunk) - Hafnia has invested in sustainable fuel solutions, including four dual-fuel LNG vessels and four dual-fuel methanol chemical vessels[42](index=42&type=chunk) [Integration of Sustainability-Related Performance in Incentive Schemes (GOV-3)](index=9&type=section&id=GOV-3%20Integration%20of%20Sustainability-Related%20Performance%20in%20Incentive%20Schemes) Executive Management compensation includes incentive-based components, with key sustainability indicators annually assessed and discretionarily considered by the Remuneration Committee for variable remuneration - Key sustainability indicators are annually assessed for potential inclusion in Executive Management's variable remuneration, though this is discretionary[44](index=44&type=chunk) - 2024 Sustainability KPIs for CEO and CFO included maintaining high Health & Safety standards (LTIF <**0.4**, TRCF <**1.0**), achieving >**90%** favorable engagement survey results, being on track for 2030 gender diversity target (**40%** women in office), achieving >**50%** women onboard four Culture Labs ships, achieving zero breaches in five key compliance pillars and environmental regulations, maintaining trajectory to achieve 'net zero by 2050' and **40%** carbon intensity reduction by 2028 (from 2008 baseline), and screening suppliers on ESG criteria[45](index=45&type=chunk)[46](index=46&type=chunk) [Statement on Due Diligence (GOV-4)](index=10&type=section&id=GOV-4%20Statement%20on%20Due%20Diligence) Hafnia's due diligence process for people and the environment is embedded in its governance, strategy, and business model, involving stakeholder engagement, identification and assessment of adverse sustainability impacts, and taking action to address them - Hafnia's due diligence process is embedded in governance, strategy, and business model[47](index=47&type=chunk) - It involves engaging with affected stakeholders and identifying/assessing adverse sustainability-related impacts[47](index=47&type=chunk) - Actions are taken to address adverse impacts, and their effectiveness is tracked and communicated[47](index=47&type=chunk) [Risk Management and Internal Controls Over Sustainability Reporting (GOV-5)](index=11&type=section&id=GOV-5%20Risk%20Management%20and%20Internal%20Controls%20Over%20Sustainability%20Reporting) Hafnia ensures sustainability reporting accuracy through annual risk assessments, Audit Committee oversight, automated processes, data validation, and external assurance - Hafnia ensures accuracy and reliability of sustainability reporting through annual risk assessment and Audit Committee oversight[48](index=48&type=chunk) - Main sustainability reporting risks are addressed through automated processes, data validation, and external oversight[49](index=49&type=chunk) Identified Risks and Mitigation Measures | Risks Identified | Mitigation Measures in Place | | :--- | :--- | | Data Quality | ESG reporting platform (Watershed) automates data ingestion, flags discrepancies, requires approvals | | Accuracy of Estimated Results | Collaboration with Watershed refines methodologies and validation processes | | Reporting Accuracy | Follows international standards, comprehensive internal process (Executive Management, Audit Committee, Board), external limited assurance | | Information Availability | ESG team informs business units of requirements, conducts gap assessments | [Strategy, Business Model and Value Chain (SBM-1)](index=11&type=section&id=SBM-1%20Strategy%2C%20Business%20Model%20and%20Value%20Chain) Hafnia is a major owner/operator of product and chemical tankers, transporting refined oil products and chemicals globally, with sustainability as a core strategic pillar - Hafnia operates over **200** modern vessels for global transportation of refined oil products and chemicals[51](index=51&type=chunk)[52](index=52&type=chunk) Number of Employees by Geographical Area (Headcount at end of 2024) | Country | Employees Count | | :--- | :--- | | **Shore-based employees** | **274** | | Singapore | 141 | | Denmark | 90 | | United States | 18 | | United Arab Emirates | 12 | | India | 11 | | Monaco | 2 | | **Seafarers** | **4,685** | | Asia | 3,863 | | Europe | 755 | | Africa | 60 | | North America | 5 | | Oceania | 1 | | South America | 1 | Revenue Breakdown (Thousands of USD) | ESRS Sector | Total Revenue | | :--- | :--- | | H.50.20 Sea and coastal freight water transport | 1,935,596 | | Others | 933,051 | | Total | 2,868,647 | - 'Responsible and Reduce Emissions' is one of Hafnia's four strategic pillars[56](index=56&type=chunk) - Hafnia joined the United Nations Global Compact in 2024, committing to human rights, labor, environment, and anti-corruption principles[58](index=58&type=chunk) - Hafnia is actively advancing sustainability efforts in new transportation services for biofuels, ammonia, and CO2[57](index=57&type=chunk) [Interests and Views of Stakeholders (SBM-2)](index=14&type=section&id=SBM-2%20Interests%20and%20Views%20of%20Stakeholders) Hafnia engages with various stakeholders through tailored channels to build partnerships and promote transparency, integrating feedback into its strategy - Hafnia actively engages with stakeholders (employees, customers, suppliers, pool partners, investors, lenders, authorities, industry associations) through tailored channels[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - Stakeholder feedback validates Hafnia's strategy and is integrated into its approach, ensuring alignment with evolving sustainability requirements[69](index=69&type=chunk) - Informal stakeholder insights are regularly discussed during leadership meetings, and formal updates are provided to the Audit Committee annually as part of the Double Materiality Assessment (DMA) review[70](index=70&type=chunk)[71](index=71&type=chunk) [Material Impacts, Risks and Opportunities and Their Interaction with Strategy and Business Model (SBM-3)](index=16&type=section&id=SBM-3%20Material%20Impacts%2C%20Risks%20and%20Opportunities%20and%20Their%20Interaction%20with%20Strategy%20and%20Business%20Model) Hafnia identifies material impacts, risks, and opportunities (IROs) across environmental, social, and governance dimensions, which are integrated into its corporate strategy Material IROs for Hafnia (Selected Examples) | IRO Name | IRO Category | Description | Time Horizon | Connection to Strategy | | :--- | :--- | :--- | :--- | :--- | | Scope 1 emissions | Actual Negative Impact | Combustion of fossil fuels in vessel operations increases GHG emissions | Short-term, Medium-term, Long-term | Yes | | Scope 3 emissions | Actual Negative Impact | Emissions from value chain are a significant part of GHG footprint | Short-term, Medium-term, Long-term | Yes | | Providing new services: Sustainable freight solutions | Financial Opportunity | Attracts new customers, strengthens market position | Mid-term | Yes | | Inability to comply with new environmental regulations | Financial Risk | Stricter rules increase operational costs, exposure to fines | Mid-term | Yes | | Reduction in revenues in oil transport due to shift towards renewable energy | Financial Risk | Sudden shift in demand could reduce vessel demand and charter rates | Long-term | Yes | | Air Pollution from non-GHG emissions | Actual Negative Impact | Vessel operations release pollutants, affecting air quality | Short-term, Medium-term, Long-term | Yes | | Vessel scrapping | Potential Negative Impact | Improper recycling can lead to pollution from hazardous substances | Short-term, Medium-term, Long-term | Yes | | Equal parental leave for both parents for office employees | Actual Positive Impact | Boosts employee satisfaction, promotes gender equality | Short-term, Medium-term, Long-term | Yes | | Gender Diversity onboard above industry norms | Actual Positive Impact | Provides equal opportunities for female seafarers, broadens talent pool | Short-term, Medium-term, Long-term | Yes | | Shortage of talent in the shipping industry | Financial Opportunity | Investing in diverse talent pool drives growth, reduces hiring costs | Short-term | Yes | | Healthy corporate culture driving the company towards shared goals | Actual Positive Impact | Fosters collaborative and motivating work environment | Short-term | Yes | | Legal liabilities due to compliance breach | Financial Risk | Illegal conduct results in reputational damage and financial losses | Short-term | Yes | | Reputational effects from Corruption and bribery | Financial Risk | High levels of bribery/corruption disrupt operations, cause legal/financial damage | Short-term | Yes | - All identified material impacts are integrated into the corporate strategy with established policies and targets[79](index=79&type=chunk) - Qualitative scenario analysis was used for financial effects of risks and opportunities, without numerical quantification this year[81](index=81&type=chunk)[87](index=87&type=chunk) [Description of the Processes to Identify and Assess Material Impacts, Risks and Opportunities (IRO-1)](index=21&type=section&id=IRO-1%20Description%20of%20the%20Processes%20to%20Identify%20and%20Assess%20Material%20Impacts%2C%20Risks%20and%20Opportunities) Hafnia's Double Materiality Assessment (DMA) methodology, guided by ESRS, covers the parent company and subsidiaries, including the entire value chain, using a scoring methodology for both impact and financial materiality - The DMA methodology is grounded in ESRS disclosure requirements and covers Hafnia Limited and all its subsidiaries, including the entire value chain[83](index=83&type=chunk)[84](index=84&type=chunk) - Impact materiality is assessed using a scoring methodology for scale, scope, irremediable character, and likelihood[84](index=84&type=chunk) - Financial materiality for risks and opportunities is evaluated based on magnitude and likelihood, using a qualitative assessment this year[86](index=86&type=chunk)[87](index=87&type=chunk) - Key decisions in the DMA process are validated by the Executive Management and Audit Committee[88](index=88&type=chunk) - ESRS E3 (Water and Marine Resources), S3 (Affected Communities), and S4 (Consumers and End-users) were assessed as non-material and omitted[90](index=90&type=chunk) [Disclosure Requirements in ESRS Covered by the Undertaking's Sustainability Statement (IRO-2)](index=25&type=section&id=IRO-2%20Disclosure%20Requirements%20in%20ESRS%20Covered%20by%20the%20Undertaking%27s%20Sustainability%20Statement) This section provides an index of all material disclosure requirements under ESRS standards covered in Hafnia's Sustainability Statement, along with their corresponding page numbers - The report includes an index of material disclosures covering ESRS 2 (General Disclosures), E1 (Climate Change), E2 (Pollution), E4 (Biodiversity and Ecosystems), E5 (Resource Use and Circular Economy), S1 (Own Workforce), S2 (Workers in the Value Chain), and G1 (Business Conduct)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Environment](index=28&type=section&id=Environment) This section details Hafnia's environmental performance, focusing on climate change mitigation, EU Taxonomy reporting, pollution control, biodiversity protection, and resource use/circular economy [Climate Change (E1)](index=29&type=section&id=E1%20%2F%20Climate%20Change) Hafnia's climate strategy aims for net zero by 2050 and a **40%** carbon intensity reduction by 2028 (vs. 2008 baseline), two years ahead of IMO targets - Climate-related KPI for CEO and CFO (2024): Stay on track for 'net zero by 2050' and **40%** carbon intensity reduction by 2028 (vs. 2008 baseline)[115](index=115&type=chunk) - Hafnia's climate strategy is built on three key pillars: lead long-term industry changes, optimize vessel performance, and improve transparency in emissions reporting[116](index=116&type=chunk)[119](index=119&type=chunk) - Decarbonization Targets: Achieve IMO's target of **40%** carbon intensity reduction by 2028 (vs. 2008 levels), two years ahead of schedule, and achieve Net Zero by 2050 in line with the Paris Agreement[119](index=119&type=chunk) - Decarbonization levers include: Optimizing Technical Performance (modern fleet, energy-saving devices, machine learning), Optimizing Fleet Operations (ZeroNorth platform, data transparency, Mass Flow Metering), and Developing Clean Solutions (dual-fuel LNG/methanol vessels, biofuel/ammonia/CO2 transport, clean hydrogen ammonia production)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - OPEX and CAPEX for the Climate Strategy are not publicly disclosed due to commercial sensitivity[122](index=122&type=chunk) - Hafnia achieved an Annual Efficiency Ratio (AER) of **5.15** in 2024, representing a **33%** reduction in carbon intensity compared to the IMO's 2008 baseline, on track for the **40%** reduction target by 2028[137](index=137&type=chunk)[140](index=140&type=chunk) Energy Consumption and Mix (2024) | Metric | Value (MWh) | Share of Total (%) | | :--- | :--- | :--- | | Fuel consumption from crude oil and petroleum products | 7,799,871 | 100% (fossil) | | Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources | 607 | | | Total fossil energy consumption | 7,800,486 | 100% | | Total renewable energy consumption | 73 | 0% | | Total energy consumption | 7,800,573 | | GHG Emissions (2024) | Scope | Emissions (tCO2e) - Market-based | Emissions (tCO2e) - Location-based | | :--- | :--- | :--- | | Scope 1 | 2,200,393 | 2,200,393 | | Scope 2 | 156 | 129 | | Scope 3 | 685,455 | 685,454 | | TOTAL | 2,886,004 | 2,885,976 | - Scope 1 emissions are verified daily by classification society DNV[168](index=168&type=chunk) [EU Taxonomy Reporting in 2024](index=41&type=section&id=EU%20Taxonomy%20Reporting%20in%202024) Hafnia's EU Taxonomy reporting identifies eligible and aligned economic activities, with **31** chemical/IMO Type II tankers aligned for climate change mitigation - Hafnia's primary business activities (chartering, operating, maintenance of owned vessels) are considered EU Taxonomy-eligible under 'Sea and Coastal Freight Water Transport'[174](index=174&type=chunk) - **31** of Hafnia's chemical tankers and IMO Type II tankers are considered EU Taxonomy-aligned for Climate Change Mitigation, meeting EEDI and zero-direct CO2 emission fuel criteria[175](index=175&type=chunk) - No activities were identified as EU Taxonomy-aligned for Climate Change Adaptation[177](index=177&type=chunk) Taxonomy-Aligned Financials (2024) | Metric | Absolute Value (USD '000) | Proportion of Total (%) | | :--- | :--- | :--- | | **Turnover** | | | | Taxonomy-eligible | 1,688,956 | 59% | | Taxonomy-aligned | 451,333 | 16% | | **CAPEX** | | | | Taxonomy-eligible | 72,155 | 87% | | Taxonomy-aligned | 19,509 | 23% | | **OPEX** | | | | Taxonomy-eligible | 150,021 | 100% | | Taxonomy-aligned | 46,016 | 31% | [Pollution (E2)](index=46&type=section&id=E2%20%2F%20Pollution) Hafnia identifies air pollution from non-GHG emissions as a material impact, managed through its HSEQ Management and Environmental Management System policies, ensuring MARPOL compliance - Air pollution from non-GHG emissions is identified as a material negative impact[190](index=190&type=chunk) - Policies like HSEQ Management and Environmental Management System (ISO 14001) are in place to manage pollution[191](index=191&type=chunk) - Actions include ensuring MARPOL compliance for NOx and SOx emissions, using compliant fuels, and designing new vessels to meet NOx standards[195](index=195&type=chunk)[196](index=196&type=chunk) - No specific targets for air pollutants are set, but Hafnia remains fully compliant with MARPOL limits and regulations[197](index=197&type=chunk) Pollutants Emitted (2024) | Pollutant | Emissions (tonnes) | | :--- | :--- | | Nitrogen oxides (NOx) | 93,330 | | Sulphur oxides (SOx) | 5,859 | | Particulate matter (PM10) | 5,184 | | Particulate matter (PM2.5) | 4,770 | [Biodiversity and Ecosystems (E4)](index=48&type=section&id=E4%20%2F%20Biodiversity%20and%20Ecosystems) Hafnia identifies the release of invasive alien species through ballast water discharge as a material negative impact on marine biodiversity, addressed by installing ballast water treatment systems on **100%** of its fleet - The release of invasive alien species from untreated ballast water is identified as a material negative impact on marine biodiversity[205](index=205&type=chunk) - Hafnia's Environmental Management System policy aims to minimize the adverse impact on the environment, including biodiversity[208](index=208&type=chunk) - Actions include installing ballast water treatment systems on **100%** of the fleet, avoiding Marine Protected Areas (MPAs) or adhering to IMO guidelines when passage is unavoidable, and a pilot project to study Underwater Radiated Noise (URN)[211](index=211&type=chunk) - No specific targets for biodiversity have been adopted, but Hafnia is exploring measurement methodologies[212](index=212&type=chunk) [Resources Use and Circular Economy (E5)](index=51&type=section&id=E5%20%2F%20Resources%20Use%20and%20Circular%20Economy) Hafnia identifies improper vessel scrapping as a potential negative impact, committing to responsible recycling at certified facilities and aiming for a **10%** reduction in onboard plastic usage by 2028 - Improper vessel scrapping is identified as a potential negative impact due to hazardous substance mismanagement and pollution[213](index=213&type=chunk) - Hafnia's Ship Recycling Policy commits to responsible ship recycling at certified facilities compliant with the Hong Kong Convention 2009 or EU Regulation 1257/2013[214](index=214&type=chunk) - Actions include continuous commitment to recycling vessels at certified facilities and plans to establish guidelines for ship scrapping and material reuse[216](index=216&type=chunk) - No specific targets for vessel scrapping have been set, but a near-term target is a **10%** reduction in onboard plastic usage by 2028 (2023 baseline)[217](index=217&type=chunk)[218](index=218&type=chunk) Key Metrics on Waste (2024) | Metric | Value | | :--- | :--- | | Total Waste Generated | 35,405,442 kg | | Total Amount of hazardous waste | 0 | | Total amount of radioactive waste | 0 | | Non-Recycled Waste | 34,926,183 kg | | Percentage of non-recycled waste (% of total) | 98.6% | Waste by Treatment Type (2024) | Treatment Type | Hazardous/Non-Hazardous | Waste (kg) | | :--- | :--- | :--- | | Recycling | Non-hazardous waste | 479,259 | | Incineration | Non-hazardous waste | 34,028,209 | | Landfill | Non-hazardous waste | 897,974 | [Social](index=54&type=section&id=Social) This section addresses Hafnia's social performance, covering its own workforce and workers in the value chain, detailing material impacts, risks, and opportunities related to employee well-being, diversity, human rights, and talent management [Own Workforce (S1)](index=55&type=section&id=S1%20%2F%20Own%20Workforce) Hafnia's reporting on its own workforce covers both onshore and seafarer employees, addressing material impacts such as challenging living conditions, alcohol consumption, incidents/injuries, and inappropriate behavior, alongside positive impacts like equal parental leave, maternity leave for female seafarers, and gender diversity Material Impacts, Risks and Opportunities for Employees (Selected Examples) | IRO Name | IRO Category | Impact Description | Target Group | | :--- | :--- | :--- | :--- | | Challenging living conditions on board | Potential Negative Impact | Poor ergonomic design can lead to injuries, fatigue, decreased performance | Hafnia's owned vessels and newbuilds | | Alcohol consumption on board | Potential Negative Impact | Uncontrolled alcohol consumption compromises safety | Hafnia's seafarers | | Incidents, injuries, and fatalities on board | Potential Negative Impact | Critical operations increase injury risk | Hafnia's seafarers | | Inappropriate behavior on board and cases of harassment | Potential Negative Impact | Hostile environment affects well-being and productivity | Hafnia's seafarers | | Equal parental leave for both parents for office employees | Actual Positive Impact | Boosts employee satisfaction, promotes gender equality | Hafnia's office employees | | Maternity leave for female seafarers | Actual Positive Impact | Supports women in maritime careers, enables diverse workforce | Hafnia's seafarers | | Gender Diversity on board above industry norms | Actual Positive Impact | Provides equal opportunities for female seafarers, broadens talent pool | Hafnia's seafarers | | Shortage of talent in the shipping industry | Actual Financial Opportunity | Investing in diverse talent pool drives growth, reduces hiring costs | Hafnia's overall company | - Hafnia's workforce includes shore-based employees and seafarers (internally and externally managed fleet)[228](index=228&type=chunk) - Policies to manage impacts include Vision, Purpose, Values; Human Rights; Anti-harassment and Anti-bullying; Diversity, Inclusion, Belonging & Equity (DIBE); Health, Safety, Environment and Quality Management; and Drug and Alcohol policies[235](index=235&type=chunk) - Engagement channels include regular dialogue, surveys, town halls, and specific forums for seafarers and shore-based employees[241](index=241&type=chunk)[243](index=243&type=chunk) Number of Employees by Gender (Headcount at end of 2024) | | Seafarers Internally Managed Fleet | Seafarers - Externally Managed Fleet | Shore-based Employees | Total | | :--- | :--- | :--- | :--- | :--- | | Male | 2,159 | 2,054 | 173 | 4,386 | | Female | 199 | 273 | 101 | 573 | | Total | 2,358 | 2,327 | 274 | 4,959 | Employee Turnover (2024) | Employee Group | Employees Left | Turnover Rate (%) | | :--- | :--- | :--- | | Shore-based employees | 21 | 7.6% | | Seafarers (internally managed fleet) | 151 | 6.4% | | Seafarers (externally managed fleet) | 177 | 7.6% | | Total | 349 | 7% | - All seafarers are covered by a Collective Bargaining Agreement (CBA); shore-based employees are not[273](index=273&type=chunk) Gender Distribution of Management (Hafnia Top Management) | Gender | Number of Members | Percentage of Numbers | | :--- | :--- | :--- | | Male | 4 | 80% | | Female | 1 | 20% | | Total | 5 | 100% | Health and Safety Metrics (2024) | Metric | Value | | :--- | :--- | | Workers covered by health and safety management system | 100% | | Number of fatalities | 0 | | Number of recordable work-related accidents | 16 | | Lost Time Injury Frequency (LTIF) for the entire fleet | 0.13 | - Gender pay gap for seafarers is **62%**, and for shore-based employees is **42.9%**[278](index=278&type=chunk)[280](index=280&type=chunk) - Number of incidents of discrimination: **10**. Number of complaints filed through channels for workforce to raise concerns: **19**[284](index=284&type=chunk) [Workers In the Value Chain (S2)](index=67&type=section&id=S2%20%2F%20Workers%20In%20the%20Value%20Chain) Hafnia identifies human rights breaches in its supply chain and shipyards as potential negative impacts on value chain workers, with plans to strengthen engagement and due diligence in 2025 Material Impacts, Risks and Opportunities on Value Chain Workers | IRO Name | IRO Category | Impact Description | Target Group | | :--- | :--- | :--- | :--- | | Human Rights breaches in supply chain | Potential Negative Impact | Suppliers in regions with weak human rights protections may engage in poor practices | Workers of our suppliers | | Human Rights breaches in shipyards | Potential Negative Impact | Shipyards in regions with documented human rights violations may expose workers to exploitation | Workers in the shipyards | - Hafnia's Human Rights Policy and Supplier Code of Conduct extend commitments to human rights to all workers across its value chain[290](index=290&type=chunk) - All measures for addressing human rights impacts, including access to the whistleblowing platform, are available to workers in Hafnia's value chain[292](index=292&type=chunk) - In 2024, no breaches of the Supplier Code of Conduct or human rights violations were identified in the supply chain through audits[293](index=293&type=chunk) - Hafnia plans to strengthen supply chain engagement in 2025 by mapping its supply chain, conducting due diligence, and enhancing supplier engagement through annual questionnaires[293](index=293&type=chunk)[295](index=295&type=chunk)[302](index=302&type=chunk)[309](index=309&type=chunk) [Governance](index=71&type=section&id=Governance) This section outlines Hafnia's governance framework, focusing on business conduct, ethical principles, and compliance, detailing the roles of administrative and supervisory bodies, material impacts, and policies for anti-bribery, anti-corruption, and supplier management [Business Conduct (G1)](index=72&type=section&id=G1%20%2F%20Business%20Conduct) Hafnia's Board and Executive Management oversee business conduct, aligning with ethical principles and regulatory expectations, mitigating financial risks from compliance breaches and corruption - Hafnia's Board of Directors and Executive Management oversee business conduct, with the CEO and CFO accountable for governance initiatives[313](index=313&type=chunk) Material Impacts, Risks and Opportunities (IROs) for Business Conduct (Selected Examples) | IRO Name | IRO Category | Impact Description | Target Group | | :--- | :--- | :--- | :--- | | Healthy corporate culture driving the company towards shared goals | Actual Positive Impact | Fosters a collaborative and motivating work environment | Employees | | Ethical behavior and governance | Actual Positive Impact | Implements strong policies and training programs, ensuring ethical behavior | Employees and External Stakeholders | | Reputable trades | Actual Positive Impact | Upholds strong compliance practices, safeguarding against financial penalties | Employees and External Stakeholders | | Protection of whistle-blower through anti-retaliation policies and procedures | Actual Positive Impact | Ensures protection for whistleblowing for employees and third parties | Employees and External Stakeholders | | Legal liabilities due to compliance breach | Financial Risk | Illegal conduct results in reputational damage and significant financial losses | Hafnia's Overall Company | | Reputational effects from Corruption and bribery | Financial Risk | High levels of bribery/corruption disrupt operations, cause legal/financial damage | Hafnia's Overall Company | - Key policies include Anti-bribery and Anti-corruption, Supplier Code of Conduct, Corporate Governance, Anti-Trust, Anti-Money Laundering (AML), Whistleblowing, Human Rights, and Code of Conduct[318](index=318&type=chunk)[319](index=319&type=chunk) - Hafnia promotes a 'speak-up culture' through a 24/7 whistleblowing platform (allowing anonymous reporting) and an open-door policy, prohibiting retaliation[321](index=321&type=chunk)[322](index=322&type=chunk) - All onshore Hafnia employees receive annual mandatory training covering Anti-Bribery and Anti-Corruption, Anti-Trust, Sanctions, and GDPR[325](index=325&type=chunk) - High-risk functions for corruption and bribery include Vessel Operations, Procurement & Vendor Management, Commercial Activities, Government & Regulatory Affairs, and Finance & Accounts Payable[333](index=333&type=chunk)[339](index=339&type=chunk)[340](index=340&type=chunk) Anti-Corruption and Bribery Training Coverage (2024) | Group | Training Coverage (%) | Total Number Covered | Total Receiving Training | | :--- | :--- | :--- | :--- | | At-risk Functions - Shore based employees | 100% | 64 | 64 | | At-risk Functions - All Seafarers | 100% | 2,358 | 2,358 | | Managers | 100% | 76 | 76 | | Board of Directors | 0% | 5 | 0 | - No convictions for anti-corruption/bribery law violations and no fines were incurred in 2024[338](index=338&type=chunk) - No outstanding legal proceedings for late payments were registered in 2024[344](index=344&type=chunk) [Limited Assurance Report](index=80&type=section&id=Limited%20Assurance%20Report) KPMG AS provided a limited assurance conclusion on Hafnia's consolidated sustainability statement for 2024, stating that nothing came to their attention suggesting the statement was not prepared in all material respects according to the Norwegian Accounting Act and ESRS, including the EU Taxonomy reporting - KPMG AS issued a limited assurance report on Hafnia's 2024 consolidated sustainability statement[349](index=349&type=chunk) - The assurance engagement was conducted in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised)[350](index=350&type=chunk) - The conclusion states that nothing came to their attention suggesting the Sustainability Statement is not prepared, in all material respects, in accordance with the Norwegian Accounting Act section 2-3 and European Sustainability Reporting Standards (ESRS), including EU Taxonomy reporting[349](index=349&type=chunk)[354](index=354&type=chunk) - Management is responsible for designing and implementing the process to identify and assess material impacts, risks, and opportunities, and for preparing the Sustainability Statement[352](index=352&type=chunk)[355](index=355&type=chunk) - The auditor's responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement[356](index=356&type=chunk)

As filed with the Securities and Exchange Commission on April 30, 2025. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F | (Mark One) | | | --- | --- | | ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | OR | | ☒ | | | | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the fiscal year ended December 31, 2024 | | | OR | | ☐ | | | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 1 ...