Group 1 - BW LPG is part of the BW Group, which has interests in various energy infrastructure businesses, including Hafnia [1] - The analyst expresses a positive outlook on Bitcoin and encourages following for detailed investment ideas [1] Group 2 - No stock or derivative positions are held by the analyst in the mentioned companies, nor are there plans to initiate any within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company [2]

Group 1 - Hafnia Limited has entered into a preliminary agreement to acquire 14.45% of TORM plc A Shares from Oaktree [1] - The investment is referred to as the "Torm Investment" [1] - The company aims to clarify the treatment of this investment in relation to the calculation of net loan-to-value (LTV) upon completion [1]

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]

[CEO Statement](index=2&type=section&id=CEO%20Statement) [CEO Statement Summary](index=2&type=section&id=CEO%20Statement%20Summary) Hafnia's CEO reports strong Q2 2025 net profit of USD 75.3 million, driven by global demand and strategic fleet developments Key Financial and Operational Metrics | Metric | Value | | :------------------------------------------ | :----------------------------------- | | Q2 2025 Net Profit | USD 75.3 million | | Commercially Managed Pool & Bunker Contribution | USD 7.9 million | | Off-hire days (Q2 2025) | Approximately 630 days | | Anticipated Off-hire days (Q3 2025) | 510 days | | Net Asset Value (NAV) at Q2 end | USD 3.3 billion | | NAV per share | USD 6.55 (~NOK 66.07) | | Net Loan-to-Value (LTV) ratio | 24.1% (unchanged from Q1) | | Q2 2025 Payout Ratio | 80% | | Q2 2025 Dividends | USD 60.3 million or USD 0.1210 per share | | Q3 2025 Earning Days Coverage (as of Aug 15, 2025) | 75% at USD 25,395 per day | | Remainder of Year Earning Days Coverage | 48% at USD 25,158 per day | - New Vessel Deliveries: **Ecomar Guyenne** (dual-fuel methanol MR, May), **Ecomar Garonne** (July)[5](index=5&type=chunk) - New Joint Venture: **Seascale Energy** (bunker procurement with Cargill), commenced mid-May 2025[5](index=5&type=chunk) - Refinancing: Concluded **USD 715 million** revolving credit facility in July[6](index=6&type=chunk) [Safe Harbour Statement](index=4&type=section&id=Safe%20Harbour%20Statement) [Safe Harbour Statement Content](index=4&type=section&id=Safe%20Harbour%20Statement%20Content) This disclaimer cautions that forward-looking statements are subject to risks, and actual results may differ materially from projections - Purpose: Provides safe harbor protections for forward-looking statements[12](index=12&type=chunk) - Caution: Forward-looking statements are not guarantees of future performance; actual results may differ materially[15](index=15&type=chunk) - Risk Factors Mentioned: - Geopolitical conflicts (Russia-Ukraine, Israel-Hamas, Red Sea disruptions, sanctions) - Chemical and product tanker market conditions (charter rates, vessel values, supply/demand) - International trade policies (tariffs, import/export restrictions) - Changes in demand for various tanker types (LR2, LR1, MR, Handy) - Operating expenses (fuel, drydocking, insurance) - Ability to procure financing and compliance with covenants - Impact of ESG initiatives[17](index=17&type=chunk)[18](index=18&type=chunk) [Highlights – Q2 and H1 2025](index=6&type=section&id=Highlights%20%E2%80%93%20Q2%20and%20H1%202025) [Financial Highlights – Q2](index=6&type=section&id=Financial%20%E2%80%93%20Q2) Hafnia reported a **Q2 2025 net profit of USD 75.3 million**, a significant year-over-year decrease, with an 80% dividend payout Q2 Financial Performance | Metric | Q2 2025 (USD million) | Q2 2024 (USD million) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :------------ | | Net Profit | 75.3 | 259.2 | -70.9% | | Profit per share | 0.15 | 0.51 | -70.6% | | Commercially managed pool & bunker procurement earnings | 7.9 | 10.7 | -26.2% | | TCE earnings | 231.2 | 417.4 | -44.7% | | Average TCE per day | 24,452 | N/A | N/A | | Adjusted EBITDA | 134.2 | 317.1 | -57.7% | | Dividend per share | 0.1210 | N/A | N/A | | Payout ratio | 80% | N/A | N/A | [Financial Highlights – H1](index=6&type=section&id=Financial%20%E2%80%93%20H1) Hafnia's **H1 2025 net profit was USD 138.5 million**, reflecting a considerable year-over-year decline in earnings H1 Financial Performance | Metric | H1 2025 (USD million) | H1 2024 (USD million) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :------------ | | Net Profit | 138.5 | 478.8 | -71.1% | | Profit per share | 0.28 | 0.94 | -70.2% | | Commercially managed pool & bunker procurement income | 15.8 | 20.5 | -22.9% | | TCE earnings | 449.9 | 796.2 | -43.5% | | Average TCE per day | 23,720 | N/A | N/A | | Adjusted EBITDA | 259.3 | 604.1 | -57.1% | [Market Highlights](index=7&type=section&id=Market) The product tanker market in Q2-Q3 2025 saw strong demand, low inventories, and positive supply outlook, with EU sanctions creating inefficiencies - Market Drivers: Strong product demand, low global inventories, improving refining margins, high export volumes[31](index=31&type=chunk) - Global Oil Demand Forecast (IEA 2025): Increase of **0.7 million barrels per day** to **103.7 million barrels per day**[32](index=32&type=chunk) - OPEC+ Production Boost (September): **0.5 million barrels per day**, supporting crude and product tanker markets[32](index=32&type=chunk) - Product Tanker Supply Outlook: Positive, limited newbuild activity in 2025, orderbook-to-fleet ratio **~20%**[34](index=34&type=chunk) - Impact of EU Sanctions on Russia: Tightened tanker supply, potentially pushing vessels into shadow fleet, expanded trade routes, increased tonne-miles. Approximately **800 tankers sanctioned by Q3 2025**[35](index=35&type=chunk) [Fleet Overview](index=7&type=section&id=Fleet) Hafnia's Q2 2025 fleet included **117 owned and 9 chartered-in vessels**, with an estimated broker value of **USD 3,748 million** - Total Fleet (end of Q2): **117 owned vessels**, **9 chartered-in vessels**[37](index=37&type=chunk) - Fleet Composition: **10 LR2s**, **32 LR1s** (including 3 bareboat-chartered in, 2 time-chartered in), **60 MRs** (11 IMO II, including 7 time-chartered in), and **24 Handy vessels** (18 IMO II, including 6 bareboat-chartered in)[37](index=37&type=chunk) Estimated Broker Value of Fleet (USD million) | Metric | Value (USD million) | | :---------------------------------------- | :------------------ | | Average Estimated Broker Value of Owned Fleet | 3,748 | | Hafnia's 100% owned fleet | 3,358 | | Hafnia's 50% share in joint venture fleet | 390 | | LR2 Broker Value (including JV share) | 542 | | LR1 Broker Value (including JV share) | 976 | | MR Broker Value (including JV share) | 1,529 | | Handy Broker Value (including JV share) | 701 | | Unencumbered Vessels Broker Value | 1,024 | | Chartered-in Fleet Right-of-use asset book value | 23.6 | | Chartered-in Fleet Lease liability | 24.3 | [Dividend and Investor Information](index=8&type=section&id=Dividend%20announcement%2C%20webcast%20info) Hafnia declared a **Q2 2025 dividend of USD 0.1210 per share** and provided details for an investor webcast - Q2 2025 Quarterly Dividend: **USD 0.1210 per share**[41](index=41&type=chunk) - Record Date: **4 September 2025**[41](index=41&type=chunk) - Euronext VPS Oslo Stock Exchange: Ex-dividend date **3 September 2025**, payment on/about **15 September 2025**[41](index=41&type=chunk) - Depository Trust Company: Ex-dividend date **4 September 2025**, payment on/about **10 September 2025**[42](index=42&type=chunk) - Interim Financial Information Status: Not audited or reviewed by auditors[44](index=44&type=chunk) - Investor Webcast/Conference Call: **27 August 2025**, **8:30 pm SGT/2:30 pm CET/8:30 am EST**[45](index=45&type=chunk) [Key Figures](index=9&type=section&id=Key%20figures) [Key Figures Summary](index=9&type=section&id=Key%20Figures%20Summary) This section summarizes Hafnia's key financial and operational figures for Q1, Q2, and H1 2025, including segment-specific metrics Key Financial and Operational Figures **Income Statement (USD million):** | Metric | Q1 2025 | Q2 2025 | H1 2025 | | :-------------------------------- | :------ | :------ | :------ | | Operating revenue | 340.3 | 346.6 | 686.9 | | Profit before tax | 64.6 | 78.0 | 142.6 | | Profit for the period | 63.2 | 75.3 | 138.5 | | Financial items | (13.9) | (8.1) | (21.9) | | Share of profit from joint ventures | 3.0 | 3.0 | 6.0 | | TCE income | 218.8 | 231.2 | 449.9 | | Adjusted EBITDA | 125.1 | 134.2 | 259.3 | **Balance Sheet (USD million):** | Metric | Q1 2025 | Q2 2025 | H1 2025 | | :-------------------------------- | :------ | :------ | :------ | | Total assets | 3,696.4 | 3,669.9 | 3,669.9 | | Total liabilities | 1,418.0 | 1,369.5 | 1,369.5 | | Total equity | 2,278.4 | 2,300.4 | 2,300.4 | | Cash at bank and on hand | 188.1 | 194.0 | 194.0 | **Key Financial Ratios:** | Metric | Q1 2025 | Q2 2025 | H1 2025 | | :-------------------------------- | :------ | :------ | :------ | | Return on Equity (RoE) (p.a.) | 11.1% | 13.2% | 12.1% | | Return on Invested Capital (p.a.) | 9.6% | 10.6% | 10.1% | | Equity ratio | 61.6% | 62.7% | 62.7% | | Net loan-to-value (LTV) ratio | 24.1% | 24.1% | 24.1% | **Vessels on Balance Sheet (as of 30 June 2025):** | Vessel Type | Vessels (including dry-dock) (USD million) | | :---------- | :---------------------------------------- | | LR2 | 240.4 | | LR1 | 595.6 | | MR | 1,174.7 | | Handy | 558.0 | | Total | 2,568.7 | **Q2 2025 Operational Metrics by Segment:** | Metric (USD per operating day) | LR2 | LR1 | MR | Handy | Total | | :----------------------------- | :---- | :---- | :---- | :---- | :---- | | TCE | 38,241 | 28,164 | 22,967 | 19,808 | 24,452 | | Spot TCE | 38,596 | 28,216 | 22,157 | 19,169 | 24,147 | | TC-out TCE | 32,513 | 27,579 | 25,741 | 25,339 | 26,050 | | OPEX (USD per calendar day) | 8,299 | 8,989 | 8,085 | 7,456 | 8,153 | | G&A (USD per operating day) | N/A | N/A | N/A | N/A | 1,710 | [Condensed Consolidated Financial Statements](index=10&type=section&id=Condensed%20consolidated%20financial%20statements) [Condensed Consolidated Statement of Comprehensive Income](index=10&type=section&id=Condensed%20consolidated%20statement%20of%20comprehensive%20income) Hafnia's **Q2 2025 profit was USD 75.3 million**, and **H1 2025 profit was USD 138.5 million**, both significantly lower year-over-year due to reduced revenue and TCE income Condensed Consolidated Statement of Comprehensive Income (USD'000) | Metric (USD'000) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Revenue (Hafnia Vessels and TC Vessels) | 346,564 | 563,098 | 686,907 | 1,084,890 | | Revenue (External Vessels in Disponent-Owner Pools) | 207,591 | 268,064 | 415,158 | 531,165 | | TCE Income | 231,158 | 417,359 | 449,909 | 796,161 | | Operating profit | 83,090 | 262,137 | 158,553 | 495,060 | | Profit before income tax | 77,995 | 260,769 | 142,604 | 482,083 | | Profit for the financial period | 75,335 | 259,197 | 138,525 | 478,768 | | Basic earnings in USD per share | 0.15 | 0.51 | 0.28 | 0.94 | | Diluted earnings in USD per share | 0.15 | 0.51 | 0.27 | 0.93 | [Condensed Consolidated Balance Sheet](index=12&type=section&id=Condensed%20consolidated%20balance%20sheet) As of June 30, 2025, total assets were **USD 3,669.9 million**, with total shareholders' equity increasing to **USD 2,300.4 million** Condensed Consolidated Balance Sheet (USD'000) | Metric (USD'000) | As at 30 June 2025 | As at 31 December 2024 | | :-------------------------------- | :----------------- | :--------------------- | | Total property, plant and equipment | 2,592,934 | 2,607,562 | | Total non-current assets | 2,779,501 | 2,802,211 | | Total current assets | 890,423 | 900,079 | | Total assets | 3,669,924 | 3,702,290 | | Total shareholders' equity | 2,300,447 | 2,262,506 | | Total non-current liabilities | 631,058 | 785,954 | | Total current liabilities | 738,419 | 653,830 | | Total liabilities | 1,369,477 | 1,439,784 | | Cash at bank and on hand | 194,022 | 195,271 | | Cash retained in the commercial pools | 119,289 | 88,297 | [Condensed Consolidated Statement of Changes in Equity](index=14&type=section&id=Condensed%20consolidated%20statement%20of%20changes%20in%20equity) Total shareholders' equity increased to **USD 2,300.4 million** by June 30, 2025, driven by profit, offset by dividends and treasury share purchases Condensed Consolidated Statement of Changes in Equity (USD'000) | Metric (USD'000) | At 1 January 2025 | At 30 June 2025 | | :-------------------------------- | :---------------- | :-------------- | | Total shareholders' equity | 2,262,506 | 2,300,447 | | Profit for the financial period | N/A | 138,525 | | Dividends paid | N/A | (65,178) | | Purchase of treasury shares | N/A | (27,656) | | Other comprehensive (loss)/income | N/A | (9,257) | [Condensed Consolidated Statement of Cash Flows](index=16&type=section&id=Condensed%20consolidated%20statement%20of%20cash%20flows) H1 2025 operating cash flow was **USD 325.0 million**, with net cash outflow from investing and financing activities, ending with **USD 313.3 million** in cash Condensed Consolidated Statement of Cash Flows (USD'000) | Metric (USD'000) | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | | Net cash provided by operating activities | 325,039 | 549,173 | | Net cash (used in)/provided by investing activities | (60,710) | (6,535) | | Net cash used in financing activities | (234,586) | (502,578) | | Net increase in cash and cash equivalents | 29,743 | 40,060 | | Cash and cash equivalents at end of the financial period | 313,311 | 262,581 | | Purchase of property, plant and equipment | (68,342) | (28,674) | | Repayment of borrowings to external financial institutions | (31,338) | (63,798) | | Dividends paid | (65,178) | (299,186) | [Dividend Policy](index=18&type=section&id=Dividend%20policy) [Dividend Policy Details](index=18&type=section&id=Dividend%20Policy%20Details) Hafnia's dividend policy targets a quarterly payout ratio based on net LTV, with **80% payout for Q2 2025** resulting in **USD 0.1210 per share** - Target Payout Ratio based on Net LTV: - Above 40%: **50% payout** - Above 30% but <= 40%: **60% payout** - Above 20% but <= 30%: **80% payout** - <= 20%: **90% payout**[65](index=65&type=chunk) - Q2 2025 Payout Ratio: **80%**[64](index=64&type=chunk) - Q2 2025 Dividend Amount: **USD 60.3 million** or **USD 0.1210 per share**[64](index=64&type=chunk) - Board Considerations: Capital requirements, financial condition, business conditions, legal/contractual restrictions[63](index=63&type=chunk) - Additional Distribution Method: Company may buy back shares[62](index=62&type=chunk) [Coverage of Earning Days](index=19&type=section&id=Coverage%20of%20earning%20days) [Coverage of Earning Days Summary](index=19&type=section&id=Coverage%20of%20Earning%20Days%20Summary) As of August 15, 2025, Hafnia covered **75% of Q3 2025 operating days** at **USD 25,395 per day**, with significant coverage for joint venture fleets Fleet Coverage of Earning Days **Hafnia Fleet Coverage (as of 15 August 2025):** | Period | Covered, % | Covered rates, USD per day | | :------------- | :--------- | :------------------------- | | Q3 2025 | 75% | 25,395 | | Q3 and Q4 2025 | 48% | 25,158 | | 2026 | 8% | 23,623 | **Hafnia Fleet Coverage by Vessel Type (Q3 2025):** | Vessel Type | Covered, % | Covered rates, USD per day | | :---------- | :--------- | :------------------------- | | LR2 | 71% | 34,994 | | LR1 | 69% | 28,323 | | MR | 82% | 24,890 | | Handy | 68% | 21,468 | **Joint Venture Fleet Coverage (as of 15 August 2025):** | Period | Covered, % | Covered rates, USD per day | | :------------- | :--------- | :------------------------- | | Q3 2025 | 82% | 25,371 | | Q3 and Q4 2025 | 71% | 24,364 | | 2026 | 62% | 23,154 | **Joint Venture Fleet Coverage by Vessel Type (Q3 2025):** | Vessel Type | Covered, % | Covered rates, USD per day | | :---------- | :--------- | :------------------------- | | LR2 | 100% | 25,691 | | LR1 | 56% | 31,467 | | MR | 100% | 20,740 | - Hafnia's Pool Earnings (week beginning 18 August 2025): - LR2 vessels: **USD 40,000 per day** (round trip estimate) - LR1 vessels: **USD 34,537 per day** - MR vessels: **USD 24,633 per day** - Handy vessels: **USD 24,801 per day**[70](index=70&type=chunk) [Tanker Segment Results](index=20&type=section&id=Tanker%20segment%20results) [Tanker Segment Results Summary](index=20&type=section&id=Tanker%20Segment%20Results%20Summary) This section details the operating performance of Hafnia's tanker segments (LR2, LR1, MR, Handy) for Q3 2024 to Q2 2025, including TCE rates and OPEX Tanker Segment Performance **TCE (USD per operating day) by Segment:** | Segment | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------ | :------ | :------ | :------ | :------ | | LR2 | 42,829 | 25,772 | 33,911 | 38,241 | | LR1 | 37,564 | 21,266 | 23,418 | 28,164 | | MR | 31,928 | 22,274 | 22,821 | 22,967 | | Handy | 31,047 | 24,620 | 19,831 | 19,808 | **OPEX (USD per calendar day) by Segment:** | Segment | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :------ | :------ | :------ | :------ | :------ | | LR2 | 8,112 | 7,719 | 7,638 | 8,299 | | LR1 | 8,353 | 7,971 | 8,393 | 8,989 | | MR | 8,044 | 8,187 | 8,022 | 8,085 | | Handy | 8,142 | 8,270 | 7,611 | 7,456 | [Risk Factors](index=21&type=section&id=Risk%20factors) [Risk Factors Summary](index=21&type=section&id=Risk%20Factors%20Summary) Hafnia's results depend on the volatile refined oil product transportation market, facing risks from supply/demand, operating costs, interest rates, and liquidity - Primary Market Dependence: Worldwide market for transportation of refined oil products[74](index=74&type=chunk) - Market Volatility Factors: - Supply: Newbuilds, demolition of older tonnage, legislation - Demand: Global economic activity[74](index=74&type=chunk) - Key Financial Risks: - Increases in operating costs (fuel oil) - Interest rate risk - Credit risk - Liquidity risk - Capital risk[75](index=75&type=chunk) [Responsibility Statements](index=21&type=section&id=Responsibility%20statements) [Responsibility Statements Content](index=21&type=section&id=Responsibility%20Statements%20Content) Management confirms the H1 2025 interim financial information complies with IAS 34, providing a true and fair view of the Group's financial position and performance - Compliance: Interim Financial Information prepared in accordance with **IAS 34**[76](index=76&type=chunk) - Accuracy: Gives a true and fair view of Group's assets, liabilities, financial position, and income statement[76](index=76&type=chunk) - Content Confirmation: Includes fair review of important events, principal risks, and major related party transactions[76](index=76&type=chunk) - Authorization Date: **27 August 2025**[77](index=77&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=22&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [Note 1: General Information](index=22&type=section&id=Note%201%3A%20General%20information) Hafnia Limited, listed on Oslo and New York Stock Exchanges, provides global maritime services in the product tanker market - Listing: Oslo and New York Stock Exchanges[79](index=79&type=chunk) - Domicile: Redomiciled to Singapore on **1 October 2024**[79](index=79&type=chunk) - Principal Activity: Global maritime services in the product tankers market[79](index=79&type=chunk) - Authorization Date: **27 August 2025**[80](index=80&type=chunk) [Note 2: Basis of Preparation](index=22&type=section&id=Note%202%3A%20Basis%20of%20preparation) Interim financial information is prepared under **IAS 34** and should be read with the 2024 annual IFRS financial statements - Compliance: Prepared in accordance with **IAS 34 'Interim Financial Reporting'**[81](index=81&type=chunk) - Context: To be read with annual audited financial statements for 2024 (IFRS-compliant)[81](index=81&type=chunk) - Scope: Includes selected explanatory notes for significant events and transactions[81](index=81&type=chunk) [Note 3: Material Accounting Policies](index=22&type=section&id=Note%203%3A%20Material%20accounting%20policies) Accounting policies are consistent with 2024 annual statements, except for **IAS 21 amendments** on foreign exchange rates effective January 1, 2025 - Consistency: Accounting policies are generally the same as 2024 annual financial statements[82](index=82&type=chunk) - New Standard Applied (2025): Amendments to **IAS 21 'The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability'**[83](index=83&type=chunk) - Judgments and Estimates: Consistent with 2024 consolidated financial statements[83](index=83&type=chunk) [Note 4: Revenue](index=23&type=section&id=Note%204%3A%20Revenue) H1 2025 total revenue was **USD 686.9 million**, a decrease from H1 2024, with voyage charter revenue declining and time charter revenue increasing Revenue Breakdown (USD'000) | Metric (USD'000) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Revenue from voyage charter | 307,055 | 545,846 | 611,858 | 1,025,759 | | Revenue from time charter | 39,509 | 17,252 | 75,049 | 59,131 | | Total revenue (Hafnia Vessels and TC Vessels) | 346,564 | 563,098 | 686,907 | 1,084,890 | - Operating Segments: LR2, LR1, MR (inclusive of IMO II), and Handy (inclusive of IMO II) Product Tankers[84](index=84&type=chunk) [Note 5: Property, Plant and Equipment](index=23&type=section&id=Note%205%3A%20Property%2C%20plant%20and%20equipment) Net book value of property, plant, and equipment was **USD 2,592.9 million** as of June 30, 2025, with no impairment losses recognized for H1 2025 Property, Plant and Equipment Net Book Value (USD'000) **Net Book Value (USD'000):** | Asset Type | At 30 June 2025 | At 31 December 2024 | | :-------------------------------- | :-------------- | :------------------ | | Right-of-use Assets – Vessels | 23,574 | 18,661 | | Vessels | 2,459,641 | 2,521,223 | | Dry docking and scrubbers | 109,064 | 66,945 | | Others | 655 | 733 | | Total property, plant and equipment | 2,592,934 | 2,607,562 | - Impairment: No impairment losses recognized for H1 2025[87](index=87&type=chunk) - Mortgaged Vessels: Total carrying amount of **USD 1,782.0 million** as security for bank borrowings[92](index=92&type=chunk) - Time Chartered-in Vessels with Purchase Options (as of 30 June 2025): Six MRs and two LR1s[92](index=92&type=chunk) Time Chartered-in Vessels with Purchase Options **Current Average Purchase Option Price (USD'000):** | Vessel Type | Price | | :---------- | :---- | | LR1 | 40,333 | | MR | 30,626 | **Time Chartered-in Days (with purchase option):** | Vessel Type | 2025 | 2026 | | :---------- | :--- | :--- | | LR1 | 730 | 425 | | MR | 2,156 | 665 | **Average TC in rate (USD/Day):** | Vessel Type | 2025 | 2026 | | :---------- | :--- | :--- | | LR1 | 19,247 | 19,450 | | MR | 16,485 | 16,660 | [Note 6: Shareholders' Equity](index=25&type=section&id=Note%206%3A%20Shareholders%27%20equity) Issued share capital remained at **512.6 million shares**, with **14.6 million treasury shares** held and other reserves totaling **USD 507.3 million** - Issued Shares (as of 30 June 2025): **512,563,532 shares** (nominal value **USD 0.01 each**)[93](index=93&type=chunk) - Treasury Shares Held (as of 30 June 2025): **14,573,890 shares**[96](index=96&type=chunk) - Treasury Shares Intended for Cancellation: **12,721,255 shares**[96](index=96&type=chunk) Other Reserves (USD'000) **Other Reserves (USD'000) (as of 30 June 2025):** | Reserve Type | Amount | | :---------------------- | :----- | | Share based payment reserve | 4,891 | | Hedging reserve | 11,201 | | Capital reserve | 480,270 | | Translation reserve | 49 | | Fair value reserve | 10,906 | | Total | 507,317 | [Note 7: Borrowings](index=26&type=section&id=Note%207%3A%20Borrowings) Total borrowings decreased to **USD 1,026.7 million** by June 30, 2025, with a new **USD 715 million revolving credit facility** secured in July 2025 Total Borrowings (USD'000) **Total Borrowings (USD'000):** | Type | As at 30 June 2025 | As at 31 December 2024 | | :-------------------------------- | :----------------- | :--------------------- | | Current borrowings | 395,629 | 336,295 | | Non-current borrowings | 631,058 | 785,954 | | Total borrowings | 1,026,687 | 1,122,249 | - Bank Borrowings (as of 30 June 2025): Consist of nine credit facilities, secured by the Group's fleet of vessels[99](index=99&type=chunk) - Facility Termination: **USD 374 million facility** terminated as of 30 June 2025[99](index=99&type=chunk) - New Facility (July 2025): **USD 715 million Secured Revolving Credit Facility**[141](index=141&type=chunk) Weighted Average Effective Interest Rates **Weighted Average Effective Interest Rates (as of 30 June 2025):** | Type | Rate | | :-------------------------------- | :--- | | Bank borrowings | 6.0% | | Sale and leaseback liabilities | 6.2% | - Joint Ventures' Bank Borrowings (as of 30 June 2025): Consist of ten credit facilities[101](index=101&type=chunk) - Sale and Leaseback Liabilities (as of 30 June 2025): - **12 LR1 vessels**: **USD 310.1 million** - **6 CTI vessels**: **USD 99.5 million** - Other finance leases: **USD 41.2 million**[103](index=103&type=chunk) [Note 8: Commitments](index=30&type=section&id=Note%208%3A%20Commitments) Hafnia has operating lease commitments of **USD 169.7 million** and joint venture funding commitments of **USD 20.5 million** due within one year Operating Lease and Joint Venture Commitments (USD'000) **Operating Lease Commitments (as lessor) (USD'000):** | Period | As at 30 June 2025 | As at 31 December 2024 | | :---------------- | :----------------- | :--------------------- | | Less than one year | 126,665 | 110,715 | | One to two years | 40,705 | 42,329 | | Two to five years | 2,314 | 9,348 | | Total | 169,684 | 162,392 | **Newbuild and Operational Funding Commitments to Joint Ventures (USD'000):** | Period | As at 30 June 2025 | As at 31 December 2024 | | :---------------- | :----------------- | :--------------------- | | Less than one year | 20,532 | 52,917 | | One to two years | — | 16,778 | | Two to five years | — | — | | Total | 20,532 | 69,695 | [Note 9: Financial Information](index=31&type=section&id=Note%209%3A%20Financial%20information) Financial assets measured at fair value totaled **USD 37.2 million** (primarily Level 2), with no Level 1 instruments and Level 3 fair values based on market approach Financial Instruments (USD'000) **Financial Assets Measured at Fair Value (as of 30 June 2025, USD'000):** | Instrument | Carrying Amount | Fair Value (Level 2) | | :-------------------------------- | :-------------- | :------------------- | | Forward foreign exchange contracts | 1,506 | 1,506 | | Forward freight agreements | 1,076 | 1,076 | | Interest rate swaps used for hedging | 11,513 | 11,513 | | Other investments (FVOCI – equity instruments) | 23,069 | 23,069 (Level 3) | | Total | 37,164 | N/A | **Financial Liabilities Measured at Fair Value (as of 30 June 2025, USD'000):** | Instrument | Carrying Amount | Fair Value (Level 2) | | :-------------------------------- | :-------------- | :------------------- | | Forward freight agreements | (177) | (177) | **Financial Assets Not Measured at Fair Value (as of 30 June 2025, USD'000):** | Instrument | Carrying Amount | | :-------------------------------- | :-------------- | | Loans receivable from joint ventures | 62,490 | | Trade and other receivables, and prepayments | 447,115 | | Restricted cash | 10,000 | | Cash at bank and on hand | 194,022 | | Cash retained in the commercial pools | 119,289 | **Financial Liabilities Not Measured at Fair Value (as of 30 June 2025, USD'000):** | Instrument | Carrying Amount | | :-------------------------------- | :-------------- | | Bank borrowings | (551,607) | | Sale and leaseback liabilities and other lease liabilities | (475,080) | | Trade and other payables | (338,054) | - Fair Value Hierarchy: No Level 1 financial assets or liabilities. Level 2 uses observable market data. Level 3 for unquoted equity instruments uses market approach based on best estimate[113](index=113&type=chunk)[114](index=114&type=chunk)[117](index=117&type=chunk) Level 3 Investments (Unquoted Equity Instruments) (USD'000) **Level 3 Investments (Unquoted Equity Instruments) (USD'000):** | Metric | 30 June 2025 | 31 December 2024 | | :-------------- | :----------- | :--------------- | | Opening balance | 23,069 | 23,953 | | Closing balance | 23,069 | 23,069 | [Note 10: Significant Related Party Transactions](index=35&type=section&id=Note%2010%3A%20Significant%20related%20party%20transactions) This note details significant related party transactions for Q2 and H1 2025, including service fees, management fees, and pool revenue distributions Related Party Transactions (USD'000) **Related Party Transactions (USD'000):** | Transaction Type | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Purchase of services (Support service fees) | 1,873 | 1,715 | 3,744 | 3,446 | | Purchase of services (Rental) | 231 | 220 | 454 | 440 | | Rendering of services (Management fees received) | — | 159 | — | 344 | | Transactions with joint ventures (Management fees received) | 810 | 292 | 1,621 | 519 | | Transactions with joint ventures (Management fees paid) | 203 | — | 203 | — | | Transactions with joint ventures (Interest income received) | 882 | 1,326 | 1,720 | 2,235 | | Pool arrangements (Revenue distributable) | 15,063 | 26,297 | 29,175 | 49,280 | [Note 11: Joint Ventures](index=36&type=section&id=Note%2011%3A%20Joint%20ventures) Hafnia holds equity-accounted interests in several joint ventures, with this note summarizing their financial performance and contributions Total Interest in Joint Ventures (USD'000) **Total Interest in Joint Ventures (USD'000):** | Metric | As at 30 June 2025 | As at 31 December 2024 | | :------------------------ | :----------------- | :--------------------- | | Interest in joint ventures | 87,562 | 81,371 | [Vista Shipping](index=36&type=section&id=Vista%20Shipping) Vista Shipping, a **50% JV**, reported **USD 144.4 million in net assets** and contributed **USD 7.9 million** to Hafnia's H1 2025 comprehensive income - Ownership Interest: **50%**[122](index=122&type=chunk) Vista Shipping Financial Summary (USD'000) **Net Assets (100%) (USD'000):** | Metric | As at 30 June 2025 | As at 31 December 2024 | | :------------------------ | :----------------- | :--------------------- | | Net assets (100%) | 144,380 | 128,544 | | Group's share of net assets (50%) | 72,190 | 64,272 | **Profit and Total Comprehensive Income (100%) (USD'000):** | Metric | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | | Profit and total comprehensive income (100%) | 15,840 | 41,579 | | Group's share of total comprehensive income (50%) | 7,920 | 20,825 | [H&A Shipping](index=36&type=section&id=H%26A%20Shipping) H&A Shipping, a **50% JV**, reported **USD 15.8 million in net assets** and a **USD 0.2 million comprehensive loss** for Hafnia in H1 2025 - Ownership Interest: **50%**[126](index=126&type=chunk) H&A Shipping Financial Summary (USD'000) **Net Assets (100%) (USD'000):** | Metric | As at 30 June 2025 | As at 31 December 2024 | | :------------------------ | :----------------- | :--------------------- | | Net assets (100%) | 15,847 | 14,247 | | Group's share of net assets (50%) | 7,924 | 7,124 | | Carrying amount of interest in joint venture | 14,384 | 14,585 | **Profit and Total Comprehensive Income (100%) (USD'000):** | Metric | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | | Profit and total comprehensive income (100%) | 577 | 2,534 | | Group's share of total comprehensive (loss)/income (50%) | (201) | 1,414 | [Ecomar](index=37&type=section&id=Ecomar) Ecomar, a **50% JV**, reported **USD 0.3 million in net liabilities** and delivered two IMO II – MR vessels during H1 2025 - Ownership Interest: **50%**[128](index=128&type=chunk) Ecomar Financial Summary (USD'000) **Net Liabilities (100%) (USD'000):** | Metric | As at 30 June 2025 | As at 31 December 2024 | | :------------------------ | :----------------- | :--------------------- | | Net liabilities (100%) | (266) | (3,140) | | Group's share of net liabilities (50%) | (133) | (1,570) | | Carrying amount of interest in joint venture | — | — | **Profit/(loss) and Total Comprehensive Income/(loss) (100%) (USD'000):** | Metric | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | | Profit/(loss) and total comprehensive income (loss) (100%) | 200 | (3,289) | | Group's share of total comprehensive loss (50%) | — | (12) | - Vessel Deliveries: Two IMO II – MR vessels delivered through Ecomar JV during H1 2025[127](index=127&type=chunk) [Complexio](index=38&type=section&id=Complexio) Complexio, a **30.5% software development JV**, reported **USD 2.3 million in net assets** and a **USD 2.0 million comprehensive loss** for Hafnia in H1 2025 - Ownership Interest: **30.5%**[131](index=131&type=chunk) Complexio Financial Summary (USD'000) **Net Assets (100%) (USD'000):** | Metric | As at 30 June 2025 | As at 31 December 2024 | | :------------------------ | :----------------- | :--------------------- | | Net assets (100%) | 2,279 | 8,244 | | Group's share of net assets (30.5%) | 695 | 2,514 | **Loss and Total Comprehensive Loss (100%) (USD'000):** | Metric | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | | Loss and total comprehensive loss (100%) | (6,535) | (7,556) | | Group's share of total comprehensive loss (30.5%) | (1,993) | (1,712) | - Industry: Software development[129](index=129&type=chunk) [Seascale](index=39&type=section&id=Seascale) Seascale Energy, a **50% JV** for bunker procurement, commenced operations in March 2025, reporting **USD 0.6 million in net assets** - Ownership Interest: **50%**[132](index=132&type=chunk) - Commencement of Operations: **March 2025**[133](index=133&type=chunk) - Principal Activity: Bunker procurement services[133](index=133&type=chunk) Seascale Financial Summary (USD'000) **Net Assets (100%) (USD'000):** | Metric | As at 30 June 2025 | | :------------------------ | :----------------- | | Net assets (100%) | 585 | | Group's share of net assets (50%) | 293 | **Profit and Total Comprehensive Income (100%) (USD'000):** | Metric | H1 2025 | | :------------------------------------------ | :------ | | Profit and total comprehensive income (100%) | 534 | | Group's share of total comprehensive income (50%) | 267 | [Note 12: Segment Information](index=40&type=section&id=Note%2012%3A%20Segment%20information) This note details Hafnia's financial performance by operating segment (LR2, LR1, MR, Handy) for Q2 and H1 2025, including TCE income and Adjusted EBITDA Segment Performance (USD'000) **TCE Income (USD'000) by Segment:** | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------ | :------ | :------ | :------ | :------ | | LR2 | 20,824 | 32,693 | 39,119 | 58,203 | | LR1 | 60,665 | 118,133 | 115,474 | 237,119 | | MR | 114,860 | 193,718 | 222,440 | 366,164 | | Handy | 34,809 | 72,815 | 72,876 | 134,675 | | Total | 231,158 | 417,359 | 449,909 | 796,161 | **Adjusted EBITDA (USD'000) by Segment:** | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------ | :------ | :------ | :------ | :------ | | LR2 | 16,902 | 29,189 | 31,864 | 50,789 | | LR1 | 41,761 | 99,302 | 77,915 | 199,521 | | MR | 74,695 | 152,408 | 143,447 | 284,394 | | Handy | 20,048 | 56,342 | 43,988 | 102,917 | | Total | 153,406 | 337,241 | 297,214 | 637,621 | - Vessel Types and DWT Ranges: - LR2: **85,000 DWT to 124,999 DWT** (clean petroleum oil products) - LR1: **55,000 DWT to 84,999 DWT** (clean and dirty petroleum products) - MR: **40,000 DWT to 54,999 DWT** (clean and dirty oil products, vegetable oil, easy chemicals; inclusive of IMO II) - Handy: **25,000 DWT to 39,999 DWT** (clean and dirty oil products, vegetable oil, easy chemicals; inclusive of IMO II)[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) [Note 13: Subsequent Events](index=44&type=section&id=Note%2013%3A%20Subsequent%20events) Subsequent events include exercising purchase options, securing a **USD 715 million revolving credit facility**, vessel delivery, and committing to a vessel sale - Purchase Options Exercised (July-August 2025): Seven sale-and-leaseback facilities with ICBC Leasing[141](index=141&type=chunk) - New Secured Revolving Credit Facility (10 July 2025): **USD 715 million**, with an uncommitted Accordion Tranche of up to **USD 417 million**[141](index=141&type=chunk) - Drawdown and Refinancing (21 July 2025): **USD 290 million** drawn, used to repay and terminate **USD 216 million** and **USD 84 million** facilities[142](index=142&type=chunk) - Vessel Delivery (22 July 2025): IMO II – MR vessel, Ecomar Garonne, through ECOMAR JV[143](index=143&type=chunk) - Purchase Obligation Settled (25 July 2025): With Sole Shipping upon maturity of sale-and-leaseback facility[143](index=143&type=chunk) - Vessel Sale Commitment (6 August 2025): Hafnia Lupus to an external party[144](index=144&type=chunk) [Note 14: Fleet List](index=45&type=section&id=Note%2014%3A%20Fleet%20list) This note provides a comprehensive list of Hafnia's fleet, detailing each vessel's name, DWT, year built, type, and ownership status - Detailed Fleet Listing: Includes vessel name, DWT, year built, and type[145](index=145&type=chunk)[147](index=147&type=chunk) - Joint Venture Vessels: - Vista Shipping Joint Venture: Hafnia Hong Kong, Hafnia Shanghai, Hafnia Guangzhou, Hafnia Beijing, Hafnia Shenzhen, Hafnia Nanjing, Hafnia Languedoc, Hafnia Larvik, Hafnia Loire, Hafnia Lillesand - H&A Shipping Joint Venture: Yellow Stars, PS Stars - Ecomar Joint Venture: Ecomar Gascogne, Ecomar Guyenne[145](index=145&type=chunk)[147](index=147&type=chunk) - Time Chartered-in Vessels: Sunda, Karimata, Orient Challenge, Orient Innovation[145](index=145&type=chunk)[147](index=147&type=chunk) - Vessel Renaming: Hafnia Nile renamed to Hafnia Shannon on **16 July 2025**[145](index=145&type=chunk) [Note 15: Non-IFRS Measures](index=49&type=section&id=Note%2015%3A%20Non-IFRS%20measures) This note defines and reconciles non-IFRS measures, **Adjusted EBITDA** and **TCE**, used to assess operating performance and comparability within the industry - Adjusted EBITDA Definition: Earnings before financial income and expenses, depreciation, impairment, amortization, and taxes, with adjustments for gain/(loss) on disposal of vessels/subsidiaries, share of profit/loss from equity accounted investments, interest income/expense, capitalized financing fees written off, and other finance expenses[150](index=150&type=chunk) - Adjusted EBITDA Purpose: Supplemental measure to assess operating performance and compliance with financial covenants, increasing comparability by excluding disparate effects of interest, depreciation, impairment, amortization, and taxes[151](index=151&type=chunk) - Adjusted EBITDA Caution: Not an alternative to net income or other IFRS measures; may vary among companies[152](index=152&type=chunk) - TCE Definition: Income from time charters and voyage charters (including Pools) for Hafnia Vessels and TC Vessels, less voyage expenses[155](index=155&type=chunk) - TCE Purpose: Standard shipping industry performance measure to compare period-to-period changes despite charter type mix, assisting management in deployment decisions and evaluating financial performance[155](index=155&type=chunk)[156](index=156&type=chunk) - TCE Caution: May not be comparable to other shipping companies' reports[156](index=156&type=chunk) - Operating Days Definition: Total number of days (including waiting time) a vessel is owned, partly owned, operated under bareboat, or time chartered-in, net of technical off-hire days[160](index=160&type=chunk) Reconciliation of Adjusted EBITDA (USD'000) **Reconciliation of Adjusted EBITDA to Profit/(loss) for the financial period (USD'000):** | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Profit for the financial period | 75,335 | 259,197 | 138,525 | 478,768 | | Income tax expense | 2,660 | 1,572 | 4,079 | 3,315 | | Depreciation charge | 50,977 | 54,595 | 100,502 | 108,388 | | Amortisation charge | 107 | 251 | 212 | 587 | | Loss on disposal of assets | — | 100 | — | 100 | | Share of profit of equity-accounted investees, net of tax | (2,957) | (8,553) | (5,993) | (15,842) | | Interest income | (3,424) | (4,479) | (6,084) | (7,284) | | Interest expense | 12,475 | 13,215 | 26,836 | 29,042 | | Capitalised financing fees written off | 6 | — | 792 | 1,663 | | Other finance (income)/expense | (1,005) | 1,185 | 398 | 5,398 | | **Adjusted EBITDA** | **134,174** | **317,083** | **259,267** | **604,135** | Reconciliation of Revenue to TCE Income per Operating Day (USD'000) **Reconciliation of Revenue to TCE income per operating day (USD'000):** | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Revenue (Hafnia Vessels and TC Vessels) | 346,564 | 563,098 | 686,907 | 1,084,890 | | Less: Voyage expenses (Hafnia Vessels and TC Vessels) | (115,406) | (145,739) | (236,998) | (288,729) | | **TCE income** | **231,158** | **417,359** | **449,909** | **796,161** | | Operating days | 9,454 | 10,635 | 18,968 | 21,091 | | **TCE income per operating day** | **24,452** | **39,244** | **23,720** | **37,750** |

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]