Financial Data and Key Metrics Changes - Hafnia reported a net profit of $79.6 million for Q4 2024, contributing to a full-year net profit of $774 million, indicating strong performance despite moderated market conditions [7][35] - Total TCE income for the year reached $1.4 billion, with Q4 TCE income at $233.6 million [8][34] - The company achieved an adjusted EBITDA of $131 million for Q4 and $992 million for the full year, reflecting operational resilience [34] Business Line Data and Key Metrics Changes - Core operations generated strong earnings, with adjacent fee-generating businesses contributing $35.2 million in full-year revenue [8] - Commercial pool management and bunkering businesses performed well, generating $6.9 million in Q4 [34] Market Data and Key Metrics Changes - The product tanker market experienced strong earnings in the first nine months of 2024, but rates softened in Q4 due to increased cannibalization from the crude sector [16][33] - Clean petroleum product loadings rebounded significantly in December, driven by reduced crude tanker cannibalization and higher export volumes from the US Gulf [18][31] Company Strategy and Development Direction - Hafnia is focused on sustainability and has initiated a fleet renewal strategy, including the introduction of dual-fuel methanol vessels [11] - The company aims to enhance shareholder returns through share buybacks, having repurchased approximately 14.4 million shares at about 70% of NAV [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying strong market fundamentals for 2025, despite current uncertainties [41][48] - The company anticipates robust net profits in 2025, estimated between $300 million to $400 million, supported by favorable market conditions [43] Other Important Information - Hafnia's net loan-to-value ratio increased to 23.2% due to a decline in vessel market values, with a payout ratio of 80% for Q4 [14][38] - The company has hedged approximately half of its interest rate exposure at a weighted average base rate of 2.01% [37] Q&A Session Summary Question: Why pursue the share buyback program with low share prices? - Management noted the decision was based on a significant disconnect between share price and NAV, leading to a buyback program of around $50 million in Q4 and another $25 million in Q1 [51][52] Question: How are China and India adhering to sanctions? - Management observed that both countries are adhering to sanctions, with a significant drop in imports from sanctioned regions, particularly Iran [58][61] Question: What is the current state of crude cannibalization? - Cannibalization has returned to normal averages, with recent data indicating a slight elevation in February [63][64] Question: What is the impact of the Red Sea reopening on the market? - Management concluded that the reopening would have a marginal impact on the market, as the volume lost due to longer trade routes would be offset by increased competition from U.S. refiners [75] Question: What is the breakeven TCE rate? - The operating cash flow breakeven rate is around $14,000, expected to be slightly higher for Q1 [161]

Financial Data and Key Metrics Changes - For Q3 2024, the company achieved a net profit of $215.6 million, bringing the total net profit for the first nine months of 2024 to $694.4 million, marking the best nine-month performance in the company's history [6] - The net loan-to-value (LTV) ratio decreased to 19.1% at the end of Q3 from 21.3% in Q2, reflecting a strengthening capital structure [11][30] - The company generated TCE income of $361.6 million for Q3, with year-to-date TCE income exceeding $1.15 billion [27] Business Line Data and Key Metrics Changes - The fee-focused commercial pool and bunker procurement businesses contributed $7.8 million in fee income during the quarter [27] - The average TCE per day was $33,549 based on 10,776 earning days, with average spot TCE per day at $34,410 [32] Market Data and Key Metrics Changes - The product tanker market has experienced seasonal softness due to refinery maintenance and lower margins, but underlying demand remains robust [16] - Daily CPP and chemical loadings have steadily increased, reaching their highest levels early in October 2024 [17] - The average age of the global product tanker fleet is increasing, with older vessels being underutilized due to customer preference for younger tonnage [23] Company Strategy and Development Direction - The company has successfully completed its redomiciliation from Bermuda to Singapore, enhancing its operational advantages [7] - A share buyback program of up to $100 million has been authorized, reflecting the company's commitment to shareholder value while maintaining strategic flexibility [12] - The company aims to continue delivering strong and sustainable value to shareholders, with a focus on optimizing its capital structure and enhancing returns [11][30] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the recent dip in vessel earnings is more influenced by market sentiment than fundamental factors, with expectations for earnings to normalize as winter approaches [20] - The outlook for product tankers remains positive, with global oil demand expected to rise, driving further increases in tanker demand and utilization [22][25] - The company is optimistic about its strategic investments in technology and sustainability initiatives, positioning itself for long-term success [39][40] Other Important Information - The company plans to pay a dividend of $0.379 per share for Q3, totaling $194.1 million, marking the highest dividend payout ratio in its history [11] - The company has a cash balance of approximately $200 million and total liquidity of over $600 million at the end of Q3 [29] Q&A Session Summary Question: Clarification on dividend policy and loan to value calculations - Management indicated that they have been consistent with the dividend policy and any changes would be discussed by the Board [42] Question: Impact of the Suez Canal reopening on market dynamics - Management suggested that while reopening could create extra supply, the current seasonal strength in the crude tanker segment may offset some negative impacts [44] Question: Details on the authorized buyback program - The buyback program is set to be initiated from December 2nd until January 27th, with the latter date marking the start of a blackout period ahead of financial results [48] Question: Future focus on dividends versus buybacks - Management confirmed that while they have always prioritized cash dividends, the current market conditions have made share buybacks a viable option [52] Question: Strategy regarding vessels with purchase options - Management stated that decisions on exercising purchase options will depend on market conditions and the economics of the vessels involved [55]

Financial Highlights - TCE income reached USD 361.6 million in Q3 2024, compared to USD 310.3 million in Q3 2023[13] - Adjusted EBITDA was USD 257.0 million in Q3 2024, up from USD 220.8 million in Q3 2023[13] - Net profit was USD 215.6 million (USD 0.42 per share) in Q3 2024, compared to USD 146.9 million (USD 0.29 per share) in Q3 2023[13] - A dividend of USD 194.1 million (USD 0.3790 per share) was declared, representing a 90% payout ratio for Q3 2024[13] - Net LTV ratio decreased to 19.1% at the end of Q3 2024, down from 21.3% in Q2 2024[20] Operational Performance - TCE for Q3 2024 was USD 33,549 per operating day, with Spot TCE at USD 34,410 per operating day[13] - The commercially managed pool and bunker procurement business generated an income of USD 7.8 million in Q3 2024[13] - As of November 18, 2024, 71% of total earning days of the fleet were covered for Q4 2024 at USD 24,004 per day[13] Market Outlook - Cargo volumes and tonne-miles for CPPs and chemicals have steadily increased, reaching their highest level in six years from October 2018 to 2024[31] - Net Asset Value is approximately USD 4.6 billion, equivalent to approximately USD 9.07 / ~NOK 95.24 per share[16]