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]

Company Overview - Hafnia Limited (HAFN) is part of the Transportation group, which consists of 122 companies and is currently ranked 13 in the Zacks Sector Rank [2] - The Zacks Rank is a stock-picking model that focuses on earnings estimates and revisions, with HAFN holding a Zacks Rank of 2 (Buy) [3] Performance Analysis - Year-to-date, Hafnia Limited has returned approximately 1.3%, outperforming the Transportation sector, which has an average return of -7.2% [4] - In comparison, REV Group (REVG) has shown significant performance with a return of 55.5% since the beginning of the year [4] Earnings Estimates - The Zacks Consensus Estimate for Hafnia Limited's full-year earnings has increased by 3% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] - In the Transportation - Shipping industry, which includes 38 stocks, Hafnia Limited is performing better than the average loss of 0.1% this year [5] Industry Context - The Transportation - Services industry, which includes REV Group, has 23 stocks and is currently ranked 210, with an average return of -3.3% since the start of the year [6]

[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 ...

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]