Hafnia Limited(HAFN) - 2025 Q2 - Quarterly Report

CEO Statement CEO Statement Summary 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] - New Joint Venture: Seascale Energy (bunker procurement with Cargill), commenced mid-May 2025[5] - Refinancing: Concluded USD 715 million revolving credit facility in July[6] Safe Harbour Statement Safe Harbour Statement Content 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] - Caution: Forward-looking statements are not guarantees of future performance; actual results may differ materially[15] - 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][18] Highlights – Q2 and H1 2025 Financial Highlights – Q2 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 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 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] - Global Oil Demand Forecast (IEA 2025): Increase of 0.7 million barrels per day to 103.7 million barrels per day[32] - OPEC+ Production Boost (September): 0.5 million barrels per day, supporting crude and product tanker markets[32] - Product Tanker Supply Outlook: Positive, limited newbuild activity in 2025, orderbook-to-fleet ratio ~20%[34] - 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] Fleet Overview 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] - 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] 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 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] - Record Date: 4 September 2025[41] - Euronext VPS Oslo Stock Exchange: Ex-dividend date 3 September 2025, payment on/about 15 September 2025[41] - Depository Trust Company: Ex-dividend date 4 September 2025, payment on/about 10 September 2025[42] - Interim Financial Information Status: Not audited or reviewed by auditors[44] - Investor Webcast/Conference Call: 27 August 2025, 8:30 pm SGT/2:30 pm CET/8:30 am EST[45] Key Figures Key Figures Summary 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 Condensed Consolidated Statement of Comprehensive Income 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 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 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 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 Dividend Policy Details 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] - Q2 2025 Payout Ratio: 80%[64] - Q2 2025 Dividend Amount: USD 60.3 million or USD 0.1210 per share[64] - Board Considerations: Capital requirements, financial condition, business conditions, legal/contractual restrictions[63] - Additional Distribution Method: Company may buy back shares[62] Coverage of Earning Days Coverage of Earning Days Summary 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] Tanker Segment Results Tanker Segment Results Summary 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 Risk Factors Summary 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] - Market Volatility Factors: - Supply: Newbuilds, demolition of older tonnage, legislation - Demand: Global economic activity[74] - Key Financial Risks: - Increases in operating costs (fuel oil) - Interest rate risk - Credit risk - Liquidity risk - Capital risk[75] Responsibility Statements Responsibility Statements Content 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] - Accuracy: Gives a true and fair view of Group's assets, liabilities, financial position, and income statement[76] - Content Confirmation: Includes fair review of important events, principal risks, and major related party transactions[76] - Authorization Date: 27 August 2025[77] Notes to the Condensed Consolidated Interim Financial Information Note 1: General Information 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] - Domicile: Redomiciled to Singapore on 1 October 2024[79] - Principal Activity: Global maritime services in the product tankers market[79] - Authorization Date: 27 August 2025[80] Note 2: Basis of Preparation 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] - Context: To be read with annual audited financial statements for 2024 (IFRS-compliant)[81] - Scope: Includes selected explanatory notes for significant events and transactions[81] Note 3: Material Accounting Policies 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] - New Standard Applied (2025): Amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability'[83] - Judgments and Estimates: Consistent with 2024 consolidated financial statements[83] Note 4: Revenue 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] Note 5: Property, Plant and Equipment 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] - Mortgaged Vessels: Total carrying amount of USD 1,782.0 million as security for bank borrowings[92] - Time Chartered-in Vessels with Purchase Options (as of 30 June 2025): Six MRs and two LR1s[92] 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 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] - Treasury Shares Held (as of 30 June 2025): 14,573,890 shares[96] - Treasury Shares Intended for Cancellation: 12,721,255 shares[96] 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 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] - Facility Termination: USD 374 million facility terminated as of 30 June 2025[99] - New Facility (July 2025): USD 715 million Secured Revolving Credit Facility[141] 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] - 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] Note 8: Commitments 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 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][114][117] 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 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 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 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] 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 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] 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 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] 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] 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] 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] 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] - Commencement of Operations: March 2025[133] - Principal Activity: Bunker procurement services[133] 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 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][135][136] Note 13: Subsequent Events 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] - New Secured Revolving Credit Facility (10 July 2025): USD 715 million, with an uncommitted Accordion Tranche of up to USD 417 million[141] - Drawdown and Refinancing (21 July 2025): USD 290 million drawn, used to repay and terminate USD 216 million and USD 84 million facilities[142] - Vessel Delivery (22 July 2025): IMO II – MR vessel, Ecomar Garonne, through ECOMAR JV[143] - Purchase Obligation Settled (25 July 2025): With Sole Shipping upon maturity of sale-and-leaseback facility[143] - Vessel Sale Commitment (6 August 2025): Hafnia Lupus to an external party[144] Note 14: Fleet List 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][147] - 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][147] - Time Chartered-in Vessels: Sunda, Karimata, Orient Challenge, Orient Innovation[145][147] - Vessel Renaming: Hafnia Nile renamed to Hafnia Shannon on 16 July 2025[145] Note 15: Non-IFRS Measures 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] - 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] - Adjusted EBITDA Caution: Not an alternative to net income or other IFRS measures; may vary among companies[152] - TCE Definition: Income from time charters and voyage charters (including Pools) for Hafnia Vessels and TC Vessels, less voyage expenses[155] - 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][156] - TCE Caution: May not be comparable to other shipping companies' reports[156] - 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] 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 |