Hafnia Limited(US:HAFN)2025-12-01 11:17Financial Performance - Hafnia reported a net profit of USD 91.5 million for Q3 2025, with earnings per share of USD 0.18, a decrease from USD 215.6 million and USD 0.42 per share in Q3 2024[21]. - Time Charter Equivalent (TCE) earnings for Q3 2025 were USD 247.0 million, averaging USD 26,040 per day, down from USD 361.6 million and USD 36,000 per day in Q3 2024[22]. - The company achieved an adjusted EBITDA of USD 150.5 million in Q3 2025, compared to USD 257.0 million in Q3 2024[23]. - The total operating revenue for Q3 2025 was USD 366.5 million, with a year-to-date total of USD 1,053.4 million[43]. - Profit before tax for Q3 2025 was USD 92.2 million, leading to a year-to-date profit before tax of USD 234.8 million[43]. - Adjusted EBITDA for Q3 2025 reached USD 150.5 million, with a year-to-date total of USD 409.7 million[43]. - The return on equity (RoE) for Q3 2025 was 15.9%, up from 13.2% in Q2 2025[43]. - Profit for Q3 2025 was USD 91.5 million, a decrease of 57.5% compared to USD 215.6 million in Q3 2024[55]. - Operating cash flow before working capital changes for Q3 2025 was USD 151.3 million, down 41.3% from USD 257.8 million in Q3 2024[55]. - The income tax expense for Q3 2025 was $699,000, compared to $1,164,000 in Q3 2024, reflecting a decrease of 40.0%[130]. - The gain on disposal of assets for Q3 2025 was a loss of $2,769,000, compared to a loss of $15,621,000 in Q3 2024[130]. - Share of profit of equity-accounted investees, net of tax, was a loss of $4,351,000 in Q3 2025, compared to a loss of $4,072,000 in Q3 2024[130]. Dividend and Payout - The company announced a dividend payout of USD 73.2 million, or USD 0.1470 per share, resulting in a payout ratio of 80% for Q3 2025[25]. - Hafnia will pay a quarterly dividend of USD 0.1470 per share, with the record date on December 9, 2025[39]. - The quarterly dividend payout ratio for Q3 2025 is set at 80%, amounting to USD 73.2 million or USD 0.1470 per share[59]. Assets and Liabilities - Hafnia's net asset value (NAV) at the end of Q3 was approximately USD 3.4 billion, with an NAV per share of about USD 6.76[5]. - Total assets as of September 30, 2025, amounted to USD 3,570.1 million, with total liabilities of USD 1,239.5 million[43]. - Total assets decreased to USD 3,570,144,000 as of September 30, 2025, down from USD 3,702,290,000 at the end of 2024, representing a decline of approximately 3.56%[52]. - Shareholders' equity increased to USD 2,330,690,000, up from USD 2,262,506,000, reflecting a growth of about 3.01%[52]. - Total liabilities decreased to USD 1,239,454,000, down from USD 1,439,784,000, indicating a reduction of about 13.87%[52]. - Cash at bank and on hand decreased to USD 132,489,000 from USD 195,271,000, a decline of approximately 32.14%[52]. - Borrowings reduced to USD 894,524,000, down from USD 1,122,249,000, representing a decrease of about 20.29%[52]. - The net loan-to-value (LTV) ratio improved to 20.5% in Q3 2025, down from 24.1% in Q2 2025[43]. Fleet and Operations - Hafnia's fleet at the end of Q3 2025 consisted of 117 owned vessels and 9 chartered-in vessels, including 10 LR2s, 32 LR1s, 60 MRs, and 24 Handy vessels[35]. - Fleet growth in Q3 was minimal, with the orderbook-to-fleet ratio declining to about 18% as of November 2025, indicating a tightening supply in the clean product segment[33]. - The average estimated broker value of the owned fleet was USD 3,805 million, with USD 3,388 million attributed to Hafnia's 100% owned fleet[36]. - The average operating days for MR vessels in Q3 2025 were 4,195, with an OPEX of USD 8,476 per calendar day[67]. - The Group's fleet consists of various types, including Handy, LR1, and LR2 vessels, with the latest additions being built in 2023 and 2024[122]. - The Group's strategic focus includes expanding its fleet through new builds and acquisitions to enhance operational capacity[122]. - The Group's operational strategy emphasizes the importance of maintaining a modern fleet to meet market demands and improve efficiency[122]. Investments and Joint Ventures - Hafnia has a preliminary agreement to acquire 14.45% of Torm shares, pending the appointment of a new independent board chair[7]. - The Group's interest in joint ventures increased to USD 90,928,000 as of September 30, 2025, up from USD 81,371,000 at the end of 2024[97]. - Vista Shipping reported revenue of USD 73,034,000 for the period ending September 30, 2025, with the Group's share of profit amounting to USD 11,860,000[100]. - H&A Shipping generated revenue of USD 8,185,000 for the same period, with the Group's share of total comprehensive income showing a loss of USD 16,000[102]. - Ecomar joint venture established in June 2023, with 50% ownership by the Group, focusing on shipowning and financing newbuild programs[103]. - Ecomar's financials for the year ending September 30, 2025, show revenue of $14.783 million and a total comprehensive loss of $2.418 million for the Group's share[104]. - Complexio, previously known as Q-AI, was acquired in March 2023, with a 30.5% ownership interest, focusing on software development[105][106]. - Complexio reported revenue of $919,000 for the year ending September 30, 2025, with a total comprehensive loss of $3.483 million for the Group's share[109]. - Seascale joint venture established in March 2025, with 50% ownership by the Group, providing bunker procurement services[111]. - Seascale's financials show revenue of $5.253 million and a total comprehensive income of $1.203 million for the Group's share as of September 30, 2025[110]. Market Outlook - The product tanker market is expected to strengthen in the winter, supported by increased tonne-mile activity and operational delays due to geopolitical developments[8]. - As of November 14, 2025, 71% of Q4 earning days are covered at an average rate of USD 25,610 per day, with 15% of 2026 earning days covered at USD 24,506 per day[11]. - The Group aims to leverage its fleet's capabilities to capture growth opportunities in the petroleum transportation market[122].