Financial Data and Key Metrics Changes - For Q3 2025, the company achieved an adjusted EBITDA of $150.5 million and a net profit of $91.5 million, marking the best quarter of the year [4][17] - The net loan-to-value (LTV) ratio improved from 24.1% in Q2 to 20.5% in Q3, supported by strong operational cash flows [6][18] - The company declared a cash dividend of $73.2 million, corresponding to a payout ratio of 80% for the quarter, marking 15 consecutive quarters of dividend payments [7][24] Business Line Data and Key Metrics Changes - The fee-based business in pools contributed $7.1 million in fee income, maintaining steady performance [17] - The average time charter equivalent (TCE) income was reported at $26,040 per day, with total TCE incomes reaching $247 million [17] Market Data and Key Metrics Changes - The product tanker market showed significant strength in Q3, driven by higher trading volumes and strong refinery margins, particularly from increased export flows out of the Middle East and Asia [4][8] - Clean petroleum product volumes on water for 2025 continued to track above the four-year average, with Q3 showing an unseasonal increase compared to previous years [8][9] - The overall clean petroleum product capacity growth in 2025 has been limited, with only about 0.5% net growth in clean product tanker supply [11] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold four older vessels and announced a preliminary agreement to acquire 14.45% of TORM shares [5][6] - Hafnia aims to maintain a transparent and consistent dividend policy, ensuring sustainable and predictable returns across market cycles [6][7] - The company is advancing its sustainability strategy and technological capabilities to strengthen its competitive edge in the maritime sector [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying market strength and the potential for higher earnings due to seasonal demand as winter approaches [24] - The company anticipates a solid financial position and effective cost structure, supporting an operational cash flow break-even of below $13,000 per day for 2026 [21][24] - Geopolitical tensions, particularly related to Russian exports, have influenced the market dynamics, with a decline in clean petroleum product exports from Russia [19][20] Other Important Information - The company has made significant progress in reducing its weighted average debt margins by more than 50 basis points, strengthening its financial position [18][20] - The liquidity position at the end of the quarter was over $630 million, consisting of around $130 million in cash and $500 million in environmental financing capacity [20] Q&A Session Summary Question: Coverage of the LR2 fleet in 2026 - The company has covered 67% of its LR2 fleet for 2026, with three ships on three-year deals and one on a two-year deal [25][26] Question: Impact of Russian CPP exports decline - The decline in Russian clean petroleum product exports has positively affected the market, with conventional tonnage increasing supply to South America [27][28] Question: Red Sea reopening impact on fleet supply - The analysis indicated that the reopening of the Red Sea would have a limited impact on fleet supply, with a net effect of approximately 43 MR units [34][35] Question: Changes in insurance costs for transiting the Red Sea - There has not been a significant shift in insurance costs for transiting the Red Sea, with limited movement from well-known owners on the clean side [38] Question: Effects of purchase options on cash break-even - The refinancing and purchase options have significantly improved cash flow break-even, expected to be below $13,000 per day for the next year [42] Question: Future fleet renewal or growth strategy - The company is cautious about new builds at current pricing levels and is focusing on strategic acquisitions like the TORM stake [43][44] Question: Net LTV forecast for Q4 - The net LTV at the end of Q3 was 20.5%, and the company is consistent with its dividend policy, which will depend on market values in the quarter [47][48]

Financial Performance - Q3 2025 TCE income was USD 247 million, with a year-to-date (YTD) 9M 2025 figure of USD 6969 million[15] - Adjusted EBITDA for Q3 2025 reached USD 1505 million, and YTD 9M 2025 stood at USD 4097 million[15] - Net profit for Q3 2025 was USD 915 million (USD 018 per share), while YTD 9M 2025 amounted to USD 230 million (USD 046 per share)[15] - Dividends declared for Q3 2025 totaled USD 732 million (USD 01470 per share), representing 80% of the net profit[15] - Net LTV at the end of Q3 2025 improved to 205%[28] Fleet and Market Dynamics - As of November 14, 2025, 71% of the fleet's total earning days were covered for Q4 2025 at USD 25610 per day[16] - Approximately 88% of coated LR2 newbuilds have migrated into the Aframax dirty trading segment YTD 2025[43] - The effective increase in clean trading supply is only around 11 million DWT, equivalent to 05% clean trading supply growth after factoring in LR2 migration and sanctioned vessels[50] - Clean tonnage growth from 2025-2028 is projected to be around 11%, with nearly half of this increase expected in 2026[54] Strategic Initiatives - Hafnia entered into a joint venture with Cargill to create Seascale Energy, a stronger bunker procurement entity[21, 113] - The company has invested in several dual-fuel newbuilds, including LR2 LNG dual-fueled vessels and Chemical IMO-II MR Methanol dual-fueled vessels[114]

Financial 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].

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

Group 1 - Hafnia Limited has entered into a binding share purchase agreement with Oaktree Capital Management to acquire approximately 14.1 million A shares in TORM plc [1]

Core Viewpoint - TORM plc has been informed that Hafnia Limited will acquire approximately 14.1 million A shares from Oaktree Capital Management, representing about 14.45% of TORM's issued share capital at a price of USD 22 per share, totaling approximately USD 311.43 million [1][2]. Group 1: Share Purchase Details - The share purchase is contingent upon entering a definitive agreement and fulfilling customary conditions, including regulatory approvals and the appointment of a new independent board chairman for TORM [2]. - TORM is not involved in the transaction and has no additional information regarding the share purchase [2]. Group 2: Company Overview - TORM is recognized as one of the leading carriers of refined oil products globally, operating a fleet of product tanker vessels with a strong focus on safety, environmental responsibility, and customer service [3]. - Founded in 1889, TORM conducts business worldwide and is listed on Nasdaq in Copenhagen and New York under the tickers TRMD A and TRMD [3].

Financial Data and Key Metrics Changes - The company reported a net result of $75.3 million for Q2, which is an improvement compared to Q1, indicating a resilient market performance [3][4] - The dividend payout ratio remains at 80% of net profit, consistent with the company's dividend policy [4][17] - The net asset value (NAV) is approximately NOK 67 million, with a narrowing gap to the current trading price of NOK 61 [12][13] Business Line Data and Key Metrics Changes - The company operates around 130 product tankers and manages about 80 additional vessels for other owners, totaling over 200 vessels in operation [6][7] - The company is primarily exposed to the spot market, with approximately 85% to 90% of its operations in this segment, which has been beneficial in the recent market environment [7] Market Data and Key Metrics Changes - The order book for product tankers is reported to be around 19% to 20% of the existing fleet, but the effective order book is closer to 13% to 14% when accounting for LR2 ships that primarily serve the crude market [29][30] - The market is currently undersupplied, with expectations for fleet growth of at least 5% per year to maintain balance [31][32] Company Strategy and Development Direction - The company aims to maintain an average fleet age below 10 years, currently at 9.4 years, to ensure competitiveness and compliance with environmental regulations [10][11] - The company is focusing on consolidation within the industry rather than acquiring individual assets, preferring to return capital to shareholders when attractive opportunities are not present [21][22] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the current market conditions, noting that Q3 has started strong, with various factors contributing to a stable outlook [40][41] - The geopolitical situation, including the ongoing Ukraine war and issues in the Red Sea, is viewed as having a neutral impact on the product tanker market [25][26] Other Important Information - The company has established a joint venture with Cargill, named Seascale Energy, to optimize fuel procurement amidst changing energy dynamics [8] - The company has a revolving credit facility of approximately $700 million, which is seen as a standard business practice to enhance financial flexibility [19][20] Q&A Session Summary Question: What is the company's outlook for Q3 and 2026? - The company noted that Q3 has started strong, with various positive factors influencing the market, and does not foresee significant vulnerabilities [40][41] Question: Is the company optimizing the age of its fleet by selling older vessels? - Yes, the company has been actively selling older ships and plans to continue this strategy [44] Question: What is the motivation for acquiring new builds? - The company is currently not looking to order new builds due to high costs and long delivery times, preferring to focus on fleet modernization through secondhand tonnage [46][48] Question: What impact would it have if it becomes safe to sail through the Suez Canal and the Red Sea? - The company believes it would have a neutral impact on the product tanker market, as volume lost during the diversion would not significantly change [49][50]

Financial Data and Key Metrics Changes - For Q2 2025, the company achieved an adjusted EBITDA of $134.2 million and a net profit of $75.3 million, reflecting strong operational execution and market conditions [7][24] - The net asset value at the end of Q2 was approximately $3.3 billion, equating to an NAV of $6.55 per share [9] - The net loan-to-value (LTV) ratio remained unchanged at 24.1%, indicating a balance between reduced vessel market values and further debt reduction [11][29] Business Line Data and Key Metrics Changes - The commercial pool and bunkering operations contributed $7.9 million to overall results, with the Seascale Energy joint venture commencing operations in mid-May [7][24] - The average time charter equivalent (TCE) income for the quarter was $231.2 million, averaging $24,452 per day across vessel segments [26] Market Data and Key Metrics Changes - Clean product volumes transported on sanctioned vessels decreased by 17%, despite an increase in the number of product tankers sanctioned [13] - The company noted a strong recovery in accumulated tonne days for the clean segment, significantly surpassing the three-year average by Q3 [16] - Global refinery margins remain strong, with limited refinery outages projected for the remainder of the year, supporting higher volumes and longer haul trading [18] Company Strategy and Development Direction - The company aims to maintain a transparent and consistent dividend policy, having paid out 82.8% of net profit through dividends and share buybacks in 2024 [11] - Hafnia is focused on sustainability initiatives and aims to provide reliable, efficient, and sustainable solutions through partnerships and smart investments [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market fundamentals, citing limited fleet supply and improved spot rates as drivers for future performance [35] - The company anticipates robust net profits for the full year, with analysts' consensus indicating profits in the range of $300 million to $310 million [31] Other Important Information - The company secured a $750 million revolving credit facility in July, which is expected to reduce overall funding costs and lower cash flow breakeven levels [29][30] - The company has maintained a strong liquidity profile, with over $450 million in liquidity at the end of Q2 [25] Q&A Session Summary Question: Can you quantify the improvement to cash breakeven rates after refinancing? - The refinancing is expected to improve cash flow breakeven to roughly $13,000 per day, reflecting a margin improvement of 50 to 60 basis points [39][40] Question: What is driving the divergence in performance between MRs and LRs? - The LR1s and LR2s have remained resilient, and the improvement in MRs is more about catching up rather than LRs declining [48] Question: How do sanctions impact the market and tonnage availability? - OFAC sanctions are seen as more impactful, but EU and UK sanctions also significantly affect market dynamics, making it challenging to operate sanctioned vessels [56][58] Question: What are the expectations regarding the IMO's net zero framework? - The company believes the IMO will vote through the proposed regulations, despite geopolitical uncertainties [67][68] Question: Will the company consider share buybacks in addition to dividends? - The company maintains a clear dividend policy and will consider share buybacks as an addition to the existing policy [71][74]

Financial Data and Key Metrics Changes - The company reported a net profit of $75.3 million for Q2 2025, an improvement compared to Q1 2025, indicating a resilient market performance [3][4] - The dividend payout ratio remains at 80% of net profit, consistent with the company's dividend policy [4][16] - The net asset value (NAV) is approximately NOK 67 million, with the company narrowing the gap between its trading price and NAV [12][13] Business Line Data and Key Metrics Changes - Hafnia operates around 130 product tankers and manages about 80 additional vessels for other owners, totaling over 200 vessels in operation [6][7] - The company is primarily exposed to the spot market, with approximately 85% to 90% of its operations in this segment, which has been beneficial in the recent market environment [7] Market Data and Key Metrics Changes - The order book for product tankers is reported to be around 19% to 20% of the existing fleet, but the effective order book is closer to 13% to 14% when accounting for LR2 vessels primarily used for crude transportation [29][30] - The market is currently undersupplied, with a significant portion of the fleet being older and poorly maintained, leading to potential scrapping pressures in the future [32][33] Company Strategy and Development Direction - The company aims to maintain an average fleet age below ten years, currently at 9.4 years, to enhance operational efficiency and compliance with environmental regulations [10][11] - Hafnia is focusing on consolidation within the industry rather than acquiring individual assets, emphasizing the importance of scale and access to capital in the evolving market [20][21] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the current market conditions, noting that Q3 has started strong, with various factors contributing to a stable outlook [41][53] - The geopolitical situation, particularly regarding the Red Sea and Ukraine, is viewed as having a neutral impact on the product tanker market, with no significant return to previous import levels from Russia expected [25][26] Other Important Information - The company has established a joint venture with Cargill, named Seascale Energy, to optimize fuel procurement amidst changing energy dynamics [8] - The company has a revolving credit facility of approximately $700 million, which is seen as a standard business practice to enhance financial flexibility [18][19] Q&A Session Summary Question: What is the outlook for Q3 and 2026 regarding fixings? - The management noted that Q3 has started strong, with July being the best month of the year, and they expect a stable market moving forward [41][42] Question: Are you optimizing the age of your fleet by selling older vessels? - Yes, the company has been steadily selling older ships and plans to continue this strategy [45] Question: What is the motivation for acquiring new builds? - The management highlighted that ordering new ships would not yield deliveries until 2028, and current prices are not attractive, leading to a focus on consolidation instead [47][49] Question: What would be the impact if it becomes safe to sail through the U.S. and the Red Sea? - The management believes it would have a neutral effect on the product tanker market, as the volume lost during the diversion would not be fully regained [51] Question: How do you see the market currently? - The management sees the market as surprisingly strong, with stability across various parameters and no indications of a return to previous lows [53][55]

Financial Performance - Hafnia reported a TCE income of USD 231.2 million for Q2 2025, with USD 449.9 million for 1H 2025[15] - Adjusted EBITDA for Q2 2025 was USD 134.2 million, and USD 259.3 million for 1H 2025[15] - Net profit for Q2 2025 reached USD 75.3 million (USD 0.15 per share), and USD 138.5 million (USD 0.28 per share) for 1H 2025[15] - A dividend of USD 60.3 million was declared, representing 80% of the net profit, which equals USD 0.1210 per share[15, 26] Fleet and Coverage - As of August 15, 2025, 75% of the fleet's earning days for Q3 2025 were covered at USD 25,395 per day[18] - Net Asset Value (NAV) is approximately USD 3.3 billion, equivalent to around USD 6.55 or NOK 66.07 per share[20] Market Dynamics - Cargo volumes for CPPs and chemicals have increased since 2020, with tonne-miles reaching their highest levels in eight years[38] - The company anticipates that the recent OPEC+ decision to boost production in September will support crude tanker rates and benefit the product tanker market[38] Strategic Initiatives - Hafnia concluded a USD 715 million revolving credit facility on July 10, 2025[18, 77] - The company maintains a strong balance sheet with a Net LTV of 24.1%[25, 76] Supply Outlook - UK, UN, and OFAC have sanctioned more than 400 tankers in 2025, reflecting a total of approximately 800 vessels trading outside normal market competition[55]