Financial Data and Key Metrics Changes - The company reported a net profit of $109.7 million in Q4, marking it as the strongest quarter of the year, with an unexpected level of market strength [10] - The dividend payout ratio is set at 80% when the net loan-to-value is between 20% and 30%, and it will increase to 90% if it drops below 20% [11][13] - The market capitalization of the company is currently $3.7 billion, reflecting a 30% increase this year [1] Business Line Data and Key Metrics Changes - Hafnia operates close to 200 vessels, primarily in the transportation of refined oil products, with a significant portion of earnings derived from the spot market [4] - The company manages approximately 80 vessels on behalf of third-party owners, providing commercial management services [5] Market Data and Key Metrics Changes - The crude market has been strong, pulling many vessels from the clean oil transportation sector, resulting in a decrease in supply [20] - Geopolitical uncertainties have influenced demand, particularly with the situation in Venezuela positively impacting the US Gulf market [21] Company Strategy and Development Direction - Hafnia emphasizes a culture of innovation and active management, focusing on capturing opportunities during market lows and returning value to shareholders during highs [6][7] - The company is exploring consolidation opportunities, having acquired a 14% stake in TORM, which is seen as a strategic investment to enhance exposure in the product tanker market [69] Management's Comments on Operating Environment and Future Outlook - The management noted that the supply side of the market has seen almost zero growth, while demand has been bolstered by geopolitical factors and strong refinery margins [20][32] - There is cautious optimism regarding the market strength in Q1, with expectations that it may approach the high-profit levels seen in 2022 and 2023 [33] Other Important Information - Hafnia is investing in strategic projects like Complexio, which focuses on utilizing AI to enhance operational efficiency [90][91] - The company is aware of the potential impact of AI on logistics and emphasizes the importance of ensuring that technology investments yield a return on equity [96][97] Q&A Session Summary Question: What is behind your less positive market outlook, especially with mixed market outlooks from peers for 2026? - The management highlighted concerns regarding the sanctioned fleet and dark fleet, which could significantly impact market dynamics [83] Question: Is some of Hafnia's LR1s or LR2s trading crude? - Yes, some LR1s are trading as Panamaxes in the Caribbean Sea, which is currently a strong market [82] Question: What specific market or fleet-related factors should investors focus on through 2026 and 2027? - Investors should consider the interrelated nature of the product tanker market and the liquidity of medium-range vessels, as they are crucial for market dynamics [85][87]