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 quarterly result 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][19] - The total cash dividend declared for the quarter was $73.2 million, corresponding to a payout ratio of 80% [7] Business Line Data and Key Metrics Changes - The fee-based business in pools contributed $7.1 million in fee income, maintaining steady performance [17] - Time Charter Equivalent (TCE) income for the quarter was $247 million, with an average TCE of $26,040 per day [18] 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 [8][9] 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, having delivered dividends consistently over the past several years [6][7] - The company is advancing its sustainability initiatives and technological capabilities to strengthen its competitive edge in the maritime sector [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying market strength and anticipated that seasonal demand would support the oil market, driving higher earnings [25] - The company expects to maintain a solid financial position with an operational cash flow break-even of below $13,000 per day for 2026 [21] Other Important Information - The company has been actively managing its liquidity position, ending the quarter with over $630 million in total available liquidity [20] - The company has recorded approximately 740 off-hire days in Q3 due to dry dock delays, but expects off-hire days to decline in Q4 [18][19] Q&A Session Summary Question: Coverage of LR2 fleet in 2026 - The company has covered more of its LR2 fleet for three years, with three ships on three-year deals and one on a two-year deal [27][28] Question: Impact of Russian CPP exports decline - The decline in Russian clean petroleum product exports has been positive for the company, with no significant competition from the dark fleet observed [29][30] Question: Red Sea reopening impact - 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 [32][35] Question: Purchase options on vessels under sale and leaseback - The refinancing has improved cash flow break-even significantly, expected to be below $13,000 per day for next year [40][41] Question: Net LTV forecast and dividend policy - The net LTV at the end of Q3 was 20.5%, and the dividend payout ratio will depend on market values in the quarter [44][45]

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 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]