Financial Data and Key Metrics Changes - Hafnia reported a net profit of $79.6 million for Q4 2024, contributing to a full-year net profit of $774 million, indicating strong performance despite moderated market conditions [7][35] - Total TCE income for the year reached $1.4 billion, with Q4 TCE income at $233.6 million [8][34] - The company achieved an adjusted EBITDA of $131 million for Q4 and $992 million for the full year, reflecting operational resilience [34] Business Line Data and Key Metrics Changes - Core operations generated strong earnings, with adjacent fee-generating businesses contributing $35.2 million in full-year revenue [8] - Commercial pool management and bunkering businesses performed well, generating $6.9 million in Q4 [34] Market Data and Key Metrics Changes - The product tanker market experienced strong earnings in the first nine months of 2024, but rates softened in Q4 due to increased cannibalization from the crude sector [16][33] - Clean petroleum product loadings rebounded significantly in December, driven by reduced crude tanker cannibalization and higher export volumes from the US Gulf [18][31] Company Strategy and Development Direction - Hafnia is focused on sustainability and has initiated a fleet renewal strategy, including the introduction of dual-fuel methanol vessels [11] - The company aims to enhance shareholder returns through share buybacks, having repurchased approximately 14.4 million shares at about 70% of NAV [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying strong market fundamentals for 2025, despite current uncertainties [41][48] - The company anticipates robust net profits in 2025, estimated between $300 million to $400 million, supported by favorable market conditions [43] Other Important Information - Hafnia's net loan-to-value ratio increased to 23.2% due to a decline in vessel market values, with a payout ratio of 80% for Q4 [14][38] - The company has hedged approximately half of its interest rate exposure at a weighted average base rate of 2.01% [37] Q&A Session Summary Question: Why pursue the share buyback program with low share prices? - Management noted the decision was based on a significant disconnect between share price and NAV, leading to a buyback program of around $50 million in Q4 and another $25 million in Q1 [51][52] Question: How are China and India adhering to sanctions? - Management observed that both countries are adhering to sanctions, with a significant drop in imports from sanctioned regions, particularly Iran [58][61] Question: What is the current state of crude cannibalization? - Cannibalization has returned to normal averages, with recent data indicating a slight elevation in February [63][64] Question: What is the impact of the Red Sea reopening on the market? - Management concluded that the reopening would have a marginal impact on the market, as the volume lost due to longer trade routes would be offset by increased competition from U.S. refiners [75] Question: What is the breakeven TCE rate? - The operating cash flow breakeven rate is around $14,000, expected to be slightly higher for Q1 [161]