Hafnia Limited(US:HAFN)2025-12-01 14:32Financial 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]