Hafnia Limited, a leading product tanker company with a diversified and modern fleet of over 120 vessels, today announced results for the three and twelve months ended December 31, 2024.
Highlights and Recent Activity
Fourth Quarter 2024
Reported net profit of USD 79.6 million or USD 0.16 per share1 compared to USD 176.4 million or USD 0.35 per share in Q4 2023.
Commercially managed pool and bunker procurement business generated earnings of USD 6.9 million compared to USD 8.8 million in Q4 2023.
Time Charter Equivalent (TCE)2 earnings were USD 233.6 million compared to USD 329.8 million in Q4 2023, resulting in an average TCE2 of USD 22,692 per day.
Adjusted EBITDA2 of USD 131.2 million compared to USD 234.5 million in Q4 2023.
67% of total earning days of the fleet were covered for Q1 2025 at USD 23,989 per day as of February 13, 2025.
Net asset value (NAV)3 was approximately USD 3.8 billion, or approximately USD 7.63 per share (NOK 86.34), at quarter end, primarily driven by a decline in vessel values.
Hafnia will distribute a total of USD 14.6 million, or USD 0.0294 per share, in dividends, corresponding to a payout ratio of 18.4%. This, combined with USD 49.1 million utilized in share buybacks in Q4 2024, corresponds to a total payout ratio of 80.0%.
Full Year 2024
Achieved net profit of USD 774.0 million or USD 1.52 per share1 compared to USD 793.3 million or USD 1.57 per share for the twelve months ended December 31, 2023.
Commercially managed pool and bunker procurement business generated earnings of USD 35.2 million compared to USD 37.6 million4 for the twelve months ended December 31, 2023.
TCE2 earnings were USD 1,391.3 million compared to USD 1,366.6 million for the twelve months ended December 31, 2023, resulting in an average TCE2 of USD 33,000 per day.
Adjusted EBITDA2 of USD 992.3 million compared to USD 1,012.9 million for the twelve months ended December 31, 2023.
1 Based on weighted average number of shares as at 31 December 2024.
2 See Non-IFRS Measures section below.
3 NAV is calculated using the fair value of Hafnia’s owned vessels (including joint venture vessels).
4 Excluding a one-off item amounting to USD 7.4 million in Q3 2023.
Mikael Skov, CEO of Hafnia, commented:
“Following a strong first nine months in 2024, the product tanker market softened in the fourth quarter, impacted by crude sector cannibalization of the product tanker space and shorter voyages, though partly offset by high daily loadings.
While the market dynamics shifted in the fourth quarter, Hafnia demonstrated resilience in navigating the market, delivering a net profit of USD 79.6 million in Q4 2024. This brings our full-year net profit to USD 774.0 million, marking another year of strong performance.
Our adjacent fee-generating business segments continued to perform well, recording full-year revenue of USD 35.2 million, and our net asset value (NAV) 1 at year end stood at approximately USD 3.8 billion (USD 7.63 per share /~NOK 86.34).
The dislocation between our share price and NAV in late 2024 presented an opportunistic moment for share buybacks. Completed on January 24, 2025, we repurchased ~2.8% of the outstanding shares (14,382,255 shares) at approximately 70% of NAV, for an average of USD 5.33 per share and total consideration of USD 76.7 million. Capital utilized for buybacks in December has been deducted from the total payout before declaring Q4 dividends, ensuring combined shareholder returns align with our payout ratio policy.
At the end of Q4, our net Loan-to-Value (LTV) ratio was 23.2%, increasing from Q3 mainly due to a decline in the market value of our vessels. Given that, I am pleased to announce a payout ratio of 80% for the quarter, including USD 49.1 million utilized in share buybacks in December. As a result, we will distribute a total of USD 14.6 million or USD 0.0294 per share in dividends.
Including share buybacks, our full-year payout reached USD 640.8 million, representing a payout ratio of 82.8%.
While the fourth quarter saw rate pressures from increased crude tanker cannibalization, trade volumes and tonne-miles remain at elevated levels, supported by strong global demand. Tanker rates also strengthened with the seasonal winter market. Looking ahead to 2025, while near-term market dynamics are fluid, the fundamental drivers of our business remain solid. The evolving nature of sanctions, tariffs and developments in the Red Sea will continue to influence market dynamics. Importantly, long-term supply fundamentals on the tanker side remain firm, with the current orderbook of approximately 22% offset by an ageing global product tanker fleet and the increasing number of vessels subject to sanctions involving Russia, Iran and Venezuela. Furthermore, LR2s comprise over 50% of the new tonnage expected in the next few years, and historically, 70% of LR2 capacity has been absorbed into the dirty petroleum products trade.
As of February 13, 2025, 67% of the Q1 earning days are covered at an average of USD 23,989 per day, and 25% is covered at USD 24,062 per day for 2025.
Reflecting our fleet renewal strategy and commitment to a sustainable maritime future, we have in January welcomed Ecomar Gascogne, the first of four 49,800 dwt dual-fuel Methanol Chemical IMO-II MRs, ordered through our joint venture with Socatra of France. Two additional vessels are scheduled for delivery later this year, with the fourth in 2026 — all time-chartered to TotalEnergies for a multi-year period. These vessels, running on both conventional fuel and methanol, mark a key step in our decarbonization journey.
In addition, I am proud to announce our recent joint arrangement with Cargill to launch Seascale Energy. This aims to transform marine fuel procurement services by delivering customers worldwide with cost efficiencies, transparency and access to sustainable fuel innovations.
As we conclude 2024 and look forward to 2025, I wish to express my sincere gratitude to the Hafnia team, both onshore and at sea, as well as our valued partners for the excellent results we have achieved together. We will remain focused on making strategic investments in technology and innovation while leveraging our extensive fleet capabilities to drive sustainable growth and solidify our position as a global leader in the product and chemical tanker market”.
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