- Strong Financial Performance Adjusted EBITDA reached $150.5 million, net profit hit $91.5 million, and net asset value stood at $3.4 billion ($6.76/share).
- Fleet Renewal & Strategic Acquisitions Sold four older vessels, repurchased $100 million in sold vessels, and agreed to acquire 14.45% of TORM shares from Oaktree.
- Improved Financial Leverage Net loan-to-value ratio dropped to 20.5% from 24.1%, driven by strong cash flows and asset management.
- Robust Dividend Policy Maintained an 80% payout ratio, distributing $73.2 million in dividends ($0.1470/share) despite market volatility.
- Forward-Booked Earnings Visibility 71% of Q4 2025 earnings days secured at $25,610/day, and 15% of 2026 days covered at $24,506/day, signaling market confidence.
Operational Highlights
The product tanker market demonstrated countercyclical strength in Q3, driven by higher trading volumes and strong refinery margins. Hafnia's VP of Commercial, Soren Winther, noted that the earnings recovery in Q3 was 18% stronger for the company. The Fee-based business in the pools remained steady, contributing $7.1 million in fee income. For Q4, 71% of earnings days are secured at an average rate of $25,610 per day, and 15% of 2026 earning days are covered at an average rate of $24,506 per day.
Valuation and Dividend
With a P/E Ratio of 6.85, P/B Ratio of 1.29, and Dividend Yield of 10.58%, Hafnia's valuation metrics indicate a relatively attractive position. The company declared a payout ratio of 80% for the quarter, corresponding to a total cash dividend of $73.2 million or $0.1470 per share. The net LTV at the end of Q3 was 20.5%, and the company expects it to potentially drop below 20% at the end of Q4.
Strategic Investments and Growth
Hafnia announced a preliminary agreement to acquire 14.45% of TORM shares from Oaktree, as part of its strategic investments. The company prioritizes sustainability, collaborating with strategic partners to drive innovation and lead the way forward in the energy transition. Perry Van Echtelt stated that there were no plans for further purchases beyond the announced 40.45% stake in TORM.
Outlook and Risks
The company expects a robust outlook for the remainder of 2025 into Q1 2026, driven by the product tanker market's strength. However, the decline in Russian exports and the impact of the "shadow fleet" on the conventional fleet are potential risks. Mikael Opstun Skov stated that on the CPP side, it seemed like a positive for Hafnia, with no significant competition from the "dark fleet" yet.