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1. Company Snapshot

1.a. Company Description

Hafnia Limited owns and operates oil product tankers.The company operates through four segments: Long Range II (LR2), Long Range I (LR1), Medium Range (MR), and Handy size (Handy).It transports petroleum oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies.


The company provides ship owning, ship-management, chartering, investment, and agency office services.As of March 29, 2022, it operated a fleet of 237 vessels, including newbuilds, of which 145 are owned or chartered-in, including 10 owned LR2s, 40 owned and chartered-in LR1s, 58 owned and chartered-in MRs, and 29 owned Handy and eight stainless steel 25K vessels.The company is based in Hamilton, Bermuda.


Hafnia Limited is a subsidiary of BW Group Limited.

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1.b. Last Insights on HAFNI

Here is a 90-word analysis of the negative drivers behind Hafnia Limited's recent stock performance: Hafnia Limited's recent performance has been negatively driven by insider sales, with board member Erik Bartnes selling 1,182,931 shares in January and CFO Perry Van Echtelt selling 300,000 shares in December. Additionally, the company's recent dividend announcement was marred by an error in key dates relating to shares registered in the Euronext VPS Oslo Stock Exchange, which may have contributed to uncertainty among investors. Furthermore, the company's Q4/FY 2024 financial results presentation may have fallen short of expectations, weighing on sentiment.

1.c. Company Highlights

2. Hafnia's Q3 2025 Earnings: Strong Performance and Strategic Growth

Hafnia reported a robust third quarter in 2025, with adjusted EBITDA reaching $150.5 million and a net profit of $91.5 million. Earnings per share (EPS) came in at $1.8, significantly below the estimated $24.74. Revenue growth is expected to decline by 1.2% next year, indicating a challenging environment. The company's net asset value stood at approximately $3.4 billion, or $6.76 per share, with a net loan-to-value ratio improving to 20.5% from 24.1% in Q2, supported by strong operational cash flows.

Publication Date: Dec -04

📋 Highlights
  • 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.

3. NewsRoom

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Is Hafnia’s (OB:HAFNI) Dividend Strategy Highlighting a Shift in Its Growth Priorities?

Dec -02

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Hafnia Reassessed as New Shipping Moves Spark Debate Over Real Value in 2025

Dec -01

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Hafnia Ltd (HAFN) Q3 2025 Earnings Call Highlights: Record Profits and Strategic Fleet Renewal ...

Dec -01

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Assessing Hafnia (OB:HAFNI) Valuation After Multi-Year Share Price Surge and Recent Cool-Off

Dec -01

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HAFNIA LIMITED: Key Information Relating to Dividend for the Third Quarter 2025

Dec -01

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Hafnia Limited Announces Financial Results For The Three and Nine Months Ended 30 September 2025

Dec -01

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Senior Executives in Dry Bulk, Container, Crude Tanker, Product Tanker, LNG, LPG Shipping to Present in Capital Link Webinar Series

Nov -24

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Hafnia’s Q3 2025 Financial Results Presentation to Be Held on 1 December 2025

Nov -24

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.86%)

6. Segments

Medium Range

Expected Growth: 4.83%

Hafnia Limited's 4.83% medium-range growth is driven by increasing demand for chemical transportation, strategic partnerships, and expansion into new markets. Additionally, the company's focus on operational efficiency, cost savings, and investment in digitalization are expected to contribute to its growth momentum.

Long Range 1

Expected Growth: 4.83%

Hafnia Limited's Long Range 1 segment growth of 4.83% is driven by increasing demand for chemical transportation, expansion into new markets, and a growing fleet size. Additionally, the company's focus on operational efficiency, cost savings, and strategic partnerships contribute to its long-term growth prospects.

Handy

Expected Growth: 10.43%

Handy's 10.43% growth is driven by increasing demand for eco-friendly and sustainable product offerings, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization and operational efficiency has led to cost savings and improved profitability. Furthermore, Handy's strong brand reputation and customer loyalty have contributed to its revenue growth.

Long Range 2

Expected Growth: 4.83%

Hafnia Limited's Long Range 2 segment growth of 4.83% is driven by increasing global demand for chemical transportation, expansion into emerging markets, and a growing focus on sustainable shipping practices. Additionally, the company's modern fleet and operational efficiencies contribute to its strong growth prospects.

Specialized

Expected Growth: 4.83%

Hafnia Limited's 4.83% growth is driven by increasing demand for specialized tanker services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings, and strong relationships with customers have contributed to its growth. Furthermore, the rising global trade and increasing need for energy transportation have also fueled the company's growth.

Chemical-Stainless

Expected Growth: 4.83%

The 4.83% growth of Chemical-Stainless from Hafnia Limited is driven by increasing demand from the food processing and construction industries, coupled with rising prices of nickel and chromium. Additionally, the company's strategic expansion into emerging markets and investments in process optimization have contributed to the segment's growth.

7. Detailed Products

Marine Transportation

Hafnia Limited provides marine transportation services for the transportation of petroleum products, including crude oil, refined petroleum products, and liquefied petroleum gases.

Ship Management

Hafnia Limited offers ship management services, including technical management, crew management, and commercial management.

Freight Forwarding

Hafnia Limited provides freight forwarding services, including chartering, brokerage, and logistics services.

Bunker Supply

Hafnia Limited supplies bunkers (marine fuels) to ships in ports around the world.

Ship Agency

Hafnia Limited provides ship agency services, including port agency, husbandry, and protective agency services.

8. Hafnia Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Hafnia Limited operates in a niche market with limited substitutes, but there are some alternatives available to customers.

Bargaining Power Of Customers

Hafnia Limited has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Hafnia Limited has a moderate level of dependence on its suppliers, but it has implemented strategies to mitigate this risk.

Threat Of New Entrants

Hafnia Limited operates in a market with high barriers to entry, making it difficult for new entrants to join the market.

Intensity Of Rivalry

Hafnia Limited operates in a highly competitive market with several established players, leading to intense rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.71%
Debt Cost 4.37%
Equity Weight 63.29%
Equity Cost 4.37%
WACC 4.37%
Leverage 58.01%

11. Quality Control: Hafnia Limited passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hafnia

A-Score: 7.6/10

Value: 7.9

Growth: 9.3

Quality: 6.9

Yield: 10.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
BW LPG

A-Score: 7.3/10

Value: 7.0

Growth: 8.6

Quality: 5.4

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Ardmore Shipping

A-Score: 5.9/10

Value: 7.7

Growth: 8.9

Quality: 6.9

Yield: 6.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Golden Ocean

A-Score: 5.3/10

Value: 6.7

Growth: 3.3

Quality: 5.0

Yield: 10.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Matson

A-Score: 5.1/10

Value: 8.0

Growth: 7.1

Quality: 6.6

Yield: 2.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Kirby

A-Score: 4.3/10

Value: 6.3

Growth: 6.1

Quality: 6.7

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.22$

Current Price

60.22$

Potential

-0.00%

Expected Cash-Flows