Hafnia Limited, a global leader in the product tanker industry with a fleet of over 130 vessels, has released its financial results for the three and nine months ending September 30, 2024. The company reported robust earnings, reflecting its strong market position and operational efficiency.
Q3 2024 Performance Highlights
- Net Profit Surge: Hafnia posted a net profit of USD 215.6 million for Q3 2024, translating to USD 0.42 per share. This marks a significant increase from USD 146.9 million (USD 0.29 per share) in the same quarter of 2023.
- Improved TCE Earnings: Time Charter Equivalent (TCE) earnings reached USD 361.6 million, up from USD 310.3 million in Q3 2023, with an average daily TCE rate of USD 33,549.
- Steady Pool Income: Hafnia’s commercially managed pool and bunker procurement business contributed USD 7.8 million in income, slightly above the USD 7.5 million recorded in Q3 2023.
- Adjusted EBITDA Growth: The company achieved an adjusted EBITDA of USD 257.0 million, compared to USD 220.8 million in the prior year’s third quarter.
- Fleet Coverage: As of November 18, 2024, 71% of the fleet’s earning days for Q4 were secured at an average daily rate of USD 24,004.
- NAV Increase: Hafnia’s net asset value (NAV) rose to approximately USD 4.6 billion (USD 9.07 per share or NOK 95.24), driven by appreciating vessel values.
- Generous Dividend Payout: The company announced a dividend distribution totaling USD 194.1 million, or USD 0.3790 per share, representing a payout ratio of 90%.
Year-to-Date Achievements
For the nine months ending September 30, 2024, Hafnia demonstrated record-breaking profitability and sustained growth across key financial metrics:
- Record Net Profit: The company achieved a net profit of USD 694.4 million (USD 1.36 per share), compared to USD 616.8 million (USD 1.22 per share) in the same period of 2023.
- TCE Earnings Growth: TCE earnings totaled USD 1,157.7 million, an increase from USD 1,036.8 million in the corresponding period last year, with an average daily TCE rate of USD 36,330.
- Stable Pool Income: The commercially managed pool and bunker procurement business generated USD 28.3 million, slightly below the USD 28.7 million reported for the same nine-month period in 2023.
- Adjusted EBITDA: Hafnia recorded an adjusted EBITDA of USD 861.1 million, up from USD 778.4 million in the prior year.
Strategic Strength and Outlook
Hafnia’s exceptional financial results highlight the company’s resilience and operational excellence in a competitive market. Its diversified and modern fleet, coupled with strategic management of earning days and cost controls, has positioned it for sustained success.
The rising value of its fleet assets underscores Hafnia’s robust balance sheet, while its high dividend payout reflects a commitment to delivering value to shareholders. Additionally, securing 71% of the fleet’s earning days at favorable rates for Q4 demonstrates the company’s proactive approach to managing market risks.
Leadership Perspective
Hafnia’s management remains optimistic about the company’s future. CEO Cristiano Amoruso commented on the results:
“Our Q3 and year-to-date performance reflect Hafnia’s ability to adapt to changing market conditions and capitalize on opportunities in the product tanker industry. We are committed to maintaining operational excellence, strengthening our financial position, and delivering value to our stakeholders.”
Market Context
Hafnia’s growth aligns with favorable trends in the global tanker market. Increased demand for product transportation, coupled with the company’s ability to leverage its fleet’s capabilities, has contributed to its strong financial performance. By optimizing its fleet utilization and expanding its commercially managed pool, Hafnia has effectively mitigated market fluctuations and enhanced profitability.
