Hafnia (HAFNI) Q1 2019 earnings summary

Executive summary

• January merger of BW Tankers and Hafnia Tankers created a 170-vessel pool; integration was targeted for substantial completion by end-Q2, with commercial, financial, technical and operational synergies expected.

• Q1 2019 TCE income was $132.6m, EBITDA $74.1m and net profit after tax $27.9m.

Financial highlights

• Revenue was $214.1m; TCE income $132.6m; operating profit $44.9m; profit before tax $27.9m and profit after tax $27.9m.

• Net finance expense was $16.9m; basic and diluted EPS was 0.08 US cents per share.

• Total comprehensive income was $24.2m, including $3.7m of cash-flow hedge losses recorded in other comprehensive loss.

• At 31 March, total assets were $2,450.1m, total liabilities $1,444.6m and cash and cash equivalents $75.2m.

Outlook and guidance

• Product trade growth was projected to rise in 2019, supported by Middle Eastern refinery growth, Asian exports and renewed arbitrage opportunities; IMO 2020 was expected to support gasoil demand and product tanker freight.

• 2019 tanker fleet capacity growth was estimated at 3%; scrubber retrofits and potential floating storage could offset capacity additions, supporting a positive product tanker outlook.