Hafnia (HAFNI) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit was $63.2 million ($0.13/share), down from $219.6 million in Q1 2024, impacted by 500 off-hire days for drydocking and repairs, but maintained an 80% dividend payout.

• TCE income reached $218.8 million, with an additional $7.9 million from pool and bunkering businesses.

• Share buybacks of 5.2 million shares for $27.6 million were executed, not deducted from dividend calculations, increasing total shareholder distributions.

• Maintained a modern, diversified fleet of 116 owned and 9 chartered-in vessels, with an average age of 9.3 years and NAV per share of $6.96.

• Strategic focus on sustainability, with new dual-fuel methanol tankers and launch of Seascale Energy JV with Cargill.

Financial highlights

• Adjusted EBITDA for Q1 2025 was $125.1 million, down from $287.1 million in Q1 2024; return on equity 11.1%, return on invested capital 9.6%.

• Cash at bank and on hand was $188 million at quarter-end; total liquidity approximately $311 million.

• Net debt reduced from $1.3 billion in Q1 2023 to $856 million in Q1 2025; net borrowings at $1.07 billion.

• Net loan-to-value ratio at 24.1%, up slightly due to a 9% decline in vessel values since Q4 2024.

• Average TCE of $22,992 per day across segments; OpEx at $7,987 per day.

Outlook and guidance

• 57% of Q2 2025 earning days covered at $24,839/day; 27% of Q2–Q4 covered at $24,902/day as of May 1, 2025.

• Projected 2025 net profit in the range of $320–$340 million based on current coverage and analyst consensus.

• Expectation of strong returns for 2025, supported by global demand, spot rate recovery, and limited fleet growth.

• Approximately 630 off-hire days expected in Q2 2025 due to continued drydocking and repairs.

• Market outlook remains positive, with manageable supply due to aging fleet and subdued newbuild orders.