Hafnia (HAFNI) Q2 2019 earnings summary

Executive summary

• Q2 market conditions weakened QoQ amid refinery maintenance ahead of IMO 2020; integration following the January merger was substantially completed by quarter-end. Operating 183 pool vessels was expected to unlock commercial and operating synergies.

• Q2 TCE income was $118.0 million, EBITDA $58.9 million and net profit $12.0 million; H1 net profit was $39.9 million.

Financial highlights

• Q2 revenue was $200.7 million, TCE income $118.0 million, operating profit $27.7 million and profit after tax $12.0 million.

• H1 revenue was $414.8 million, TCE income $250.6 million, EBITDA $133.0 million, operating profit $72.6 million and net profit $39.9 million.

• Q2 basic and diluted EPS were $0.03; H1 basic and diluted EPS were $0.12.

Outlook and guidance

• At June 30, 22% of Q3 earning days were covered at $15,466/day and 8% of Q4 earning days at $21,866/day.

• The remaining LR2 newbuilds were scheduled for delivery in Q3 and Q4 2019; four LR2 newbuilds had been delivered by the report date.

• Market fundamentals were expected to support recovery in H2 2019 into 2020, with IEA forecasting Q3 global refinery throughput up more than 3 mb/day QoQ.