Hafnia (HAFNI) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 net profit of $259.2 million and H1 net profit of $478.8 million, the strongest first half in company history, with adjusted EBITDA of $317.1 million in Q2 and $604.1 million in H1.

• Declared a record dividend payout of 80% of net income for Q2, totaling $207.4 million or $0.4049 per share, the highest payout ratio in company history.

• Commercially managed pool and bunker procurement business generated $10.7 million in Q2.

• 72% of Q3 2024 earning days covered at $34,934 per day as of early August 2024.

• Sold LR1 vessel Hafnia Thames and MR vessel Hafnia Pegasus post-Q2.

Financial highlights

• Q2 2024 TCE income reached $417.4 million, with H1 TCE income at $796.2 million, both record highs.

• Adjusted EBITDA was $317.1 million in Q2 2024 and $604.1 million in H1 2024.

• Cash balance at quarter-end was $167 million, with total liquidity of $591 million, including $424 million in undrawn credit.

• Net LTV ratio decreased to 21.3% at end of June 2024, down from 24.2% in Q1 2024.

• EPS for Q2 2024 was $0.51; for H1 2024, $0.94.

Outlook and guidance

• 72% of Q3 earning days covered at $34,934 per day; 45% of Q3/Q4 earning days covered at $33,534 per day.

• Net profit for full year 2024 projected between $800 million and $900 million under all scenarios.

• Analysts' consensus for FY 2024: adjusted EBITDA ~$1,130M–$1,170M, net income ~$870M–$910M.

• Market outlook remains positive with elevated product tanker rates expected to persist due to low global stockpiles and increased refinery throughput.

• New refinery capacity in Nigeria and China expected to further boost demand.