Hafnia (HAFNI) Q3 2019 earnings summary

Executive summary

• Q3 TCE income was $106.7m and EBITDA was $50.0m; reported net loss was $10.6m, including a $9.3m non-cash write-off of capitalised financing fees. Excluding that item, the highlighted net loss was $1.2m.

• Management cited commercial and cost synergies following the January merger, alongside a November Oslo Axess listing, as foundations for future growth and shareholder value.

Financial highlights

• Q3 revenue was $188.5m, TCE income $106.7m, operating profit $15.4m and EBITDA $50.0m; 9M net profit was $29.3m.

• Q3 operating cash flow was $20.9m; cash and cash equivalents were $122.3m at 30 September 2019.

• Total assets were $2,623.9m, total liabilities $1,621.2m and total equity $1,002.8m at quarter-end.

Outlook and guidance

• Product tanker conditions rebounded early in Q4; Q4 quarter-to-date average clean earnings were $13,603/day for Handy, $17,275/day for MR, $22,869/day for LR1 and $33,862/day for LR2.

• At 30 September, 16% of Q4 earning days were covered at $16,057/day and 8% of Q1 2020 days at $22,309/day.

• A quarterly dividend is planned following Q4; policy targets a 50% payout of annual net profit adjusted for extraordinary items, subject to Board discretion and capital needs.