Hafnia (HAFNI) Q3 2024 earnings summary

Executive summary

• Q3 2024 net profit reached USD 215.6 million, up from USD 146.9 million in Q3 2023, with YTD 9M net profit at USD 694.4 million, the best nine-month result in company history.

• Core operations and adjacent fee-generating businesses contributed robust earnings, including USD 7.8 million from fee businesses in Q3.

• Completed redomiciliation from Bermuda to Singapore on October 1, 2024, with no impact on dividend tax treatment.

• Board authorized a share buyback program of up to USD 100 million, to be deducted from Q4 2024 dividend calculations.

• Maintained a strong capital structure and continued focus on sustainable shareholder value.

Financial highlights

• Q3 2024 TCE income was USD 361.6 million; YTD TCE income exceeded USD 1,157.7 million.

• Adjusted EBITDA for Q3 2024 was USD 257.0 million; net profit included a USD 15.6 million gain from vessel sale.

• Q3 2024 dividend set at USD 0.3790 per share, totaling USD 194.1 million, with a 90% payout ratio.

• Cash and undrawn facilities at quarter-end totaled over USD 600 million.

• Net LTV ratio decreased to 19.1% at Q3 end, the lowest in company history.

Outlook and guidance

• 71% of Q4 2024 earning days covered at USD 24,004 per day as of November 18, 2024.

• Product tanker market outlook remains positive, supported by strong demand, longer transport distances, and reduced cannibalization from crude tankers.

• Analysts' consensus for FY 2024 net income is approximately USD 830 million.

• Seasonal strengthening expected in both crude and product markets as winter approaches.