Hafnia (HAFNI) Q4 2024 earnings summary

Executive summary

• Q4 2024 net profit was USD 79.6 million (USD 0.16/share), with full-year net profit at USD 774.0 million (USD 1.52/share), reflecting strong performance despite a softer Q4 market.

• Adjusted EBITDA for Q4 2024 was USD 131.2 million; FY 2024 Adjusted EBITDA totaled USD 992.3 million.

• Share buybacks completed in January 2025 repurchased ~2.8% of shares at 70% of NAV, totaling USD 76.7 million; Q4 payout ratio set at 80%, including buybacks.

• Dividend policy and capital allocation are linked to Net Loan-to-Value, with a focus on optimizing earnings and distributing profits.

• Strategic fleet renewal and decarbonization advanced with delivery of dual-fuel methanol vessels and launch of Seascale Energy joint venture.

Financial highlights

• Q4 2024 TCE income was USD 233.6 million (USD 22,692/day); FY 2024 TCE income was USD 1,391.3 million (USD 33,000/day).

• Q4 2024 Adjusted EBITDA was USD 131.2 million, down from USD 234.5 million in Q4 2023; FY 2024 Adjusted EBITDA was USD 992.3 million.

• Net Loan-to-Value increased to 23.2% in Q4 2024 from 19.1% in Q3, due to lower vessel valuations.

• Q4 2024 dividend was USD 0.0294/share (total USD 14.6 million); full-year payout including buybacks: USD 640.8 million (82.8% payout ratio).

• Total assets at Q4 2024 were USD 3,735 million; cash at bank and on hand was USD 195.3 million.

Outlook and guidance

• 67% of Q1 2025 earning days covered at USD 23,989/day; 25% of 2025 covered at USD 24,062/day.

• Product tanker market outlook remains positive, supported by robust demand and manageable supply, but subject to evolving geopolitical risks and sanctions.

• Analysts' consensus for FY 2025 Adjusted EBITDA is approximately USD 670 million.

• Long-term supply fundamentals remain firm, with a 22% orderbook offset by an aging fleet and increased sanctions.

• Market expects limited impact from Red Sea reopening and positive effects from sanctions reducing global fleet supply.