HAFN

Hafnia (OB:HAFNI) is back on investor radars after announcing a Q2 2026 cash dividend of $0.5003 per share, alongside fresh quarterly and half year earnings figures released on 28 August 2026. Hafnia’s recent news comes on the back of strong momentum, with a 1 day share price return of 3.36%, a 30 day share price return of 15.12% and a year to date share price return of 57.97%, while the 5 year total shareholder return is very large at 823.03%. Compare Hafnia's latest dividend and earnings momentum with a hand picked 411 dividend fortresses to see how other income focused stocks stack up on yield and resilience. After Hafnia’s sharp share price move and a price only slightly below the latest analyst target, the real tension is between that NOK 83 market price and much lower intrinsic value estimates. Which side of that spread appears more reasonable? Hafnia’s most followed narrative pegs fair value at NOK84.20, just above the last close at NOK83. The gap is small, so the story behind the number matters. Read the complete narrative. Read the complete narrative. Want to see what is powering that fair value for Hafnia? The narrative leans heavily on earnings quality, margin strength and a future profit multiple that assumes solid pricing power. Curious which specific revenue path and profitability profile sit behind that target and how long they are expected to last? Result: Fair Value of NOK84.20 (ABOUT RIGHT) Have a read of the narrative in full and understand what's behind the forecasts. However, Hafnia’s story could change if tougher emission rules raise fleet upgrade costs, or if refined oil demand weakens and leaves tankers underused. Find out about the key risks to this Hafnia narrative. The SWS DCF model paints a very different picture for Hafnia. On this view, the stock at NOK83 is trading well above an estimated future cash flow value of NOK45.82, which implies meaningful downside risk if cash generation follows those assumptions. That gap raises a simple question. Are analysts right to focus on earnings and multiples, or is the cash flow lens flashing an early warning sign for investors to weigh carefully? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hafnia for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 269 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Mixed messages around Hafnia’s value and outlook can feel unclear, so move quickly, review the key data points, and firm up your own stance with 2 key rewards and 2 important warning signs If Hafnia has your attention, do not stop there. Broaden your watchlist with other targeted ideas that match the kind of portfolio you want to build. Target potential mispricing by scanning quality companies trading below their estimated worth through a focused 269 high quality undervalued stocks. Prioritize resilience by reviewing a list of solid balance sheet and fundamentals (436 results) so you can concentrate on businesses with stronger financial footing. Spot early opportunities by searching for 619 high quality undiscovered gems before they attract wider market attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HAFNI.OL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Friday, Aug. 28, 2026 at 8:30 a.m. ET Chief Executive Officer - Mikael Skov Chief Financial Officer - Perry Van Echtelt Vice President, Commercial - Soren Winther Executive Vice President, Head of Investor Relations - Thomas Andersen Head of Communications - Sheena Williamson-Holt Sheena Williamson-Holt: Hello, everyone. Welcome to Hafnia's Second Quarter 2026 Financial Results Presentation. We will begin shortly. You will be brought through today's presentation by Hafnia's CEO, Mikael Skov; CFO, Perry Van Echtelt; Soren Winther, VP, Commercial; and Thomas Andersen, EVP, Head of Investor Relations. They will be pleased to address any questions after the presentation, which will be moderated by myself, Sheena Williamson-Holt, Head of Communications at Hafnia. [Operator Instructions] During this conference call, some statements may be considered forward-looking, reflecting management's current expectations. These statements involve risks, uncertainties and other factors, many of which are beyond Hafnia's control that could cause actual results, performance or plans to differ significantly from those expressed or implied. Additionally, this conference call does not constitute an offer or solicitation to buy or sell any securities. With that, I'm pleased to turn the call over to Hafnia's CEO, Mikael Skov. Mikael Opstun Skov: Thank you, and hello, everyone. We appreciate you joining us for Hafnia's Second Quarter 2026 Earnings Call. I'm Mikael Skov, CEO of Hafnia. With me today are our CFO, Perry Van Echtelt; our VP of Commercial, Soren Winther; and our EVP, Head of Investor Relations, Thomas Andersen. Our second quarter 2026 results were published earlier today and are available on Hafnia's website. On today's earnings call, I will first cover the main developments in the quarter before Soren walks through the market and Perry reviews the financials. I will then touch on our strategic initiatives before concluding the call for questions. Let's move to the next slide. Before we proceed, I would like to go through our safe harbor statement. The information discussed on this call is based on information we have today, which may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from these statements. Nothing presented in this call should be construed as an offer to buy or sell securities. Next slide. I will start with the key highlights from the quarter. And now we go to Slide #5. The second quarter was another very strong quarter for Hafnia. The market has not yet normalized 6 months after the start of the conflict in the Persian Gulf. We are still experiencing disruptions to Gulf flows and rising tensions have reestablished the Red Sea chokepoints, dislocating oil flows across the world. Against this backdrop, we delivered a net profit of $277.8 million, the strongest quarterly results since the third quarter of 2022. We also continued to optimize the fleet by divesting older vessels. During the second quarter, we sold 1 LR1, 2 MRs and 3 Handy vessels, recording a gain on sale of $39.3 million. In the third quarter, we completed the sale of our 50% interest in 2 MRs held through the joint venture with Andromeda, resulting in a $13.3 million gain for Hafnia. Let's go to the next slide. Hafnia's platform remains highly integrated with ship owning, commercial pool management, technical management, bunkering and adjacent businesses all aligned. At quarter end, we owned 103 vessels and had 9 vessels time chartered in with an average owned fleet age of 9.7 years. Our net asset value at quarter end was approximately $4.4 billion or around $8.89 per share, corresponding to approximately NOK 88.47 per share. Alongside our own fleet, we commercially manage around 60 third-party vessels. Seascale Energy, our bunkering joint venture with Cargill, also continues to develop as an increasingly relevant platform in a volatile fuel and freight environment. Let's move to the next slide. Now moving to shareholder returns. Our net loan-to-value at end of Q2 stood at 13%, decreasing from 20.2% in the previous quarter, primarily due to strong cash flow generation from both operations and vessel sales. With leverage now below the lowest threshold in our dividend framework, we will declare dividend based on the maximum payout ratio of 90% of net profit. That translates into a dividend of $250 million or $0.5003 per share. Together with the first quarter dividend, total dividends for the first half of 2026 amount to $0.788 per share, which represents an annualized yield of around 21% based on a share price of $7.5. This is the 18th quarter in a row in which Hafnia has paid dividends, underscoring both the cash-generating quality of our platform and our commitment to returning capital. I will now hand over to Soren to take us through the industry review and outlook. Søren Winther: Thank you, Mikael. Let's move on to the first slide, which is Slide 9. It has been 6 months since the conflict in the Persian Gulf began and the market remains fragmented with volumes east of Suez constrained. While the memorandum signed between the U.S. and Iran in mid-June briefly facilitated a partial reopening of the Hormuz Strait, the agreement quickly broke down, reestablishing the Middle East chokepoint. Alternative routes have also come under pressure as renewed tensions involving the Yemen and Houthis have prompted vessels to avoid the Bab el-Mandeb Strait, redirecting Red Sea exports northward through the Suez Canal and SUMED pipeline. Despite these disruptions, market fundamentals remain sound. The underlying support comes from several sources, depleted inventories that will eventually have to be replenished, longer and less efficient trade flows, increased ballast passages, continued migration of LR2s into dirty trades and the clean tanker fleet that is effectively smaller than it was at the end of last year. Let me walk you through these dynamics in more detail. Next slide, please. Let us first look at world oil demand and crude flat price and inventories. The demand recovery is following a familiar pattern to COVID-19 in 2020, which took roughly 4 quarters to normalize. The IEA believes that demand bottomed out in Q2 2026 at 99.3 million barrels per day, but is expected to move back to 106 million barrels per day by Q4 this year as crude flat price eases from the highs. The inventory picture is equally important. Inventory levels have depleted over the past months, and we expect the eventual restocking to support ton-mile when looking ahead. The expected restocking is front-loaded. Around 260 million barrels worth of OECD stocks are expected to be rebuilt by mid-2027, with more than 100 million barrels in Q1 2027 alone. This signals stronger tanker demand. Let's move on to Slide 11. The same conclusion appears when we look at the implied global inventory draws based on lost transport volumes. In the past 180 days since the start of the conflict, seaborne volumes fell by about 7.1 million barrels per day, whereas demand only fell by 3.4 million barrels per day. The remaining 3.7 million barrels per day gap was effectively supplied from inventories. In essence, the supply crunch was partially met by reduced demand and partially by stock draws. In return of Middle East volume and the recovery of world oil demand, reversing seaborne trade volumes and drive transportation demand. This is why the inventory rebuild is central to our outlook. Let's move on to Slide 12. The correlation between the supply-demand balance and earnings does not follow a historical pattern. Normally, an oil supply deficit means fewer barrels moving, causing tanker earnings to soften. This time, we saw the deepest deficit of about 5 million barrels per day in Q2, while Aframax earnings remained strong. That deficit is narrowing and the supply deficit in Q3 stands at 2.2 million barrels per day with a forward curve moving into surplus by Q4 and through 2027. Against that backdrop, tanker earnings are better described as easing, supported by Middle East refining activity, which is expected to return in 2027, depending on the geopolitical landscape. And we move to Slide 13. Looking at daily loadings. The global clean departures have recovered meaningfully from the low point in May to 18.4 million barrels per day by the end of July, still about 10% lower than pre-crisis levels. The main pressure point has been East of Suez, where clean loadings bottomed out 40% below normal averages. Since then, the region has improved, how quickly further eastern recovery continues will be one of the key variables for the clean tanker market. Meanwhile, dirty loadings followed the same trend, but with a much steeper decline. East of Suez dirty volumes fell from around 24 million barrels per day in February to 12.6 million barrels per day in May. And by July, volumes were still roughly 30% below precrisis levels. Further recovery depends on Arabian Gulf exports returning, including Iranian crude. An additional 2 million to 3 million barrels worth of exports would create significant demand for Suez and Aframax vessels. Let's move on to Slide 14. Oil on water follows a similar trend. Clean products on water have recovered slightly from the May lows, but remains 12% below pre-conflict levels. [indiscernible] tonnage enabled increased cargo evacuation from inside the Arabian Gulf to ship-to-ship locations of the Omanian and Indian coastlines, servicing increases in total transport volumes. The decrease in clean products on water is equivalent to 180 MRs, highlighting the scale of demand and volumes displaced during the disruption. Dirty products have recovered strongly, underlining the fundamental strength within this segment. And we move on to Slide 15. Refinery margins are also at record levels, with margins across all 3 major regions increasing multifold since the beginning of the conflict. U.S. Gulf has benefited the most. It has captured and replaced a significant share of the displaced refining demand with margins up ninefold. China's lower margins are likely related to reduced government-controlled export quotas, forcing product prices to rely largely on upstream markets only. We believe that Chinese margins are set to rise due to the immediate legalization of cheaper sanctioned barrels in Q2 and the gradual increase in export quotas to the international market in Q3. We expect global margins to moderate but remain healthy as forward curves supports continued refinery utilization and product trade flows. And we move on to Slide 16. Turning into the key exporting regions. China's anticipated 2026 export quota of about 330 million barrels has a remaining balance of about 225 million barrels. Following the removal of export restrictions on transportation fuels, actual exports have reached around 0.9 million barrels per day in August, up from 0.6 million barrels per day at the start of 2026. In essence, the foundation for increased Chinese exports is supported. However, the question mark remains if the total 2026 export volumes will meet the 2025 averages. Funding constraints remain domestic demand and inventory requirements. Russian clean products exports remain constrained by ongoing refinery disruptions caused by Ukrainian drone strikes, removing exports of about 0.8 million barrels per day. Western freight markets increasingly rely on U.S. Gulf and Nigerian export volumes, supporting Atlantic ton miles in general. Slide 17, please. Turning to tanker supply. Over the past year, the tanker market has faced 5 major shocks: COVID-19, the Russia-Ukraine war, the Panama drought, the Houthi Red Sea disruption and now the Hormuz blockade. Each shock has rerouted trade through flows and added ton miles where replacement capacity has consistently lagged. The fleet age 20 years and above has grown from 48 million deadweight tons in 2020 to 187 million deadweight today with 251 million deadweight projected by 2028. Ageing vessels are likely to provide structural freight support as scrapping sanctions and stricter vetting requirements imply the removal of older tonnage from the mainstream trade. Overall, this paint a resilient picture for the upcoming years. And we move to Slide 18. The LR2 to Aframax migration continues to be one of the most important structural supply shifts in our market. Despite newbuild deliveries, global clean LR2 availability today sits about 27% below normal averages. And we move to Slide 19. Looking at the current global clean trading fleet from Handy to LR2 counted in MR equivalents, our estimate is that the effective fleet supply has decreased by 3% since the beginning of the year. This is mainly driven by clean to dirty trading migration. This is one of the key reasons for the clean tanker freight market remaining robust amid lower export volumes. And we move to Slide 20. Looking at the order book and the scrap landscape and the no newbuild program 2026 to 2029, the Handysize to LR2 order book consists of approximately 60 million deadweight tons with LR2s accounting for a large proportion. Against that, potential scrapping of vessels older than 25 years and sanctioned tonnage roughly total 72 million deadweight tons from 2026 to 2029. We assume that the sanctioned fleet above 20 years is unlikely to reenter mainstream trading, which we estimate to 21 million deadweight tons, suggesting limited coated tanker fleet supply growth. And we move into Slide 21 in the last slide. In summary, let me end with a simple balance sheet of what is holding the market up and what could take it down. On the anchor side, inventories, rebounding exports, demand recovery and the tightened clean fleet remain the key pillars. And on the risk side, the picture is mostly further out. The order book could have a stronger net impact from 2028 onwards, while the unwinding of LR2 migration could add to the clean fleet supply. If or when Hormuz and the Red Sea reopen for normal traffic, markets are likely to lose inefficiency effects such as ship-to-ship shuttle services, longer ballast legs and other factors currently absorbing tonnage supply. And with those words, I'm now handing over to Perry, our CFO, who will bring you through the financial development. Perry Van Echtelt: Thanks, Soren, and good day, everyone. If you go to the next slide. In Q2, rates reached record high, and we delivered our strongest quarter since the third quarter of 2022. TCE income was $372.9 million, while adjusted EBITDA reached $287.3 million. Our fee-based businesses contributed $8.8 million for the quarter. And in addition, we received $9.9 million in dividend income from our investment in TORM. Net profit was $277.8 million compared with $75.3 million a year ago. This includes the $39.3 million gain on disposal from the vessel sales completed during the quarter, bringing our half year net profit to $457.5 million. Return on equity for the second quarter reached 44.6% on an annualized basis and return on invested capital was 35.2%. Next slide, please. Turning to the balance sheet. The balance sheet also improved during the quarter on the back of strong cash flow generation from both operations and the proceeds from sale of vessels. The cash balance increased to $271 million, while gross debt reduced to $798 million. Net debt, therefore, declined to $527 million at the end of Q2. The net LTV moved substantially down to 13% from 20.2% at the end of the first quarter. This was mainly due to lower debt and supported by the increased vessel values. Total liquidity remains strong at approximately $631 million, which includes $360 million of undrawn facilities. We also remain well protected on interest rates with around 67.6% of our exposure hedged at a weighted average rate of 2.85%. Announced last quarter, our newbuild program now consists of 10 MRs with CapEx payments beginning from the third quarter of 2026. With this, we believe our net LTV ratio would also understate our true committed position. From 2027 onwards, we will calculate net LTV on a fully committed basis. We will include remaining newbuild capital commitments such as unpaid yard installments in the numerator, while adding the broker assessed market value of the corresponding newbuilds to the denominator. We believe this provides a more comprehensive representation of our underlying leverage. Next slide, please, where we can move to the operating summary. Q2 TCE rates for the year continued to show significant improvement across all segments. Our fleet-wide average TCE reached $44,093 per day, while our average spot rates were close to $50,000 per day. Dry dock and off-hire days totaled 392 in Q2. We expect this to fall to around 225 days in Q3 and approximately 110 days in the last quarter of the year, which should increase available earning days through the second half. Let's move to the next slide. As of August 17, 80% of our Q3 earning days were covered at $30,716 per day, which, although below the exceptionally high levels in Q2, remains a very strong environment considering lower seaborne volumes. For the second half of 2026, coverage stood at 53% at $28,917 per day. These rates are well above our operational cash flow breakeven and set the stage for another strong year of earnings. For Q3, estimated earning days are around 9,376 after taking into account 50% for the joint venture fleet, scheduled dry docking, the impact of divestments, vessel deliveries and vessels chartered in during the quarter. Mikael, I will hand it back to you now. Mikael Opstun Skov: Thank you. And moving on to the next slide, please. Let me briefly touch on our sustainability priorities. As one of the leading owners and operators in the product tanker segment, we view sustainability as an integrated part of the business. Safety, environmental performance, governance and responsible partnerships have and will always remain core to the way Hafnia operates. Our commitments remain unchanged: Zero harm across operations, a 40% reduction in fleet carbon intensity by 2028 compared with 2008, net zero Scope 1 emissions by 2050 and continued progress towards 40% women in our offices by 2030. Next slide, please. The strategic projects shown here are intended to strengthen Hafnia over the long term, whether through improving our overall shipping platform or advancing our technological capabilities. Seascale Energy continues to strengthen our bunker procurement capabilities together with Cargill, particularly in an environment where fuel availability, pricing and alternative fuel pathways are becoming more complex. Complexio is also moving from concept into practical deployment with early use cases already helping to improve response times in commercial and finance workflows. Next slide, please. Before we close, I want to say a few words about the CEO transition announced on the 30th of June. This will be my final earnings call as CEO of Hafnia. As announced from the 1st of September 2026, Søren Steenberg Jensen will take over as CEO. Subject to shareholder approval at the Extraordinary General Meeting held later this quarter, I'm expected to join Hafnia's Board of Directors and look forward to continuing to contribute to Hafnia in this new capacity. This transition has been planned carefully and with continuity in mind. Søren has been part of Hafnia since the beginning in 2010. And as Head of Asset Management, he has been deeply involved in shaping our fleet, our asset strategy, capital allocation and many of the decisions that have brought Hafnia to where it is today. It has been a real privilege to lead Hafnia and to work with an exceptional team across sea and shore. I would like to take this opportunity to thank our seafarers, shore-based teams, customers, partners and shareholders for their trust and support throughout this journey. What will not change is Hafnia's direction. The focus remains disciplined commercial execution, operational excellence and prudent balance sheet management. That brings us to the end of the prepared remarks. Thank you for joining us today, and we will now move to questions. Sheena Williamson-Holt: Thank you, Mikael and Perry and Soren for taking us through the results today. So, to those here, we will begin our Q&A session now. [Operator Instructions] So I'm going to start with Frode. Please can you unmute yourself, please, to ask your questions. Frode Morkedal: Yes. Yes. First question is for Soren, I guess. I guess on the topic of Panama Canal. Last time, Panama was a big issue. We didn't really have Red Sea and Hormuz disruption at the same time. So when you look ahead and assuming Panama tightens further, how much more disruptive and supportive would this be for products, do you think? Søren Winther: Okay. Thank you for the question. I think you're right in the sense that when the Panama Canal again comes on top of many other things ongoing, it probably has an even larger effect. And now it's tying up with China also increasing exports, whereby you would expect with a further diminished Panama Canal transit where you are now paying up to about $1 million for an auction over there. You're likely to see export from the Far East coming into the U.S. West Coast, adding ton miles to the region, which in the first phase have displacement of tonnage. So it is a strong driver. Whether or not this time around, it will be a halving of transits to the tune of 2024 is still a question mark, but you've probably seen the news that 2 ships left by the end of this week and then another 2 a little bit further out. So the trend is there and the combination of the factors that we have ongoing is not insignificant. Frode Morkedal: Yes, right. So you discussed a lot of good points here. So if you were to, let's say, summarize it and look ahead just for the next 6 to 9 months, how would you think this market will develop? Søren Winther: Well, on a general note, disruption is the driver here, right? I think we are now in a scenario that is probably a little bit worse than the beginning of the Middle East crisis, especially with the news of the flag-lifting of ships evacuate in the Middle East, at least a more closed Red Sea passage than it was when we spoke last with a partial opening there as well. And China exports ramping up U.S. and China that is really gravitating the world towards it, which can only mean longer ton mile on a general note to supply the world. So I'm constructive for the balance of Q3 and through Q4, obviously, with the caveat that we are sitting in a very political-driven environment and changes could still be coming at us like they have been more or less on a weekly basis over the past months really. So positive and constructive, always with the -- being mindful that it's all good and fine that we have a lot of ton mile and we have disruption all over the place, but oil also have to be available to increase transport demand. So it also depends how much the release on SPR volume will be on a further basis and how much stock draws we can actually do as a world. But yes, did that answer the question? Frode Morkedal: Yes, very well. So it looks like a good and interesting winter period ahead of us, right? Søren Winther: I think that's probably also one of the points that we didn't touch upon, but an El Niño year and whether or not that's going to give the usual cold winter that, that brings with it, but depleted inventories coming into a winter season could, in our mind, also kickstart an earlier Q4 transportation spike and probably also market spike that you would be used to as you would likely see Europe trying to restock at least where possible before the winter really comes up. Frode Morkedal: Yes. Fantastic. My final question is for Mikael. Since this is your last call, I guess, as a CEO. I just wanted to ask you, if you had to leave the investor with one thing, you think the market is still underappreciated with Hafnia. What would that be? Mikael Opstun Skov: Yes, that's a really good question. I don't know if there's anything that's, kind of, specifically underappreciated. But I think at least what comes to my first mind, I don't -- as I said, I don't know if it's underappreciated is that I think our strong focus on capital allocation and particularly discipline through the cycles. I think that has been and will continue to be one of the strength part of Hafnia that we have a major shareholder that has a long-term perspective, which means that we can time our investments and the capital allocation for the right timing rather than being forced by other conditions to make decisions through the cycle. So I think at least to me, that's one of the strong parameters for us is that we have the ability to think long term and not be forced to make any panic decisions short term. Frode Morkedal: Yes. Yes, it's been a fantastic journey, I guess. So thanks, Mikael. And this is your last call. As an analyst, I would just thank you for all the good insights over the past few years. So all the best what comes next. Thank you. Mikael Opstun Skov: Thank you so much for that. Sheena Williamson-Holt: Thank you, Frode, for your kind words. I don't actually see any more raise hand functions, but I do see a question in the chat, which is from [ Foster ]. So I'm just going to read it out here. First of all, congratulations on your retirement, Mikael, and thank you for your leadership and contribution to Hafnia over the years. Hafnia performed particularly well in the LR1 and MR segments during the quarter compared with most of its peers. Can you explain the main drivers behind this outperformance? Was it partly related to a higher number of product tankers trading dirty? Or were there other factors at play? Do you believe these are structural or repeatable factors that allow Hafnia to continue outperforming in Q3 and beyond? Soren, I will ask you to unmute yourself and maybe you want to also look at the question in the chats to answer kind of the 3 different parts of it. Søren Winther: Yes. Thank you, Sheena. I think we divide it in segments and start with the MRs from the bottom up. So we are not super exposed to dirty spreading on the MRs, and it's literally not very big in the MR segment. But we had a strategy from already the end of 2025 to be exposed in the U.S. Gulf market. That was driven by a belief that the turnaround season for the U.S. Gulf would not be as big this year, driven on the back of high refinery margins on a general note. That so transpired that the AG or Middle East prices came on top of it. So we already had a big position in terms of tonnage spread from a Hafnia perspective in the Gulf, and it was just amplified in terms of return for taking that strategic decision by the Middle East crisis. So it's really a positioning thing where we have been leaning very much towards the Gulf PADD 3 and the Far Eastern area, which has been the second best performing area. On the LR1s, it's to the tune of the same story. We migrated tonnage from the East to the West early in the year. And they have -- we have capitalized on that because the -- even the Europe market and the Mediterranean and the Red Sea market spiked on the back of the AG crisis. We also have an exposure in the Panamax market, which have quite clearly through that quarter, in particular, been overachieving, if you like, our percentage exposure in the Panamax segment is not that significant, but it has elevated the earnings to a certain extent. Whether or not we are benefiting from the exact same factors in Q3. It still remains to be seen for the rest of the quarter. But for the beginning of the quarter, it has not been too bad to be exposed to the U.S. Gulf. We did actually migrate some tonnage towards the Far East at an early stage. So from a strategic perspective, we are sound and well and sitting with a tonnage but east-west that we are satisfied with. So I would certainly hope that we are up there with the best. Sheena Williamson-Holt: Okay. Thank you, Soren. For that, [ Foster ], I'm assuming I trust that, that covers everything you needed to know. In case not, feel free to send a follow-up in the chat. I'm at the moment going back to the raise hand function, I do not see anything there. Great. And [ Foster ] confirms Soren, you covered everything. So I think given that there are no more raised hands, then I'm just going to thank the speakers for the presentation and then thank those for their questions. So yes, we have come to the end of today's presentation. So thank you to everyone who joined for attending our second quarter 2026 financial results conference call. You can find more information on our website after this call where this recording will be uploaded. Thank you, everyone, and have a great day and a great weekend when you get there. 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This article first appeared on GuruFocus. Net Profit: $277.8 million for Q2 2026, the strongest quarterly result since Q3 2022, compared with $75.3 million a year ago. TCE Income: $372.9 million for the quarter. Adjusted EBITDA: $287.3 million in Q2 2026. Gain on Vessel Sales: $39.3 million recorded from the sale of one LR1, two MRs, and three Handy vessels during the quarter. Dividend: $250 million, or $0.5003 per share, based on a 90% payout ratio of net profit. Net Loan-to-Value (LTV): Decreased to 13% from 20.2% in the previous quarter. Cash Balance: Increased to $271 million. Gross Debt: Reduced to $798 million. Net Debt: Declined to $527 million at the end of Q2. Return on Equity (ROE): Reached 44.6% on an annualized basis. Return on Invested Capital (ROIC): 35.2%. Fleet-Wide Average TCE Rate: $44,093 per day, with average spot rates close to $50,000 per day. Q3 Coverage: 80% of Q3 earning days covered at $30,716 per day as of August 17. Second Half 2026 Coverage: 53% covered at $28,917 per day. Fee-Based Business Contribution: $8.8 million for the quarter. Dividend Income from Investment in Tour: $9.9 million received. Warning! GuruFocus has detected 6 Warning Sign with HAFN. Is HAFN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Delivered the strongest quarterly net profit of $277.8 million since Q3 2022, with a 44.6% annualized return on equity. Declared a dividend of $0.5003 per share, marking the 18th consecutive quarter of payouts and an annualized yield of around 21%. Reduced net loan-to-value to 13% from 20.2% in the prior quarter, driven by strong cash flow and vessel sales. Fleet-wide average TCE reached $44,093 per day, with spot rates near $50,000 per day, reflecting robust market conditions. Strategic positioning in the US Gulf and Far East markets, along with LR1 and MR segment outperformance, supported by early tonnage migration decisions. Effective fleet supply decreased by 3% since the start of the year due to clean-to-dirty migration, tightening the clean tanker market. Strong forward coverage: 80% of Q3 earning days covered at $30,716 per day, and 53% of H2 2026 covered at $28,917 per day, well above breakeven. Completed vessel sales with a $39.3 million gain in Q2 and an additional $13.3 million gain from JV sales in Q3, optimizing the fleet. Maintained a strong balance sheet with net debt of $527 million and total liquidity of $631 million, including undrawn facilities. Positive outlook supported by expected inventory restocking, rebounding exports, and an aging fleet that may reduce supply. Market remains disrupted due to the Persian Gulf conflict, with volumes east of Suez constrained and the Hormuz Strait reopening agreement breaking down. Clean products on water remain 12% below pre-conflict levels, equivalent to 180 MRs of displaced demand. Dirty loadings east of Suez are still roughly 30% below pre-crisis levels, with recovery dependent on Arabian Gulf exports returning. Global clean departures are still about 10% lower than pre-crisis levels, indicating incomplete recovery. Potential risks from the order book, which could have a stronger net impact from 2028 onwards, and the unwinding of LR2 migration could add to clean fleet supply. If Hormuz and the Red Sea reopen for normal traffic, markets could lose inefficiency effects such as ship-to-ship shuttle services and longer ballast legs, reducing ton-mile demand. Chinese export volumes may not meet 2025 averages due to domestic demand and inventory constraints, limiting product trade flows. Russian clean product exports remain constrained by refinery disruptions from drone strikes, removing about 0.8 million barrels per day from the market. Dry dock and off-hire days totaled 392 in Q2, reducing available earning days, though expected to decrease in Q3 and Q4. The market is highly political and volatile, with changes occurring weekly, posing uncertainty for future earnings. Q: Can you explain the main drivers behind Hafnia's outperformance in the LR1 and MR segments during the quarter, and are these factors repeatable?A: Soren Winther, VP of Commercial, attributed the outperformance to strategic positioning. Hafnia had already shifted tonnage toward the US Gulf market at the end of 2025, anticipating a smaller turnaround season due to high refinery margins. This positioning was amplified by the Middle East crisis. Similarly, LR1 tonnage was migrated from east to west early in the year, capitalizing on spikes in the European, Mediterranean, and Red Sea markets. The company also benefited from its exposure to the Panamax segment, which overachieved. Winther noted that the beginning of Q3 has been favorable for US Gulf exposure, and the company is satisfied with its current East-West tonnage balance, suggesting these strategic factors could continue to support performance. Q: How much more disruptive and supportive would a tightening Panama Canal be for the product tanker market, given the concurrent Red Sea and Hormuz disruptions?A: Soren Winther, VP of Commercial, explained that the Panama Canal issue, when layered on top of existing disruptions, has a larger effect. With transit costs reaching up to $1 million at auction, exports from the Far East are likely to be redirected to the US West Coast, adding ton miles to a region already short on tonnage. While it remains uncertain if transits will halve as they did in 2024, the trend is clear, and the combination of factors is significant for the market. Q: How well do you think the tanker market will develop over the next 6 to 9 months?A: Soren Winther, VP of Commercial, stated that disruption is the primary driver. The current scenario is potentially worse than the beginning of the Middle East crisis, with a more closed Strait of Hormuz and rising China exports gravitating the world toward longer ton miles. The outlook is constructive for the balance of Q3 and through Q4, with the caveat that the environment is politically driven and changes can occur weekly. He also highlighted that depleted inventories entering a potential El Nino winter could kick-start earlier transportation demand and market spikes as Europe attempts to restock. Q: As this is your last call as CEO, what do you think the market is still underappreciating about Hafnia?A: Mikael Skov, CEO, highlighted Hafnia's strong focus on capital allocation and discipline through the cycles. He emphasized that having a major shareholder with a long-term perspective allows the company to time investments and capital allocation decisions optimally, rather than being forced into panic decisions by short-term market conditions. This long-term thinking capability is a key strength. Q: What were the key financial highlights for the second quarter of 2026?A: Perry Van Echtelt, CFO, reported that Q2 was the strongest quarter since Q3 2022, with TCE income of $372.9 million and adjusted EBITDA of $287.3 million. Net profit was $277.8 million, including a $39.3 million gain on vessel sales, bringing half-year net profit to $457.5 million. Return on equity reached 44.6% annualized, and return on invested capital was 35.2%. The balance sheet improved significantly, with net debt declining to $527 million and net LTV dropping to 13% from 20.2% in Q1. Q: What is the company's dividend payout for the quarter, and what is the current leverage position?A: Mikael Skov, CEO, announced that with net LTV at 13%, below the lowest threshold in the dividend framework, Hafnia will declare a dividend based on the maximum payout ratio of 90% of net profit. This translates to a dividend of $250 million, or $0.5003 per share. Combined with the Q1 dividend, total dividends for H1 2026 amount to $0.788 per share, representing an annualized yield of around 21%. This marks the 18th consecutive quarter of dividend payments. Q: What is the current market coverage and outlook for Q3 2026?A: Perry Van Echtelt, CFO, stated that as of August 17, 80% of Q3 earning days were covered at $30,716 per day. For the second half of 2026, coverage stood at 53% at $28,917 per day. These rates are well above the operational cash flow breakeven. Estimated earning days for Q3 are around 9,376, with dry dock days expected to fall to approximately 225 in Q3 and 110 in Q4, increasing available earning days. Q: What are the key factors supporting the tanker market, and what are the main risks?A: Soren Winther, VP of Commercial, summarized that on the supportive side, depleted inventories, rebounding exports, demand recovery, and a tight clean fleet are key pillars. On the risk side, the order book could have a stronger net impact from 2028 onwards, and the unwinding of LR2 migration could add to clean fleet supply. If Hormuz and the Red Sea reopen for normal traffic, markets could lose inefficiency effects like ship-to-ship shuttle services and longer ballast legs that are currently absorbing tonnage supply. Q: How is the company's newbuild program and future leverage calculation expected to evolve?A: Perry Van Echtelt, CFO, noted that the newbuild program now consists of 10 MRs, with CapEx payments beginning in Q3 2026. From 2027 onwards, Hafnia will calculate net LTV on a fully committed basis, including remaining newbuild capital commitments in the numerator and adding the broker-assessed market value of the newbuilds to the denominator. This provides a more comprehensive representation of underlying leverage. Q: What is the status of the CEO transition and the company's strategic direction?A: Mikael Skov, CEO, confirmed that this is his final earnings call as CEO, with Soren Steenberg Jensen taking over from September 1, 2026. Skov is expected to join the Board of Directors subject to shareholder approval. He emphasized that Hafnia's direction remains unchanged, with a focus on disciplined commercial execution, operational excellence, and prudent balance sheet management. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net profit reached $277.8 million, the strongest quarterly result since Q3 2022, driven by persistent market dislocations following the Persian Gulf conflict. Performance attribution for the MR and LR1 segments was linked to a strategic decision to position tonnage in the U.S. Gulf and Far East ahead of refinery margin spikes. The re-establishment of Red Sea chokepoints and Hormuz Strait disruptions have dislocated global oil flows, creating a fragmented market with constrained volumes East of Suez. Fleet optimization continued through the divestment of older vessels, including one LR1, two MRs, and three Handy vessels, generating a $39.3 million gain on sale. The company's net asset value reached approximately $4.4 billion, supported by rising vessel values and strong operational cash flow generation. Management emphasized that their integrated platform—combining ship owning, pool management, and bunkering—provides resilience in a volatile freight environment. Management expects a significant inventory rebuild of approximately 260 million barrels by mid-2027 to support future ton-mile demand, with 100 million barrels expected in Q1 2027 alone. Given that leverage has fallen below the lowest threshold in the existing dividend framework, the company is declaring a dividend based on the maximum 90% payout ratio of net profit. as net loan-to-value dropped to 13%, well below the lowest threshold. Future leverage reporting will transition to a 'fully committed' basis in 2027 to include newbuild capital commitments and market values for a more accurate representation. Market fundamentals are expected to remain supported by the structural migration of LR2 vessels into dirty trades, which has effectively reduced the clean fleet supply by 3% since the start of the year. The CEO transition to Søren Steenberg Jensen on September 1, 2026, is designed for continuity, maintaining a focus on disciplined capital allocation and commercial execution. The potential reopening of the Hormuz and Red Sea straits represents a downside risk that could eliminate current inefficiency effects like ship-to-ship shuttle services and longer ballast legs. Russian clean product exports remain constrained by refinery disruptions from Ukrainian drone strikes, removing approximately 0.8 million barrels per day from the market. The aging global fleet presents a structural support factor, as vessels older than 20 years are increasingly subject to stricter vetting and sanctions, likely removing them from mainstream trade. A $13.3 million gain was recorded in Q3 following the sale of a 50% interest in two MRs held through a joint venture with Andromeda. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that further Panama Canal restrictions, combined with increased Chinese exports, would likely force Far East exports to the U.S. West Coast, significantly adding ton-miles. The combination of Panama disruptions with existing Middle East crises creates a stronger driver for tonnage displacement than seen in previous years. Outperformance was attributed to strategic positioning in the U.S. Gulf (PADD 3) that was initiated at the end of 2025. based on the belief that refinery maintenance would be minimal due to high margins. LR1 success was specifically driven by migrating tonnage from East to West early in the year to capitalize on Mediterranean and Red Sea market spikes. Outgoing CEO Mikael Skov highlighted the company's disciplined capital allocation through cycles as a key strength, enabled by a major shareholder with a long-term perspective. This structure allows the company to time investments based on market cycles rather than being forced into short-term 'panic decisions'.

Interested in Hafnia Limited? Here are five stocks we like better. Strong quarterly results: Hafnia reported approximately $278 million in net profit for Q2, its second-best quarter on record, supported by geopolitical disruptions, longer shipping distances and tight product-tanker conditions. Large shareholder return: The company declared a $250 million dividend, equal to a 90% payout ratio, after net loan-to-value fell to just above 13%; Hafnia has returned capital for 18 consecutive quarters. Market outlook remains mixed: Inventory drawdowns, Chinese exports, high U.S. refinery utilization and canal disruptions support tanker demand, but future vessel deliveries, potential crude-to-product fleet shifts and weaker spot rates pose risks. CEO Mikael Skov is also set to leave, with Søren expected to succeed him. Top Shipping Firms Driving Industry-Leading Revenue Growth Hafnia (NYSE:HAFN) reported second-quarter net profit of $277.8 million, its strongest quarterly result since the third quarter of 2022, as tanker markets remained elevated amid disruptions to oil flows in the Persian Gulf and Red Sea. CEO Mikael Skov said the market had not normalized six months after the start of the Persian Gulf conflict. Disruptions to Gulf flows and renewed Red Sea chokepoints continued to dislocate global oil trade, supporting tanker demand and freight rates. → Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch The company generated $372.9 million in time-charter equivalent, or TCE, income and $287.3 million in adjusted EBITDA during the quarter. Net profit compared with $75.3 million a year earlier and brought first-half net income to $457.5 million, according to CFO Perry van Echtelt. Hafnia continued to renew and optimize its fleet during the quarter, selling one LR1 vessel, two MR vessels and three Handy vessels. The sales generated a $39.3 million gain. In the third quarter, the company also completed the sale of its 50% interest in two MR vessels held through its joint venture with Andromeda, producing a $13.3 million gain for Hafnia. → Palantir's Kool-Aid Moment: The Math Behind Karp's Forecast At the end of the quarter, Hafnia owned 103 vessels and had nine vessels chartered in. The company’s owned fleet had an average age of 9.7 years. It also commercially managed about 60 third-party vessels. Hafnia estimated its net asset value at approximately $4.4 billion, or about $8.89 per share. Strong operating cash flow and vessel-sale proceeds improved the company’s balance sheet. Cash rose to $271 million, while gross debt fell to $798 million and net debt declined to $527 million. Net loan-to-value dropped to 13% from 20.2% in the first quarter. Total liquidity stood at about $631 million, including $360 million of undrawn facilities. → Looking Beyond NVIDIA? These 3 AI ETFs Are Beating the Market With leverage below the lowest threshold in its dividend framework, Hafnia declared a dividend of $250 million, or $0.5003 per share, representing a 90% payout of net profit. First-half dividends totaled $0.788 per share. Skov said this marked the company’s 18th consecutive quarter of dividend payments. Hafnia’s fleet-wide average TCE rate reached $44,093 per day in the second quarter, while average spot rates were close to $50,000 per day. Van Echtelt said 80% of third-quarter earning days had been booked as of Aug. 17 at $30,716 per day. For the second half, 53% of earning days were covered at $28,917 per day. “These rates are well above our operational cash flow breakeven and set the stage for another strong year of earnings,” van Echtelt said. The company recorded 392 drydock and off-hire days in the second quarter. It expects that figure to fall to around 225 days in the third quarter and about 110 days in the fourth quarter, increasing available earning days later in the year. Hafnia said its newbuild program consists of 10 MR tankers, with capital expenditure payments beginning in the third quarter. Starting in 2027, the company plans to calculate net loan-to-value on a fully committed basis, including remaining newbuild capital commitments and the broker-assessed value of the associated vessels. VP Commercial Søren Winther said the tanker market remained fragmented, with volumes east of Suez constrained. A memorandum between the U.S. and Iran signed in mid-June briefly enabled a partial reopening of the Hormuz Strait, but the agreement later broke down, reestablishing a Middle East chokepoint, he said. Renewed tensions involving the Yemeni Houthis also led vessels to avoid the Bab el-Mandeb Strait, redirecting Red Sea exports northward through the Suez Canal and Sumed pipeline, according to Winther. He said the International Energy Agency expects global oil demand to rise from 99.3 million barrels per day in the second quarter to 106 million barrels per day by the fourth quarter. Hafnia also expects OECD inventories to be rebuilt by about 260 million barrels by mid-2027, including more than 100 million barrels in the first quarter of 2027. Winther said these inventory rebuilds, along with longer and less efficient trade routes, increased ballast passages and the migration of LR2 vessels into dirty trades, were supporting tanker fundamentals. Hafnia estimates that effective clean tanker fleet supply, measured from Handysize through LR2 vessels, has declined 3% since the start of the year. In response to an analyst question, Winther said Hafnia was constructive on conditions through the remainder of the third quarter and into the fourth quarter, while cautioning that tanker markets remained highly dependent on geopolitical developments and available oil volumes. He also cited potential Panama Canal restrictions, rising Chinese exports and longer ton-mile demand as factors that could further support the market. However, Hafnia identified eventual normalization of Hormuz and Red Sea traffic, as well as a potential reversal of LR2 migration into dirty trades, as risks to clean tanker freight conditions. Skov said the call would be his final earnings presentation as Hafnia CEO. Søren Steenberg Jensen is scheduled to take over as CEO on Sept. 1, 2026. Subject to shareholder approval at an extraordinary general meeting later in the quarter, Skov is expected to join the company’s board of directors. Skov said Hafnia’s direction would remain focused on disciplined commercial execution, operational performance and prudent balance-sheet management. He also reiterated the company’s sustainability targets, including a 40% reduction in fleet carbon intensity by 2028 versus 2008 and net-zero Scope 1 emissions by 2050. The company said its Seascale Energy joint venture with Cargill continued to build its bunker procurement capabilities, while its Complexio initiative had begun practical deployment in commercial and finance workflows. Hafnia is a global shipping company listed on the New York Stock Exchange under the ticker HAFN. The firm specializes in the marine transportation of refined petroleum products, providing safe and reliable shipping solutions across key global trade lanes. Its core operations focus on the carriage of gasoline, diesel, jet fuel and other clean petroleum products, catering to the needs of oil majors, trading houses and independent refiners. The company operates a modern fleet of double-hulled product tankers, managed to comply with stringent safety and environmental standards. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hafnia Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SINGAPORE, August 28, 2026--(BUSINESS WIRE)--Hafnia Limited ("Hafnia", the "Company" or "we", OSE ticker code: "HAFNI", NYSE ticker code: "HAFN"), a leading product tanker company with a diversified and modern fleet of over 100 vessels, today announced results for the three and six months ended 30 June 2026. The full report can be found in the Investor Relations section of Hafnia’s website:https://investor.hafnia.com/financials/quarterly-results/default.aspx Highlights and Recent Activity Second Quarter 2026 Recorded net profit of USD 277.8 million or USD 0.56 per share1 compared to USD 75.3 million or USD 0.15 per share in Q2 2025. Fee-based businesses generated earnings of USD 8.8 million2 compared to USD 7.9 million in Q2 2025. Time Charter Equivalent (TCE)3 earnings were USD 372.9 million compared to USD 231.2 million in Q2 2025, resulting in an average TCE3 of USD 44,093 per day4. Adjusted EBITDA3 of USD 287.3 million compared to USD 134.2 million in Q2 2025. 80% of total earning days of the fleet were covered for Q3 2026 at USD 30,716 per day as of 17 August 2026. Net asset value (NAV)5 was approximately USD 4.4 billion, or approximately USD 8.89 per share (NOK 88.47), at quarter end. Hafnia will distribute a total of USD 250.0 million, or USD 0.5003 per share, in dividends, corresponding to a payout ratio of 90%. First Half 2026 Recorded net profit of USD 457.5 million or USD 0.92 per share1 compared to USD 138.5 million or USD 0.28 per share in H1 2025. Fee-based businesses generated earnings of USD 16.6 million2 compared to USD 15.8 million in H1 2025. Time Charter Equivalent (TCE)3 earnings were USD 655.4 million compared to USD 449.9 million in H1 2025, resulting in an average TCE3 of USD 36,887 per day4. Adjusted EBITDA3 of USD 486.0 million compared to USD 259.3 million in H1 2025. Mikael Skov, CEO of Hafnia, commented: Six months after the conflict in the Persian Gulf began, the market has not yet normalized. The partial reopening of the Strait of Hormuz after the ceasefire memorandum was signed in June proved short-lived, as the passageway was effectively closed again in early July. Gulf exports, including routes bypassing the Strait, fell sharply by 2.1 million barrels per day (mb/d) to 15 mb/d in July. Importantly, the bypass routes the Gulf has relied on have also come under pressure. Amid rising tensions between the Houthis and Saudi Arabia, attacks extended to the Bab el-Mandeb Strait and to infrastructure at Jazan and Yanbu, diverting Saudi oil exports northward toward the Suez Canal and the SUMED pipeline. The SUMED pipeline saw Saudi exports surge to 1.25 mb/d, the highest level since April 2020. For the product tanker market, this has led to sustained fragmentation of global trade, with volumes East of Suez remaining constrained and alternative routings adding substantial voyage distance. Against this backdrop, Hafnia delivered the strongest quarterly result since Q3 2022. In Q2 2026, we recorded a net profit of USD 277.8 million. This included USD 39.3 million in gains on vessel sales, and our fee-based business generated USD 8.8 million. Results for the quarter were impacted by approximately 392 off-hire vessel days related to scheduled drydockings, and we anticipate approximately 225 off-hire days in Q3. Our average fleet TCE for Q2 was USD 44,093 per day. As of 17 August 2026, 80% of our Q3 earning days are covered at an average of USD 30,716 per day, and 53% of our H2 2026 earning days are covered at an average rate of USD 28,917 per day. At the end of the second quarter, our net asset value (NAV1) rose to approximately USD 4.4 billion, up USD 0.4 billion from Q1 2026. This is equivalent to USD 8.89 (~NOK 88.47) per share, driven by higher vessel valuations across all segments and lower debt levels amid a strengthened freight market. Our net Loan-to-Value (LTV) ratio further decreased from 20.2% in the first quarter to 13.0%, primarily due to strong cash flow generation from both operations and vessel sales. With our net LTV below 20%, we have reached the highest payout threshold under our dividend policy. I am therefore pleased to announce a 90% payout ratio for the second quarter. Accordingly, we will distribute a total of USD 250.0 million in dividends, or USD 0.5003 per share. This reflects our continued commitment to delivering strong shareholder returns and represents an annualized dividend yield of approximately 21% based on the dividend announced for the first half of 2026. From 2027, we will calculate net LTV on a fully committed basis, incorporating outstanding newbuild commitments and the corresponding vessel values. We continued to execute our fleet renewal strategy during the quarter. In Q2, we completed the sale of one LR1 vessel, two MR vessels, and three Handy vessels. In Q3, we sold our 50% stake in two MR vessels within the H&A Shipping joint venture, resulting in a USD 13.3 million profit for Hafnia. Our 13.97% stake in TORM continued to contribute to financial performance, with a market value of USD 369.0 million at quarter-end and an additional USD 9.9 million in dividend income recognized during the quarter. Our view on the logic of industry consolidation remains unchanged. The specific path and timing of any strategic steps will continue to be guided by a single priority: maximizing returns for Hafnia's shareholders. This is my final quarterly letter as Chief Executive Officer of Hafnia. As announced on 30 June, I will step down on 1 September 2026 after sixteen years in the role. Subject to approval at an Extraordinary General Meeting, I will join Hafnia's Board of Directors. Søren Steenberg Jensen, EVP and Head of Asset Management, who has helped build this company since its inception, will succeed me as CEO. The timing naturally invites questions. This transition was planned well in advance and is grounded in continuity. Søren has been closely involved in every element of the strategy outlined in this letter, from our fleet renewal program and distribution policy to the capital allocation that guides both. These commitments now pass to Søren. In his own words: From Søren Steenberg Jensen, incoming CEO: "Hafnia's strategy does not change on 1 September. My focus will be on disciplined commercial execution and operational excellence through what may remain a volatile period. The capital allocation framework set out in this letter, the payout policy, and the investment strategy carry my full commitment. I look forward to addressing shareholders in my new role at our Q3 results presentation in November 2026." It has been a privilege to lead Hafnia and to work with an exceptional team across sea and shore. I would like to thank our employees, partners, investors and stakeholders for their trust and support throughout this journey. Above all, I would like to thank our seafarers, who have carried this company through an extraordinary period with tremendous commitment. I am immensely proud of what we have accomplished and confident that Hafnia is well positioned for its next chapter. Fleet1 At the end of the quarter, Hafnia’s fleet consisted of 103 owned vessels2 and 9 time chartered-in vessels. The Group’s total fleet includes 10 LR2s, 28 LR1s (including two bareboat-chartered in and two time-chartered in), 54 MRs of which 13 are IMO II (including seven time-chartered in), and 20 Handy vessels of which 18 are IMO II (including one bareboat-chartered in). The average estimated broker value of the owned fleet1 was USD 4,255 million, of which USD 3,739 million relates to Hafnia’s 100% owned fleet, and USD 516 million relates to Hafnia’s 50% share in the joint venture fleet. Including Hafnia’s 50% share in the joint venture fleet, the LR2 fleet had a broker value of USD 697 million3, the LR1 fleet had a broker value of USD 1,092 million3, the MR fleet had a broker value of USD 1,745 million4 and the Handy fleet had a broker value of USD 721 million5. The unencumbered vessels had a broker value of USD 1,667 million. The chartered-in fleet had a right-of-use asset book value of USD 43.5 million with a corresponding lease liability of USD 42.7 million. Market Review & Outlook Market Fundamentals The second quarter saw continued disruption to Arabian Gulf flows due to the closure of the Strait of Hormuz. According to the International Energy Agency (IEA), Gulf oil production recovered only partially, standing at 23.9 mb/d in July, 8.3 mb/d below pre-conflict levels. The memorandum signed between the US and Iran in mid-June facilitated a partial reopening of the Strait and a sharp recovery in oil flows. Arabian Gulf loadings peaked near 20 mb/d at the start of July, before the agreement broke down and renewed attacks on tankers and energy infrastructure reduced loadings to about 12 mb/d by month-end. Alternative routings that had partially offset the closure also came under direct pressure during the period. Rising tensions between the Houthis and Saudi Arabia have caused vessels to turn away from the Bab el-Mandeb Strait, reestablishing the Red Sea chokepoint in the global oil supply chain. We are already seeing an increase in Red Sea exports shifting toward northern routes, exiting via both the Suez Canal and the SUMED pipeline. Rerouting via Suez and SUMED adds almost 30 days to Asia-bound transit, supporting tonne-mile. The dislocation is most visible in product trade. Global seaborne oil product exports averaged 27.7 mb/d in July, 3.8 mb/d below a year ago. Gulf countries accounted for 2.9 mb/d of the decline, while the United States offset 0.7 mb/d. Buyers historically dependent on Russian and Middle Eastern barrels secured replacement volumes from the United States, Europe, and India, lengthening average voyage distances across the diesel trade. Inventories continued to draw sharply, with OECD oil inventories falling 69 mb in July, increasing the need for ongoing replenishment and supporting seaborne trade flows and tanker demand. Forward View The outlook remains highly uncertain and depends heavily on the durability of any reopening of the Strait of Hormuz and the pace at which Gulf and Asian refining capacity returns. The demand-side impact has proved more significant than initially anticipated. The IEA now forecasts global oil demand contracting by 1.6 mb/d in 2026 to 103.3 mb/d, compared with the 0.4 mb/d decline projected in May. Asia and the Middle East have been hit hardest, accounting for 62% and 28% of the expected decline, respectively. Global demand is expected to expand by 2.4 mb/d in 2027. Inventory levels underpin our medium-term view. Once market conditions improve, IEA member countries will need to replace up to 400 mb of emergency stocks released during the crisis, of which about 300 mb had been drawn by the end of July. Notably, the remaining committed volumes consist largely of crude oil, offering limited relief to product market tightness, which has become the more pressing constraint. Furthermore, the 172 mb US SPR release, of which about 134 mb has been contracted, is projected to refill in 2027. Several non-IEA countries, including China and India, have also depleted reserves. A durable reopening of the Strait, combined with the recovery of Eastern refining capacity, would allow ballast tonnage to reposition and, over time, normalize the geographic imbalances that have supported Atlantic Basin freight rates. The IEA further identifies a potential supply overhang of up to 4 mb/d in 2027 as Gulf production recovers, which would return global stocks to February 2026 levels by mid-2027 and push them approximately 1 billion barrels higher by the end of 2027. In our view, that rebuild represents cargo to be carried rather than a headwind, but the transition may be volatile. On the vessel supply side, our view is unchanged from prior quarters. While newbuild deliveries remain elevated in 2026, the overall supply outlook is more balanced than headline orderbook figures suggest. Scrapping potential is increasing as the global fleet ages, and the sanctioned fleet continues to expand, with much of that tonnage unlikely to return to mainstream trading. A significant share of the product tanker orderbook comprises LR2 vessels, many of which trade in the crude segment, further tightening effective supply within the clean market. We also note that a substantial share of recent ordering activity has been concentrated in the larger crude segments, particularly Suezmaxes and VLCCs, reflecting owners' response to sustained strength in crude freight markets and the rerouting of crude flows around the Gulf. Key Figures Declaration of Dividend Hafnia will pay a quarterly dividend of USD 0.5003 per share. The record date will be 8 September 2026. For shares registered in the Euronext VPS Oslo Stock Exchange, dividends will be distributed in NOK with an ex-dividend date of 7 September 2026 and a payment date on, or about, 23 September 2026. For shares registered in the Depository Trust Company, the ex-dividend date will be 8 September 2026, with a payment date on, or about, 18 September 2026. Please see our separate announcement for additional details regarding the Company’s dividend. Webcast and Conference Call Hafnia will host a conference call for investors and financial analysts at 8:30 pm SGT/2:30 pm CET/8:30 am EST on 28 August 2026. The investor presentation will be available via live video webcast via the following link Click here to join Hafnia's Investor Presentation on 28 August 2026. Meeting ID: 380 648 822 630 727 Passcode: 3uE2AS3KDownload Teams | Join on the web Dial in by phone: +45 32 72 66 19,,202970533# Denmark, All locationsFind a local number Phone conference ID: 202 970 533#A recording of the presentation will be available after the live event on the Hafnia Investor Relations Page: https://investor.hafnia.com/financials/quarterly-results/default.aspx. About Hafnia Hafnia is one of the world's leading tanker owners, transporting oil, oil products and chemicals for major national and international oil companies, chemical companies, as well as trading and utility companies. As owners and operators of around 180 vessels, we offer a fully integrated shipping platform, including technical management, commercial and chartering services, pool management, and a large-scale bunker procurement desk. Hafnia has offices in Singapore, Copenhagen, Houston, and Dubai and currently employs over 4000 employees onshore and at sea. Hafnia is part of the BW Group, an international shipping group involved in oil and gas transportation, floating gas infrastructure, environmental technologies, and deep-water production for over 80 years. Non-IFRS Measures Throughout this press release, we provide a number of key performance indicators used by our management and often used by competitors in our industry. For details on the Key Performance Indicators, refer to Item 5. Operating and Financial Review and Prospects of Hafnia’s 2025 Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission on 17 April 2026. Reconciliation of Non-IFRS measures The following table sets forth a reconciliation of Adjusted EBITDA to profit/(loss) for the financial period, the most comparable IFRS financial measure, for the periods ended 30 June 2026 and 30 June 2025. The following table reconciles our revenue (Hafnia Vessels and TC Vessels), the most directly comparable IFRS financial measure, to TCE income per operating day. Revenue, voyage expenses and pool distributions in relation to External Vessels in Disponent-Owner Pools nets to zero, and therefore the calculation of TCE income is unaffected by these items: ‘TCE income’ as used by management is therefore only illustrative of the performance of the Hafnia Vessels and the TC Vessels; not the External Vessels in our Pools. For the avoidance of doubt, in all instances where we use the term "TCE income" and it is not succeeded by "(voyage charter)", we are referring to TCE income from revenue and voyage expenses related to both voyage charter and time charter. Forward-Looking Statements This press release and any other written or oral statements made by us or on our behalf may include "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning our intentions, beliefs or current expectations concerning, among other things, the financial strength and position of the Group, operating results, liquidity, prospects, growth, the implementation of strategic initiatives, including a potential business combination with TORM plc ("TORM"), as well as other statements relating to the Group’s future business development, financial performance and the industry in which the Group operates, which are other than statements of historical facts or present facts and circumstances. These forward-looking statements may be identified by the use of forward-looking terminology, such as the terms "anticipates", "assumes", "believes", "can", "contemplate", "continue", "could", "estimates", "expects", "forecasts", "intends", "likely", "may", "might", "plans", "should", "potential", "projects", "seek", "target", "will", "would" or, in each case, their negative, or other variations or comparable terminology. The forward-looking statements in this press release are based upon various assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot guarantee prospective investors that the intentions, beliefs or current expectations upon which its forward-looking statements are based will occur. Other important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements due to various factors include, but are not limited to: general economic, political, security, and business conditions, including the ongoing war between Russia and Ukraine, conflicts in the Middle East and the closure of the Strait of Hormuz, disruptions in the Red Sea, sanctions and other measures; general chemical and product tanker market conditions, including fluctuations in charter rates, vessel values and factors affecting supply and demand of crude oil and petroleum products or chemicals; the imposition by the United States, China, EU and other countries of tariffs and other policies and regulations affecting international trade, including fees and import and export restrictions; changes in expected trends in recycling of vessels; changes in demand in the chemical and product tanker industry, including the market for LR2, LR1, MR and Handy chemical and product tankers; competition within our industry, including changes in the supply of chemical and product tankers; with respect to a potential transaction with TORM, uncertainty as to whether Hafnia or TORM will pursue, enter into or complete a potential transaction; potential adverse reactions or changes to business relationships resulting from pursuit or completion of a potential transaction; uncertainties as to the timing of a potential transaction; and adverse effects on Hafnia’s share price resulting from pursuit, completion of, or failure to complete a potential transaction; our ability to successfully employ the vessels in our Hafnia Fleet and the vessels under our commercial management; changes in our operating expenses, including fuel or cooling down prices and lay-up costs when vessels are not on charter, drydocking and insurance costs; changes in international treaties, governmental regulations, tax and trade matters and actions taken by regulatory authorities; potential disruption of shipping routes and demand due to accidents, piracy, conflicts or political events; vessel breakdowns and instances of loss of hire; vessel underperformance and related warranty claims; our expectations regarding the availability of vessel acquisitions and our ability to complete the acquisition of newbuild vessels; our ability to procure or have access to financing and refinancing; our continued borrowing availability under our credit facilities and compliance with the financial covenants therein; fluctuations in commodity prices, foreign currency exchange and interest rates; potential conflicts of interest involving our significant shareholders; our ability to pay dividends; technological developments; the occurrence, length and severity of epidemics and pandemics and the impact on the demand for transportation of chemical and petroleum products; other factors that may affect our financial condition, liquidity and results of operations; and other factors set forth in "Item 3. – Key Information – D. Risk Factors" of Hafnia’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission on 17 April 2026 Because of these known and unknown risks, uncertainties and assumptions, the outcome may differ materially from those set out in the forward-looking statements. These forward-looking statements speak only as at the date on which they are made. Hafnia undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260827919592/en/ Contacts Mikael Skov, CEO Hafnia+65 8533 8900

This article first appeared on GuruFocus. Net Profit: $179.7 million, nearly triple the first quarter of 2025. Net Asset Value: Approximately $4 billion, equivalent to $8.09 per share. Net Loan-to-Value Ratio: Improved to 20.2% from 24.9% at the end of 2025. Total Cash Dividend: $143.8 million or $0.2877 per share, representing an annualized yield of 14%. Total Shareholder Return: Over 100% in the last 12 months. TCE Income: $282.5 million, up from $218.8 million in Q1 2025. Adjusted EBITDA: $198.6 million, compared to $125.1 million in Q1 2025. Return on Equity: 29.5% on an annualized basis. Return on Invested Capital: 22.7%. Fleet Size: 118 vessels with an average fleet age of 9.6 years. Liquidity: Approximately $660 million, including $146 million in cash. Forward Coverage for Q2: 73% of earnings days covered at $46,600 per day. Dividend Income from Investment: $9.9 million from Tor. Warning! GuruFocus has detected 6 Warning Sign with HAFN. Is HAFN fairly valued? Test your thesis with our free DCF calculator. Release Date: May 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hafnia Ltd (NYSE:HAFN) reported a net profit of $179.7 million for Q1 2026, nearly three times the profit of Q1 2025, supported by higher freight rates. The company has secured 73% of Q2 earnings days at $46,600 per day, indicating strong expectations for the second quarter. Hafnia Ltd (NYSE:HAFN) announced a contract for eight new MR newbuilds with Hyundai Heavy Industries, with deliveries expected between Q3 2028 and Q2 2029, as part of its fleet renewal strategy. The company declared an 80% payout ratio, translating to a total cash dividend of $143.8 million or $0.2877 per share, representing an annualized yield of 14%. Hafnia Ltd (NYSE:HAFN) has maintained a strong liquidity profile with total liquidity standing at approximately $660 million, comprising $146 million in cash and $550 million in undrawn credit facilities. The closure of the Strait of Hormuz has significantly disrupted global oil trade flows, impacting Hafnia Ltd (NYSE:HAFN) and the broader tanker industry. The company plans to wind down its Handy and LR2 pool operations, indicating a strategic shift that may affect its market presence in these segments. Global clean petroleum product departures are down approximately 15%, heavily concentrated in the East of Suez, affecting Hafnia Ltd (NYSE:HAFN)'s operations. The geopolitical situation in the Middle East remains uncertain, posing risks to Hafnia Ltd (NYSE:HAFN)'s operations and market conditions. The company faces challenges from the aging fleet, with the fleet aged 20 years and above projected to grow significantly, necessitating ongoing fleet renewal efforts. Q: What prompted Hafnia to invest in 10 MR newbuilds now, given past hesitations about newbuild investments? A: Mikael Skov, CEO, explained that Hafnia decided to invest in newbuilds as part of a fleet modernization strategy. They sold older vessels at strong prices, which justified the investment in newbuilds. Additionally, shipyard order books are full until 2029, so securing newbuilds now prevents future fleet aging issues. Q: Will the newbuild investments affect Hafnia's dividend policy? A: Mikael Skov, CEO, confirmed that the newbuild investments will not impact the company's dividend policy. Hafnia remains committed to maintaining its dividend payouts. Q: Why is Hafnia winding down its Handy and LR2 pool operations? A: Mikael Skov, CEO, stated that the Handy segment has been shrinking, and they received attractive offers for their Handy vessels. For LR2s, Hafnia has fewer vessels and decided to charter them out, making pool operations less viable. Q: What is driving the increased charter coverage despite compelling spot rates? A: Petrus van Echtelt, CFO, explained that the increased charter coverage acts as a hedge against geopolitical unrest and future uncertainties, despite the attractive spot rates. Q: How does the closure of the Strait of Hormuz affect the LR2 market? A: Petrus van Echtelt, CFO, noted that the strong Aframax market and the closure of the Strait of Hormuz have driven LR2s to switch to dirty trading. This migration is expected to continue unless clean freight rates surpass Aframax rates. Q: Will Hafnia continue divesting older vessels, and why choose newbuilds over secondhand tonnage? A: Mikael Skov, CEO, mentioned that while most older tonnage has been divested, a few vessels might still be sold at the right price. Newbuilds are preferred over secondhand vessels due to their modern design, fuel efficiency, and the anticipated shortfall in tonnage by 2029. For the complete transcript of the earnings call, please refer to the full earnings call transcript.