HAFN

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.

SINGAPORE, May 27, 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 months ended 31 March 2026. The full report can be found in the Investor Relations section of Hafnia’s website: https://investor.hafniabw.com/financials/quarterly-results/default.aspx Highlights and Recent Activity First Quarter 2026 Recorded net profit of USD 179.7 million or USD 0.36 per share1 compared to USD 63.2 million or USD 0.13 per share in Q1 2025. Fee-based businesses generated earnings of USD 7.8 million compared to USD 7.9 million in Q1 2025. Time Charter Equivalent (TCE)3 earnings were USD 282.5 million compared to USD 218.8 million in Q1 2025, resulting in an average TCE3 of USD 30,327 per day4. Adjusted EBITDA3 of USD 198.6 million compared to USD 125.1 million in Q1 2025. 73% of total earning days of the fleet were covered for Q2 2026 at USD 46,600 per day as of 13 May 2026. Net asset value (NAV)5 was approximately USD 4.0 billion, or approximately USD 8.09 per share (NOK 78.81), at quarter end. Hafnia will distribute a total of USD 143.8 million, or USD 0.2877 per share, in dividends, corresponding to a payout ratio of 80%. Mikael Skov, CEO of Hafnia, commented: The first quarter of 2026 was defined by a geopolitical disruption to global oil markets without modern precedent. The closure of the Strait of Hormuz fundamentally reshaped global crude and refined product trade flows. At the same time, attacks on Middle East refineries, refinery run cuts, and export restrictions in Asia further disrupted supply chains and trade volumes across multiple regions. The loss of an estimated 12.8 million barrels per day (mb/d) in global oil supply triggered a rapid rerouting of crude and refined product supply chains. This was partially offset by increased production from Atlantic Basin and the International Energy Agency’s (IEA) coordinated release of up to 400 mb from strategic reserves to help fill the supply gap. Against this backdrop, Hafnia delivered another quarter of strong earnings. In Q1 2026, we recorded a net profit of USD 179.7 million. This included USD 32.5 million from gains on vessel sales, while our fee-based business generated USD 7.8 million. The IFRS 15 load-to-discharge adjustment has resulted in a negative TCE adjustment of USD 17.9 million. Q1 results include approximately 210 off-hire vessel-days from scheduled drydocking. We expect drydocking activity to continue through the remainder of 2026, with approximately 300 off-hire days anticipated in Q2. Our average fleet TCE for Q1 was USD 30,327 per day. As of 13 May 2026, 73% of our Q2 earning days are covered at an average of USD 46,600 per day, supporting our expectation that Q2 will be stronger than Q1. In addition, 39% of our earning days for Q2 to Q4 2026 have been covered at an average rate of USD 38,281 per day. At the end of the first quarter, our net asset value (NAV1) rose to approximately USD 4.0 billion, up USD 0.5 billion from Q4 2025. This is equivalent to USD 8.09 (~NOK 78.81) per share, driven by higher vessel valuations across all segments amid a strengthened freight market. Our net Loan-to-Value (LTV) ratio decreased from 24.9% in the fourth quarter to 20.2%, primarily due to strong cashflow generation from both operations and vessel sales. I am pleased to announce an 80% payout ratio for the first quarter. Accordingly, we will distribute a total of USD 143.8 million in dividends, or USD 0.2877 per share. This reflects our continued commitment to delivering strong shareholder returns. Shareholders who have held Hafnia shares over the past 12 months have achieved a total return exceeding 100%, including share price appreciation and dividends. As part of our fleet renewal strategy, we divested older tonnage while enhancing the overall quality and efficiency of our fleet. In Q1, we completed the sale of three LR1s, two MRs, and one Handy. During Q2, we further sold and delivered one LR1, one MR, and three Handy vessels, with an additional MR committed for sale and pending delivery to the buyer. These transactions, together with our recently announced contracts for eight MR newbuilds and the exercise of two additional newbuild options, demonstrate our focus on modernizing the fleet, reducing average fleet age, and strengthening Hafnia’s long-term earnings capacity. Since making our 13.97% investment in TORM in December 2025, the position has contributed meaningfully to our overall financial performance. Since the investment, we have recognized approximately USD 9.9 million in dividend income. As at Q1 2026, the market value of the position stood at USD 395.0 million, representing an unrealized fair value gain of approximately USD 117.8 million from the previous quarter. The investment represents a meaningful financial position in a high-quality product tanker company, and we continue to evaluate it within the context of our strategy and our commitment to delivering shareholder returns. While we maintain our view that industry consolidation can create value, the specific path and timing of any strategic steps will be guided by our overriding priority: maximizing returns for Hafnia's shareholders. We will take the approach that best serves this objective. We have commenced the deployment of Complexio, an enterprise AI platform that integrates conversational AI, workflow analytics, and automation to transform operational data into faster and more informed decision making. Initial applications have already improved response times across commercial and finance workflows, and we believe the platform has significant potential to scale across Hafnia as adoption accelerates through 2026 and 2027. Looking ahead, the outlook remains highly uncertain and depends largely on the duration of the disruption to traffic through the Strait of Hormuz and the time required for oil production and global refinery operations to recover. The IEA estimates refinery throughput will plunge by 4.5 mb/d in the second quarter. Even if the Strait gradually reopens, structural damage to Gulf infrastructure is expected to drive a prolonged rerouting of global product trade flows, supporting tonne-mile demand well beyond this year. With nearly 200 tankers and thousands of seafarers unable to transit the Strait at the end of the quarter, the human dimension of this crisis must not be overlooked. The safety and well-being of our own crews, and those across the industry, remain our foremost concern. We are operating in a market environment without modern precedent, characterized by significant disruption and volatility. At the same time, we continue to monitor the demand-side impact of elevated oil prices, which the IEA now forecasts will lead to the first year-over-year contraction in global oil demand since the COVID-19 pandemic, with demand forecast to decline by approximately 0.4 mb/d to around 104 mb/d. Despite this backdrop, I remain highly confident in Hafnia’s commercial expertise and operational agility. Our ability to navigate complex market conditions, optimize trade flows, and respond to evolving market dynamics positions us strongly to capture opportunities while prudently managing risk. Mikael SkovCEO Hafnia Fleet1 At the end of the quarter, Hafnia’s fleet consisted of 109 owned vessels2 and 9 chartered-in vessels. The Group’s total fleet includes 10 LR2s, 29 LR1s (including two bareboat-chartered in and two time-chartered in), 56 MRs of which 13 are IMO II (including seven time-chartered in), and 23 Handy vessels of which 18 are IMO II (including one bareboat-chartered in). The average estimated broker value of the owned fleet1 was USD 4,116 million, of which USD 3,625 million relates to Hafnia’s 100% owned fleet, and USD 490 million relates to Hafnia’s 50% share in the joint venture fleet. Including Hafnia’s 50% share in the joint venture fleet, the LR2 vessels had a broker value of USD 629 million3, the LR1 fleet had a broker value of USD 1,023 million3, the MR fleet had a broker value of USD 1,688 million4 and the Handy vessels had a broker value of USD 776 million5. The unencumbered vessels had a broker value of USD 1,116 million. The chartered-in fleet had a right-of-use asset book value of USD 36.5 million with a corresponding lease liability of USD 35.9 million. Market Review & Outlook Market Fundamentals The product tanker market entered 2026 on a seasonally firm footing, supported by higher crude production and a meaningful shift of LR2 vessels into dirty trading, before the outbreak of war in the Persian Gulf in early March transformed the operating landscape. From early March, the conflict involving the US, Israel, and Iran in the Persian Gulf, and the subsequent closure of the Strait of Hormuz, removed significant volumes of crude oil and vessels from the market and fundamentally altered global trade flows. At the same time, attacks on refineries reduced refinery runs, while concerns over tightening crude supply prompted several countries to impose export restrictions. This created an increasingly fragmented market environment, with trading activity East of Suez materially constrained, while Atlantic Basin producers, particularly the US Gulf, stepped in to offset supply shortfalls. The resulting dislocation significantly increased tonne-mile demand and drove freight rates in the West to elevated levels. On the supply side, a large share of the existing orderbook consists of LR2 vessels, many of which trade in the crude segment, further tightening effective supply within the product tanker market. Refining margins remained at historically high levels throughout the period, supported by record middle distillate cracks, incentivizing maximum throughput wherever feedstock was available and driving product movements that directly benefit tanker utilization. The United States became a net crude exporter for the first time in over 50 years, with weekly crude exports reaching a record 6.4 mb/d in late April, a direct consequence of lost Gulf supply and rising US output, materially increasing tonne-mile demand on Atlantic Basin routes. Forward View The outlook remains highly uncertain. The IEA's base case assumes the Strait remains shut until early June, with at least two to three months needed thereafter to fully normalize trade flows, implying that even under a favourable scenario, market dislocations will persist well into the second half of 2026. The IEA estimates refinery crude throughput will plunge by 4.5 mb/d in Q2 2026 to 78.7 mb/d, and by 1.6 mb/d to 82.3 mb/d for 2026, as operators contend with infrastructure damage, export restrictions, and lower feedstock availability. The pace of global inventory drawdowns underscores the severity of the supply shock. Global observed oil inventories drew by 129 mb in March and a further 117 mb in April, with OECD on-land stocks plummeting by 146 mb (4.9 mb/d) in April alone. The IEA's cumulative stock deficit is projected to reach approximately 900 mb by September 2026, including the 400 mb coordinated stock release, of which only approximately 164 mb had been released as of 8 May. Even if the Strait gradually reopens, structural impairment to Gulf infrastructure is expected to prolong the rerouting of global trade flows, supporting tonne-mile demand well beyond this year. At the same time, a prolonged closure of the Strait could put downward pressure on freight rates as ballast tonnage from the East repositions to other markets and the loss of crude supply becomes increasingly visible in weaker global oil demand. The IEA now projects world oil demand contracting by approximately 0.4 mb/d year-on-year to around 104 mb/d in 2026, the first annual decline since COVID-19, with the sharpest impact concentrated in Q2, where demand is forecast to fall by 2.45 mb/d year-on-year as petrochemical feedstock availability, aviation activity, and industrial consumption are all severely curtailed. However, as countries, especially the US, continue drawing down inventories, we believe the eventual restoration of flows through the Strait of Hormuz and the recovery of refinery operations in the East could trigger a meaningful, multi-quarter inventory rebuilding cycle. Rebuilding these inventories would require roughly an additional 1 mb/d of supply over the next three years, on top of underlying demand growth, providing strong underlying support for tanker demand and freight rates. On the supply side, in our view, the overall outlook remains more balanced than headline orderbook figures suggest. While a sizeable number of newbuild vessels are expected to deliver in 2026, the potential for scrapping is also increasing as the global fleet continues to age. In addition, the number of sanctioned vessels has grown materially and continues to rise, with many unlikely to return to mainstream trading markets. Together, these factors support a tighter and more constructive long-term supply outlook for the tanker sector. Key Figures Declaration of Dividend Hafnia will pay a quarterly dividend of USD 0.2877 per share. The record date will be 4 June 2026. For shares registered in the Euronext VPS Oslo Stock Exchange, dividends will be distributed in NOK with an ex-dividend date of 3 June 2026 and a payment date on, or about, 22 June 2026. For shares registered in the Depository Trust Company, the ex-dividend date will be 4 June 2026, with a payment date on, or about, 16 June 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 27 May 2026. The investor presentation will be available via live video webcast via the following link: Click here to join Hafnia's Investor Presentation on 27 May 2026 . Meeting ID: 388 844 800 223 275 Passcode: uJ6oM6PvDownload Teams | Join on the web Dial in by phone: +45 32 72 66 19,,557564486# Denmark, All locationsFind a local number Phone conference ID: 557 564 486# 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 200 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. Adjusted EBITDA "Adjusted EBITDA" is a non-IFRS financial measure and as used herein represents earnings before financial income and expenses, depreciation, impairment, amortization and taxes. Adjusted EBITDA additionally includes adjustments for gain/(loss) on disposal of vessels and/or subsidiaries, share of profit and loss from equity accounted investments, interest income and interest expense, capitalised financing fees written off and other finance expenses. Adjusted EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as lenders, to assess our operating performance as well as compliance with the financial covenants and restrictions contained in our financing agreements. We believe that Adjusted EBITDA assists management and investors by increasing comparability of our performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects of interest, depreciation, impairment, amortization and taxes. These are items that could be affected by various changing financing methods and capital structure which may significantly affect profit/(loss) between periods. Including Adjusted EBITDA as a measure benefits investors in selecting between investment alternatives. Adjusted EBITDA is a non-IFRS financial measure and should not be considered as an alternative to net income or any other measure of our financial performance calculated in accordance with IFRS. Adjusted EBITDA excludes some, but not all, items that affect profit/(loss) and these measures may vary among other companies. Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies. 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 31 March 2026 and 31 December 2025. Time charter equivalent (or "TCE") TCE (or TCE income) is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., voyage charters and time charters) under which the vessels may be employed between the periods. We define TCE income as income from time charters and voyage charters (including income from Pools, as described above) for our Hafnia Vessels and TC Vessels less voyage expenses (including fuel oil, port costs, brokers’ commissions and other voyage expenses). We present TCE income per operating day1, a non-IFRS measure, as we believe it provides additional meaningful information in conjunction with revenues, the most directly comparable IFRS measure, because it assists management in making decisions regarding the deployment and use of our Hafnia Vessels and TC Vessels and in evaluating their financial performance. Our calculation of TCE income may not be comparable to that reported by other shipping companies. Reconciliation of Non-IFRS measures 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, 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; 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/20260526832119/en/ Contacts Mikael Skov, CEO Hafnia+65 8533 8900

Interested in Hafnia Limited? Here are five stocks we like better. Hafnia posted a strong Q1 with net profit of $179.7 million, and management said Q2 is already tracking better as freight markets remain firm. Geopolitical disruption is boosting tanker demand by lengthening shipping routes and drawing down inventories, with the Strait of Hormuz situation cited as a major driver of stronger ton-mile demand. The company sees a favorable longer-term setup thanks to a relatively young fleet, an aging global tanker fleet, and limited new-ship investment, while also maintaining a shareholder-friendly dividend policy and low leverage. Top Shipping Firms Driving Industry-Leading Revenue Growth Hafnia (NYSE:HAFN) reported what Chief Executive Officer Mikael Skov described as an “extraordinary good quarter,” with first-quarter net profit of $179.7 million and management indicating that the second quarter is tracking stronger. Speaking during the company’s Q1 results presentation, Skov said the product tanker owner has benefited from strong freight markets driven by longer voyages, shifting trade flows and geopolitical disruption around the Strait of Hormuz. He said the market “has more legs” and that Hafnia expects structural factors to support tanker demand through the year. → Voya Financial Grows Earnings Across All 3 Business Segments “Q2 already looks to be a better quarter, stronger quarter than Q1,” Skov said. “All in all, we’ve been extremely satisfied with what we’ve seen so far.” Hafnia owns and charters in, on a financially committed basis, around 118 product tankers and commercially operates another 60 vessels for third-party owners, giving it a global operating fleet of about 180 ships. The company transports refined oil products such as gasoline, diesel and jet fuel. → SpaceX Gets the Attention, But These 4 Stocks Could Get the Returns Skov said disruption in the Middle East has forced refined products to travel longer distances, increasing ton-mile demand for vessels. He cited examples of cargoes that would normally load in the Middle East and move to Europe or Asia instead being sourced from the U.S. Gulf and shipped over much longer distances. “This is the fundamental change in trading patterns that we have seen and kind of one of the main reasons why the market has become so strong,” Skov said. → Ross Stores Earnings Beat Sends Stock To New Highs He said the product tanker market often reacts before crude tankers during periods of uncertainty because consumers seek finished fuels immediately. Crude oil must first be transported to refineries and processed before it can reach end users, while product tankers carry fuels that are ready for consumption. Skov said global oil inventories are being drawn down rapidly as the market compensates for reduced flows from the Arabian Gulf. He warned that if the current situation persists, fuel shortages could become more serious and prices could rise enough to reduce demand. “If this continues for another month, there will be serious shortage of fuel around the world, and prices will go so high that it will kill demand,” he said. Management’s working assumption is that some form of solution will eventually allow safe transit through the Strait of Hormuz. However, Skov said a reopening would not immediately restore the market to pre-crisis conditions. He said damage to oil production infrastructure in the Middle East affects about 2 million barrels per day out of a total of 5 million barrels per day and could take “at least two to three quarters” to repair. Skov also said the aftermath could create further tanker demand if countries decide to rebuild inventories to higher levels than before the crisis. “The inventory rebuild will drive the tanker market for not just this year, possibly also into next year,” he said. Skov highlighted Hafnia’s fleet age as a competitive advantage. The company’s average fleet age is 9.6 years, compared with an industry average of about 14 years, he said. Newer ships are more efficient and better aligned with fuel consumption and emissions-reduction goals, he added. He also pointed to an aging tanker fleet globally and a long period of underinvestment in new ships. Even with the current order book, Skov said the market is not on track to fully replace older vessels by the end of the decade. “We will be running shorter ships by the end of this decade for sure,” he said. “We need renewal without any doubt, and we are by no means exceeding the demand for tankers yet.” On Russia-related trade, Skov said Hafnia is seeing reduced utilization of the so-called dark fleet and sanctioned tonnage that has carried Russian oil. He said any normalization of Russian oil exports would likely move more cargo into the compliant transportation market, where Hafnia and its peers operate. Hafnia has already covered more than 70% of the second quarter at about $46,000 per day, Skov said. The company is also close to 40% covered for the balance of the year, supported by spot fixtures already concluded and a hedging ratio approaching 30% on a 12-month basis. Skov said that coverage reduces uncertainty and supports management’s view that 2026 will be “a very, very strong year.” The main risk, he said, is that prolonged conflict could draw inventories so low and push prices so high that oil demand falls. Asked how Hafnia is positioning its fleet amid uncertainty, Skov said the company is prioritizing flexibility and avoiding becoming isolated in areas where oil exports could stop. He said Hafnia is prepared to shift vessels between the Western and Eastern hemispheres if demand from the Arabian Gulf recovers. The company currently has one vessel in the Strait of Hormuz, Skov said, adding that the crew has been changed more than once and that “everybody’s fine.” Hafnia’s dividend policy is tied to net loan-to-value. Skov said net LTV was just above 20% at the end of Q1, placing the company in a range where it pays out 80% of net profit. He said Hafnia has paid dividends for 17 consecutive quarters and remains focused on returning capital to shareholders when market conditions are strong. Skov said any future share repurchases would be in addition to the existing dividend policy rather than a replacement for it. On debt, Skov said Hafnia continues to reduce borrowings through normal amortization and payback. He said the company does not believe a no-debt model is the most efficient capital structure for an asset-heavy business. Skov also discussed Hafnia’s recent investment in TORM, saying it has been profitable so far. He reiterated Hafnia’s view that consolidation in the sector could create value because companies with market capitalizations above roughly $5 billion to $6 billion tend to trade at better ratios relative to net asset value than companies in the $2 billion to $3 billion range. Hafnia does not plan to enter LNG transportation, Skov said. Instead, the company is expanding modestly into “easy chemicals,” including biofuels and other related products, while maintaining its focus on refined oil products. Skov also briefly addressed Complexio, a technology platform Hafnia co-founded and has begun rolling out internally. He said it is designed to automate workflows inside the company’s own secure systems rather than requiring sensitive data to be uploaded to external large language models. 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 Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.