Full Year 2025 Hafnia Ltd Earnings Call Transcript
Key Points
- Hafnia Ltd (HAFN) reported its strongest quarter of 2025 with a net profit of $109.7 million, contributing to a full-year net profit of $339.7 million.
- The company continued its fleet renewal strategy by divesting older vessels at attractive prices, which will lead to a younger and more efficient fleet.
- Hafnia Ltd (HAFN) declared an 80% payout ratio for Q4, resulting in a total cash dividend of $87.7 million, maintaining a consistent dividend policy for 16 consecutive quarters.
- The company has a strong liquidity profile with $104 million in cash and $324 million in undrawn capacity, totaling around $430 million of availability.
- Hafnia Ltd (HAFN) is advancing its technological capabilities through strategic investments, such as in Complexio, to enhance operational efficiency and decision-making.
- The product tanker market faced challenges with a large number of new build deliveries in 2025, combined with limited scrapping, capping the upside in freight rates.
- Scheduled dry dockings impacted Q4 results, accounting for approximately 550 off-hire days, which was higher than expected due to unscheduled repairs.
- The net LTV ratio increased from 20.5% to 24.9% due to the investment in TORM, raising the debt level.
- Despite strong earnings, the market remains affected by geopolitical unrest and sanctions, which could impact future performance.
- The transition of LR2 vessels into dirty trading has reduced the number of clean trading LR2s, tightening the market and potentially affecting future clean segment operations.
Welcome to Hafnia's fourth quarter 2025 financial results presentation. We will begin shortly. You'll be brought through today's presentation by Hafner 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.
(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.
Thank you, and hello, everyone.
Thanks for joining. Hafnia's fourth quarter
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