SINGAPORE – Hafnia Limited (OSE: HAFNI, NYSE: HAFN), a leading global product tanker owner with a modern fleet of more than 120 vessels, released its financial results for the three‑month and nine‑month periods ended 30 September 2025.
Key Highlights – Third Quarter 2025
- Net profit of $91.5 million, or $0.18 per share, down from $215.6 million ($0.42 per share) in Q3 2024.
- Fee‑based activities contributed $7.1 million, slightly below $7.8 million a year earlier.
- Time Charter Equivalent (TCE) earnings totaled $247.0 million, compared with $361.6 million in Q3 2024, yielding an average TCE rate of $26,040 per day.
- Adjusted EBITDA was $150.5 million versus $257.0 million in the prior year.
- 71% of the fleet’s earning days for Q4 2025 were booked at $25,610 per day as of 14 November 2025.
- Net asset value (NAV) stood at approximately $3.4 billion, or $6.76 per share ($67.55 NOK).
- The company announced a total dividend payout of $73.2 million ($0.1470 per share), representing an 80% payout ratio.
Year‑to‑Date (YTD) – Nine Months Ended 30 September 2025
- Net profit of $230.0 million, or $0.46 per share, versus $694.4 million ($1.36 per share) in the same period last year.
- Fee‑based earnings of $22.9 million, down from $28.3 million a year ago.
- TCE earnings of $696.9 million, down from $1,157.7 million in YTD 2024, delivering an average TCE of $24,493 per day.
- Adjusted EBITDA of $409.7 million, compared with $861.1 million in YTD 2024.
Management Commentary
CEO Mikael Skov noted that “the product tanker market remained counter‑cyclical and robust throughout the third quarter, driven by sustained growth in clean petroleum product exports, especially from the Middle East. This strength is expected to carry into the fourth quarter, supported by higher refining margins and the ongoing impact of sanctions that continue to create inefficiencies and route disruptions.”
Skov added that the quarter’s earnings were affected by an elevated number of off‑hire days – approximately 740 days, about 230 days higher than initially forecast – due to dry‑docking delays and special tank re‑coating projects. “We anticipate off‑hire days to fall to roughly 440 in Q4 as the remaining dry‑dock schedule normalises,” he said.
At quarter‑end, NAV reached $3.4 billion ($6.76 per share), and the net loan‑to‑value (LTV) ratio improved from 24.1% in Q2 to 20.5% in Q3, reflecting strong cash generation. The firm used roughly $100 million to repurchase vessels under sale‑and‑lease‑back arrangements, while market values of the fleet posted a modest uptick.
“We are pleased to deliver an 80% dividend payout, amounting to $73.2 million,” Skov emphasized.
Fleet Activity and Strategic Moves
During the reporting period Hafnia sold four older vessels: the 2011‑built MR Hafnia Andromeda (Sept.), the 2012‑built MR Hafnia Lupus (Oct.), and both the 2010‑built MR Hafnia Nordica and the 2011‑built MR Hafnia Taurus (Nov.).
The company also entered a definitive agreement to acquire a 14.45% stake in TORM from Oaktree, pending the appointment of a new independent board chair at TORM.
Market Outlook
Seasonal demand is expected to boost the oil market as winter approaches, driving higher tonne‑mile activity and supporting earnings. Geopolitical developments—including the easing of US‑China port fee tensions and a cease‑fire in the Israel‑Gaza corridor—should reduce market fragmentation and improve route stability.
On the supply side, limited fleet growth in Q3 (order‑book‑to‑fleet ratio fell to ~18%) and the transition of LR2 vessels into “dirty” trading have tightened the availability of clean product tankers. Additionally, a strong crude tanker market is curbing the crossover of crude‑sector tonnage into the product segment, further supporting freight rates.
Overall, these fundamentals point to a favorable earnings environment for product tankers through the remainder of 2025 and into early 2026, with solid cash flows and a disciplined balance sheet positioning Hafnia to capitalize on market tailwinds.
As of 14 November 2025, 71% of Q4 earning days are covered at an average of $25,610 per day, and 15% of 2026 earning days are covered at $24,506 per day.
We expect our operational breakeven in 2026 to be below $13,000 per day, reflecting continued efficiency gains and disciplined capital allocation.
Fleet Overview (Quarter End)
Hafnia operated 117 owned vessels and 9 chartered‑in vessels, comprising 10 LR2s, 32 LR1s (including 2 bareboat‑chartered and 2 time‑chartered), 60 MR tankers (12 classified as IMO II, including 7 time‑chartered), and 24 Handy vessels (18 IMO II, including 2 bareboat‑chartered). The estimated broker value of the owned fleet was $3,805 million, with $3,388 million attributable to 100% owned vessels and $417 million to Hafnia’s 50% joint‑venture interests.
Financial Summary (Key Figures)
| Q1 2025 | Q2 2025 | Q3 2025 | YTD 2025 | |
|---|---|---|---|---|
| Operating revenue (Hafnia & TC vessels) | $340.3 m | $346.6 m | $366.5 m | $1,053.4 m |
| Profit for the period | $63.2 m | $75.3 m | $91.5 m | $230.0 m |
| Adjusted EBITDA | $125.1 m | $134.2 m | $150.5 m | $409.7 m |
| Return on Equity (annualised) | 11.1 % | 13.2 % | 15.9 % | 13.4 % |
| Equity ratio | 61.6 % | 62.7 % | 65.3 % | 65.3 % |
| Net LTV ratio | 24.1 % | 24.1 % | 20.5 % | 20.5 % |
Time Charter Equivalent (TCE) Performance
TCE income for Q3 2025 was $247 million, reflecting an average rate of $26,040 per operating day (9,485 operating days). Compared with $361.6 million in Q3 2024, the decline mirrors reduced charter rates and higher off‑hire days.
Dividend Declaration
Hafnia will distribute a quarterly dividend of $0.1470 per share. The record date is 9 December 2025. For shares listed on the Oslo Stock Exchange, the dividend will be paid in NOK with an ex‑dividend date of 8 December 2025; for U.S. depository shares, the ex‑dividend date is 9 December 2025.
Forward‑Looking Statements
This release contains forward‑looking statements regarding Hafnia’s financial outlook, market conditions, and strategic initiatives. Such statements are based on current expectations and assumptions that involve risks and uncertainties, including geopolitical tensions, sanctions, fluctuations in oil and product tanker markets, regulatory changes, financing availability, commodity price volatility, and environmental, social and governance (ESG) pressures. Actual results may differ materially from those projected. Hafnia does not undertake to update any forward‑looking statements unless required by law.
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