Highlights
Time Charter Equivalent (TCE) earnings for Hafnia Limited (the “Company” or “Hafnia”, together with its subsidiaries, the “Group”) were USD 163.3 million in Q1 2022 (Q1 2021: USD 100.0 million) resulting in an average TCE of USD 15,761 per day. EBITDA was USD 87.5 million in Q1 2022 (Q1 2021: USD 37.1 million).
In Q1 2022, Hafnia recorded a net profit of USD 21.3 million equivalent to a profit per share of USD 0.05 per share (Q1 2021: net loss of USD 15.7 million equivalent to a loss per share of USD 0.04 per share). The commercially managed pool business generated an income of USD 6.0 million (Q1 2021: USD 4.6 million). As of 20 May 2022, 70% of total earning days of the fleet were covered
for Q2 at USD 27,193 per day.
Operating cash flow breakeven was USD 14,382 per day in the quarter. In the last week, average fixed earnings for the MR and LR1 vessels are USD 32,646 per day and USD 57,506 per day respectively.
In Q1 2022, Hafnia carried out the following activities:
• On 21 January 2022, the Andromeda joint venture took delivery of an MR vessel, PS Stars.
• On 27 January 2022, Hafnia completed the acquisition of Chemical Tankers Inc (“CTI”) and its fleet of 32 vessels.
• On 27 January 2022, Hafnia entered into an agreement to purchase a fleet of 12 LR1 vessels from Scorpio Tankers Inc (“STI”). Six of the LR1s have since been delivered as at Q1 2022 with the remaining six to be delivered in Q2 2022.
• On 18 February 2022, Hafnia sold the Handy vessel, Hafnia Karava.
• On 18 March 2022, Hafnia closed the USD 70.0 million upsizing of its existing USD 216.0 million facility.
• On 29 March 2022, Hafnia entered into an agreement for the en bloc sale of eight stainless steel vessels out of the CTI fleet acquired to an external party for a total consideration of USD 252.4 million. The vessels were subsequently classified as assets held for sale on the balance sheet.
Market
The dislocation between physical oil demand and supply directly related to the Russia-Ukraine conflict led to an increase in long-haul voyages from the US Gulf Coast and the East of Suez to Europe, replacing missing Russian barrels. This has resulted in elevated market sentiment, causing earnings in the product tanker market to increase considerably in Q2 2022. Hafnia’s pool earnings averaged USD 34,011 per day for the Handy vessels, USD 32,646 per day for the MR vessels and USD 57,506 per day for the LR1 vessels for the week starting Monday, 16 May 2022. The outlook for the product tanker market for the rest of 2022 leans towards the positive. However, OPEC’s struggles to meet production quotas coupled with China’s zero COVID policy-related lockdowns and the risk of decreasing world oil demand due to high inflation and a luring financial crisis are downside risks to the market. On the upside, record low global product inventories, higher ton-mile demand driven by diesel shortages, high refinery margins and growing demand for jet fuel from the pick-up in air travel are likely to keep product tanker utilisation and earnings supported for the rest of 2022.
Fleet
At the end of the quarter, Hafnia had 126 owned vessels1 and 13 chartered-in vessels. The total fleet of the Group comprises six LR2s, 38 LR1s (including four bareboat-chartered in and four time-chartered in), 52 MRs (including nine time-chartered in), 11 Handy vessels. The chemical tankers fleet includes six Chemical – MR vessels, 18 Chemical – Handy vessels and eight Chemical – Stainless vessels (classified as assets held for sale) which are bareboat-chartered in. The average estimated broker value of the owned fleet was USD 2,977 million, of which the LR2 vessels had a broker value of USD 323 million, the LR1 fleet had a broker value of USD 738 million, the MR fleet had a broker value of USD 1,074 million, the Handy vessels had a broker value of USD 187 million, the Chemical – MR vessels had a broker value of USD 184 million and the Chemical – Handy vessels had a broker value of USD 470 million. The fleet chartered-in had a right-of-use asset book value of USD 102 million with a corresponding lease liability of USD 108 million.
Key information relating to the cash dividend paid by the Company for the first quarter 2022:
• Dividend amount: 0.021 per share
• Declared currency: USD
• Last day including right to dividends: 25 May 2022
• Ex-date: 27 May 2022
• Payment date: 7 June 2022
This information is published in accordance with the requirements of the Continuing Obligations.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian
Securities Trading Act.
Refer to https://hafniabw.com/wp-content/uploads/2022/05/Quarterly-Earnings-report_Q1-2022.pdf for more.
For further information, please contact:
Mikael Skov
CEO Hafnia Limited
+65 8533 8900
About Hafnia:
Hafnia is one of the world’s leading oil product tanker owners and operators. The Company provides
transportation of oil and oil products to leading national and international oil companies, major chemical
companies, as well as trading and utility companies. Hafnia commercially operates a fleet of 247 vessels, including newbuilds. Among them, 148 are owned or chartered-in, including 10 owned LR2s, 43 owned and chartered-in LR1s, 58 owned and chartered-in MRs, 29 owned Handy and eight Stainless Steel 25K vessels.
Hafnia has a solid history in chartering, operations, and technical management, and strives to offer
customers the best solution for their transportation needs. This solution-focused approach has resulted
in a strong reputation and the Company remains firmly committed to being a responsible member of the
industry and operating according to the highest ethical standards.