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Hafnia Limited
Quarterly Report • Feb 27, 2025
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Quarterly Report
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Hafnia Limited Condensed Consolidated Interim Financial Information Q4 and Full Year 2024
1
Following a strong first nine months in 2024, the product tanker market softened in the fourth quarter, impacted by crude sector cannibalization of the product tanker space and shorter voyages, though partly offset by high daily loadings.
While the market dynamics shifted in the fourth quarter, Hafnia demonstrated resilience in navigating the market, delivering a net profit of USD 79.6 million in Q4 2024. This brings our full-year net profit to USD 774.0 million, marking another year of strong performance.
Our adjacent fee-generating business segments continued to perform well, recording full-year revenue of USD 35.2 million, and our net asset value (NAV)1 at year end stood at approximately USD 3.8 billion (USD 7.63 per share /~NOK 86.34).
The dislocation between our share price and NAV in late 2024 presented an opportunistic moment for share buybacks. Completed on January 24, 2025, we repurchased ~2.8% of the outstanding shares (14,382,255 shares) at approximately 70% of NAV, for an average of USD 5.33 per share and total consideration of USD 76.7 million. Capital utilized for buybacks in December has been deducted from the total payout before declaring Q4 dividends, ensuring combined shareholder returns align with our payout ratio policy.
At the end of Q4, our net Loan-to-Value (LTV) ratio was 23.2%, increasing from Q3 mainly due to a decline in the market value of our vessels. Given that, I am pleased to announce a payout ratio of 80% for the quarter, including USD 49.1 million utilized in share buybacks in December. As a result, we will distribute a total of USD 14.6 million or USD 0.0294 per share in dividends.
Including share buybacks, our full-year payout reached USD 640.8 million, representing a payout ratio of 82.8%.
While the fourth quarter saw rate pressures from increased crude tanker cannibalization, trade volumes and tonne-miles remain at elevated levels, supported by strong global demand. Tanker rates also strengthened with the seasonal winter market. Looking ahead to 2025, while near-term market dynamics are fluid, the fundamental drivers of our business remain solid. The evolving nature of sanctions, tariffs and developments in the Red Sea will continue to influence market dynamics. Importantly, long-term supply fundamentals on the tanker side remain firm, with the current orderbook of approximately 22% offset by an ageing global product tanker fleet and the increasing number of vessels subject to sanctions involving Russia, Iran and Venezuela. Furthermore, LR2s comprise over 50% of the new tonnage expected in the next few years, and historically, 70% of LR2 capacity has been absorbed into the dirty petroleum products trade.
As of February 13, 2025, 67% of the Q1 earning days are covered at an average of USD 23,989 per day, and 25% is covered at USD 24,062 per day for 2025.
Reflecting our fleet renewal strategy and commitment to a sustainable maritime future, we have in January welcomed Ecomar Gascogne, the first of four 49,800 dwt dual-fuel Methanol Chemical IMO-II MRs, ordered through our joint venture with Socatra of France. Two additional vessels are scheduled for delivery later this year, with the fourth in 2026 — all time-chartered to TotalEnergies for a multi-year period. These vessels, running on both conventional fuel and methanol, mark a key step in our decarbonization journey.
In addition, I am proud to announce our recent joint arrangement with Cargill to launch Seascale Energy. This aims to transform marine fuel procurement services by delivering customers worldwide with cost efficiencies, transparency and access to sustainable fuel innovations.
As we conclude 2024 and look forward to 2025, I wish to express my sincere gratitude to the Hafnia team, both onshore and at sea, as well as our valued partners for the excellent results we have achieved together. We will remain focused on making strategic investments in technology and innovation while leveraging our extensive fleet capabilities to drive sustainable growth and solidify our position as a global leader in the product and chemical tanker market.
Mikael Skov CEO Hafnia
1 NAV is calculated using the fair value of Hafnia's owned vessels (including joint venture vessels).
| Safe Harbour Statement4 |
|---|
| Highlights – Q4 and Full year 20245 |
| Key figures8 |
| Condensed consolidated interim statement of comprehensive income9 |
| Condensed consolidated balance sheet 10 |
| Condensed consolidated interim statement of changes in equity 11 |
| Condensed consolidated statement of cash flows 12 |
| Cash and cash flows 13 |
| Dividend policy 13 |
| Coverage of earning days 14 |
| Tanker segment results 15 |
| Risk factors 16 |
| Responsibility statements 16 |
| Note 1: General information 17 |
|---|
| Note 2: Basis of preparation 17 |
| Note 3: Material accounting policies 17 |
| Note 4: Revenue 18 |
| Note 5: Property, plant and equipment 19 |
| Note 6: Shareholders' equity 21 |
| Note 7: Borrowings 22 |
| Note 8: Commitments 24 |
| Note 9: Share-based payment arrangements 25 |
| Note 10: Financial information 26 |
| Note 11: Significant related party transactions 28 |
| Note 12: Joint ventures 29 |
| Note 13: Segment information 32 |
| Note 14: Subsequent events 34 |
| Note 15: Fleet list 35 |
| Note 16: Non-IFRS measures 37 |
Safe Harbour Statement
Disclaimer regarding forward-looking statements in the interim report
Matters discussed in this unaudited interim report (this "Report") may constitute "forward-looking statements". The Private Securities Litigation Reform Act of 1995 provides safe harbour protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts or present facts and circumstances.
We desire to take advantage of the safe harbour provisions of the Private Securities Litigation Reform Act of 1995 and are including this cautionary statement in connection with this safe harbour legislation. This Report and any other written or oral statements made by us or on our behalf may include forward-looking statements, which reflect our current views with respect to future events and financial and operational performance.
These forward-looking statements may be identified by the use of forwardlooking terminology, such as the terms "anticipates", "assumes", "believes", "can", "continue", "could", "estimates", "expects", "forecasts", "intends", "likely", "may", "might", "plans", "should", "potential", "projects", "seek", "will", "would" or, in each case, their negative, or other variations or comparable terminology. They include statements regarding Hafnia Limited (the "Company" or "Hafnia", together with its subsidiaries, the "Group")'s 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.
Prospective investors in Hafnia are cautioned that forward-looking statements are not guarantees of future performance and that the Group's actual financial position, operating results and liquidity, and the development of the industry and potential market in which the Group may operate in the future, may differ materially from those made in, or suggested by, the forward-looking statements contained in this Report. Hafnia cannot guarantee that the intentions, beliefs or current expectations upon which its forward-looking statements are based, will occur.
By their nature, forward-looking statements involve, and are subject to, known and unknown risks, uncertainties and assumptions as they relate to events and depend on circumstances that may or may not occur in the future. Actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors including, but not limited to:
- general economic, political, security, and business conditions, including the development of the ongoing war between Russia and Ukraine and the conflict between Israel and Hamas;
- 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, including the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it;
- changes in expected trends in scrapping 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;
- our ability to comply with, and our liabilities under, governmental, tax, environmental and safety laws and regulations;
- changes in governmental regulations, tax and trade matters and actions taken by regulatory authorities;
- potential disruption of shipping routes and demand due to accidents, piracy 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; and
- the impact of increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to environmental, social and governance initiatives, objectives and compliance.
Additional information about material risk factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found under "Item 3. – Key Information – D. Risk Factors" of Hafnia's Registration Statement on Form 20-F, filed with the U.S. Securities and Exchange Commission on 1 April 2024. 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. All subsequent written and oral forward-looking statements attributable to Hafnia or to persons acting on Hafnia's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this Report.
Highlights – Q4 and Full year 2024
Financial – Q4
In Q4 2024, Hafnia Group recorded a net profit of USD 79.6 million, equivalent to a profit per share of USD 0.16 per share1 (Q4 2023: USD 176.4 million equivalent to a profit per share of USD 0.35 per share).
The commercially managed pool and bunker procurement business generated earnings of USD 6.9 million (Q4 2023: USD 8.8 million).
Time Charter Equivalent (TCE)2 earnings were USD 233.6 million in Q4 2024 (Q4 2023: USD 329.8 million), resulting in an average TCE2 of USD 22,692 per day.
Adjusted EBITDA2 was USD 131.2 million in Q4 2024 (Q4 2023: USD 234.5 million).
As of 13 February 2025, 67% of the total earning days of the fleet were covered for Q1 2025 at USD 23,989 per day.
For Q4 2024, Hafnia will distribute a total of USD 14.6 million or USD 0.0294 per share in dividends, corresponding to a payout ratio of 18.4%. This, combined with USD 49.1 million utilized in share buybacks in Q4 2024, corresponds to a total payout ratio of 80.0%.
Financial – Full year
In YTD 2024, Hafnia Group recorded a net profit of USD 774.0 million equivalent to a profit per share of USD 1.52 per share1 (YTD 2023: USD 793.3 million equivalent to a profit per share of USD 1.57 per share).
The commercially managed pool and bunker procurement business generated earnings of USD 35.2 million (YTD 2023: USD 37.6 million3 ).
Time Charter Equivalent (TCE)2 earnings were USD 1,391.3 million in YTD 2024 (YTD 2023: USD 1,366.6 million), resulting in an average TCE2 of USD 33,000 per day.
Adjusted EBITDA2 was USD 992.3 million in YTD 2024 (YTD 2023: USD 1,012.9 million).
1 Based on weighted average number of shares as at 31 December 2024.
2 See Non-IFRS Measures in Note 16.
3 Excluding a one-off item amounting to USD 7.4 million in Q3 2023.
Highlights – Q4 and Full year 2024 CONTINUED
Market Review & Outlook
Throughout the first nine months of 2024, the product tanker market sustained an extended period of high earnings, driven by strong cargo volumes and tonne-miles, as vessels rerouted from the Suez Canal to the Cape of Good Hope. In the fourth quarter, tanker rates came under pressure due to the increased cannibalization from the crude sector. A key driver of the market, daily loadings of Clean Petroleum Products (CPP), dropped in the beginning of Q4, mainly due to refinery maintenance and market inefficiencies. However, since December 2024 and in the beginning of 2025, CPP loadings on Handy to LR2 tankers have increased significantly. This was largely driven by reduced crude tanker cannibalization and higher export volumes from the US Gulf.
Ton-days for product tankers have also recovered after the dip in early Q4, while earnings have improved less profoundly. This is mainly due to subdued market sentiment, limited cross-hemisphere trading and shorter voyage lengths. Laden voyage lengths dropped by approximately 12%, mainly as a result of increased refinery output from the US Gulf, which has largely replaced Middle East output for European demand.
Global oil demand remained robust and rose seasonally in the fourth quarter, driven by a winter uptick in the Northern Hemisphere. According to the International Energy Agency (IEA), global oil demand increased by 1.4 million barrels per day in the fourth quarter, as a result of a seasonal uptick, lower fuel prices and increased US petrochemical activities. For the full year 2024, global oil demand has increased by 0.87 million barrels per day from 2023, and a further increase of 1.10 million barrels per day is expected for 2025.
Recent OFAC sanctions announced in January 2025, targeting tankers carrying Russia, Iran and Venezuela oil, will have a significant impact on oil flows and tanker markets. China and India have announced they will exclude sanctioned tankers from imports, and we estimate this replacement barrels impact to be equivalent to 100 Suezmax vessels. We have noticed a decline in ton-miles in the sanctioned fleet since, and we expect this to decrease further in the coming months. This will increase the utilization and tonne-mile impact for existing crude tankers, which will result in a significant reduction in cannibalization in the clean market.
On the supply side, the product tanker orderbook-to-fleet ratio is approximately 22% as of February 2025. However, longer term fundamentals are still positive as a growing number of tankers over 20 years old are likely scrapping candidates. Many of these vessels, which operate with lower utilization and are frequently involved in "dark trades," effectively reduce available fleet capacity. As a result, the overall supply balance is expected to remain manageable in the coming years.
Looking ahead, the product tanker market outlook is positive, supported by strong underlying demand and supply fundamentals. However, evolving geopolitical factors—including sanctions, tariffs, and disruptions in the Red Sea—will continue to influence trade flows and market dynamics.
Fleet
At the end of the quarter, Hafnia's fleet consisted of 115 owned vessels1 and 10 chartered-in vessels. The Group's total fleet includes 10 LR2s, 33 LR1s (including three bareboat-chartered in and three time-chartered in), 58 MRs of which nine are IMO II (including two bareboat-chartered in and seven time-chartered in), and 24 Handy vessels of which 18 are IMO II (including seven bareboat-chartered in).
The average estimated broker value of the owned fleet1 was USD 4,289 million, of which the LR2 vessels had a broker value of USD 609 million2 , the LR1 fleet had a broker value of USD 1,187 million2 , the MR fleet had a broker value of USD 1,721 million3 and the Handy vessels had a broker value of USD 772 million4 . The unencumbered vessels had a broker value of USD 402 million. The chartered-in fleet had a right-of-use asset book value of USD 18.7 million with a corresponding lease liability of USD 20.4 million.
1 Including bareboat chartered in vessels; six LR1s and four LR2s owned through 50% ownership in the Vista Shipping Joint Venture and two MRs owned through 50% ownership in the H&A Shipping Joint Venture 2 Including USD 336 million relating to Hafnia's 50% share of six LR1s and four LR2s owned through 50% ownership in the Vista Shipping Joint Venture
3 Including USD 48 million relating to Hafnia's 50% share of two MRs owned through 50% ownership in the H&A Shipping Joint Venture; and IMO II MR vessels
4 Including IMO II Handy vessels
Highlights – Q4 and Full year 2024 CONTINUED
Hafnia will pay a quarterly dividend of USD 0.0294 per share. The record date will be March 7, 2025.
For shares registered in the Euronext VPS Oslo Stock Exchange, dividends will be distributed in NOK with an ex-dividend date of March 6, 2025 and a payment date on, or about, March 18, 2025.
For shares registered in the Depository Trust Company, the ex-dividend date will be March 7, 2025 with a payment date on, or about, March 13, 2025.
Please see our separate announcement for additional details regarding the Company's dividend.
The Interim Financial Information Q4 and Full Year 2024 has not been audited or reviewed by auditors.
Webcast and Conference call
Hafnia will host a conference call for investors and financial analysts at 9:30 pm SGT/2:30 pm CET/8:30 am EST on February 27, 2025.
The financial results presentations will be available via live video webcast via the following link: Click here to join Hafnia's Investor Presentation on 27 February 2025.
Meeting ID: 350 442 161 405
Passcode: e7Vh3bj6
Download Teams | Join on the web
Dial in by phone: +45 32 72 66 19,,461559896# Denmark, All locations
Phone conference ID: 461 559 896
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.
Hafnia
Mikael Skov, CEO Hafnia
+65 8533 8900
Key figures
| USD million | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Full year 2024 |
|---|---|---|---|---|---|
| Income Statement | |||||
| Operating revenue (Hafnia vessels and TC vessels) | 521.8 | 563.1 | 497.9 | 352.8 | 1,935.6 |
| Profit before tax | 221.3 | 260.8 | 216.8 | 79.6 | 778.5 |
| Profit for the period | 219.6 | 259.2 | 215.6 | 79.6 | 774.0 |
| Financial items | (18.9) | (9.9) | (6.3) | (12.7) | (47.8) |
| Share of profit from joint ventures | 7.3 | 8.5 | 4.1 | 0.6 | 20.5 |
| TCE income1 | 378.8 | 417.4 | 361.6 | 233.6 | 1,391.3 |
| Adjusted EBITDA1 | 287.1 | 317.1 | 257.0 | 131.2 | 992.3 |
| Balance Sheet | |||||
| Total assets | 3,897.0 | 3,922.7 | 3,828.9 | 3,735.0 | 3,735.0 |
| Total liabilities | 1,541.8 | 1,486.2 | 1,408.7 | 1,472.5 | 1,472.5 |
| Total equity | 2,355.2 | 2,436.5 | 2,420.2 | 2,262.5 | 2,262.5 |
| Cash at bank and on hand2 | 128.9 | 166.7 | 197.1 | 195.3 | 195.3 |
| Key financial figures | |||||
| Return on Equity (RoE) (p.a.)3 | 38.3% | 44.5% | 37.1% | 14.2% | 34.5% |
| Return on Invested Capital (p.a.)4 | 27.6% | 31.4% | 26.7% | 11.4% | 25.0% |
| Equity ratio | 60.4% | 62.1% | 63.2% | 60.6% | 60.6% |
| Net loan-to-value (LTV) ratio5 | 24.2% | 21.3% | 19.1% | 23.2% | 23.2% |
| For the 3 months ended 31 December 2024 | LR2 | LR1 | MR6 | Handy7 | Total |
| Vessels on water at the end of the period8 | 6 | 27 | 56 | 24 | 113 |
| Total operating days9 | 536 | 2,386 | 5,309 | 2,062 | 10,293 |
| Total calendar days (excluding TC-in) | 552 | 2,111 | 4,559 | 2,208 | 9,430 |
| TCE (USD per operating day)1 | 25,772 | 21,266 | 22,274 | 24,620 | 22,692 |
| Spot TCE (USD per operating day)1 | 25,508 | 21,378 | 20,984 | 24,401 | 22,085 |
| TC-out TCE (USD per operating day)1 | – | 19,641 | 26,985 | 26,856 | 26,310 |
| OPEX (USD per calendar day)10 | 7,719 | 7,971 | 8,187 | 8,270 | 8,131 |
| G&A (USD per operating day)11 | 1,518 |
Vessels on balance sheet
As at 31 December 2024, total assets amounted to USD 3,735.0 million, of which USD 2,588.2 million represents the carrying value of the Group's vessels including dry docking but excluding right-of-use assets, is as follows:
| Balance Sheet USD million |
LR2 | LR1 | MR6 | Handy7 | Total |
|---|---|---|---|---|---|
| Vessels (including dry-dock) | 246.5 | 613.7 | 1,192.4 | 535.6 | 2,588.2 |
1 See Non-IFRS Measures in Note 16.
2 Excluding cash retained in the commercial pools.
3 Annualised
4 ROIC is calculated using annualised EBIT less tax.
5 Net loan-to-value is calculated (excluding joint venture vessels and debt) as vessel bank and finance lease debt (excluding debt for vessels sold but pending legal completion), debt from the pool borrowing base facilities less cash at bank and on hand, divided by broker vessel values (100% owned vessels).
6 Inclusive of nine IMO II MR vessels.
7 Inclusive of 18 IMO II Handy vessels.
8 Excluding six LR1s and four LR2s owned through 50% ownership in the Vista Shipping Joint Venture and two MRs owned through 50% ownership in the H&A Shipping Joint Venture.
9 Total operating days include operating days for vessels that are time chartered-in. Operating days are defined as the total number of days (including waiting time) in a period during which each vessel is owned, partly owned, operated under a bareboat arrangement (including sale and lease-back) or time chartered-in, net of technical off-hire days. Total operating days stated in the quarterly financial information include operating days for TC Vessels.
10 OPEX includes vessel running costs and technical management fees.
11 G&A includes all expenses and is adjusted for cost incurred in managing external vessels.
Condensed consolidated interim statement of comprehensive income
| For the 3 months ended 31 December |
For the 3 months ended 31 December |
For the 12 months ended 31 December |
For the 12 months ended 31 December |
|
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| USD'000 | USD'000 | USD'000 | USD'000 | |
| Revenue (Hafnia Vessels and TC Vessels)1 Revenue (External Vessels in Disponent-Owner Pools)2 |
352,817 180,044 |
472,007 231,432 |
1,935,596 933,051 |
1,915,472 756,234 |
| Voyage expenses (Hafnia Vessels and TC Vessels)1 | (119,257) | (142,200) | (544,317) | (548,865) |
| Voyage expenses (External Vessels in Disponent-Owner Pools)2 | (83,995) | (80,482) | (332,802) | (279,749) |
| Pool distributions for External Vessels in Disponent-Owner Pools2 | (96,049) | (150,950) | (600,249) | (476,485) |
| 233,560 | 329,807 | 1,391,279 | 1,366,607 | |
| Other operating income | 6,892 | 8,832 | 35,195 | 44,984 |
| Vessel operating expenses | (69,126) | (67,704) | (278,041) | (268,869) |
| Technical management expenses | (7,545) | (6,837) | (28,173) | (25,692) |
| Charter hire expenses | (11,845) | (9,371) | (48,496) | (34,571) |
| Other expenses | (20,767) | (20,195) | (79,446) | (69,571) |
| 131,169 | 234,532 | 992,318 | 1,012,888 | |
| Gain/(loss) on disposal of assets | 12,999 | (295) | 28,520 | 56,087 |
| Depreciation charge of property, plant and equipment | (52,404) | (53,386) | (214,308) | (209,727) |
| Amortisation charge of intangible assets | (108) | (324) | (803) | (1,300) |
| Operating profit | 91,656 | 180,527 | 805,727 | 857,948 |
| Interest income | 4,578 | 3,143 | 16,317 | 17,629 |
| Interest expense | (13,645) | (3,600) | (52,375) | (77,385) |
| Capitalised financing fees written off | – | (5,894) | (2,069) | (5,894) |
| Other finance expense | (3,619) | (733) | (9,662) | (11,845) |
| Finance expense – net | (12,686) | (7,084) | (47,789) | (77,495) |
| Share of profit of equity-accounted investees, net of tax | 601 | 4,875 | 20,515 | 19,073 |
| Profit before income tax | 79,571 | 178,318 | 778,453 | 799,526 |
| Income tax benefit/(expense) | 61 | (1,883) | (4,418) | (6,251) |
| Profit for the financial period | 79,632 | 176,435 | 774,035 | 793,275 |
| Other comprehensive income: | ||||
| Items that may be subsequently reclassified to profit or loss: | ||||
| Foreign operations – foreign currency translation differences | (191) | (36) | (135) | (92) |
| Fair value gains/(losses) on cash flow hedges | 10,197 | (14,220) | 14,522 | 13,378 |
| Reclassification to profit or loss | (5,712) | (17,082) | (33,129) | (42,524) |
| 4,294 | (31,338) | (18,742) | (29,238) | |
| Items that will not be subsequently reclassified to profit or loss: | ||||
| Equity investments at FVOCI – net change in fair value | (74) | 9,720 | 1,186 | 9,720 |
| Total other comprehensive income/(loss) | 4,220 | (21,618) | (17,556) | (19,518) |
| Total comprehensive income for the period, net of tax | 83,852 | 154,817 | 756,479 | 773,757 |
| Earnings per share attributable to the equity holders of the Company | ||||
| Basic number of shares | 510,097,559 | 505,143,719 | 510,097,559 | 505,143,719 |
| Basic earnings per share (USD per share) | 0.16 | 0.35 | 1.52 | 1.57 |
| Diluted number of shares | 515,108,516 | 508,687,936 | 515,108,516 | 508,687,936 |
| Diluted earnings per share (USD per share) | 0.15 | 0.34 | 1.50 | 1.56 |
1 "TC Vessels" are vessels that have been time chartered-in to the Group (including ROU assets).
2 "External Vessels in Disponent-Owner Pools" means vessels that are commercially managed by the Group in the Disponent-Owner Pool arrangements that are not Hafnia Vessels or TC Vessels.
Condensed consolidated balance sheet
| As at 31 December 2024 | As at 31 December 2023 | |
|---|---|---|
| Vessels | USD'000 2,521,223 |
USD'000 2,673,938 |
| Dry docking and scrubbers | 66,945 | 68,159 |
| Right-of-use assets – Vessels | 18,661 | 34,561 |
| Other property, plant and equipment | 733 | 964 |
| Total property, plant and equipment | 2,607,562 | 2,777,622 |
| Intangible assets | 510 | 1,290 |
| Total intangible assets | 510 | 1,290 |
| Other investments | 23,069 | 23,953 |
| Derivative financial instruments | 12,024 | 35,023 |
| Deferred tax assets | – | 36 |
| Restricted cash1 | 13,542 | 13,381 |
| Loans receivable from joint ventures | 64,133 | 69,626 |
| Joint ventures | 81,371 | 60,172 |
| Total other non-current assets | 194,139 | 202,191 |
| Total non-current assets | 2,802,211 | 2,981,103 |
| Intangible assets | 5,919 | – |
| Total intangible assets | 5,919 | – |
| Inventories | 94,155 | 107,704 |
| Trade and other receivables | 536,545 | 589,710 |
| Derivative financial instruments | 12,601 | 12,902 |
| Cash at bank and on hand | 195,271 | 141,621 |
| Cash retained in the commercial pools2 | 88,297 | 80,900 |
| Total other current assets | 926,869 | 932,837 |
| Total current assets | 932,788 | 932,837 |
| Total assets | 3,734,999 | 3,913,940 |
| Share capital3 | 1,630,167 | 5,069 |
| Share premium3 | - | 1,044,849 |
| Contributed surplus3 | - | 537,112 |
| Other reserves | (19,399) | 27,620 |
| Treasury shares | (53,439) | (17,951) |
| Retained earnings | 705,177 | 631,025 |
| Total shareholders' equity | 2,262,506 | 2,227,724 |
| Borrowings | 785,954 | 1,025,023 |
| Total non-current liabilities | 785,954 | 1,025,023 |
| Borrowings4 | 336,295 | 267,328 |
| Derivative financial instruments | 1,939 | 276 |
| Current income tax liabilities | 2,757 | 8,111 |
| Trade and other payables | 345,548 | 385,478 |
| Total current liabilities | 686,539 | 661,193 |
| Total liabilities | 1,472,493 | 1,686,216 |
| Total shareholders' equity and liabilities | 3,734,999 | 3,913,940 |
1 Restricted cash includes cash placed in debt service reserve and FFA collateral accounts.
2 The cash retained in the commercial pools represents cash in the pool bank accounts that are opened in the name of the Group's pool management company and can only be used for the operation of vessels within the commercial pools.
3 Due to the re-domiciliation of Hafnia Limited from Bermuda to Singapore on 1 October 2024.
4 The borrowings include USD 99.0 million in bank borrowings relating to pool financing arrangements, of which approximately USD 43.5 million is attributable to working capital advanced to external pool participants and has been adjusted in the Net LTV computation.
Condensed consolidated interim statement of changes in equity
| Share capital USD'000 |
Share premium USD'000 |
Contributed surplus USD'000 |
Translation reserve USD'000 |
Hedging reserve USD'000 |
Treasury shares USD'000 |
Capital reserve USD'000 |
Share-based payment reserve USD'000 |
Fair value reserve USD'000 |
Retained earnings USD'000 |
Total USD'000 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2024 |
5,069 | 1,044,849 | 537,112 | (63) | 39,312 | (17,951) | (25,137) | 3,788 | 9,720 | 631,025 | 2,227,724 |
| Transactions with owners | |||||||||||
| Equity-settled share-based payment |
– | – | – | – | – | – | – | 2,960 | – | – | 2,960 |
| Share options exercised |
– | – | – | – | – | 33,358 | (29,593) | (2,830) | – | – | 935 |
| Purchase of treasury shares and issuance of shares |
57 | 43,080 | – | – | – | (68,846) | – | – | – | – | (25,709) |
| Dividends paid | – | – | – | – | – | – | – | – | – | (699,883) | (699,883) |
| Effect of re domiciliation |
1,625,041 | (1,087,929) | (537,112) | – | – | – | – | – | – | - | - |
| Total comprehensive income | |||||||||||
| Profit for the financial period |
– | – | – | – | – | – | – | – | – | 774,035 | 774,035 |
| Other comprehensive (loss)/income |
– | – | – | (135) | (18,607) | – | – | – | 1,186 | – | (17,556) |
| Balance at 31 December 2024 |
1,630,167 | – | – | (198) | 20,705 | (53,439) | (54,730) | 3,918 | 10,906 | 705,177 | 2,262,506 |
| Balance at 1 January 2023 |
5,035 | 1,023,996 | 537,112 | 29 | 68,458 | (12,675) | (710) | 5,873 | – | 381,886 | 2,009,004 |
| Transactions with owners | |||||||||||
| Equity-settled share-based payment |
– | – | – | – | – | – | – | 2,822 | – | – | 2,822 |
| Share options exercised |
– | – | – | – | – | 39,063 | (24,427) | (4,907) | – | – | 9,729 |
| Purchase of treasury shares and issuance of shares |
34 | 20,853 | – | – | – | (44,339) | – | – | – | – | (23,452) |
| Dividends paid | – | – | – | – | – | – | – | – | – | (544,136) | (544,136) |
| Total comprehensive income | |||||||||||
| Profit for the financial period |
– | – | – | – | – | – | – | – | – | 793,275 | 793,275 |
| Other comprehensive (loss)/income |
– | – | – | (92) | (29,146) | – | – | – | 9,720 | – | (19,518) |
| Balance at 31 December 2023 |
5,069 | 1,044,849 | 537,112 | (63) | 39,312 | (17,951) | (25,137) | 3,788 | 9,720 | 631,025 | 2,227,724 |
Condensed consolidated statement of cash flows
| For the 3 months | For the 3 months | For the 12 months | For the 12 months | |
|---|---|---|---|---|
| ended 31 December 2024 |
ended 31 December 2023 |
ended 31 December 2024 |
ended 31 December 2023 |
|
| USD'000 | USD'000 | USD'000 | USD'000 | |
| Cash flows from operating activities | ||||
| Profit for the financial period | 79,632 | 176,435 | 774,035 | 793,275 |
| Adjustments for: | ||||
| - income tax expense | (61) | 1,883 | 4,418 | 6,251 |
| - depreciation and amortisation charges | 52,512 | 53,710 | 215,111 | 211,027 |
| - (gain)/loss on disposal of assets | (12,999) | 295 | (28,520) | (56,087) |
| - interest income | (4,578) | (3,143) | (16,317) | (17,629) |
| - finance expense | 17,264 | 10,227 | 64,106 | 95,124 |
| - share of profit of equity-accounted investees, net of tax | (601) | (4,875) | (20,515) | (19,073) |
| - equity-settled share-based payment transactions | 521 | 680 | 2,960 | 2,822 |
| Operating cash flow before working capital changes | 131,690 | 235,212 | 995,278 | 1,015,710 |
| Changes in working capital: | ||||
| - intangible assets | 1,934 | – | (5,919) | – |
| - inventories | 4,228 | (262) | 13,549 | (17,773) |
| - trade and other receivables | 32,351 | (104,122) | 53,415 | (139,166) |
| - trade and other payables | 26,064 | 57,172 | (16,445) | 205,663 |
| Cash generated from operations | 196,267 | 188,000 | 1,039,878 | 1,064,434 |
| Income tax refunded/(paid) | 871 | (208) | (9,514) | (3,628) |
| Net cash provided by operating activities | 197,138 | 187,792 | 1,030,364 | 1,060,806 |
| Cash flows from investing activities | ||||
| Interest income received | 3,752 | 2,085 | 12,459 | 13,583 |
| Loan to joint ventures | (1,291) | – | (13,207) | (15,488) |
| Acquisition of other investments | (200) | 1 | (861) | (10,408) |
| Equity investment in joint venture | – | (2,183) | (2,217) | (2,240) |
| Return of investment in joint venture | – | – | 1,360 | – |
| Purchase of intangible assets | (1) | – | (23) | – |
| Proceeds from disposal of property, plant and equipment | 28,541 | (328) | 57,098 | 142,793 |
| Proceeds from disposal of other investments | – | – | 2,343 | – |
| Repayment of loan by joint venture company | – | – | 22,540 | 23,975 |
| Dividend received from joint venture | – | – | – | 500 |
| Purchase of property, plant and equipment | (13,227) | (46,070) | (49,600) | (184,392) |
| Net cash provided by/(used in) investing activities | 17,574 | (46,495) | 29,892 | (31,677) |
| Cash flows from financing activities | ||||
| Proceeds from borrowings from external financial institutions | 80,000 | – | 110,000 | 247,030 |
| Repayment of borrowings to external financial institutions | (29,669) | (15,725) | (109,136) | (309,064) |
| Repayment of borrowings to non-related parties | – | – | – | (5,429) |
| Repayment of lease liabilities | (21,654) | 21,549 | (201,191) | (390,153) |
| Payment of financing fees | – | – | (1,085) | (3,997) |
| Interest paid to external financial institutions | (4,277) | (16,597) | (41,683) | (73,634) |
| Interest paid to a third party | – | (1) | – | (5,707) |
| Proceeds from exercise of employee share options | 409 | 353 | 935 | 9,286 |
| Dividends paid | (193,364) | (102,874) | (699,883) | (544,136) |
| Repurchase of treasury shares | (49,161) | – | (49,161) | – |
| Other finance expense paid | (1,803) | (1,521) | (8,005) | (11,129) |
| Net cash used in financing activities | (219,519) | (114,816) | (999,209) | (1,086,933) |
| Net (decrease)/increase in cash and cash equivalents | (4,807) | 26,481 | 61,047 | (57,804) |
| Cash and cash equivalents at beginning of the financial period | 288,375 | 196,040 | 222,521 | 280,325 |
| Cash and cash equivalents at end of the financial period | 283,568 | 222,521 | 283,568 | 222,521 |
| Cash and cash equivalents at the end of the financial period consists of: | ||||
| Cash at bank and on hand | 195,271 | 141,621 | 195,271 | 141,621 |
| Cash retained in the commercial pools | 88,297 | 80,900 | 88,297 | 80,900 |
| 283,568 | 222,521 | 283,568 | 222,521 | |
Cash and cash flows
Cash at bank and on hand1 amounted to USD 195.3 million as at 31 December 2024 (31 December 2023: USD 141.6 million).
Operating activities generated a net cash inflow of USD 197.1 million in Q4 2024 (Q4 2023: net cash inflow of USD 187.8 million).
Cash flows from operating activities were principally utilised for vessel drydocking costs, repayments of borrowings and interest, payment of dividends to shareholders and share buybacks.
Investing activities resulted in a net cash inflow of USD 17.6 million in Q4 2024 (Q4 2023: net cash outflow of USD 46.5 million).
Financing activities resulted in a net cash outflow of USD 219.5 million in Q4 2024 (Q4 2023: net cash outflow of USD 114.8 million).
Dividend policy
Hafnia will target a quarterly payout ratio of net profit, adjusted for extraordinary items, of:
- 50% payout of net profit if net loan-to-value is above 40%,
- 60% payout of net profit if net loan-to-value is above 30% but equal to or below 40%,
- 80% payout of net profit if net loan-to-value is above 20% but equal to or below 30%, and
- 90% payout of net profit if net loan-to-value is equal to or below 20%.
Net loan-to-value is calculated as vessel bank and finance lease debt (excluding debt for vessels sold but pending legal completion), debt from the pool borrowing base facilities less cash at bank and on hand, divided by broker vessel values (100% owned vessels).
The final amount of dividend is to be decided by the Board of Directors. In addition to cash dividends, the Company may buy back shares as part of its total distribution to shareholders.
In deciding whether to declare a dividend and determining the dividend amount, the Board of Directors will take into account the Group's capital requirements, including capital expenditure commitments, financial condition, general business conditions, legal restrictions, and any restrictions under borrowing arrangements or other contractual arrangements in place at the time.
Dividend for Q4
The board has set the quarterly payout ratio at 80% for Q4 2024, which includes amounts utilized in share buybacks during the quarter. After deducting USD 49.1 million utilized for share buybacks in Q4 2024, the declared dividend amounts to USD 14.6 million, representing a dividend payout ratio of 18.4%. For further details, please refer to our stock exchange announcement on December 2, 2024, regarding the launch of the share buyback program.
1 Excluding cash retained in the commercial pools.
Coverage of earning days
As of 13 February 2025, 67% of the projected total operating days in Q1 2025 were covered at USD 23,989 per day. The tables below show the figures for Q1 2025, the full year figures for 2025 and the full year figures for 2026.
Hafnia Fleet1
| Fleet overview | Q1 2025 | 2025 | 2026 |
|---|---|---|---|
| Hafnia vessels (average during the period) | |||
| LR2 | 6.0 | 6.0 | 6.0 |
| LR1 | 26.6 | 26.1 | 25.1 |
| MR2 | 57.2 | 55.7 | 55.0 |
| Handy3 | 24.0 | 24.0 | 24.0 |
| Total | 113.8 | 111.8 | 110.1 |
| Covered, % | |||
| LR2 | 61% | 15% | - |
| LR1 | 64% | 16% | - |
| MR2 | 67% | 30% | 6% |
| Handy3 | 73% | 26% | 8% |
| Total | 67% | 25% | 5% |
| Covered rates4 , USD per day |
|||
| LR2 | 31,578 | 31,578 | - |
| LR1 | 24,093 | 24,093 | - |
| MR2 | 23,984 | 24,161 | 23,209 |
| Handy3 | 22,328 | 22,688 | 24,934 |
| Total | 23,989 | 24,062 | 23,855 |
The coverage figures include FFA positions which are mainly covering a triangulation route from Northwest Europe to the US Atlantic Coast (TC2), followed by a haul from the US Gulf back to the European Continent (TC14) for the MR fleet.
For the week beginning February 17, 2025, Hafnia's pool earnings4 averaged:
- USD 20,043 per day for the LR2 vessels,
- USD 35,285 per day for the LR15 vessels,
- USD 22,148 per day for the MR2 vessels,
- USD 16,403 per day for the Handy3 vessels.
Joint Ventures fleet6
| Fleet overview | Q1 2025 | 2025 | 2026 |
|---|---|---|---|
| Joint ventures vessels (average during the period) | |||
| LR2 | 4.0 | 4.0 | 4.0 |
| LR1 | 6.0 | 6.0 | 6.0 |
| MR | 2.8 | 4.0 | 5.7 |
| Total | 12.9 | 14.0 | 15.7 |
1 Excludes joint ventures vessels.
2 Inclusive of nine IMO II vessels.
3 Inclusive of 18 IMO II vessels.
4 Covered rates and pool earnings do not include any IFRS 15 load to discharge adjustments.
5 Excluding vessels trading in our Panamax pool.
6 The figures are presented on a 100% basis. The joint ventures vessels are owned through Hafnia's 50% participation in the Vista Shipping, H&A Shipping and Ecomar joint ventures.
Coverage of earning days CONTINUED
| Fleet overview | Q1 2025 | 2025 | 2026 |
|---|---|---|---|
| Covered, % | |||
| LR2 | 100% | 100% | 100% |
| LR1 | 61% | 15% | - |
| MR | 100% | 100% | 93% |
| Total | 82% | 63% | 59% |
| Covered rates1 , USD per day |
|||
| LR2 | 25,875 | 25,875 | 25,875 |
| LR1 | 25,742 | 25,742 | - |
| MR | 18,274 | 20,031 | 21,836 |
| Total | 23,761 | 23,242 | 23,579 |
Tanker segment results
| LR2 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---|---|---|---|---|
| Operating days (owned) | 483 | 544 | 506 | 536 |
| Operating days (TC -in) | – | – | – | – |
| TCE (USD per operating day)2 | 52,813 | 60,116 | 42,829 | 25,772 |
| Spot TCE (USD per operating day) 2 |
51,668 | 60,116 | 42,829 | 25,508 |
| 2 TC-out TCE (USD per operating day) |
– | – | – | – |
| Calendar days (excluding TC -in) | 546 | 546 | 552 | 552 |
| OPEX (USD per calendar day) | 8,550 | 7,626 | 8,112 | 7,719 |
| LR1 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---|---|---|---|---|
| Operating days (owned) | 2,196 | 2,183 | 2,097 | 2,075 |
| Operating days (TC -in) | 350 | 331 | 367 | 311 |
| 2 TCE (USD per operating day) |
46,749 | 46,986 | 37,564 | 21,266 |
| Spot TCE (USD per operating day) 2 |
46,454 | 46,986 | 37,689 | 21,378 |
| TC-out TCE (USD per operating day) 2 |
– | – | 27,401 | 19,641 |
| Calendar days (excluding TC -in) | 2,275 | 2,275 | 2,163 | 2,111 |
| OPEX (USD per calendar day) | 8,178 | 8,048 | 8,353 | 7,971 |
| MR3 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---|---|---|---|---|
| Operating days (owned) | 4,355 | 4,484 | 4,550 | 4,476 |
| Operating days (TC -in) | 888 | 910 | 1,053 | 833 |
| TCE (USD per operating day) 2 |
32,888 | 35,913 | 31,928 | 22,274 |
| Spot TCE (USD per operating day) 2 |
34,237 | 38,077 | 32,896 | 20,984 |
| TC-out TCE (USD per operating day) 2 |
26,211 | 25,674 | 27,524 | 26,985 |
| Calendar days (excluding TC -in) | 4,550 | 4,550 | 4,600 | 4,559 |
| OPEX (USD per calendar day) | 7,812 | 8,050 | 8,044 | 8,187 |
| Handy4 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---|---|---|---|---|
| Operating days (owned) | 2,184 | 2,183 | 2,203 | 2,062 |
| Operating days (TC -in) | – | – | – | – |
| 2 TCE (USD per operating day) |
28,305 | 33,358 | 31,047 | 24,620 |
| Spot TCE (USD per operating day) 2 |
28,475 | 34,474 | 31,722 | 24,401 |
| 2 TC-out TCE (USD per operating day) |
26,428 | 25,447 | 25,307 | 26,856 |
| Calendar days (excluding TC -in) | 2,184 | 2,184 | 2,208 | 2,208 |
| OPEX (USD per calendar day) | 7,569 | 8,045 | 8,142 | 8,270 |
1 Covered rates and pool earnings do not include any IFRS 15 load to discharge adjustments
2 TCE represents gross TCE income after adding back pool commissions; See Non-IFRS Measures in Note 16.
3 Inclusive of IMO II MR vessels.
4 Inclusive of IMO II Handy vessels.
Risk factors
The Group's results are largely dependent on the worldwide market for transportation of refined oil products. Market conditions for shipping activities are typically volatile and, as a consequence, the results may vary considerably from year to year. The market in broad terms is dependent upon two factors: the supply of vessels and the demand for oil products. The supply of vessels depends on the number of newbuilds entering the market, the demolition of older tonnage and legislation that limits the use of older vessels or sets new standards for vessels used in specific trades. The demand side depends mainly on developments in global economic activity.
The Group is also exposed to risk in respect of increases in operating costs, such as fuel oil costs. Fuel oil prices are affected by the global political and economic environment. For voyage contracts, the current fuel costs are priced into the contracts. Other risks that Management takes into account are interest rate risk, credit risk, liquidity risk and capital risk. These risks, along with mitigation strategies, are further described in section 2.3 of the Annual Report 2023 and note 26 of the consolidated financial statements of the Group for the financial year ended 2023 and are principal risks for the financial year 2024.
Responsibility statements
We confirm, to the best of our knowledge, that the condensed set of consolidated interim financial information ('Interim Financial Information') for the period from 1 January to 31 December 2024 has been prepared in accordance with IAS 34 – Interim Financial Reporting, and gives a true and fair view of the Group's assets, liabilities, financial position and income statement as a whole. We also confirm, to the best of our knowledge, that the Interim Financial Information includes a fair review of important events that have occurred during the financial year ended 31 December 2024 and their impact on the Interim Financial Information, a description of the principal risks and uncertainties for the remaining three months of the financial year, and major related party transactions.
Andreas Sohmen-Pao John Ridgway Peter Read Su Yin Anand Erik Bartnes
27 February 2025
Notes to the Condensed Consolidated Interim Financial Information
These notes form an integral part of and should be read in conjunction with the accompanying unaudited condensed consolidated interim financial information.
Note 1: General information
Hafnia Limited (the "Company") is listed on the Oslo and New York Stock Exchange. It was incorporated and domiciled in Bermuda, but was redomiciled to Singapore on 1 October 2024, with its registered office located at 10 Pasir Panjang Road, #18- 01 Mapletree Business City, Singapore 117438.
The principal activity of the Company (together with its subsidiaries, the "Group") relates to the provision of global maritime services in the product tankers market.
This Interim Financial Information was authorised for issue by the Board of Directors of the Company on 27 February 2025.
Note 2: Basis of preparation
Statement of compliance
The Interim Financial Information has been prepared in accordance with IAS 34 'Interim Financial Reporting'. The Interim Financial Information should be read in conjunction with the annual audited financial statements for the financial year ended 31 December 2023, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The Interim Financial Information does not include all the information required for a complete set of financial statements prepared in accordance with IFRS standards. However selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
Note 3: Material accounting policies
Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in the Group's consolidated financial statements as at and for the year ended 31 December 2023.
Amendments to published standards, effective in 2024 and subsequent years
The Group has applied the following amendments to IFRS for the first time for the annual period beginning on 1 January 2024:
- Amendments to IAS 1 Presentation of Financial Statements:
- a. Non-current Liabilities with Covenants
- b. Classification of Liabilities as Current or Non-Current
- Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback
- Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures Supplier Finance Arrangements
The preparation of the Interim Financial Information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. In preparing this Interim Financial Information, the judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those that are applied to the consolidated financial statements for the year ended 31 December 2023.
Note 4: Revenue
| For the 3 months ended 31 December 2024 USD'000 |
For the 3 months ended 31 December 2023 USD'000 |
For the 12 months ended 31 December 2024 USD'000 |
For the 12 months ended 31 December 2023 USD'000 |
|
|---|---|---|---|---|
| Hafnia Vessels and TC Vessels | ||||
| Revenue from voyage charter1 | 313,917 | 436,455 | 1,803,091 | 1,781,036 |
| Revenue from time charter | 38,900 | 35,552 | 132,505 | 134,436 |
| 352,817 | 472,007 | 1,935,596 | 1,915,472 | |
| External Vessels in Disponent Owner Pools |
||||
| Revenue from voyage charter | 180,044 | 231,432 | 933,051 | 756,234 |
| Total revenue | 532,861 | 703,439 | 2,868,647 | 2,671,706 |
The Group's revenue is generated from the following main business segments: LR2 Product Tankers, LR1 Product Tankers, MR Product Tankers (inclusive of IMO II vessels) and Handy Product Tankers (inclusive of IMO II vessels).
Disaggregation of revenue by business segments is presented in Note 13.
Note 5: Property, plant and equipment
| Right-of-use | Dry docking and | ||||
|---|---|---|---|---|---|
| Assets – Vessels | Vessels | scrubbers | Others | Total | |
| USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | |
| At 31 December 2024 | |||||
| Cost | 222,993 | 3,510,379 | 156,844 | 1,578 | 3,891,794 |
| Accumulated depreciation and impairment charge | (204,332) | (989,156) | (89,899) | (845) | (1,284,232) |
| Net book value | 18,661 | 2,521,223 | 66,945 | 733 | 2,607,562 |
| Right-of-use | Dry docking and | ||||
| Assets – Vessels | Vessels | scrubbers | Others | Total | |
| USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | |
| At 31 December 2023 | |||||
| Cost | 199,582 | 3,573,265 | 143,375 | 1,495 | 3,917,717 |
Accumulated depreciation and impairment charge (165,021) (899,327) (75,216) (531) (1,140,095) Net book value 34,561 2,673,938 68,159 964 2,777,622
a. The Group organises the commercial management of its fleet of vessels into ten (2023: nine) individual commercial pools: LR1, Panamax, LR2, MR, Handy, Chemical-MR, Chemical-Handy and Small, Intermediate and City ("Specialized") (2023: LR1, LR2, MR, Handy, Chemical-MR, Chemical-Handy and Small, Intermediate and City ("Specialized")). Each individual commercial pool constitutes a separate cash-generating unit ("CGU"). For vessels outside commercial pools and deployed on a time-charter basis, each of these vessels constitutes a separate CGU. Any time-chartered in vessels which are recognised as right of use ("ROU") assets by the Group and subsequently deployed in the commercial pools are included as part of the pool CGUs.
The Group evaluates whether there are indications that any vessel as at the reporting date is impaired. If any such indicators of impairment exist, the Group performs impairment testing in accordance with its accounting policy. The estimation of the recoverable amount of vessels is based on the higher of fair value less costs to sell and value in use. The fair value of vessels is determined by professional brokers while the value in use is based on future discounted cash flows that the CGU is expected to generate over its remaining useful life.
Based on this assessment, the Group concluded that there are no indicators of impairment for the 12 months ended 31 December 2024 (12 months ended 31 December 2023: USD Nil).
- b. The Group has mortgaged vessels with a total carrying amount of USD 2,332.6 million as at 31 December 2024 (31 December 2023: USD 2,491.8 million) as security over the Group's borrowings.
- c. There were additions of USD 23.4 million to right-of-use assets vessels for the 12 months ended 31 December 2024 (12 months ended 31 December 2023: USD 11.9 million).
Note 5: Property, plant and equipment CONTINUED
d. As at 31 December 2024, the Group has time chartered-in six MRs and two LR1s with purchase options; and one LR1 without purchase options. These chartered-in vessels are recognised as right-of-use assets.
The Group has firm charters in place up till 2026 for these vessels. The current and next average purchase option price are as follows:
| USD'000 | Current average purchase option price1 | Next average purchase option price |
|---|---|---|
| LR1 | 41,333 | 40,833 |
| MR | 31,393 | 31,010 |
The time chartered-in days and average time charter rates for these vessels are as follows:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| TC in (Days)2 | |||
| LR1 (with purchase option) | 732 | 425 | – |
| LR1 (without purchase option) | 366 | 37 | – |
| MR (with purchase option) | 2,196 | 1,591 | 132 |
| Average TC in rate (USD/Day) | |||
| LR1 (with purchase option) | 19,100 | 19,100 | – |
| LR1 (without purchase option) | 17,250 | 17,500 | – |
| MR (with purchase option) | 16,104 | 16,357 | 16,500 |
1 The purchase option price decreases by a fixed amount per year, or on a pro-rata basis based on individual contract terms. Prior notice period of three to four months are required before exercise of options. The value of the purchase options amount to USD 89 million as at the end of the current reporting period.
2 Based on firm charter period and does not include optional periods exercisable by Hafnia.
Note 6: Shareholders' equity
a. Issued and fully paid share capital
As at 31 December 2024, the Company has 512,563,532 outstanding shares, of which 9,639,056 are treasury shares. All issued common shares are fully paid with no par value. The newly issued shares rank pari passu with the existing shares.
| Share capital | Share premium | Total | ||
|---|---|---|---|---|
| Numbers of shares | USD'000 | USD'000 | USD'000 | |
| At 1 January 2024 | 506,820,170 | 5,069 | 1,044,849 | 1,049,918 |
| Issuance of shares | 5,743,362 | 57 | 43,080 | 43,137 |
| Effect of re-domiciliation | – | 1,087,929 | (1,087,929) | – |
| At 31 December 2024 | 512,563,532 | 1,093,055 | – | 1,093,055 |
| At 1 January 2023 | 503,388,593 | 5,035 | 1,023,996 | 1,029,031 |
| Issuance of shares | 3,431,577 | 34 | 20,853 | 20,887 |
| At 31 December 2023 | 506,820,170 | 5,069 | 1,044,849 | 1,049,918 |
On 2 January 2024, the Company settled borrowed shares from BW Group by way of issuing 3,431,577 new ordinary shares. Following the issuance of the new ordinary shares, there were 510,251,747 issued shares in the Company, each with a nominal value of USD 0.01, all of which have been validly and legally issued and fully paid.
On 29 May 2024, the Company entered into another share lending agreement with BW Group whereby BW Group lent 2,311,785 shares of the Company. The borrowed shares would be redelivered by way of the Company issuing new shares to BW Group at a subscription price of USD 0.01 per share.
On 27 June 2024, the Company settled borrowed shares from BW Group by way of issuing 2,311,785 new ordinary shares. Following the issuance of the new ordinary shares, there are 512,563,532 issued shares in the Company, each with a nominal value of USD 0.01, all of which have been validly and legally issued and fully paid.
On 28 February 2023, the Company entered into a share lending agreement with BW Group Limited ("BW Group"), whereby BW Group lent 3,431,577 shares of the Company. The borrowed shares were redelivered by way of the Company issuing new shares to BW Group at a subscription price of USD 0.01 per share. Following this transaction, the Company had 3,431,577 newly issued shares and 3,431,577 treasury shares.
On 1 March 2023, the Company settled these borrowed shares by way of issuing 3,431,577 new ordinary shares to BW Group. Following the issuance of the new ordinary shares, there were 506,820,170 issued shares in the Company, each with a nominal value of USD 0.01, all of which have been validly and legally issued and fully paid.
On 20 December 2023, the Company entered into another share lending agreement with BW Group, whereby BW Group lent 3,431,577 shares of the Company. Following this transaction, the Company had 3,431,577 treasury shares. The borrowed shares would be redelivered by way of the Company issuing new shares to BW Group at a subscription price of USD 0.01 per share.
b. Other reserves
| (i) | As at 31 December 2024 USD'000 |
As at 31 December 2023 USD'000 |
|
|---|---|---|---|
| Composition: | |||
| Share-based payment reserve | 3,918 | 3,788 | |
| Hedging reserve | 20,705 | 39,312 | |
| Capital reserve | (54,730) | (25,137) | |
| Translation reserve | (198) | (63) | |
| Fair value reserve | 10,906 | 9,720 | |
| Total | (19,399) | 27,620 |
Note 6: Shareholders' equity CONTINUED
| (ii) | Movements of the reserves are as follows: | For the 12 months ended 31 December 2024 USD'000 |
For the 12 months ended 31 December 2023 USD'000 |
|---|---|---|---|
| Hedging reserve | |||
| At beginning of the financial period | 39,312 | 68,458 | |
| Fair value gains on cash flow hedges | 14,522 | 13,378 | |
| Reclassification to profit or loss | (33,129) | (42,524) | |
| At end of the financial period | 20,705 | 39,312 |
Note 7: Borrowings
| As at 31 December 2024 USD'000 |
As at 31 December 2023 USD'000 |
|
|---|---|---|
| Current | ||
| Bank borrowings | 252,556 | 174,004 |
| Sale and leaseback liabilities (accounted for as financing transaction) | 64,506 | 57,305 |
| Other lease liabilities | 19,233 | 36,019 |
| Total current borrowings | 336,295 | 267,328 |
| Non-current | ||
| Bank borrowings | 322,820 | 398,507 |
| Sale and leaseback liabilities (accounted for as financing transaction) | 461,924 | 622,174 |
| Other lease liabilities | 1,210 | 4,342 |
| Total non-current borrowings | 785,954 | 1,025,023 |
| Total borrowings | 1,122,249 | 1,292,351 |
As at 31 December 2024, bank borrowings consist of ten credit facilities from external financial institutions, namely USD 473 million, USD 374 million, USD 216 million, USD 84 million (DSF), USD 84 million, USD 39 million, USD 40 million, USD 303 million, and two borrowing base facilities (31 December 2023: USD 473 million, USD 374 million, USD 216 million, USD 106 million, USD 84 million, USD 39 million, USD 40 million, USD 303 million and two borrowing base facilities respectively). These facilities are secured by the Group's fleet of vessels. The table below summarises key information of the bank borrowings:
| Outstanding amount | ||
|---|---|---|
| USD m | Maturity date | |
| Facility amount | ||
| USD 473 million facility | 87.1 | |
| - USD 413 million term loan | 2026 | |
| - USD 60 million revolving credit facility | 2026 | |
| USD 374 million facility | – | |
| - USD 100 million revolving credit facility | 2028 | |
| USD 216 million facility | 131.3 | 2026 |
| USD 84 million facility (DSF) | 79.7 | 2029 |
| USD 84 million facility | 49.9 | |
| - USD 68 million term loan | 2026 | |
| - USD 16 million revolving credit facility | 2026 | |
| USD 39 million facility | 15.5 | |
| - USD 30 million term loan | 2025 | |
| - USD 9 million revolving credit facility | 2025 | |
| USD 40 million facility | 35.9 | 2029 |
| USD 303 million facility | 78.6 | |
| - USD 303 million revolving credit facility | 2029 | |
| Up to USD 175 million borrowing base facility | ||
| Up to USD 175 million borrowing base facility | 40.5 58.5 |
2025 |
| (with an accordion option of up to USD 75 million) |
Note 7: Borrowings CONTINUED
The table below summarises the repayment profile of the bank borrowings:
| For the financial year ended 31 December 2025 |
For the financial year ended 31 December 2026 |
|
|---|---|---|
| Repayment profile USD'000 | ||
| USD 473 million facility | 28,992 | 58,106 |
| USD 216 million facility | 12,600 | 118,650 |
| USD 84 million facility (DSF) | 8,633 | 8,633 |
| USD 84 million facility | 6,240 | 43,615 |
| USD 39 million facility | 15,464 | – |
| USD 40 million facility | 2,874 | 2,874 |
| USD 303 million facility | 80,000 | – |
| Up to USD 175 million borrowing base facility Up to USD 175 million borrowing base facility (with an accordion option of up to USD 75 million) |
40,500 58,500 |
– |
As at 31 December 2024, bank borrowings of joint ventures consist of eight credit facilities (31 December 2023: six credit facilities) from external financial institutions (excluded from LTV ratio under key figures). The table below summarises key information of the joint ventures' bank borrowings:
| Outstanding amount | ||
|---|---|---|
| USD m | Maturity date | |
| Facility amount | ||
| Vista Shipping joint venture | ||
| USD 51.8 million facility | 29.8 | 2031 |
| USD 111.0 million facility | 75.4 | 2032 |
| USD 89.6 million facility | 81.0 | 2033 |
| USD 88.5 million facility | 83.6 | 2031 |
| H&A Shipping joint venture | ||
| USD 22.1 million facility | 16.9 | 2026 |
| USD 23.5 million facility | 19.1 | 2028 |
| Ecomar joint venture | ||
| USD loan facility | 12.9 | 2033 |
| EUR NPV loan facility | – | 2033 |
| For the financial year ended 31 December 2025 |
For the financial year ended 31 December 2026 |
|
|---|---|---|
| Repayment profile USD'000 | ||
| Vista Shipping joint venture | ||
| USD 51.8 million facility | 3,453 | 3,453 |
| USD 111.0 million facility | 7,400 | 7,400 |
| USD 89.6 million facility | 5,271 | 5,271 |
| USD 88.5 million facility | 4,917 | 4,917 |
| H&A Shipping joint venture | ||
| USD 22.1 million facility | 1,473 | 15,838 |
| USD 23.5 million facility | 1,470 | 1,470 |
| Ecomar joint venture | ||
| USD loan facility | 1,171 | 4,339 |
| EUR NPV loan facility | – | 7,498 |
As at 31 December 2024, the sale and leaseback liabilities (accounted for as financing transaction) consist of various facilities provided by external leasing houses under sale-and-leaseback contracts. Under these contracts, the vessels were legally sold to external leasing houses and leased back by Hafnia. The maturity dates of the facilities range from 2029 to 2033.
Note 7: Borrowings CONTINUED
The carrying amounts relating to the 12 LR1 vessels was USD 324.8 million (31 December 2023: USD 354.2 million), 9 CTI vessels was USD 157.9 million (31 December 2023: USD 276.9 million), and other finance leases was USD 43.7 million (31 December 2023: USD 48.5 million).
Interest rates
The weighted average effective interest rates per annum of total borrowings, excluding the effect of interest rate swaps, at the balance sheet date are as follows:
| As at 31 December 2024 | As at 31 December 2023 | |
|---|---|---|
| Bank borrowings | 6.8% | 6.7% |
| Sale and leaseback liabilities (accounted for as financing transaction) | 6.9% | 7.4% |
Carrying amounts and fair values
The carrying values of the bank borrowings and sale and leaseback liabilities (accounted for as financing transaction) approximate their fair values as they are re-priceable at one-to-three-month intervals.
Note 8: Commitments
Operating lease commitments - where the Group is a lessor
The Group leases vessels to non-related parties under non-cancellable operating lease agreements. The Group classifies these leases as operating leases as the Group retains substantially all risks and rewards incidental to ownership of the leased assets
The undiscounted lease payments1 under operating leases to be received after the reporting date are analysed as follows:
| USD'000 | As at 31 December 2024 | As at 31 December 2023 |
|---|---|---|
| Less than one year | 110,715 | 87,459 |
| One to two years | 42,329 | 25,830 |
| Two to five years | 9,348 | 8,960 |
| 162,392 | 122,249 |
Newbuild Commitments
The Group has equity interests in joint ventures and is obliged to provide its share of working capital for the joint ventures' newbuild programme through either equity contributions or shareholder's loans.
The future minimum capital contributions to be made at the reporting date but not yet recognised are as follows:
| USD'000 | As at 31 December 2024 | As at 31 December 2023 |
|---|---|---|
| Less than one year | 52,917 | 28,394 |
| One to two years | 16,778 | 58,079 |
| Two to five years | – | 19,360 |
| 69,695 | 105,833 |
Note 9: Share-based payment arrangements
The Company operates equity-settled, share-based long term incentive plans ("LTIP") in which the entity receives services from employees as consideration for equity instruments (share options) in the Group; and grants restricted share units ("RSUs") to employees in which the entity receives services from employees as consideration for equity instruments (share units) in the group.
On 16 April 2024, the Company awarded a total of 2,032,414 share options to key management and senior employees under the LTIP 2024 share option program. These share options will vest on 16 April 2027 at an exercise price of NOK 89.68. The vesting condition of the granted options is 3 years' service from grant date.
Note 10: Financial information
| Carrying amount Fair value |
||||||||
|---|---|---|---|---|---|---|---|---|
| Fair value hedging instruments/ Mandatorily at FVTPL – others USD'000 |
Financial assets at amortised cost USD'000 |
FVOCI – equity instruments USD'000 |
Total USD'000 |
Level 1 USD'000 |
Level 2 USD'000 |
Level 3 USD'000 |
Total USD'000 |
|
| At 31 December 2024 | ||||||||
| Financial assets measured at fair value | ||||||||
| Forward freight agreements | 1,690 | – | – | 1,690 | – | 1,690 | – | 1,690 |
| Interest rate swaps used for hedging | 22,935 | – | – | 22,935 | – | 22,935 | – | 22,935 |
| Other investments | – | – | 23,069 | 23,069 | – | – | 23,069 | 23,069 |
| 24,625 | – | 23,069 | 47,694 | |||||
| At 31 December 2024 |
| Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|
| USD'000 | USD'000 | USD'000 | USD'000 |
| 1,690 | 1,690 | ||
|---|---|---|---|
| 22,935 | 22,935 | ||
| 23,069 | 23,069 | ||
| At 31 December 2024 | ||||
|---|---|---|---|---|
| Financial assets not measured at fair value | ||||
| Loans receivable from joint ventures | – | 64,133 | – | 64,133 |
| Trade and other receivables1 | – | 520,387 | – | 520,387 |
| Restricted cash | – | 13,542 | – | 13,542 |
| Cash at bank and on hand | – | 195,271 | – | 195,271 |
| Cash retained in the commercial pools | – | 88,297 | – | 88,297 |
| – | 881,630 | – | 881,630 |
| Carrying amount | Fair value | ||||
|---|---|---|---|---|---|
| Other financial liabilities USD'000 |
Total USD'000 |
Level 1 USD'000 |
Level 2 USD'000 |
Level 3 USD'000 |
Total USD'000 |
| Fair value hedging instruments USD'000 |
Other financial liabilities USD'000 |
Total USD'000 |
|
|---|---|---|---|
| At 31 December 2024 | |||
| Financial liabilities measured at fair value | |||
| Forward foreign exchange contracts | (1,048) | – | (1,048) |
| Forward freight agreements | (891) | – | (891) |
| (1,939) | – | (1,939) | |
| At 31 December 2024 | |||
| Financial liabilities not measured at fair value | |||
| Bank borrowings | – | (575,376) | (575,376) |
| Sale and leaseback liabilities (accounted for as financing transaction) and other lease liabilities |
– | (546,873) | (546,873) |
| Trade and other payables | – | (345,548) | (345,548) |
| – | (1,467,797) | (1,467,797) |
Note 10: Financial information CONTINUED
| Carrying amount | Fair value | |||||||
|---|---|---|---|---|---|---|---|---|
| Fair value hedging instruments/ Mandatorily at FVTPL – others USD'000 |
Financial assets at amortised cost USD'000 |
FVOCI – equity instruments USD'000 |
Total USD'000 |
Level 1 USD'000 |
Level 2 USD'000 |
Level 3 USD'000 |
Total USD'000 |
|
| At 31 December 2023 | ||||||||
| Financial assets measured at fair value | ||||||||
| Forward foreign exchange contracts | 449 | – | – | 449 | – | 449 | – | 449 |
| Forward freight agreements | 1,512 | – | – | 1,512 | – | 1,512 | – | 1,512 |
| Interest rate swaps used for hedging | 45,964 | – | – | 45,964 | – | 45,964 | – | 45,964 |
| Other investments | – | – | 23,953 | 23,953 | – | – | 23,953 | 23,953 |
| 47,925 | – | 23,953 | 71,878 | |||||
| At 31 December 2023 | ||||||||
| Financial assets not measured at fair value | ||||||||
| Loans receivable from joint ventures | – | 69,626 | – | 69,626 | ||||
| Trade and other receivables1 | – | 568,436 | – | 568,436 | ||||
| Restricted cash | – | 13,381 | – | 13,381 | ||||
| Cash at bank and on hand | – | 141,621 | – | 141,621 | ||||
| Cash retained in the commercial pools | – | 80,900 | – | 80,900 | ||||
| – | 873,964 | – | 873,964 | |||||
| Carrying amount | Fair value | |||||||
| Fair value hedging instruments USD'000 |
Other financial liabilities USD'000 |
Total USD'000 |
Level 1 USD'000 |
Level 2 USD'000 |
Level 3 USD'000 |
Total USD'000 |
||
| At 31 December 2023 | ||||||||
| Financial liabilities measured at fair value | ||||||||
| Forward freight agreements | (276) | – | (276) | – | (276) | – | (276) | |
| (276) | – | (276) | ||||||
| At 31 December 2023 | ||||||||
| Financial liabilities not measured at fair value | ||||||||
| Bank borrowings | – | (572,511) | (572,511) | |||||
| Sale and leaseback liabilities (accounted for as financing transaction) and other lease liabilities |
– | (719,840) | (719,840) | |||||
| Trade and other payables | – | (385,478) | (385,478) | |||||
| – | (1,677,829) | (1,677,829) |
The Group has no Level 1 financial assets or liabilities as at 31 December 2024 and 31 December 2023.
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. These financial instruments are included in Level 2, as all significant inputs required to fair value an instrument are observable. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.
Note 10: Financial information CONTINUED
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. The assessment of the fair value of investments in unquoted equity instruments is performed on a quarterly basis based on the latest available data that is reasonably available to the Group.
Level 3 fair values
The Group's investment in unquoted equity instruments measured at FVOCI using Level 3 fair value measurements were valued using market approach based on the Group's best estimate, which is determined by using information including but not limited to the pricing of recent rounds of financing of the investees and information generated from arm's-length market transactions involving identical or comparable assets or liabilities. The estimated fair value of the investments would either increase or decrease based on the latest available data that is reasonably available to the Group at each reporting date.
The following table shows a reconciliation from the opening balances to the closing balances of the Group's investment in unquoted equity instruments measured at FVOCI using Level 3 fair value measurements:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| USD'000 | USD'000 | |
| Opening balance | 23,953 | 3,825 |
| Acquisition of equity investments at FVOCI | 862 | 10,408 |
| Equity investments at FVOCI – net change in fair value | 1,186 | 9,720 |
| Disposal of other investments | (2,932) | – |
| Closing balance | 23,069 | 23,953 |
Note 11: Significant related party transactions
In addition to the related party information disclosed elsewhere in the Interim Financial Information, the following significant transactions took place between the Group and related parties during the financial period on commercial terms agreed by the parties:
| For the 3 months ended 31 December |
For the 3 months ended 31 December |
For the 12 months ended 31 December |
For the 12 months ended 31 December |
|
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| USD'000 | USD'000 | USD'000 | USD'000 | |
| Purchase of services | ||||
| Support service fees paid/payable to related corporations | 1,558 | 1,146 | 6,313 | 6,122 |
| Rental paid/payable to a related corporation | 225 | 217 | 893 | 872 |
| Rendering of services | ||||
| Management fees received/receivable from related corporations | – | – | 4 | – |
| Transactions with joint venture | ||||
| Management fees received/receivable from joint venture | 263 | 210 | 1,045 | 638 |
| Interest income receivable from joint venture | 429 | 923 | 2,445 | 4,936 |
Note 12: Joint ventures
| As at 31 December 2024 | As at 31 December 2023 | |
|---|---|---|
| USD'000 | USD'000 | |
| Interest in joint ventures | 81,371 | 60,172 |
a. Vista Shipping
- Vista Shipping Pte. Ltd. and its subsidiaries ("Vista Shipping") is a joint venture in which the Group has joint control and 50% ownership interest. Vista Shipping is domiciled in Singapore and structured as a separate vehicle in shipowning, with the Group having residual interest in its net assets. Accordingly, the Group has classified its interest in Vista Shipping as a joint venture.
- During the financial year ended 31 December 2024, Hafnia took delivery of one LR2 vessel through its Vista Shipping joint venture.
- The following table summarises the financial information of Vista Shipping as included in its own consolidated financial statements. The table also reconciles the summarised financial information to the carrying amount of the Group's interest in Vista Shipping.
| As at 31 December 2024 USD'000 |
As at 31 December 2023 USD'000 |
|
|---|---|---|
| Percentage ownership interest | 50% | 50% |
| Non-current assets | 427,959 | 397,965 |
| Current assets | 63,657 | 54,092 |
| Non-current liabilities | (317,722) | (336,598) |
| Current liabilities | (45,350) | (28,564) |
| Net assets (100%) | 128,544 | 86,895 |
| Group's share of net assets (50%) | 64,272 | 43,448 |
| Revenue | 112,907 | 91,191 |
| Other income | 2,623 | 1,963 |
| Expenses | (73,951) | (56,914) |
| Profit and total comprehensive income (100%) | 41,579 | 36,240 |
| Profit and total comprehensive income (50%) | 20,790 | 18,120 |
| Prior year share of profit/(loss) not recognised | 35 | (170) |
| Group's share of total comprehensive income (50%) | 20,825 | 17,950 |
b. H&A Shipping
• In July 2021, the Group and Andromeda Shipholdings Ltd ("Andromeda Shipholdings") entered into a joint venture, H&A Shipping Pte. Ltd. ("H&A Shipping") in which the Group has joint control and 50% ownership interest. H&A Shipping is domiciled in Singapore and structured as a separate vehicle in shipowning, with the Group having residual interest in its net assets. Accordingly, the Group has classified its interest in H&A Shipping Pte. Ltd. as a joint venture.
Note 12: Joint ventures CONTINUED
• The following table summarises the financial information of H&A Shipping as included in its own consolidated financial statements. The table also reconciles the summarised financial information to the carrying amount of the Group's interest in H&A Shipping.
| As at 31 December 2024 USD'000 |
As at 31 December 2023 USD'000 |
|
|---|---|---|
| Percentage ownership interest | 50% | 50% |
| Non-current assets | 59,892 | 62,990 |
| Current assets | 5,388 | 5,308 |
| Non-current liabilities | (46,093) | (52,038) |
| Current liabilities | (4,940) | (4,548) |
| Net assets (100%) | 14,247 | 11,712 |
| Group's share of net assets (50%) | 7,124 | 5,856 |
| Shareholder's loans | 6,308 | 7,668 |
| Alignment of accounting policies | 1,153 | 1,006 |
| Carrying amount of interest in joint venture | 14,585 | 14,530 |
| Revenue | 11,459 | 11,438 |
| Other income | 1,866 | 1,458 |
| Expenses | (10,791) | (10,857) |
| Profit and total comprehensive income (100%) | 2,534 | 2,039 |
| Profit and total comprehensive income (50%) | 1,267 | 1,019 |
| Alignment of accounting policies | 147 | 147 |
| Group's share of total comprehensive income (50%) | 1,414 | 1,166 |
c. Ecomar
- In June 2023, the Group and SOCATRA entered into a joint venture, Ecomar Shipholding S.A.S ("Ecomar"), in which the Group has joint control and 50% ownership interest. Ecomar is incorporated in France and structured as a separate vehicle in shipowning, with the Group having residual interest in its net assets. Accordingly, the Group has classified its interest in Ecomar as a joint venture. In accordance with the agreement under which Ecomar was established, the Group and the other investor in the joint venture have agreed to provide shareholders' loans in proportion to their interests to finance the newbuild programme.
- The following table summarises the financial information of Ecomar as included in its own consolidated financial statements. The table also reconciles the summarised financial information to the carrying amount of the Group's interest in Ecomar.
| As at 31 December 2024 | As at 31 December 2023 | |
|---|---|---|
| Percentage ownership interest | USD'000 50% |
USD'000 50% |
| Non-current assets | 68,964 | 31,873 |
| Current assets | 4,928 | – |
| Non-current liabilities | – | (31,849) |
| Current liabilities | (77,032) | – |
| Net (liabilities)/assets (100%) | (3,140) | 24 |
| Group's share of net (liabilities)/assets (50%) | (1,570) | 12 |
| Unrecognised share of losses | 1,633 | – |
| Translation reserve | (63) | – |
| Carrying amount of interest in joint venture | – | 12 |
Note 12: Joint ventures CONTINUED
| As at 31 December 2024 USD'000 |
As at 31 December 2023 USD'000 |
|
|---|---|---|
| Revenue | – | – |
| Other income | 32 | 1 |
| Expenses | (3,321) | (87) |
| Loss and total comprehensive loss (100%) | (3,289) | (86) |
| Loss and total comprehensive loss (50%) | (1,645) | (43) |
| Unrecognised share of losses | 1,633 | – |
| Group's share of total comprehensive loss (50%) | (12) | (43) |
d. Complexio
- In March 2023, the Group and Simbolo Holdings Limited entered into a share purchase agreement where the Group purchased 50% of Class A shares (with voting rights) in Quintessential AI Limited ("Q-AI"). As a result of the transaction, the Group has joint control (with Simbolo Holdings having the remainder of Class A shares) of Q-AI; with a 30.5% ownership interest. Q-AI is incorporated in London and operates in the software development industry. Accordingly, the Group has classified its interest in Q-AI as a joint venture.
- The Company was renamed to Complexio Limited ("Complexio") on 1 May 2024.
- The following table summarises the financial information of Complexio as included in its own consolidated financial statements. The table also reconciles the summarised financial information to the carrying amount of the Group's interest in Complexio.
| As at 31 December 2024 USD'000 |
|
|---|---|
| Percentage ownership interest | 30.5% |
| Non-current assets | 4,262 |
| Current assets | 4,635 |
| Non-current liabilities | - |
| Current liabilities | (653) |
| Net assets (100%) | 8,244 |
| Group's share of net assets (30.5%) | 2,514 |
| Revenue | 647 |
| Other income | 85 |
| Expenses | (8,288) |
| Loss and total comprehensive loss (100%) | (7,556) |
| Loss and total comprehensive loss (30.5%) | (2,304) |
| Gain on dilution | 592 |
| Group's share of total comprehensive loss (30.5%) | (1,712) |
Note 13: Segment information
| For the 3 months ended 31 December 2024 | LR21 USD'000 |
LR12 USD'000 |
MR3 USD'000 |
Handy4 USD'000 |
Total USD'000 |
|---|---|---|---|---|---|
| Revenue (Hafnia Vessels and TC Vessels) | 22,983 | 75,023 | 176,933 | 77,870 | 352,809 |
| Revenue (External Vessels in Disponent-Owner Pools) | 10,931 | 53,186 | 100,067 | 15,860 | 180,044 |
| Voyage expenses (Hafnia Vessels and TC Vessels) | (9,181) | (24,277) | (58,687) | (27,098) | (119,243) |
| Voyage expenses (External Vessels in Disponent-Owner Pools) | (4,654) | (28,316) | (45,279) | (5,746) | (83,995) |
| Pool distributions for External Vessels in Disponent-Owner Pools | (6,277) | (24,870) | (54,788) | (10,114) | (96,049) |
| TCE Income5 | 13,802 | 50,746 | 118,246 | 50,772 | 233,566 |
| Other operating income | 709 | 1,202 | 2,060 | 228 | 4,199 |
| Vessel operating expenses | (3,708) | (14,862) | (33,591) | (16,964) | (69,125) |
| Technical management expenses | (553) | (1,963) | (3,733) | (1,296) | (7,545) |
| Charter hire expenses | – | (2,204) | (9,641) | – | (11,845) |
| Adjusted EBITDA5 | 10,250 | 32,919 | 73,341 | 32,740 | 149,250 |
| Depreciation charge | (3,306) | (14,499) | (26,089) | (8,427) | (52,321) |
| 96,929 | |||||
| Unallocated6 | (17,358) | ||||
| Profit before income tax | 79,571 |
| For the 12 months ended 31 December 2024 | LR21 USD'000 |
LR12 USD'000 |
MR3 USD'000 |
Handy4 USD'000 |
Total USD'000 |
|---|---|---|---|---|---|
| Revenue (Hafnia Vessels and TC Vessels) | 125,387 | 522,837 | 915,186 | 372,130 | 1,935,540 |
| Revenue (External Vessels in Disponent-Owner Pools) | 86,168 | 318,499 | 438,245 | 90,139 | 933,051 |
| Voyage expenses (Hafnia Vessels and TC Vessels) | (31,693) | (142,405) | (251,887) | (118,328) | (544,313) |
| Voyage expenses (External Vessels in Disponent-Owner Pools) | (34,080) | (112,980) | (156,931) | (28,811) | (332,802) |
| Pool distributions for External Vessels in Disponent-Owner Pools | (52,088) | (205,519) | (281,314) | (61,328) | (600,249) |
| TCE Income5 | 93,694 | 380,432 | 663,299 | 253,802 | 1,391,227 |
| Other operating income | 2,374 | 6,824 | 11,001 | 3,533 | 23,732 |
| Vessel operating expenses | (15,624) | (64,451) | (132,876) | (65,089) | (278,040) |
| Technical management expenses | (1,947) | (7,358) | (13,619) | (5,249) | (28,173) |
| Charter hire expenses | – | (8,974) | (39,522) | – | (48,496) |
| Adjusted EBITDA5 | 78,497 | 306,473 | 488,283 | 186,997 | 1,060,250 |
| Depreciation charge | (13,837) | (58,881) | (107,936) | (33,339) | (213,993) |
| 846,257 | |||||
| Unallocated6 | (67,804) | ||||
| Profit before income tax | 778,453 |
1 Vessels between 85,000 DWT and 124,999 DWT in size and provides transportation of clean petroleum oil products.
2 Vessels between 55,000 DWT and 84,999 DWT in size and provides transportation of clean and dirty petroleum products.
3 Vessels between 40,000 DWT and 54,999 DWT in size and provides transportation of clean and dirty oil products, vegetable oil and easy chemicals; inclusive of IMO II vessels
4 Vessels between 25,000 DWT and 39,999 DWT in size and provides transportation of clean and dirty oil products, vegetable oil and easy chemicals; inclusive of IMO II vessels
5 See Non-IFRS Measures in Note 16.
6 Including prior period adjustments for vessels that are not a part of the Group's operating segments in the financial year ended 2024.
Note 13: Segment information CONTINUED
| For the 3 months ended 31 December 2023 | LR21 USD'000 |
LR12 USD'000 |
MR3 USD'000 |
Handy4 USD'000 |
Chemical – Stainless USD'000 |
Specialized USD'000 |
Total USD'000 |
|---|---|---|---|---|---|---|---|
| Revenue (Hafnia Vessels and TC Vessels) | 32,304 | 122,353 | 229,702 | 87,629 | 17 | 2 | 472,007 |
| Revenue (External Vessels in Disponent-Owner Pools) | 18,717 | 79,116 | 98,276 | 35,323 | – | – | 231,432 |
| Voyage expenses (Hafnia Vessels and TC Vessels) | (10,916) | (38,271) | (61,572) | (31,441) | – | – | (142,200) |
| Voyage expenses (External Vessels in Disponent-Owner Pools) |
(5,527) | (27,031) | (37,494) | (10,430) | – | – | (80,482) |
| Pool distributions for External Vessels in Disponent Owner Pools |
(13,190) | (52,085) | (60,782) | (24,893) | – | – | (150,950) |
| TCE Income5 | 21,388 | 84,082 | 168,130 | 56,188 | 17 | 2 | 329,807 |
| Other operating income | 486 | 1,692 | 2,274 | 1,576 | – | 927 | 6,955 |
| Vessel operating expenses | (3,397) | (15,581) | (33,750) | (14,879) | (97) | – | (67,704) |
| Technical management expenses | (459) | (1,900) | (3,175) | (1,303) | – | – | (6,837) |
| Charter hire expenses | – | (2,040) | (7,331) | – | (5) | 5 | (9,371) |
| Adjusted EBITDA5 | 18,018 | 66,253 | 126,148 | 41,582 | (85) | 934 | 252,850 |
| Depreciation charge | (3,464) | (14,620) | (27,183) | (8,036) | – | – | (53,303) |
| 199,547 | |||||||
| Unallocated | (21,229) | ||||||
| Profit before income tax | 178,318 |
| LR21 | LR12 | MR3 | Handy4 | Chemical – Stainless |
Specialized | Total | |
|---|---|---|---|---|---|---|---|
| For the 12 months ended 31 December 2023 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 |
| Revenue (Hafnia Vessels and TC Vessels) | 111,164 | 536,309 | 901,038 | 364,814 | (226) | 2,373 | 1,915,472 |
| Revenue (External Vessels in Disponent-Owner Pools) | 55,221 | 288,512 | 283,857 | 128,644 | – | – | 756,234 |
| Voyage expenses (Hafnia Vessels and TC Vessels) | (30,339) | (151,725) | (246,919) | (118,772) | (36) | (1,074) | (548,865) |
| Voyage expenses (External Vessels in Disponent Owner Pools) |
(19,416) | (108,241) | (106,141) | (45,951) | – | – | (279,749) |
| Pool distributions for External Vessels in Disponent Owner Pools |
(35,805) | (180,271) | (177,716) | (82,693) | – | – | (476,485) |
| TCE Income5 | 80,825 | 384,584 | 654,119 | 246,042 | (262) | 1,299 | 1,366,607 |
| Other operating income | 1,781 | 8,865 | 9,258 | 7,188 | (705) | 3,747 | 30,134 |
| Vessel operating expenses | (15,267) | (66,884) | (125,393) | (61,211) | (109) | (5) | (268,869) |
| Technical management expenses | (1,656) | (7,109) | (11,711) | (5,216) | – | – | (25,692) |
| Charter hire expenses | – | (9,234) | (24,034) | (1) | – | (1,302) | (34,571) |
| Adjusted EBITDA5 | 65,684 | 310,221 | 502,239 | 186,802 | (1,076) | 3,739 | 1,067,609 |
| Depreciation charge | (13,743) | (58,099) | (104,808) | (32,784) | – | – | (209,434) |
| 858,175 | |||||||
| Unallocated | (58,649) | ||||||
| Profit before income tax | 799,526 |
2 Vessels between 55,000 DWT and 84,999 DWT in size and provides transportation of clean and dirty petroleum products.
3 Vessels between 40,000 DWT and 54,999 DWT in size and provides transportation of clean and dirty oil products, vegetable oil and easy chemicals; inclusive of IMO II vessels
4 Vessels between 25,000 DWT and 39,999 DWT in size and provides transportation of clean and dirty oil products, vegetable oil and easy chemicals; inclusive of IMO II vessels
1 Vessels between 85,000 DWT and 124,999 DWT in size and provides transportation of clean petroleum oil products.
Note 14: Subsequent events
On 13 January 2025, the Group exercised the purchase option on an IMO - II MR vessel, Hafnia Tanzanite under the sale and lease-back arrangement with Fortune Chem6 Shipping Limited. This transaction was accounted for as an extinguishment of an existing sale and leaseback-liability (accounted for as financing transaction).
On 14 January 2025, the Group exercised the purchase option on an IMO - II MR vessel, Hafnia Tourmaline under the sale and lease-back arrangement with Fortune Chem5 Shipping Limited. This transaction was accounted for as an extinguishment of an existing sale and leaseback-liability (accounted for as financing transaction).
On 14 January 2025, the Group took delivery of an IMO II - MR vessel, Ecomar Gascogne, through its ECOMAR joint venture.
On 22 January 2025, the Group's equity investment, Diginex, was listed on the NASDAQ. The Group has a 1.15% stake in Diginex; but is subject to a lock-up period of 12 months.
On 24 January 2024, the Group finalized the repurchase of shares under the share buyback program announced on 2 December 2024.
On 19 February 2025, the Group and Cargill entered into a joint arrangement, Seascale Energy.
Note 15: Fleet list
| Vessel | DWT | Year Built | Type | Vessel | DWT | Year Built | Type |
|---|---|---|---|---|---|---|---|
| Hafnia Bering | 39,067 | Apr-15 | Handy | Hafnia Galatea | 115,000 | Mar-19 | LR2 |
| Hafnia Magellan | 39,067 | May-15 | Handy | Hafnia Larissa | 115,000 | Apr-19 | LR2 |
| Hafnia Malacca | 39,067 | Jul-15 | Handy | Hafnia Neso | 115,000 | Jul-19 | LR2 |
| Hafnia Soya | 38,700 | Nov-15 | Handy | Hafnia Thalassa | 115,000 | Sep-19 | LR2 |
| Hafnia Sunda | 39,067 | Sep-15 | Handy | Hafnia Triton | 115,000 | Oct-19 | LR2 |
| Hafnia Torres | 39,067 | May-16 | Handy | Hafnia Languedoc1 | 115,000 | Mar-23 | LR2 |
| Hafnia Kallang | 74,000 | Jan-17 | LR1 | Hafnia Larvik1 | 109,999 | Oct-23 | LR2 |
| Hafnia Nile | 74,000 | Aug-17 | LR1 | Hafnia Loire1 | 115,000 | May-23 | LR2 |
| Hafnia Seine | 76,580 | May-08 | LR1 | Hafnia Lillesand1 | 109,999 | Feb-24 | LR2 |
| Hafnia Shinano | 74,998 | Oct-08 | LR1 | Beagle2 | 44,995 | Mar-19 | MR |
| Hafnia Tagus | 74,000 | Mar-17 | LR1 | Boxer2 | 49,852 | Jun-19 | MR |
| Hafnia Yangtze | 74,996 | Jan-09 | LR1 | Basset2 | 49,875 | Nov-19 | MR |
| Hafnia Yarra | 74,000 | Jul-17 | LR1 | Bulldog2 | 49,856 | Feb-20 | MR |
| Hafnia Zambesi | 74,982 | Jan-10 | LR1 | Hafnia Bobcat | 49,999 | Aug-14 | MR |
| Hafnia Africa | 74,539 | May-10 | LR1 | Hafnia Cheetah | 49,999 | Feb-14 | MR |
| Hafnia Asia | 74,539 | Jun-10 | LR1 | Hafnia Cougar | 49,999 | Jan-14 | MR |
| Hafnia Australia | 74,539 | May-10 | LR1 | Hafnia Eagle | 49,999 | Jul-15 | MR |
| Hafnia Hong Kong1 | 75,000 | Jan-19 | LR1 | Hafnia Egret | 49,999 | Nov-14 | MR |
| 1 Hafnia Shanghai |
75,000 | Jan-19 | LR1 | BW Falcon | 49,999 | Feb-15 | MR |
| Hafnia Guangzhou1 | 75,000 | Jul-19 | LR1 | Hafnia Hawk | 49,999 | Jun-15 | MR |
| Hafnia Beijing1 | 75,000 | Oct-19 | LR1 | Hafnia Jaguar | 49,999 | Mar-14 | MR |
| Sunda 2 |
79,902 | Jul-19 | LR1 | BW Kestrel | 49,999 | Aug-15 | MR |
| Karimata2 | 79,885 | Aug-19 | LR1 | Hafnia Leopard | 49,999 | Jan-14 | MR |
| Hafnia Shenzhen1 | 75,000 | Aug-20 | LR1 | Hafnia Lioness | 49,999 | Jan-14 | MR |
| Hafnia Nanjing1 | 74,999 | Jan-21 | LR1 | Hafnia Lynx | 49,999 | Nov-13 | MR |
| Peace Victoria2 | 77,378 | Oct-19 | LR1 | BW Merlin | 49,999 | Sep-15 | MR |
| Hafnia Excelsior | 74,665 | Jan-16 | LR1 | Hafnia Myna | 49,999 | Oct-15 | MR |
| Hafnia Executive | 74,431 | May-16 | LR1 | Hafnia Osprey | 49,999 | Oct-15 | MR |
| Hafnia Prestige | 74,997 | Nov-16 | LR1 | Hafnia Panther | 49,999 | Jun-14 | MR |
| Hafnia Providence | 74,997 | Aug-16 | LR1 | Hafnia Petrel | 49,999 | Jan-16 | MR |
| Hafnia Pride | 74,997 | Jul-16 | LR1 | Hafnia Puma | 49,999 | Nov-13 | MR |
| Hafnia Excellence | 74,613 | May-16 | LR1 | Hafnia Raven | 49,999 | Nov-15 | MR |
| Hafnia Exceed | 74,665 | Feb-16 | LR1 | Hafnia Swift | 49,999 | Jan-16 | MR |
| Hafnia Expedite | 74,634 | Jan-16 | LR1 | Hafnia Tiger | 49,999 | Mar-14 | MR |
| Hafnia Express | 74,663 | May-16 | LR1 | BW Wren | 49,999 | Mar-16 | MR |
| Hafnia Excel | 74,547 | Nov-15 | LR1 | Hafnia Andromeda | 49,999 | May-11 | MR |
| Hafnia Precision | 74,997 | Oct-16 | LR1 | Hafnia Ane | 49,999 | Nov-15 | MR |
| Hafnia Experience | 74,670 | Mar-16 | LR1 | Hafnia Crux | 52,550 | Feb-12 | MR |
| Hafnia Pioneer | 81,350 | Jun-13 | LR1 | Hafnia Daisy | 49,999 | Aug-16 | MR |
| Hafnia Despina | 115,000 | Jan-19 | LR2 | Hafnia Henriette | 49,999 | Jun-16 | MR |
| Vessel | DWT | Year Built | Type | Vessel | DWT | Year Built |
|---|---|---|---|---|---|---|
| Hafnia Bering | 39,067 | Apr-15 | Handy | Hafnia Galatea | 115,000 | Mar-19 |
| Hafnia Magellan | 39,067 | May-15 | Handy | Hafnia Larissa | 115,000 | Apr-19 |
| Hafnia Malacca | 39,067 | Jul-15 | Handy | Hafnia Neso | 115,000 | Jul-19 |
| Hafnia Soya | 38,700 | Nov-15 | Handy | Hafnia Thalassa | 115,000 | Sep-19 |
| Hafnia Sunda | 39,067 | Sep-15 | Handy | Hafnia Triton | 115,000 | Oct-19 |
| Hafnia Torres | 39,067 | May-16 | Handy | Hafnia Languedoc1 | 115,000 | Mar-23 |
| Hafnia Kallang | 74,000 | Jan-17 | LR1 | Hafnia Larvik1 | 109,999 | Oct-23 |
| Hafnia Nile | 74,000 | Aug-17 | LR1 | Hafnia Loire1 | 115,000 | May-23 |
| Hafnia Seine | 76,580 | May-08 | LR1 | Hafnia Lillesand1 | 109,999 | Feb-24 |
| Hafnia Shinano | 74,998 | Oct-08 | LR1 | Beagle2 | 44,995 | Mar-19 |
| Hafnia Tagus | 74,000 | Mar-17 | LR1 | Boxer2 | 49,852 | Jun-19 |
| Hafnia Yangtze | 74,996 | Jan-09 | LR1 | Basset2 | 49,875 | Nov-19 |
| Hafnia Yarra | 74,000 | Jul-17 | LR1 | Bulldog2 | 49,856 | Feb-20 |
| Hafnia Zambesi | 74,982 | Jan-10 | LR1 | Hafnia Bobcat | 49,999 | Aug-14 |
| Hafnia Africa | 74,539 | May-10 | LR1 | Hafnia Cheetah | 49,999 | Feb-14 |
| Hafnia Asia | 74,539 | Jun-10 | LR1 | Hafnia Cougar | 49,999 | Jan-14 |
| Hafnia Australia | 74,539 | May-10 | LR1 | Hafnia Eagle | 49,999 | Jul-15 |
| Hafnia Hong Kong1 | 75,000 | Jan-19 | LR1 | Hafnia Egret | 49,999 | Nov-14 |
| 1 | 75,000 | Jan-19 | LR1 | BW Falcon | 49,999 | Feb-15 |
| Hafnia Guangzhou1 | 75,000 | Jul-19 | LR1 | Hafnia Hawk | 49,999 | Jun-15 |
| Hafnia Beijing1 | 75,000 | Oct-19 | LR1 | Hafnia Jaguar | 49,999 | Mar-14 |
| 2 | 79,902 | Jul-19 | LR1 | BW Kestrel | 49,999 | Aug-15 |
| Karimata2 | 79,885 | Aug-19 | LR1 | Hafnia Leopard | 49,999 | Jan-14 |
| Hafnia Shenzhen1 | 75,000 | Aug-20 | LR1 | Hafnia Lioness | 49,999 | Jan-14 |
| Hafnia Nanjing1 | 74,999 | Jan-21 | LR1 | Hafnia Lynx | 49,999 | Nov-13 |
| Peace Victoria2 | 77,378 | Oct-19 | LR1 | BW Merlin | 49,999 | Sep-15 |
| Hafnia Excelsior | 74,665 | Jan-16 | LR1 | Hafnia Myna | 49,999 | Oct-15 |
| Hafnia Executive | 74,431 | May-16 | LR1 | Hafnia Osprey | 49,999 | Oct-15 |
| Hafnia Prestige | 74,997 | Nov-16 | LR1 | Hafnia Panther | 49,999 | Jun-14 |
| Hafnia Providence | 74,997 | Aug-16 | LR1 | Hafnia Petrel | 49,999 | Jan-16 |
| Hafnia Pride | 74,997 | Jul-16 | LR1 | Hafnia Puma | 49,999 | Nov-13 |
| Hafnia Excellence | 74,613 | May-16 | LR1 | Hafnia Raven | 49,999 | Nov-15 |
| Hafnia Exceed | 74,665 | Feb-16 | LR1 | Hafnia Swift | 49,999 | Jan-16 |
| Hafnia Expedite | 74,634 | Jan-16 | LR1 | Hafnia Tiger | 49,999 | Mar-14 |
| Hafnia Express | 74,663 | May-16 | LR1 | BW Wren | 49,999 | Mar-16 |
| Hafnia Excel | 74,547 | Nov-15 | LR1 | Hafnia Andromeda | 49,999 | May-11 |
| Hafnia Precision | 74,997 | Oct-16 | LR1 | Hafnia Ane | 49,999 | Nov-15 |
| Hafnia Experience | 74,670 | Mar-16 | LR1 | Hafnia Crux | 52,550 | Feb-12 |
| Hafnia Pioneer | 81,350 | Jun-13 | LR1 | Hafnia Daisy | 49,999 | Aug-16 |
| Hafnia Despina | 115,000 | Jan-19 | LR2 | Hafnia Henriette | 49,999 | Jun-16 |
1 50% owned through the Vista Shipping Joint Venture
2 Time chartered in vessel
Note 15: Fleet list CONTINUED
| Vessel | DWT | Year Built | Type |
|---|---|---|---|
| Hafnia Kirsten | 49,999 | Jan-17 | MR |
| Hafnia Lene | 49,999 | Jul-15 | MR |
| Hafnia Leo | 52,340 | Nov-13 | MR |
| Hafnia Libra | 52,384 | May-13 | MR |
| Hafnia Lise | 49,999 | Sep-16 | MR |
| Hafnia Lotte | 49,999 | Jan-17 | MR |
| Hafnia Lupus | 52,550 | Apr-12 | MR |
| Hafnia Mikala | 49,999 | May-17 | MR |
| Hafnia Nordica | 49,994 | Mar-10 | MR |
| Hafnia Phoenix | 52,340 | Jul-13 | MR |
| Hafnia Taurus | 50,385 | Jun-11 | MR |
| Hafnia Andrea | 49,999 | Jun-15 | MR |
| Hafnia Caterina | 49,999 | Aug-15 | MR |
| Orient Challenge1 | 49,972 | Jun-17 | MR |
| Orient Innovation1 | 49,972 | Jul-17 | MR |
| Yellow Stars2 | 49,999 | Jul-21 | MR |
| PS Stars2 | 49,999 | Jan-22 | MR |
| Hafnia Almandine | 38,506 | Feb-15 | IMO II – Handy |
| Hafnia Amber | 38,506 | Feb-15 | IMO II – Handy |
| Hafnia Amethyst | 38,506 | Mar-15 | IMO II – Handy |
| Hafnia Ametrine | 38,506 | Apr-15 | IMO II – Handy |
| Hafnia Aventurine | 38,506 | Apr-15 | IMO II – Handy |
| Hafnia Andesine | 38,506 | May-15 | IMO II – Handy |
| Hafnia Aronaldo | 38,506 | Jun-15 | IMO II – Handy |
| Hafnia Aquamarine | 38,506 | Jun-15 | IMO II – Handy |
| Hafnia Axinite | 38,506 | Jul-15 | IMO II – Handy |
| Hafnia Amessi | 38,506 | Jul-15 | IMO II – Handy |
| Hafnia Azotic | 38,506 | Sep-15 | IMO II – Handy |
| Hafnia Amazonite | 38,506 | May-15 | IMO II – Handy |
| Hafnia Ammolite | 38,506 | Aug-15 | IMO II – Handy |
| Hafnia Adamite | 38,506 | Sep-15 | IMO II – Handy |
| Hafnia Aragonite | 38,506 | Oct-15 | IMO II – Handy |
| Hafnia Azurite | 38,506 | Aug-15 | IMO II – Handy |
| Hafnia Alabaster | 38,506 | Nov-15 | IMO II – Handy |
| Hafnia Achroite | 38,506 | Jan-16 | IMO II – Handy |
| Hafnia Turquoise | 49,000 | Apr-16 | IMO II – MR |
| Hafnia Topaz | 49,000 | Jul-16 | IMO II – MR |
| Hafnia Tourmaline | 49,000 | Oct-16 | IMO II – MR |
| Hafnia Tanzanite | 49,000 | Nov-16 | IMO II – MR |
| Hafnia Viridian | 49,000 | Dec-15 | IMO II – MR |
| Hafnia Violette | 49,000 | Mar-16 | IMO II – MR |
| Hafnia Atlantic | 49,614 | Dec-17 | IMO II – MR |
| Hafnia Pacific | 49,868 | Dec-17 | IMO II – MR |
| Hafnia Valentino | 49,126 | May-15 | IMO II – MR |
2 50% owned through the H&A Shipping Joint Venture
Note 16: Non-IFRS measures
Throughout this Interim Financial Information Q4 and Full Year 2024, 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 December 2024 and 31 December 2023.
| For the 3 months ended 31 December 2024 USD'000 |
For the 3 months ended 31 December 2023 USD'000 |
For the 12 months ended 31 December 2024 USD'000 |
For the 12 months ended 31 December 2023 USD'000 |
|
|---|---|---|---|---|
| Profit for the financial period | 79,632 | 176,435 | 774,035 | 793,275 |
| Income tax (benefit)/expense | (61) | 1,883 | 4,418 | 6,251 |
| Depreciation charge of property, plant and equipment | 52,404 | 53,386 | 214,308 | 209,727 |
| Amortisation charge of intangible assets | 108 | 324 | 803 | 1,300 |
| (Gain)/loss on disposal of assets | (12,999) | 295 | (28,520) | (56,087) |
| Share of profit of equity-accounted investees, net of tax | (601) | (4,875) | (20,515) | (19,073) |
| Interest income | (4,578) | (3,143) | (16,317) | (17,629) |
| Interest expense | 13,645 | 3,600 | 52,375 | 77,385 |
| Capitalised financing fees written off | – | 5,894 | 2,069 | 5,894 |
| Other finance expense | 3,619 | 733 | 9,662 | 11,845 |
| Adjusted EBITDA | 131,169 | 234,532 | 992,318 | 1,012,888 |
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).
Note 16: Non-IFRS measures CONTINUED
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.
| (in USD'000 except operating days and TCE income per operating day) | For the 3 months ended 31 December 2024 |
For the 3 months ended 31 December 2023 |
For the 12 months ended 31 December 2024 |
For the 12 months ended 31 December 2023 |
|---|---|---|---|---|
| Revenue (Hafnia Vessels and TC Vessels) | 352,817 | 472,007 | 1,935,596 | 1,915,472 |
| Revenue (External Vessels in Disponent-Owner Pools) | 180,044 | 231,432 | 933,051 | 756,234 |
| Less: Voyage expenses (Hafnia Vessels and TC Vessels) | (119,257) | (142,200) | (544,317) | (548,865) |
| Less: Voyage expenses (External Vessels in Disponent-Owner Pools) | (83,995) | (80,482) | (332,802) | (279,749) |
| Less: Pool distributions for External Vessels in Disponent-Owner Pools | (96,049) | (150,950) | (600,249) | (476,485) |
| TCE income | 233,560 | 329,807 | 1,391,279 | 1,366,607 |
| Operating days | 10,293 | 10,732 | 42,160 | 42,276 |
| TCE income per operating day | 22,692 | 30,731 | 33,000 | 32,326 |
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:
| (in USD'000 except operating days and TCE income per operating day) | For the 3 months ended 31 December 2024 |
For the 3 months ended 31 December 2023 |
For the 12 months ended 31 December 2024 |
For the 12 months ended 31 December 2023 |
|---|---|---|---|---|
| Revenue (Hafnia Vessels and TC Vessels) | 352,817 | 472,007 | 1,935,596 | 1,915,472 |
| Less: Voyage expenses (Hafnia Vessels and TC Vessels) | (119,257) | (142,200) | (544,317) | (548,865) |
| TCE income | 233,560 | 329,807 | 1,391,279 | 1,366,607 |
| Operating days | 10,293 | 10,732 | 42,160 | 42,276 |
| TCE income per operating day | 22,692 | 30,731 | 33,000 | 32,326 |
'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.
1 Operating days are defined as the total number of days (including waiting time) in a period during which each vessel is owned, partly owned, operated under a bareboat arrangement (including sale and leaseback) or time chartered-in, net of technical off-hire days. Total operating days stated in the quarterly financial information include operating days for TC Vessels.