Exhibit 99.1
 | The strength of the product tanker market continued into 2024 from 2023 due to vessels being rerouted on longer voyages via the Cape of Good Hope to bypass disruptions in the Red Sea, resulting in higher spot rates across all segments compared to the previous quarter. I am proud to share that Hafnia achieved a net profit of USD 219.6 million in our first quarter, demonstrated by our active management approach, modern fleet, and strong presence in the spot market. Our pool and bunkering business also performed well, contributing USD 9.8 million to our overall results. The IFRS 15 load-to-discharge adjustment has resulted in a negative TCE adjustment of USD 7.2 million. With a diversified and modern fleet of over 130 modern vessels and increasing asset values, our net asset value (NAV1) stands at approximately USD 4.3 billion by the end of the quarter, translating to a NAV per share of around USD 8.37 (~NOK 90.35). This includes that we hold purchase options for eight chartered-in vessels, valued at approximately USD 120 million, enabling us to capitalise on asset value appreciation. We achieved a significant milestone on April 9, 2024 by listing our common shares on the New York Stock Exchange (NYSE) under the ticker ‘HAFN’, complementing our existing listing on the Oslo Stock Exchange (OSE). This dual listing expands our investor base, offering direct exposure in the US markets to our strong commercial performance and track record of shareholder returns. On the same day, we announced that we're raising our dividend payout ratio from 70% to 80% when our net loan-to-value is between 20% and 30%. Additionally, when our net loan-to-value falls below 20%, we will raise this further to 90% from the previous 80%. This shows our dedication to providing solid returns to shareholders while also managing our finances responsibly. At the close of the quarter, our net loan-to-value stood at 24.2%, aligning with our updated payout ratio and I am pleased to announce a dividend payout ratio of 80%, translating to a dividend of USD 175.7 million or USD 0.3443 per share. This marks the highest dividend Hafnia has ever made and holds potential for further growth as we continue strengthening our balance sheet. In the first quarter, the product tanker market was significantly impacted by events in the Red Sea, causing vessels to take longer routes. Looking ahead to the rest of 2024, the outlook remains positive. This is mainly due to refinery dislocations and ramp-ups expected in the Middle East, alongside minimal growth in tanker supply. Firm oil demand, particularly from China and India, also contributes to this positive outlook. As of May 10, 2024, we've secured coverage for 68% of the earning days in Q2, averaging USD 37,896 per day, and 32% coverage at USD 33,901 per day for the entire 2024. |
| - Mikael Skov, CEO Hafnia |
| | | |
1 NAV is calculated using the fair value of Hafnia’s owned vessels. |  |
Summary
| Notes | |
| Note 1: Property, plant and equipment | 23 |
| Note 2: Borrowings | 28 |
| Note 3: Commitments | 32 |
| Note 4: Joint ventures | 33 |
| Note 5: Segment information | 38 |
| Note 6: Fleet list | 40 |
| Note 7: Non-IFRS measures | 43 |
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 harbor 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 harbor provisions of the Private Securities Litigation Reform Act of 1995 and are including this cautionary statement in connection with this safe harbor 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 forward-looking 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’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.
Financial – Q1
In Q1 2024, Hafnia recorded a net profit of USD 219.6 million equivalent to a profit per share of USD 0.43 per share (Q1 2023: USD 256.6 million equivalent to a profit per share of USD 0.51 per share).
The commercially managed pool business generated an income of USD 9.8 million (Q1 2023: USD 11.1 million).
Time Charter Equivalent (TCE)1 earnings for Hafnia Limited (the “Company” or “Hafnia”, together with its subsidiaries, the “Group”) were USD 378.8 million in Q1 2024 (Q1 2023: USD 377.2 million) resulting in an average TCE1 of USD 36,230 per day.
In Q1 2024, Hafnia carried out the following activities:
| • | On 27 March 2024, Hafnia publicly filed a registration statement with the U.S. Securities and Exchange Commission (the “SEC”), for the purpose of listing of the Company’s common shares on the New York Stock Exchange (“NYSE”). |
| • | On 9 April 2024, Hafnia’s common shares commenced trading on the NYSE under the ticker “HAFN”, while continuing to be listed on the Oslo Stock Exchange under the ticker “HAFNI”. |
| | |
| 1 See Non-IFRS Measures in Note 7. | |
Highlights – Q1 2024 CONTINUED
Market
In addition to strong oil demand in 2024, changes in the refinery landscape are set to boost the product tanker market. In 2023, increases in export volumes were largely driven by new refinery operations in the Middle East, such as Al Zour in Kuwait and Duqm in Oman. These refineries, along with others opening in Africa and Asia, are expected to increase production further this year.
On the other hand, ongoing refinery shutdowns in regions like the U.S. and Europe mean that they will need to compensate for lost volumes with imports. This ongoing shift in refinery operations and distribution patterns will alter global oil trade routes and contribute to increased product tonne-miles.
While the impact of sanctions on Russia's products has been fully felt, it has left a lingering effect on inventories. Distillate inventories in Europe remain below the past decade’s average, requiring replenishment. This potential increase in European imports to refill inventories is likely to occur through long-haul trades from the Middle East, where refinery capacities focused on middle distillates continue to expand.
Regarding the product tanker supply, the outlook for 2024 remains positive, with limited growth expected this year. Growth is, however, anticipated to pick up from 2025 onwards, primarily due to an increase in LR2 orders in 2023. While ordering in 2024 has also risen, the overall outlook remains favourable, with the product tanker order book accounting for a relatively modest 14% of fleet capacity as of the end of April 2024.
Looking ahead, healthy market conditions are expected to persist. Ongoing geopolitical uncertainties will drive demand for tonne miles while tonnage flows through the Panama Canal are gradually returning to normal. The dislocation of refinery capacity with oil-consuming regions and limited supply growth will support vessel utilisation and contribute to overall tonne-mile growth.
Highlights – Q1 2024 CONTINUED
Fleet
At the end of the quarter, Hafnia had 117 owned vessels1 and 14 chartered-in vessels. The total fleet of the Group comprises 10 LR2s, 35 LR1s (including 3 bareboat-chartered in and 4 time-chartered in), 62 MRs of which 9 are IMO II (including 10 time-chartered in and 5 bareboat chartered in) and 24 Handy vessels of which 18 are IMO II (including 10 bareboat-chartered in).
The fleet chartered-in had a right-of-use asset book value of USD 23.9 million with a corresponding lease liability of USD 28.8 million.
Hafnia will pay a quarterly dividend of USD 0.3443 per share. Record date will be 23 May 2024 with ex. Dividend date of 22 May 2024 and payment from 29 May 2024 onwards. Please see separate announcement for dividend.
The Quarterly Financial Information Q1 2024 has not been audited or reviewed by auditors.
Conference call
Hafnia will host a conference call for investors and financial analysts at 8:30 pm SGT/2:30 pm CET/8:30 am EST on 15 May 2024.
Hafnia
Mikael Skov, CEO Hafnia: +65 8533 8900
www.hafniabw.com
| | |
1 Including bareboat chartered in vessels; six LR1s and four LR2s owned through 50% ownership in the Vista Joint Venture and two MRs owned through 50% ownership in the Andromeda Joint Venture | |
2 Including USD 338 million relating to Hafnia’s 50% share of six LR1s and four LR2s owned through 50% ownership in the Vista Joint Venture | |
3 Including USD 50 million relating to Hafnia’s 50% share of two MRs owned through 50% ownership in the Andromeda Joint Ventures; and IMO II MR vessels | |
4 Including IMO II Handy vessels |
| USD million | Q2 2023 | Q3 2023 | Q4 20236 | Q1 2024 | |||||||||
| Income Statement | |||||||||||||
| Operating revenue (Hafnia vessels and TC vessels) | 482.0 | 427.8 | 472.0 | 521.8 | |||||||||
| Profit before tax | 214.7 | 147.9 | 178.3 | 221.3 | |||||||||
| Profit for the period | 213.3 | 146.9 | 176.4 | 219.6 | |||||||||
| Financial items | (19.8) | (22.6) | (7.1) | (18.9) | |||||||||
| Share of profit from joint ventures | 5.1 | 3.3 | 4.9 | 7.3 | |||||||||
| TCE income1 | 349.3 | 310.3 | 329.8 | 378.8 | |||||||||
| Adjusted EBITDA1 | 261.6 | 220.8 | 234.5 | 287.1 | |||||||||
| Balance Sheet | |||||||||||||
| Total assets | 4,086.7 | 3,821.6 | 3,913.9 | 3,897.0 | |||||||||
| Total liabilities | 1,910.9 | 1,623.4 | 1,686.2 | 1,541.8 | |||||||||
| Total equity | 2,175.8 | 2,198.2 | 2,227.7 | 2,355.2 | |||||||||
| Cash at bank and on hand2 | 241.5 | 124.8 | 141.6 | 128.9 | |||||||||
| Key financial figures | |||||||||||||
| Return on Equity (RoE) (p.a.) 3 | 40.8% | 27.9% | 33.3% | 38.3% | |||||||||
| Return on Invested Capital (p.a.) 4 | 26.4% | 19.2% | 19.3% | 27.6% | |||||||||
| Equity ratio | 53.9% | 57.5% | 56.9% | 60.4% | |||||||||
| Net loan-to-value (LTV) ratio5 | 30.1% | 27.4% | 26.3% | 24.2% | |||||||||
| | |
1 See Non-IFRS Measures in Note 7. | |
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 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 Q4 2023 figures onwards include IFRS 15 load to discharge adjustments; while previous quarters were not adjusted. Operating revenue from Q4 2023 onwards is adjusted for pool allocation while previous quarters were not adjusted. |
Key figures CONTINUED
| For the 3 months ended 31 March 2024 | LR2 | LR1 | MR | 6 | Handy | 7 | Total | |||||||||||||
| Vessels on water at the end of the period1 | 6 | 29 | 60 | 24 | 119 | |||||||||||||||
| Total operating days2 | 483 | 2,545 | 5,243 | 2,184 | 10,455 | |||||||||||||||
| Total calendar days (excluding TC-in) | 546 | 2,275 | 4,550 | 2,184 | 9,555 | |||||||||||||||
| TCE (USD per operating day)3 | 52,813 | 46,749 | 32,888 | 28,307 | 36,230 | |||||||||||||||
| OPEX (USD per calendar day)4 | 8,550 | 8,178 | 7,812 | 7,569 | 7,886 | |||||||||||||||
| G&A (USD per operating day)5 | 1,228 | |||||||||||||||||||
Vessels on balance sheet
As at 31 March 2024, total assets amounted to USD 3,897.0 million, of which USD 2,714.4 million represents the carrying value of the Group’s vessels including dry docking but excluding right-of-use of assets, is as follows:
Balance Sheet USD million | LR2 | LR1 | MR | 6 | Handy | 7 | Total | |||||||||||||
| Vessels (including dry-dock) | 248.9 | 656.1 | 1,256.2 | 553.2 | 2,714.4 | |||||||||||||||
| | |
1 Excluding six LR1s and four LR2s owned through 50% ownership in the Vista Joint Venture and two MRs owned through 50% ownership in the Andromeda Joint Venture | |
2 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. | |
3 See Non-IFRS Measures in Note 7. | |
4 OPEX includes vessel running costs and technical management fees. | |
5 G&A includes all expenses and is adjusted for cost incurred in managing external vessels. | |
6 Inclusive of nine IMO II MR vessels. | |
7 Inclusive of 18 IMO II Handy vessels. |
Consolidated interim statement of comprehensive income
For the 3 USD’000 | For the 3 months ended 31 March 2023 USD’000 | |||||||
| Revenue (Hafnia Vessels and TC Vessels) | 521,792 | 522,601 | ||||||
| Revenue (External Vessels in Disponent-Owner Pools) 1 | 263,101 | 93,957 | ||||||
| Voyage expenses (Hafnia Vessels and TC Vessels) | (142,990 | ) | (145,409 | ) | ||||
| Voyage expenses (External Vessels in Disponent-Owner Pools) 1 | (84,213 | ) | (42,751 | ) | ||||
| Pool distributions for External Vessels in Disponent-Owner Pools | (178,888 | ) | (51,206 | ) | ||||
| 378,802 | 377,192 | |||||||
| Other operating income | 9,824 | 11,110 | ||||||
| Vessel operating expenses | (69,629 | ) | (64,655 | ) | ||||
| Technical management expenses | (5,719 | ) | (6,025 | ) | ||||
| Charter hire expenses | (9,530 | ) | (6,887 | ) | ||||
| General and administrative expenses | (16,696 | ) | (14,722 | ) | ||||
| 287,052 | 296,013 | |||||||
| Depreciation charge of property, plant and equipment | (53,793 | ) | (51,661 | ) | ||||
| Amortisation charge of intangible assets | (336 | ) | (332 | ) | ||||
| Gain on disposal of assets | — | 36,687 | ||||||
| Operating profit | 232,923 | 280,707 | ||||||
| Capitalised financing fees written off | (1,663 | ) | — | |||||
| Interest income | 2,805 | 4,909 | ||||||
| Interest expense | (15,827 | ) | (29,200 | ) | ||||
| Other finance expense | (4,213 | ) | (3,680 | ) | ||||
| Finance expense – net | (18,898 | ) | (27,971 | ) | ||||
| Share of profit from joint ventures | 7,289 | 5,822 | ||||||
| Profit before income tax | 221,314 | 258,558 | ||||||
| Income tax expense | (1,743 | ) | (1,923 | ) | ||||
| Profit for the financial period | 219,571 | 256,635 | ||||||
| | |
1 “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. | |
Consolidated interim statement of comprehensive income CONTINUED
For the 3 USD’000 | For the 3 months ended 31 March 2023 USD’000 | |||||||
| Other comprehensive income: | ||||||||
| Items that may be subsequently reclassified to profit or loss: | ||||||||
| Foreign operations - foreign currency translation differences | 23 | (71 | ) | |||||
| Fair value gains/(losses) on cash flow hedges | 14,124 | (1,889 | ) | |||||
| Reclassification to profit or loss | (8,392 | ) | (8,409 | ) | ||||
| 5,755 | (10,369 | ) | ||||||
| Items that will not be subsequently reclassified to profit or loss: | ||||||||
| Equity investments at FVOCI – net change in fair value | 1,260 | — | ||||||
| Total other comprehensive income | 7,016 | (10,369 | ) | |||||
| Total comprehensive income for the period | 226,586 | 246,266 | ||||||
Earnings per share attributable to the equity holders of the Company | ||||||||
| Basic no. of shares | 509,754,103 | 502,326,514 | ||||||
| Basic earnings in USD per share | 0.43 | 0.51 | ||||||
| Diluted no. of shares | 504,597,121 | 509,159,605 | ||||||
| Diluted earnings in USD per share | 0.43 | 0.50 | ||||||
As at 31 March 2024 USD’000 | As at 31 December 2023 USD’000 | |||||
| Vessels | 2,642,869 | 2,673,938 | ||||
| Dry docking and scrubbers | 71,550 | 68,159 | ||||
| Right-of-use assets - Vessels | 23,850 | 34,561 | ||||
| Other property, plant and equipment | 925 | 964 | ||||
| Total property, plant and equipment | 2,739,194 | 2,777,622 | ||||
| Intangible assets | 976 | 1,290 | ||||
| Total intangible assets | 976 | 1,290 | ||||
| Joint ventures | 67,461 | 60,172 | ||||
| Other investments | 23,223 | 23,953 | ||||
| Restricted cash1 | 13,421 | 13,381 | ||||
| Loans receivable from joint ventures | 73,116 | 69,626 | ||||
| Deferred tax assets | — | 36 | ||||
| Derivative financial instruments | 40,637 | 35,023 | ||||
| Total other non-current assets | 217,858 | 202,191 | ||||
| Total non-current assets | 2,958,028 | 2,981,103 | ||||
| Inventories | 111,613 | 107,704 | ||||
| Trade and other receivables | 598,677 | 589,710 | ||||
| Derivative financial instruments | 12,080 | 12,902 | ||||
| Cash at bank and on hand | 128,916 | 141,621 | ||||
| Cash retained in the commercial pools2 | 87,704 | 80,900 | ||||
| Total current assets | 938,990 | 932,837 | ||||
| Total assets | 3,897,018 | 3,913,940 |
| Share capital | 5,103 | 5,069 | ||||
| Share premium | 1,068,267 | 1,044,849 | ||||
| Contributed surplus | 537,112 | 537,112 | ||||
| Other reserves | 17,920 | 27,620 | ||||
| Treasury shares | (273 | ) | (17,951 | ) | ||
| Retained earnings | 727,076 | 631,025 | ||||
| Total shareholders’ equity | 2,355,205 | 2,227,724 | ||||
| Borrowings | 944,850 | 1,025,023 | ||||
| Total non-current liabilities | 944,850 | 1,025,023 | ||||
| Current income tax liabilities | 777 | 8,111 | ||||
| Derivative financial instruments | 122 | 276 | ||||
| Trade and other payables | 345,146 | 385,478 | ||||
| Borrowings3 | 250,918 | 267,328 | ||||
| Total current liabilities | 596,963 | 661,193 | ||||
| Total liabilities | 1,541,813 | 1,686,216 | ||||
| Total shareholders’ equity and liabilities | 3,897,018 | 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 Borrowings include USD 113.0 million of bank borrowings relating to pool financing, of which approximately USD 47.7 million is attributable to working capital advanced to external pool participants and has been adjusted in calculation of Net LTV. |
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 reserves USD’000 | Share-based payment reserve USD’000 | Other 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 | |||||||||||||||||||||||||||||||||
| Purchase of treasury shares | 34 | 23,418 | — | — | — | — | — | — | — | — | 23,452 | ||||||||||||||||||||||
| Equity-settled share-based payment | — | — | — | — | — | — | — | 559 | — | — | 559 | ||||||||||||||||||||||
| Dividends paid | — | — | — | — | — | — | — | — | — | (123,520 | ) | (123,520 | ) | ||||||||||||||||||||
| Share options exercised | — | — | — | — | — | 17,678 | (15,707 | ) | (1,567 | ) | — | — | 404 | ||||||||||||||||||||
| Total comprehensive income | |||||||||||||||||||||||||||||||||
| Profit for the financial period | — | — | — | — | — | — | — | — | — | 219,571 | 219,571 | ||||||||||||||||||||||
| Other comprehensive income | — | — | — | 23 | 5,732 | — | — | — | 1,260 | — | 7,015 | ||||||||||||||||||||||
| Balance at 31 March 2024 | 5,103 | 1,068,267 | 537,112 | (40 | ) | 45,044 | (273 | ) | (40,844 | ) | 2,780 | 10,980 | 727,076 | 2,355,205 | |||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||
| Purchase of treasury shares | 34 | 20,853 | — | — | — | (44,339 | ) | — | — | — | — | (23,452 | ) | ||||||||||||||||||||
| Equity-settled share-based payment | — | — | — | — | — | — | — | 2,822 | — | — | 2,822 | ||||||||||||||||||||||
| Share options exercised | — | — | — | — | — | 39,063 | (24,427 | ) | (4,907 | ) | — | — | 9,729 | ||||||||||||||||||||
| 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 |
Consolidated statement of cash flows
For the 3 months ended 31 March 2024 USD’000 | For the 3 months ended 31 March 2023 USD’000 | |||||
| Cash flows from operating activities | ||||||
| Profit for the financial period | 219,571 | 256,635 | ||||
| Adjustments for: | ||||||
| - depreciation and amortisation charges | 54,129 | 51,993 | ||||
| - gain on disposal of assets | — | (36,687 | ) | |||
| - interest income | (2,805 | ) | (4,909 | ) | ||
| - interest expense | 17,490 | 29,200 | ||||
| - other finance expense | 4,213 | 3,680 | ||||
| - income tax expense | 1,743 | 1,923 | ||||
| - share of profit of equity accounted investees, net of tax | (7,289 | ) | (5,822 | ) | ||
| - equity-settled share-based payment transactions | 559 | 814 | ||||
| Operating cash flow before working capital changes | 287,611 | 296,827 | ||||
| Changes in working capital: | ||||||
| - inventories | (3,909 | ) | (20,110 | ) | ||
| - trade and other receivables | (9,185 | ) | (277,503 | ) | ||
| - trade and other payables | (17,548 | ) | 356,061 | |||
| Cash generated from operations | 256,969 | 355,275 | ||||
| Income tax paid | (8,451 | ) | (1,247 | ) | ||
| Net cash provided by operating activities | 248,518 | 354,028 | ||||
| Cash flows from investing activities | ||||||
| Acquisition of other investments | (353 | ) | (250 | ) | ||
| Purchase of property, plant and equipment | (15,365 | ) | (2,055 | ) |
Consolidated statement of cash flows CONTINUED
For the 3 months ended 31 March 2024 USD’000 | For the 3 months ended 31 March 2023 USD’000 | ||||||
| Purchase of intangible assets | (22 | ) | — | ||||
| Proceeds from disposal of property, plant and equipment | — | 95,712 | |||||
| Proceeds from disposal of other investments | 2,344 | — | |||||
| Interest income received | 1,798 | 3,496 | |||||
| Loan to joint ventures | (2,581 | ) | — | ||||
| Net cash (used in)/provided by investing activities | (14,179 | ) | 96,903 | ||||
| Cash flows from financing activities | |||||||
| Proceeds from borrowings from external financial institutions | 30,000 | 74,424 | |||||
| Repayment of borrowings to external financial institutions | (15,725 | ) | (126,091 | ) | |||
| Repayment of borrowings to non-related parties | — | (132 | ) | ||||
| Repayment of finance lease liabilities | (113,896 | ) | (120,258 | ) | |||
| Proceeds from employee share option plan | 408 | 8,578 | |||||
| Payment of financing fees to external financial institutions | — | (1,247 | ) | ||||
| Interest paid to external financial institutions | (13,865 | ) | (34,916 | ) | |||
| Interest paid to a third party | — | (3 | ) | ||||
| Other finance expense paid | (3,642 | ) | (2,492 | ) | |||
| Dividends paid | (123,520 | ) | (159,204 | ) | |||
| Net cash used in financing activities | (240,240 | ) | (361,341 | ) | |||
| Net (decrease)/increase in cash and cash equivalents | (5,901 | ) | 89,590 | ||||
| Cash and cash equivalents at beginning of the financial period | 222,521 | 280,325 | |||||
| Cash and cash equivalents at end of the financial period | 216,620 | 369,915 | |||||
| Cash and cash equivalents at the end of the financial period consists of: | |||||||
| Cash at bank and on hand | 128,916 | 268,306 | |||||
| Cash retained in the commercial pools | 87,704 | 101,609 | |||||
| Cash and cash equivalents at end of the financial period | 216,620 | 369,915 |
Cash at bank and on hand1 amounted to USD 128.9 million as of 31 March 2024 (31 December 2023: USD 141.6 million).
Operating activities generated a net cash inflow of USD 248.5 million in Q1 2024 (Q1 2023: USD 356.3 million).
Cash flows from operating activities were principally utilised for vessel drydocking costs, repayments of borrowings and interest, and payment of dividends to shareholders.
Investing activities resulted in a net cash outflow of USD 14.2 million in Q1 2024 (Q1 2023: net cash inflow of USD 98.9 million).
Financing activities resulted in a net cash outflow of USD 240.2 million in Q1 2024 (Q1 2023: net cash outflow of USD 361.3 million).
| | |
1 Excluding cash retained in the commercial pools. | |
In April 2024, Hafnia Board of Directors approved an increase in the dividend payout ratio. Under the revised dividend policy, Hafnia will increase its payout ratio from the previous 70%, to 80%, when the net loan-to-value is above 20% but equal to or below 30%. Furthermore, if the net loan-to-value is equal to or below 20%, the payout ratio will be further elevated to 90% from the previous 80%.
Following this update, 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 Q1
The board has set the quarterly payout ratio at 80% for Q1 2024.
| Fleet overview | Q2 2024 | Q2 to Q4 2024 | 2025 | |||||||||
| Owned ships, # of vessels | ||||||||||||
| LR2 | 6.0 | 6.0 | 6.0 | |||||||||
| LR1 | 10.0 | 10.0 | 10.0 | |||||||||
| MR2 | 44.0 | 44.0 | 44.0 | |||||||||
| Handy3 | 6.0 | 6.0 | 6.0 | |||||||||
| Total | 66.0 | 66.0 | 66.0 | |||||||||
| Charter-in and leaseback ships, # of vessels | ||||||||||||
| LR2 | — | — | — | |||||||||
| LR1 | 18.9 | 17.8 | 15.5 | |||||||||
| MR2 | 15.5 | 13.7 | 7.3 | |||||||||
| Handy3 | 18.0 | 18.0 | 18.0 | |||||||||
| Total | 52.4 | 49.5 | 40.8 | |||||||||
| Vista joint venture ships1, # of vessels | ||||||||||||
| LR2 | 4.0 | 4.0 | 4.0 | |||||||||
| LR1 | 6.0 | 6.0 | 6.0 | |||||||||
| MR2 | 2.0 | 2.0 | 3.0 | |||||||||
| Handy3 | — | — | — | |||||||||
| Total | 12.0 | 12.0 | 13.0 | |||||||||
Coverage of earning days is prepared as of 10 May 2024.
| | |
1 The figures are presented on a 100% basis. The JV vessels are owned through Hafnia’s 50% participation in the Vista and Andromeda joint ventures. | |
| 2 Inclusive of nine IMO II vessels | |
| 3 Inclusive of 18 IMO II vessels |
Coverage of earning days CONTINUED
| Q2 2024 | Q2 to Q4 2024 | 2025 | ||||||||
| Total ships, # of vessels | ||||||||||
| LR2 | 6.0 | 6.0 | 6.0 | |||||||
| LR1 | 10.0 | 10.0 | 10.0 | |||||||
| MR1 | 44.0 | 44.0 | 44.0 | |||||||
| Handy2 | 6.0 | 6.0 | 6.0 | |||||||
| Total | 66.0 | 66.0 | 66.0 | |||||||
| Covered, % | ||||||||||
| LR2 | 85% | 55% | 44% | |||||||
| LR1 | 54% | 18% | 0% | |||||||
| MR1 | 67% | 34% | 8% | |||||||
| Handy2 | 83% | 37% | 4% | |||||||
| Total | 68% | 32% | 8% | |||||||
| Covered rates, USD per day | ||||||||||
| LR2 | 40,814 | 33,483 | 25,765 | |||||||
| LR1 | 48,681 | 48,621 | — | |||||||
| MR1 | 34,900 | 30,785 | 21,563 | |||||||
| Handy2 | 32,602 | 31,043 | 24,162 | |||||||
| Total | 37,896 | 33,901 | 23,603 | |||||||
Coverage of earning days is prepared as of 10 May 2024.
| | |
1 Inclusive of nine IMO II vessels | |
| 2 Inclusive of 18 IMO II vessels |
| LR2 | Q2 2023 | Q3 2023 | Q4 20234 | Q1 2024 | ||||||||||||
| Operating days (owned) | 546 | 552 | 550 | 483 | ||||||||||||
| Operating days (TC - in) | — | — | — | — | ||||||||||||
| TCE (USD per operating day)1 | 36,926 | 31,272 | 38,884 | 52,813 | ||||||||||||
| TCE (TC - in) (USD per operating day)1 | — | — | — | — | ||||||||||||
| Calendar days (excluding TC - in) | 546 | 552 | 552 | 546 | ||||||||||||
| OPEX (USD per calendar day) | 8,206 | 8,348 | 6,984 | 8,550 | ||||||||||||
| MR2 | Q2 2023 | Q3 2023 | Q4 20234 | Q1 2024 | ||||||||||||
| Operating days (owned) | 4,312 | 4,416 | 4,442 | 4,333 | ||||||||||||
| Operating days (TC - in) | 832 | 920 | 920 | 910 | ||||||||||||
| TCE (USD per operating day)1 | 30,954 | 29,141 | 31,355 | 32,888 | ||||||||||||
| TCE (TC - in) (USD per operating day)1 | 33,023 | 31,652 | 32,299 | 33,609 | ||||||||||||
| Calendar days (excluding TC - in) | 4,342 | 4,508 | 4,541 | 4,550 | ||||||||||||
| OPEX (USD per calendar day) | 7,621 | 8,093 | 8,131 | 7,812 | ||||||||||||
| LR1 | Q2 2023 | Q3 2023 | Q4 20234 | Q1 2024 | ||||||||||||
| Operating days (owned) | 2,154 | 2,240 | 2,253 | 2,181 | ||||||||||||
| Operating days (TC - in) | 363 | 350 | 360 | 364 | ||||||||||||
| TCE (USD per operating day)1 | 41,119 | 30,198 | 32,184 | 46,749 | ||||||||||||
| TCE (TC - in) (USD per operating day)1 | 37,891 | 28,825 | 33,716 | 47,507 | ||||||||||||
| Calendar days (excluding TC - in) | 2,248 | 2,298 | 2,300 | 2,275 | ||||||||||||
| OPEX (USD per calendar day) | 7,731 | 8,628 | 7,601 | 8,178 | ||||||||||||
| HANDY3 | Q2 2023 | Q3 2023 | Q4 20234 | Q1 2024 | ||||||||||||
| Operating days (owned) | 2,180 | 2,199 | 2,207 | 2,184 | ||||||||||||
| Operating days (TC - in) | — | — | — | — | ||||||||||||
| TCE (USD per operating day)1 | 30,100 | 26,780 | 25,459 | 28,307 | ||||||||||||
| TCE (TC - in) (USD per operating day)1 | — | — | — | — | ||||||||||||
| Calendar days (excluding TC - in) | 2,184 | 2,208 | 2,208 | 2,184 | ||||||||||||
| OPEX (USD per calendar day) | 7,846 | 7,753 | 7,329 | 7,569 | ||||||||||||
| | |
1 TCE represents gross TCE income after adding back pool commissions; See Non-IFRS Measures in Note 7. | |
| 2 Inclusive of IMO II MR vessels. | |
| 3 Inclusive of IMO II Handy vessels. | |
4 Q4 2023 figures onwards include IFRS 15 load to discharge adjustments; while previous quarters were not adjusted. Operating revenue from Q4 2023 onwards is adjusted for pool allocation while previous quarters were not adjusted. |
Tanker segment results CONTINUED
| Chemical - Stainless | Q2 2023 | Q3 2023 | Q4 20232 | Q1 2024 | ||||||||||||
| Operating days (owned) | — | — | — | — | ||||||||||||
| Operating days (TC - in) | 57 | 39 | — | — | ||||||||||||
| TCE (USD per operating day)1 | 15,994 | 10,068 | — | — | ||||||||||||
| TCE (TC - in) (USD per operating day)1 | — | — | — | — | ||||||||||||
| Calendar days (excluding TC - in) | — | — | — | — | ||||||||||||
| OPEX (USD per calendar day) | — | — | — | — | ||||||||||||
| | |
1 TCE represents gross TCE income after adding back pool commissions; See Non-IFRS Measures in Note 7. | |
2 Q4 2023 figures onwards include IFRS 15 load to discharge adjustments; while previous quarters were not adjusted. Operating revenue from Q4 2023 onwards is adjusted for pool allocation while previous quarters were not adjusted. |
| Right-of-use Assets - Vessels USD’000 | Vessels USD’000 | Dry docking and scrubbers USD’000 | Others USD’000 | Total USD’000 | ||||||||||||||||
| Cost | ||||||||||||||||||||
| At 1 January 2024 | 199,582 | 3,573,265 | 143,375 | 1,495 | 3,917,717 | |||||||||||||||
| Additions | — | 3,324 | 11,996 | 45 | 15,365 | |||||||||||||||
| Write-off on completion of dry docking cycle | — | — | (7,946 | ) | — | (7,946 | ) | |||||||||||||
| At 31 March 2024 | 199,582 | 3,576,589 | 147,425 | 1,540 | 3,925,136 | |||||||||||||||
| Accumulated depreciation and impairment charge | ||||||||||||||||||||
| At 1 January 2024 | 165,021 | 899,327 | 75,216 | 531 | 1,140,095 | |||||||||||||||
| Depreciation charge | 10,711 | 34,393 | 8,605 | 84 | 53,793 | |||||||||||||||
| Write-off on completion of dry docking cycle | — | — | (7,946 | ) | — | (7,946 | ) | |||||||||||||
| At 31 March 2024 | 175,732 | 933,720 | 75,875 | 615 | 1,185,942 | |||||||||||||||
| Net book value | ||||||||||||||||||||
| At 31 March 2024 | 23,850 | 2,642,869 | 71,550 | 925 | 2,739,194 | |||||||||||||||
| Right-of-use Assets - Vessels USD’000 | Vessels USD’000 | Dry docking and scrubbers USD’000 | Others USD’000 | Total USD’000 | ||||||||||||||||
| Cost | ||||||||||||||||||||
| At 1 January 2023 | 187,730 | 3,698,658 | 138,001 | 1,369 | 4,025,758 | |||||||||||||||
| Additions | — | 1,592 | 408 | 55 | 2,055 | |||||||||||||||
| Disposal of vessel | — | (164,795 | ) | (7,481 | ) | — | (172,276 | ) | ||||||||||||
| Reclassification to assets held for sale | — | (60,321 | ) | (1,729 | ) | — | (62,050 | ) | ||||||||||||
| At 31 March 2023/1 April 2023 | 187,730 | 3,475,134 | 129,199 | 1,424 | 3,793,487 | |||||||||||||||
| Additions | — | 86,445 | 7,405 | 4 | 93,854 | |||||||||||||||
| Disposal of vessel | — | (58,712 | ) | (3,340 | ) | — | (62,052 | ) | ||||||||||||
| Write-off on completion of dry docking cycle | — | — | (1,575 | ) | — | (1,575 | ) | |||||||||||||
| At 30 June 2023/1 July 2023 | 187,730 | 3,502,867 | 131,689 | 1,428 | 3,823,714 | |||||||||||||||
| Additions | — | 33,966 | 8,400 | 51 | 42,417 | |||||||||||||||
| Write-off on completion of dry docking cycle | — | — | (2,727 | ) | — | (2,727 | ) | |||||||||||||
| At 30 September 2023/1 October 2023 | 187,730 | 3,536,833 | 137,362 | 1,479 | 3,863,404 | |||||||||||||||
| Additions | 11,852 | 36,432 | 9,618 | 16 | 57,918 | |||||||||||||||
| Disposal of vessel | — | (60,321 | ) | (1,696 | ) | — | (62,017 | ) | ||||||||||||
| Write-off on completion of dry docking cycle | — | — | (3,638 | ) | — | (3,638 | ) | |||||||||||||
| Reclassification of assets held for sale to disposal of vessel | — | 60,321 | 1,729 | — | 62,050 | |||||||||||||||
| At 31 December 2023 | 199,582 | 3,573,265 | 143,375 | 1,495 | 3,917,717 | |||||||||||||||
Note 1: Property, plant and equipment CONTINUED
| Right-of-use Assets - Vessels USD’000 | Vessels USD’000 | Dry docking and scrubbers USD’000 | Others USD’000 | Total USD’000 | ||||||||||||||||
| Accumulated depreciation and impairment charge | ||||||||||||||||||||
| At 1 January 2023 | 119,826 | 970,339 | 58,791 | 239 | 1,149,195 | |||||||||||||||
| Depreciation charge | 11,232 | 33,153 | 7,204 | 72 | 51,661 | |||||||||||||||
| Disposal of vessel | — | (111,179 | ) | (2,072 | ) | — | (113,251 | ) | ||||||||||||
| Reclassification to assets held for sale | — | (49,015 | ) | (482 | ) | — | (49,497 | ) | ||||||||||||
| At 31 March 2023/1 April 2023 | 131,058 | 843,298 | 63,441 | 311 | 1,038,108 | |||||||||||||||
| Depreciation charge | 11,292 | 33,250 | 6,935 | 68 | 51,545 | |||||||||||||||
| Disposal of vessel | — | (46,287 | ) | (1,852 | ) | — | (48,139 | ) | ||||||||||||
| Write-off on completion of dry docking cycle | — | — | (1,575 | ) | — | (1,575 | ) | |||||||||||||
| At 30 June 2023/1 July 2023 | 142,350 | 830,261 | 66,949 | 379 | 1,039,939 | |||||||||||||||
| Depreciation charge | 11,335 | 34,572 | 7,158 | 70 | 53,135 | |||||||||||||||
| Write-off on completion of dry docking cycle | — | — | (2,727 | ) | — | (2,727 | ) | |||||||||||||
| At 30 September 2023/1 October 2023 | 153,685 | 864,833 | 71,380 | 449 | 1,090,347 | |||||||||||||||
| Depreciation charge | 11,336 | 34,494 | 7,474 | 82 | 53,386 | |||||||||||||||
Write-off on completion of dry docking cycle | — | — | (3,638 | ) | — | (3,638 | ) | |||||||||||||
| Disposal of vessel | — | (49,015 | ) | (482 | ) | — | (49,497 | ) | ||||||||||||
| Reclassification of assets held for sale to disposal of vessel | — | 49,015 | 482 | — | 49,497 | |||||||||||||||
| At 31 December 2023 | 165,021 | 899,327 | 75,216 | 531 | 1,140,095 | |||||||||||||||
| Net book value | ||||||||||||||||||||
| At 31 December 2023 | 34,561 | 2,673,938 | 68,159 | 964 | 2,777,622 | |||||||||||||||
Note 1: Property, plant and equipment CONTINUED
| a. | The Group organises the commercial management of the fleet of product tanker vessels into seven individual commercial pools: LR1, LR2, MR, Handy, Chemical-MR, Chemical-Handy and Specialised. Each individual commercial pool constitutes a separate cash-generating unit (“CGU”). For vessels deployed on a time-charter basis outside the commercial pools, each of these vessels constitutes a separate CGU. |
Management is required to assess whenever events or changes in circumstances indicate that the carrying value of these CGUs may not be recoverable. Management measures the recoverability of each CGU by comparing its carrying amount to its ‘recoverable value’, being the higher of its fair value less costs of disposal or value in use (“VIU”) based on future discounted cash flows that CGU is expected to generate over its remaining useful life.
Note 1: Property, plant and equipment CONTINUED
As at 31 March 2024, the Group assessed whether these CGUs have indicators of impairment by reference to internal and external factors. The market valuation of the fleet of vessels, as appraised by independent shipbrokers, is one key test performed by the Group.
Based on this assessment, alongside with other industry factors, the Group concluded that there is no indication that any impairment loss or reversal of previously recognised impairment loss is needed for the 3 months ended 31 March 2024 (3 months ended 31 March 2023: USD Nil).
| b. | The Group has mortgaged vessels with a total carrying amount of USD 2,342.1 million as at 31 March 2024 (31 March 2023: USD 2,697.6 million) as security over the Group’s bank borrowings. |
| c. | There were no additions to right-of-use assets as at 31 March 2024 (3 months ended 31 March 2023: USD Nil). |
| d. | The average purchase option price and next exercisable option period for time chartered-in vessels recognised as right-of use assets by segment are as follows: |
| USD’000 | Average purchase option price1 | Next exercisable option period2 | ||||
| LR1 | 40,800 | Exercisable immediately in current financial period | ||||
| MR | 29,100 | Exercisable immediately in current financial period |
| | |
1 The purchase option price decreases by a fixed amount per year, or on a pro-rata basis based on individual contract terms. The value of the purchase options amount to USD 120 mil as at the end of the reporting period. | |
| 2 Prior notice period of three to four months required before exercise of options |
As at 31 March 2024 USD’000 | As at 31 December 2023 USD’000 | |||||||
| Current | ||||||||
| Bank borrowings | 174,349 | 174,004 | ||||||
| Sales and leaseback-liabilities (accounted for as financing transaction) | 49,370 | 57,305 | ||||||
| Other lease liabilities | 27,199 | 36,019 | ||||||
| Total current borrowings | 250,918 | 267,328 | ||||||
| Non-current | ||||||||
| Bank borrowings | 413,205 | 398,507 | ||||||
| Sales and leaseback-liabilities (accounted for as financing transaction) | 530,006 | 622,174 | ||||||
| Other lease liabilities | 1,639 | 4,342 | ||||||
| Total non-current borrowings | 944,850 | 1,025,023 | ||||||
| Total borrowings | 1,195,768 | 1,292,351 | ||||||
| Facility amount | Outstanding amount USD m | Maturity date | ||||||
| USD 473 million facility | 107.9 | |||||||
| - 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 | 140.5 | 2027 | ||||||
| USD 106 million facility | 88.6 | 2025 | ||||||
| USD 84 million facility | 54.2 | |||||||
| - USD 68 million term loan | 2026 | |||||||
| - USD 16 million revolving credit facility | 2026 | |||||||
| USD 39 million facility | 17.9 | |||||||
| - USD 30 million term loan | 2025 | |||||||
| - USD 9 million revolving credit facility | 2025 | |||||||
| Up to USD 175 million borrowing base facility | ||||||||
| Up to USD 175 million borrowing base facility | 53.0 | |||||||
| (with an accordion option of up to USD 75 million) | 60.0 | 2024 | ||||||
| Facility amount | Outstanding amount USD m | Maturity date | ||||||
| USD 40 million facility | 37.8 | 2029 | ||||||
| USD 303 million facility | 28.0 | |||||||
| - USD 303 million revolving credit facility | 2029 | |||||||
| Repayment profile USD’000 | For the financial year ended 31 December 2024 | For the financial year ended 31 December 2025 | ||||||
| USD 473 million facility | 21,744 | 28,992 | ||||||
| USD 216 million facility | 9,450 | 12,600 | ||||||
| USD 106 million facility | 6,642 | 81,920 | ||||||
| USD 84 million facility | 4,680 | 6,240 | ||||||
| USD 39 million facility | 2,503 | 15,464 | ||||||
| Up to USD 175 million borrowing base facility | 53,000 | |||||||
| Up to USD 175 million borrowing base facility | 60,000 | |||||||
(with an accordion option of up to USD 75 million) | ||||||||
| USD 40 million facility | 2,155 | 2,873 | ||||||
| USD 303 million facility | — | — | ||||||
Note 2: BORROWINGS CONTINUED
As at 31 March 2024, bank borrowings of joint ventures consist of six credit facilities (31 December 2023: six credit facilities) from external financial institutions. The table below summarises key information of the joint ventures’ bank borrowings:
| Facility amount | Outstanding amount USD m | Maturity date | |||
| Vista joint venture | |||||
| USD 51.8 million facility | 32.4 | 2031 | |||
| USD 111.0 million facility | 80.9 | 2032 | |||
| USD 89.6 million facility | 85.0 | 2033 | |||
| USD 88.5 million facility | 87.3 | 2031 | |||
| Andromeda joint venture | |||||
| USD 22.1 million facility | 18.0 | 2026 | |||
| USD 23.5 million facility | 20.2 | 2028 |
| Repayment profile USD’000 | For the financial year ended 31 December 2024 | For the financial year ended 31 December 2025 | |||
| Vista joint venture | |||||
| USD 51.8 million facility | 2,590 | 3,453 | |||
| USD 111.0 million facility | 5,550 | 7,400 | |||
| USD 89.6 million facility | 3,953 | 5,271 | |||
| USD 88.5 million facility | 3,687 | 4,917 | |||
| Andromeda joint venture | |||||
| USD 22.1 million facility | 1,105 | 1,473 | |||
| USD 23.5 million facility | 1,103 | 1,470 |
As at 31 March 2024, the finance lease liabilities consist of various facilities provided by external leasing houses. The vessels under these facilities are legally owned by the leasing houses and leased back to Hafnia. The maturity dates of the facilities range from 2029 to 2033.
The carrying amounts relating to the 12 LR1 vessels was USD 346.8 million (31 December 2023: USD 354.2 million), 10 CTI vessels was USD 185.3 million (31 December 2023: USD 276.9 million), and other finance leases was USD 47.3 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 March 2024 | As at 31 December 2023 | ||||
| Bank borrowings | 7.0% | 6.7% | |||
| Sales and leaseback-liabilities (accounted for as financing transaction) | 7.2% | 7.4% |
Carrying amounts and fair values
The carrying values of the bank borrowings and finance lease liabilities approximate their fair values as they are re-priceable at one to three months intervals.
Operating lease commitments - where the Group is a lessor
The Group leases vessels to third 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 payments under operating leases to be received after the reporting data are analysed as follows:
| USD’000 | As at 31 March 2024 | As at 31 December 2023 | |||
| Less than one year | 89,813 | 87,459 | |||
| One to two years | 35,345 | 25,830 | |||
| Two to five years | 16,224 | 8,960 | |||
| 141,382 | 122,249 |
Capital commitments - Joint ventures
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 March 2024 | As at 31 December 2023 | |||
| Less than one year | 18,069 | 28,394 | |||
| One to two years | 21,941 | 58,079 | |||
| More than five years | 42,591 | 19,360 | |||
| 82,601 | 105,833 |
| As at 31 March 2024 | As at 31 December 2023 | ||||
| USD’000 | USD’000 | ||||
| Interest in joint ventures | 67,461 | 60,172 |
Note 4: Joint ventures CONTINUED
| a. | Vista Shipping Pte Ltd |
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. In accordance with the agreement under which Vista Shipping 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.
During the financial period ended 31 March 2024, Hafnia took delivery of one LR2 vessel through its Vista 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 | As at 31 | |||||||
| March 2024 | December 2023 | |||||||
| USD’000 | USD’000 | |||||||
| Percentage ownership interest | 50% | 50% | ||||||
| Non-current assets | 437,981 | 397,965 | ||||||
| Current assets | 75,398 | 54,092 | ||||||
| Non-current liabilities | (375,519 | ) | (336,598 | ) | ||||
| Current liabilities | (36,784 | ) | (28,564 | ) | ||||
| Net assets (100%) | 101,076 | 86,895 | ||||||
| Group’s share of net assets (50%) | 50,538 | 43,448 | ||||||
| Revenue | 30,963 | 91,191 | ||||||
| Other income | 1,051 | 1,963 | ||||||
| Expenses | (17,832 | ) | (56,914 | ) | ||||
| Profit and total comprehensive income (100%) | 14,182 | 36,240 | ||||||
| Profit and total comprehensive income (50%) | 7,091 | 18,120 | ||||||
| Prior year share of loss not recognized | — | (170 | ) | |||||
| Group’s share of total comprehensive income (50%) | 7,091 | 17,950 | ||||||
Note 4: Joint ventures CONTINUED
| b. | H&A Shipping |
In July 2021, the Group and Andromeda Shipholdings Ltd (“Andromeda Shipholdings”) entered into a joint venture, H&A Shipping Ltd (“H&A Shipping”) in which the Group has joint control and 50% ownership interest. H&A Shipping is domiciled in the Republic of the Marshall Islands 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 Ltd as a joint venture. In accordance with the agreement under which H&A Shipping was established, the Group and the other investor in the joint venture have agreed to provide equity in proportion to their interests to finance the newbuild programme.
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 March 2024 USD’000 | As at 31 December 2023 USD’000 | |||||||
| Percentage ownership interest | 50% | 50% | ||||||
| Non-current assets | 62,215 | 62,990 | ||||||
| Current assets | 6,083 | 5,308 | ||||||
| Non-current liabilities | (51,301 | ) | (52,038 | ) | ||||
| Current liabilities | (4,936 | ) | (4,548 | ) | ||||
| Net assets (100%) | 12,061 | 11,712 | ||||||
| Group’s share of net assets (50%) | 6,030 | 5,856 | ||||||
| Shareholder’s loans | 7,668 | 7,668 | ||||||
| Alignment of accounting policies | 1,043 | 1,006 | ||||||
| Carrying amount of interest in joint venture | 14,740 | 14,530 | ||||||
| Revenue | 2,853 | 11,438 | ||||||
| Other income | 147 | 1,458 | ||||||
| Expenses | (2,652 | ) | (10,857 | ) | ||||
| Profit and total comprehensive income (100%) | 348 | 2,039 | ||||||
| Profit and total comprehensive income (50%) | 173 | 1,019 | ||||||
| Alignment of accounting policies | 37 | 147 | ||||||
| Group’s share of total comprehensive income (50%) | 210 | 1,166 | ||||||
| c. | Ecomar |
In June 2023, the Group and SOCATRA entered into a joint venture, 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 March 2024 USD’000 | As at 31 December 2023 USD’000 | |||||||
| Percentage ownership interest | 50% | 50% | ||||||
| Non-current assets | 36,237 | 31,873 | ||||||
| Non-current liabilities | (36,773 | ) | (31,849 | ) | ||||
| Net (liabilities)/assets (100%) | (536 | ) | 24 | |||||
| Group’s share of net (liabilities)/assets (50%) | (268 | ) | 12 | |||||
| Unrecognised share of losses | 268 | — | ||||||
| Carrying amount of interest in joint venture | — | 12 | ||||||
| Other income | 2 | 1 | ||||||
| Expenses | (560 | ) | (87 | ) | ||||
| Loss and total comprehensive loss (100%) | (558 | ) | (86 | ) | ||||
| Loss and total comprehensive loss (50%) | (280 | ) | (43 | ) | ||||
| Unrecognised share of losses | 268 | — | ||||||
| Group’s share of total comprehensive loss (50%) | (12 | ) | (43 | ) | ||||
Note 4: Joint ventures CONTINUED
| 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 25.5% 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.
As of 31 March 2024, Q-AI has commenced operations and the cost of investment as of 31 March 2024 was USD 2.2 million. The Company has been renamed to Complexio.
For the 3 months ended 31 March 2024 | LR21 USD’000 | LR12 USD’000 | MR3 USD’000 | Handy4 USD’000 | Total USD’000 | |||||||||||||||
| Revenue (Hafnia Vessels and TC Vessels) | 29,501 | 164,111 | 236,577 | 91,565 | 521,754 | |||||||||||||||
| Revenue (External Vessels in Disponent-Owner Pools) | 27,211 | 92,962 | 113,401 | 29,527 | 263,101 | |||||||||||||||
| Voyage expenses (Hafnia Vessels and TC Vessels) | (3,991 | ) | (45,125 | ) | (64,131 | ) | (29,754 | ) | (143,001 | ) | ||||||||||
| Voyage expenses (External Vessels in Disponent-Owner Pools) | (12,335 | ) | (25,469 | ) | (36,618 | ) | (9,791 | ) | (84,213 | ) | ||||||||||
| Pool distributions for External Vessels in Disponent-Owner Pools | (14,876 | ) | (67,493 | ) | (76,783 | ) | (19,736 | ) | (178,888 | ) | ||||||||||
| TCEIncome5 | 25,510 | 118,986 | 172,446 | 61,811 | 378,753 | |||||||||||||||
| Other operating income | 759 | 2,024 | 2,428 | 1,245 | 6,456 | |||||||||||||||
| Vessel operating expenses | (4,324 | ) | (17,194 | ) | (32,843 | ) | (15,268 | ) | (69,629 | ) | ||||||||||
| Technical management expenses | (345 | ) | (1,412 | ) | (2,700 | ) | (1,262 | ) | (5,719 | ) | ||||||||||
| Charter hire expenses | — | (2,185 | ) | (7,345 | ) | — | (9,530 | ) | ||||||||||||
| Adjusted EBITDA5 | 21,600 | 100,219 | 131,986 | 46,526 | 300,331 | |||||||||||||||
| Depreciation charge | (3,382 | ) | (14,958 | ) | (27,170 | ) | (8,199 | ) | (53,709 | ) | ||||||||||
| 246,622 | ||||||||||||||||||||
| Unallocated6 | (25,308 | ) | ||||||||||||||||||
| Profit before income tax | 221,314 | |||||||||||||||||||
| | |
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 | |
| 4Vessels 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 | |
| 5See Non-IFRS Measure section in Note 7. | |
| 6Including prior period adjustments for vessels that are not a part of the Group’s operating segments in the financial year ended 2024. |
Note 5: Segment Information CONTINUED
For the 3 months ended 31 March 20235 | LR21 USD’000 | LR12 USD’000 | MR3 USD’000 | Handy4 USD’000 | Chemical – Stainless USD’000 | Total USD’000 | ||||||||||||||||||
| Revenue (Hafnia Vessels and TC Vessels) | 28,267 | 158,724 | 236,807 | 99,004 | (201 | ) | 522,601 | |||||||||||||||||
| Revenue (External Vessels in Disponent-Owner Pools) | 6,156 | 50,254 | 21,427 | 16,120 | — | 93,957 | ||||||||||||||||||
| Voyage expenses (Hafnia Vessels and TC Vessels) | (6,253 | ) | (39,910 | ) | (65,584 | ) | (33,644 | ) | (18 | ) | (145,409 | ) | ||||||||||||
| Voyage expenses (External Vessels in Disponent-Owner Pools) | (2,863 | ) | (24,084 | ) | (10,444 | ) | (5,360 | ) | — | (42,751 | ) | |||||||||||||
| Pool distributions for External Vessels in Disponent-Owner Pools | (3,293 | ) | (26,170 | ) | (10,983 | ) | (10,760 | ) | — | (51,206 | ) | |||||||||||||
| TCE income5 | 22,014 | 118,814 | 171,223 | 65,360 | (219 | ) | 377,192 | |||||||||||||||||
| Other operating income | 481 | 3,723 | 3,027 | 2,172 | (705 | ) | 8,698 | |||||||||||||||||
| Vessel operating expenses | (3,688 | ) | (17,777 | ) | (28,403 | ) | (14,734 | ) | (53 | ) | (64,655 | ) | ||||||||||||
| Technical management expenses | (358 | ) | (1,774 | ) | (2,604 | ) | (1,289 | ) | — | (6,025 | ) | |||||||||||||
| Charter hire expenses | — | (2,374 | ) | (4,513 | ) | — | — | (6,887 | ) | |||||||||||||||
| Adjusted EBITDA5 | 18,449 | 100,612 | 138,730 | 51,509 | (977 | ) | 308,323 | |||||||||||||||||
| Depreciation charge | (3,388 | ) | (14,875 | ) | (25,176 | ) | (8,150 | ) | — | (51,589 | ) | |||||||||||||
| 256,734 | ||||||||||||||||||||||||
| Unallocated | 1,824 | |||||||||||||||||||||||
| Profit before income tax | 258,558 | |||||||||||||||||||||||
| | |
1Vessels between 85,000 DWT and 124,999 DWT in size and provides transportation of clean petroleum oil products. | |
2Vessels between 55,000 DWT and 84,999 DWT in size and provides transportation of clean and dirty petroleum products. | |
3Vessels 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 | |
4Vessels 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 | |
5See Non-IFRS Measure section in Note 7. |
| DWT | Year Built | Type | |||||||
| Hafnia Bering | 39,067 | Apr-15 | Handy | ||||||
| 39,067 | May-15 | Handy | |||||||
| Hafnia Malacca | 39,067 | Jul-15 | Handy | ||||||
| Hafnia Soya | 38,700 | Nov-15 | Handy | ||||||
| Hafnia Sunda | 39,067 | Sep-15 | Handy | ||||||
| Hafnia Torres | 39,067 | May-16 | Handy | ||||||
| Hafnia Kallang | 74,000 | Jan-17 | LR1 | ||||||
| 74,000 | Aug-17 | LR1 | |||||||
| Hafnia Seine | 76,580 | May-08 | LR1 | ||||||
| Hafnia Shinano | 74,998 | Oct-08 | LR1 | ||||||
| Hafnia Tagus | 74,000 | Mar-17 | LR1 | ||||||
| Hafnia Thames | 74,999 | Aug-08 | LR1 | ||||||
| Hafnia Yangtze | 74,996 | Jan-09 | LR1 | ||||||
| Hafnia Yarra | 74,000 | Jul-17 | LR1 | ||||||
| Hafnia Zambesi | 74,982 | Jan-10 | LR1 | ||||||
| Hafnia Africa | 74,539 | May-10 | LR1 | ||||||
| Hafnia Asia | 74,539 | Jun-10 | LR1 | ||||||
| Hafnia Australia | 74,539 | May-10 | LR1 | ||||||
Hafnia Hong Kong1 | 75,000 | Jan-19 | LR1 | ||||||
Hafnia Shanghai1 | 75,000 | Jan-19 | LR1 | ||||||
Hafnia Guangzhou1 | 75,000 | Jul-19 | LR1 | ||||||
Hafnia Beijing1 | 75,000 | Oct-19 | LR1 | ||||||
Sunda2 | 79,902 | Jul-19 | LR1 | ||||||
| Vessel | DWT | Year Built | Type | ||||||
Karimata2 | 79,885 | Aug-19 | LR1 | ||||||
Hafnia Shenzhen1 | 75,000 | Aug-20 | LR1 | ||||||
Hafnia Nanjing1 | 74,999 | Jan-21 | LR1 | ||||||
Kamome Victoria2 | 69,998 | May-11 | LR1 | ||||||
Peace Victoria2 | 77,378 | Oct-19 | LR1 | ||||||
| Hafnia Excelsior | 74,665 | Jan-16 | LR1 | ||||||
| Hafnia Executive | 74,431 | May-16 | LR1 | ||||||
| Hafnia Prestige | 74,997 | Nov-16 | LR1 | ||||||
| Hafnia Providence | 74,997 | Aug-16 | LR1 | ||||||
| Hafnia Pride | 74,997 | Jul-16 | LR1 | ||||||
| Hafnia Excellence | 74,613 | May-16 | LR1 | ||||||
| Hafnia Exceed | 74,665 | Feb-16 | LR1 | ||||||
| Hafnia Expedite | 74,634 | Jan-16 | LR1 | ||||||
| Hafnia Express | 74,663 | May-16 | LR1 | ||||||
| Hafnia Excel | 74,547 | Nov-15 | LR1 | ||||||
| Hafnia Precision | 74,997 | Oct-16 | LR1 | ||||||
| Hafnia Experience | 74,670 | Mar-16 | LR1 | ||||||
| Hafnia Pioneer | 81,350 | Jun-13 | LR1 | ||||||
| Hafnia Despina | 115,000 | Jan-19 | LR2 | ||||||
| Hafnia Galatea | 115,000 | Mar-19 | LR2 | ||||||
| Hafnia Larissa | 115,000 | Apr-19 | LR2 | ||||||
| BW Neso | 115,000 | Jul-19 | LR2 | ||||||
| Hafnia Thalassa | 115,000 | Sep-19 | LR2 | ||||||
| Hafnia Triton | 115,000 | Oct-19 | LR2 |
| | |
1 50% owned through the Vista Joint Venture | |
2 Time chartered in vessel |
Note 6: Fleet List CONTINUED
| Vessel | DWT | Year Built | Type | ||||||
Hafnia Languedoc1 | 115,000 | Mar-23 | LR2 | ||||||
Hafnia Larvik1 | 109,999 | Oct-23 | LR2 | ||||||
Hafnia Loire1 | 115,000 | May-23 | LR2 | ||||||
Hafnia Lillesand1 | 109,999 | Feb-24 | LR2 | ||||||
Beagle2 | 44,995 | Mar-19 | MR | ||||||
Boxer2 | 49,852 | Jun-19 | MR | ||||||
Basset2 | 49,875 | Nov-19 | MR | ||||||
Bulldog2 | 49,856 | Feb-20 | MR | ||||||
| BW Bobcat | 49,999 | Aug-14 | MR | ||||||
| Hafnia Cheetah | 49,999 | Feb-14 | MR | ||||||
| Hafnia Cougar | 49,999 | Jan-14 | MR | ||||||
| Hafnia Eagle | 49,999 | Jul-15 | MR | ||||||
| BW Egret | 49,999 | Nov-14 | MR | ||||||
| BW Falcon | 49,999 | Feb-15 | MR | ||||||
| Hafnia Hawk | 49,999 | Jun-15 | MR | ||||||
| BW Jaguar | 49,999 | Mar-14 | MR | ||||||
| BW Kestrel | 49,999 | Aug-15 | MR | ||||||
| Hafnia Leopard | 49,999 | Jan-14 | MR | ||||||
| Hafnia Lioness | 49,999 | Jan-14 | MR | ||||||
| Hafnia Lynx | 49,999 | Nov-13 | MR | ||||||
| BW Merlin | 49,999 | Sep-15 | MR | ||||||
| Hafnia Myna | 49,999 | Oct-15 | MR | ||||||
| BW Osprey | 49,999 | Oct-15 | MR | ||||||
| Hafnia Panther | 49,999 | Jun-14 | MR | ||||||
| Hafnia Petrel | 49,999 | Jan-16 | MR | ||||||
| Hafnia Puma | 49,999 | Nov-13 | MR | ||||||
| Hafnia Raven | 49,999 | Nov-15 | MR | ||||||
| Hafnia Swift | 49,999 | Jan-16 | MR | ||||||
| Hafnia Tiger | 49,999 | Mar-14 | MR | ||||||
| BW Wren | 49,999 | Mar-16 | MR | ||||||
| Hafnia Andromeda | 49,999 | May-11 | MR | ||||||
| Hafnia Ane | 49,999 | Nov-15 | MR | ||||||
| Hafnia Crux | 52,550 | Feb-12 | MR | ||||||
| Vessel | DWT | Year Built | Type | ||||||
| Hafnia Daisy | 49,999 | Aug-16 | MR | ||||||
| Hafnia Henriette | 49,999 | Jun-16 | MR | ||||||
| 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 |
| | |
1 50% owned through the Vista Joint Venture | |
2 Time chartered in vessel |
| Vessel | DWT | Year Built | Type | |||||||
| Hafnia Pegasus | 50,326 | Oct-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 Challenge2 | 49,972 | Jun-17 | MR | |||||||
Orient Innovation2 | 49,972 | Jul-17 | MR | |||||||
Yellow Stars3 | 49,999 | Jul-21 | MR | |||||||
Clearocean Milano2 | 50,485 | Oct-21 | MR | |||||||
Clearocean Ginkgo2 | 49,999 | Aug-21 | MR | |||||||
Dee4 Larch2 | 49,737 | Aug-16 | MR | |||||||
PS Stars3 | 49,999 | Jan-22 | MR | |||||||
Challenge Procyon2 | 45,996 | Apr-11 | 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 Time chartered in vessel | |
3 50% owned through the Andromeda Joint Venture |
Throughout this Quarterly financial information Q1 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 period ended 31 March 2024 and 31 March 2023.
For the 3 months ended 31 March 2024 USD’000 | For the 3 months ended 31 March 2023 USD’000 | |||||||
| Profit for the financial period | 219,571 | 256,635 | ||||||
| Income tax expense | 1,743 | 1,923 | ||||||
| Depreciation charge of property, plant and equipment | 53,793 | 51,661 | ||||||
| Amortisation of intangible assets | 336 | 332 | ||||||
| Gain on disposal of assets | — | (36,687 | ) | |||||
| Share of profit of equity-accounted investees, net of tax | (7,289 | ) | (5,822 | ) | ||||
| Interest income | (2,805 | ) | (4,909 | ) | ||||
| Interest expense | 15,827 | 29,200 | ||||||
| Capitalised financing fees written off | 1,663 | — | ||||||
| Other finance expense | 4,213 | 3,680 | ||||||
| Adjusted EBITDA | 287,052 | 296,013 | ||||||
Note 7: Non-IFRS Measures CONTINUED
Time charter equivalent (or “TCE”)
TCE (or TCE income) is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., voyage charters and time charters) under which the vessels may be employed between the periods. We define TCE income as income from time charters and voyage charters (including income from Pools, as described above) for our Hafnia Vessels and TC Vessels less voyage expenses (including fuel oil, port costs, brokers’ commissions and other voyage expenses).
We present TCE income per operating day1, a non-IFRS measure, as we believe it provides additional meaningful information in conjunction with revenues, the most directly comparable IFRS measure, because it assists management in making decisions regarding the deployment and use of our Hafnia Vessels and TC Vessels and in evaluating their financial performance. Our calculation of TCE income may not be comparable to that reported by other shipping companies.
Reconciliation of Non-IFRS measures
| (in USD’000 except operating days and TCE income per operating day) | For the 3 months ended 31 March 2024 | For the 3 months ended 31 March 2023 | ||||||
| Revenue (Hafnia Vessels and TC Vessels) | 521,792 | 522,601 | ||||||
| Revenue (External Vessels in Disponent-Owner Pools) | 263,101 | 93,957 | ||||||
| Less: Voyage expenses (Hafnia Vessels and TC Vessels) | (142,990 | ) | (145,409 | ) | ||||
| Less: Voyage expenses (External Vessels in Disponent-Owner Pools) | (84,213 | ) | (42,751 | ) | ||||
| Less: Pool distributions (External Vessels in Disponent-Owner Pools) | (178,888 | ) | (51,206 | ) | ||||
| TCE income | 378,802 | 377,192 | ||||||
| Operating days | 10,455 | 10,388 | ||||||
| TCE income per operating day | 36,230 | 36,312 | ||||||
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 March 2024 | For the 3 months ended 31 March 2023 | ||||||
| Revenue (Hafnia Vessels and TC Vessels) | 521,792 | 522,601 | ||||||
| Less: Voyage expenses (Hafnia Vessels and TC Vessels) | (142,990 | ) | (145,409 | ) | ||||
| TCE income | 378,802 | 377,192 | ||||||
| Operating days | 10,455 | 10,388 | ||||||
| TCE income per operating day | 36,230 | 36,312 | ||||||
| | |
1Operating 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. | |
Note 7: Non-IFRS Measures CONTINUED
‘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.