Presentation

Hafnia was established in 2014 but became the company we know today when it merged with BW Tankers in 2019. The combined entity has one of the world’s largest product tanker fleets and runs several pools for well-known companies. Hafnia is listed on the Oslo Stock Exchange and has a market capitalization of USD 680m, with net debt of USD 1.2bn as of Q2’20. The company is backed by its majority owner BW Group which controls two-thirds of the shares outstanding.

Hafnia operates a total fleet of 176 vessels, of which 81 are owned by the company, 15 are chartered in and 80 are pool vessels. The owned fleet consists of 29 LRs (plus nine vessels chartered in), 41 MRs (in addition to six vessels chartered in) and 13 handysize product tankers. The company also runs three commercial tanker pools; for handysize vessels (25), MR vessels (64) and LR vessels (85 including two newbuilds).

After rates soared to highs not seen in a long time during Q2 (LR1s and LR2s topped out above USD 100,000/day and USD 160,000/day, respectively), they have now come down to 5Y lows. While we acknowledge the medium-term uncertainty for product tankers, we have seen promising Q3 guidance and a decent trend in spot rates recently. Hafnia continued to pay healthy dividends after the solid Q2 report, and having thus distributed USD 0.21 per share YTD, we expect another USD 0.1 to be paid out for the second half of the year - as the company stays true to its '50% of net profit' policy.