SINGAPORE – Hafnia Limited (NYSE:HAFN), a leading tanker owner, announced its financial results for the first quarter ended March 31, 2024, with earnings per share (EPS) falling slightly short of analyst expectations.
The company reported a Q1 EPS of $0.43, which was $0.01 below the analyst estimate of $0.44. Despite the earnings miss, Hafnia’s revenue for the quarter was robust, coming in at $521.8 million, significantly surpassing the consensus estimate of $390.28 million.
The company’s stock experienced a 2.6% decline following the earnings release.
Hafnia’s net profit for the quarter stood at $219.6 million, a decrease from the $256.6 million reported in the same quarter of the previous year. The Time Charter Equivalent (TCE) earnings were $378.8 million, resulting in an average TCE of $36,230 per day, which was relatively stable compared to $377.2 million and an average of $36,312 per day in Q1 2023.
Mikael Skov, CEO of Hafnia, commented on the results, highlighting the continued strength of the product tanker market into 2024, driven by rerouted vessels on longer voyages. Skov expressed pride in the company’s net profit and the performance of the pool and bunkering business, which contributed $9.8 million to the overall results. He also noted the negative TCE adjustment of $7.2 million due to IFRS 15 load-to-discharge adjustments.
Looking ahead, Skov provided a positive outlook for the rest of 2024, citing refinery dislocations and minimal growth in tanker supply as supportive factors. As of May 10, 2024, Hafnia has secured coverage for 68% of the earning days in the second quarter, averaging $37,896 per day, and 32% coverage at $33,901 per day for the entire year.
Hafnia’s adjusted EBITDA was $287.1 million for the quarter, a slight decrease from $296.0 million YoY. The company’s net asset value (NAV) stands at approximately $4.3 billion by the end of the quarter, with a NAV per share of around $8.37. The company achieved a significant milestone by listing its common shares on the New York Stock Exchange, which Skov believes will expand the investor base and offer direct exposure to Hafnia’s strong commercial performance.
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