Strong Profitability and Income Growth
Net profit of $179.7M in Q1 2026, nearly 3x Q1 2025; TCE income $282.5M (up from $218.8M, +~29%); Adjusted EBITDA $198.6M (up from $125.1M, +~59%).
Hafnia
· HAFN
May 27th, 2026
Summary
- Earnings Call Date:
- 2026-05-27
- Change Since:
- -4.13%
- Next Earnings Date:
- 2026-08-28
Earnings Call Sentiment
PositiveThe call presents a strongly positive near-term operating and financial performance — triple-year-on-year net profit, robust TCE/EBITDA growth, improved NAV and balance sheet metrics, strong dividend policy and high forward coverage. These positives are set against significant macro and operational headwinds driven by unprecedented geopolitical disruption (Strait of Hormuz closure), regional refinery outages, temporary demand uncertainty, and meaningful CapEx/newbuild timing risk. On balance, company-specific strengths (earnings, liquidity, fleet renewal plans and shareholder returns) outweigh the external lowlights, though the outlook retains elevated uncertainty tied to geopolitics and market rebalancing.
Company Guidance
Management guided to a stronger Q2 and a constructive 2026, citing 73% of Q2 earning days covered at $46,600/day and 39% of Q2–Q4 days covered at $38,281/day (as of May 13) and giving a full‑year 2026 net income scenario of $700M–$1B; Q2 is expected to be significantly stronger than Q1. That outlook is supported by Q1 results (net profit $179.7M, TCE income $282.5M vs $218.8M a year ago, adjusted EBITDA $198.6M vs $125.1M, fleet‑wide average TCE $30,327/day and spot $31,543/day), a 118‑vessel fleet (avg age 9.6 years), NAV ≈$4.0B ($8.09/share), improved net LTV 20.2% (from 24.9%), net debt down to $797M (from $932M), liquidity ≈$660M ($146M cash + $550M undrawn), annualized ROE 29.5% and ROIC 22.7%, expected Q2 CapEx ≈$80M for the 10‑MR newbuild program (deliveries Q3 2028–Q2 2029), and a declared 80% payout dividend of $143.8M ($0.2877/share, 14% annualized yield) while winding down Handy/LR2 pools and shifting much of the fleet to time charter.
High Returns on Capital
Annualized return on equity of 29.5% and return on invested capital of 22.7% for Q1 — highest levels in the trailing five quarters.
Improved Balance Sheet and Liquidity
Net debt reduced from $932M to $797M (reduction of $135M, ~14.5%); net LTV improved to 20.2% from 24.9% (improvement of 4.7 percentage points); total liquidity ~ $660M ($146M cash + $550M undrawn facilities).
Shareholder Returns and Dividend
Declared 80% payout ratio translating to $143.8M ($0.2877/share) for the quarter; annualized yield ~14%; cumulative dividends over last 4 quarters $365.3M; 12-month total shareholder return >100%.
Strong Forward Coverage and Dayrates
73% of Q2 earning days covered at $46,600/day; Q2–Q4 (as of May 13) 39% of earning days covered at $38,281/day; fleet-wide average TCE $30,327/day and average spot $31,543/day — well above operational breakeven.
Fleet Renewal and Modernization
Owned and chartered fleet of 118 vessels with average age 9.6 years; signed contracts for 8 MR newbuilds with Hyundai and exercised 2 additional options (total 10 MRs) for delivery 2028–2029 — supporting lower average age and long-term earnings capacity.
Asset Sales and One-off Gains
Realized $32.5M in gains on vessel sales in the quarter and have continued divestment of older tonnage as part of fleet renewal strategy.
Resilient Market Exposure and Structural Support
Company benefits from structural tanker tightness: LR2→Aframax migration (72 LR2s migrated, ~28% decline in clean LR2 availability) and elevated tonne-miles, supporting multi-quarter inventory rebuild narratives and freight resilience.
Operator
Welcome to Hafnia's First Quarter 2026 Financial Results Presentation. We will begin shortly. You will be brought through today's presentation by Hafnia's CEO, Michael Skov; CFO, Perry Van Echtelt; Soren Winter, VP, Commercial; and Thomas Anderson, EVP, Head of Investor Relations. They will be pleased to address any questions after the presentation. [Operator Instructions] During this conference call, some statements may be considered forward-looking, reflecting management's current expectations. These statements involve risks, uncertainties and other factors, many of which are beyond Hafnia's control that could cause actual results, performance or plans to differ significantly from those expressed or implied. Additionally, this conference call does not constitute an offer or solicitation to buy or sell any securities. With that, I'm pleased to turn the call over to Hat and CEO, Michael Scott.
Mikael Opstun Skov
Thank you, and hello, everyone and thanks for joining Hafner's First Quarter 2026 Earnings Call. I'm Michael Skol, CEO of Haffner. With me today are our CFO, Perianaktelt, our VP of Commercial, SonWinter, and our Head of Investor Relations, Thomas Anderson. We released our first quarter 2026 results earlier today, and you can find them on our website. On today's call, we will cover our Q1 highlights the latest market developments, including the significant geopolitical disruptions that have shaped the quarter and then give an update on our financial position. We will also talk on our sustainability initiatives before concluding the presentation. Let's move to the next slide. Before we...
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