Hafnia's Dividend Signals Strength in Volatile Shipping Market

SINGAPORE – December 01, 2025 – Global tanker owner Hafnia Limited has affirmed its financial health and commitment to shareholders, announcing a significant cash dividend of USD 0.1470 per share for the third quarter of 2025. The declaration, which follows the release of strong quarterly results, underscores the company's resilience in a dynamic global shipping environment and marks its fifteenth consecutive quarterly dividend payment.

This latest payout is a direct result of a robust financial performance that saw the company navigate operational headwinds to deliver its best quarter of the year. For investors, the move not only provides a tangible return but also offers a window into the strategic financial management that allows Hafnia to reward shareholders while strengthening its balance sheet.

Decoding the Financials: A Profitable Quarter

The foundation for the dividend is a third quarter that exceeded analyst expectations. Hafnia posted a net profit of USD 91.5 million, or USD 0.18 per share, on Time Charter Equivalent (TCE) earnings of USD 247.0 million. While these figures are down from the exceptional highs of the same period in 2024, they demonstrate sustained profitability in a complex market.

A key metric highlighting the company's fiscal discipline is its Net Loan-to-Value (LTV) ratio, which improved significantly from 24.1% in the second quarter to 20.5%. This reduction was driven by strong operational cash flows and a strategic repurchase of approximately USD 100 million in vessels under sale-and-leaseback financing. The strengthened balance sheet was instrumental in determining the dividend amount. Hafnia's tiered dividend policy directly links its payout ratio to its LTV. By bringing the LTV below the 30% threshold, the company triggered an 80% payout ratio of its net profit, a substantial increase from the 50% or 60% ratios applied at higher leverage levels.

This performance was achieved despite notable operational challenges. The company experienced around 740 off-hire days, approximately 230 days more than anticipated, primarily due to dry dock delays and specialized cargo tank recoating on two vessels. However, the company's ability to generate an adjusted EBITDA of USD 150.5 million and a positive free cash flow of USD 100.0 million in the face of these hurdles speaks to its operational resilience and strong underlying market conditions.

Riding the Waves of the Global Tanker Market

Hafnia's success is not happening in a vacuum. It is deeply intertwined with the favorable, and somewhat countercyclical, conditions in the product tanker market. After a soft start to 2025, the market demonstrated unseasonal strength throughout the third quarter, driven by a convergence of powerful supply and demand factors.

On the supply side, the market remains tight. The global orderbook-to-fleet ratio for product tankers declined to about 18% as of November, indicating limited new vessel deliveries on the horizon. This scarcity is compounded by the re-designation of some Long Range (LR) tankers to the dirty petroleum trade and a sharp increase in the number of sanctioned vessels, which has effectively removed over 400 tankers from mainstream commercial availability this year. Furthermore, a robust crude tanker market has reduced the number of crude vessels competing for clean product cargoes, further tightening available tonnage and supporting freight rates.

Demand, meanwhile, remains buoyant. Clean petroleum product volumes on the water have consistently tracked above the four-year average throughout 2025. Increased trading activity and longer tonne-mile voyages, particularly from expanding refinery capacity in the Middle East, have kept vessels employed on more lucrative routes. This structural shift, combined with the market inefficiencies created by ongoing geopolitical tensions and sanctions, has created a fertile earnings environment.

Looking ahead, Hafnia is well-positioned for what is traditionally the market's strongest period. The company has already secured coverage for 71% of its total earning days for the fourth quarter of 2025 at an average rate of USD 25,610 per day, signaling confidence in continued market strength through the winter months.

The Investor's Compass: Navigating a Dual Listing

For shareholders, the dividend announcement comes with logistical details that differ based on where their shares are held. As a company dual-listed on the New York Stock Exchange (NYSE: HAFN) and the Euronext VPS in Oslo (OSE: HAFNI), Hafnia has set distinct timelines to accommodate different settlement systems.

Investors holding shares through the Depository Trust Company (DTC) on the NYSE will see a last trading day to be eligible for the dividend on December 8, 2025, with an ex-dividend date of December 9. Their cash payment in USD is scheduled for on or about December 16, 2025.

In contrast, those with shares registered in the Euronext VPS system in Oslo have an earlier ex-dividend date of December 8, with the last day of trading inclusive of the dividend on December 5. Their payment, scheduled for on or about December 19, will be distributed in Norwegian Kroner (NOK). The final NOK amount will be determined by the USD-to-NOK exchange rate two business days prior to the payment date, introducing a currency consideration for these shareholders.

Initial market sentiment was mixed. Despite beating revenue and earnings-per-share consensus estimates, the company's stock saw a slight dip in pre-market trading following the announcement. Analysts, however, remain focused on the strong fundamentals, highlighting Hafnia's impressive liquidity position of over USD 630 million and its prudent fleet management. The company's strategic moves, such as the recently announced acquisition of a 14.45% stake in fellow tanker owner TORM, are also viewed as proactive steps to consolidate its position and pursue growth in a consolidating industry.