Hafnia Limited reported third‑quarter 2025 results that included a net profit of $91.5 million and revenue of $366.5 million, giving an earnings‑per‑share figure of $0.18. The company beat consensus EPS of $0.16 and outperformed revenue expectations of $253.5 million, underscoring strong demand for clean petroleum products and effective cost control.
The quarter’s performance, however, reflected a sharp year‑over‑year decline. Net profit fell 58% from $215.6 million in Q3 2024, and Time Charter Equivalent (TCE) income dropped 31% to $247.0 million from $361.6 million. Adjusted EBITDA also slipped 41% to $150.5 million versus $257.0 million a year earlier. The downturn is largely attributable to a 740‑day off‑hire period—230 days above expectations—caused by scheduled dry‑dock and special‑cargo tank recoating, which compressed operating days and reduced charter rates.
Off‑hire activity had a direct impact on the company’s operating efficiency. The 740 off‑hire days, driven by maintenance and regulatory compliance, reduced the number of days available for revenue generation. While the company’s average TCE per operating day rose to $26,040 (up from $24,785 reported in the original article), the overall TCE income fell because the higher average was offset by the large volume of downtime.
Hafnia’s dividend policy is closely tied to its loan‑to‑value (LTV) ratio. With an LTV of 20.5%—within the 20‑30% band that triggers an 80% payout ratio—the company declared a dividend of $0.1470 per share for Q3. This payout aligns with the company’s strategy of balancing shareholder returns with continued deleveraging.
Management provided forward guidance that signals cautious optimism. Hafnia expects 440 off‑hire days in Q4, a reduction from the 740 days in Q3, which should improve operational efficiency. The company also highlighted its ongoing acquisition of a 14.45% stake in TORM, a move aimed at consolidating market position and enhancing fleet capacity.
The market reacted with a 2.17% decline in pre‑market trading, reflecting investor focus on the year‑over‑year decline in profitability and the slight miss in adjusted EBITDA. Despite beating revenue and EPS estimates, the sharp YoY drop and the company’s guidance for a more conservative off‑hire outlook tempered enthusiasm.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.