CEO Statement
The first quarter experienced an increase in trade volumes and tonne-miles, supported by strong global demand resulting in an improved spot market. Sentiment has improved further in the second quarter, setting the stage for a robust remainder of 2025.
Our Q1 result were impacted by a significant number of vessels undergoing scheduled drydocking or repairs, leading to approximately 500 off-hire days during the quarter. Despite these operational adjustments, Hafnia demonstrated resilience by delivering a net profit of USD 63.2 million in Q1 2025. Our adjacent fee-generating pool and bunkering business continued to perform well, contributing USD 7.9 million to our overall results.
We are confident in the market, and I am pleased to announce a full cash payout ratio of 80% for the quarter. We will not deduct the USD 27.6 million utilized for share buybacks during this period when calculating our dividend.
We will distribute a total of USD 50.6 million or USD 0.1015 per share in dividends.
With a significant portion of our fleet built in 2015, we anticipate a similar level of drydocking and repairs in the second quarter, resulting in approximately 630 off-hire days in Q2.
As of May 1, 2025, 57% of the Q2 earning days are covered at an average of USD 24,839 per day, and 27% is covered at USD 24,902 per day for Q2 to Q4 2025.
At the end of the first quarter, our net asset value (NAV1) stood at approximately USD 3.4 billion, translating to an NAV per share of about USD 6.96 (NOK 73.03). Our net Loan-to-Value (LTV) ratio at the end of the first quarter was 24.1%. The decline in NAV and increase in net LTV from the previous quarter is primarily driven by a decrease in the market value of our vessels.
We continue to vigilantly monitor the evolving nature of sanctions, tariffs, and developments in the Red Sea and their collective impact on market dynamics. On the tanker supply side, ordering activity has slowed significantly. The combination of macroeconomic uncertainty, high newbuild prices, and increasing concerns around revised US regulations affecting Chinese built vessels, will likely result in a period of lower orders. With the global average fleet age increasing, this may limit fleet expansion in the upcoming years.
The upcoming months will represent important milestones for Hafnia. We look forward to welcoming Ecomar Guyenne, the second of four 49,800 dwt dual-fuel Methanol Chemical IMO-II MRs, ordered through our strategic joint venture with Socatra. At the same time, operations are expected to commence at Seascale Energy, our new joint venture with Cargill, which is one of the world’s largest bunker procurement companies. These initiatives reflect Hafnia’s commitment to a more sustainable maritime future while delivering cost efficiencies and innovative fuel solutions to our customers.
As we conclude the first quarter of 2025, and while market dynamics remain complex, I am optimistic about Hafnia’s ability to build on this positive momentum. Our proven track record of operational excellence and financial discipline positions us strongly to create long-term value. We are focused on making the right decisions daily, through disciplined capital allocation and agile fleet deployment, to ensure flexibility in capitalizing on opportunities and enhancing shareholder returns.
- Mikael Skov, CEO Hafnia