Hafnia profit falls sharply on weaker freight rates, lower vessel earnings

Published 27/08/2025, 07:16

Investing.com -- Hafnia Ltd. on Wednesday reported its second-quarter profit dropped to $75.3 million from $259.2 million a year earlier, as weaker freight rates and vessel earnings weighed on results.

Earnings per share decreased to $0.15 from $0.51. Revenue fell to $346.6 million from $563.1 million. 

Adjusted EBITDA declined to $134.2 million from $317.1 million. Time Charter Equivalent earnings fell to $231.2 million from $417.4 million, with the average TCE rate dropping to $24,452 per day from $36,669.

For the first half of 2025, Hafnia reported a net profit of $138.5 million, compared with $478.8 million in the same period last year. 

Earnings per share fell to $0.28 from $0.94. Revenue declined to $686.9 million from $1.08 billion. Adjusted EBITDA dropped to $259.3 million from $604.1 million.

The chemical tanker operator declared a second-quarter dividend of $0.1210 per share, equal to a payout of $60.3 million. 

The dividend compared with $0.20 per share a year earlier. The ex-dividend date for shares traded in Oslo will be Sept. 3, with payment on or about Sept. 15. 

For shares registered in the Depository Trust Company, the ex-dividend date will be Sept. 4, with payment on or about Sept. 10.

Hafnia said 75% of its third-quarter earning days were covered as of Aug. 15 at $25,395 per day. Coverage for the remainder of 2025 stood at 48% at $25,158 per day.

At the end of the second quarter, the company’s fleet included 117 owned vessels and nine chartered-in vessels, with a combined estimated broker value of $3.7 billion.

Net asset value was about $3.3 billion, translating to $6.55 per share. The company’s net loan-to-value ratio remained at 24.1%.

During the quarter, Hafnia took delivery of the Ecomar Guyenne, the second vessel in its dual-fuel methanol MR newbuild program, and in July received the third vessel, Ecomar Garonne. 

The company also launched its bunker joint venture with Cargill, Seascale Energy, in mid-May.

In July, Hafnia secured a $715 million revolving credit facility with 11 banks, partially used to refinance existing debt.

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