Key Highlights

● Second-quarter net profit rose to $277.8 million from $75.3 million a year earlier.

● Time charter equivalent income rose to $372.9 million from $231.2 million.

● The board approved a $250.0 million dividend, a 90 per cent payout ratio.

● Net loan-to-value fell to 13.0 per cent from 20.2 per cent in the first quarter.

Hafnia Limited (NYSE:HAFN) owns and operates product tankers, vessels that carry refined petroleum products such as diesel, gasoline and jet fuel. At 30 June 2026 it owned 103 vessels, comprising 10 LR2s, 28 LR1s, 54 MRs and 20 Handy-size ships, and had a further nine on time charter. Including commercially managed vessels, the group operates around 180 ships. Its shares trade on the NYSE under HAFN and on the Oslo Stock Exchange under HAFNI. The company also holds a 13.97% stake in fellow tanker owner TORM, valued at $369.0 million at quarter-end. Earnings in the sector depend heavily on freight rates, which can move sharply with trade flows, refinery output and geopolitical disruption, making results more volatile than those of many industrial companies in a broad benchmark such as the NYSE Composite. The fleet spans several vessel sizes, which gives the company flexibility to serve different routes and cargo types.

Second-quarter 2026 results

Hafnia announced results for the quarter ended 30 June 2026 on 28 August 2026. Net profit was $277.8 million, or $0.56 per share, compared with $75.3 million, or $0.15 per share, in the second quarter of 2025. Time charter equivalent income rose to $372.9 million from $231.2 million, and adjusted EBITDA was $287.3 million against $134.2 million. The company reported average TCE earnings of $44,093 per operating day, though its reconciliation table shows $43,891 on a different basis. A gain on vessel sales of $39.3 million contributed to the quarter. Management attributed the stronger market to disruption linked to the Persian Gulf conflict, saying conditions had not yet normalised six months after it began and that the Strait of Hormuz had effectively closed again in early July after a short partial reopening. Fee-based business earnings were $8.8 million, excluding TORM dividend income of $9.9 million.

Dividend, leverage and forward cover

The board approved a dividend of $250.0 million, or $0.5003 per share, representing a 90% payout ratio, with a record date of 8 September 2026. Net loan-to-value fell to 13.0% from 20.2% in the first quarter, and cash stood at $271.0 million. Net asset value was approximately $4.4 billion, or $8.89 per share, on management's broker-value basis. For the third quarter, 80% of earning days were covered at $30,716 per day as of 17 August 2026, and 53% of second-half days at $28,917. Those figures sit well below the second-quarter average, which is a reminder that cover reflects rates fixed earlier. Management expects about 225 off-hire days in the third quarter after roughly 392 in the second, owing to scheduled drydockings. No formal financial guidance was given. Total equity was $2,650.0 million. From 2027 the company will calculate net loan-to-value on a fully committed basis, including newbuild commitments, which should make leverage reporting more conservative.

Forward Cover Points to a Softer Third Quarter

Hafnia's results were lifted by Persian Gulf conflict disruption that management says has not yet normalised six months on, with the Strait of Hormuz effectively closing again in early July after a brief reopening. Third-quarter forward cover of $30,716 per day on 80 per cent of earning days sits well below the second-quarter average rate, a sign that booked rates have already cooled, and with management citing a possible 2027 supply overhang as Gulf output recovers, the current payout, now at the highest threshold under its leverage-linked dividend policy, could fall as readily as it rose.