Hafnia Limited demonstrated robust financial health in the second quarter of 2025, achieving a net profit of $75.3 million. This performance highlights the company's resilience and commitment to its shareholders, as it continued to distribute 80% of its earnings as dividends, a testament to its unwavering dividend policy even when market rates experienced a softening. This steadfast approach provides a clear indication of management's confidence in the company's long-term stability and profitability.
A key strategic move that underpinned this strong financial position was the successful refinancing of $715 million. This initiative significantly bolstered Hafnia's liquidity and effectively lowered its cash breakeven point. As a result, the company now benefits from approximately $600 million in undrawn capacity, enhancing its financial flexibility. Furthermore, the Net Loan-to-Value (LTV) ratio remained stable at a healthy 24.1%, showcasing prudent financial management and a well-controlled balance sheet. The operational efficiency of Hafnia's fleet also remained a strong point, with its LR2 vessels achieving an impressive Time Charter Equivalent (TCE) of $38,241 per day, while MR vessels performed commendably at $22,967 per day. Both segments maintained competitive operating expenses, with LR2 at $8,299 and MR at $8,085, respectively, which is crucial for sustaining margins across various market conditions.
Looking ahead, Hafnia has already secured a substantial portion of its future revenue, with 75% of Q3 days covered at an average rate of $25,395 per day and 48% of the second half of the year covered at $25,158 per day. This proactive chartering strategy provides excellent cash flow visibility and predictability, reinforcing the company's ability to maintain its attractive dividend yield and low valuation multiples. These forward bookings are critical in mitigating market volatility and ensuring consistent returns for investors, solidifying Hafnia's position as a reliable and financially sound entity in the shipping industry.
Hafnia's consistent performance and strategic financial management underscore the importance of disciplined decision-making in navigating dynamic markets. The company's ability to maintain profitability, ensure liquidity, and secure future revenue streams reflects a commitment to long-term value creation. Such steadfastness in strategy and operations serves as a beacon, guiding stakeholders through uncertainties with confidence and fostering a strong foundation for sustained growth and prosperity.