Hafnia Limited

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Welcome to Hafnir's fourth quarter 2025 financial results presentation. We will begin shortly. You'll be brought through today's presentation by Hafnir's CEO, Michael Skov, CFO, Perry van Egtelt, Soren Winter, VP Commercial, and Thomas Anderson, EVP, Head of Investor Relations. They will be pleased to address any questions after the presentation. Should you have any questions you can submit them via the chat function or use the raise hand function to be unmuted to ask your question verbally. Questions will be answered at the end of the presentation. You will receive further instructions as required. During this conference call, some statements may be considered forward-looking, reflecting management's current expectations. These statements involve risks, uncertainties, and other factors, many of which are beyond Hafnir's control, that could cause actual results, performance, or plans to differ significantly from those expressed or implied. Additionally, this conference call does not constitute an offer or solicitation to buy or sell any securities. With that, I'm pleased to turn the call over to Hafnir's CEO, Michael Skov.

Thank you and hello everyone. Thanks for joining Hafnir's fourth quarter earnings call. I'm Michael Skoll, the CEO of Hafnir. With me today are our CFO, Perifern Echtelt, our VP of Commercial, Søren Vinter, and our Head of Investor Relations, Thomas Andersen. We released our fourth quarter and full year 2025 results earlier today, and you can find them on our website. On today's call, we'll walk you through our Q4 highlights, the latest market developments, and our outlook, and then give an update on our financial position. We'll also touch on our sustainability initiatives before opening for questions. Let's move to the next slide. Before we proceed, I would like to go through our safe harbour statement. Information discussed on this call is based on the information we have today, which may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from these statements. Nothing presented on this call should be construed as an offer to buy or sell securities. Thank you for your attention. With that, let's begin with a review of our results for the quarter. Next slide, please. So we now slide number four. The product anchor market started 2025 on a softer note, but strengthened through the second half and remained seasonally firm in the fourth quarter. This helped us close the year on a strong footing. In Q4, we delivered our strongest quarter of 2025 with a net profit of $109.7 million. For the full year, that brings us to a net profit of $339.7 million, another year of solid performance. As part of our fleet renewal strategy, we continue divesting older vessels at attractive prices. So far in Q1, we've sold two MR vessels and committed to sell two more MRs, four LR1s, and four Hentis. During the quarter, we also took delivery of the Ecomar ShareOmt, the fourth and final dual-fuel IMO2 MR in our Ecomar joint venture. In December, we acquired 13.97% of TORM shares from Oak Tree. Since then, we've engaged with TORM stakeholders, including its board, to explore the merits of a potential combination. We see a strong strategic rationale with commercial, operational and financial benefits for shareholders, as well as enhanced market presence and trading liquidity. In our view, a combined platform would create a clear market leader in scale and performance within the shipping industry. Let's move to the next slide. Next, I'd like to highlight Hafnir's key investment attributes. We are global leader in the product and chemical tanker space, operating one of the largest and most diversified fleets in the industry. At the end of Q4, we owned or chartered in 123 vessels with an average age of 9.7 years, well below the industry average of 14.1 years. As we continue to sell older tonnage, our fleet will become even younger, more efficient, and better positioned for stronger earnings, as well as significant savings on global carbon taxes in the future, which are aimed at penalizing older vessels with large fuel oil consumption. Quarter end, our net asset value was about $3.5 billion, which translates to $7.04 per share, or 70.79 Norwegian kroner. Beyond our own fleet, we also operate around 65 third-party vessels across eight pools. These contributed roughly $30 million in earnings for the full year of 2025. Let's move to the next slide. Another key investment attribute for Hafnir is our transparent dividend policy. We've now paid dividends for 16 consecutive quarters, and our goal is to keep them sustainable and predictable through the cycle. At the end of the fourth quarter, our net LTV stood at 24.9%, and in line with our policy, this means we are declaring an 80% payout ratio for Q4. That results in a total cash dividend of $87.7 million, or 17.62 cents per share. For shareholders receiving dividends in Norwegian kroner, the exchange rate will be based on the value date two business days before payment. For the full year 2025, that brings total dividends to $271.7 million, or 55.57 cents per share, representing a yield at about 10%. When we include the share buybacks completed in 2025, we returned 88.1% of our net profit to shareholders. We now slide number seven. Our strong performance is further demonstrated. Across different time periods, our total shareholder return shows that we have consistently delivered superior returns. At the same time, when we benchmark our cost base against our closest peers, we are pleased with our positioning, which allows us to operate at highly competitive levels while supporting sustainable value creation, and also one of the main reasons why we see substantial value in consolidation in our sector. Next slide, please. Søren Vinter, our VP of Commercial, will now share the industry review and market outlook.