HAFNIA LIMITED "The first six months of 2020 have been among the most extreme periods in the product tanker space, and I am pleased thatHafnia delivered the best quarterly result in our company's history. However, due to Covid-19, we are now all living with confinement restrictions, leading to unprecedented demand destruction and weak economic fundamentals. This negatively impacts our short to medium-term market outlook. We are very proud of establishing the Hafnia Specialized pool, adding an additional pillar to our successful pool management business. In addition, we have invested together with a strategic joint venture partner in a methanol project, exemplifying our strategy to look at sustainable and modern shipping technologies. Finally, I would like to thank all employees, both at sea and ashore, for their extraordinary efforts during these challenging times, and stress that the priority forHafnia will always be the health and safety of our employees. In Q2 we achieved a net profit ofUSD 97.7 million and will pay a total dividend ofUSD 38.6 million . Our net profit for the first six months amounted toUSD 174.8 million with a total dividend ofUSD 77.2 million ." -Mikael Skov , CEOHafnia Financial - Q2 Time Charter Equivalent (TCE) earnings forHafnia Limited (the "Company" or "Hafnia ", together with its subsidiaries, the "Group") wereUSD 206.9 million in Q2 2020 (Q2 2019: 118.0 million). EBITDA wasUSD 145.9 million in Q2 2020 (Q2 2019: 59.0 million). In Q2 2020,Hafnia achieved a net profit ofUSD 97.7 million and earnings per share ofUSD 0.27 per share (Q2 2019: 12.0 million and earnings per share ofUSD 0.03 per share). The commercially managed pool business generated an income ofUSD 7.1 million .Hafnia arranged for five-year unsecured interest rate swap lines to further manage its cashflow interest rate risks. InJune 2020 , an interest rate swap ofUSD 75.0 million notional amount was executed. The swap tenor is for five years and swap rate is 0.4705%. As ofAugust 14 , 63% of total earning days of the fleet were covered for Q3 atUSD 14,053 per day. Cash flow breakeven wasUSD 13,402 per day in the quarter. Financial - H1 Time Charter Equivalent (TCE) earnings forHafnia Limited (the "Company" or "Hafnia ", together with its subsidiaries, the "Group") wereUSD 400.4 million in H1 2020 (H1 2019: 250.6 million). EBITDA wasUSD 275.5 million in H1 2020 (H1 2019: 133.0 million). In H1 2020,Hafnia achieved a net profit ofUSD 174.8 million and earnings per share ofUSD 0.48 per share (H1 2019: net profit of 39.9 million and earnings per share ofUSD 0.12 per share). The commercially managed pool business generated an income ofUSD 13.0 million . Fleet At the end of the quarter,Hafnia had 87 owned vessels1 and 15 chartered-in vessels. The total fleet of the Group comprises six LR2s, 36 LR1s1 (including six bareboat-chartered in and three time-chartered in), 47 MRs (including six time-chartered in) and 13 Handy vessels owned/operated. InAugust 2020 , Hafnia Shenzhen, a LR1 newbuild under the Vista Joint Venture, was delivered. Hafnia America, a 2006 built LR1 vessel, was sold forUSD 11.6 million net in Q3 2020. The average estimated broker value of the owned fleet wasUSD 2,174 million , of which the LR2 vessels had a broker value ofUSD 310 million , the LR1 fleet had a broker value ofUSD 553 million2, the MR fleet had a broker value ofUSD 1,082 million , and the Handy vessels had a broker value ofUSD 230 million . The fleet chartered-in had a right-of-use asset book value ofUSD 128.6 million with a corresponding lease liability ofUSD 135.2 million . The fleet has been in full compliance with the new IMO 2020 regulations using low sulphur fuel oil as ofJanuary 1, 2020 .Hafnia have in Q3, via a joint venture with a strategic partner, investedUSD 10 million for 3.33% of a pre-FID methanol project, converting regionally sourced natural gas to methanol with a 3.6 million tonnes per annum production capacity of which the JV will be transporting one-third of the methanol produced on 19-years contracts. In addition to investing in the methanol plant, the JV will be building the vessels transporting their share of the methanol.Hafnia will pay a quarterly dividend ofUSD 0.1062 per share. Record date will beSeptember 3 with ex. dividend date ofSeptember 2 and payment onSeptember 17 . Please see separate announcement for dividend. Conference callHafnia will host a conference call for investors and financial analysts at8:00 pm SGT/2:00 pm CET /8:00 am EST . Please dial +65 67135330 (Singapore ), +47 80010246 (Norway ) or +1 8447600770 and use Conference ID: 8178436 ContactHafnia Mikael Skov , CEOHafnia : +65 6971 8001 www.hafniabw.com
Click here for more information
© Oslo Bors ASA, source
