Hafnia reported its strongest quarterly result since the third quarter of 2022 as elevated product-tanker rates drove a sharp increase in earnings, strengthened the balance sheet, and allowed the company to move to the highest payout threshold under its dividend policy.
Second-quarter 2026 net profit reached $277.8 million, or $0.56 per share, compared with $75.3 million, or $0.15 per share, in the prior-year period. That represents an approximately 269% year-over-year increase in quarterly profit.
Time Charter Equivalent earnings increased 61% to $372.9 million from $231.2 million.
Average fleet TCE reached $44,093 per day, while adjusted EBITDA more than doubled to $287.3 million from $134.2 million, representing growth of approximately 114%.
Fee-based businesses contributed another $8.8 million of earnings, compared with $7.9 million a year earlier.
The results benefited from a strong product-tanker market, supported by ongoing disruptions to global oil trade.
Management said restrictions involving the Persian Gulf and alternative shipping routes have fragmented global flows and lengthened voyages. Despite the strong quarter, Hafnia also absorbed approximately 392 off-hire vessel days associated with scheduled drydockings.
Hafnia’s first-half results showed similar earnings acceleration.
Net profit for the first six months reached $457.5 million, or $0.92 per share, compared with $138.5 million, or $0.28 per share, in the prior-year period.
First-half TCE earnings increased to $655.4 million from $449.9 million, while adjusted EBITDA rose to $486 million from $259.3 million.
The earnings strength also translated into significant balance-sheet improvement.
Net asset value reached approximately $4.4 billion at quarter-end, up approximately $400 million from the first quarter. NAV was equivalent to approximately $8.89 per share.
Hafnia attributed the increase to higher vessel values across its segments and lower debt levels.
Net loan-to-value declined sharply to 13% from 20.2% in Q1, reflecting cash generation from operations and vessel sales.
That balance-sheet improvement triggered the highest payout level available under Hafnia’s dividend framework.
The company will distribute $250 million, or $0.5003 per share, representing a 90% payout ratio.
Management said the dividends announced for the first half imply an annualized dividend yield of approximately 21%.
Hafnia also continued reshaping its fleet.
During Q2, the company completed the sale of one LR1 vessel, two MR vessels and three Handy vessels. Net profit included $39.3 million of vessel-sale gains.
Hafnia subsequently sold its 50% interest in two MR vessels held through the H&A Shipping joint venture, generating an additional $13.3 million profit.
Its 13.97% investment in TORM had a market value of approximately $369 million at quarter-end and generated another $9.9 million of dividend income during Q2.
Hafnia already had 80% of Q3 earning days covered at $30,716 per day as of August 17, while 53% of second-half earning days were covered at an average $28,917 per day.
The quarter therefore combined a nearly fourfold increase in profit, more than doubled adjusted EBITDA, rising vessel values and substantially lower leverage.
Most importantly for shareholders, the decline in net LTV below 20% converted those financial gains into a 90% quarterly payout.
KEY QUOTES:
“Against this backdrop, Hafnia delivered the strongest quarterly result since Q3 2022.”
“With our net LTV below 20%, we have reached the highest payout threshold under our dividend policy.”
Mikael Skov, Chief Executive Officer of Hafnia
