CEO Statement The strength of the product tanker market continued into 2024 from 2023 due to vessels being rerouted on longer voyages via the Cape of Good Hope to bypass disruptions in theRed Sea , resulting in higher spot rates across all segments compared to the previous quarter. I am proud to share thatHafnia achieved a net profit ofUSD 219.6 million in our first quarter, demonstrated by our active management approach, modern fleet, and strong presence in the spot market. Our pool and bunkering business also performed well, contributingUSD 9.8 million to our overall results. The IFRS 15 load-to-discharge adjustment has resulted in a negative TCE adjustment ofUSD 7.2 million . With a diversified and modern fleet of over 130 modern vessels and increasing asset values, our net asset value (NAV) stands at approximatelyUSD 4.3 billion by the end of the quarter, translating to a NAV per share of aroundUSD 8.37 (~NOK 90.35 ). This includes that we hold purchase options for eight chartered-in vessels, valued at approximatelyUSD 120 million , enabling us to capitalise on asset value appreciation. We achieved a significant milestone onApril 9, 2024 by listing our common shares on theNew York Stock Exchange (NYSE) under the ticker 'HAFN', complementing our existing listing on theOslo Stock Exchange (OSE). This dual listing expands our investor base, offering direct exposure in the US markets to our strong commercial performance and track record of shareholder returns. On the same day, we announced that we're raising our dividend payout ratio from 70% to 80% when our net loan-to-value is between 20% and 30%. Additionally, when our net loan-to-value falls below 20%, we will raise this further to 90% from the previous 80%. This shows our dedication to providing solid returns to shareholders while also managing our finances responsibly. At the close of the quarter, our net loan-to-value stood at 24.2% and I am pleased to announce a dividend payout ratio of 80%, translating to a dividend ofUSD 175.7 million orUSD 0.3443 per share. This marks the highest dividendHafnia has ever made and holds potential for further growth as we continue strengthening our balance sheet. In the first quarter, the product tanker market was significantly impacted by events in theRed Sea , causing vessels to take longer routes. Looking ahead to the rest of 2024, the outlook remains positive. This is mainly due to refinery dislocations and ramp-ups expected in theMiddle East , alongside minimal growth in tanker supply. Firm oil demand, particularly fromChina andIndia , also contributes to this positive outlook. As ofMay 10, 2024 , we've secured coverage for 68% of the earning days in Q2, averagingUSD 37,896 per day, and 32% coverage atUSD 33,901 per day for the entire 2024. -Mikael Skov , CEOHafnia
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