Hafnia Q1 2026 Earnings Report

Hafnia EPS Results

• Actual EPS: $0.36
• Consensus EPS: $0.30
• Beat/Miss: Beat by +$0.06
• One Year Ago EPS: N/A

Hafnia Revenue Results

• Actual Revenue: $688.87 million
• Expected Revenue: $298.65 million
• Beat/Miss: Beat by +$390.22 million
• YoY Revenue Growth: N/A

Hafnia Announcement Details

• Quarter: Q1 2026
• Date: 5/27/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 27, 2026
• Conference Call Time: 5:00AM ET

Hafnia (NYSE:HAFN) is a global maritime transportation company focused on the ownership and operation of product tankers. The company transports refined petroleum products, chemicals, and vegetable and animal oils for energy companies, commodity traders, and industrial customers.

Its activities include commercial management, chartering, vessel operations, and technical management. Hafnia operates across major international shipping routes and serves customers in key energy and commodity markets worldwide.

Hafnia is headquartered in Singapore and is part of the BW Group. The company’s shares trade on the New York Stock Exchange under the symbol HAFN and on the Oslo Stock Exchange under the symbol HAFNI.

Hafnia Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Hafnia reported a record Q1 net profit of $179.7 million and said Q2 is already tracking stronger, with management expressing confidence that the tanker market could stay firm through the year.
• Positive Sentiment: Management said geopolitical disruption in the Middle East is boosting ton-miles as refined products travel longer routes, supporting tanker demand and helping tighten the market.
• Neutral Sentiment: The company emphasized that inventory drawdowns and disrupted Middle East production could take two to three quarters to normalize even if the Strait of Hormuz reopens, potentially extending market support.
• Positive Sentiment: Hafnia said it has already covered more than 70% of Q2 at about $46,000 per day and close to 40% of the rest of the year, reducing earnings uncertainty and pointing to a strong full-year setup.
• Neutral Sentiment: The company reiterated its capital return framework, noting its 80% dividend payout policy at current leverage and saying any future share buybacks would be in addition to dividends rather than a replacement.

Presentation

[Operator]

Welcome to this presentation of Hafnia's Q1 results, just released this morning. Welcome to the CEO, Mikael Skov. It's a pleasure to have you. We have approximately 30 minutes to go through. I hope you will ask a lot of questions. Please do it in the chat. I'll make sure that they are put forward to Mikael in this brief conversation. My name is Tue Østergaard. I'll be the moderator. Just a small status, Hafnia has today a value of $4.2 billion. This year, the stock is up 43%, which is quite good. It's a pleasure to have this opportunity to go through the results, but also to look forward to all these geopolitical stuff that's going on. I hope that we can discuss that, Mikael.

[Mikael Skov, CEO at Hafnia]

Absolutely.

[Operator]

Good. Welcome. I'll control the slides, and if you have any questions, please put them forward. We will start with this agenda, a brief Q1 introduction, then, of course, into the industry review and outlook, then, of course, a financial summary. We'll put most emphasis on the industry review. Mikael, I think I'll let you talk now. Please, go ahead.

[Mikael Skov, CEO at Hafnia]

Thank you so much, Tue, and thank you for having Hafnia and giving us the chance to give a short presentation of the Q1 2026, which, as you've probably seen by now, was an extraordinary good quarter. We announced the numbers here this morning. As you can see from the screen, we secured a net profit of $179.7 million, which is historically high, even in concept of shipping. The good news is, as we've said as well, that Q2 already looks to be a better quarter, stronger quarter than Q1. I think all in all, we've been extremely satisfied with what we've seen so far, and it looks like the market in general has more legs and that there are some structural interesting things that, in our view at least, means that we're probably going to see a stronger tanker market throughout the year, this year.

[Mikael Skov, CEO at Hafnia]

Thank you. When it comes to Hafnia, for those that are not totally familiar, the short version is that we are a product tanker company that owns and charters in financially committed around 118 ships. They're all product tankers, so that means they are transporting refined oil such as gasoline, diesel, or jet fuel, et cetera. We also operate 60 ships on behalf of other owners that have decided to outsource the commercial management to us. All in all, we operate around 180 ships on a global basis, which obviously gives us the opportunity of positioning the ships around the world depending on how we see and analyze the market and the demand for ships. Hopefully by that, we try to optimize on the earnings of all these vessels.

[Operator]

Perfect. Just a question on the average age of your fleet, 9.6

[Mikael Skov, CEO at Hafnia]

Yeah

[Operator]

How is that compared to the rest of the industry?

[Mikael Skov, CEO at Hafnia]

The 9.6 average age should be seen, or compared to rather the average industry of about 14 years. There's no doubt that it's a modern fleet. At least for Hafnia, it's important that we maintain a fleet of modern ships. That's not just for the earning potential, but also because basically, when we talk about decarbonization and reducing fuel consumption and emissions, all these new modern ships are a lot more efficient than when you look at ships that are 15 years old.

[Operator]

Good. I think we'll cover that in more detail. I think you paid out 88% of your net profit last year, and then it seems like it's continuing.

[Mikael Skov, CEO at Hafnia]

It does. Our dividend policy relates to net LTV, which, by the end of Q1, was just above 20%. In the range of 20%-30%, we're paying out 80%. As you say, that has been like consistently over the last 17 quarters that we paid out dividend. I think it just shows again that there's a strong focus from our side on delivering shareholder value and returning capital to shareholders when things are going well.

[Operator]

You came onto the New York Stock Exchange last year. Has this changed in any way so that you are considering more share buybacks, or are you very comfortable with this dividend policy?

[Mikael Skov, CEO at Hafnia]

Yeah. I think Well, we kind of talk about this obviously every quarter, depending on where the share price is. Does it make sense to buy back shares or not? Fundamentally, we have a dividend policy, and any share buyback that we should consider going forward would always be in addition to the existing dividend policy. We're not swapping between the two. We are rather adding on. If we should decide to buy back shares, that will be in addition to our existing dividend policy.

[Operator]

Okay. Let's perhaps, this is historic numbers now, Mikael. That's the way it is.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

We need to look forward a little bit.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

Let's go into the industry because there's so many things happening as we speak. Maybe you could set the scene for how Hafnia is positioned in a global turmoil.

[Mikael Skov, CEO at Hafnia]

Yeah. Obviously when you have geopolitical turmoil, it's unfortunately often the situation that there is humans at risk, and that's also what we've seen this time around. The whole crisis in the Strait of Hormuz have caught up and tied up a lot of seafarers and vessels inside the Strait, which of course is not by any means a desirable outcome for our business. That being said, I think at least as far as we're concerned, the extra ton-mile that we have seen, i.e., that refined products travel longer than before because of these geopolitical events, has meant that demand for ships have gone up. This is kind of the primary reason why we've seen a very strong market in Q1 and now continuing into Q2.

[Mikael Skov, CEO at Hafnia]

What I would like to highlight on this slide here is just so people understand a bit of the context of where the oil market is that we are seeing a very rapid reduction of inventories on a global basis. This is something that we all need to be aware of, and I think the ordinary person will see this just from trying to order plane tickets and other things, that there is a shortage of fuel in general, and inventories are being brought down to levels where there is a real concern that in some areas of the world, you could run out of oil, at least when you compare to the current demand that we're seeing today.

[Mikael Skov, CEO at Hafnia]

This is one very important thing, is that this crisis in Hormuz, if it continues for a lot longer, we will not be able to have the same demand for oil that we had before the crisis. Prices will continue to go up, and they will go up to the point where people start to use less because there won't be enough oil for all the demand scenarios that we saw before the crisis.

[Operator]

Okay. We'll go into a couple of details and allow us to do that because I think this is very important for Hafnia's case for investors to understand these drops in global oil demand and also the inventories. Could you please elaborate a little bit about that, Mikael, please?

[Mikael Skov, CEO at Hafnia]

Basically what we are seeing is that because we are short of all the oil that would traditionally come out of the Arabian Gulf, it has meant that we've had to try to find oil from alternative places or use oil from existing inventories. We have seen a combination of the two. As I mentioned earlier, inventories are being drawn down. There is no way that the current demand can be met, unless we see an end to the crisis in the Middle East. This is the consequence that inventories are being drawn down. What you're seeing is that oil now travels longer for that reason.

[Mikael Skov, CEO at Hafnia]

What would normally be, say, loading in the Middle East and going to, for instance, Europe or going to the Far East, is now loading in the U.S. Gulf, which has doubled its distance and going all the way out to the Far East. This is the fundamental change in trading patterns that we have seen and kind of one of the main reasons why the market has become so strong.

[Operator]

This illustrates the drawdown in inventories, which seems massive.

[Mikael Skov, CEO at Hafnia]

Yeah

[Operator]

I must say. It's difficult for normal investors like me to envisage, but maybe you could put some words on this. How long time do you think it will take to recover these inventories? I think that's also important to understand.

[Mikael Skov, CEO at Hafnia]

There's no doubt it will take time to recover the inventories, for two reasons. One is that even in a normalization of the situation, in the Middle East, there's been damage to about 2 million barrels per day of production of oil in general, out of a total of five. That means before you can even start to export and produce, you need to repair, which can take at least two to three quarters, the damaged infrastructure to get the oil production and export back to where it was.

[Operator]

Yeah, Mikael. I think that's illustrated on this slide. Maybe you can talk on that.

[Mikael Skov, CEO at Hafnia]

Exactly

[Operator]

because that's very important.

[Mikael Skov, CEO at Hafnia]

I think this is a thing that may be overlooked a little bit, is that we are not going back to normal, even if there is a settlement or peace plan for the Strait of Hormuz. It will take time to get the production back online. That's one thing. That in itself will take, as I said, two to three quarters probably, when you listen to the local analyst in the area. The second question is, of course, is the world happy with just going back to where it was in terms of holding inventory of oil, or has this scared off so many areas in the world that people will look to build up higher inventories than before to make sure that if something should happen again, that you're not running short very quickly thereafter?

[Mikael Skov, CEO at Hafnia]

When you listen to various parts of the world, and there seems to be kind of shared opinion, but I think in general terms, there are certain areas of the world that will definitely come back with a demand for higher inventory build than what they saw before the crisis. That means more production, more transportation, more demand for tanker vessels, in the aftermath of a potential end of the conflict.

[Operator]

Okay. Maybe you could also describe the difference between crude and your market product here, because I think that's also very important to understand for investors that what are the key differences in your opinion?

[Mikael Skov, CEO at Hafnia]

I think the main key difference is that we are delivering a finished product to the consumers. That means that when you have uncertainty, when you have, as we're seeing now, geopolitical events like these, then what you normally see is that people immediately go for the finished product. The difference here is that before crude oil ends up with a consumer, first it has to go from where it's been taken up in the ground, basically to a refinery. It has to be refined before it becomes to refined oil product, and then it can go to the consumer. It's a long process depending on how long crude has to travel. Being the product tank business, we see the effects immediately because people immediately want to have the finished product.

[Mikael Skov, CEO at Hafnia]

When you look at the development in tanker markets in general, it is often the product tanker market that reacts first to any form of uncertainty.

[Operator]

Okay. I think this is a very interesting slide, by the way, because nobody has sort of quantified this before, in my opinion. I think that's something people can read. Then, of course, these daily loadings, which I also think is a part of this explanation.

[Mikael Skov, CEO at Hafnia]

Yeah. We are definitely seeing the effect of less oil being produced in the Middle East and loaded on board ships. This is really what this is showing, right? That we are seeing less and less oil on board ships, but what we are seeing is that ships are sailing longer with that same amount of oil. That in combination is why you're seeing a stronger freight market, is basically, as I said earlier, ships are sailing longer with the same amount of oil. It is a fact that because there is less oil and less oil loading, it means that oil consumption will also have to come out of inventories, and that's kind of the dynamic effect that we are seeing at the moment.

[Operator]

Perhaps this oil on water, you have described it as, maybe put a few words on this.

[Mikael Skov, CEO at Hafnia]

Yeah. I think this kind of reflects really what we have seen, right? That oil on water is coming down. It is a result of the lack of cargoes that we've seen in the Middle East. There's no doubt that this current situation and this slide here describes very well why we don't believe that this can go on for a very long time. If this continues for another month, there will be serious shortage of fuel around the world, and prices will go so high that it will kill demand, and we're going to have to see a totally different consumer pattern than what we've seen before.

[Operator]

Okay.

[Mikael Skov, CEO at Hafnia]

When we look at the crisis, I think what you're seeing here is one of the most important parts, right? Which is basically that we don't believe that consumers can continue as we do today, unless you're willing to pay off exorbitant levels for the oil that you're going to be using.

[Operator]

Yeah. You have a basic scenario that demand for oil will come down, basically. You agree with IEA about that. They have been out recently saying-

[Mikael Skov, CEO at Hafnia]

Yeah

[Operator]

that they think that the demand side will come down.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

Yeah.

[Mikael Skov, CEO at Hafnia]

If there's no change to the current situation.

[Operator]

Yeah. Mikael, perhaps a tricky question, but if you're an investor in Hafnia and you see that suddenly the U.S. and Iran agree on, not an immediate opening of Hormuz, but an opening, what would you think?

[Mikael Skov, CEO at Hafnia]

You mean in terms of what will happen afterwards?

[Operator]

Yeah. What will happen?

[Mikael Skov, CEO at Hafnia]

This is probably our most likely working assumption, is that there will be some kind of solution going forward. I think what will happen is that, once there's a safe transit of Strait of Hormuz, you will take the close to 200 tankers, and they will all kind of get out, and you will start normalize the trade, so to speak. The oil price has to find its level. Undoubtedly, the oil price will come down. As the oil price starts to drop, we believe that people will start looking at rebuilding the inventories. If a conflict reignites in some form and shape, the last thing you want is to come back and be short of oil. We think the inventory rebuild will drive the tanker market for not just this year, possibly also into next year.

[Mikael Skov, CEO at Hafnia]

It will take a long, long time to rebuild inventories even to the levels they were before this war started.

[Operator]

Okay. This is the ton-mile effect you have described. You travel simply, you travel longer.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

I think it's difficult for normal investors just to put this in perspective, because we've had this before under other circumstances, but maybe you can put it into a relative context here about previous times where you've had seen the same.

[Mikael Skov, CEO at Hafnia]

I think one have to look at these statistics kind of in two ways. One is the actual voyage length, which goes up, like when you have situations like this, where can we get the oil from? It's only available in the American Gulf. All right, we have to send the ship there, transport the cargo to wherever it should go. The second part is the uncertainty. The uncertainty where the ship is going. Even though you go longer, when you're adding on security as to where's the ship going to go, that kind of means that the supply of vessels, potential supply of vessels for the next cargo, becomes very uncertain because I don't know where my ship is going. Cargoes are being sold.

[Mikael Skov, CEO at Hafnia]

It goes towards Asia, but it could go to Singapore, it could go to New Zealand, it could go to the U.S. West Coast. Theoretically is you get voyage length, but you also get voyage uncertainty, which means that you have less ships available around the world for the next cargo because too many vessels are so uncertain that you can't say that we will be there in two weeks time ready to load the next cargo. Those are the two things in combination that creates extra demand for ships.

[Operator]

Okay. We've discussed previously in this, the Russian and the dark fleet and maybe you have some comments about this. It doesn't seem to change very much, actually. Sometimes the U.S. allow Russian transport, sometimes they don't.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

Sometimes the U.K. does. I think for investors it's very difficult to find a way around to understand these moves. Maybe you can shed some light.

[Mikael Skov, CEO at Hafnia]

I understand why people are confused because I think, even so are we sometimes, right? The routes are not clear, and they keep on changing. I would say what we are seeing, though, is that a lot of that dark fleet and sanctioned tonnage that has been transporting Russian oil are being used less and less. What we are seeing is there is a reducing utilization of the dark fleet in general. There is a lot of damage to the Russian infrastructure, on refineries and production of oil. We've seen production drop as well. As far as we can see, it has kind of lived a little bit its own life.

[Mikael Skov, CEO at Hafnia]

I think the main thing to watch as an investor here is, of course, that if in connection with Russia or Ukraine or the Strait of Hormuz, there is any form of agreements on peace, and, let's say normalization of Russian export of oil again, what that would technically mean is that Russian oil would become compliant, which means there would be more oil for the normal market, which is where Hafnia and all of our peers are in. All the sanctioned ships, all the vessels in the dark fleet will suddenly not have anything to sail with because basically all of that current cargo will move into the compliant market. That's a feature to watch out for as well, is that any form of softening and normalization of that will send more oil into the compliant transportation market, which would be a positive.

[Operator]

There's so many interesting slides, but I found this one particularly interesting, Mikael, because we've done these interviews for approximately five years now, and through this period it's been crazy what you have experienced. I think this illustrates quite well how many things you've been through. Somehow I have the feeling that this Hormuz thing is more structural than the others. Am I right in that, or is that a true bullish assumption?

[Mikael Skov, CEO at Hafnia]

No, I would kind of concur with that. I think that is true. Even before these six years, we've had wars as well, right? Those were different because they were between international alliances, and actually, we were able to have ships going up and down through the area of the Arabian Gulf, even when there was wars going on because there were international protection of our ships, and oil kept on flowing despite the fact that there was war and warlike operations. This time around is very different, right? Because it has become a weapon in a big conflict. To take out one of these absolute main production areas in the world of oil and gas is a serious threat.

[Mikael Skov, CEO at Hafnia]

I think structurally what will happen is that lots of countries and areas will have to consider, can we live with the risk of this happening again, or should we try to focus on production in different areas? As I said earlier, make sure that inventories are kept at a much higher level than before to ensure that you're not as vulnerable in the future as you have been this time around. That's one thing. I think what's interesting here, if you look at the slides in general, is really the structurally aging fleet.

[Mikael Skov, CEO at Hafnia]

I know we have another slide on this as well, but I do think what's really interesting to see now is that this illustrates why we have been positive for the tanker business for a long, long time, is that we've had a long period of under-investing in ships, and we're now catching up a little bit, but we are by no means catching up and trying to, say, bridge the gap between ships that are becoming older than 20 years and new build. I know we have a slide later on and we'll be kind of taking that.

[Operator]

Yeah. If we can find it. Yeah.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

I think this is the one we're looking for.

[Mikael Skov, CEO at Hafnia]

This is the one.

[Operator]

Yeah.

[Mikael Skov, CEO at Hafnia]

Exactly. Yeah. I think this is really what I think investors should keep on looking at, is that even with today's order book, we will be running shorter ships by the end of this decade for sure. A lot of those ships are also in the dark fleet, a lot of them are poor quality. We need renewal without any doubt, and we are by no means exceeding the demand for tankers yet. Of course, if ordering goes on for five years in a row, that's a different story. Right now, as you can see from this slide, we are by no means filling the gap of demand that is needed going forward.

[Operator]

Good. Let me just flip through a few things here. I'm sorry for doing this because there's many questions, but I think this is one that gives investors particular good insights into how you are seeing your company as we speak.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

Q1 was very good. Q2 is going to be better.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

This is also saying something about the covered rates you have, and if you put them forward to Q3 and Q4, how it will look. Can you comment on this in more in detail, perhaps?

[Mikael Skov, CEO at Hafnia]

Well, as you may have seen from the report today, we already covered more than 70% of the second quarter at about $46,000 per day.

[Operator]

Yeah.

[Mikael Skov, CEO at Hafnia]

We are close to 40% of the balance of the year as well. Yeah, I think what it really tells us is that by what we have covered already, which is a combination of spot fixtures that have already been concluded, but also a hedging ratio, which now is getting close to 30% on a 12-month basis. Those two in combination means that the uncertainty for the year is a lot less than what we've seen previously. I think our coverage base is going up and is still at very, very high numbers. I think that's kind of the fundamental to take away from here, and our view is that the full year this year will be, already we can see a very, very strong year.

[Operator]

Yeah.

[Mikael Skov, CEO at Hafnia]

The uncertainty is, without any doubt, what happens in the case that this conflict continues to the point where inventories are being drawn so low and prices are going so high that demand will come down.

[Operator]

Yeah. I think, Mikael, let's take some questions. There's a lot of questions here, so I'll just take them one by one, if I may.

[Mikael Skov, CEO at Hafnia]

Yeah.

[Operator]

The first one is, how many ships or vessels have Hafnia caught in the Hormuz Strait as of today?

[Mikael Skov, CEO at Hafnia]

We have one vessel in there.

[Operator]

Okay.

[Mikael Skov, CEO at Hafnia]

We've had only one vessel basically from the beginning. We consider ourselves very fortunate and lucky that it was only one vessel, and everybody's fine. We've changed the crew more than once, so that's pretty much under control, which is good.

[Operator]

Okay. There's a question on the status of TORM. You acquired a stake recently, and you have also said that you made quite a decent profit on this in connection Q1, perhaps. Can you share anything? I know it's sensitive, but whatever you can share I think would be helpful.

[Mikael Skov, CEO at Hafnia]

Well, as you say, we're super happy with the investment so far, obviously, because it's gone up since we bought the shares. I think from an investment perspective, it's obviously been super profitable. Our view on consolidation has not changed at all. Our view remains that when you look at companies in our sector with a market cap of, say, $5 billion-$6 billion and above, they trade at a lot better ratio, net asset values towards the price of the stock than if you are at a $2 billion-$3 billion market cap company. These are facts and I think, for us that would be a significant value uptick for our shareholders or any combined shareholders that would participate in something like this.

[Mikael Skov, CEO at Hafnia]

We have not changed our view on what we think is right, but as we also say, sometimes you've got to be patient and sometimes you have to let time work a little bit with you. Our intentions have not changed as far as this is concerned.

[Operator]

Okay. There's a question on your debt situation and whether it would be more sensible, given rising interest, to focus on reducing your debt than paying out dividends. How do you see this situation?

[Mikael Skov, CEO at Hafnia]

Yeah, no, I kind of understand that concern, right? I think fundamentally, we are reducing debt all the time. That's step number one. I think we have extremely low interest costs in general, also when we compare to the peers. Our view is probably that despite the fact that we had a net LTV of around 20%, obviously this is at a very high level, and freight environment and price asset environment, that the 20% is applicable in a normalized mid-cycle thing that will probably be closer to 30%-35% maybe. We believe that in an asset-heavy industry like ours, that it's not efficient use of capital not to have any debt whatsoever. We kind of feel that where we are now with a normal amortization and payback of our debt, that this is kind of a good place to be.

[Mikael Skov, CEO at Hafnia]

We don't feel that running a business with no debt whatsoever, being so asset heavy as we are, is the right model.

[Operator]

Next question is, does Hafnia have any plans on starting to transport LNG, or will you leave that to your sister company at BW LNG?

[Mikael Skov, CEO at Hafnia]

No, we don't have any plans of that. I would say that's not really related to any sister companies or anything else. That's just for the time being. We still feel that demand for refined oil will be strong for many, many years going forward. What we are seeing, though, is that we have expanded a little bit into the easy chemical sector. Where we are transporting biofuels and other easy chemical products, and we probably feel that's a good balance between refined oil and easy chemicals because there's a longer pathway for the easy chemicals than maybe for refined oil in general. LNG, that is not something we've considered.

[Operator]

That's not on the board. There's a question here, and I'll read it out. The U.S. has become a net exporter of crude for the first time in 50 years, with export reaching a record high. How structural do you view this shift in Atlantic Basin trading flows, and how is your fleet positioned to capture it?

[Mikael Skov, CEO at Hafnia]

It's a very good question, by the way. Currently, we're overweight vessels in the Western Hemisphere. We have been able actually to profit a bit from not the crude oil side, but also the refined oil side, which has been very active out of the U.S. Gulf. One thing is the crude, but the important part for us has been U.S. Gulf exports of refined oils, of which there have been a heavy increase as well. A lot of these barrels have gone a long way. I mean, we transported naphtha from the U.S. Gulf all the way via Cape of Good Hope out to Japan, just to give one example. Long voyages. I think we've been well-positioned to take advantage of exactly that situation.

[Operator]

Okay. Then I think a final question, which is very relevant, is that the Strait of Hormuz has been closed since early March, and the IEA's base case assumes a reopening in early June. That will then lead to two to three months of normalization. What is your assessment of this timeline, and what scenarios do you have working with internally based on that?

[Mikael Skov, CEO at Hafnia]

Yeah. I think obviously, we can all guess on what we think about this conflict. We're working under the assumption that for the time being, it's about making sure that you have flexibility in your positioning of the fleet. In other words, we don't want to be caught up being isolated in a place where suddenly there's no oil export or nothing to transport with. What we're trying to do now is to build in flexibility so that we can easily switch from the Western Hemisphere to the Eastern Hemisphere should we suddenly have more demand coming out of the AG in connection with an end of the conflict.

[Mikael Skov, CEO at Hafnia]

That's kind of how you need to work with it, because nothing is guaranteed in any form and shape. I can say that our view is that in a reopening scenario, you may see a little bit of quietness for a while until production ramps up. Our main scenario here is that the inventory restocking is going to be massive, and it's going to require a lot of tankers afterwards to do that, and it will probably drag the tanker market forward strongly, for the next at least 12 months.

[Operator]

Then a final comment, perhaps a little bit technical, but I read in your release that you are now describing Complexio, one of your inventions in Hafnia. That's the second time I've seen this mentioned. Can you just briefly mention what that is and what is the purpose of this within Hafnia?

[Mikael Skov, CEO at Hafnia]

First of all, it's true that we have been a co-founder, so to speak, right? I would not take credit for anything.

[Operator]

Okay, fair enough.

[Mikael Skov, CEO at Hafnia]

been in the development of it. That's experienced people that have done that. Basically, it has now been underway for more than three years, and as you say, we're now rolling it out and have rolled it out in certain areas of Hafnia. It basically is a technology that sits inside your business, and basically understands all the processes, workflows that is within Hafnia. It's not an external large language model like Claude or anything else. It sits inside your own security. No one else have access to it. It uses the OpenAI models to help create automated automation, which basically means that things that normally would be a manual work, you come in, you read emails, you send stuff around.

[Operator]

Okay

[Mikael Skov, CEO at Hafnia]

can now be automated completely. It's a big way and change of working, I think what the way to look at it is that, and why we are very positive is that there's so much risk by using external models and upload stuff to models in the open landscape, whereas Complexio actually offers a solution where you're not sharing any sensitive data with anyone outside your own business.

[Operator]

We look forward to hearing more about the potential impact for Hafnia on this. Mikael, thank you very much for your time. I hope everybody got answered all their questions. Thank you for the questions and follow on. If you have any questions more, you can find on Investor Relations in Hafnia, I'm sure. Thank you very much, Mikael.

[Mikael Skov, CEO at Hafnia]

Thank you.

Participants

Executives

• Mikael Skov, CEO