Hafnia (NYSE:HAFN) Releases Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Hafnia beat earnings expectations, reporting $0.36 EPS versus the $0.30 consensus estimate. Revenue also came in far above forecasts at $688.87 million.
• The company said it posted a record Q1 net profit of $179.7 million and sees the tanker market staying firm, helped by geopolitical disruptions in the Middle East that are boosting demand.
• Hafnia has already covered more than 70% of Q2 at about $46,000 per day and reiterated its capital return policy, including an 80% dividend payout framework at current leverage.

Hafnia (NYSE:HAFN - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $0.06, FiscalAI reports. Hafnia had a return on equity of 14.71% and a net margin of 35.54%.The company had revenue of $688.87 million during the quarter, compared to analysts' expectations of $298.65 million.

Here are the key takeaways from Hafnia's conference call:

• 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.
• 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.
• 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.
• 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.
• 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.

Hafnia Stock Down 2.3%

Shares of NYSE HAFN opened at $8.34 on Wednesday. The company has a 50 day simple moving average of $8.20 and a 200 day simple moving average of $6.91. The firm has a market cap of $4.27 billion, a PE ratio of 12.26 and a beta of 0.86. Hafnia has a 1 year low of $4.90 and a 1 year high of $9.53. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.48 and a quick ratio of 1.35.

Hafnia Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Friday, March 6th were issued a $0.1762 dividend. This is a boost from Hafnia's previous quarterly dividend of $0.15. The ex-dividend date was Friday, March 6th. This represents a $0.70 dividend on an annualized basis and a yield of 8.5%. Hafnia's dividend payout ratio (DPR) is 102.94%.

Insider Buying and Selling

In related news, CFO Echtelt Petrus Wouter Van sold 90,000 shares of the firm's stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $8.22, for a total transaction of $739,800.00. Following the completion of the transaction, the chief financial officer directly owned 91,994 shares of the company's stock, valued at $756,190.68. This trade represents a 49.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Mikael Opstun Skov sold 500,000 shares of the stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $8.11, for a total value of $4,055,000.00. Following the completion of the sale, the chief executive officer directly owned 1,130,978 shares of the company's stock, valued at approximately $9,172,231.58. The trade was a 30.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 1,090,000 shares of company stock valued at $8,854,800.

Institutional Investors Weigh In On Hafnia

Institutional investors and hedge funds have recently made changes to their positions in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Hafnia by 82.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 431,462 shares of the company's stock worth $1,795,000 after purchasing an additional 194,751 shares during the last quarter. Jane Street Group LLC raised its holdings in Hafnia by 241.6% during the 1st quarter. Jane Street Group LLC now owns 815,341 shares of the company's stock worth $3,392,000 after purchasing an additional 576,629 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in Hafnia by 26.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 233,532 shares of the company's stock worth $1,165,000 after purchasing an additional 49,409 shares during the last quarter. First Trust Advisors LP raised its holdings in Hafnia by 138.5% during the 2nd quarter. First Trust Advisors LP now owns 144,871 shares of the company's stock worth $725,000 after purchasing an additional 84,140 shares during the last quarter. Finally, Baird Financial Group Inc. bought a new position in Hafnia during the 2nd quarter worth approximately $131,000.

Analyst Upgrades and Downgrades

HAFN has been the subject of a number of research analyst reports. Dnb Carnegie cut Hafnia from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 12th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hafnia in a report on Wednesday, May 6th. Finally, Wall Street Zen raised shares of Hafnia from a "hold" rating to a "buy" rating in a report on Saturday, April 25th. One analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Hafnia has a consensus rating of "Moderate Buy".

About Hafnia

Hafnia is a global shipping company listed on the New York Stock Exchange under the ticker HAFN. The firm specializes in the marine transportation of refined petroleum products, providing safe and reliable shipping solutions across key global trade lanes. Its core operations focus on the carriage of gasoline, diesel, jet fuel and other clean petroleum products, catering to the needs of oil majors, trading houses and independent refiners.

The company operates a modern fleet of double-hulled product tankers, managed to comply with stringent safety and environmental standards.

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