HAFN · Hafnia Limited

Revenue and Earnings Performance

Revenue for FY2025 was lower than in FY2024, primarily due to a decline in ton-mile demand as global trade flows normalized following the elevated activity observed in 2024. That prior period reflected heightened demand stemming from geopolitical disruptions, including Red Sea rerouting, which temporarily expanded ton-mile requirements. With those conditions subsiding, freight demand moderated, resulting in reduced utilization and lower realized rates across vessel segments. The decrease was further amplified by fewer available operating days in FY2025 — a structural outcome tied to the company’s ongoing fleet optimization, including the disposal of four MR vessels during the year.

Cost Management and Operational Efficiency

Market Dynamics and Industry Context

Historically, market rates for vessels in the Hafnia Fleet have been volatile. This volatility arises from periodic shifts in the global supply of and demand for tankers — a defining feature of the industry’s cyclical nature. Management explicitly notes that these dynamics are not transient but structural, reinforcing the importance of capital discipline and liquidity resilience over time.

Liquidity and Capital Resources

Hafnia operates in a capital-intensive industry where liquidity depends heavily on cash generation from vessel operations — whether through pool participation, spot charters, or time charters — supplemented by existing cash balances. Management states that continued volatility in market rates will have a direct and material effect on both short- and long-term liquidity. As such, the company’s ability to fund operations, investments, and shareholder returns remains contingent on prevailing freight conditions and its capacity to adapt fleet deployment accordingly. No specific cash balance figure is authorized for disclosure, and therefore no quantitative liquidity assessment is included in this narrative.