Hafnia: Another historically strong quarter and dividend, but with signs of market normalisation
This morning, Hafnia has published its accounts for Q3 2023. It is a strong account from a historical perspective, however, shows some slowdown against the very strong Q3 2022, with a net result for the period is USD 146.9 million. compared with USD 280.3 million in the 3rd quarter of 2022. At the same time, the company showed a slight beat on consensus expectations. Hafnia announced a quarterly dividend of USD 0.2032 per share, corresponding to approx. NOK 2.23 per share and also stated its intention to pursue a secondary listing in the US to access the world's largest capital market and improve liquidity. Overall, the accounts show some continued signs of market normalization, but Hafnia still sees continued strong fundamentals driven by a positive winter season and continued low western inventories.
In the third quarter 2023, Hafnia realized a TCE Income of USD 310.3 million. against USD 407.6 million in the same quarter last year. In comparison, TCE Income stood at USD 349.3 million (Q2 2023), and USD 377.2 million (Q1 2023), respectively. Thus, rates have come down somewhat against historic levels, yet still remain significantly above historical averages. According to Refinitiv, the consensus expectations for TCE Income in Q3 2023 among 4 analysts were USD 304.94 million.
EBITDA lands at USD 220.8m. in the 3rd quarter of 2023 against USD 326 million. last year. In the previous quarter, Q2 2023, EBITDA was USD 261.6 million. The consensus expectations here were USD 207.6 million.
The result for the period is USD 146.9 million. compared with USD 280.3 million in the 3rd quarter of 2022 and USD 213.3 million. in the 1st quarter of 2023. The analysts here had an estimate of USD 134.2 million. Thus the result reflects a slowdown in the product tanker market compared to last year, however, with Hafnia beating analyst estimates.
Hafnia pays out a dividend of USD 0.2032, corresponding to approx. NOK 2.23 per share., which at the current price level gives a yield of approx. 3.1%. The consensus here was USD 0.18 per share. The dividend corresponds to 70% of the period's result based on a Net loan-to-value of 27.4%. The payout ratio increased from 60% in Q2 and Q1 2023, in line with Hafnia’s dividend policy as the LTV dropped into the 20-30% range.
You can read the entire report here: https://investor.hafniabw.com/investing-in-hafnia/default.aspx
We have the pleasure of inviting you to join a review of the Q3 2023 accounts and discussion of the latest trends in the industry with Hafnia's CEO Mikael Skov, on Monday, 20th November, at 10:30 CET.
The event takes place in English, and you can register here: https://www.inderes.dk/videos/hafnia-presentation-of-q3-2023
Disclaimer: HC Andersen Capital receives payment from Hafnia for a DigtialIR/Corporate visibility subscription agreement. / Philip Coombes 17/11/2023 10:30.