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Source: businesswire | Published on: Wednesday, 27 November 2024
SINGAPORE--(BUSINESS WIRE)--Hafnia Limited (“Hafnia”, the “Company” or “we”, OSE ticker code: “HAFNI”, NYSE ticker code: “HAFN”), a leading product tanker company with a diversified and modern fleet of over 130 vessels, today announced results for the three and nine months ended September 30, 2024.
The full report can be found in the Investor Relations section of Hafnia’s website: https://investor.hafniabw.com/financials/quarterly-results/default.aspx
Highlights and Recent Activity
Third Quarter 2024
Year-to-Date September 30, 2024
A recording of the presentation will be available after the live event on the Hafnia Investor Relations Page: https://investor.hafnia.com/financials/quarterly-results/default.aspx.
About Hafnia
Hafnia is one of the world's leading tanker owners, transporting oil, oil products and chemicals for major national and international oil companies, chemical companies, as well as trading and utility companies.
As owners and operators of around 200 vessels, we offer a fully integrated shipping platform, including technical management, commercial and chartering services, pool management, and a large-scale bunker procurement desk. Hafnia has offices in Singapore, Copenhagen, Houston, and Dubai and currently employs over 4000 employees onshore and at sea.
Hafnia is part of the BW Group, an international shipping group involved in oil and gas transportation, floating gas infrastructure, environmental technologies, and deep-water production for over 80 years.
Non-IFRS Measures
Throughout this press release, we provide a number of key performance indicators used by our management and often used by competitors in our industry.
Adjusted EBITDA
“Adjusted EBITDA” is a non-IFRS financial measure and as used herein represents earnings before financial income and expenses, depreciation, impairment, amortization and taxes. Adjusted EBITDA additionally includes adjustments for gain/(loss) on disposal of vessels and/or subsidiaries, share of profit and loss from equity accounted investments, interest income and interest expense, capitalised financing fees written off and other finance expenses. Adjusted EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as lenders, to assess our operating performance as well as compliance with the financial covenants and restrictions contained in our financing agreements.
We believe that Adjusted EBITDA assists management and investors by increasing comparability of our performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects of interest, depreciation, impairment, amortization and taxes. These are items that could be affected by various changing financing methods and capital structure which may significantly affect profit/(loss) between periods. Including Adjusted EBITDA as a measure benefits investors in selecting between investment alternatives.
Adjusted EBITDA is a non-IFRS financial measure and should not be considered as an alternative to net income or any other measure of our financial performance calculated in accordance with IFRS. Adjusted EBITDA excludes some, but not all, items that affect profit/(loss) and these measures may vary among other companies. Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies.
Reconciliation of Non-IFRS measures
The following table sets forth a reconciliation of Adjusted EBITDA to profit/(loss) for the financial period, the most comparable IFRS financial measure for the periods ended 30 September 2024 and 30 September 2023.
| For the 3 months ended USD’000 | For the 3 months ended USD’000 | For the 9 months ended USD’000 | For the 9 months ended USD’000 |
Profit for the financial period | 215,635 | 146,938 | 694,403 | 616,840 |
Income tax expense | 1,164 | 932 | 4,479 | 4,368 |
Depreciation charge of property, plant and equipment | 53,516 | 53,135 | 161,904 | 156,341 |
Amortisation charge of intangible assets | 108 | 321 | 695 | 976 |
(Gain)/loss on disposal of assets | (15,621) | 133 | (15,521) | (56,382) |
Share of profit of equity-accounted investees, net of tax | (4,072) | (3,236) | (19,914) | (14,198) |
Interest income | (4,455) | (4,062) | (11,739) | (14,486) |
Interest expense | 9,688 | 23,076 | 38,730 | 73,785 |
Capitalised financing fees written off | 406 | – | 2,069 | – |
Other finance expense | 645 | 3,548 | 6,043 | 11,112 |
Adjusted EBITDA | 257,014 | 220,785 | 861,149 | 778,356 |
Time charter equivalent (or “TCE”)
TCE (or TCE income) is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., voyage charters and time charters) under which the vessels may be employed between the periods. We define TCE income as income from time charters and voyage charters (including income from Pools, as described above) for our Hafnia Vessels and TC Vessels less voyage expenses (including fuel oil, port costs, brokers’ commissions and other voyage expenses).
We present TCE income per operating day1, a non-IFRS measure, as we believe it provides additional meaningful information in conjunction with revenues, the most directly comparable IFRS measure, because it assists management in making decisions regarding the deployment and use of our Hafnia Vessels and TC Vessels and in evaluating their financial performance. Our calculation of TCE income may not be comparable to that reported by other shipping companies.
| 1 Operating days are defined as the total number of days (including waiting time) in a period during which each vessel is owned, partly owned, operated under a bareboat arrangement (including sale and lease-back) or time chartered-in, net of technical off-hire days. Total operating days stated in the quarterly financial information include operating days for TC Vessels. |
Reconciliation of Non-IFRS measures
The following table reconciles our revenue (Hafnia Vessels and TC Vessels), the most directly comparable IFRS financial measure, to TCE income per operating day.
(in USD’000 except operating days and TCE income per operating day) | For the 3 | For the 3 | For the 9 | For the 9 |
Revenue (Hafnia Vessels and TC Vessels) | 497,889 | 442,665 | 1,582,779 | 1,443,465 |
Revenue (External Vessels in Disponent-Owner Pools) | 221,842 | 208,102 | 753,007 | 524,802 |
Less: Voyage expenses (Hafnia Vessels and TC Vessels) | (136,331) | (132,405) | (425,060) | (406,665) |
Less: Voyage expenses (External Vessels in Disponent-Owner Pools) | (80,324) | (79,506) | (248,807) | (199,267) |
Less: Pool distributions (External Vessels in Disponent-Owner Pools) | (141,518) | (128,596) | (504,200) | (325,535) |
TCE income | 361,558 | 310,260 | 1,157,719 | 1,036,800 |
Operating days | 10,776 | 10,716 | 31,867 | 31,549 |
TCE income per operating day | 33,549 | 28,954 | 36,330 | 32,863 |
Revenue, voyage expenses and pool distributions in relation to External Vessels in Disponent-Owner Pools nets to zero, and therefore the calculation of TCE income is unaffected by these items:
(in USD’000 except operating days and TCE income per operating day) | For the 3 | For the 3 | For the 9 | For the 9 |
Revenue (Hafnia Vessels and TC Vessels) | 497,889 | 442,665 | 1,582,779 | 1,443,465 |
Less: Voyage expenses (Hafnia Vessels and TC Vessels) | (136,331) | (132,405) | (425,060) | (406,665) |
TCE income | 361,558 | 310,260 | 1,157,719 | 1,036,800 |
Operating days | 10,776 | 10,716 | 31,867 | 31,549 |
TCE income per operating day | 33,549 | 28,954 | 36,330 | 32,863 |
‘TCE income’ as used by management is therefore only illustrative of the performance of the Hafnia Vessels and the TC Vessels; not the External Vessels in our Pools.
For the avoidance of doubt, in all instances where we use the term “TCE income” and it is not succeeded by “(voyage charter)”, we are referring to TCE income from revenue and voyage expenses related to both voyage charter and time charter.
Forward-Looking Statements
This press release and any other written or oral statements made by us or on our behalf may include “forward-looking statements “within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning our intentions, beliefs or current expectations concerning, among other things, the financial strength and position of the Group, operating results, liquidity, prospects, growth, the implementation of strategic initiatives, as well as other statements relating to the Group’s future business development, financial performance and the industry in which the Group operates, which are other than statements of historical facts or present facts and circumstances. These forward-looking statements may be identified by the use of forward-looking terminology, such as the terms “anticipates”, “assumes”, “believes”, “can”, “continue”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “likely”, “may”, “might”, “plans”, “should”, “potential”, “projects”, “seek”, “will”, “would” or, in each case, their negative, or other variations or comparable terminology.
The forward-looking statements in this press release are based upon various assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot guarantee prospective investors that the intentions, beliefs or current expectations upon which its forward-looking statements are based will occur.
Other important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements due to various factors include, but are not limited to:
Because of these known and unknown risks, uncertainties and assumptions, the outcome may differ materially from those set out in the forward-looking statements. These forward-looking statements speak only as at the date on which they are made. Hafnia undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise.
