BW-backed product tanker giant Hafnia is set to return more cash to shareholders after the best nine months in its history.
The company said net earnings jumped to $215.6m in the third quarter, from $146.9m in the same period of 2023.
This lifted profit so far this year to a record $694.4m.
Third quarter time charter equivalent (TCE) earnings were $361.6m, from $310m a year ago.
The company, which controls 130 ships, will hand out $194.1m in dividends, or 90% of profit.
The loan-to-value (LTV) ratio decreased to 19.1% at the end of the quarter, triggering the new 90% payout level.
And Hafnia’s board has authorised a share buyback of up to $100m, running from 2 December to 27 January.
Chief executive Mikael Skov said: “After a strong second quarter, the product tanker market softened seasonally in the third quarter, due to refinery maintenance, lower refinery margins and increased cannibalisation from the crude sector.”
“Despite these challenges, Hafnia has continued to perform well, delivering solid earnings,” he added.
The average TCE figure per ship was $33,549 per day in the third quarter.
Rates looking lower so far in fourth quarter
As of 18 November, 71% of earning days have been fixed in the fourth quarter at $24,004 per day.
About 9% of capacity is covered at $24,089 per day for 2025.
Skov said Hafnia’s net asset value stood at $4.6bn, reflecting the increased market value of the fleet and strong operating cashflows.
“While market conditions softened slightly due to competition from the crude sector, Q3 trade volumes and earnings remained above last year’s levels, driven by strong global oil demand and increased tonne-miles from refinery dislocations,” he added.
And the CEO believes that seasonal strengthening in the crude sector, coupled with the technical challenges of transporting products on crude carriers, is expected to reduce the cannibalisation of the clean tanker market.
“Additionally, seasonal demand increases and geopolitical tensions will further support product demand and tonne-miles,” Skov concluded.
