Hafnia, currently enjoying one of the hottest product tanker markets on record, is pushing to join the main Oslo Stock Exchange list.
The Mikael Skov-led company has applied to be transferred from its listing on the Oslo Axess, where it listed last November, raising $230m.
Hafnia expects the first day of trading of its shares on the Oslo Stock Exchange to be 30 April, subject to approval by the Oslo Bors.
On Thursday, Clarksons Platou Securities reported that earnings for MRs were up “51% overnight" to what it described as the “highest ever seen in modern times”.
“Significant delays at discharge ports across the world, but particularly in the Americas, coupled with floating storage have tightened vessel capacity and is the main reason for the record dayrates,” it said.
“At these earnings, MRs could earn ebitda of $2.6m for each spot voyage of around 40 days, or almost 9% of the value of a five-year-old ship, implying a ship could be paid back within 18 months if these rates were to hold.
Long-term floating storage contracts
"LR2s are now generating $155,000 per day, up another 30% yesterday, implying ebitda of $9m for each trip, or 20% of the value of a five-year-old ship."
Unconfirmed reports said Hafnia has secured several ships on long-term floating storage contracts, including the 76,000-dwt BW Zambesi (built 2010) to Indonesia’s Pertamina for six months, while the 110,000-dwt LR2 BW Galatea (built 2019) has reportedly been fixed to Clearlake for 12 months at $33,000 per day.
The Oslo Bors said an application to join the Oslo Stock Exchange can take from four to eight weeks to process.
Companies must have a market capitalisation of at least NOK 300m and a minimum of 500 shareholders, and at least 25% of the share capital has to be owned by the general public.
“The Oslo Stock Exchange is the natural target for larger companies with a long history and a substantial shareholder base,” the Oslo Bors said on its website.
Unprecedented times
“Oslo Axess is suitable for companies with less than three years of history and who seek a quality stamp and other benefits associated with listing on a regulated market.”
Hafnia had yet to reply to a request for further information by TradeWinds at the time this article went to press.
Fearnley Securities said: "It is unprecedented times in the product market as refinery runs continue on a high (relative) note due to access to heavily discounted crude.
"The result is brimming product inventories, and as storage on land runs off, refiners are forced to use floating solutions."
It pegged an LR2 cargo with naphtha moving from Asia to Europe at $7.5m, compared to as little as $1m in 2018.
About 7% of the global product fleet is now involved in some form of storage.
"We expect Hafnia to report 19 cents of earnings per share in Q1, but Q2 could easily be 45-55 cents," Fearnley Securities added.
"On a 60%-payout ratio this means NOK 3-4 [$0.28 to $0.37] per share for first half. Current steel values are NOK 30 per share, growing to nearly NOK 40 per share by end of June [on the] basis [of] these earnings."
