Singapore’s Hafnia could gain greater power to acquire more tankers through its upcoming US listing, analysts believe.
The Oslo-listed, BW Group-backed clean tanker giant is working towards a secondary listing in New York, possibly as early as December.
It has said it wants to reach a wider shareholder base, access the world’s largest capital market and improve share liquidity.
Clarksons Securities argues that the listing could also be advantageous for Hafnia’s valuation, and “increase its capability to leverage its stock for asset acquisitions”, which the shipowner has expressed an interest in.
This would follow a successful blueprint implemented by Danish rival Torm, which has sealed four acquisition deals in recent years using stock as part-payment.
The latest was the eight LR2s bought this month from Kristian Gerhard Jebsen Skipsrederi and Hayfin Capital, with shares comprising part of the $399m settlement.
Torm is listed in both New York and Copenhagen.
Clarksons Securities analysts led by Frode Morkedal said Hafnia’s valuation continues to be compelling, with its net asset value assessed at $7.23 or NOK 78 per share, representing an 8% discount to its stock price.
Cash flow from operations stands at $200m per quarter, assuming the fleet earns $30,000 per day.
“The robust cash generation is expected to contribute significantly to NAV growth, potentially reaching NOK 95 per share by the end of 2024, based on our daily rate estimate of $33,700 per day and factoring in an ageing fleet,” the analysts added.
A potential increase in the dividend ratio from 70% of earnings to 80% by the third quarter of next year mitigates any investment risk, they believe.
“Given these factors, we believe Hafnia’s shares have further room for growth,” Morkedal and his team said.
Clarksons Securities is maintaining a “buy” rating and raising its target price to NOK 95.
Spot markets for product tankers are currently “healthy” approaching the traditionally strongest market season, the analysts added.