Following Hafnia's Q1 2026 quarterly report, we have updated our investment case on the company. Our updated investment case covers the key investment reasons, risks, and valuation perspective relative to product tanker peers.

Hafnia delivered a strong start to 2026 with Q1 net profit of USD 179.7m (USD 0.36/share), TCE income of USD 282.5m, and adjusted EBITDA of USD 198.6m, supported by an average fleet TCE of USD 30,327 per day as the Persian Gulf conflict and the closure of the Strait of Hormuz rerouted global trade flows and pushed freight rates to record levels. Return on equity rose to 29.5% annualised, while the net loan-to-value ratio fell to 20.2% from 24.9% on strong cash generation from operations and vessel sales. As of 13 May 2026, 73% of Q2 earning days were covered at USD 46,600 per day, supporting management's expectation that Q2 will be stronger than Q1.

The board declared a Q1 dividend of USD 0.2877 per share, an 80% payout of net profit totalling USD 143.8m, in line with the tiered policy that links payout to leverage. Net asset value rose to approximately USD 4.0bn, or USD 8.09 per share (~NOK 78.81), up USD 0.5bn from Q4 2025 on higher vessel valuations across all segments. Hafnia is also progressing fleet renewal, having divested older tonnage while contracting eight MR newbuilds at HHI (~USD 405m) and exercising two further options, and its 13.97% stake in peer TORM is now valued at USD 395m, delivering a ~USD 118m unrealized gain and ~USD 10m in dividend income since December 2025. On valuation, Hafnia trades at a clear discount to current NAV and offers the highest dividend yield in the peer group at 8.1% for 2026E, leaving room for continued returns if the elevated rate environment persists.

Disclaimer: HC Andersen Capital receives payment from Hafnia for a Digital IR subscription agreement. /Rasmus Køjborg, CFA & William Jørck 16:10 10/06-2026