Hafnia reports robust earnings despite declining rates

Aug 26 2016

Product tanker operator and owner Hafnia Tankers’ operating profit for the six months ended June 30, 2016 was $28.4 mill and net profit of $17.2 mill, the company said.

For the second quarter of this year, the operating profit was $11.4 mill and profit was $5.5 mill.

As of 30^th June, the book value of the fleet, including newbuildings and remaining capex, was $1,091 mill. As of the same date, Hafnia Tankers had $110.5 mill in cash and $526.3 mill of bank debt. The remaining capex for the newbuildings was $115.6 mill.

Available undrawn bank financing to fund the newbuildings was $105.3 mill and including cash, the newbuild programme was fully financed, the company claimed.

Fundamental demand for refined oil products remains healthy, however, oil products being readily available in most regions together with a high supply of newbuildings have reduced the fleet utilisation levels, hence spot earnings declined in the second half of 2Q16, which continued going into 3Q16.

Gross earnings per day during 1H16 were abt $20,750 per LR1, $16,550 per MR and $15,250 per SR (Handysize).

Hafnia said that it expected to take delivery of four MRs in 2016, and another MR in 2017.

As at the end of June, Hafnia’s fleet consisted of 32 owned vessels, five vessels chartered-in and an order book of five newbuildings in addition to two vessels chartered-in to be delivered in 2017.