The book value of the fleet, including newbuildings and remaining capex, as of 30th June, 2017 was $1,093.4 mill. As of the same date, Hafnia had $64.9 mill in cash and $576.4 mill of bank debt.
Hafnia’s share of the remaining capex for the newbuildings was $35.2 mill and as of the end of June, the company had a firm term sheet from a first-class bank to fund the newbuildings, and in combination with the cash balance, the newbuild programme was fully financed.
No debt maturities are due before January, 2022, the company said.
The overall product tanker market weakened further during the second quarter of 2017, reflecting the ongoing imbalance between supply and demand of tonnage. High inventories and reduced trading activity did not support any additional increase of freight rates.
However, we did see the start of reduced oil inventories by the end of 2Q17, which in combination with a reduced orderbook, as well as growing oil consumption, are needed for an improved market, the company said.
Gross earnings during 1H17 were about $14,650 per LR1 per day, $14,700 per MR and $13,175 per SR per day.
As of 30th June, 2017 Hafnia’s fleet consisted of 37 owned and five chartered-in vessels. Vista Shipping, of which Hafnia Tankers has a 50% ownership, has two LR1s on order, with expected deliveries in 1Q19.
Commercial management of the product tankers is handled by Hafnia Management. The three divisions - LR1, MR, and SR, have 111 vessels under management, including forward commitments, Hafnia said.