Hafnia Q1 Earnings Call Highlights

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Hafnia (NYSE:HAFN) reported what Chief Executive Officer Mikael Skov described arsenic an “extraordinary bully quarter,” with first-quarter nett net of $179.7 cardinal and absorption indicating that the 2nd 4th is tracking stronger.

Speaking during the company’s Q1 results presentation, Skov said the merchandise tanker proprietor has benefited from beardown freight markets driven by longer voyages, shifting commercialized flows and geopolitical disruption astir the Strait of Hormuz. He said the marketplace “has much legs” and that Hafnia expects structural factors to enactment tanker request done the year.

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“Q2 already looks to beryllium a amended quarter, stronger 4th than Q1,” Skov said. “All successful all, we’ve been highly satisfied with what we’ve seen truthful far.”

Product tanker request rises arsenic commercialized routes lengthen

Hafnia owns and charters in, connected a financially committed basis, astir 118 merchandise tankers and commercially operates different 60 vessels for third-party owners, giving it a planetary operating fleet of astir 180 ships. The institution transports refined lipid products specified arsenic gasoline, diesel and pitchy fuel.

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Skov said disruption successful the Middle East has forced refined products to question longer distances, expanding ton-mile request for vessels. He cited examples of cargoes that would usually load successful the Middle East and determination to Europe oregon Asia alternatively being sourced from the U.S. Gulf and shipped implicit overmuch longer distances.

“This is the cardinal alteration successful trading patterns that we person seen and benignant of 1 of the main reasons wherefore the marketplace has go truthful strong,” Skov said.

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He said the merchandise tanker marketplace often reacts earlier crude tankers during periods of uncertainty due to the fact that consumers question finished fuels immediately. Crude lipid indispensable archetypal beryllium transported to refineries and processed earlier it tin scope extremity users, portion merchandise tankers transportation fuels that are acceptable for consumption.