HAFNIA LIMITED: Ex Dividend USD 0.0294 on the Oslo Stock Exchange Today

Hafnia Limited (HAFNI), a leading product tanker company, is set to distribute a quarterly dividend of USD 0.0294 per share today, following its strong performance in the fourth quarter of 2024. This dividend distribution is part of the company's commitment to returning capital to shareholders while maintaining a consistent payout ratio.

In the fourth quarter of 2024, Hafnia demonstrated resilience in navigating a softened product tanker market, delivering a net profit of USD 79.6 million. This strong performance, coupled with the company's fee-generating business segments and net asset value (NAV) of approximately USD 3.8 billion, has positioned Hafnia to maintain its dividend payout ratio of 80% for the quarter.

Hafnia's dividend payout ratio is significantly higher than the average for companies in the shipping industry, indicating the company's commitment to returning capital to shareholders. This high payout ratio, combined with the company's share buyback program, which saw the repurchase of approximately 2.8% of the outstanding shares at around 70% of NAV, further enhances shareholder value.

Hafnia's long-term growth strategy involves investing in fleet renewal and sustainability initiatives, such as the acquisition of dual-fuel Methanol Chemical IMO-II MRs and the launch of Seascale Energy, a joint venture with Cargill to transform marine fuel procurement services. These investments align with the company's commitment to sustainable growth and solidifying its position as a global leader in the product and chemical tanker market.

Despite the recent market dynamics and the company's strong performance, Hafnia's dividend yield of 27.05% appears to be sustainable. The company's high cash flow generation, strong profit margins, and commitment to fleet renewal and sustainability initiatives support the dividend yield. Additionally, the company's share buyback program indicates confidence in its financial position and the undervalued nature of its shares.

In conclusion, Hafnia Limited's ex dividend of USD 0.0294 on the Oslo Stock Exchange today is a testament to the company's strong performance and commitment to returning capital to shareholders. With a dividend yield of 27.05% and a consistent payout ratio, Hafnia's dividend policy aligns with its long-term growth strategy, ultimately enhancing shareholder value.