Hafnia Limited's Q4 2024: Contradictions in Blackwell Production, Margins, and Strategic Outlook

These are the key contradictions discussed in Hafnia Limited's latest 2024 Q4 earnings call, specifically including: Blackwell production and supply chain constraints, gross margin expectations, and issues with product roadmap execution and supply chain:



Strong Financial Performance:
- Hafnia reported a net profit of $79.6 million for Q4 2024, with a full-year net profit of $774 million.
- This strong performance was driven by core operational resilience and the ability to generate value through market cycles.

Market Position and Fleet Strategy:
- The company operates one of the largest and most diversified product and chemical tanker fleets, with 125 vessels having a net asset value of approximately $3.8 billion.
- Hafnia's strategic fleet positioning and long-term sustainability initiatives, such as introducing dual-fuel methanol chemical IMO II MRs, contributed to its success.

Shareholder Returns and Capital Allocation:
- Hafnia completed a share buyback program, repurchasing approximately 14.4 million shares at approximately 70% of NAV for a total consideration of $76.7 million.
- The company maintained a strong cash position with a balance of $195 million``` at the end of the year, supporting its disciplined capital allocation strategy.

Market Outlook and Supply Demand Balance:
- Hafnia anticipates a balanced supply outlook due to potential sanctions and reduced newbuilds, suggesting a supportive environment for the product tanker segment in 2025.
- This outlook is driven by factors such as increasing global oil demand, lower refinery margins, and potential impacts from the OFAC sanctions on the overall market supply-demand balance.