Hafnia Limited: Share Buyback Program Finalized

Hafnia Limited (HAFNI, HAFN), a leading tanker owner and operator, has successfully concluded its share buyback program. The program, launched on December 2, 2024, aimed to repurchase up to 18,000,000 shares, representing approximately 36% of the company's issued share capital, for a total amount of up to USD 100,000,000. The program was executed by Pareto Securities AS and its subsidiary, Pareto Securities Inc., based on a non-discretionary mandate.

The final transaction details, announced on January 27, 2025, revealed that Hafnia repurchased a total of 14,382,255 shares at an average price of USD 5.33 per share. The weighted average price for the shares was USD 5.33, and the total consideration for the repurchased shares was USD 76,694,601. The issuer's holding of repurchased shares increased to 14,884,613, corresponding to 2.90% of Hafnia’s total issued share count.

The share buyback program was a strategic move by Hafnia, demonstrating the company's commitment to creating value for shareholders. By repurchasing shares, the company effectively invests in itself, signaling confidence in its future prospects. The program also reduces the number of outstanding shares, which can increase the earnings per share (EPS) for remaining shareholders and potentially lead to an increase in the share price.

Hafnia's share price responded positively to the share buyback program, with the company's shares increasing from around USD 5.35 at the start of the program to USD 5.63 by January 13, 2025. After the completion of the program, Hafnia's share price continued to rise, reaching USD 5.75 on February 1, 2025. This positive response can be attributed to the market's confidence in the company's financial position and the belief that the shares are undervalued.

The share buyback program has also had a significant impact on Hafnia's shareholder base. With fewer shares outstanding, the ownership percentage of each remaining share increases, leading to increased shareholder value. The program also provides Hafnia with strategic flexibility, as the company can choose to hold the repurchased shares or distribute them to shareholders at a later date.

In conclusion, Hafnia Limited's share buyback program was a successful and strategic initiative that created value for shareholders and demonstrated the company's confidence in its future prospects. The positive market response to the program and the increase in Hafnia's share price indicate that investors view the company's decision favorably. As Hafnia continues to execute its strategic vision, investors can expect the company to maintain its focus on creating shareholder value and enhancing its competitive position in the tanker industry.