Tanker operator Hafnia posted a net profit of US$91.5 million in the third quarter of 2025, the company's strongest quarterly result so far in 2025, according to CEO Mikael Skov.
"This quarter’s performance also reflects the impact of several vessels undergoing drydocking, resulting in approximately 740 off-hire days," said Skov. "This was around 230 days higher than expected, mainly due to dry dock delays and two vessels undergoing special cargo tank recoating during the quarter."
"While several vessels are scheduled for drydocking in the coming quarters, we expect off-hire days to decrease to around 440 in the fourth quarter."
At the end of the third quarter, Hafnia's net asset value (NAV) stood at approximately US$3.4 billion, translating to an NAV per share of about US$6.76. The company's net loan-to-value (LTV) ratio improved from 24.1 per cent in the second quarter to 20.5 per cent, supported by strong operational cashflows.
Approximately US$100 million was used to repurchase vessels under sale-and-leaseback financings. In addition, vessel market values have also recorded a slight uptick compared to the previous quarter.
"As part of our ongoing fleet renewal policy, we divested four older vessels during the period," Skov continued. "In September, we sold the 2011-built MR vessel Hafnia Andromeda, followed by the sale of the 2012-built MR Hafnia Lupus in October, and both the 2010-built MR Hafnia Nordica and 2011-built MR Hafnia Taurus in November.
"In September, we announced a preliminary agreement to acquire 14.45 per cent of Torm shares from Oaktree. This was followed by a binding share purchase agreement, and we are now waiting for the appointment of a new independent board chair at Torm before we can complete the acquisition."
As winter approaches, seasonal demand is expected to strengthen the oil market, supporting higher earnings through increased tonne-mile activity and operational delays. The early part of the fourth quarter has been marked by significant geopolitical developments, including ongoing sanctions and regional conflicts that continue to alter global trade flows.
Recent positive developments, such as the USA-China agreement to suspend special port fees for one year, and the ceasefire between Israel and Gaza, should help reduce market fragmentation and contribute to greater stability across trade routes.
"On the supply side, the outlook for product tankers remains constructive," said Skov. "Fleet growth in Q3 was minimal despite ongoing newbuild deliveries, largely due to vessel sanctions and the transition of LR2s into dirty trading, which has tightened availability in the clean product segment.
"In addition, tonnage supply crossing over from the crude sector has decreased sharply into Q4, supported by a strong crude tanker market. Overall, these dynamics point to a favourable environment for product tanker earnings through the rest of the year, with solid fundamentals likely to carry into early 2026."
