A global shipping company that owns and operates a fleet of around two hundred tanker vessels, carrying refined petroleum products like gasoline and diesel as well as chemicals for oil companies, chemical firms, and traders. Its roots trace to 2010, when former executives of the Danish shipper TORM founded Tankers Inc., which merged in 2013 to form Hafnia Tankers in Copenhagen and then combined with BW Tankers in 2019 to become Hafnia Limited, now based in Singapore. The name comes from Hafnia, the Latin name for Copenhagen, which itself derives from the Danish word for harbor.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Hafnia's 2025 net income fell 56% to $339.7M as freight rates retreated from 2024's elevated levels.
Freight rates normalized, and profit followed. fell 27% to $1,421.8M and dropped 56% to $339.7M as per operating day declined to $25,205 from $33,000, driven by a return to more typical trade flows after the Red Sea disruptions of 2024. The company used the year to reposition, acquiring a 13.97% stake in TORM plc and announcing an exit from the Handy .
Key takeaways
fell 56% to $339.7M, driven by a 31% decline in voyage charter as freight rates moderated from 2024's elevated levels.
per operating day dropped to $25,205 from $33,000, with all segments declining; LR1 and Handy TCE income each fell 34%.
The company acquired a 13.97% stake in TORM plc for $311.4M, described as an investment for potential strategic opportunities.
Hafnia announced plans to wind down its Handy and LR2 pool operations, exiting the Handy upon the sale of its vessels and employing most owned LR2 vessels on time charters.
decreased 41% to $602.9M, while year-end liquidity stood at $427.8M, which management expects to cover needs for at least 12 months.
The product tanker supply outlook is positive, supported by an aging global fleet, LR2 migration to crude trades, and a growing number of sanctioned vessels.
What changed
The spot TCE rates flagged as the primary earnings driver in FY2024 fell across all segments, with the overall per operating day declining 24% to $25,205 as Red Sea disruptions eased and trade flows normalized.
The risk of a return to normal Suez Canal transit reducing ton-mile demand materialized, contributing to the rate decline from 2024's elevated levels.
The proposed U.S. port fees on Chinese-built vessels flagged in FY2024 remain a risk; the filing notes they could significantly increase operating expenses with an uncertain ability to pass costs to customers.
What to watch
Spot TCE rates across LR2, LR1, MR, and Handy segments, which drive the bulk of given 74% short-term spot market exposure.
Execution of the Handy exit and LR2 pool wind-down, including vessel sale proceeds and the shift of owned LR2 vessels to time charters.
Progress and strategic outcome of the 13.97% investment in TORM plc, including any further share purchases or a potential transaction.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Hafnia manages freight, fuel, interest rate, and currency risks via time charters, derivatives, and a fixed-rate debt policy, with immaterial FX exposure.
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Freight rate risk is partially mitigated by fixing ~7% of 2025 shipping on time charters and using freight forward agreements with a $19.2M notional at year-end.
A $1,000/day change in spot rates across vessel classes would impact by $31.3M, while a $1/metric ton fuel price move would affect net results by $0.8M.
The Seascale Energy bunker procurement joint venture with Cargill, expected to launch in Q2 2025, was not mentioned in the FY2025 filing sections provided.
Impact of new U.S. and Chinese port fees on Chinese-built vessels on operating costs and the company's ability to pass those costs through to customers.
Interest rate risk is managed by targeting 40–75% fixed-rate exposure; a 50 parallel shift would lower/higher net results by $1.5M with hedges and $2.3M without.
Currency risk is assessed as immaterial because , debt, and vessel values are USD-denominated, though FX contracts hedge administrative cost volatility.
Credit risk is concentrated among charterers and financial counterparties, mitigated by credit evaluations, high-quality institution policies, and an provision matrix.
Liquidity is maintained through cash deposits and undrawn and borrowing base facilities, while inflation is flagged as a significant cost risk without contractual adjustment mechanisms.
Hafnia's earnings are highly sensitive to tanker spot rates, geopolitical disruptions, and evolving environmental regulations.
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A significant 74% of the Hafnia Fleet operates in the volatile short-term , making highly susceptible to fluctuations in charter and freight rates.
Geopolitical conflicts, particularly the closure of the Strait of Hormuz and disruptions in the Red Sea, directly threaten vessel safety, increase operating costs, and alter global trading patterns.
New and proposed U.S. and Chinese port fees targeting Chinese-built or -linked vessels could significantly increase operating expenses for the Combined Fleet, with an uncertain ability to pass costs to customers.
The company's 13.97% investment in TORM plc for potential strategic purposes introduces risks related to negotiation, completion, and potential adverse business reactions.
Evolving environmental regulations like the EU ETS and FuelEU Maritime impose new compliance costs and liabilities, with uncertain future pricing and tax implications for emission allowances.
A high customer concentration exists, with the top five customers representing 30% of total , exposing the company to significant loss if a major customer defaults.
Hafnia is a leading global operator of chemical and product tankers, transporting oil and oil products through a combined fleet of 187 vessels across four main segments.
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The company operates a Combined Fleet of 187 vessels, including 99 owned Hafnia Vessels, 9 time-chartered vessels, and 16 vessels from joint ventures, with a total carrying capacity of 10.3 million .
Its fleet is divided into four main segments: LR2, LR1, MR, and Handy, with the Hafnia Fleet having an average age significantly younger than the world fleet average in each .
Hafnia commercially manages nine tanker pools, primarily under a 'disponent-owner' model, where it acts as time charterer and passes all and losses to pool participants while earning management fees.
The company pursues a strategy of continuous fleet renewal through acquisitions and divestments, and recently acquired a 13.97% stake in TORM plc for investment and potential strategic opportunities.
It operates globally with offices in Singapore, Copenhagen, Houston, Mumbai, Dubai, and Monaco, and its vessels are subject to extensive international environmental regulations including IMO 2020, EU ETS, and CII ratings.
The company intends to wind down its Handy and LR2 pool operations, exiting the Handy upon the sale of its vessels and employing the majority of its owned LR2 vessels on time charters.
Hafnia's 2025 profit fell 56% to $339.7M as TCE income dropped 31% on normalized trade flows and lower freight rates.
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(Hafnia Vessels and TC Vessels) decreased 27% to $1,421.8M, driven by a 31% decline in voyage charter revenue as freight rates moderated from 2024's elevated levels.
per operating day fell to $25,205 from $33,000, with all segments declining; LR1 and Handy TCE income dropped 34% each.
Vessel operating expenses rose 1% to $282.1M, with per-day costs increasing to $7,607 due to higher crewing and insurance costs, particularly in the LR1 and MR segments.
Net decreased 41% to $602.9M, while investing activities used $363.7M primarily due to a $311.4M acquisition of TORM shares and higher drydocking costs.
Liquidity stood at $427.8M as of year-end, and the company expects existing resources and operating cash flows to cover liquidity needs for at least the next 12 months.
The product tanker supply outlook is positive, supported by an aging global fleet, LR2 migration to crude trades, and a growing number of sanctioned vessels.