Hafnia (NYSE:HAFN) reported a significant year-over-year decline in its full-year 2025 net profit, even as a robust fourth-quarter performance allowed the product tanker giant to reward shareholders with a substantial dividend.
The company's full-year net profit fell to $339.7 million, or $0.68 per share, representing a sharp drop from the $774 million, or $1.52 per share, recorded for the full year 2024.
Despite the annual contraction, the final three months of the year showcased operational resilience.
Hafnia posted a fourth-quarter net profit of $109.7 million, or $0.22 per share, climbing steadily from $79.6 million in the same period a year prior.
This late-year surge was largely driven by an expansion in Time Charter Equivalent (TCE) earnings, which grew to $259 million, yielding a healthy average daily TCE of $27,346.
Adjusted EBITDA for the quarter also advanced, reaching $149.7 million compared to $131.2 million in the fourth quarter of 2024.
Meanwhile, earnings from fee-based businesses held steady at $6.9 million.
Reflecting strong liquidity and a commitment to shareholder returns, Hafnia authorized an 80% dividend payout ratio for the fourth quarter.
The company will distribute a total of $87.7 million, equivalent to $0.1762 per share.
The company's underlying valuation remains robust, closing the quarter with a Net Asset Value of approximately $3.5 billion, which translates to roughly $7.04 per share.
As of mid-February 2026, Hafnia reported that it had already covered 76% of its total earning days for the first quarter at an elevated average rate of $29,979 per day.
This accelerated booking pace and higher day rate suggest a highly favorable near-term pricing environment for its modern fleet of over 120 vessels.