OB:HAFNIA

Stock Analysis Report

Executive Summary

Hafnia Limited, an investment holding company, owns and operates oil product tankers.


Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

How has Hafnia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HAFNIA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

HAFNIA

2.6%

NO Oil and Gas

4.0%

NO Market


1 Year Return

n/a

HAFNIA

-34.8%

NO Oil and Gas

-21.7%

NO Market

Return vs Industry: Insufficient data to determine how HAFNIA performed against the Norwegian Oil and Gas industry.

Return vs Market: Insufficient data to determine how HAFNIA performed against the Norwegian Market.


Shareholder returns

HAFNIAIndustryMarket
7 Day-1.9%2.6%4.0%
30 Day-3.5%10.8%-4.3%
90 Day-41.6%-30.0%-22.0%
1 Yearn/a-31.0%-34.8%-18.3%-21.7%
3 Yearn/a3.8%-9.3%5.1%-7.9%
5 Yearn/a6.7%-14.8%17.6%-8.7%

Price Volatility Vs. Market

How volatile is Hafnia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hafnia undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HAFNIA (NOK16.4) is trading below our estimate of fair value (NOK55.08)

Significantly Below Fair Value: HAFNIA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HAFNIA is poor value based on its PE Ratio (7.6x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: HAFNIA is good value based on its PE Ratio (7.6x) compared to the Norwegian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: HAFNIA is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: HAFNIA is overvalued based on its PB Ratio (0.5x) compared to the NO Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Hafnia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAFNIA's forecast earnings growth (29.9% per year) is above the savings rate (0.7%).

Earnings vs Market: HAFNIA's earnings (29.9% per year) are forecast to grow faster than the Norwegian market (21% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HAFNIA's revenue is expected to decline over the next 3 years (-7.1% per year).

High Growth Revenue: HAFNIA's revenue is forecast to decline over the next 3 years (-7.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAFNIA's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Hafnia performed over the past 5 years?

124.7%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: HAFNIA has high quality earnings.

Growing Profit Margin: HAFNIA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if HAFNIA's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: HAFNIA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HAFNIA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (39.2%).


Return on Equity

High ROE: HAFNIA's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Hafnia's financial position?


Financial Position Analysis

Short Term Liabilities: HAFNIA's short term assets ($334.8M) exceed its short term liabilities ($320.2M).

Long Term Liabilities: HAFNIA's short term assets ($334.8M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: HAFNIA's debt to equity ratio (110.1%) is considered high.

Reducing Debt: Insufficient data to determine if HAFNIA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HAFNIA's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: HAFNIA's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Hafnia's current dividend yield, its reliability and sustainability?

14.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HAFNIA's dividend (14.61%) is higher than the bottom 25% of dividend payers in the Norwegian market (3.73%).

High Dividend: HAFNIA's dividend (14.61%) is in the top 25% of dividend payers in the Norwegian market (8.02%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HAFNIA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HAFNIA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HAFNIA's dividends in 3 years are forecast to be covered by earnings (54.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Mikael Øpstun Skov (56yo)

1.25s

Tenure

Mr. Mikael Øpstun Skov has been Chief Executive Officer of Hafnia Tankers Ltd since 2019. He serves as the Chief Executive Officer of Tankers Inc. A/S and Hafnia Management A/S. He served as the Chief Exec ...


Leadership Team

NamePositionTenureCompensationOwnership
Mikael Øpstun Skov
Chief Executive Officer1.25yrsno datano data
Perry Van Echtelt
Chief Financial Officer2.42yrsno datano data
Dorte Christensen
Vice President of Operations & Claimsno datano datano data
Ralph Juhl
Executive Vice President of Technicalno datano data0.021% $1.2m
Thomas Andersen
Executive VP of EVPno datano datano data
Jens Christophersen
Executive Vice President of Commercial1.25yrsno data0.012% $693.9k
Soren Jensen
Executive Vice President of Asset Managementno datano datano data

1.3yrs

Average Tenure

Experienced Management: HAFNIA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HAFNIA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: HAFNIA only recently listed within the past 12 months, with total shares outstanding growing by 183.3% in the past year..


Top Shareholders

Company Information

Hafnia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hafnia Limited
  • Ticker: HAFNIA
  • Exchange: OB
  • Founded:
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: kr5.957b
  • Shares outstanding: 363.21m
  • Website: https://www.bwtankers.com

Location

  • Hafnia Limited
  • Clarendon House
  • 2 Church Street
  • Hamilton
  • HM 11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HAFNIAOB (Oslo Bors)YesCommon SharesNONOKApr 2019
HAFNIOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKApr 2019

Biography

Hafnia Limited, an investment holding company, owns and operates oil product tankers. It transports oil and oil products to national and international oil companies, and chemical companies, as well as trading and utility companies. The company provides ship owning, ship-management, chartering, investment, and agency office services. As of November 5, 2019, the company operated a fleet of 180 vessels in pools, including newbuilds, of which 102 are owned or chartered-in including six owned LR2s, 27 owned and 9 chartered-in LR1s, 41 owned and six chartered-in MRs, and 13 owned Handy vessels. The company was formerly known as BW Tankers Limited. The company is based in Hamilton, Bermuda. Hafnia Limited operates as a subsidiary of BW Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 02:10
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.