Welcome to Hafnia's Fourth Quarter 2025 Financial Results Presentation. We will begin shortly. You will be brought through today's presentation by Hafnia's CEO, Mikael Skov; CFO, Perry Van Echtelt; Soren Winther, VP, Commercial; and Thomas Andersen, EVP, Head of Investor Relations. They will be pleased to address any questions after the presentation. [Operator Instructions] During this conference call, some statements may be considered forward-looking, reflecting management's current expectations. These statements involve risks, uncertainties and other factors, many of which are beyond Hafnia's control that could cause actual results, performance or plans to differ significantly from those expressed or implied. Additionally, this conference call does not constitute an offer or solicitation to buy or sell any securities. With that, I'm pleased to turn the call over to Hafnia's CEO, Mikael Skov.

Thank you, and hello, everyone. Thanks for joining Hafnia's fourth quarter earnings call. I'm Mikael Skov, the CEO of Hafnia. With me today are our CFO, Perry Van Echtelt; our VP of Commercial, Soren Winther; and our Head of Investor Relations, Thomas Andersen. We released our fourth quarter and full year 2025 results earlier today, and you can find them on our website. On today's call, we'll walk you through our Q4 highlights, the latest market developments and our outlook and then give an update on our financial position. We'll also touch on our sustainability initiatives before opening for questions. Let's move to the next slide. Before we proceed, I would like to go through our safe harbor statement. The information discussed on this call is based on the information we have today, which may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from these statements. Nothing presented on this call should be construed as an offer to buy or sell securities. Thank you for your attention. With that, let's begin with a review of our results for the quarter. Next slide, please. So we are now on Slide #4. The product tanker market started 2025 on a softer note, but strengthened through the second half and remained seasonally firm in the fourth quarter. This helped us close the year on a strong footing. In Q4, we delivered our strongest quarter of 2025 with a net profit of $109.7 million. For the full year, that brings us to a net profit of $339.7 million, another year of solid performance. As part of our fleet renewal strategy, we continued divesting older vessels at attractive prices. So far in Q1, we've sold 2 MR vessels and committed to sell 2 more MRs, 4 LR1s and 4 Handys.…

Thanks for that, Soren. If we move to the next slide, please. We delivered our strongest quarterly results of 2025, supported by the seasonally firm market conditions in Q4, driven by growth in oil production and export volumes. For the fourth quarter, we reported an adjusted EBITDA of $149.7 million and a net profit of $109.7 million, which includes $9.5 million from gains on vessel sales. Our fee-based businesses contributed $6.9 million in fee income. So for the full year 2025, we recorded a net profit of $339.7 million with a return on equity of 14.8% and a return on invested capital of 11.2%. If we then move to the next page to the balance sheet. Our net LTV ratio increased from 20.5% at the end of the third quarter to 24.9% at the end of Q4. This increase was primarily due to our investment in Torm, which raised the debt level and was included at market value in the calculation. This was partially offset by higher vessel valuations and a strong operational cash flow generation. We continue to maintain a strong liquidity profile with $104 million in cash on hand and an additional $324 million in undrawn capacity for a total of around $430 million of availability. We move to the next page on to the operating summary. We continue to generate strong operating cash flows and TCE rates have improved for the fourth consecutive quarter since Q4 2024 with a strong momentum continuing into the first quarter of 2026. For Q4, TCE income stood at $259 million with an average TCE of $27,346 per day. As in the previous quarters throughout 2025, our Q4 results were impacted by scheduled dry dockings, which accounted for approximately 550 off-hire days. This was around 120 days higher than expected due to unscheduled repairs for 3 vessels. We expect dry docking activity to continue into 2026, but the number of off-hire days will decline significantly compared to 2025. Across '25, we dry docked around 40 vessels and expect to complete around another 20 vessels in 2026. So with most of the dry dockings behind us and freight markets recovering, we're well positioned for improved utilization and stronger earnings momentum throughout 2026. Then let's move on to the next slide. The recovery in freight market is further evident here. As of the 11th of February, we have secured 76% of our Q1 earning days at an average rate of $29,979 per day, well above our operational cash flow breakeven for '26 of below $13,000 per day, highlighting the strong earnings leverage in the current market. For the entire year of 2026, we already have 33% of earning days covered at an average rate of $27,972 per day as most of our LR2s have secured long-term time charter contracts. So based on Q1 and full year covered rates as well as looking at analyst consensus, 2026 points towards another year of strong earnings. Then Mikael, over to you for the next few slides.

Thank you. We're on Slide 25. Let me now turn on Hafnia's sustainability strategy and goals. As a global leader in the product tanker segment, we take our role in shaping the maritime ecosystem seriously. We maintain the highest operational and environmental standards and are committed to making a positive impact. Across the supply chain, we work closely with strategic partners, regulators and international bodies to co-develop solutions to the industry's challenges. Moving on to the next slide. Here, we showcase some of the strategic initiatives we've been working on to strengthen our competitive edge. For example, we are advancing our technological capabilities through our strategic investment in Complexio. Complexio acts as an enterprise intelligence layer that automatically understands how an organization operates by mapping human behavior across its system, enabling proactive decision support and intelligent automation across the enterprise. Next slide. Looking ahead, we remain encouraged by the fundamentals of the product tanker market. Although 2026 will see a significant number of newbuild deliveries, the impact of sanctioned vessels and the ongoing LR2 transition will help ease effective market supply. I'm confident in the strength of the underlying demand fundamentals and proud that we have continued to deliver solid results while maintaining our 80% dividend payout ratio, recording a total shareholder return of 33% over the past year. We will continue to exercise disciplined financial management and pursue strategic opportunities that enhance our competitive position. With that, our presentation concludes. I'd now like to open the call for questions.

[Operator Instructions] Okay. Great. So let's get started. Frode can I ask you to unmute yourself, please?

Yes. I wanted to first discuss the LR2/crude Aframax spread we're seeing today. Are you surprised that given the switching we have seen that there's still $25,000 per day premium to crude Aframaxes. And does that mean that we should expect even more LR2s to move into dirty trades? Søren Winther: Well, it is really happening as we speak in any case. So the spread between the LR2s and the Aframaxes and the larger segments in reality already now causes more ships to enter into Aframax trade for sure. From a spot market perspective, it's more or less to the tune of an open up from the Middle East at the moment with the middle distillate coming over. You hardly see any of the ships coming back from the Western Hemisphere where once they get to the other side, they actually enter into the Aframax trade. So the transition is still going on. And as some of the earlier slides showed, we're actually having the lowest count of clean trading LR2s for a number of years, which makes the market for the immediate month ahead super, super tight in the Middle East.

Yes, right. So I wanted to -- I'm curious about your view on the seasonality here because Q1 and Q4 is traditionally viewed as like the highest points. But given what's happening in the crude market, super strong crude rates, Aframax is very strong. And as you said, LR2 is still moving into dirty trades, do you -- could we see like shifts in the seasonality that maybe Q2 would be better than normal or et cetera? Søren Winther: I think there's a lot of political or geopolitical unrest that is linked to this and nonetheless, the crisis ongoing in Iran versus the U.S. So I think there is a risk premium that relates to some of the hype that you're seeing at the moment. Having said that, I mean, we are in the quarter where most delays are appearing, bad weather and really reflected on the earnings for sure. On a fundamental basis, I think the Aframaxes, if we just focus on those, Venezuela coming into play, which is a Suezmax, Aframax place, gives an elevation to the market and more ton mile really on the Aframaxes. You have the Trans Mountain pipeline from Vancouver over to the Eastern Hemisphere. That has been another addition that really happened last year, but it still has its effect. And then you have the export out of South America coming into PADD 3 also related to the Aframaxes. So on a general note, I think there's a lot of good things, including sanctioning speaking for the Aframaxes. And yes, on the basis of geopolitics, you could have a second quarter that just looks stronger than normal historical averages, I would say.

Yes. Interesting. On the MRs, are we seeing any effects from this EU regulations that came in January 1, I guess, of this -- that the refineries can't use Russian crude. So maybe the Turkish refined products are shifting away from Europe. Are you seeing that impacting the MRs? Søren Winther: I think it's more a global perspective on a general note where you're seeing more legit barrels having to travel on the mainstream fleet on a general note. Looking at the Europe and Mediterranean for the MRs, that's probably the weakest area, and it has been for a long time, one because of the lag in volume coming out of Russia that we used to have years back. And second of all, because of the export flows maybe out of Turkey as well. I don't think it means that much in the space. But lagging in Europe, then again, massive supply out of the U.S. Gulf that is really driving the entire Western Hemisphere.

Do we have any more questions via the raise hand function I'm not actually seeing anything there. So I will then move on to check the chat. So we have a question from Tony. So any sign currently of increased scrapping of sanctioned vessels? Perhaps, Soren, you could take that one. Søren Winther: Yes, I can do that. I think we have seen a couple of ships that has been actually allowed to be scrapped in India. But to my knowledge, it's only a couple so far. I think the important bit here is that the Indian seems to have made it clear that they will be able to accept scrapping of sanctioned tonnage. And that's the first step rather than having taking bombs sitting idle in base around the world. So I don't think we can say that there is a lot of ongoing scrapping yet, but at least the potential to have them has been opened.

Okay. Thank you, Soren. Do we have any more questions coming through in either the chat or the Q&A function? Thank you, [ Tony ], for your comment. We have another question coming through on any reason why Hafnia isn't moving more LR2 into the Aframax trade. Perhaps Soren, maybe back to you. Søren Winther: Yes. There's one fundamental reason for that. We have decided to charter out on a long-term charter or LR2s rather than moving into the spot trade, which is really a part of our housekeeping hedge strategy for Hafnia as a general, and the value really lies on the bigger ships. So that's why we have done that rather than going into dirty trade.

Okay. Great. Thank you, Soren. I actually, I'll give it a few more seconds to see if there's anything coming through in either the chat or the Q&A. Actually, we have another question coming through from [ Paul ] on the raise hand function. Can you please unmute yourself?

Yes. I just -- I guess you have the same dynamics on the LR1s, right? So there's a large portion of the LR1s that trade dirty as well. Isn't that correct? Søren Winther: Yes. The Panamax market has been moving from literally $20,000 to $60,000, maybe even $70,000 levels with very, very strong earnings. So we are benefiting from that with our pool together with Mercuria in the U.S. Gulf. And it's only an 85 ship market. It's not really a big market. So when you have stuff like Venezuela coming into play with Diluent and Naphtha going into getting the crude out and you take 10% of the fleet and dedicated for that, you see a market that moves quite rapidly. So yes, it has been a very good move.

Yes. So that's important. I mean, the Q1 guidance or bookings, I guess, is quite strong on LR1s, and there's no reason why the same let's say, crude switching, if that's the right word, is not benefiting you, right? The LR1s will also benefit. And by sequence, when LR1s go up, then that impacts MRs, right? Isn't that the dynamic? Søren Winther: Yes. And that's what we are seeing at the moment. The lack of LR2s in the Middle East is going to spill down to the LR1s and actually, the effect is already happening on the MRs as well. So for sure, when you draw everything short, market is bound to pop, right?

We have another question coming through -- I'm moving on to the Q&A section. So we have one. Can you please comment on your commercial performance versus peers like Torm and MRs during Q4 '25 and Q1 2026? Soren, is that one for you, yes? Søren Winther: I don't know if it's for me or Mikael. I think it's for me. I had a quick review of the Torm numbers coming out today. And comparably, if you try and make apples-to-apples fleet and so on, I see that as a close run-up. We outperform on 1 or 2 segments and very close on all the others. So I think it's a tie, to be honest.

Okay. Thank you, Soren. We have another question, which I think is for Mikael. Can you elaborate on the status of Torm shareholding? What can we expect?

Yes. So I mean, I think we try to say as much as we can basically in the material we sent out already. Well, first of all, you can say that the shareholding on an isolated basis, of course, now has turned out to be a good investment. So at least when we look at the share price today versus what we paid and invested, it's obviously -- it looks great on paper. I think when it comes to any other issues, all I can say is that when we look at consolidation in general, what we are looking at is really trying to make 1 plus 1 becoming 3. So in other words, the reason why we've been advocating consolidation actually for years is that when we look at valuations and multiple expansions on companies, it's pretty clear that when you're a $5 billion or $6 billion shipping company versus $2 billion to $3 billion isolated, there's a significant difference through the cycles on the value -- net asset value versus pricing and also on a multiple basis. So we think there's immediate uplift that way, but there's also a lot of synergies around to be harvested. And our view hasn't really changed that when you look into the future and you look into an energy complex that will change and for companies that are purely tankers alone, there's also a new element in terms of how do you position yourself, both in terms of investments in dual fuel engines, but also in terms of potentially running different types of ships that are burning different types of potentially oil or carrying different types of cargoes. And for that, you need scale. And I think you need both scale and you also need a capital market track record that is good. So I think for all these purposes, we see a lot of synergies on cost side. We see a lot of synergies on revenue side for sure. But we also, as I said, see a lot on immediately value uptick on valuations in general, which again would increase dividend capacity for shareholders.

Okay. Thank you, Mikael. And I believe you've also covered a similar question in the chat on our TOM investment and future M&A strategy. So I'll give it a few more seconds to see if anything else comes through in either the Q&A or the chat. And there's nothing in the raise hand function either. Okay. So then we have come to the end of today's presentation. Thank you for attending Hafnia's Fourth Quarter 2025 Financial Results Conference Call. You can find more information available on our website, www.hafnia.com. Thank you, everyone, for coming.