Hafnia Limited

Hafnia Limited (NYSE: HAFN) operates as a tanker-focused shipping group with investment holding as its core activity. The Company’s operations are organised across multiple vessel segments, including Long Range II (LR2), Long Range I (LR1), Medium Range (MR), Handy, and Specialised. The LR2 segment comprises vessels ranging from approximately 85,000 to 124,999 deadweight tons (DWT) and is primarily engaged in the seaborne transportation of clean petroleum products.

As per Kalkine’s Dividend Income Report published on ‘HAFN’ on Jan 21,2026, Kalkine provided an ‘Buy’ stance on the stock at USD 5.76 based on fundamental analysis and the stock price has now moved up by ~ 16.32% since then.

Noted below are the details of support and resistance levels provided in our previous report:

Rationale:

• Vessel Valuations Reflect an Elevated Cycle: Broker-assessed fleet values increased modestly quarter-on-quarter, lifting net asset value to approximately USD 3.4 billion, equivalent to USD 6.76 per share, indicating asset prices are sitting near cyclical highs relative to recent history
• Balance Sheet Strength Has Normalised Leverage: Net loan-to-value declined to 20.5% by the end of Q3 2025, driven by strong operating cash flows and repayment of sale-and-leaseback liabilities, suggesting capital structure has moved into a more conservative range
• Asset Recycling Executed at Favourable Market Levels: The divestment of four older MR vessels during Q3–Q4 2025 aligns with firm second-hand tanker prices, reinforcing the company’s ability to rotate capital while market liquidity remains supportive
• Earnings Visibility Is Largely Secured Near Peak Rates: As of mid-November 2025, 71% of Q4 earning days were fixed at an average rate of USD 25,610 per day, reflecting a period of strong freight pricing already embedded into near-term cash generation
• Shareholder Distributions Signal Capital Maturity: The application of an 80% payout ratio in Q3 2025, consistent with Hafnia’s leverage-linked distribution framework, indicates management’s assessment that surplus capital currently exceeds reinvestment needs
• Market Fundamentals Are Strong but Well Recognized: Product tanker demand remains robust due to sanctions, refinery closures, and elevated tonne-mile demand; however, management commentary highlights that recent earnings strength is increasingly reflected in asset prices and expectations
• Forward Supply Balance Improves Beyond the Near Term: While effective supply growth is constrained in 2025, projections show incremental clean-tonnage growth from 2026 onward, implying that current tightness may gradually ease as the cycle progresses

Current fundamentals appear well reflected in market expectations, with asset values near cycle highs, leverage already optimised, and near-term earnings largely secured at elevated levels. Capital returns are prioritised over reinvestment, signalling limited incremental deployment opportunities at comparable returns, while forward supply dynamics suggest a gradual easing of tightness beyond the immediate horizon.

Valuation (Using P/E Multiple)

Share Price Chart

Conclusion

With fleet values elevated, leverage normalised, and near-term earnings largely secured at strong levels, and company’s equity pricing indicating a convergence toward its underlying asset base and cycle-normalised earnings after an extended phase of market strength, a "Sell" recommendation on Hafnia Limited (NYSE: HAFN) has been given at the current market price of USD 6.70 as on 11 February 2026 at 6:58 am PST.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 11 February 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.