Hafnia: The Shareholder-Friendly Capital Allocation Policy Is Catching My Attention

Summary

• Hafnia owns and operates one of the world's largest fleets of refined product tankers.
• If the various commercial pools are included, Hafnia manages around 200 tankers, which represented approximately 6.0% of the global capacity in the product market at the end of 2023.
• I view Hafnia's capital allocation policy as one of the most compelling in the industry. Similar to DHT, Hafnia is committed to returning the majority of net income to shareholders.
• The fact that the company was highly active on its share buyback program over the last few days and weeks is another indication of a sound capital allocation strategy.