02 | Why Hafnia
Best commercial performance
Over the years, we have benchmarked ourselves against our peers to evaluate our commercial performance, while adjusting for fleet composition, speed and consumption. When we look at these ‘apples to apples’ benchmarks, we are at the absolute top in all of our segments. This is the result of the quality of our daily commercial decision-making which is supported by tracking our own and our competitors’ trading patterns. We constantly improve our understanding of cargo flows and seasonal patterns of the product tanker market.
Lowest operating and funding cost
Our operational cash flow breakeven for 2021 was approximately USD 13,087 per day – the lowest in the industry. Our industry leading funding cost, our solid balance sheet and low Selling, General and Administrative (“SG&A”) expense of USD 950 per day are also key contributors to our competitiveness.
USD 21.7 million in income from the pools and other fee-generating activities
Income from the management of third-party vessels and buying bunker on behalf of third-party clients was USD 21.7 million for the full year. With this success, we will continue to invest in our commercial platform to increase the service level and build scale in the pools through adding external vessels with the right pool partners.
But our strong business is only possible because we put people first to attract the best talent and partners
By positioning ourselves as a company people want to associate with, we are able to produce stronger results and lower costs. Talented people allow us to be more efficient in our operations and operate diverse revenue streams to protect against market volatility.
Intense focus on growing and retaining a diverse and inclusive talent matrix
We know that in order to attract and retain the best talent we need to constantly provide our employees and our partners opportunities to grow and learn.
Anne Sophie Krabbe Thykier, People, Culture & Strategy
We hire for mindset and values because skills can be taught. Mindset and values comes from within and is hard to influence. You can train people, you can lead them, or educate them, but you can’t change who they are. If you focus on personality skills, you can later train them to whatever skills you need them to have professionally. We look for passion, not experience. Employees’ coachability, emotional intelligence and motivation are very meaningful for a successful hire. We do not ignore previous experience, any previous experience can be a sign of specific work behaviour and personally developed skills. We believe that people with the right mindset support the culture we have and want to maintain. So, what is the right mindset? The right mindset is being a team player, wanting to build the best company possible with your co-workers, and an eagerness to learn. Wanting to be a part of a teaching environment where everyone helps each other do the best they possibly can, but also giving space to those who might need it in difficult times.
Charleston Lim, Finance Trainee
What drew me to Hafnia was its strong foothold in the very exciting product tanker market, and Hafnia’s value of putting its people first. To date, I have seen the latter being displayed in the everyday decision-making of the management team, as well as my colleagues. Hafnia prioritises the well-being of each employee and ensures that everyone feels valued through meaningful contributions. One of my favourite projects I’ve worked on is a loan agreement for a newbuild, from start to end. It was eye-opening and exciting for me to see through the different stages of the transaction, from the negotiation of the term sheet, the actual documentation and finally to the delivery of the vessel. The seniors in the team guided me every step of the way and that contributed greatly to my learning and appreciation for the work.
As a finance trainee, my short-term ambitions would be to learn as much from my rotations in the next year and to find a role within Hafnia that plays best to my strengths and interests. I hope to be able to learn more about the various moving parts within the shipping ecosystem and to be able to have meaningful contribution in helping Hafnia achieve its vision of being the best on water.
Vivian Tay, Shipping Trainee
Why Hafnia? The reason is simple. I love how dynamic and inclusive the company is. Through the Shipping Trainee program, I am certain that the numerous rotations will broaden my horizon in this vast industry. During my time in each rotation, I can better understand the key functions of each department as well as the pain points faced by my colleagues. The people here are collaborative and care for one another as well. This is evident from the fact that a unique buddy and/or mentor is assigned to me for each rotation. So far I have completed stints in Claims and Operations. The trust that my colleagues placed in me, by allowing me to prepare claims and operate vessels independently shortly after I started my stint, has greatly boosted my learning. Long story short, Hafnia provides an environment that facilitates learning opportunities and allows people to grow.
Meaningful opportunities to disrupt the industry of today
As our recent transactions demonstrate, we continue to believe in the benefits of consolidation. Large scale in number of vessels enables better performance in chartering, operations, bunker and back-office. Thoughtful consolidation presents clear cost synergies and digitalisation across a large fleet improves data intelligence significantly and enables faster and better decision making.
These transactions not only underscore Hafnia’s commitment to growing our platform to maximise stakeholder value but also exhibit that we follow through on our intentions. The fact that leading institutional investors are willing to receive Hafnia shares as payment speaks to the strength of Hafnia’s platform. For now we will focus on integration efforts, where we have a clear public track record of swift and successful integrations after significant transactions.
Atle Sebjornsen, Head of Chemicals Major player in the chemical markets from day-one
Through the acquisition of the CTI fleet we have achieved sufficient day-one scale to immediately establish a global trading pattern, moving the ships between the main chemical production areas in Asia, Middle East and the US Gulf. On the back of the existing Hafnia infrastructure we are establishing a global chemical chartering and operations organization to mirror these trade patterns as we view regional commercial and operational support as key to an optimized trading of the fleet. We are already engaging closely with leading producers and traders as we will focus on close and long-term partnerships with the clients who value our significant investment in and commitment to the sector.
Increased flexibility and efficiency by expanding the range of cargoes we carry
The fleet is particularly well suited for a combination of commodity chemicals, vegetable oils and clean petroleum products and we will strive to optimize the trading between these cargo types. Our very experienced chemical team will work closely with Hafnia’s best-in-class products team to optimise earnings on each and every leg of the voyage. There is little doubt in my mind that the chemical fleet will benefit greatly from Hafnia’s scale, infrastructure and close relationships with the world’s leading producers and traders. Similarly, we believe the added capabilities of the chemical fleet, as well as the experience of the chemical team, will facilitate a broadening of the cargo range across the entire fleet.
Leading to increased earnings
A combination of an efficient utilisation of the chemical fleet when employed in the non-chemical trades and the ability to broaden the cargo range for the product fleet will serve to lift earnings across the entire combined fleet.
While providing the energy the world needs today, we are also focused on transitioning to be the shipping company the world needs tomorrow
Our competitive and robust business platform empowers us to invest in and focus on transitioning for the future. We are a company that is uncomfortable with stasis. We are compelled to change with and for the world.
Our team is diverse, full of different skillsets and backgrounds but united through a shared vision to be best on water. Consequently, our ESG efforts and investments in transitioning towards a cleaner future is championed by everyone across the company.
Pankaj Porwal, Senior Manager, Performance and Pool Management
After my undergraduate degree in Mechanical Engineering, I started my journey as an engineer in India’s biggest textile manufacturing plant in 1993. Life was comfortable, but my quest for adventure led me to the sea. After sailing for 15 years, 7 years as a Chief Engineer, I began my role as an Advisor of Energy Management project for BW Group in 2011. Simultaneously, I gained the certification of Energy Manager & Auditor by the Ministry of Power, Government of India in 2012. At the end of the project, we had achieved an estimated bunker saving of USD 50 million and carbon dioxide reductions of over 300,000 metric tonnes. After spending a few years as a Technical Superintendent, my desire to achieve fleet-wide environmental impact led me to the Global Fleet performance team. To develop my knowledge and understanding of the synergy between the environment and economy, I graduated from Singapore Management University’s (SMU) Master’s in Applied Economics in 2018. With over 5% YoY improvement in Fleet environmental performance in terms of Carbon intensity consecutively for the past 3 years, I have been truly grateful to gain a 360-degree exposure of the organisation, collaborate with multiple stakeholders across the board, and most importantly, achieve positive environmental impact while maintaining an economic sense of our business activities.
Our core competence is arranging transportation, we just happen to be carrying oil and chemicals at the moment. We are well-positioned to adapt the transition to transport renewable fuels as long as we continue to put people first. We are actively perusing to secure contracts to transport alternative and renewable fuel sources, for example ammonia.