Hafnia Exits Andromeda Joint Venture with $13.3m Profit
Key Takeaways
- •Hafnia sold its 50% interest in H&A Shipping, its joint venture with Monaco-based Andromeda Shipping, for a $13.3m profit in the third quarter.
- •The joint venture, formed in 2021, owned two Hyundai Mipo-built MR tankers, Yellow Stars and PS Stars, chartered long-term to Clearlake, Gunvor's shipping arm.
- •Including six second-quarter disposals that produced $39.3m in gains, Hafnia has sold eight vessel interests across the two quarters.
- •Hafnia ordered eight MR newbuildings from Hyundai Heavy Industries in April for roughly $405m, with deliveries scheduled between Q3 2028 and Q2 2029.
- •The company posted net profit of $277.8m for the quarter, up from $75.3m a year earlier, with average TCE earnings of $44,093 per day.
Product tanker owner Hafnia has sold its stake in a joint venture with Monaco-based Andromeda Shipping, booking a $13.3m profit as it continues to trim older tonnage from its fleet.
The BW Group-controlled owner sold its 50% interest in two MR tankers held through H&A Shipping during the third quarter. Hafnia did not disclose the buyer or the transaction value.
H&A Shipping was established in 2021, when Hafnia and Andromeda Shipping created the 50/50 vehicle to own two Hyundai Mipo-built MR tankers. The vessels, Yellow Stars and PS Stars, have been employed on long-term charters to Clearlake, the shipping arm of commodity trader Gunvor.
The exit follows six outright vessel disposals completed by Hafnia in the second quarter — one LR1, two MRs and three handysizes. The latest transaction brings the total number of vessel interests sold across the two quarters to eight.
Hafnia booked $39.3m in vessel-sale gains during the second quarter as it continued reshaping a fleet of more than 100 owned ships. Hafnia, headquartered in Singapore, is one of the world's largest product tanker owners and is listed in Oslo and New York.
The disposals have been matched by investment in younger tonnage. In April, Hafnia returned to Hyundai Heavy Industries for eight MR product tanker newbuildings worth approximately $405m. The series is scheduled for delivery between the third quarter of 2028 and the second quarter of 2029. The multi-year delivery window reflects the long lead times at shipyards across the product tanker sector, where an extended orderbook has pushed slots for new tonnage well into the next decade.
The fleet moves came during a strong quarter for the owner, which posted a net profit of $277.8m, up from $75.3m a year earlier. Average TCE earnings reached $44,093 per day, a level well above the historical averages for MR tonnage that has supported fleet renewal spending across product tanker operators.
