| Property, plant and equipment |
| 7. |
Property, plant and equipment
|
|
|
|
Vessels and scrubbers
US$’000
|
|
|
Dry
docking
US$’000
|
|
|
Right-of-
use
assets –
Vessels
US$’000
|
|
|
Others
US$’000
|
|
|
Total
US$’000
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2025
|
|
|
3,510,379
|
|
|
|
156,844
|
|
|
|
221,713
|
|
|
|
1,578
|
|
|
|
3,890,514
|
|
|
Additions (Note 7(a))
|
|
|
54,063
|
|
|
|
91,278
|
|
|
|
47,789
|
|
|
|
471
|
|
|
|
193,601
|
|
|
Disposal of vessels (Note 7(a))
|
|
|
(87,873
|
)
|
|
|
(8,454
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(96,327
|
)
|
Reclassified to assets held for sale (Note 7(a))
|
|
|
(50,163 |
) |
|
|
(4,252 |
) |
|
|
— |
|
|
|
— |
|
|
|
(54,415 |
) |
Write off on expiration of leases
|
|
|
— |
|
|
|
— |
|
|
|
(51,907 |
) |
|
|
— |
|
|
|
(51,907 |
) |
|
Write off on completion of dry docking cycle
|
|
|
—
|
|
|
|
(42,340
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(42,340
|
)
|
|
At 31 December 2025
|
|
|
3,426,406
|
|
|
|
193,076
|
|
|
|
217,595
|
|
|
|
2,049
|
|
|
|
3,839,126
|
|
|
Accumulated depreciation and impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2025
|
|
|
989,156
|
|
|
|
89,899
|
|
|
|
203,052
|
|
|
|
845
|
|
|
|
1,282,952
|
|
|
Depreciation charge
|
|
|
134,607
|
|
|
|
38,719
|
|
|
|
28,037
|
|
|
|
339
|
|
|
|
201,702
|
|
|
Disposal of vessels (Note 7(a))
|
|
|
(27,308
|
)
|
|
|
(5,719
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(33,027
|
)
|
Reclassified to assets held for sale
|
|
|
(14,806 |
) |
|
|
(2,119 |
) |
|
|
— |
|
|
|
— |
|
|
|
(16,925 |
) |
Write off on expiration of leases
|
|
|
— |
|
|
|
— |
|
|
|
(51,907 |
) |
|
|
— |
|
|
|
(51,907 |
) |
|
Write off on completion of dry docking cycle
|
|
|
—
|
|
|
|
(42,340
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(42,340
|
)
|
|
At 31 December 2025
|
|
|
1,081,649
|
|
|
|
78,440
|
|
|
|
179,182
|
|
|
|
1,184
|
|
|
|
1,340,455
|
|
|
Net book value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2025
|
|
|
2,344,757
|
|
|
|
114,636
|
|
|
|
38,413
|
|
|
|
865
|
|
|
|
2,498,671
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
|
|
3,573,265
|
|
|
|
143,375
|
|
|
|
199,582
|
|
|
|
1,495
|
|
|
|
3,917,717
|
|
|
Additions (Note 7(a))
|
|
|
12,514
|
|
|
|
36,230
|
|
|
|
23,411
|
|
|
|
83
|
|
|
|
72,238
|
|
|
Disposal of vessels (Note 7(a))
|
|
|
(75,400
|
)
|
|
|
(3,555
|
)
|
|
|
(1,280
|
)
|
|
|
—
|
|
|
|
(80,235
|
)
|
|
Write off on completion of dry docking cycle
|
|
|
—
|
|
|
|
(19,206
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(19,206
|
)
|
|
At 31 December 2024
|
|
|
3,510,379
|
|
|
|
156,844
|
|
|
|
221,713
|
|
|
|
1,578
|
|
|
|
3,890,514
|
|
|
Accumulated depreciation and impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
|
|
899,327
|
|
|
|
75,216
|
|
|
|
165,021
|
|
|
|
531
|
|
|
|
1,140,095
|
|
|
Depreciation charge
|
|
|
139,048
|
|
|
|
35,635
|
|
|
|
39,311
|
|
|
|
314
|
|
|
|
214,308
|
|
|
Disposal of vessels (Note 7(a))
|
|
|
(49,219
|
)
|
|
|
(1,746
|
)
|
|
|
(1,280
|
)
|
|
|
—
|
|
|
|
(52,245
|
)
|
|
Write off on completion of dry docking cycle
|
|
|
—
|
|
|
|
(19,206
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(19,206
|
)
|
|
At 31 December 2024
|
|
|
989,156
|
|
|
|
89,899
|
|
|
|
203,052
|
|
|
|
845
|
|
|
|
1,282,952
|
|
|
Net book value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2024
|
|
|
2,521,223
|
|
|
|
66,945
|
|
|
|
18,661
|
|
|
|
733
|
|
|
|
2,607,562
|
|
| (a) |
Additions and disposals:
|
For the financial years ended 2025 and 2024, the Group did not acquire any vessels
For the financial year ended 2025, the Group disposed of four MR vessels to external parties (2024:
disposed of one LR1 vessel and one MR vessel to external parties).
For the financial year ended 2025, the Group committed to the sale of two MR vessels, Hafnia Libra
and Hafnia Phoenix. The vessels were classified as assets held for sale.
During the financial year ended 2024, the Group’s LR1 vessel, Hafnia Shannon (formerly known as Hafnia Nile), was involved in a collision with another vessel, resulting in
extensive damage. As a result of the collision, the vessel was unable to resume operations until the necessary salvage operations and repairs were completed. The Group has incurred salvage and repair costs as at the balance sheet
date but has insurance contracts under which it can make claims for compensation. The vessel was subsequently repaired and was operational during the financial year ended 31 December 2025.
The Group had simultaneously recorded compensation receivable from the insurer when salvage costs are initially recognised as a provision, as the Group had determined that a reimbursement right exists. For repair
costs, which were recognised as separate loss events when incurred, the Group had simultaneously recorded a compensation receivable from the insurer as the Group had determined that it has a right to exert a claim for compensation
for the loss events.
As at 31 December 2025, the Group had recognised US$16.4 million (2024: US$29.9 million) of insurance receivables, which are predominantly in relation to salvage costs (2024: salvage and repair costs).
| (b) |
As at 31 December 2025 and 2024, the Group assessed whether
its vessels had indicators of impairment by reference to internal and external factors including macroeconomic and geopolitical factors affecting the product and chemical tanker businesses according to its stated policy set
out in Note 2.3(b) and Note 2.9.
|
The Group further obtained valuation reports from independent ship brokers to assess whether the
fair value of vessels exceeded their carrying values at the balance sheet date. These valuations (which are considered a Level 2 measure of fair value) of the Group’s vessels exceeded their respective carrying amounts. The Group
concluded that there were no indicators of impairment for the vessels owned and leased by the Group.
| (c) |
The Group has mortgaged vessels with a total carrying amount
of US$1,982.2 million (2024: US$2,332.6 million) as collateral over the Group’s bank borrowings.
|
| (d) |
For the financial year ended 31 December 2025, the Group has
revised the residual values of the Group’s vessels for the financial year ended 31 December 2025 and prospectively adjusted for this revision as a change in accounting estimate beginning from 1 January 2025 in accordance with
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Depreciation charge decreased by approximately US$5.2
million for the financial year ended 31 December 2025 due to this revision in residual values. This revision in residual values is expected to result in a reduction in depreciation expense over the remaining useful lives of
the Group’s vessels. The impact on profit or loss for future periods cannot be reasonably estimated as of 31 December 2025 due to uncertainty surrounding scrap prices.
|
|