Why Hafnia Limited (HAFN) Went Down on Thursday

We recently compiled a list of the 10 Stocks Drop by Double Digits Mostly Due to Disappointing Earnings. In this article, we are going to take a look at where Hafnia Limited (NYSE:HAFN) stands against the other stocks.

Wall Street’s main indices suffered a bloodbath on Thursday as overall investor sentiment was weighed down by President Donald Trump’s series of tariffs on goods from other countries.

The Dow Jones dropped by 0.45 percent, while the S&P declined 1.59 percent. Nasdaq, on the other hand, lost 2.78 percent.

On Thursday, Trump threatened to slap EU products with a 25-percent tax, following his announcement on Wednesday of another month of delay for the imposition of taxes on goods from Mexico and Canada.

Ten companies also mirrored wider market pessimism, posting double-digit declines, albeit the drop was predominantly due to dismal earnings performance last year.

To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A view of a tanker vessel and its crew at a Mediterranean dockside.

Hafnia Limited (NYSE:HAFN)

Hafnia Limited (NYSE:HAFN) saw its share prices decline by 14.6 percent on Thursday to finish at $4.21 apiece as investors sold off positions following a dismal earnings performance last year.

In its latest earnings release, Hafnia Limited (NYSE:HAFN) said net income for the fourth quarter of 2024 dropped by 55 percent to $79.6 million from $176.4 million in the same period in 2023, while net profit for the full year dipped by 2.4 percent to $774 million from $793 million in 2023.

Revenues for the quarter declined by 24 percent to $532.86 million from $703.4 million year-on-year. Revenues for the full year, however, rose 7 percent to $2.868 billion from $2.671 billion.

According to the company, the product tanker market sustained higher earnings in the first nine months of last year, driven by strong cargo volumes and ton-miles as vessels rerouted from the Suez Canal to the Cape of Good Hope.

However, tanker rates came under pressure in the fourth quarter due to “increased cannibalization” from the crude sector.

Overall HAFN ranks 9th on our list of Thursday’s worst performers. While we acknowledge the potential of HAFN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as HAFN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.