Core Viewpoint - Hafnia Limited has successfully met all conditions for acquiring approximately 14.1 million A-shares in TORM plc, representing about 13.97% of TORM's issued share capital following TORM's recent capital increase [1][2]. Group 1: Acquisition Details - Hafnia's acquisition of approximately 14.1 million A-shares from Oaktree Capital Management has been confirmed, with completion expected shortly [1][2]. - Following TORM's announcement of an increase in issued share capital by 3,380,278 new A-shares, Hafnia's stake will now represent approximately 13.97% of TORM's total issued share capital [2]. Group 2: Company Overview - Hafnia is a leading tanker owner, specializing in the transportation of oil, oil products, and chemicals for major oil and chemical companies [2]. - The company operates around 200 vessels and provides a fully integrated shipping platform, including technical management and commercial services [3]. - Hafnia is part of the BW Group, which has over 80 years of experience in oil and gas transportation and related services [4].

Core Insights - Oaktree Capital Management's latest 13F filing reveals a focus on deep-value cyclicals, energy companies with strong free cash flow, and special-situation equities with asymmetric payoff potential [1][2] Group 1: Top Holdings - TORM PLC (TRMD) is Oaktree's largest holding with 40,581,120 shares valued at $834.6 million, indicating strong conviction in the tanker cycle and a favorable supply/demand imbalance in the product tanker market [3] - Expand Energy Corp (CHK) holds 5,062,363 shares worth $537.8 million, reflecting Oaktree's long-term confidence in energy, particularly natural gas, despite minimal activity this quarter [4] - Garrett Motion (GTX) has 31,894,816 shares valued at $434.4 million, representing a classic special situation investment as the company continues to reduce leverage and grow cash flow post-restructuring [5] - AngloGold Ashanti (AU) consists of 4,185,261 shares worth $294.3 million, fitting Oaktree's strategy with improving margins and optionality in an inflationary environment [6] - Viper Energy (VNOM) has 6,285,062 shares valued at $240.2 million, showcasing a strong thematic bet on energy with predictable royalty cash flows [7] Group 2: Investment Strategy - Oaktree's portfolio heavily emphasizes deep-value cyclicals, particularly in tankers, energy producers, and commodity-linked businesses, all characterized by significant cash flow yield and depressed valuations [8] - The firm maintains a consistent philosophy of embracing dislocation, favoring investments in situations where pessimism is already priced in, such as restructuring plays and underfollowed foreign cyclicals [9] - Energy remains the highest-conviction theme for Oaktree, with multiple top holdings indicating an underestimation of cash generation durability across the sector [10] - Position changes reflect a blend of patience and opportunism, with Oaktree trimming stocks that rallied while increasing positions in VNOM and selected common stocks, aligning with a strategy of controlled aggression [11]

Core Insights - The article emphasizes the importance of creating engaging and accessible financial content for various audiences, particularly for financial advisors and investment firms [1] Group 1: Content Creation - The company specializes in producing written content in multiple formats, including articles, blogs, emails, and social media [1] - There is a focus on thematic investing, market events, and client education to make financial narratives relatable to everyday investors [1] - The use of empirical data and charts is highlighted as a method to effectively communicate financial information [1] Group 2: Market Analysis - The company expresses enthusiasm for analyzing various asset classes such as stocks, bonds, commodities, currencies, and cryptocurrencies [1] - Macro drivers of these asset classes are identified as key areas of interest for investment analysis [1] Group 3: Collaboration and Strategy - Collaboration with senior editors, investment strategists, marketing managers, data analysts, and executives is a crucial part of the content creation process [1] - The company aims to produce content that is not only relevant but also measurable in terms of its impact [1]

Core Viewpoint - Many investors are anticipating further interest rate cuts in December, with a 93% probability assigned to this outcome, while dividend stocks like Plains All American Pipeline LP, Hercules Capital, and TORM plc are highlighted as attractive options for building a high-yield portfolio without resorting to Treasuries [3][4][6]. Company Summaries Plains All American Pipeline (PAA) - Plains All American Pipeline is a midstream company that transports and processes crude oil and natural gas liquids, generating steady cash flow through fee-based contracts, independent of commodity prices [5][7]. - The stock has appreciated by 83.27% over the past five years, not accounting for its substantial dividend [7]. - The company benefits from increased pipeline usage driven by long-term energy demand growth and booming exports from North America to Europe, with a forward dividend yield of 8.74% [8]. Hercules Capital (HTGC) - Hercules Capital is a business development company focused on venture lending, known for high dividend yields due to its tax structure that mandates nearly all income distribution to shareholders [9]. - The company offers a forward dividend yield of 10.23% and has received a Baa2 investment-grade rating upgrade from Moody's [5]. TORM plc (TRMD) - TORM benefits from Europe's transition to North American and Middle Eastern energy sources, necessitating longer-distance tanker transport [5].

Industry Overview - The product tanker industry has experienced a significant pullback in recent years, indicating a potential cyclical bottom approaching [1] Investment Focus - The analysis emphasizes thematic investing, crisis investing, systematic options trading, and discretionary global macro strategies [1]

Core Insights - The product tanker industry has experienced a significant pullback in recent years, indicating a potential bottom in the cyclical nature of the industry [1] Industry Overview - The product tanker sector is characterized as cyclical, suggesting that it may be nearing a recovery phase after a downturn [1] Investment Strategy - The focus is on thematic investing, crisis investing, and systematic options trading, which includes both premium selling and long-vol positions, alongside discretionary global macro strategies [1] - Experience in private M&A and extensive trading in publicly-traded equities and equity-based derivatives is highlighted [1]

Core Points - TORM plc has increased its share capital by a total of 2,395,426 shares, amounting to USD 23,954.26, due to the delivery of one LR2 vessel and the exercise of Restricted Share Units (RSUs) as part of its incentive program [1][4] - The share capital increase includes 748,569 shares related to the delivery of a 2010-built LR2 vessel, corresponding to USD 7,485.69, and a USD 17.0 million allocated loan note [2][4] - A total of 1,646,857 A-shares were issued as a result of RSU exercises, with 1,558,790 shares subscribed at DKK 0.07 and 88,067 shares at DKK 140.2 [4][6] - The newly issued shares will be subject to a 40-day lock-up period, during which they can only be resold outside the United States [3][4] - After the capital increase, TORM's total share capital is USD 1,003,478.57, divided into 100,347,855 A-shares, one B-share, and one C-share [6] - The Board of Directors has granted adjustment RSUs to certain employees, totaling 840,874 RSUs, to reflect dividend payments since the original grant date [7][8] Company Overview - TORM is a leading carrier of refined oil products, operating a fleet of product tanker vessels with a commitment to safety and environmental responsibility [9] - The company was founded in 1889 and is listed on Nasdaq in Copenhagen and New York [9]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need to disable them for proper access [1]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated TCE revenues of $236 million, resulting in an EBITDA of $152 million and a net profit of $78 million, reflecting a $25 million increase in EBITDA compared to the previous quarter [15][16] - The fleet-wide TCE rates averaged $31,012 per day, with LR2s earning above $38,000, LR1s around $29,500, and MRs exceeding $28,000 per day, indicating strengthened freight rates supported by solid market fundamentals [15][16] - Earnings per share for Q3 came in at $0.79, with a declared dividend of $0.62 per share, representing a payout ratio of 78% [16][18] Business Line Data and Key Metrics Changes - The company advanced its fleet optimization strategy by acquiring five vessels, including four MR and one LR2, while divesting a 2007 built MR [2][3] - A three-year time charter was agreed for a 2009-built MR vessel at a daily rate of $22,234, which is above the prevailing market rate for such vintage [2][3] Market Data and Key Metrics Changes - Product tanker rates remained stable and attractive, with benchmark earnings for MR and LR2 vessels showing resilience [6][10] - Trade volumes increased significantly in Q3, driven by higher middle distillate flows from east to west, which lifted ton-miles above levels seen before the Red Sea disruption [6][7] - Two refineries in Northwest Europe closed, representing 6% of the region's refining capacity, increasing reliance on imported middle distillates [8][9] Company Strategy and Development Direction - The company is focused on maintaining a modern, high-quality fleet and is in negotiations for longer-term charters due to favorable market conditions [3][4] - The company aims to navigate the current market environment of elevated uncertainty with a strong capital structure and operational leverage [14][18] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment remains dynamic due to geopolitical uncertainty, market sentiment is broadly positive, with solid momentum supported by firm rates across all vessel segments [3][19] - The company increased the midpoint of its TCE guidance by $25 million to $900 million, reflecting secured coverage and current market expectations [19][20] Other Important Information - The company's net interest-bearing debt stands at $690 million, corresponding to around 24% of its capital structure, with only $122 million in borrowings maturing over the next 12 months [17][18] - The company has repurchased 13 out of 22 leaseback vessels, with additional purchase options exercised [18] Q&A Session Summary Question: How did the company manage to secure a long-term charter for an older vessel? - Management highlighted the integrated platform that allows for consistent service quality across all vessels, regardless of age, and noted ongoing negotiations for longer-term deals due to favorable market conditions [31][32] Question: What factors influenced the decision to acquire older vessels? - The company considers multiple metrics, including internal return hurdles and cash breakeven levels, ensuring that acquisitions meet their return requirements [34][35] Question: What is the company's approach to dividends going forward? - The dividend policy is designed to distribute free liquidity generated throughout the quarter, correlated to cash flow break-even levels, with a focus on maintaining a satisfactory payout ratio [53][56] Question: Why was the reported interest expense higher this quarter? - The increase was attributed to the accounting treatment of refinancing and upfront fees, which is expected to normalize in the following quarter [62][64]

Financial Performance - The company's TCE for Q3 2025 was USD 236 million, an increase from USD 208 million in Q2 2025[7] - EBITDA for Q3 2025 reached USD 152 million, up from USD 127 million in Q2 2025[7] - Net profit for Q3 2025 was USD 78 million, compared to USD 59 million in Q2 2025[7] - The company's basic earnings per share increased to USD 0.79 in Q3 2025, from USD 0.60 in Q2 2025[30] - The dividend per share increased to USD 0.62 in Q3 2025, from USD 0.40 in Q2 2025, with a dividend payout ratio of 78%[30] Market Dynamics - Trade volumes in Q3 increased by 4% compared to Q2 and 2% year-over-year[16] - The product tanker capacity trading CPP is down by 1% versus nominal fleet growth of 5%[26] Fleet and Strategy - The company's fleet size remained constant at 88 vessels between Q2 and Q3 2025[7] - The company acquired one 2010-built LR2 and four 2014-built MR vessels and sold one 2007-built MR vessel[9] Outlook - The company expects TCE earnings to be USD 875 - 925 million and EBITDA to be USD 540 - 590 million for 2025[54] - 55% of Q4 2025 is covered at USD 30,156 per day[53]