Hafnia Limited · OSL:HAFNI
Hafnia — Q4 2024 Earnings Presentation
25 slides from Hafnia's earnings presentation, Feb 27, 2025
Slide 1: Hafnia Quarterly Financial Investor Presentation Q4 2024
Hafnia Quarterly Limited Financial Hafnia Quarterly Financial Investor Presentation Q4 2024
Slide 2: Disclaimer – Safe Harbour Message
DISCLAIMER – SAFE HARBOUR MESSAGE IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Hafnia Limited (the "Company") or any person on behalf of the Company, and any question-and-answer session
Slide 3: Agenda
Agenda Q4 2024 Overview Industry Review & Outlook Financial Summary ESG & Strategic Projects Overview
Slide 4: Q4 and Full Year 2024 Key Highlights
Q4 AND FULL YEAR 2024 KEY HIGHLIGHTS TCE Income1 Q4 2024 FY 2024 USD 233.6M USD 1,391.3M (USD 22,692 per day) (USD 33,000 per day) Adjusted EBITDA1 Q4 2024 FY 2024 USD 131.2M USD 992.3M Net Profit Q4 2024 FY 2024 USD 79.6M USD 774.0M (USD 0.16 per share2) (USD 1.52 per share2) Q4 Dividends Q4 Share
Slide 5: Unparalleled Investment Opportunity
UNPARALLELED INVESTMENT OPPORTUNITY Fully integrated shipping platform with 100% alignment of interests and no fee leakage # Vessels Owned1 / ACTIVE MANAGEMENT SHAREHOLDER VALUE Time Chartered-in Proactively assessing the market for Consistent dividend payout since IPO. opportunities that create str
Slide 6: Delivering Strong Shareholder Returns
DELIVERING STRONG SHAREHOLDER RETURNS Leveraging a strategic mix of cash dividends and share buybacks to maximize shareholder returns Hafnia 2024 Dividends and Share Buybacks USDm Net loan-to-value (LTV)1 Payout of net profit 400 90% Above 40 % 50 % 80% 80% 80% Above 30 % but equal to or below 40 %
Slide 7: Agenda
Agenda Q4 2024 Overview Industry Review & Outlook Financial Summary ESG & Strategic Projects Overview
Slide 8: Product Tanker Recovery Emerges Late in Q4
PRODUCT TANKER RECOVERY EMERGES LATE IN Q4 CPP on Water vs Average Daily Loadings Crude Tankers Clean Products Cannibalization m barrels/day b ton-mile 480 25 12 7% 24.3 24.2 24.5 460 456 23.9 6% 24 443 11 440 442 5% 23.5 23 420 4% 22.5 10 400 3% 22 380 21.5 2% 9 21 360 1% 20.5 340 20 8 0% Sep Mar M
Slide 9: Increase in Ton-Days and Earnings
INCREASE IN TON-DAYS AND EARNINGS Historical Ton-Days vs MR & LR1 Earnings Laden & Ballast Voyage Lengths m Ton-days USD/day # Nautical # Nautical 71 60,000 Mile/Voyage Mile/Voyage 3,800 3,754 1,900 69 50,000 3,700 1,850 67 40,000 65 3,600 1,800 1,785 63 30,000 3,500 1,750 61 20,000 3,400 1,722 1,70
Slide 10: Red Sea Transit Update
RED SEA TRANSIT UPDATE Cape & Suez Routing Suez Reopening Impact Calculation m barrels/day # MR Equivalents 4.5 300 4.15 4 227 3.59 3.42 200 3.5 2.89 2.91 3 100 2.47 53 2.5 2.06 0 2 -10 1.5 -100 1 0.85 0.57 -200 0.5 0 -300 Jan Feb Aug Nov Jan Apr Aug Jan Mar Apr Sep Feb May Mar Sep May Nov Jul Jul J
Slide 11: Sanctioned Fleet to Limit Overall Supply
SANCTIONED FLEET TO LIMIT OVERALL SUPPLY Handy – VLCC Dark Trade Count 2025 Sanctioned Fleet vs Newbuild 2025 (Russian non-OFAC listed trading) # Vessels Utilization # Vessels Age 160 60% 180 25 145 Non-Sanctioned Dark Fleet 410 vessels 140 160 140 20 120 50% 120 100 91 84 15 100 80 75 40% 66 68 80
Slide 12: Impact of Sanctions on Imports and Ton-Miles
IMPACT OF SANCTIONS ON IMPORTS AND TON-MILES India & China Crude Import by Origin Ton-Mile Depletion – Sanctioned Fleet in % World Fleet m barrels/day m barrels/day 4 Mio barrels replacement is about 6% 18.0 100 Suezmax Equivalents 6.0 2025 Newbuild Handy - VLCC 16.0 4.85% 2.68% 5% 5.0 14.0 4.17% 12
Slide 13: DWT Scrap & Ageing vs Known Newbuild
DWT SCRAP & AGEING VS KNOWN NEWBUILD Handy - VLCC Handy - LR2/Aframax m DWT m DWT 300 120 250 100 200 80 150 60 50 100 120 40 50 98 50 20 0 0 2025 2026 2027 2028 2029 2030 2031 2025 2026 2027 2028 2029 2030 2031 Total Scrap DWT Aging >15 Yrs Aging >20 Yrs Total Newbuild DWT Total Scrap DWT Aging >15
Slide 14: Strong Supply and Demand Fundamentals
STRONG SUPPLY AND DEMAND FUNDAMENTALS Reduced Utilization in Ton-Day World Refinery Outage (Handy-VLCC) (Age Grouped) (Four Prime Regions) 100% ‘000 barrels/day 9,000 8,000 80% 76% 76% 73% 72% 72% 73% 70% 68% 7,000 68% 65% 63% 6,000 60% 5,000 47% 4,000 40% 3,000 20% 2,000 1,000 0% 0 2022 2023 2024 2
Slide 15: Agenda
Agenda Q4 2024 Overview Industry Review & Outlook Financial Summary ESG & Strategic Projects Overview
Slide 16: Q4 & Full Year 2024 Financial Summary
Q4 & FULL YEAR 2024 FINANCIAL SUMMARY Income Statement Q4 2023 FY 2023 Q4 2024 FY 2024 USDm TCE income1 329.8 1,366.6 233.6 1,391.3 Other operating income 8.8 45.0 6.9 35.2 Return on Equity (annualised) Vessel operating & technical management expenses (74.5) (294.6) (76.7) (306.2) 60% Charter hire e
Slide 17: Robust Financial Strength
ROBUST FINANCIAL STRENGTH Strong balance sheet maintained despite market adjustment Deleveraging Journey Total Liquidity USDm USDm USDm 3,000 5,000 600 80% 4,536 ~517 Weighted 322 average hedged 2,500 4,500 500 rate of 2.01% 3,906 60% 49.3% 2,000 4,000 400 1,526 1,500 3,500 300 40% 907 195 1,000 3,0
Slide 18: Operating Summary
OPERATING SUMMARY Q4 2024 saw average TCE of USD 22,692 per day; with average OPEX of USD 8,131 per day Q4 2024 Vessel Segment Breakdown YTD 9M 2024 Peers5 Comparison USD/day YTD 9M 2024 OPEX & G&A Operating Spot TCE2 TCE2 Calendar days OPEX 15,000 days1 (USD/day) (USD/day) (excl TC-in) (USD/day) 10
Slide 19: Earnings Scenarios and Fleet Coverage
EARNINGS SCENARIOS AND FLEET COVERAGE Product tanker fundamentals support positive 2025 earnings outlook Earnings Scenarios for Full Year 2025 USDm 1,000 750 ~670 Coverage1 as of February 13, 2025 Analysts’ ~440 500 Consensus3 250 Q1 2025 2025 0 Covered Covered rates Covered Covered rates FY 2025 Ad
Slide 20: Agenda
Agenda Q4 2024 Overview Industry Review & Outlook Financial Summary ESG & Strategic Projects Overview
Slide 21: ESG Commitments and Targets
ESG COMMITMENTS AND TARGETS Environmental Social Governance 40% reduction Zero harm across our operations Zero compliance in our fleet’s carbon intensity by 2028 (compared to 2008 ✓ Lost Time Incident Frequency < 0.4 observation ✓ Total Recordable Case Frequency < 1.0 observation breaches levels) ✓
Slide 22: Hafnia Strategic Project Highlights
HAFNIA STRATEGIC PROJECT HIGHLIGHTS STRATEGIC PARTNERSHIPS DRIVING SUSTAINABLE GROWTH Seascale Energy Complexio ▪ Joint venture with Cargill to create a stronger bunker ▪ Co-founder of Complexio, a foundational AI, to advance data procurement entity, Seascale Energy automation ▪ Aims to deliver cost
Slide 23: Market Leader with Unparalleled Scale
MARKET LEADER WITH UNPARALLELED SCALE MARKET LEADER OF PRODUCT AND CHEMICAL TANKERS SOLID FINANCIAL STRENGTH ▪ Industry-leading fleet of 115 owned ▪ Consistently high payout: Above 80% payout vessels ratio from dividends and share buybacks in ▪ Commercially managing a fleet of ~200 2024 vessels acro
Slide 24: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Leveraging decades of maritime expertise to drive sustainable growth and enhance shareholder value Mikael Skov Perry Van Echtelt Søren Skibdal Winther Thomas Andersen CEO CFO VP, Commercial EVP, IR, Research & Performance Management ms@hafnia.com pve@hafnia.com ssw@hafnia
Slide 25: Thank you
Thank you www.hafnia.com