Hafnia Limited · OSL:HAFNI
Hafnia — Q1 2023 Earnings Presentation
22 slides from Hafnia's earnings presentation, May 2023
Slide 1: Hafnia Limited Investor Presentation Q1 2023
Hafnia Limited Investor Presentation Q1 2023
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 Q1 2023 Overview Financial Summary Industry Review & Outlook Key Updates
Slide 4: Introduction to Hafnia
INTRODUCTION TO HAFNIA Fully integrated shipping platform with 100% alignment of interests and no fee leakage Investment Summary # Vessels 111x/13x Owned1/Chartered-in LR2: 7x LR1: 31x/4x ACTIVE MANAGEMENT 1 Proactively reviewing market for opportunities that MR2: 49x/9x Handy3: 24x create stronger
Slide 5: Strong Shareholder Return Through Active Management
STRONG SHAREHOLDER RETURN THROUGH ACTIVE MANAGEMENT Q1 2023 Financial Results Strong Shareholder Returns USDm TCE Income 500 70% 60% 60% 60% USD 377.2M 400 50% 50% ↑ 131% from USD 163.4M (Q1 2022) 50% 300 280.3 263.8 256.6 40% EBITDA 186.2 30% 200 159.0 140.1 154.0 USD 296.0M 93.1 20% 100 ↑ 238% fro
Slide 6: Agenda
Agenda Q1 2023 Overview Financial Summary Industry Review & Outlook Key Updates
Slide 7: Q1 2023 Financial Summary
Q1 2023 FINANCIAL SUMMARY Income Statement Q1 2022 Q1 2023 Total Liquidity & Hedge Ratio USDm USDm TCE income 163.4 377.2 600 Weighted average 100% 241 ~509 500 hedged rate of 1.36% Other operating income 6.0 11.1 80% 400 62.6% Vessel operating & technical management expenses (62.2) (70.7) 60% 300 2
Slide 8: Q1 2023 Operating Summary
Q1 2023 OPERATING SUMMARY Q1 2023 saw an average TCE of USD 36,312 per day TCE Segment Breakdown OPEX Segment Breakdown Q1 2022 Q1 2023 Q1 2022 Q1 2023 Operating TCE Operating TCE Calendar OPEX2 Calendar OPEX2 days1 (USD/day) days1 (USD/day) days (USD/day) days (USD/day) LR2 540 22,729 540 40,791 LR
Slide 9: Fleet Coverage
FLEET COVERAGE 65% of fleet is covered for Q2 2023 at USD 34,378 per day Steady Improvement in Rates USD/day Q1 2022 Q2 2022 60,000 Q3 2022 Q4 2022 Q1 2023 Covered Q2 2023 Coverage as of 15 May 2023 50,000 Q2 2023 Q2 – Q4 2023 Covered Covered 40,000 Covered Covered rates rates (%) (%) (USD/day) (USD
Slide 10: Earnings Guidance for 2023
EARNINGS GUIDANCE FOR 2023 Strong fundamentals and positive outlook for product tanker market in 2023 Analysts’ Consensus1 Q2 2023 Covered Rates2 YTD 2023 Covered Rates3 USDm USDm USDm 1,500 1,500 1,500 ~1,180 ~1,130 ~1,070 1,000 1,000 1,000 ~940 ~890 ~810 500 500 500 0 0 0 FY 2023 EBITDA FY 2023 Ne
Slide 11: Agenda
Agenda Q1 2023 Overview Financial Summary Industry Review & Outlook Key Updates
Slide 12: Higher Cargo Volumes and Ton-Miles for CPP
HIGHER CARGO VOLUMES AND TON-MILES FOR CPP CPPs and Chemicals Dirty Petroleum Products m barrels/day b tonne-miles/day m barrels/day b tonne-miles/day 20 11 55 10.25 34.08 35 33.18 32.86 10 9.38 50 9.18 30.69 9.03 29.99 8.89 9 30 16.30 44.69 45.05 44.61 45 15.31 15.21 8 15 14.58 14.73 41.34 25 40.58
Slide 13: Global Oil Demand to Reach Record High
GLOBAL OIL DEMAND TO REACH RECORD HIGH US CPP Export Levels Chinese CPP Export Levels m barrels / day m barrels / day 3.0 1.5 1.4 2.5 2.4 1.0 2.0 2.1 0.5 0.6 1.5 1.0 0.0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4
Slide 14: Russian Dark Fleet on the Rise
RUSSIAN DARK FLEET ON THE RISE Total of 292 Unique IMO Numbers Loaded in Russia Handy By Type 79 154 36 23 MR LR1 LR2 Age < 15 By Age 93 171 28 15 < Age < 20 Age > 20 Baltic By Area 50 85 135 16 6 Black Sea Deep Baltic Far East 0 50 100 150 200 250 300 White Sea Russian CPP Engagement in MR Equivale
Slide 15: CPP Inventory Remains Below Last 5-Year Average
CPP INVENTORY REMAINS BELOW LAST 5-YEAR AVERAGE West (Jet, Diesel, Gasoil, Naphtha & Other Products) East (Jet, Diesel, Gasoil, Naphtha & Other Products) m barrels m barrels 1,600 900 1,500 850 1,400 800 1,300 750 1,200 700 Inventory Last 5 year average Inventory Last 5 year average • Inventories fo
Slide 16: Growth in Middle East Refinery Output
GROWTH IN MIDDLE EAST REFINERY OUTPUT Saudi Aramco Jizan Refinery Output KPC Al-Zhour Refinery Output barrels/day barrels/day 300,000 250,000 250,000 200,000 200,000 150,000 150,000 100,000 100,000 50,000 50,000 0 0 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 Jan-23 Feb-23 Mar-23 Apr-23 Clean Petroleum Produ
Slide 17: Recent Pick Up in Contracting Activity
RECENT PICK UP IN CONTRACTING ACTIVITY Current Fleet & Age Profile Expected Scrapping & Net Additions (2023-2026) # MR Equivalents 68% % Age # MR Equivalents 250 236 2,000 70% 209 51% 200 1,527 1,500 50% 150 35% 100 1,000 24% 30% 50 27 72 21% 605 45 500 468 10% 0 371 9% 6% 6% -50 -36 0 -10% -100 -54
Slide 18: Market Fundamentals Remain Strong
MARKET FUNDAMENTALS REMAIN STRONG World Oil Demand and Supply Strong Earnings and High Volatility m barrels / day m barrels / day USD/day 50 106 120,000 Weighted average clean product tankers LR1 ECO (Middle East - Japan) 49 MR ECO HANDY ECO 104 100,000 48 47 102 80,000 46 100 45 60,000 98 44 40,000
Slide 19: Agenda
Agenda Q1 2023 Overview Financial Summary Industry Review & Outlook Key Updates
Slide 20: Key Updates
KEY UPDATES Studio 30 50 Fleet Renewal Strategy In accordance to our fleet renewal strategy, we have in the first quarter of • Hafnia, along with Microsoft, Wilhelmsen, IMC Ventures and DNV has 2023: announced the launch of new digital venture studio – Studio 30 50 Vessel Sales: • The studio aims to
Slide 21: Our Team
OUR TEAM Mikael Skov Perry Van Echtelt Jens Christophersen Thomas Andersen CEO CFO EVP, Commercial EVP, IR, Research & Performance Management ms@hafniabw.com pve@hafniabw.com jch@hafniabw.com tha@hafniabw.com
Slide 22: Thank you
Thank you www.hafniabw.com