Hafnia Limited · OSL:HAFNI
Hafnia — Q1 2022 Earnings Presentation
21 slides from Hafnia's earnings presentation, May 23, 2022
Slide 1: Hafnia Limited Investor Presentation Q1 2022
HAFNIA LIMITED I N V E S TO R P R E S E N TAT I O N Q1 2022 23 May 2022
Slide 2: Disclaimer – Safe Harbor Message
DISCLAIMER – Safe Harbor 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 T
Slide 3: Agenda
AGENDA Q1 2022 Highlights/Overview Financial Summary Industry Review & Outlook Conclusion 3
Slide 4: Introduction to Hafnia
INTRODUCTION TO HAFNIA Fully integrated shipping platform with 100% alignment of interests and no fee leakage Key Value Proposition Operational Overview Strong market outlook and 1 fundamentals Technical Shipowner Pool Platform Management Largest operator and owner of product 2 and chemical tankers
Slide 5: Equity Raise Unlocks Capital Structure Optimisation
EQUITY RAISE UNLOCKS CAPITAL STRUCTURE OPTIMISATION Capital raise strengthened the Company’s balance sheet after two highly leveraged transactions Two Successfully Executed Transactions Capital Raise • On 5 May 2022, Hafnia has successfully completed a private placement of new 1. Acquisition of Chem
Slide 6: Agenda
AGENDA Q1 2022 Highlights/Overview Financial Summary Industry Review & Outlook Conclusion 6
Slide 7: Q1 2022 Financial Summary
Q1 2022 FINANCIAL SUMMARY Income Statement Q1 2021 Q1 2022 Dividend overview Q1 2022 USDm Revenue 179.3 267.3 Net profit USD 21.3m Voyage expenses (79.4) (104.0) TCE income 100.0 163.4 Payout ratio - % 50.2% Other operating income 4.6 6.0 Vessel operating expenses (45.6) (57.4) Total dividend USD 10
Slide 8: Q1 2022 Financial Summary: TCE Segment Breakdown
Q1 2022 FINANCIAL SUMMARY Q1 2022 saw an average TCE of USD 15,761 per day TCE Segment Breakdown Coverage as of 20 May 2022 Q1 2021 Q1 2022 Q2 2022 Q2 – Q4 2022 Operating TCE TCE Operating TCE TCE Covered Covered rates Covered Total Covered rates days1 (USD/day) (USD m) days1 (USD/day) (USD m) (%) (
Slide 9: Q1 2022 Financial Summary: OPEX and Breakeven
Q1 2022 FINANCIAL SUMMARY Q1 2022 saw an average OPEX of USD 6,723 per day OPEX Segment Breakdown Q1 2022 Operating Cash Flow Breakeven (Full Fleet) Q1 2021 Q1 2022 USD/day Calendar OPEX1 OPEX Calendar OPEX1 OPEX 15,000 days (USD/day) (USD m) days (USD/day) (USD m) LR2 540 6,131 3.3 540 6,568 3.5 LR
Slide 10: Significant Earnings Potential
SIGNIFICANT EARNINGS POTENTIAL Recent upturn in product tanker market signify strong earnings potential for 2022 Analysts’ consensus YTD 2022 average Rates from week Q2 covered rates 3 beginning 16 May4 rates1 rates2 ~1,150 ~790 EBITDA sensitivities ~600 (USDm) ~530 Anal yst s ' consens us rat es YT
Slide 11: Agenda
AGENDA Q1 2022 Highlights/Overview Financial Summary Industry Review & Outlook Conclusion 11
Slide 12: Steady Recovery in World Oil Demand
STEADY RECOVERY IN WORLD OIL DEMAND Supply and Demand of Global Oil TSA Travellers Throughput in US 2019-2022 m barrels/d m travellers 105 3.0 100 2.5 2.0 95 1.5 90 1.0 85 0.5 80 0.0 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May
Slide 13: Fleet Utilization and Tonne-Mile Increase
FLEET UTILIZATION AND TONNE-MILE INCREASE MR Laden Distance and Utilization # MR Units m tonne-mile/MR Unit 1,650 2.9 • Since the beginning of the 1,600 2.8 situation in Ukraine, we have seen an increased in laden 1,550 2.7 utilisation 1,500 13th May 2022: 2.6 ▪ Utilisation #MR Units: ↑ 5.5% from 22
Slide 14: Inventories See Marginal Increase
INVENTORIES SEE MARGINAL INCREASE OECD Total Oil Industry Stocks Level Trade Volumes vs Tonne-Miles m barrels CPPs and Chemicals Dirty Petroleum Products 3,300 3,200 m barrels b tonne-miles b barrels b tonne-miles 700 278.6 280.9 300 130 1,100 3,100 269.9 969.7 909.1 902.0 3,000 900 2,900 500 428.6
Slide 15: Refineries and Crude Throughput Growth
REFINERIES AND CRUDE THROUGHPUT GROWTH Global Refining Crude Throughput m barrels/d • Global refinery throughputs declined in April plunged to 78 mb/d, 84 mainly due to China where refiners cut back refinery runs as a result 82 of severe lockdown measures. US refining activity also saw a counter- se
Slide 16: Global Product Tanker Fleet
GLOBAL PRODUCT TANKER FLEET Orderbook % Fleet (DWT) Increasing Newbuild Prices % of fleet USDm 100 55 50 80 45 60 May 2022: ▪ Product: 4.93% (↓48% from May 2017) 40 40 ▪ Crude: 6.16% (↓54% from May 2017) ▪ Chemical: 6.80% (↓55% from May 2017) 35 20 30 0 25 1998 2000 2002 2004 2006 2008 2010 2012 201
Slide 17: Agenda
AGENDA Q1 2022 Highlights/Overview Financial Summary Industry Review & Outlook Conclusion 17
Slide 18: Hafnia's ESG Strategy
HAFNIA’S ESG STRATEGY Our ESG Initiatives IMO’s Carbon Intensity Targets 8 Hafnia's Status Hafnia's Projected 7 gms CO2 / DWT - Nm IMO's Target Carbon Intensity 6.20 (Pre-Transaction) 6.04 IMO's Target Carbon Intensity 5.77 (Post-Transaction) 6 5 4.67 5.83 5.70 5.40 6.4% better than Aim for two 4.35
Slide 19: Hafnia Today Offers a Wider and Deeper Proposition
HAFNIA TODAY OFFERS A WIDER AND DEEPER PROPOSITION STRONG PRODUCT MARKET OUTLOOK AND FUNDAMENTALS LARGEST OPERATOR OF PRODUCT AND CHEMICAL TANKERS IN THE WORLD STRONG FOCUS ON ESG INITIATIVES AND HIGHLY REPUTABLE BOARD OF DIRECTORS STRONG RELATIONSHIPS WITH INDUSTRY PARTNERS AND INVESTOR COMMUNITY 1
Slide 20: Contacts
CONTACTS CEO CFO EVP EVP, IR, Research and Commercial Performance Management MIKAEL SKOV PERRY VAN ECHTELT JENS CHRISTOPHERSEN THOMAS ANDERSEN Email: ms@hafniabw.com Email: pve@hafniabw.com Email: jch@hafniabw.com Email: tha@hafniabw.com 20
Slide 21: Thank You
HANIA Member of BW Group THANK YOU www.hafniabw.com