Hafnia Limited · OSL:HAFNI
Hafnia — Q3 2020 Earnings Presentation
21 slides from Hafnia's earnings presentation, Nov 20, 2020
Slide 1: Hafnia Limited Investor Presentation Q3 2020
HAFNIA LIMITED I N V E S TO R P R E S E N TAT I O N Q3 2020 20 November 2020
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 Q3 2020 Highlights/Overview Industry Review Governance & ESG Overview 3
Slide 4: Agenda
AGENDA Q3 2020 Highlights/Overview Industry Review Governance & ESG Overview 4
Slide 5: Q3 2020 Highlights - Snapshot
Q3 2020 HIGHLIGHTS - SNAPSHOT Time Charter Equivalent (TCE) EBITDA External Fees Q3 2020 - USD 118.5 Mill Q3 2020 - USD 51.7 Mill Q3 2020 - USD 5.2 Mill Q3 2019 – USD 106.7 Mill (+11%) Q3 2019 – USD 50.0 Mill (+3%) Q3 2019 – USD 4.9 Mill (6%) Earnings YTD 2020 - USD 518.9 Mill YTD 2020 - USD 327.2 M
Slide 6: Market Update Q3 2020
MARKET UPDATE Q3 2020 ▪ Overall, suppressed product tanker earnings in Q3 2020 were attributed to weak oil product demand, low refinery utilization from muted refining margins and the build-up of active tonnage supply from the steady unwinding of vessels in floating storage. Oil demand recovered thr
Slide 7: Market Update Q4 2020, to-date
MARKET UPDATE Q4 2020, to-date The product tanker market in Q4 2020 thus far has been an extension of the suppressed market in Q3 2020. Oil demand continues to be weak on the back of the second wave of coronavirus particularly in the West. Similarly, the product tanker market outlook at present rema
Slide 8: Financial Summary
FINANCIAL SUMMARY YTD 2020 annualized return on invested capital of 12.3% and return on equity of 20.4% 40% 33.5% Income statement 2020 Q3 2019 Q3 2020 30% 27.3% USDm YTD Revenue USDm 188.5 165.5 702.8 Return on 20% 16.2% Voyage expenses " (81.8) (47.0) (184.0) equity 10% (annualized) 0.1% TCE incom
Slide 9: Pool Economics
POOL ECONOMICS Global commercial platform with chartering teams at strategic locations Pool economics Earnings contribution from commercial management • Earnings from the pools and other fee generating Fixed Commission streams generated USD 5.2 million in revenue in Q3 Pool 2020 and USD 18.5 million
Slide 10: Investment Highlights Summary
INVESTMENT HIGHLIGHTS SUMMARY Key value proposition • Expected full year cash break-even at USD 13,800 per day across the entire fleet provides strong cash 1 Best commercial performance flow potential Strong • Efficient operations with low opex and SG&A earnings combined with best-in-class financing
Slide 11: Agenda
AGENDA Q3 2020 Highlights/Overview Industry Review & Outlook Governance & ESG Overview 11
Slide 12: Global Product Tanker Fleet
GLOBAL PRODUCT TANKER FLEET 200 14% 12% ✓ The product tanker orderbook is 150 historically low at just 6% of the 10% global fleet 8% 100 ✓ Measured in # of ships, 34% of YOY fleet growth 173 172 6% # of vessels 146 130 80 the fleet is older than 15 years 116 119 112 113 50 100 4% 89 83 2% ✓ Measured
Slide 13: Scrapping
SCRAPPING LR2 LR1 Scrapping age Scrapping age 35 35 30 30 25 25 20 20 15 15 10 10 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 2014 2015 2016 2017 2018 2019 2020 MR & Handy Comments Scrapping age Scrapping activity remains low for larger vessels but has picked up in 35 recent years for MRs. For
Slide 14: Market Outlook & Risks
MARKET OUTLOOK & RISKS Floating storage – as of 28 October Global Oil Demand 2008-10 vs 2019-21 80 12 105 70 100 10 60 95 8 50 mbbl/day 90 40 6 % # 85 30 4 20 80 2 10 75 0 0 70 VLCC+ Suezmax Aframax LR2 LR2 LR1 LR1 Panamax MR Handy trading trading trading trading Mar Jun Sep Dec Mar Jun Sep Dec Mar
Slide 15: Regional OECD Industry Stocks Returning to Normal
REGIONAL OECD INDUSTRY STOCKS RETURNING TO NORMAL OECD end-of-month industry stocks in days of forward demand and millions barrels of total oil Americas Europe Asia Oceania OECD Total Oil Source: IEA 15
Slide 16: 2020 Demand Drop Expected to Exceed Fleet Growth in 2021
2020 DEMAND DROP EXPECTED TO EXCEED FLEET GROWTH IN 2021 Seaborne product demand Orderbook Supply and demand growth for product tankers Bn tonne-miles % of fleet 3,011 2,989 2,888 2,799 70 2,558 20,000 8% 60 2,082 50 6% 1,561 40 30 15,000 4% 20 10 2% USD/day 0 10,000 0% 2000 2005 2010 2015 2019e 202
Slide 17: Agenda
AGENDA Q3 2020 Highlights/Overview Industry Review Governance & ESG Overview 17
Slide 18: Strong Focus on Corporate Governance and Aligned Incentives
STRONG FOCUS ON CORPORATE GOVERNANCE AND ALIGNED INCENTIVES Corporate governance overview Fully aligned incentives with no fee leakage Highly reputable Board of Directors • Hafnia has a fully integrated business model • Highly experienced and reputable Board of Directors - In-house commercial manage
Slide 19: Hafnia's ESG Strategy
HAFNIA’S ESG STRATEGY Hafnia’s ESG efforts at a glance Objectives and status snapshot 1 Key facts and figures Objective Compliance obligations Current status Vetting observations (SIRE) per inspection* <3 Zero oil spills to sea MARPOL Annex I Zero oil spills to sea ✓ Port state control (PSC) deficie
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
THANK YOU www.hafniabw.com