Hafnia Limited · OSL:HAFNI
Hafnia — Q1 2024 Earnings Presentation
24 slides from Hafnia's earnings presentation, May 15, 2024
Slide 1: Hafnia Limited Q1 2024 Investor Presentation
Hafnia Limited Q1 2024 Investor Presentation
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 2024 Overview Financial Summary Industry Review & Outlook ESG Overview
Slide 4: Introduction to Hafnia
INTRODUCTION TO HAFNIA Fully integrated shipping platform with 100% alignment of interests and no fee leakage Vessels Owned1 / ACTIVE MANAGEMENT Time Chartered-in SHAREHOLDER VALUE Proactively reviewing market for ▪ LR2: 10x Consistent dividend payout since opportunities that create stronger ▪ LR1:
Slide 5: Active Management & Strong Shareholder Returns
ACTIVE MANAGEMENT & STRONG SHAREHOLDER RETURNS Strategic Acquisitions and Joint Ventures Transparent and Sustainable Dividend Policy • In April 2024, Hafnia announced an increase to its dividend payout ratio. 2018 Vista Joint Venture Hafnia now targets a quarterly payout ratio of net profit, adjuste
Slide 6: Agenda
Agenda Q1 2024 Overview Financial Summary Industry Review & Outlook ESG Overview
Slide 7: Strong First Quarter and Shareholder Return
STRONG FIRST QUARTER AND SHAREHOLDER RETURN Q1 2024 Financial Highlights Strong Shareholder Returns USDm TCE Income1 600 80% 70% 70% 80% USD 378.8M 500 60% Q1 2023 of USD 377.2M 50% 400 30.1% Adjusted EBITDA1 27.4% 26.3% 24.2% 300 20% USD 287.1M 213.3 219.6 200 176.4 175.7 Q1 2023 of USD 296.0M 146.
Slide 8: Q1 2024 Financial Summary
Q1 2024 FINANCIAL SUMMARY Income Statement USDm Q1 2023 Q1 2024 Total Liquidity & Hedge Ratio USDm Weighted average TCE income2 377.2 378.8 500 120% hedged rate of 1.70% 283 ~412 100% Other operating income 11.1 9.8 400 81.8% Vessel operating & technical management expenses (70.7) (75.3) 80% 300 60%
Slide 9: Operating Summary and Fleet Coverage
OPERATING SUMMARY AND FLEET COVERAGE Q1 2024 saw average TCE of USD 36,230 per day; 68% of fleet covered for Q2 2024 at USD 37,896 per day TCE Segment Breakdown Coverage as of 10 May 2024 Q1 2023 Q1 2024 Q2 2024 Q2 – Q4 2024 Operating TCE2 Operating TCE2 Covered Covered rates Covered Covered rates d
Slide 10: Pool and Bunker Economics
POOL AND BUNKER ECONOMICS Fee-generating adjacent revenue streams contributed USD 9.8m to our performance in Q1 2024 Pool Commission Structure Bunker Commission Structure Commission Structure: Commission Structure: All excl Specialized and Chemical pools: ▪ USD 271.5 per calendar day 3rd party vesse
Slide 11: Earnings Scenarios for 2024
EARNINGS SCENARIOS FOR 2024 Fundamentals remain steady and promising outlook for product tanker market in 2024 Analysts’ Consensus1 Q2 2024 Covered Rates2 Q2 – Q4 2024 Covered Rates3 USDm USDm USDm 1,500 1,500 1,500 ~1,230 ~1,150 ~1,070 1,000 1,000 ~950 1,000 ~870 ~800 500 500 500 0 0 0 4 4 4 FY 202
Slide 12: Hafnia Dual Listing Update
HAFNIA DUAL LISTING UPDATE Trading Volume Since Listing Share Price (NOK) Trading Volume (m) 90 3.0 85 2.5 80 2.0 75 1.5 70 1.0 65 0.5 60 0.0 03-Apr 05-Apr 09-Apr 11-Apr 15-Apr 17-Apr 19-Apr 23-Apr 25-Apr 29-Apr 01-Mar 05-Mar 07-Mar 11-Mar 13-Mar 15-Mar 19-Mar 21-Mar 25-Mar 27-Mar 02-May 06-May 08-M
Slide 13: Agenda
Agenda Q1 2024 Overview Financial Summary Industry Review & Outlook ESG Overview
Slide 14: Positive Outlook for Product Trade
POSITIVE OUTLOOK FOR PRODUCT TRADE Clean Petroleum Products On Water CPP Ton-Days versus MR and LR1 Earnings m barrels m tonne-Days USD/Day 550 70 60,000 516 68 50,000 500 66 481 64 40,000 450 434 62 60 30,000 400 58 20,000 56 350 54 10,000 52 300 50 0 Jan Jan Apr Jan Apr Jan Apr Jan Apr Apr Jan Apr
Slide 15: Higher Cargo Volumes and Ton-Miles
HIGHER CARGO VOLUMES AND TON-MILES CPPs and Chemicals Dirty Petroleum Products m barrels/day b tonne-miles/day m barrels/day b tonne-miles/day 20 12 55 36 11.4 35.0 35.0 34.5 10.9 33.6 11 34 19 9.6 9.7 10 32 9.4 18.6 31.1 50 9.1 18.2 9 30 47.8 29.1 18.0 18 17.8 17.5 8 28 45 44.3 44.3 7 26 17 42.9 42
Slide 16: Inventory Levels Remain Below Average
INVENTORY LEVELS REMAIN BELOW AVERAGE Worldwide Product Inventories CPP Land based Inventory + Oil on Water vs World Oil Demand m barrels m barrels m barrels 2,200 2,400 105 2,300 2,000 100 2,200 1,800 2,100 95 2,000 1,600 1,900 90 1,400 1,800 1,700 85 1,200 1,600 1,000 1,500 80 Jan Jan Jan Jan Sep
Slide 17: Refinery Capacity Landscape
REFINERY CAPACITY LANDSCAPE Net Refinery Additions & Global Refinery Runs New Refinery Exports – Jizan, Dqum, Al Zhour, Dangote m barrels m barrels/day barrels/day 2.0 90 2,000,000 Combined Max Capacity 1,900,000 Barrels 1,800,000 1.5 85 1,600,000 1,400,000 1.0 80 1,200,000 0.5 1,000,000 75 800,000
Slide 18: Reduced Utilisation of Ageing Fleet
REDUCED UTILISATION OF AGEING FLEET Handy, MR, LR1/Panamax, LR2/Aframax AGE 15 – 19 Versus Younger AGE 20+ Versus Younger >15-19 Year as % of >20 Year to Scrap as Younger Fleet % of Younger Fleet 100% 96% 100% 92% 89% 89% 88% 88% 83% 80% 81% 79% 80% 77% 77% 80% 70% 67% 66% 63% 60% 60% 57% 49% 49% 48
Slide 19: Product Tanker Outlook Remains Very Positive
PRODUCT TANKER OUTLOOK REMAINS VERY POSITIVE Global Oil Demand and Supply Product Tanker Age Profile m barrels/d No. 110 250 105.4 105 102.0 105.0 200 20+ Years 101.7 510 Vessels 100 150 Orderbook 95 100 25+ Years by 2027 90 238 Vessels 50 25+ Years 85 105 Vessels 80 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 20: Agenda
Agenda Q1 2024 Overview Financial Summary Industry Review & Outlook ESG Overview
Slide 21: ESG Targets and Commitments
ESG TARGETS AND COMMITMENTS Environment Social Governance 40% reduction Zero harm across our operations ✓ Lost Time Incident Frequency < 0.4 observations of our fleet’s carbon intensity by 2028 (compared to 2008 levels) ✓ Total Recordable Case Frequency < 1.0 observations ✓ Port State Control < 1.0
Slide 22: Project Highlights
PROJECT HIGHLIGHTS Dual Fuel Vessels Studio 30/50 Complexio ▪ Invested in several dual-fuel Newbuilds ▪ Jointly with Microsoft, Wilhelmesen, IMC ▪ Co-founder of Complexio, a foundational Venture and DNV, announced digital AI trained on whole company data for ▪ As part of Vista joint venture, investe
Slide 23: 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 24: Thank you
Thank you www.hafniabw.com