Hunter Group Asa · OSL:HUNT
Hunter Group Asa — Investor Presentation (December 2023)
17 slides from Hunter Group Asa's investor presentation, Dec 6, 2023
Slide 1: Hunter Group ASA – Company Presentation December 2023
Hunter Group ASA – Company Presentation December 2023
Slide 2: Forward looking statements
Forward looking statements CERTAIN STATEMENTS INCLUDED IN THIS DOCUMENT CONTAIN FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING PLANS, OBJECTIVES, GOALS, STRATEGIES, FUTURE EVENTS OR PERFORMANCE, AND UNDERLYING ASSUMPTIONS AND OTHER STATEMENTS, WHICH ARE OTHER TH
Slide 3: Hunter Group's leadership
Hunter Group’s leadership Erik A. S. Frydendal Lars M. Brynildsrud Sujoy K. Seal CEO CFO COO • Mr. Frydendal has served as Hunter Group's CEO • Mr. Brynildsrud has served as CFO since August • Mr. Seal has served as COO since May 2018. since May 2018. 2019, and as board member since March 2023. • Mo
Slide 4: Company background and shareholder group
Company background and shareholder group Recent key events Invested around $700m for the construction of eight newbuild ECO Surfside Holding AS scrubber-fitted VLCCs from DSME in 13% 2018 South Korea, in addition to supervision of the construction of 4 additional VLCCs at the same yard B.O. Steen Sh
Slide 5: Virtually zero growth in the VLCC fleet next four years
Virtually zero growth in the VLCC fleet next four years Only 20 VLCCs expected to be delivered 2024-’271 # of VLCCs 2.2% OB to fleet 68 65 59 51 50 49 47 42 38 39 37 35 33 29 29 30 28 28 23 24 22 20 18 14 10 4 3 4 4 4 2 2 Note: Vessels with given IMO number 5 Source: Fearnresearch
Slide 6: CGT deliveries and orderbook
Yards are in general fully booked until 2027 Supply growth visibility for the next 3 years Comments World deliveries & orderbook by segment • The yards are at full capacity and prioritizing higher margin Container LNG Tankers segments like LNG, Container and 12 LPG Bulk Carriers Others 5y median 10
Slide 7: Oil demand expected to increase steadily
Oil demand expected to increase steadily Million barrels per day 110 2028: 106 105 2023: 102 100 2014: 94 95 90 85 80 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Source: EIA 7
Slide 8: Supply/demand imbalance drives VLCC tonne-mile growth
Supply/demand imbalance drives VLCC tonne-mile growth As oil production moves further from demand there will be a potential need for about 30 new VLCC equivalents per year Oil surplus West of Suez Oil deficit East of Suez Oil supply/demand growth 2022-’28 West of Suez Oil supply/demand growth 2022-’
Slide 9: Above average tanker demand growth in coming years
Above average tanker demand growth in coming years World seaborne crude oil trade, billion tonne-miles (% Yr/Yr) Above long-term average growth in tonne- mile expected for the next three years Expanding oil refining capacity in the east, while producing crude in the west — a 7.0% positive sign for t
Slide 10: Consensus estimates suggest a tight VLCC market
Consensus estimates suggest a tight VLCC market Historical annual benchmark rate versus HUNT TC-in1 Average consensus benchmark rate estimates2 Consenus high Consensus average Benchmark TD3C rate HUNT TC-in less ECO/Scrubber adj. Consensus low HUNT TC-in less ECO/Scrubber adj. 120,000 120,000 100,00
Slide 11: ECO/scrubber savings currently at about $17,250/day
ECO/scrubber savings currently at about $17,250/day Current fuel cost per day – TD3C roundtrip case study1 Historical HSFO vs. VLSFO spread 600 $17,235 39,943 High point implies 500 USD 36,500 eco/scrubber USD per tonne per day premium 22,708 400 USD per tonne per day 300 ECO scrubber Benchmark Benc
Slide 12: ~50% increase in VLCC NB cost since 2018
~50% increase in VLCC NB cost since 2018 Newbuild cost development since 2000 Lifetime benchmark rates required for 10% unlevered return VLCC newbuild cost ($m) $85m for Hunter • VLCC newbuild cost has increased significantly NB in 2018 180 vs. $128m VLCC o ~50% increase in newbuild cost since 2018
Slide 13: Currently a dislocation between ship values and TC rates
Currently a dislocation between ship values and TC rates VLCC resale values are 25% above historical average While the 3-year TC rate is 11% lower than historical spot rates +25% -11% 130 58,238 52,250 104 USD million USD million Average VLCC resale value since 2005 Current VLCC resale value Histori
Slide 14: Clear benefits of an index charter
Clear benefits of an index charter Historical monthly benchmark rate versus HUNT TC-in Benefits of index charters relative to operating in the spot market Benchmark TD3C rate HUNT TC-in less ECO/Scrubber adj. ✓ Exposure to every single market movement 300,000 ✓ 365 operational days 250,000 ✓ No off-
Slide 15: Attractive return potential in a tightening market
Attractive return potential in a tightening market Return scenario for one TC-in VLCC Total return (%)2 • On average consensus benchmark 1,075% rates and a USD 15,266 per day ECO/Scrubber premium1 the total potential return is 602% for a three- 602% year period. 258% 43% • On 20-year average benchma
Slide 16: Summary
Summary • The orderbook for VLCCs is at the lowest level in more than 30 years in combination with a record high portion of the fleet being older than 15 years. • Yards are in general full until 2026. The earliest possible VLCC newbuild slot is H2 2026, i.e. supply growth Market thesis is given for
Slide 17: Hunter Group ASA
Hunter Group ASA Org. nr. 985 955 107 Dronningen 1 0287 Oslo, Norway +47 975 31 227 info@huntergroup.no