Hafnia Limited · OSL:HAFNI
Hafnia — Q3 2023 Earnings Presentation
26 slides from Hafnia's earnings presentation, November 2023
Slide 1: Hafnia Quarterly Financial Investor Presentation Q3 2023
Hafnia Limited Quarterly Financial Hafnia Quarterly Financial Investor Presentation Q3 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 Q3 2023 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 Investment Summary # Vessels Owned1/ 114x/14x 1 Time Chartered-in LR2: 8x LR1: 31x/4x ACTIVE MANAGEMENT MR2: 51x/10x Handy2: 24x Proactively reviewing market for opportunities that create st
Slide 5: Hafnia Key Updates
HAFNIA KEY UPDATES 1. Welcome of Newbuild 2. Sustainability-Linked 3. US Dual Listing1 Credit Facility ▪ Welcomed Hafnia Larvik (LR2 LNG ▪ In Q3, we have signed a USD 303 ▪ Hafnia’s Board has authorized dual-fuelled) in October 2023. million sustainability-linked credit management to commence facili
Slide 6: Agenda
Agenda Q3 2023 Overview Financial Summary Industry Review & Outlook ESG Overview
Slide 7: Strong Shareholder Return Through Active Management
STRONG SHAREHOLDER RETURN THROUGH ACTIVE MANAGEMENT Q3 & YTD 9M 2023 Financial Results Strong Shareholder Returns USDm 70% 600 TCE Income 60% 60% 60% 70% 500 USD 310.3M 50% YTD 9 months 2023 of USD 1,036.8M 37.2% 400 31.4% 30.1% 27.4% 30% 300 263.8 EBITDA 256.6 213.3 10% 200 USD 220.8M 159.0 154.0 1
Slide 8: Q3 & YTD 9M 2023 Financial Summary
Q3 & YTD 9M 2023 FINANCIAL SUMMARY Income Statement USDm Q3 2022 9M 2022 Q3 2023 9M 2023 Total Liquidity & Hedge Ratio USDm Weighted average TCE income 407.6 919.3 310.3 1,036.8 600 hedged rate of 1.60% 100% 415 ~540 Other operating income 12.1 26.6 14.9 36.2 500 77.4% 80% Vessel operating & technic
Slide 9: Q3 2023 Operating Summary
Q3 2023 OPERATING SUMMARY Q3 2023 average TCE of USD 28,954 per day TCE Segment Breakdown OPEX Segment Breakdown Q3 2022 Q3 2023 Q3 2022 Q3 2023 Operating TCE Operating TCE Calendar OPEX2 Calendar OPEX2 days1 (USD/day) days1 (USD/day) days (USD/day) days (USD/day) LR2 552 36,926 552 31,272 LR2 552 6
Slide 10: Fleet Coverage
FLEET COVERAGE 65% of fleet is covered for Q4 2023 at USD 29,893 per day Average Daily TCE by Vessel Type USD/day Q4 2022 Q1 2023 60,000 Q2 2023 Q3 2023 Coverage as of 8 November 2023 Covered Q4 2023 50,000 Q4 2023 2024 Covered Covered Covered Covered rates rates (%) (%) 40,000 (USD/day) (USD/day) L
Slide 11: Earnings Guidance for 2023
EARNINGS GUIDANCE FOR 2023 Strong fundamentals and positive outlook for product tanker market in 2023 Analysts’ Consensus1 Q4 2023 Covered Rates2 YTD Oct 2023 Covered Rates3 USDm USDm USDm 1,500 1,500 1,500 ~1,020 ~1,040 ~1,010 1,000 1,000 1,000 ~770 ~770 ~790 500 500 500 0 0 0 FY 2023 EBITDA FY 202
Slide 12: Agenda
Agenda Q3 2023 Overview Financial Summary Industry Review & Outlook ESG Overview
Slide 13: Higher Oil Demand and Daily Loadings
HIGHER OIL DEMAND AND DAILY LOADINGS Daily CPP and Chemical Loadings Worldwide Global Oil Demand and Supply m barrels/day m barrels/d 20 110 19.5 19.3 19.3 104.1 19.2 105 102.8 19 103.6 100 101.8 18.0 18 17.9 95 17.8 90 17 85 16 80 Jul-22 Jul-23 Jun-22 Nov-22 Jun-23 Apr-22 May-22 Aug-22 Dec-22 Apr-2
Slide 14: 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 25 10.5 11 55 34.2 35 33.1 32.3 9.6 9.7 10 9.0 50 28.7 30 8.6 9 20 19.3 45.7 27.3 44.9 44.7 17.9 8 45 17.7 17.8 42.4 25 15.9 7 40 39.2 15 6 20 35 5 10 4 30 1
Slide 15: Europe Imports and Inventory Levels on a Decline
EUROPE IMPORTS AND INVENTORY LEVELS ON A DECLINE Europe Import Levels Europe Inventory Levels m barrels/day m barrels Total CPP 1.4 Diesel 800 104 1.2 102 750 100 1.0 0.8 98 700 0.6 96 0.4 650 94 0.2 92 0.0 600 90 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Africa Caribbean North Am
Slide 16: Refinery Capacity, Oil on Water and Cannibalization
REFINERY CAPACITY, OIL ON WATER AND CANNIBALIZATION Middle East Refinery Exports Oil on Water barrels/day m barrels TCE/day 350,000 Combined Max Capacity 400 60,000 1,300,000 Barrels 300,000 375 50,000 250,000 350 40,000 200,000 150,000 325 30,000 100,000 300 20,000 50,000 275 10,000 0 Qtr1 Qtr2 Qtr
Slide 17: Accumulated Fleet Ageing Profile
ACCUMULATED FLEET AGEING PROFILE Handysize (CPP & DPP) MR (CPP & DPP) # Vessels # Vessels 300 289 400 269 353 238 350 250 300 285 200 261 200 250 224 158 214 142 189 150 200 176 185 114 117 117 162 112 106 145 138 102 150 121 132 115 100 76 82 92 58 100 42 63 50 22 26 26 40 48 8 16 50 13 0 0 2023 20
Slide 18: Anticipated Fleet Balances
ANTICIPATED FLEET BALANCES Handy, MR, LR1, LR2 in MR Equivalents VLCC & Suezmax in Suezmax Equivalents # MR Equivalents # Suezmax Equivalents 300 200 200 100 100 0 0 -9 -100 -100 -107 -104 -141 -200 -139 -185 -200 -178 -300 -222 -314 -400 -300 -287 End 2023 End 2024 End 2025 End 2026 End 2027 2023 2
Slide 19: 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 20: Supply Remains Positive Despite Contracting Pick Up
SUPPLY REMAINS POSITIVE DESPITE CONTRACTING PICK UP Historical Shipyard Development Historical & Scheduled Newbuild Deliveries No. # Yards ~1,540 additional ships 350 350 >20 Years by 2029 319 300 300 250 20-year scrap 250 200 200 Orderbook 150 150 25-year scrap 150 126 100 100 71 43 50 30 50 24 8 0
Slide 21: End of Sanctions Market Impact
END OF SANCTIONS MARKET IMPACT Estimated Impact in MR Equivalents Profile of Russian Trading Fleet # MR Equivalents # MR Equivalants 300 250 227 230 250 210 Blue Chip 200 197 Non Blue Chip 190 150 170 100 150 50 • We estimate a total of ~270 MR equivalents needed to carry Russian CPP exports and rep
Slide 22: Agenda
Agenda Q3 2023 Overview Financial Summary Industry Review & Outlook ESG Overview
Slide 23: ESG Project Highlights
ESG PROJECT HIGHLIGHTS Ascension Clean Energy Dual Fuel Vessels • Collaboration with Clean Hydrogen Works on the development of a clean hydrogen • Invested in several dual-fuel Newbuilds ammonia production and export project • As part of Vista joint venture, invested in four • Project aims to captur
Slide 24: World's Leading Tanker Owner
WORLD’S LEADING TANKER OWNER 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 24
Slide 25: Our Team
OUR TEAM Mikael Skov Perry Van Echtelt Søren Skibdal Winther Thomas Andersen CEO CFO VP, Commercial EVP, IR, Research & Performance Management ms@hafniabw.com pve@hafniabw.com ssw@hafniabw.com tha@hafniabw.com
Slide 26: Thank you
Thank you www.hafniabw.com