Hafnia Limited · OSL:HAFNI
Hafnia — Q2 2024 Earnings Presentation
22 slides from Hafnia's earnings presentation, Aug 23, 2024
Slide 1: Quarterly Financial Investor Presentation Q2 2024
Quarterly Financial Hafnia Limited Investor Presentation Q2 2024
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 Q2 2024 Overview Industry Review & Outlook Financial Summary ESG Overview
Slide 4: Q2 Key Highlights
Q2 KEY HIGHLIGHTS TCE Income1 USD 417.4M YTD 1H 2024 of USD 796.2M Adjusted EBITDA1 USD 317.1M YTD 1H 2024 of USD 604.1M Net Profit USD 259.2M YTD 1H 2024 of USD 478.8M Dividend USD 207.4M USD 0.4049 per share • The commercially managed pool and bunker procurement business generated an income of USD
Slide 5: Unparalleled Investment Opportunity
UNPARALLELED INVESTMENT OPPORTUNITY Fully integrated shipping platform with 100% alignment of interests and no fee leakage Investment Highlights ACTIVE UNPARALLELED SHAREHOLDER EARNINGS FOCUS MANAGEMENT SCALE VALUE PATHWAY ON ESG Proactively reviewing Commercially managing a fleet Consistent dividen
Slide 6: Active Management with Strong Shareholder Focus
ACTIVE MANAGEMENT WITH STRONG SHAREHOLDER FOCUS Hafnia Strategic Acquisitions and Joint Ventures Strong Shareholder Returns USDm 600 80% 80% 70% 70% 2018 Vista Shipping Joint Venture 70% Joint venture with CSSC (Hong Kong) Shipping Company Limited 500 with joint control of 50% ownership interest eac
Slide 7: Agenda
Agenda Q2 2024 Overview Industry Review & Outlook Financial Summary ESG Overview
Slide 8: Strong Market Fundamentals for Product Trade
STRONG MARKET FUNDAMENTALS FOR PRODUCT TRADE Clean Petroleum Products On Water & Daily Departures CPP Ton-Days versus MR and LR1 Earnings m barrels m barrels/day # Mio Ton-Days Red Sea Houthi USD/Day 550 28 70 Conflict 50,000 517 45,000 27 Russian Sanctions 500 480 Russia / Ukraine 40,000 26 65 Conf
Slide 9: 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 50 35 8% 10.7 32.5 32.4 32.1 31.8 19 9.8 9.8 10 30.2 30.5 9.3 46.2 8.8 8.9 18.5 18.5 8.8 18.4 45 30 29.0 18 44.9 44.8 44.6 44.2 17.9 17.7 8 17.3 42.3 1
Slide 10: Refinery Landscape and Inventory Levels
REFINERY LANDSCAPE AND INVENTORY LEVELS New Refinery Exports – Jizan, Dqum, Al Zhour, Dangote CPP Land based Inventory + Oil on Water vs World Oil Demand barrels/day m barrels m barrels/day 2,000,000 Combined Max Capacity 2,400 103.9 105 1,800,000 1,900,000 Barrels 2,300 102.9 1,600,000 100 2,200 1,
Slide 11: Crude Tankers Cannibalization
CRUDE TANKERS CANNIBALIZATION Crude Tankers Cannibalization of Clean Cargo CPP On Water VLCC & Suezmax Cannibalization # Aframax m barrels m barrels USD/day Equivalents 500 25 20 40,000 18 30m 30,000 480 barrels 20 16 20,000 14 460 10,000 15 12 10 0 440 8 10 -10,000 420 6 -20,000 4 5 400 -30,000 2 0
Slide 12: Reduced Utilisation of Ageing Fleet (Handy – Aframax)
REDUCED UTILISATION OF AGEING FLEET (HANDY – AFRAMAX) MR Equivalent Fleet Size and Age Distribution Reduced Utilization (Age Grouped) # MR Equivalents # Utilization % / # MR Equivalents 5,600 100% Days 6% 6% 7% 7% 7% 100% 250 11% 5,572 15% 90% 14% 16% 5,514 5,500 20% 83% 23% 80% 81% 80% 200 25% 77%
Slide 13: Product Tanker Outlook Remains Very Positive
PRODUCT TANKER OUTLOOK REMAINS VERY POSITIVE LR2 (Coated) Trading DPP versus LR2 (Coated) Newbuilds Product Tanker Age Profile # Vessels No. 250 300 274 120% 110% 250 200 Orderbook 100% 20+ Years 200 169 ~510 Vessels 90% 151 150 80% 150 70% 100 60% 100 50 25+ Years by 2027 50% ~238 Vessels 0 40% 25+
Slide 14: Agenda
Agenda Q2 2024 Overview Industry Review & Outlook Financial Summary ESG Overview
Slide 15: Q2 & 1H 2024 Financial Summary
Q2 & 1H 2024 FINANCIAL SUMMARY Income Statement Total Liquidity & Hedge Ratio Q2 2023 1H 2023 Q2 2024 1H 2024 USDm Weighted average USDm 424 ~591 hedged rate of 1.77% TCE income1 349.3 726.5 417.4 796.2 600 100% 88.6% Other operating income 10.1 21.2 10.7 20.5 500 80% Vessel operating & technical ma
Slide 16: Operating Summary and Fleet Coverage
OPERATING SUMMARY AND FLEET COVERAGE Q2 2024 saw average TCE of USD 39,244 per day; 72% of fleet covered for Q3 2024 at USD 34,934 per day TCE Segment Breakdown Coverage1 as of 9 August 2024 Q2 2024 Q3 2024 Q3 and Q4 2024 3 3 Spot TCE TCE Covered Covered rates Covered Covered rates Operating days2 (
Slide 17: Earnings Scenarios for 2024
EARNINGS SCENARIOS FOR 2024 Fundamentals remain steady and fundamentals for the product tanker market remain positive in 2024 Analysts’ Consensus1 Q3 2024 Covered Rates2 Q3 and Q4 2024 Covered Rates3 USDm USDm USDm 1,500 1,500 1,500 ~1,170 ~1,150 ~1,130 1,000 1,000 1,000 ~910 ~890 ~870 500 500 500 0
Slide 18: Agenda
Agenda Q2 2024 Overview Industry Review & Outlook Financial Summary ESG Overview
Slide 19: ESG Targets and Commitments
ESG TARGETS AND COMMITMENTS 40% reduction Member of: (Environmental) 10% plastic reduction of our fleet’s carbon intensity by 2028 onboard over the next five years (compared to 2008 levels) E Net zero emissions For our Scope 1, Scope 2 and Zero breaches of any environmental legislation Scope 3 emiss
Slide 20: ESG Project Highlights
ESG PROJECT HIGHLIGHTS Complexio • Co-founder of Complexio, a foundational AI trained on whole company data for task automation and value extraction Dual Fuel Vessels Synthetic Hydrocarbon Fuels • Invested in several dual-fuel Newbuilds • Joint venture with Big Hill on the development of a sustainab
Slide 21: 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 22: Thank you
Thank you www.hafniabw.com