Hafnia Limited · OSL:HAFNI
Hafnia — Investor Presentation (October 2024)
23 slides from Hafnia's investor presentation, October 2024
Slide 1: Hafnia Limited
Hafnia Limited October 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 Introduction & Overview Industry Review & Outlook Q2 2024 Financial Summary ESG Overview 3
Slide 4: Unparalleled Investment Opportunity
UNPARALLELED INVESTMENT OPPORTUNITY Fully integrated shipping platform with 100% alignment of interests and no fee leakage Investment Highlights ACTIVE MANAGEMENT UNPARALLELED SCALE SHAREHOLDER VALUE EARNINGS PATHWAY FOCUS ON ESG Proactively reviewing market Commercially managing a Consistent divide
Slide 5: Q2 Key Highlights
Q2 KEY HIGHLIGHTS TCE Income1 Adjusted EBITDA1 USD 417.4M USD 317.1M YTD 1H 2024 of USD 796.2M YTD 1H 2024 of USD 604.1M Net Profit Dividend USD 259.2M USD 207.4M YTD 1H 2024 of USD 478.8M USD 0.4049 per share • The commercially managed pool and bunker procurement business generated an income of USD
Slide 6: Active Management with Strong Shareholder Focus
ACTIVE MANAGEMENT WITH STRONG SHAREHOLDER FOCUS Strong Shareholder Returns Hafnia Strategic Acquisitions and Joint Ventures USDm 80% 80% 600 70% 70% 2018 Vista Shipping Joint Venture 70% 500 Joint venture with CSSC (Hong Kong) Shipping Company Limited with joint control of 50% ownership interest eac
Slide 7: Agenda
AGENDA Introduction & Overview Industry Review & Outlook Q2 2024 Financial Summary ESG Overview 7
Slide 8: Strong Market Fundamentals for Product Trade
STRONG MARKET FUNDAMENTALS FOR PRODUCT TRADE Clean Petroleum Products On Water & Daily Departures CPP on Water m barrels m barrels/day barrels/day 500 26 600 580 25 450 560 24 400 540 23 520 350 22 500 300 480 21 460 04-Aug 12-Aug 20-Aug 28-Aug 01-Jan 09-Jan 17-Jan 25-Jan 02-Feb 10-Feb 18-Feb 26-Feb
Slide 9: Higher Ton-Miles and Stronger Earnings
HIGHER TON-MILES AND STRONGER EARNINGS CPP Suez Transit CPP Ton-Days versus MR and LR1 Earnings m barrels # m ton-days USD/Day 120 70 Red Sea Houthi 50,000 Conflict Russian Sanctions 40,000 90 65 Russia / Ukraine Conflict 73 30,000 60 60 20,000 30 20 55 10,000 0 50 0 Jan Jan Jan Jan Jan Jan Jan Apr
Slide 10: Higher Cargo Volumes and Ton-Miles
HIGHER CARGO VOLUMES AND TON-MILES CPPs and Chemicals Daily Loadings Dirty Petroleum Products Daily Loadings m barrels/day b ton-miles/day m barrels/day b ton-miles/day 22 11 50 35 32.2 10.3 31.8 33 21 31.6 31.0 10.1 30.5 31 10 46.9 20 9.6 28.5 28.6 29 45 9.4 Suezmax & VLCC 45.0 44.8 44.6 44.3 27 19
Slide 11: 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 1,900,000 Barrels 1,800,000 2,300 102.9 1,600,000 100 2,200 1,
Slide 12: Crude Tankers Cannibalization
CRUDE TANKERS CANNIBALIZATION Crude Tankers Cannibalization of Clean Cargo CPP On Water VLCC & Suezmax Cannibalization # Aframax Equivalents USD/day m barrels m barrels 20 40,000 500 25 18 30,000 30m 480 barrels 16 20 20,000 14 460 10,000 12 15 10 0 440 8 10 -10,000 420 6 -20,000 4 5 400 -30,000 2 0
Slide 13: Crude Tankers Cannibalization
CRUDE TANKERS CANNIBALIZATION Daily Loadings m barrels/bay m barrels/day 20 0.6 0.5 19 0.4 18 0.3 17 0.2 16 0.1 15 0 Jan Feb Mar Apr May Sep Jan Feb Sep Jan Feb Jan Feb Sep Jan Feb Apr Jan Aug Nov Mar Apr May Aug Nov Mar Apr May Sep Aug Nov Mar Apr May Aug Nov Mar May Sep Feb Sep Aug Nov Mar Apr May
Slide 14: 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 % / Days # MR Equivalents 5,600 100% 6% 6% 7% 7% 7% 100% 250 11% 5,572 15% 90% 14% 16% 5,514 5,500 20% 83% 23% 81% 80% 200 25% 80% 80%
Slide 15: 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% Orderbook 250 ~ 460 vessels 100% 200 20+ Years 200 ~510 Vessels 169 90% 151 150 80% 150 70% 100 60% 50 100 25+ Years by 2027 50% ~238 Ves
Slide 16: Agenda
AGENDA Introduction & Overview Industry Review & Outlook Q2 2024 Financial Summary ESG Overview 16
Slide 17: 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 TCE income1 349.3 726.5 417.4 796.2 USDm 424 ~591 hedged rate of 1.77% 600 100% Other operating income 10.1 21.2 10.7 20.5 88.6% 500 80% Vessel operating & technical ma
Slide 18: 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 Spot TCE3 TCE3 Covered Covered rates Covered Covered rates Operating days2 (US
Slide 19: 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 ~1,130 ~1,150 1,000 1,000 1,000 ~910 ~890 ~870 500 500 500 0
Slide 20: Agenda
AGENDA Introduction & Overview Industry Review & Outlook Q2 2024 Financial Summary ESG Overview 20
Slide 21: ESG Commitments and Targets
ESG COMMITMENTS AND TARGETS Environment Social Governance 40% reduction Zero harm across our operations of our fleet’s carbon intensity by 2028 ✓ Lost Time Incident Frequency < 0.4 observation Zero compliance ✓ Total Recordable Case Frequency < 1.0 observation (compared to 2008 levels) ✓ Port State
Slide 22: Hafnia Renewable Project Highlights
HAFNIA RENEWABLE PROJECT HIGHLIGHTS Dual Fuel Vessels Studio 30/50 Complexio ▪ Invested in several dual-fuel Newbuilds ▪ Jointly with Microsoft, Wilhelmsen, IMC Venture ▪ Co-founder of Complexio, a foundational AI ▪ As part of Vista joint venture, invested in four and DNV, announced digital venture
Slide 23: Thank you
Thank you www.hafniabw.com 23