Hafnia Limited · OSL:HAFNI
Hafnia — FY2020 Earnings Presentation
22 slides from Hafnia's earnings presentation, Mar 8, 2021
Slide 1: Hafnia Limited Investor Presentation Q4 & Financial Year 2020
HAFNIA LIMITED I N V E S TO R P R E S E N TAT I O N Q4 & FINANCIAL YEAR 2020 8 March 2021
Slide 2: Disclaimer – Safe Harbor Message
DISCLAIMER – Safe Harbor 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 T
Slide 3: Agenda
AGENDA Q4 & Full Year 2020 Highlights/Overview Industry Review ESG Overview 3
Slide 4: Introduction to Hafnia
INTRODUCTION TO HAFNIA Fully integrated shipping platform with 100% alignment of interests and no fee leakage Operational overview Geographical presence • Attractive and high-quality fleet, active across all segments to meet client’s needs Monaco Shipowner • Portfolio management approach to fleet co
Slide 5: FY2020 Highlights - Snapshot
FY2020 HIGHLIGHTS - SNAPSHOT Earnings Net Income Basic Earnings per Share Return on Equity FY 2020 FY 2020 FY 2020 USD 148.8M USD 0.41 13.1% ↑ 107% from USD 71.7M (FY 2019) ↑ 93% from USD 0.21 (FY 2019) ↑ 93% from 6.8% (FY 2019) Q4 2020 Q4 2020 Q4 2020 -USD 26.4M -USD 0.08 -9.3% ↓ 162% from USD 42.4
Slide 6: Financial Summary
FINANCIAL SUMMARY Full year 2020 saw an annualized return on invested capital of 8.9% and return on equity of 13.1% Income Statement Balance Sheet Items FY2019 FY2020 Q4 2020 Q4 2020 USDm USDm Revenue 827.9 874.1 171.3 Total assets 2,544 Voyage expenses (313.4) (250.9) (66.9) Cash and cash equivalen
Slide 7: FY2020 Financial Summary
FY2020 FINANCIAL SUMMARY Full year 2020 saw revenue growth of 6% to $874.1M, driven largely by the MR segment TCE segment breakdown Q4 2020 FY 2020 Operating TCE TCE Operating TCE TCE Handy LR2 days (USD/day) (USD m) days (USD/day) (USD m) (12%) (9%) LR2 552 27,108 15.0 2,195 26,514 58.2 LR2 LR1 LR1
Slide 8: Pool Economics
POOL ECONOMICS Global commercial platform with chartering teams at strategic locations Fixed: ▪ USD 250 per day per vessel Commission: Pool ▪ 2.25% of net TCE Commission Structure Earnings contribution from commercial management • Earnings from the pools and other fee generating streams generated US
Slide 9: Investment Highlights Summary
INVESTMENT HIGHLIGHTS SUMMARY Key value proposition OPEX and SG&A1) USD/day 10,000 8,000 1 Best commercial performance 6,000 4,000 2,000 - 2 Lowest operating cost Hafnia Peers Hafnia opex Hafnia SG&A Peers low (opex + SG&A) Peers high (opex + SG&A) Funding Cost2) bps 3 Lowest cost of funding 600 500
Slide 10: Agenda
AGENDA Q4 & Full Year 2020 Highlights/Overview Industry Review & Outlook ESG Overview 10
Slide 11: 2021 Demand Rise Expected to Exceed Supply
2021 DEMAND RISE EXPECTED TO EXCEED SUPPLY Supply and demand for global oil 2020 cargo split Orderbook m barrels/d % of fleet 105.0 9% 70% 100.0 15% 32% 60% 50% 95.0 40% 90.0 30% 19% 85.0 Global Oil Supply 20% Global Oil Demand 25% 80.0 10% Gas Oil Motor Gasoline 0% 75.0 2000 2005 2010 2015 2020 Feb
Slide 12: Regional OECD Industry Stocks Returning to Normal
REGIONAL OECD INDUSTRY STOCKS RETURNING TO NORMAL OECD end-of-month industry stocks in days of forward demand and millions barrels of total oil Americas Europe Asia Oceania OECD Total Oil Days of forward demand are based on average OECD demand over the next three months 12 Source: IEA
Slide 13: Market Outlook & Risks
MARKET OUTLOOK & RISKS Floating storage – as of 23 February Global Oil Demand 2019-21 # % m barrels per day % 70 9 105 20 8 15 60 100 7 10 50 95 6 5 40 5 90 0 30 4 85 -5 3 20 80 -10 2 10 75 -15 1 0 0 70 -20 VLCC+ Suezmax Aframax LR2 LR2 LR1 LR1 Panamax MR Handy Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun
Slide 14: Trade Routes and Refineries
TRADE ROUTES AND REFINERIES ✓ At the end of 2020, global refinery capacity totaled an estimated 102 million barrels per day. Over a third of this capacity is located in Asia, and significant capacity is also located in the US and Europe ✓ 1.2 mb/d of global refinery capacity was closed, mothballed o
Slide 15: Global Product Tanker Fleet
GLOBAL PRODUCT TANKER FLEET Crude and Product Tanker Fleet Development Average age of Fleet m DWT, end year % Product Tankers Crude Tankers 700.0 Crude Tanker Fleet 20% 18.0 CAGR (2015-2020): 4.2% 18% 600.0 Product Tanker Fleet 16.0 14.7 14.0 CAGR (2015-2020): 4.5% 16% 14.0 12.2 500.0 14% 11.2 11.3
Slide 16: Peak Rates in Q2 Dropped to Below 5-Year Average
PEAK RATES IN Q2 DROPPED TO BELOW 5-YEAR AVERAGE LR2 LR1 USD/day USDm USD/day USDm 100,000 50 70,000 35 60,000 30 80,000 40 50,000 25 60,000 30 40,000 20 30,000 15 40,000 20 20,000 10 20,000 10 10,000 5 0 0 0 0 Jan-2019 May-2019 Sep-2019 Jan-2020 May-2020 Sep-2020 Jan-2021 Jan-2019 May-2019 Sep-2019
Slide 17: Agenda
AGENDA Q4 & Full Year 2020 Highlights/Overview Industry Review ESG Overview 17
Slide 18: Hafnia's ESG Strategy
HAFNIA’S ESG STRATEGY Employee Diversity Our 5 Sustainability Pillars ✓ Despite living with confinement restrictions in 2020, our diversity efforts continued. We aspire to have least 40% employees identifying as female form in the organisation, including in key management positions, by 2024. Safety
Slide 19: Hafnia's Status with IMO's Carbon Intensity Targets
Hafnia’s Status with IMO’s Carbon Intensity Targets gms CO2 / DWT - Nm 8 7.61 ✓ We are in full compliance with the IMO 2020 regulation on sulphur emissions, and we fully 7 support and are on track to meet the IMO’s 6.20 6.04 greenhouse gas reduction goals of reducing 6 carbon intensity by 40% and to
Slide 20: Strong Focus on Corporate Governance and Aligned Incentives
STRONG FOCUS ON CORPORATE GOVERNANCE AND ALIGNED INCENTIVES REGULATORS SHAREHOLDERS BOARD OF DIRECTORS - Highly experienced and reputable board of directors - 4 board members independent of major shareholders AUTHORISATION MATRIX - Hafnia is governed by board AUDIT COMMITTEE REMUNERATION COMMITTEE N
Slide 21: Contacts
CONTACTS CEO CFO EVP EVP, IR, Research and Commercial Performance Management MIKAEL SKOV PERRY VAN ECHTELT JENS CHRISTOPHERSEN THOMAS ANDERSEN Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected] 21
Slide 22: Thank You
THANK YOU www.hafniabw.com