Hafnia Limited · OSL:HAFNI
Hafnia — Q4 2022 Earnings Presentation
25 slides from Hafnia's earnings presentation, Feb 28, 2023
Slide 1: Hafnia Limited Investor Presentation Q4 & Financial Year 2022
HAFNIA LIMITED I N V E S TO R P R E S E N TAT I O N Q4 & FINANCIAL YEAR 2022 28 February 2023
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 2022 Overview Financial Summary Industry Review & Outlook Key Updates 3
Slide 4: Introduction to Hafnia
INTRODUCTION TO HAFNIA Fully integrated shipping platform with 100% alignment of interests and no fee leakage Investment Summary 115x/13x # Vessels LR2: 6x Owned1/Chartered-in LR1: 36x/4x Handy: 6x ACTIVE MANAGEMENT 1 CC-MR : 6x Proactively reviewing market for opportunities that MR: 43x/9x CC-Handy
Slide 5: Strong Shareholder Return Through Active Management
STRONG SHAREHOLDER RETURN THROUGH ACTIVE MANAGEMENT Increasing Shareholder Returns Strategic Acquisitions in 2022 USDm USDm 500 70% 1,800 60% ~1,577 60% 1,500 400 49% 50% 50% 50% ~1,065 1,200 300 280.3 263.8 40% 900 186.2 30% 200 158.3 140.1 600 93.1 20% 100 300 21.3 10.5 10% 0 0% 0 Q1 2022 Q2 2022
Slide 6: Hafnia's ESG Strategy
HAFNIA’S ESG STRATEGY Dual-Fuel LNG LR2 Tankers Hafnia Transition Plan • As part of our joint venture with CSSC Shipping, we will soon welcome • Hafnia is committed to IMO’s Carbon Intensity Targets, including its 2 of the 4 newbuilds to our fleet. regulations on sulphur emissions and 2030 goals. •
Slide 7: Agenda
AGENDA Q4 2022 Overview Financial Summary Industry Review & Outlook Key Updates 7
Slide 8: Q4 & Full Year 2022 Financial Highlights
Q4 & FULL YEAR 2022 FINANCIAL HIGHLIGHTS TCE Income EBITDA Pool and Bunker Income Full Year 2022 Full Year 2022 Full Year 2022 USD 1,346.7M USD 1,006.9M USD 40.5M Q4 2022 Q4 2022 Q4 2022 USD 427.4M USD 335.9M USD 13.9M Net Income Dividends Return on Equity Full Year 2022 Full Year 2022 Full Year 202
Slide 9: Q4 & Full Year 2022 Financial Summary
Q4 & FULL YEAR 2022 FINANCIAL SUMMARY Income Statement Q4 2021 FY 2021 Q4 2022 FY 2022 Total Liquidity & Hedge Ratio USDm USDm TCE income 112.6 402.9 427.4 1,346.7 500 ~460 Weighted average 100% hedged rate of 1.69% Other operating income 6.2 23.2 13.9 40.5 400 80% 67.0% Vessel operating & technical
Slide 10: Q4 & Full Year 2022 Financial Summary
Q4 & FULL YEAR 2022 FINANCIAL SUMMARY Q4 2022 saw an average TCE of USD 39,323 per day TCE Segment Breakdown OPEX Segment Breakdown Q4 2022 FY 2022 Q4 2022 FY 2022 2 Operating TCE Operating TCE OPEX OPEX2 Calendar days Calendar days days1 (USD/day) days1 (USD/day) (USD/day) (USD/day) LR2 552 41,402
Slide 11: Fleet Coverage
FLEET COVERAGE 71% of fleet is covered for Q1 2023 at USD 36,385 per day Steady Improvement in Rates Coverage as of 20 February 2022 USD/day Q1 2023 2023 60,000 Covered Covered rates Covered Covered rates (%) (USD/day) (%) (USD/day) LR2 88% 36,387 62% 28,476 50,000 LR1 65% 44,624 19% 42,254 MR 72% 3
Slide 12: Earnings Guidance for 2023
EARNINGS GUIDANCE FOR 2023 Strong fundamentals and positive outlook for product tanker market in 2023 Analysts’ Consensus1 Q1 2023 Covered Rates2 Week Beginning 20 February Covered Rates 3 USDm USDm USDm 2,000 2,000 2,000 ~1,660 1,500 1,500 1,500 ~1,400 ~1,210 1,000 ~970 1,000 ~960 1,000 ~690 500 50
Slide 13: Agenda
AGENDA Q4 2022 Overview Financial Summary Industry Review & Outlook Key Updates 13
Slide 14: Higher Cargo Volumes and Ton-Miles for CPP
HIGHER CARGO VOLUMES AND TON-MILES FOR CPP CPPs and Chemicals Dirty Petroleum Products m barrels / day b ton-mile/day m barrels / day b ton-mile/day 20 11 55 35 10.20 32.92 32.60 32.35 10 50 30.94 9.21 9.19 30.59 8.78 18.26 8.70 9 30 44.64 44.30 17.74 45 43.85 8 41.79 40.67 16.87 40 16.67 16.56 7 25
Slide 15: Growth in Ton-Mile on the Horizon
GROWTH IN TON-MILE ON THE HORIZON Russian CPP Exports to EU incl UK EU Imports from Russia vs Rest of World m barrels / day m barrels / day 1.2 1.1 1.1 2.0 1.8 1.0 0.9 0.9 1.5 1.5 0.7 1.1 1.2 1.1 1.0 0.6 1.0 1.1 1.1 1.0 0.7 0.3 0.5 Jan Jan Sep Jan Sep Sep Jan Sep Jan Jul Jul Jul Jul Nov Nov Nov Nov
Slide 16: Shadow Fleet on the Rise
SHADOW FLEET ON THE RISE Unique IMO Numbers Loaded on Russia # of vessels 350 • Unique vessels / IMO numbers completing loading or discharging in 300 286 Russia territory after: ➢ 5 December 2022 for Dirty Petroleum Products 250 ➢ 5 February 2023 for Clean Petroleum Products • This represents an inc
Slide 17: Dislocation of CPP Inventory Level
DISLOCATION OF CPP INVENTORY LEVEL West (Jet, Diesel, Gasoil, Naphtha & Other Products) East (Jet, Diesel, Gasoil, Naphtha & Other Products) # Mio Barrels # Mio Barrels 1,700 1,050 1,650 1,000 1,600 950 1,550 1,500 900 1,450 850 1,400 1,350 800 Jan Jan Sep Jan Sep Jan Sep Sep Jan Jul Jul Jul Jul Mar
Slide 18: Growth in Middle East Refinery Output
GROWTH IN MIDDLE EAST REFINERY OUTPUT Saudi Aramco Jizan CPP Refinery Output KPC Al-Zhour CPP Refinery Output Barrels / day Barrels / day 200,000 195,981 140,000 181,875 120,000 180,000 100,000 160,000 80,000 60,000 140,000 40,000 20,000 120,000 0 Nov Dec Jan 100,000 2022 2023 80,000 • Saudi Aramco’
Slide 19: Higher Laden Utilization and Ton-Mile
HIGHER LADEN UTILIZATION AND TON-MILE CPP (Handy, MR, LR1 & LR2) Utilization & Ton-Mile DPP (Panamax, Aframax, Suezmax, VLCC) Utilization & Ton-Mile # of vessels b ton-miles # of vessels b ton-miles 2,000 12 1,600 40 1,750 1,800 1,682 1,500 1,600 1,385 11 1,400 1,352 1,400 35 1,123 1,300 1,257 1,200
Slide 20: Supply Outlook Remains Limited
SUPPLY OUTLOOK REMAINS LIMITED Increasing Newbuild Prices Expected Scrapping & Net Additions USDm # of vessels 93 70 100 50 35 60 0 -11 -14 50 -50 -32 -100 40 -150 30 -200 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Handy MR LR1 LR2 Total LR2 LR1 MR Handy Future Scrapping 2022 Oct+ Future Scrap
Slide 21: CPP Outlook Remains Positive
CPP OUTLOOK REMAINS POSITIVE World Oil Demand and Supply Strong Earnings and High Volatility m barrels/d USD/day 105 120,000 Weighted average clean product tankers LR1 ECO (Middle East - Japan) MR ECO 100,000 HANDY ECO 100 80,000 95 60,000 90 40,000 85 20,000 80 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
Slide 22: Agenda
AGENDA Q4 2022 Overview Financial Summary Industry Review & Outlook Key Updates 22
Slide 23: Improving Investor Outreach
IMPROVING INVESTOR OUTREACH Hafnia New Website OTCQX Market • Hafnia embraces technological advancement to provide effective and • We are proud to announce that Hafnia has qualified to trade its shares on transparent communication standards for the stakeholder community. the OTCQX Market. • We have
Slide 24: 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] 24
Slide 25: Thank You
THANK YOU www.hafniabw.com