Hunter Group ASA

Investor Presentation • Feb 6, 2025

Hunter Group ASA

Investor Presentation

6 February 2025

Disclaimer

CERTAIN STATEMENTS INCLUDED IN THIS DOCUMENT CONTAIN FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING PLANS, OBJECTIVES, GOALS, STRATEGIES, FUTURE EVENTS OR PERFORMANCE, AND UNDERLYING ASSUMPTIONS AND OTHER STATEMENTS, WHICH ARE OTHER THAN STATEMENTS OF HISTORICAL FACTS. THE WORDS "BELIEVE," "ANTICIPATE," "INTENDS," "ESTIMATE," "FORECAST," "PROJECT," "PLAN," "POTENTIAL," "MAY," "SHOULD," "EXPECT" "PENDING" AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING STATEMENTS. THE FORWARD-LOOKING STATEMENTS IN THIS DOCUMENT ARE BASED UPON VARIOUS ASSUMPTIONS, MANY OF WHICH ARE BASED, IN TURN, UPON FURTHER ASSUMPTIONS, INCLUDING WITHOUT LIMITATION, MANAGEMENT'S EXAMINATION OF HISTORICAL OPERATING TRENDS, DATA CONTAINED IN HUNTER GROUP'S RECORDS AND OTHER DATA AVAILABLE FROM THIRD PARTIES. ALTHOUGH HUNTER GROUP BELIEVES THAT THESE ASSUMPTIONS WERE REASONABLE WHEN MADE, BECAUSE THESE ASSUMPTIONS ARE INHERENTLY SUBJECT TO SIGNIFICANT UNCERTAINTIES AND CONTINGENCIES WHICH ARE DIFFICULT OR IMPOSSIBLE TO PREDICT AND ARE BEYOND HUNTER GROUP'S CONTROL, YOU CANNOT BE ASSURED THAT HUNTER GROUP WILL ACHIEVE OR ACCOMPLISH THESE EXPECTATIONS, BELIEFS OR PROJECTIONS. THE INFORMATION SET FORTH HEREIN SPEAKS ONLY AS OF THE DATES SPECIFIED AND HUNTER GROUP UNDERTAKES NO DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENT TO CONFORM THE STATEMENT TO ACTUAL RESULTS OR CHANGES IN EXPECTATIONS OR CIRCUMSTANCES. IMPORTANT FACTORS THAT, IN HUNTER GROUP'S VIEW, COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DISCUSSED IN THE FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION: THE STRENGTH OF WORLD ECONOMIES AND CURRENCIES, GENERAL MARKET CONDITIONS, INCLUDING FLUCTUATIONS IN CHARTERHIRE RATES AND VESSEL VALUES, CHANGES IN DEMAND IN THE TANKER MARKET, INCLUDING BUT NOT LIMITED TO CHANGES IN OPEC'S PETROLEUM PRODUCTION LEVELS AND WORLD WIDE OIL CONSUMPTION AND STORAGE, CHANGES IN HUNTER GROUP'S OPERATING EXPENSES, INCLUDING BUNKER PRICES, DRYDOCKING AND INSURANCE COSTS, THE MARKET FOR HUNTER GROUP'S VESSELS, AVAILABILITY OF FINANCING AND REFINANCING, ABILITY TO COMPLY WITH COVENANTS IN SUCH FINANCING ARRANGEMENTS, FAILURE OF COUNTERPARTIES TO FULLY PERFORM THEIR CONTRACTS WITH US, CHANGES IN GOVERNMENTAL RULES AND REGULATIONS OR ACTIONS TAKEN BY REGULATORY AUTHORITIES, POTENTIAL LIABILITY FROM PENDING OR FUTURE LITIGATION, GENERAL DOMESTIC AND INTERNATIONAL POLITICAL CONDITIONS, POTENTIAL DISRUPTION OF SHIPPING ROUTES DUE TO ACCIDENTS OR POLITICAL EVENTS, VESSEL BREAKDOWNS, INSTANCES OF OFF-HIRE AND OTHER IMPORTANT FACTORS.

THIS PRESENTATION IS NOT AN OFFER TO PURCHASE OR SELL, OR A SOLICITATION OF AN OFFER TO PURCHASE OR SELL, ANY SECURITIES OR A SOLICITATION OF ANY VOTE OR APPROVAL.

Strong oil market fundamentals

Effective sanctions

Disruption to oil flows

"Zero" fleet growth before scrapping

Ton-mile intensive export growth

Supply and demand of oil by location 2025-26 60x VLCCs could be needed¹

Country	Supply growth (mbd)	Demand growth (mbd)	Surplus (Mbd)	VLCC equivalents needed
	0.82	0.22	0.60	35x
	0.31	0.07	0.24	10x
	0.30	0.01	0.29	15x
Sum	1.43	0.29	1.14	60x

• The US, Brazil and Guyana are expected to produce 1.14mbd more than they consume in 2025-26
• If this oil surplus is exported to the Far East, as much as 60 additional VLCCs could be needed

Source: EIA, Company 1) Assuming exported to Far East

Compliance key for effectiveness of sanctions

• 10% of the global tanker fleet is now on the US' OFAC sanctions list, which is widely considered the harshest

  • The OFAC sanctioned tanker fleet carried 3.3mbd of crude oil in 2024, i.e. 4.8% of total seaborne volumes
  • 80% of this went to Shandong (China) and India

• Following a grace period, OFAC sanctioned vessels to be prohibited from discharging at Shandong and Indian ports

  • A replacement of Shandong's ~1.5mb crude oil imports with compliant MEG barrels could boost VLCC demand by up to 45 vessels

10%+ of tanker the fleet is now OFAC sanctioned

Vessel type	Fleet size	OFAC sanctioned vessels	% of fleet on OFAC	Addtl. vessels on UANI
VLCC	906	91	10%	57
Suez/LR3	669	66	10%	16
Afra/LR2	1.163	145	12%	48

80% of OFAC tankers went to Shandong (China) and India

Rates negatively impacted by shadow fleet in 2024

Achieved VLCC rates

Chinese oil imports

• Total Chinese crude oil imports declined by approx. 250kbd in 2024 vs. 2023, while the share sourced from shadow markets increased by approx. 750kbpd
• Consequently, imports from compliant markets dropped by approx. 1.0mbd, or ~11%
• A complete replacement of sanctioned/shadow imports would mean a 45% increase in compliant imports

Maximum Pressure

• Iranian oil exports peaked in 2017 at an average of ~2.1mbd
• Sanctions and pressure during Trump's previous term reduced Iranian oil exports to only 0.4mbd on average
• A weaker stance against Iran during Biden, enabled exports to climb back to ~1.7mbd during 2024

Iranian crude oil exports Large number of VLCCs needed to replace Iranian exports

• Trump's "Maximum Pressure" campaign against Iran aims at reducing Iranian oil exports to zero
• If this goal is achieved, and 1.7mbd of Iranian exports are replaced by compliant MEG barrels, as much as 51 additional VLCCs could be needed

Tariffs

Massive scrapping overhang – few deliveries

VLCCs turning 20 years or more

• A record number of 156 VLCCs, or 17% of the fleet, are currently 20 years or older, i.e. the historical average scrapping age
• A large portion of these vessels are either sanctioned or involved in shadow trades
• Recent data suggests increased willingness from owners of "shadow" tonnage to accept steep discounts to market scrap prices

• There are very few VLCCs up for delivery in the next two years, i.e. remaining duration of our TCs
• Only 4 are scheduled for delivery this year, while 24 are in the books for 2026
• During both the last 10 years and 20 years, an average of approx. 38 VLCCs have been delivered per year

Massive positive trigger potential ahead

Potential VLCC demand vs. supply growth 2025-26

• The VLCC market balance is looking increasingly tight
• There is tangible potential for near term demand growth of more than 150 VLCC equivalents
• Only 28 VLCCs are scheduled for delivery the next two years
• More than 200 VLCCs will be more than 20 years old in 2026

Hunter Group ASA Org. nr. 985 955 107

Dronningen 1 0287 Oslo, Norway +47 975 31 227 Info (a) huntergroup.no