Hunter Group ASA

Earnings Release • Aug 27, 2020

Hunter Group ASA - Second Quarter Results 2020

Hunter Group ASA - Second Quarter Results 2020

27 August 2020

Financial highlights

Total revenues of USD 29.62m

? Spot pool revenues of USD 14.78m

? Time charter revenues of USD 14.84m

Total operating expenses of USD 6.44m

? Vessel opex incl. insurance of USD 2.46m

? Voyage exp. and commissions of USD 0.33m

? G&A expenses of 0.33m

? USD 0.19m administrative expenses

? USD 0.06m legal expenses

? USD 0.08m non-cash expenses

EBITDA of USD 26.50m

Net profit of USD 18.84m

Average daily earnings of USD 76,340

? Avg. daily spot earnings of USD 75,0001

? Avg. daily time charter earnings of USD 77,700

Opex incl. insurance of USD 6,348 per day per vessel

Run-rate fully delivered G&A of USD ~300 per day per vessel

388 earnings and operating days

? 197 pool spot days

? 191 time charter days

? Zero downtime

USD 87m of yard payments of were made during the quarter, leaving USD 106m of

remaining yard obligations as of 30 June 2020

Key events in Q2 2020

Received binding commitments from a syndicate of banks consisting of Danske

Bank, DNB, Nordea and SEB (the "Syndicate") for a USD 157.5m loan facility (the

"Facility")

Successfully took delivery of Hunter Disen on 5 June 2020, the fifth of seven

identical VLCCs from DSME. Hunter Disen commenced it's six-month time charter

("TC") immediately following delivery from the yard

The Annual General Meeting was held on 30 April 2020, and all resolutions were

passed in accordance with the previously announced proposals, including, inter

alia, authorizations to i) acquire up to 10% of the Company's own shares, and

ii) issue up to 25% new shares

Subsequent events

Successfully took delivery of Hunter Idun and Hunter Frigg on 3 July and 21

August 2020, respectively. The delivery of Hunter Frigg marks the end of the

Company's newbuilding program with all seven VLCCs having successfully been

delivered and put in operation. Both vessels commenced TCs following delivery

from the yard, with Hunter Frigg recently having been fixed at USD 40,000 per

day for 6-8 months

Exercised call options pursuant to the sale-and-leaseback agreements with SFL

and repurchased Hunter Atla and Hunter Saga for a combined amount of approx. USD

117.8m (the "Transaction"). Consequently, the two vessels are now in full

ownership of the Company. Concurrently with the Transaction, the Company has

utilized approx. USD 100.4m of the Facility

As of the date of this report, 83% of days in the third quarter have been booked

at an average est. dayrate of USD 66,240

? 55% of Q3 spot days booked at an avg. est. dayrate of USD 49,2001

? Average Q3 TC dayrates of USD 72,100

Current pro forma cash flow breakeven of approx. USD 20,500 per day, including

the planned refinancing of Hunter Laga

1) Discharge to discharge basis

Contact:

Erik A.S. Frydendal, CEO, ef@huntergroup.no, Ph.: +47 957 72 947

Lars M. Brynildsrud, CFO, lb@huntergroup.no, Ph.: +47 932 60 882