Stainless Tankers ASA

Investor Presentation • Nov 6, 2024

3Q24 Results Presentation

06 November 2024

DISCLAIMER AND FORWARD-LOOKING STATEMENTS

The preparation of interim financial statements requires Stainless Tankers ASA's (the "Company", "we" or "our") management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

This presentation includes forward-looking statements which are based on management's current expectations and projections about future events. All statements other than statements of historical facts included herein, including statements regarding our future financial position, market outlook and future economic projections and assumptions and risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, may be deemed to be forward-looking statements. Words such as "believe", "expect", "anticipate", "may", "assume", "plan", "intend", "will", "should","estimate", "risk" and similar expressions or the negatives of these expressions are intended to identify forward-looking statements.

By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forwardlooking statements are not guarantees of future performance. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements and readers of this presentation should not place undue reliance on these forward-looking statements. For additional information on risk factors related to the Company and its business, reference is made to our information document dated 27 April 2023.

Although management believes that the expectations reflected in the forward-looking statements are reasonable, we cannot assure that our future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other persons assume responsibility for the accuracy and completeness of the forward-looking statements. Any forward-looking statement speaks only as of the date which such statement is made, and we undertake no obligation to update any of these statements after the date of this presentation.

Highlights

Chemical Tanker Rates & Outlook

Financial Review

Q&A

Appendix - 3Q 2024 Financial Statements

Highlights

NAV performance since inception

• Since inception, market NAV/share increased to \$7.53 after cumulative dividend paid of \$1.035/ share or \$13.97m
• NAV Total Return* of c.76% since inception and 2.9% in 3Q24

* NAV Total Return calculated on a per share basis since IPO assuming dividends reinvested

Rate recovery expected in the short term

Womar net pool earnings and market time charter rates Highlights 8,000 12,000 16,000 20,000 24,000 2021 2022 2023 2024 2025 Earnings in \$/day 1 yr TC Rate Womar J19 Pool Actual Pool Forecast

• 3Q24 net pool TCE of \$21.4k/day, was in line with budget (\$21k/day). 1-yr market time charter rates fell to \$21k/day in August and remained flat in September
• The market weakened, partly in sympathy with the tanker market, due to the negative impact of OPEC product cuts and Libyan outages with several crude tankers switching to product service
• The reversal of the OPEC cuts from November and seasonal demand strength should contribute to higher rates over the winter. Further, the pool has repositioned vessels to increase exposure to the stronger markets East of Suez.
• We and Womar expect rates to recover to c.\$21k/day in December and the Womar pool forecast for 2025 is \$22k- \$24k/day

Suez Canal disruption likely to persist

Source: Tufton TRACS data, Clarksons SIN

Limited fleet growth supports positive outlook

• The orderbook rose to 10.6% of global fleet with 20 newbuild stainless steel tanker orders YTD for delivery in 2025/26 and 13 in 2027
• 12 vessels were delivered YTD 2024 (vs. 10 last quarter). 5 vessels are expected to be delivered by end of 2024 (vs. 7 last quarter)
• Scheduled deliveries for the 10-25k DWT segment during 2025- 26E period rose to 48 (vs. 43 last quarter) with another 13 expected in 2027 (vs. 2 last quarter)
• We have decreased our assumed projected removals based on the expectation of continued market strength. Only one vessel was removed in 2024 YTD vs. 4 previously forecast. 2025/26 removals forecast has been revised to 10 vessels (19 previously)
• Annual fleet growth of approximately ~2.5% to 2027 compared to projected demand growth ~3%

	Select Financials	3Q24	2Q24	Comments and notes
	Calendar days Available ship days Vessel days under ownership % Revenue ship days Utilization % Net pool TCE (\$/day) Net time charter (\$/day)	828 828 100.0% 821 99.2% 21,387 -	819 819 100.0% 748 91.3% 23,831 15,250	market weakened
0) 0 0 n \$' (i nt e m e at st	(+) Net revenue (-) Opex (-) SG&A (=) EBITDA (-) Depreciation (+/-) Financial income/(expense) (+/-) Other income/(expense) Net Income	17,199 (6,372) (654) 10,173 (3,433) (2,066) (7) 4,666	17,061 (6,239) (1,304) 9,519 (2,877) (2,090) (12) 4,540	steel prices) 82.5/share)
0) 0 0 n \$' (i	Cash and cash equivalents (1) Fleet book value (2) Fleet market value (3) Net outstanding loan balance (4) Net loan outstanding to book value % (5)	3,803 135,501 168,970 76,669 45.4%	2,334 138,835 174,040 79,129 45.5%

• Q3 revenue at \$17.2m, impacted by the lower pool earnings as the market weakened
• Utilization at 99%, up 8% from Q2, due to lower off-hire days; off-hire days in Q2 attributed to the drydocks of Orchid Madeira and Orchid Sylt
• During the quarter, all vessels were trading in the Womar pool
• Depreciation increased to \$3.4m due to lower scrap value (declining steel prices)
• Net income of \$4.7m, up 3% from \$4.5m in Q2
• Fleet market value was \$168.9m; NAV at \$101.7m or \$7.53/share (c. NOK 82.5/share)
• LTV based on fleet market value remained stable to 45.4% in Q3

• Dividend of \$3.71m, or \$0.275/share (c. NOK 3/share), to be paid on or about November 15th

• 1) Excluding all restricted cash balances

Fleet stats

Condensed income

Select balance

sheet items

• 1. 2) Net book fleet value based on fleet value at purchase net of accumulated depreciation
• 1. 3) Based on the valuations obtained by VesselsValue as at 30th September
• 1. 4) Net outstanding loan balance comprise of loan balance outstanding not including capitalised costs LESS minimum liquidity requirement
• 1. 5) LTV % is based on net outstanding loan balance LESS restricted cash per vessel DIVIDED by fleet market value, as per the facility agreement

Consolidated statement of income statement and other comprehensive income (unaudited)

Notes	Q3 2024 (unaudited)	Q3 2023 (unaudited)	YTD 2024 (unaudited)	YTD 2023 (unaudited)
6	18,188,639	11,691,880	52,187,903	18,711,035
7				(853,245)
8		(4,950,705)	(19,052,712)	(7,605,283)
9				(1,263,327)
	66,277	-	66,681	10,098
	10,174,933	5,727,452	27,811,648	8,999,278
11				(3,511,070)
	6,741,457	3,454,798	18,480,634	5,488,208
10	47,914	33,193	157,809	167,862
10				(2,681,664)
	4,674,342	1,901,001	12,228,531	2,974,406
			(25,603)	(18,822)
Profit and other comprehensive income for the period	4,665,808	1,894,727	12,202,928	2,955,584
	4,665,808	1,894,727	12,202,928	2,955,584
	-	-	-	-
	4,665,808	1,894,727	12,202,928	2,955,584
			(989,867) (6,371,580) (718,536) (3,433,475) (2,115,030) (8,534)	(437,549) (2,636,807) (576,175) (2,753,418) (2,272,653) (9,331,014) (1,586,990) (6,409,913) (6,274)

Consolidated statement of financial position (unaudited)

In USD	30 Sep 2024 (unaudited)	31 Dec 2023 (audited)
ASSETS
Non-current assets
Vessels and drydocking costs	135,501,033	142,079,020
Total non-current assets	135,501,033	142,079,020
Current assets
Trade and other receivables	9,477,366	9,248,236
Cash and cash equivalent	3,802,560	2,345,378
Total current assets	13,279,926	11,593,614
Total assets	148,780,959	153,672,634
EQUITY AND LIABILITIES
Equity
Share capital	13,072,672	13,072,672
Share premium	36,776,047	46,901,047
Retained earnings	18,353,993	6,151,065
Total equity	68,202,711	66,124,784
Non-current liabilities
Interest-bearing debt - non-current	67,528,766	74,913,770
Total non-current liabilities	67,528,766	74,913,770
Current liabilities
Interest-bearing debt - current	9,726,247	9,736,506
Trade and other payables	3,263,495	2,381,465
Accrued taxation	59,740	34,137
Deferred income	-	481,973
Total current liabilities	13,049,482	12,634,081
Total equity and liabilities	148,780,959	153,672,634

Consolidated statement of cash flows (unaudited)

	Q3 2024	Q3 2023	YTD 2024	YTD 2023
In USD	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Profit and other comprehensive income for the
period	9,223,260		1,901,001 12,228,531	2,974,406
Adjustments for:
Financial income	(101,795)	-	(157,809)	-
Financial expenses	4,249,870	1,553,797	6,409,913	2,401,501
Depreciation and amortisation	6,310,735	2,272,653	9,331,014	3,511,070
Cash flow from operating activities before changes
in working capital	19,682,070		5,727,452 27,811,648	8,886,978
Changes in working capital
Increase in trade and other receivables	690,808			(1,264,267) (229,130) (5,935,927)
Increase in trade and other payables	(59,147)	(805,564)	882,030	1,101,495
Accrued/(Deferred) income	(8,857)		(269,461) (481,973)	1,380
Cash flow from operating activities	20,304,874		3,388,160 27,982,575	4,053,924
Acquisition of vessels	-	-	(12,233)	(121,200,883)
Drydocking costs	(2,740,794)	-	(2,740,794)	-
Interest received	101,795	33,193	157,809	167,862
Cash flow from investing activities	(2,638,999)		33,193 (2,595,218)	(121,033,020)
Proceeds from issue of shares	-	-	-	67,103,002
Transaction related costs	-	-	-	(3,281,783)
Dividends paid	(7,087,500) (1,687,500)			(10,125,000) (1,687,500)
Proceeds from issue of debt	-	-	-	67,500,000
Borrowing costs	-	(49,180)		(56,096) (1,115,619)
Repayment of debt		(5,025,000) (3,004,375) (7,590,000) (5,486,875)
Interest paid on interest-bearing debt		(4,087,550) (1,529,347) (6,159,080) (2,470,036)
Cash flow from financing activities	(16,200,050) (6,270,402)			(23,930,176) 120,561,188
Net change in cash and cash equivalents	1,465,826		(2,849,050) 1,457,182	3,582,092
Cash and cash equivalents at beginning of period	2,336,734	6,431,142	2,345,378	-
Cash and cash equivalents at end of period	3,802,560	3,582,092	3,802,560	3,582,092