Stainless Tankers ASA

Quarterly Report • Nov 6, 2024

Interim Consolidated Financial Statements

Q3 2024

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

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

See accompanying notes that are an integral part of these Consolidated Financial Statements (unaudited).

In USD	Notes	30 Sep 2024 (unaudited)	31 Dec 2023 (audited)
ASSETS
Non-current assets
Vessels and drydocking costs	11	135,501,033	142,079,020
Total non-current assets		135,501,033	142,079,020
Current assets
Trade and other receivables	12	9,477,366	9,248,236
Cash and cash equivalent	13	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	14	13,072,672	13,072,672
Share premium	14	36,776,047	46,901,047
Retained earnings	14	18,353,993	6,151,065
Total equity		68,202,711	66,124,784
Non-current liabilities
Interest-bearing debt - non-current	15	67,528,766	74,913,770
Total non-current liabilities		67,528,766	74,913,770
Current liabilities
Interest-bearing debt - current	15	9,726,247	9,736,506
Trade and other payables	16	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 changes in equity (unaudited)

In USD	Notes	Share capital	Share premium	Retained earnings	Total
As at 01 December 2022		-	-	-	-
Capital increase - private placement (cash)	14	13,072,672	54,030,330	-	67,103,002
Transaction costs		-	(3,281,783)	-	(3,281,783)
Profit and other comprehensive income for the period		-	-	6,151,065	6,151,065
Dividends distributions during the period		-	(3,847,500)	-	(3,847,500)
As at 31 December 2023		13,072,672	46,901,047	6,151,065	66,124,784
Profit and other comprehensive income for the period		-	-	12,202,928	12,202,928
Dividends distributions during the period	14	-	(10,125,000)	-	(10,125,000)
As at 30 September 2024		13,072,672	36,776,047	18,353,993	68,202,711

See accompanying notes that are an integral part of these Consolidated Financial Statements (unaudited).

Consolidated statement of cash flows (unaudited)

In USD	Notes	Q3 2024	Q3 2023	YTD 2024	YTD 2023
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
Profit and other comprehensive		9,223,260	1,901,001	12,228,531	2,974,406
income for the period
Adjustments for:
Financial income	10	(101,795)	-	(157,809)	-
Financial expenses	10	4,249,870	1,553,797	6,409,913	2,401,501
Depreciation and amortisation	11	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	13	-	-	-	67,103,002
Transaction related costs	13	-	-	-	(3,281,783)
Dividends paid	14	(7,087,500)	(1,687,500)	(10,125,000)	(1,687,500)
Proceeds from issue of debt	15	-	-	-	67,500,000
Borrowing costs	15	-	(49,180)	(56,096)	(1,115,619)
Repayment of debt	15	(5,025,000)	(3,004,375)	(7,590,000)	(5,486,875)
Interest paid on interest-bearing debt	15	(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	13	3,802,560	3,582,092	3,802,560	3,582,092

See accompanying notes that are an integral part of these Consolidated Financial Statements (unaudited).

Notes to the interim consolidated statements

Note 1 –

Stainless Tankers ASA (the "Company" Limited ("TML"), as a limited liability company and was established for the sole purpose to operate as a statements comprise the Company and its subsidiaries (together referred to as the "Group").

The shares of the Company are listed on the Euronext Growth Oslo exchange.

Stainless Tankers ASA is a public limited liability company, incorporated and domiciled in Norway with registered address at Henrik Ibsens gate 90, 0255 Oslo, Norway.

Note 2 – Basis of

30 September 2024 are prepared in accordance and as adopted by the European Union (EU).

The interim

or

Note 3 –

and its subsidiaries as at 30 September 2024. All intra- where the Group has a controlling interest. Control is achieved when the Group is exposed, or has rights to power over the investee. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are dets under otherwise similar circumstances.

Leases and a service element which is accounted for in accordance with IFRS 15 Revenue from Contracts with Customers.

Time charter, pool revenue and other revenue contracts with customers are recognised when control of -

arrangements is pool are based on average revenues across the pool the vessels are employed in, i.e. the vessels earn the of each vessel in the pool.

is is also Revenue from bunkers and other goods and services from customers are recognised during the period the goods or services are transferred to the customer, following the "point

investment. Expenses arising from the disposal of investments are deducted from disposal proceeds.

insurance.

expense in the income statement.

ncome statement. Nonrate. Non- using the exchange rate on

Vessels and other tangible assets

all components of the vessels, are

straight-line basis. are cantly from previ

Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. This -

Vessels and other tangible assets

All other costs that do not meet this

expected from their use or disposal. Any gain or loss arising from the are included in the during the period the asset is derecognised.

Impairment of vessels and other tangible assets

Vessels and other tangible assets are assessed for impairment indicators at recoverable amount. An as and its value in use. The net realisable value is the amount obtainable from the sale of an asset i recoverable amount since the last impairment loss was recognised.

Leases

Group as lessor

The Group engages in lease agreements as a lessor, leasing its vessels to nonleases.

given to the lessee) are recognised in pro -line basis over the period of the lease term.

of cost and net realisable value. They are accounted for on a weighted average cost basis.

Trade and other receivables

Trade and other receivables are measured at the

Cash and cash equivalents

Cash and cash equivalents include unrestricted cash, bank deposits and other highly liquid investments with

Share capital and share premium

and the nominal value of the shares.

Dividends

F

account any premium or discount on is discharged, cancelled, or expires.

Provisions

for

Warrants

• LP to subscribe for warrants (the "Warrants") in the Company equal to 7.5% of the total outstanding shares exercisable The Warrants can be exercised onwards. The the value of the Company for all future shareholders. The Warrants does not carry rights in the event of a s are in scope of IFRS 2 -Share based payments and will be recognized as cash- - for warrants 30 September 2024.

on and review. If any taxable pre and/or prospects.

tax in accordance with the general Norwegian tax rules and certain special rules in the tonnage tax regime. Instead of tax on qualifying shipping income, a tonnage tax based on the net tonnage of the vessel(s) is paid.

currently 22%.

The Company's subsidiaries are incorporated in the in s

they are subject to common contro recorded based on their

Current assets and short- comprised of items due less than one year from the balance sheet cycle.

es -term debt. Long-term debt due for repayment within one year from the balance

Subsequent events

Note 4 - Financial risk management

(i) Financial risk factors

Market risk

The Group's interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose

assesses the credit quality of the charterer, takin other factors.

Note 4 -

(ii) Capital risk management

t of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt.

and non- as shown in the balance sheet) less cash and cash equivalents. Total capital is

Note 5 -

policies, which are described in Note 3, requires these - going basis.

Judgments

In the process of

The purchase of vessels is

• 1. -alone sed in the of the Group.
• 1. Control and Ownership: The vessels were acquired to enhance the the
• 1. adherence to is ensured. The vessels are sed over their useful lives.

Note 5 -

Vessel life and impairment

delivered from the shipyard. In the shipping industry, use of life in this range has become the standard. The expense and impairment losses could

the market prices of second buildings. Historically, both charter rates and vessel values tend to be . The Group the vessel will be less than its carrying value. The carrying amount of a vessel held and used by the Group is carrying amount of the vessel may not be fully recoverable. In such instances, an impairment charge would be han the vessel's carrying amount.

on historical trends as well as future expe

Note 6 - Operating revenue

	Q3 2024 (unaudited)	Q3 2023 (unaudited)	YTD 2024 (unaudited)	YTD 2023 (unaudited)
	USD	USD	USD	USD
Service revenue from time charters	-	1,354,141	927,234	1,971,688
Lease revenue from time charters	-	2,528,415	1,006,339	3,785,306
Pool charter revenue	18,188,639	7,809,325	50,254,330	12,954,040
	18,188,639	11,691,880	52,187,903	18,711,035

(a) Contract balances

The Group has recognised the following liabilities related to contracts with customers:

	30 Sep 2024 (unaudited)	31 Dec 2023 (audited)
	USD	USD
Contract liabilities
Current
Contract liabilities	-	230,650
Total contract liabilities	-	230,650

period end. This may happen in the case where the charterer has made an advance payment before the lease period, as of the period end date.

Note 6 - Operating revenue (continued)

(b) Performance obligations

Information about the Group's performance obligations are summarised below:

Revenue from time charters - Under IFRS 15, the lease component and the service component of time charters need to be separately disclosed. The service component is accounted for separately under IFRS 15. The service component in the time charter includes a single performance obligation. The performance obligation is satisfied over time, given that the charterers simultaneously receive and consume the benefits provided by the Group. Revenue recognized in respect of the service component under IFRS 15 did not change. The lease component continues to be accounted for as a lease under IFRS 16.

The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at 30 September 2024 are, as follows:

	30 Sep 2024	31 Dec 2023
	(unaudited)	(audited)
	USD	USD
Within one year	-	885,400
Between two to five years	-	-
	-	885,400

Note 7 - Vessel voyage expenses
	Q3 2024	Q3 2023	YTD 2024	YTD 2023
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	USD	USD	USD	USD
Commission fees	463,659	332,504	1,259,317	599,349
Bunkers consumption	35,352	3,446	393,413	5,738
Pool administration costs and other expenses	207,000	101,440	569,444	246,267
Other voyage expenses	283,856	160	414,633	1,891
	989,867	437,549	2,636,807	853,245

Note 8 - Vessel operating expenses

	Q3 2024	Q3 2023	YTD 2024	YTD 2023
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	USD	USD	USD	USD
Vessel operating expenses	6,371,580	4,950,705	19,052,712	7,605,283
	6,371,580	4,950,705	19,052,712	7,605,283

Note 9 - Administrative expenses

(unaudited)	(unaudited)	(unaudited)	(unaudited)
USD	USD	USD	USD
20,000	20,000	68,995	60,000
43,380	62,546	134,108	129,733
38,040	36,843	78,757	84,712
538,200	418,600	1,602,900	900,900
4,772	3,764	21,990	7,910
20,405	-	666,244	-
53,739	34,422	180,424	80,071
718,536	576,175	2,753,418	1,263,327
	Q3 2024	Q3 2023	YTD 2024	YTD 2023

Note 9 - Administrative expenses (continued)

During YTD 2024, the Company paid a management service fee of USD 1,602,900

Note 10 - Finance (costs)/income

	Q3 2024	Q3 2023	YTD 2024	YTD 2023
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	USD	USD	USD	USD
Interest income	47,914	33,193	157,809	167,862
Finance income	47,914	33,193	157,809	167,862
Interest expense (Note 15)	(2,115,030)	(1,586,990)	(6,409,913)	(2,569,364)
Commitment fees	-	-	-	(112,300)
Finance costs	(2,115,030)	(1,586,990)	(6,409,913)	(2,681,664)
Net finance costs	(2,067,116)	(1,553,797)	(6,252,103)	(2,513,801)

Note 11 - Vessels and drydocking costs

Vessels costs costs Total USD USD USD USD Cost Balance as at 31 December 2023 148,158,490 - - 148,158,490 Additions 12,233 2,505,368 152,939 2,670,539 Balance as at 30 September 2024 148,170,723 2,505,368 152,939 150,829,029 Depreciation and amortisation Balance as at 31 December 2023 6,079,469 - - 6,079,469 Charge for the period 9,101,470 215,823 13,721 9,331,014 Balance as at 30 September 2024 15,180,940 215,823 13,721 15,410,484 Net book amount Balance as at 31 December 2023 142,079,020 - - 142,079,020 Balance as at 30 September 2024 132,989,783 2,372,032 139,218 135,501,033 Insured value (USD) 195,000,000 Total dead weight tonnage (dwt) 47,414.61		Drydocking	Other capitalised

and completed her third special survey in China on 17 April 2024 upon USD 1,275,368 capitalised as of 30 September 2024. During the drydock, the following energy saving devices -performance paint with a total cost USD 94,553 capitalised as of 30 September 2024.

The Orchid Sylt entered drydocking on 27 April 2024 and completed her third special survey in China on 14

Note 11 - Vessels and drydocking costs (continued)

USD 1,230,000 capitalised as of 30 September 2024. During the drydock, the following energy saving devices -performance paint with a total cost USD 58,386 capitalised as of 30 September 2024.

The vessels are pledged bank loan detailed in Note 15.

As at 30 September 2024 the period end and no impairment was recognised in the period ended 30 September 2024 based on the assessment.

Note 12 - Trade and other receivables
	30 Sep 2024	31 Dec 2023
	(unaudited)	(audited)
	USD	USD
Charterers balances receivable	301,332	1,832,032
Pool working capital receivable	3,150,000	2,800,000
Prepayments	251,216	643,230
Restricted cash	5,276,871	3,854,293
Other receivables	497,948	118,681
	9,477,366	9,248,236

Restricted cash comprise (i) a minimum liquidity requirement of USD 250,000 (2023: USD 250,000) per Vessel, for the 7 initial vessels acquired during Q3 2023, held in a restricted cash account and (ii) funding of a dry dock reserve account of USD 3,526,871 (2023: USD 2,104,293) (Note 15).

Included in the prepayments, there is an amount of US\$NIL (2023: US\$236,902) due from the technical manager of the vessels, representing advance cash paid.

Note 13 - Cash and cash equivalent

Cash balances are analysed as follows:

	30 Sep 2024	31 Dec 2023
	(unaudited)	(audited)
	USD	USD
Cash at bank	3,802,560	2,345,378
	3,802,560	2,345,378

Note 14 - Equity contribution

	No. of shares	Share capital USD	Share premium USD	Total USD
Balance as at 01 December 2022
Proceeds during the period	13,500,000	13,072,672	54,030,330	67,103,002
Transaction costs			(3,281,783)	(3,281,783)
Dividend distribution during the period			(3,847,500)	(3,847,500)
Balance as at 31 December 2023	13,500,000	13,072,672	46,901,047	59,973,718
Dividend distribution during the period			(10,125,000)	(10,125,000)
Balance as at 30 September 2024	13,500,000	13,072,672	36,776,047	49,848,718

Note 14 - Equity contribution (continued)

The equity contribution represents paid in capital made by the equity holders during the period.

On February 21, 2024, a distribution of a cash dividend in the form of return of paid-in capital, amounting to USD

a distribution of a cash dividend in the form of paid-in capital, amounting to USD 3,375,000.

On August 6, 2024, the Board of Directors approved a distribution of a cash dividend in the form of paid-in capital, amounting to USD 3,712,500.

Note 15 - Borrowings
	30 Sep 2024	31 Dec 2023
	(unaudited)	(audited)
	USD	USD
Current borrowings
Bank loans	9,726,247	9,736,506
Non-current borrowings
Bank loans	67,528,766	74,913,770
Total	77,255,013	84,650,276
	30 Sep 2024	31 Dec 2023
	(unaudited)	(audited)

	USD	USD
Within one year	9,726,247	9,736,506
Between 1 and 2 years	10,366,247	9,807,362
Between two and five years	57,162,519	65,106,407
	77,255,013	84,650,276

nk Limited, London Branch as Lender, arranger, facility agent and security agent (the "Lender") entered into a facility agreement whereby the Lender makes available a loan of up to USD 97,500,000, comprising a USD ount, and USD 30,000,000 USD Amount.

Placement.

commenced on 30 June

Note 15 – Borrowings (continued)

varying instalments, which are payable together with the interest in quarterly instalments at each quarter end. Final repayment of the Facility Agreement is scheduled separately for each Vessel tranche, at the earlier of when a Vessel has reached twenty ye September ale or total loss, as well as any arrest from which a

The Facility Agreement includes covenants on (i) a minimum liquidity requirement of USD 250,000 per Vessel (except for the last two vessels acquired using the Upsize Tranche) held in a restricted cash account at all -day SOFR p of a dry dock reserve account in equal monthly instalments beginning 12 months prior to an upcoming capex rmed prior to drawdown.

basis of a 12- USD 250,000 in unrestricted cash per Vessel

	30 Sep 2024 (unaudited)	31 Dec 2023 (audited)
	USD	USD
Opening balance	84,650,277	-
Drawdown (gross of transaction costs)	-	94,500,000
Capitalised borrowing costs	(56,096)	(1,577,749)
Repayments	(7,590,000)	(8,491,250)
Interest expense (Note 10)	6,159,080	4,301,976
Amortisation of borrowing costs (Note 10)	250,832	219,276
Interest paid	(6,159,080)	(4,301,976)
Balance as at 30 September 2024/31 December 2023	77,255,013	84,650,277

Movement analysis:

Note 16 - Trade and other payables

(unaudited)	(audited)
USD	USD
200,000	767,806
-	466,997
1,581,742	773,084
451,798	373,475
666,244	-
363,711	103
3,263,495	2,381,465
	30 Sep 2024	31 Dec 2023

Note 16 - Trade and other payables (continued)

Included in the trade payables, there is an amount of USD 1,398,002 (2023: USD 582,804) due to the technical manager of the vessels.

The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.

Note 17 - Related party transactions

(i) Transactions with related parties (Note 9)
			Q3 2024 (unaudited)	Q3 2023 (unaudited)	YTD 2024 (unaudited)	YTD 2023 (unaudited)
Name	Nature of relationship	Nature of transactions	USD	USD	USD	USD
Directorship fees	Board of Directors	Directorship fees	38,040	36,843	78,757	84,712
			38,040	36,843	78,757	84,712

Note 18 –

September 2024.

Note 19 - Commitments

Operating lease commitments The Group as lessor Contracted revenues from vessels operations

The Group's long-term time charter arrangements aggregate time charter hire revenues as at the year-end over the firm contract period receivable are as follows:

	Lease revenue from time charters	Service revenue from time charters	Total
	USD	USD	USD
Within one year	-	-	-
Between two and five years	-	-	-
	-	-	-
Note 20 -

There have been no events subsequent to period end which require adjustment of or disclosure in the