Stainless Tankers ASA

Quarterly Report • Aug 7, 2024

Interim Consolidated Financial Statements Q2 2024 and half year 2024

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

In USD	Notes	Q2 2024 (unaudited)	Q2 2023 (unaudited)	H1 2024 (unaudited)	H1 2023 (unaudited)
Operating revenue	6	17,994,471	7,019,155	33,999,264	7,019,155
Vessel voyage expenses	7	(932,995)	(415,696)	(1,646,940)	(415,696)
Vessel operating expenses	8	(6,238,683)	(2,654,578)	(12,681,132)	(2,654,578)
Administrative expenses	9	(1,315,657)	(552,129)	(2,034,882)	(687,152)
Other income		-	10,098	404	10,098
EBITDA		9,507,137	3,406,849	17,636,716	3,271,826
Depreciation and amortisation	11	(2,877,260)	(1,238,417)	(5,897,539)	(1,238,417)
Operating result (EBIT)		6,629,877	2,168,432	11,739,176	2,033,409
Financial income	10	53,881	120,024	109,895	134,670
Financial expenses	10	(2,134,840)	(1,094,674)	(4,294,883)	(1,094,674)
Profit before tax (EBT)		4,548,918	1,193,783	7,554,189	1,073,405
Taxes		(8,535)	(12,548)	(17,069)	(12,548)
Profit and other comprehensive income for the period		4,540,383	1,181,235	7,537,120	1,060,857
Attributable to:
Equity holders of the parent company Non-controlling interests		4,540,383 -	1,181,235 -	7,537,120 -	1,060,857 -
		4,540,383	1,181,235	7,537,120	1,060,857

Consolidated statement of financial position (unaudited)

Consolidated statement of financial position (unaudited)
		30 Jun 2024	31 Dec 2023
In USD	Notes	(unaudited)	(audited)
ASSETS
Non-current assets
Vessels and drydocking costs	11	138,835,296	142,079,020
Total non-current assets		138,835,296	142,079,020
Current assets
Trade and other receivables	12	9,411,288	9,248,236
Accrued income		241,758	-
Cash and cash equivalent	13	2,334,489	2,345,378
Total current assets		11,987,535	11,593,614
Total assets		150,822,831	153,672,634
EQUITY AND LIABILITIES
Equity
Share capital	14	13,072,672	13,072,672
Share premium	14	40,488,547	46,901,047
Retained earnings	14	13,688,185	6,151,065
Total equity		67,249,403	66,124,784
Non-current liabilities
Interest-bearing debt - non-current	15	69,977,163	74,913,770
Total non-current liabilities		69,977,163	74,913,770
Current liabilities
Interest-bearing debt - current	15	9,656,247	9,736,506
Trade and other payables	16	3,888,812	2,381,465
Accrued taxation		51,206	34,137
Deferred income		-	481,973
Total current liabilities		13,596,265	12,634,081
Total equity and liabilities		150,822,831	153,672,634
	Oslo, 6th August 2024
	Board of Directors and Chief Executive
	Officer of Stainless Tankers ASA

……………………. ……………………. …………………….

Geir Frode Abelsen Board member

Nicoletta Panayiotopoulos Board member

Ted Kalborg Chairman

……………………. ……………………. ……………………. Hans Van der Zidje Board member

Ulrika Laurin

Board member

Andrew Hampson CEO

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		-	-	7,537,120	7,537,120
Dividends distributions during the period	14	-	(6,412,500)	-	(6,412,500)
As at 30 June 2024		13,072,672	40,488,547	13,688,185	67,249,403

Consolidated statement of cash flows (unaudited)

In USD	Notes	Q2 2024 (unaudited)	Q2 2023 (unaudited)	H1 2024 (unaudited)	H1 2023 (unaudited)
Profit and other comprehensive		4,548,918	1,193,783	7,554,189	1,073,405
income for the period
Adjustments for:		-
Financial income	10	(53,881)	-	(109,895)	-
Financial expenses	10	2,134,840	862,350	4,294,883	847,704
Depreciation and amortisation	11	2,877,260	1,238,417	5,897,539	1,238,417
Cash flow from operating activities before changes in working capital		9,507,137	3,294,549	17,636,716	3,159,526
Changes in working capital
Increase in trade and other receivables		756,886	(4,680,677)	(163,052)	(4,680,677)
Increase in trade and other payables		566,171	1,772,037	1,507,348	1,907,059
Accrued/(Deferred) income		(250,615)	279,857	(723,731)	279,857
Cash flow from operating activities		10,579,580	665,766	18,257,281	665,765
Acquisition of vessels		-	121,200,883)	(12,233)	(121,200,883)
Drydocking costs		(2,641,582)	-	(2,641,582)	-
Interest received		53,881	134,670	109,895	134,670
Cash flow from investing activities		(2,587,702)	121,066,213)	(2,543,920)	(121,066,213)
Proceeds from issue of shares	13	-	67,103,002	-	67,103,002
Transaction related costs	13	-	(3,281,783)	-	(3,281,783)
Dividends paid	14	(3,375,000)	-	(6,412,500)	-
Proceeds from issue of debt	15	-	67,500,000	-	67,500,000
Borrowing costs	15	-	(1,066,439)	(56,096)	(1,066,439)
Repayment of debt	15	(2,565,000)	(2,482,500)	(5,130,000)	(2,482,500)
Interest paid on interest-bearing debt	15	(2,054,123)	(940,689)	(4,125,653)	(940,689)
Cash flow from financing activities		(7,994,123)	126,831,591	(15,724,249)	126,831,591
Net change in cash and cash equivalents		(2,245)	6,431,142	(10,889)	6,431,142
Cash and cash equivalents at beginning of period		2,336,734	-	2,345,378	-
Cash and cash equivalents at end of period	13	2,334,489	6,431,142	2,334,489	6,431,142

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 June 2024 are prepared in accordance with adopted by the European Union (EU).

The interim

or

Note 3 –

and its subsidiaries as at 30 June 2024. All intra- the Group has a controlling interest. Control is achieved when the Group is exposed, or has rights to variable ose returns through its power over the investee. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are desubsidiaries ar

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.

exchange rate prevailing at the balance s ng the historical exchange rate. Non-

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 not carry rights -Share based payments and will be recognized as cash- - for 30 June 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

interest rate risk), credit risk and liquidity risk.

Market risk

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

Credit risk arises from bank

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 -

the carrying amounts of assets and liabili the asset or - going basis.

Judgments

judgments,

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 amount of the vessel may not be fully recoverable. In such instances, an impairment charge would be recognised if

on historical trends as well as future expe

Note 6 - Operating revenue

	Q2 2024 (unaudited)	Q2 2023 (unaudited)	H1 2024 (unaudited)	H1 2023 (unaudited)
	USD	USD	USD	USD
Service revenue from time charters	257,565	915,161	927,234	915,161
Lease revenue from time charters	288,258	959,278	1,006,339	959,278
Pool charter revenue	17,448,649	5,144,715	32,065,692	5,144,715
	17,994,471	7,019,155	33,999,264	7,019,155

(a) Contract balances

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

	30 Jun 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

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 June 2024 are, as follows:

	30 Jun 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
	Q2 2024	Q2 2023	H1 2024	H1 2023
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	USD	USD	USD	USD
Commission fees	452,934	266,846	795,658	266,846
Bunkers consumption	218,070	2,292	358,061	2,292
Pool administration costs and other expenses	195,802	144,827	362,444	144,827
Other voyage expenses	66,189	1,731	130,777	1,731
	932,995	415,696	1,646,940	415,696

Note 8 - Vessel operating expenses

	Q2 2024	Q2 2023	H1 2024	H1 2023
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	USD	USD	USD	USD
Vessel operating expenses	6,238,683	2,654,578	12,681,132	2,654,578
	6,238,683	2,654,578	12,681,132	2,654,578

Note 9 - Administrative expenses

	Q2 2024	Q2 2023	H1 2024	H1 2023
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	USD	USD	USD	USD
Auditor's remuneration	22,095	40,000	48,995	40,000
Legal and other professional fees	27,091	11,203	90,727	67,187
Directors fees (Note 17)	9,515	47,869	40,717	47,869
	532,350	414,050	1,064,700	482,300
Warrants	645,839	-	645,839	-
Bank charges	8,846	3,692	17,219	4,146
Other expenses	69,921	35,315	126,685	45,649
	1,315,657	552,129	2,034,882	687,151

Note 9 - Administrative expenses (continued)

in

Note 10 - Finance (costs)/income

	Q2 2024	Q2 2023	H1 2024	H1 2023
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	USD	USD	USD	USD
Interest income	53,881	120,024	109,895	134,670
Finance income	53,881	120,024	109,895	134,670
Interest expense (Note 15)	(2,134,840)	(982,374)	(4,294,883)	(982,374)
Commitment fees	-	(112,300)	-	(112,300)
Finance costs	(2,134,840)	(1,094,674)	(4,294,883)	(1,094,674)
Net finance costs	(2,080,959)	(974,650)	(4,184,988)	(960,004)

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 2,486,049 155,533 2,653,815
Balance as at 30 June 2024 148,170,723 2,486,049 155,533 150,812,305
Depreciation and amortisation
Balance as at 31 December 2023 6,079,469 6,079,469 - -
Charge for the period 5,808,911 82,550 6,078 5,897,539
Balance as at 30 June 2024 11,888,380 82,550 6,078 11,977,009
Net book amount
Balance as at 31 December 2023 142,079,020 - - 142,079,020
Balance as at 30 June 2024 136,282,342 2,403,499 149,455 138,835,296
Insured value (USD) 195,000,000
Total dead weight tonnage (dwt) 47,414.61

and completed her third special survey in China on 17 April 2024 upon USD 1,256,049 capitalised as of 30 June 2024. During the drydock, the following energy saving devices were -performance paint with a total cost USD 94,553 capitalised at 30 June 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 June 2024. During the drydock, the following energy saving devices were -performance paint with a total cost USD 60,980 capitalised at 30 June 2024.

The vessels are pledged bank loan detailed in Note 15.

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

Note 12 - Trade and other receivables
	30 Jun 2024	31 Dec 2023
	(unaudited)	(audited)
	USD	USD
Charterers balances receivable	1,475,504	1,832,032
Pool working capital receivable	3,150,000	2,800,000
Prepayments	246,080	643,230
Restricted cash	4,143,539	3,854,293
Other receivables	396,166	118,681
	9,411,288	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 Q2 2023, held in a restricted cash account and (ii) funding of a dry dock reserve account of USD 2,393,539 (2023: USD 2,104,293) (Note 15).

Note 13 - Cash and cash equivalent

Cash balances are analysed as follows:

	2,334,489	2,345,378
Cash at bank	2,334,489	2,345,378
	USD	USD
	(unaudited)	(audited)
	30 Jun 2024	31 Dec 2023

Note 14 - Equity contribution

No. of shares	Share capital	Share premium	Total
	USD	USD	USD
13,500,000	13,072,672	54,030,330	67,103,002
			(3,281,783)
		(3,847,500)	(3,847,500)
13,500,000	13,072,672	46,901,047	59,973,718
			(6,412,500)
13,500,000	13,072,672	40,488,547	53,561,218
			(3,281,783) (6,412,500)

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.

Note 15 - Borrowings
	30 Jun 2024	31 Dec 2023
	(unaudited)	(audited)
	USD	USD
Current borrowings
Bank loans	9,656,247	9,736,506
Non-current borrowings
Bank loans	69,977,163	74,913,770
Total	79,633,410	84,650,276
	30 Jun 2024	31 Dec 2023
	(unaudited)	(audited)
	USD	USD
Within one year	9,656,247	9,736,506
Between 1 and 2 years	10,176,247	9,807,362
Between two and five years	59,800,915	65,106,407
	79,633,409	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.

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 for the

Note 15 – Borrowings (continued)

Voluntary prepayment is allowed at hig Vessel's tranche,

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

Movement analysis:

	30 Jun 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	(5,130,000)	(8,491,250)
Interest expense (Note 10)	4,125,653	4,301,976
Amortisation of borrowing costs (Note 10)	169,228	219,276
Interest paid	(4,125,653)	(4,301,976)
Balance as at 30 June 2024/31 December 2023	79,633,409	84,650,277

Note 16 - Trade and other payables

	30 Jun 2024 (unaudited)	31 Dec 2023 (audited)
	USD	USD
Pool working capital	350,000	767,806
Charterers balances payable	28,370	466,997
Warrants	645,839	-
Trade payables	2,177,664	773,084
Accruals	575,307	373,475
Other payables	111,632	103
	3,888,812	2,381,465

Included in the trade payables, there is an amount of USD 1,888,988 (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)
			Q2 2024 (unaudited)	Q2 2023 (unaudited)	H1 2024 (unaudited)	H1 2023 (unaudited)
Name	Nature of relationship	Nature of transactions	USD	USD	USD	USD
Directorship fees	Board of Directors	Directorship fees	9,515	47,869	40,717	47,869
			9,515	47,869	40,717	47,869

Note 18 –

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	-	-	-
	-	-	-

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