Stainless Tankers ASA

Investor Presentation • May 8, 2024

1Q24 Results Presentation

08 May 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 - 1Q 2024 Financial Statements

Highlights

Market firming notably

Highlights

20

80

140

200

240

• 220 Achieved 1Q net pool TCE of \$20.6k/day, slightly below previous expectations
• 160 180 However, short-term impact on our pool TCEs from Panama Canal disruptions is behind us; rates firming since March
• 100 120 Indexed development 2Q starting strongly with April at \$23.3k/day and May on track to exceed \$24k/day
• 40 60 Spot market TCEs have firmed to over \$23k/day, while 1-yr TC rates are also up to \$20.8k/day
• 0 J 1… Strong support from COAs continues, with currently 30% of

Disruptions in key transit points easing slowly

Global freight rates have reached all-time highs

240

Chemical freight index – average of 23 global routes (\$/tonne)

Highlights

20

80 100

160

220 240

• 180 200 Longer trade routes and short-term operational issues from reduced canal transits delayed the positive impact on TCEs
• 120 140 Indexed development However, the sustained increase in freight rates has now also started putting significant upward pressure on earnings
• 40 60 We expect TCEs to continue closing the gap to freight rates due to the tight capacity supply situation
• 0 J… Freight rates likely to remain at elevated levels throughout this year, underpinning our positive outlook on earnings

Limited fleet growth supports positive outlook

• Ordering was virtually non-existent in Q1 with orderbook remaining at c.7% of global fleet
• Scheduled deliveries of J19 tonnage during 2024-26E period currently at 15 vessels out of 43 for the 10-25k DWT segment
• Delivery time at stainless steel experienced yards remains at up to three years
• Similarly, projected removals also mostly unchanged, with vessel age and backlog of scrapping candidates growing
• Annual fleet growth of approximately 2% over next two years remains below projected demand growth around 3%

	Select Financials	1Q24	Comments and notes
s at st et e Fl	Calendar days Available ship days Vessel days under ownership % Revenue ship days Utilization % Net pool TCE (\$/day) Net time charter (\$/day)	819 819 100.0% 794 97.0% 20,615 15,250
n \$) (i nt e m e at st	(+) Net revenue (-) Opex (-) SG&A (=) EBITDA (-) Depreciation (+/-) Financial income/(expense) (+/-) Other income/(expense) Net Income	15,290,848 (6,442,449) (711,416) 8,136,983 (3,020,279) (2,111,997) (7,970) 2,996,737
s m e n \$) et it (i e h s	Unrestricted cash (1) Fleet book value (2) Fleet market value (3) Net outstanding loan balance (4) Net loan outstanding to book value % (5) Net loan outstanding to book value % (6)	2,336,733 139,720,974 162,480,000 81,693,750 58.5% 50.3%

• Q1 financials reflect full fleet ownership for the quarter; utilization at 97% due to drydocking of Orchid Madeira
• The Orchid Madeira completed her third special survey on April 17th at a cost of \$1.3m
• One remaining vessel on TC for Q1, which was subsequently transferred to Womar pool on May 6th
• Net income impacted by c.\$0.7m due to timing of planned annual opex, expected to be offset by savings in later quarters
• Fleet market value up strongly at \$162.5m with LTV at 50.3%; NAV at \$88.8m or \$6.58/share (c. NOK 71/share)
• LTV based on increased fleet value falling to 50.3%
• Proposing dividend of \$3.38m, or \$0.25/share (c. NOK 2.7/share), to be paid on or about June 7th

Condensed income

Select balance

Appendix - Financial statements (Income Statement)

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

Q1 2024
16,004,793
(713,945)
(6,442,449)
(719,225)
404
8,129,579
(3,020,279)
5,109,299
56,015
(2,160,043)
3,005,271
(8,534)
2,996,737
2,996,737
-
2,996,737

Appendix - Financial statements (Balance Sheet)

Consolidated statement of financial position (unaudited)

In \$	31 Mar 2024
ASSETS
Non-current assets
Vessels and drydocking costs	139,720,974
Total non-current assets	139,720,974
Current assets
Trade and other receivables	10,168,174
Cash and cash equivalent	2,336,733
Total current assets	12,504,907
Total assets	152,225,882
EQUITY AND LIABILITIES
Equity
Share capital	13,072,672
Share premium	43,863,547
Retained earnings	9,147,802
Total equity	66,084,020
Non-current liabilities
Interest-bearing debt - non-current	72,426,445
Total non-current liabilities	72,426,445
Current liabilities
Interest-bearing debt - current	9,691,247
Trade and other payables	3,972,642
Accrued taxation	42,671
Deferred income	8,857
Total current liabilities	13,715,416
Total equity and liabilities	152,225,882

Consolidated statement of cash flows (unaudited)

In \$	Q1 2024
Profit and other comprehensive income for the period	3,005,271
Adjustments for:
Financial income	(56,015)
Financial expenses	2,160,043
Depreciation	3,020,279
Cash flow from operating activities before changes in working capital	8,129,579
Changes in working capital
Increase in trade and other receivables	(919,938)
Increase in trade and other payables	941,177
Accrued/(Deferred) income	(473,116)
Cash flow from operating activities	7,677,701
Acquisition of vessels	(12,233)
Interest received	56,015
Cash flow from investing activities	43,781
Dividends paid	(3,037,500)
Proceeds from issue of debt	-
Borrowing costs	(56,096)
Repayment of debt	(2,565,000)
Interest paid on interest-bearing debt	(2,071,530)
Cash flow from financing activities	(7,730,126)
Net change in cash and cash equivalents	(8,644)
Cash and cash equivalents at beginning of period	2,345,378
Cash and cash equivalents at end of period	2,336,734