Stainless Tankers ASA

Quarterly Report • May 8, 2024

Consolidated Financial Statements

Q1 2024

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

In USD	Notes	Q1 2024	Q4 2023
Operating revenue	6	16,004,793	14,066,046
Vessel voyage expenses	7	(713,945)	(550,329)
Vessel operating expenses	8	(6,442,449)	(5,129,601)
Administrative expenses	9	(719,225)	(780,154)
Other income		404	2,807
EBITDA		8,129,579	7,608,769
Depreciation	11	(3,020,279)	(2,568,400)
Operating result (EBIT)		5,109,299	5,040,370
Financial income	10	56,015	122,313
Financial expenses	10	(2,160,043)	(1,951,887)
Profit before tax (EBT)		3,005,271	3,210,796
Taxes		(8,534)	(15,315)
Profit and other comprehensive income for the period		2,996,737	3,195,481
Attributable to:
Equity holders of the parent company		2,996,737	3,195,481
Non-controlling interests		-	-
		2,996,737	3,195,481

Consolidated statement of financial position

Consolidated statement of financial position
In USD	Notes	31 Mar 2024 (unaudited)	31 Dec 2023 (audited)
ASSETS
Non-current assets
Vessels and drydocking costs	11	139,720,974	142,079,020
Total non-current assets		139,720,974	142,079,020
Current assets
Trade and other receivables	12	10,168,174	9,248,236
Cash and cash equivalent	13	2,336,733	2,345,378
Total current assets		12,504,907	11,593,614
Total assets		152,225,882	153,672,634
EQUITY AND LIABILITIES
Equity
Share capital	14	13,072,672	13,072,672
Share premium	14	43,863,547	46,901,047
Retained earnings	14	9,147,802	6,151,065
Total equity		66,084,020	66,124,784
Non-current liabilities
Interest-bearing debt - non-current	15	72,426,445	74,913,770
Total non-current liabilities		72,426,445	74,913,770
Current liabilities
Interest-bearing debt - current	15	9,691,247	9,736,506
Trade and other payables	16	3,972,642	2,381,465
Accrued taxation		42,671	34,137
Deferred income		8,857	481,973
Total current liabilities		13,715,416	12,634,081
Total equity and liabilities		152,225,882	153,672,634
	Oslo, 7th May 2024
	Board of Directors and Chief Executive
	Officer of Stainless Tankers ASA

Geir Frode Abelsen Board member

……………………. ……………………. ……………………. Nicoletta Panayiotopoulos Board member

Ted Kalborg Chairman

SP

Board member

……………………. ……………………. ……………………. Ulrika Laurin Board member

Hans Van der Zidje Alexandros Karakassis 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		-	-	2,996,737	2,996,737
Dividends distributions during the period	14	-	(3,037,500)	-	(3,037,500)
As at 31 March 2024		13,072,672	43,863,547	9,147,802	66,084,020

Consolidated statement of cash flows (unaudited)

In USD	Notes	Q1 2024	Q4 2023
Profit and other comprehensive income for the period		3,005,271	3,210,796
Adjustments for:
Financial income	10	(56,015)	(122,313)
Financial expenses	10	2,160,043	1,951,887
Depreciation	11	3,020,279	2,568,400
Cash flow from operating activities before changes in working capital		8,129,579	7,608,769
Changes in working capital
Increase in trade and other receivables		(919,938)	(3,312,309)
Increase in trade and other payables		941,177	1,279,970
Accrued/(Deferred) income		(473,116)	480,593
Cash flow from operating activities		7,677,701	6,057,024
Acquisition of vessels		(12,233)	(26,957,607)
Interest received		56,015	122,313
Cash flow from investing activities		43,781	(26,835,294)
Dividends paid	14	(3,037,500)	(2,160,000)
Proceeds from issue of debt	15	-	27,000,000
Borrowing costs	15	(56,096)	(462,130)
Repayment of debt	15	(2,565,000)	(3,004,375)
Interest paid on interest-bearing debt	15	(2,071,530)	(1,831,940)
Cash flow from financing activities		(7,730,126)	19,541,555
Net change in cash and cash equivalents		(8,644)	(1,236,715)
Cash and cash equivalents at beginning of period		2,345,378	3,582,092
Cash and cash equivalents at end of period	13	2,336,734	2,345,378

Non-

(i) The Orchid Madeira entered drydocking on 17 March 2024 and completed on 17 April 2024 of drydocking costs were USD650,000 capitalised (Note 11).

Notes to the c 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

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

or

Note 3 –

and its subsidiaries as at 31 March 2024. All intra- - nd dividends are eliminated. Subsidiaries are all companies where the Group has a controlling interest. Control is achieved when the Group is exposed, or has rights to variable hose 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 a

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- - March 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 Isle of Man and will, consequently, in principle be taxable 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

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 balances, deposits with banks and

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

apart from those involving

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
	Q1 2024	Q4 2023
	USD	USD
Service revenue from time charters	669,669	1,341,430
Lease revenue from time charters	164,354	1,398,358
Pool charter revenue	15,170,770	11,326,257
	16,004,793	14,066,046

(a) Contract balances

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

	31 Mar 2024	31 Dec 2023
	USD	USD
Contract liabilities
Current
Contract liabilities	-	230,650
Total contract liabilities	-	230,650

the 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 31 March 2024 are, as follows:

	31 Mar 2024	31 Dec 2023
	USD	USD
Within one year	206,052	885,400
Between two to five years	-	-
	206,052	885,400

Note 7 - Vessel voyage expenses
	Q1 2024	Q4 2023
	USD	USD
Commission fees	342,724	356,333
Bunkers consumption	139,992	13,024
Pool administration costs and other expenses	166,642	178,116
Other voyage expenses	64,588	2,856
	713,945	550,329

Note 8 - Vessel operating expenses
	Q1 2024	Q4 2023
	USD	USD
Vessel operating expenses	6,442,449	5,129,601
	6,442,449	5,129,601

Note 9 - Administrative expenses

	Q1 2024	Q4 2023
	USD	USD
Auditor's remuneration	26,900	20,000
Legal and other professional fees	63,636	171,169
Directors fees (Note 17)	31,202	40,962
Management service fees	532,350	488,800
Bank charges	8,373	13,179
Other expenses	56,764	46,044
	719,225	780,154

Note 10 - Financial income/(expenses)

	Q4 2023
USD	USD
56,015	122,313
56,015	122,313
(2,160,043)	(1,951,887)
(2,160,043)	(1,951,887)
(2,104,029)	(1,829,574)
	Q1 2024

Note 11 - Vessels and drydocking costs

	Vessels	Drydocking costs	Total
	USD	USD	USD
Cost
Balance as at 31 December 2023	148,158,490	-	148,158,490
Additions	12,233	650,000	662,233
Balance as at 31 March 2024	148,170,723	650,000	148,820,723
Depreciation
Balance as at 31 December 2023	6,079,469	-	6,079,469
Charge for the period	3,020,279	-	3,020,279
Balance as at 31 March 2024	9,099,749	-	9,099,749
Net book amount
Balance as at 31 December 2023	142,079,020	-	142,079,020
Balance as at 31 March 2024	139,070,974	650,000	139,720,974
Insured value (USD)	199,200,000
Total dead weight tonnage (dwt)	47,414.61

The Orchid Madeira entered drydocking on 10 March 2024 and completed her third special survey in China on 17 April 2024 USD 650,000 capitalised at 31 March 2024.

The vessels are pledged on bank loan detailed in Note 15.

As at 31 March 2024, the management carried out an period end and no impairment was recognised in the period ended 31 March 2024 based on the assessment.

Note 12 - Trade and other receivables

31 Mar 2024	31 Dec 2023
USD	USD
1,149,908	1,832,032
2,800,000	2,800,000
1,593,020	643,230
4,406,043	118,681
0	3,854,293
219,203	0
10,168,174	9,248,236

Included in the prepayments, there is an amount of USD 48,168 (2023: USD 236,902) due from the technical manager of the vessels, representing advance cash paid.

Restricted cash comprise (i) a minimum liquidity requirement of USD 250,000 (2023: USD 250,000) per Vessel held in a restricted cash account and (ii) funding of a dry dock reserve account of USD 4,406,063 (2023: USD 2,104,293) (Note 15).

Note 13 - Cash and cash equivalent

Cash balances are analysed as follows:

	31 Mar 2024	31 Dec 2023
	USD	USD
Cash at bank	2,336,733	2,345,378
	2,336,733	2,345,378

Note 14 - Equity contribution (Note 16)

	No. of shares	Share capital	Share premium	Total
		USD	USD	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			(3,037,500)	(3,037,500)
Balance as at 31 March 2024	13,500,000	13,072,672	43,863,547	56,936,218

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

On February 21, 2024, the distribution of a cash dividend in the form of return of paid-in capital, amounting to USD 3,037,500, was approved at the Extraordinary General Meeting.

Note 15 - Borrowings

	31 Mar 2024	31 Dec 2023
	USD	USD
Current borrowings
Bank loans	9,691,247	9,736,506
Non-current borrowings
Bank loans	72,426,445	74,913,770
Total	82,117,692	84,650,276
Maturity of borrowings:
	31 Mar 2024	31 Dec 2023
	USD	USD
Within one year	9,691,247	9,736,506
Between 1 and 2 years	9,986,247	9,807,362
Between two and five years	62,440,199	65,106,407
	82,117,692	84,650,276

the Obligors), and (iv) Macquarie Bank 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 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 vessels Monax, Marmotas, Lavraki, and City Island is in March 2027. For the vessel Barbouni, it is in June Voluntary prepayment is allow for each 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

Note 15 – Borrowings (continued)

of a dry dock reserve account in equal monthly instalments beginning 12 months prior to an upcoming capex

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

Movement analysis:

	Q1 2024	Q4 2023
	USD	USD
Opening balance	84,650,277	60,996,835
Drawdown (gross of transaction costs)	-	27,000,000
Capitalised borrowing costs	(56,096)	(462,130)
Repayments	(2,565,000)	(3,004,375)
Interest expense (Note 10)	2,071,530	1,831,940
Amortisation of borrowing costs (Note 10)	88,512	119,947
Interest paid	(2,071,530)	(1,831,940)
Balance as at 31 March 2024/31 December 2023	82,117,692	84,650,277

Note 16 - Trade and other payables

	31 Mar 2024	31 Dec 2023
	USD	USD
Pool working capital	500,000	767,806
Charterers balances payable	311,345	466,997
Trade payables	2,290,129	773,084
Accruals	812,446	373,475
Other payables	58,721	103
	3,972,642	2,381,465

Included in the trade payables, there is an amount of USD 2,071,833 (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

Name	Nature of relationship	Nature of transactions	USD	USD
Directorship fees (Note 9)	Board of Directors	Directorship fees	31,202	40,962
			31,202	40,962

Note 18 - Contingent liabilities

The Group had no contingent liabilities as at 31 December 2023.

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:

	220,948	206,052	427,000
Between two and five years	-	-	-
Within one year	220,948	206,052	427,000
	USD	USD	USD
	time charters	charters	Total
	Lease revenue from	from time
		revenue
		Service

Note 20 -

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