Stainless Tankers ASA

Investor Presentation • Feb 7, 2024

4Q23 Results Presentation

07 February 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 - 4Q 2023 Financial Statements

Highlights

Market remains at historically high levels

Highlights

60

J

120

160

220

• 240▪ Spot market TCEs remain at elevated levels of c.\$22k/day
• 180 200 ▪ Panama Canal disruptions had short term negative impact of c.\$1k/day, resulting in Womar pool performance of c.\$21k/day
• 140 ▪ Expect pool TCEs to improve to \$22k/day by March
• 80 100 Indexed development▪ Strong support from COAs, with 27% of 2024 capacity fixed at TCEs of \$23.7k/day, an increase of over 10% from last year
• 20 40 ▪ Strong CPP market continues to support chemical tanker rates as share of swing tonnage remains low
• 0 1… ▪ We expect the positive earnings environment to remain in place for the foreseeable future

Disruptions in key transit points

▪ Declining canal transits led to logistical challenges for operators but also put significant upward pressure on freight rates as tonne-mile requirements increased

6

Chemical tanker earnings may gain further strength

Highlights

60

J…

120

180 200

240

• 220 ▪ Freight rates and TCEs are generally closely correlated
• 140 160 ▪ Since 2022 this correlation has been near perfect due to the tight supply in the chemical tanker markets
• 80 100 Indexed development▪ The recent spike in freight rates however is largely driven by an increase in tonne-miles, weakening the correlation
• 0 20 40 ▪ However, if sustained we expect the additional tightening in capacity supply to put further upward pressure on TCEs

Projected fleet growth remains supportive

• Ordering activity picked up during Q4 but orderbook of c.7% of global fleet remains at relatively low levels
• Scheduled deliveries of J19 tonnage during 2024-26E period currently only 17 vessels out of 43 in 10-25k DWT segment
• Delivery times at stainless steel experienced yards currently up to three years
• Very low scrapping activity raising average scrap age to 28 years, creating future pent-up scrapping demand
• Annual fleet growth of approximately 2% over next two years remains below projected demand growth around 3%

	Select Financials	4022
	Calendar days	828
	Available ship days	731
	Vessel days under ownership %	88.3%
	Revenue ship days	726
	Utilization %	99.3%
	Net pool TCE (\$/day)	20,618
	Net time charter (\$/day)	15,424
	(+) Net revenue	13,515,717
g	(-) Opex	(5,129,601)
	(-) SG&A	(763,943)
	(=) EBITDA	7,622,172
)	(-) Depreciation	(2,568,400)
ﻟ	(+/-) Financial income/(expense)	(1,842,880)
	(+/-) Other income/(expense)	(15,315)
	Net Income	3,195,578
	Cash and cash equivalents (1)	6,199,671
(in USD)	Fleet book value	142,079,020
	Net outstanding loan balance (2)	84,258,750
	Net loan outstanding to book value % '31 Total enuitv	59.3% 66 174 881

Comments and notes

• Q4 financials include a combined 88 ship days from 2 newly acquired vessels
• Two vessels on TC for Q4, of which one transferred to Womar pool at yearend
• Last remaining TC vessel to be transferred by end April 2024
• Achieved net income of \$3.2m, of which \$0.9m from new vessels, and a net income margin of 23.6%
• Pool TCE \$400/day lower than Womar pool average as two vessels earned lower rates for 46 days in legacy pool
• Market value of the fleet at yearend c.\$13m higher than depreciated book value on firming secondhand prices
• LTV of 59.3% based on book value, falling to 54.4% using market value
• Proposing dividend of \$3.04m, or \$0.225/share

1) Cash and cash equivalents comprised of restricted and unrestricted cash

2) Net outstanding loan balance comprised of loan balance outstanding not including capitalized costs less restricted cash

3) LTV % is based on net outstanding loan balance divided by fleet book value

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

In USD	YID	Q4 2023
Operating revenue	32,864,764	14,153,729
Vessel voyage expenses	(1,491,258)	(638,013)
Vessel operating expenses	(12,734,884)	(5,129,601)
Administrative expenses	(2,043,383)	(780,056)
Other income	12,905	2,807
EBITDA	16,608,144	7,608,867
Depreciation	(6,079,469)	(2,568,400)
Operating result (EBIT)	10,528,675	5,040,467
Financial income	290,176	122,313
Financial expenses	(4,633,551)	(1,951,887)
Profit before tax (EBT)	6,185,299	3,210,893
Taxes	(34,137)	(15,315)
Profit and other comprehensive income for the period	6,151,162	3,195,578
Attributable to:
Equity holders of the parent company	6,151,162	3,195,578
Non-controlling interests
	6,151,162	3,195,578

Note: The reported condensed interim consolidated financial figures for the Stainless Tankers Group presented below comprise revenue and expenses incurred during the period 1 December 2022 – 31 December 2023 ('YTD')

Appendix - Financial statements (Balance Sheet)

In USD	31-Dec-23
ASSETS
Non-current assets
Vessels	142,079,020
Total non-current assets	142,079,020
Current assets
Trade and other receivables	4,926,922
Cash and cash equivalent	6,199,671
Total current assets	11,126,593
Total assets	153,205,613
EQUITY AND LIABILITIES
Equity
Share capital	13,072,672
Share premium	46,901,047
Retained earnings	6,151,162
Total equity	66,124,881
Non-current liabilities
Interest-bearing debt - non-current	74,381,002
Total non-current liabilities	74,381,002
Current liabilities
Interest-bearing debt - current	10,269,275
Trade and other payables	1,914,346
Accrued taxation	34,137
Deferred income	481,973
Total current liabilities	12,699,730
Total equity and liabilities	153,205,613

Consolidated statement of cash flows (unaudited)

In USD	YTD	Q4 2023
Profit for and other comprehensive income the period	6 185 299 , ,	3 210 893 , ,
Financial expenses	4 231 075 , ,	1 829 574 , ,
Depreciation	6 079 469 , ,	2 568 400 , ,
Cash flow from before changes working capital operating activities in	16 495 844 , ,	7 608 867 , ,
Changes working capital in
trade and other receivables Increase in	(4 922) 926 , ,	1 009 006 , ,
trade and other payables Increase in	1 914 346 , ,	812 851 ,
Accrued/(Deferred) income	481 973 ,	480 593 ,
Cash flow from operating activities	13 965 241 , ,	9 911 317 , ,
of Acquisition vessels	(148 490) 158 , ,	(26 607) 957 , ,
received Interest	290 176 ,	122 313 ,
Cash flow from investing activities	(147 314) 868 , ,	(26 294) 835 , ,
Proceeds from of shares issue	67 103 002 , ,	-
Transaction related costs	(3 783) 281 , ,	-
Dividends paid	(3 500) 847 , ,	(2 000) 160 , ,
Proceeds from of debt issue	94 500 000 , ,	27 000 000 , ,
Borrowing costs	(1 749) 577 , ,	(462 130) ,
of debt Repayment	(8 250) 491 , ,	(3 375) 004 , ,
paid interest-bearing debt Interest on	(4 976) 301 , ,	(1 940) 831 , ,
Cash flow from financing activities	140 102 743 , ,	19 541 555 , ,
change cash and cash equivalents Net in	6 199 671 , ,	2 617 579 , ,
Cash and cash equivalents beginning of period at	-	3 582 092 , ,
of Cash and cash equivalents end period at	6 199 671 , ,	6 199 671 , ,