Stainless Tankers ASA

Investor Presentation • Nov 8, 2023

Q3 Results Presentation

08 November 2023

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.

Agenda

Highlights

Chemical Tanker Rates & Outlook

Vessel Acquisitions

Financial Review

Q&A

Appendix - 3Q 2023 Financial Statements

Highlights

Market rates re-accelerating into Q4

Highlights

• 220 240▪ Spot TCEs were stable in Q3 compared to Q2, in line with expectations and guidance
• 180 ▪ Womar Q4 pool TCEs showing strong upside momentum and expected to average c.\$22k/day for the quarter
• 120 140 Indexed development ▪ Womar's attractive COA profile supports positive outlook beyond Q4
• 80 ▪ Five of the seven vessels now trading in the Womar pool
• 40 60 ▪ Two vessels on legacy time charters to enter the Womar pool at the end of November 2023 and March 2024
• 0 1… ▪ Two acquisition vessels already trade in the Womar pool

Fundamentals continue to remain supportive

Highlights

• Newbuild ordering activity during Q3 was virtually nonexistent and orderbook levels remain at c.6% of global fleet
• Stainless steel fleet growth to remain low; vessels older than 25yrs exceed orderbook, keeping replacement need high
• Stainless steel experienced yards, primarily in Japan, lack slots until 2027
• Dislocations from Ukraine war and corresponding increase in tonne-mile demand continue to restrict available capacity
• Overall demand growth expected to continue to outpace net fleet supply even in a global economic slowdown scenario

Attractive opportunity to acquire two additional vessels

Vessel overview Vessel condition

• Signed MOAs to acquire two 2005 built J19 vessels from funds managed by Tufton for \$27.0 million en-bloc
• Purchase price to be fully funded by a \$27.0 million upsize to existing loan facility, no additional equity requirement
• Transaction expected to close on or around 15 November 2023; vessels to remain in Womar pool employment
• Vessels will provide immediate contribution to earnings at Womar's expected Q4 pool TCE of \$22k/day

Vessel name	Size	Year	Yard	Price (\$m)	Next SS
Marmotas	19,998	2005	Usuki, Japan	\$13.5	Feb-25
Monax	20,645	2005	Usuki, Japan	\$13.5	Jul-25

• Drydock/Maintenance: Vessels recently completed drydocking and are in excellent condition
• ESDs: Completed installation of energy saving devices translating to c.9-10% efficiency savings
• 1. Schneekluth duct, propeller boss-cap fin
• 1. High performance paint
• 1. Variable Frequency Drives, LED lighting
• CII / EEXI: B (top 20% of non-eco vessels) / Max speed of 14.3kn fully laden

Acquisition enhances value for our shareholders without raising new equity, and is earnings and dividend accretive from day one

Positive financial impact of acquisitions

Acquisition overview in USD millions
Fleet	Net debt1	Fleet value2	LTV%
Existing fleet	60.3	124.0	48.6%
Acquisition vessels	27.0	28.0
Pro forma combined fleet	87.3	152.0	57.5%

Acquisition vessels in USD millions	4Q23
(+) Revenue3	1.98
(-) Operating expenses	(0.72)
(-) Debt service4	(0.35)
(=) Operating cash flow	0.91
(-) Transaction costs	(0.60)
(-) Working capital5	(0.10)
(=) Expected cash accretion/(dilution)	0.21

7,100 7,100 7,100 850 650 800 1,425 1,650 1,475 4,200 8,025 5,050 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Existing fleet Acquisition vessels PF combined fleet Opex SG&A Capex Debt Service \$/day \$13,575 \$17,425 \$14,425 Transaction summary Projected average operating break-even during 2024-2026 period

Transaction enhances free cash flow in current quarter, while increasing the average fleet b/e over next three years by only \$850/day

1) Net debt is based on debt outstanding as of expected closing on November 15th LESS restricted cash

• 2) Fleet value based on vv.com as of November 2 nd, 2023
• 3) Forecast based on Womar 4Q23 outlook of \$22,000/day

8

4) Upsize facility has \$0 debt paydown in 4Q23, \$4.1 million in 2024, \$4.1 million in 2025, \$3.2 million in 2026

5) Working capital due to Womar pool of \$350k/vessel to be paid over 12 equal monthly instalments

	Select Financials	3Q23
	Calendar days	644
	Available ship days	644
	Vessel days under ownership %	0% 100
et stats	ship days Revenue	639
e Fl	Utilization %	99 2%
	(\$/day) pool Net TCE	19 280 ,
	(\$/day) charter Net time	14 883 ,
e D)	(+) Net revenue	11 254 331 , ,
m S o U	(-) Opex	(4 705) 950 , ,
c n n (i	(-) SG&A	(576 175) ,
d i nt e	(=) EBITDA	5 727 451 , ,
ns e m e	(-) Depreciation	(2 653) 272 , ,
d e n	(+/-) income/(expense) Financial	(1 797) 553 , ,
stat o C	(+/-) income/(expense) Other	(6 274) ,
	Net Income	1 894 727 , ,
e	(1) Cash and cash equivalents	3 582 093 , ,
c ms n D) a	Fleet book value	117 689 813
e al S et it b U	(2) outstanding loan balance Net	, , 60 263 125 , ,
ect n e (i h	(3) loan outstanding book value Net % to	51 2%
el s S	Total equity	65 089 303 , ,

Comments and notes

• Q3 financials reflective of full fleet ownership for the quarter; fleet utilization at over 99%
• Of the total 644 ship days in Q3, 386 days were in pool employment compared to 258 pool days in Q2
• Net pool TCE income for the quarter derived from days that vessels were traded in the Womar pool and Stolt J19 pool
• Achieved net income of \$1.9 million and a net income margin of 16.8%
• Current market value of the fleet approximately \$7.0 million above book value
• Proposing dividend of \$2.16 million, or \$0.16 per share based on increasing momentum and outlook of the Womar pool

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	YTD	Q3 2023
Operating revenue	18 035 711 , ,	691 880 11 , ,
Vessel voyage expenses	(853 245) ,	(437 549) ,
Vessel operating expenses	(7 283) 605 , ,	(4 705) 950 , ,
Administrative expenses	(1 327) 263 , ,	(576 175) ,
Other income	10 098 ,	-
EBITDA	8 999 278 , ,	727 452 5 , ,
Depreciation	(3 070) 511 , ,	(2 653) 272 , ,
(EBIT) Operating result	5 488 208 , ,	3 454 798 , ,
Financial income	167 862 ,	33 193 ,
Financial expenses	(2 664) 681 , ,	(1 990) 586 , ,
Profit before (EBT) tax	2 974 406 , ,	1 901 001 , ,
Taxes	(18 822) ,	(6 274) ,
Profit and other comprehensive income for the period	2 955 584 , ,	1 894 727 , ,
Attributable to:
holders of the Equity parent company	2 955 584 , ,	1 894 727 , ,
Non-controlling interests	-	-

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 – 30 September 2023 ('YTD')

Appendix - Financial statements (balance sheet)

Consolidated statement of financial position (unaudited)

In USD	30 Sep 2023
ASSETS
Non-current assets
Vessels	117 689 813 , ,
Total non-current assets	117,689,813
Current assets
Trade and other receivables	5 935 927 , ,
Accrued income	18 588 ,
Cash and cash equivalent	3 582 093 , ,
Total current assets	9,536,608
Total assets	127,226,421
EQUITY LIABILITIES AND
Equity
Share capital	13 072 672 , ,
Share premium	49 061 047 , ,
Retained earnings	2 955 584 , ,
Total equity	65,089,303
liabilities Non-current
Interest-bearing debt - non-current	53 394 382 , ,
Total liabilities non-current	53,394,382
liabilities Current
Interest-bearing debt - current	7 602 453 , ,
Trade and other payables	1 101 495 , ,
Accrued taxation	18 822 ,
Deferred income	19 967 ,
Total liabilities current	8,742,737
Total equity and liabilities	127,226,421

Consolidated statement of cash flows (unaudited)

In USD	YTD	Q3 2023
Profit and other comprehensive for the period income	2 974 406 , ,	1 901 001 , ,
Financial expenses	2 401 501 , ,	1 553 797 , ,
Depreciation	3 070 511 , ,	2 272 653 , ,
Cash flow from operating activities before changes in working capital	8 886 978 , ,	5 727 452 , ,
Changes in working capital
trade and other receivables Increase in	(5 927) 935 , ,	(1 267) 264 , ,
trade and other payables Increase in	1 101 495 , ,	(805 564) ,
Accrued/(Deferred) income	1 380 ,	(269 461) ,
Cash flow from operating activities	4 053 924 , ,	3 388 160 , ,
Acquisition of vessels	(121 883) 200 , ,	-
received Interest	167 862 ,	33 193 ,
Cash flow from investing activities	(121 020) 033 , ,	33 193 ,
Proceeds from of shares issue	67 103 002 , ,	-
related Transaction costs	(3 783) 281 , ,	-
Dividends paid	(1 500) 687 , ,	(1 500) 687 , ,
Proceeds from of debt issue	67 500 000 , ,	-
Borrowing costs	(1 619) 115 , ,	(49 180) ,
of debt Repayment	(5 875) 486 , ,	(3 375) 004 , ,
paid interest-bearing debt Interest on	(2 036) 470 , ,	(1 347) 529 , ,
flow from financing Cash activities	120 561 188 , ,	(6 402) 270 , ,
change cash and cash equivalents Net in	3 582 092 , ,	(2 050) 849 , ,
Cash and cash equivalents beginning of period at	-	6 431 142 , ,
Cash and cash equivalents end of period at	3 582 092 , ,	3 582 092 , ,