Stainless Tankers ASA

Investor Presentation • Aug 9, 2023

Q2 Results Presentation

09 August 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.

Highlights
------------	--

Chemical Tanker Rates & Outlook

Financial Review

Q&A

Appendix - 2Q 2023 Financial Statements

Highlights

Market rates stable at historically high levels

Highlights

40

140

200

• 220 240▪ Spot TCEs eased from a very strong winter but stabilised at levels that are at the peak of the previous cycle
• 160 180 ▪ 1yr TC rates remain well above the previous cycle peak, indicating continued optimism in the near-term outlook
• 100 120 Indexed development▪ STST will transfer five of its vessels into the Womar pool in 3Q23, with the remaining two delivering in 4Q23 and 1Q24
• 60 80 ▪ Attractive COA profile of the Womar pool supports positive outlook; recent uptick in TCEs encouraging
• 0 20 J 1… ▪ This provides support to our positive outlook even if spot rates continue at current levels

Fundamentals remain supportive

Highlights

• Fleet growth expected to stay low at an average of c.1% annually over the next three years
• Orderbook at c.6% is off record lows with the majority of new orders coming from smaller vessel sizes between 11-16k dwt
• Global GDP growth forecasts revised lower to 2.7% in 2023 and 2.9% in 2024, with similar demand growth expected for chemicals trade
• Dislocations from Ukraine war and corresponding increase in tonne-mile demand continue to restrict available capacity
• Overall demand growth is expected to continue to outpace supply, supporting the outlook for chemical tanker rates

2Q23 Financial performance

	Select Financials	Q2 2023
	Calendar days	637
	Available ship days	372
	Vessel days under ownership %	58%
	ship days Revenue	372
	Utilization %	100%
	(\$/day) pool Net TCE	19 274 ,
	(\$/day) charter Net time	14 768 ,
	(+) Net revenue	6 603 458
	(-) Opex	, , (2 578) 654 , ,
	(-) SG&A	(535 318) ,
	(=) EBITDA	3 413 561 , ,
	(-) Depreciation	(1 417) 238 , ,
	(+/ -) income/(expense) Financial	(974 650) ,
	(+/ income/(expense) -) Other	(19 260) ,
	Net Income	1 181 235 , ,
	(1) Cash and cash equivalents	6 431 143
	(2)	, ,
D) S	fleet value Net (3)	119 962 466 , ,
U n	Outstanding loan balance	65 017 500 , ,
(i	(4) value % Loan to	52 7%
	Total equity	64 882 076 , ,

Comments and notes

• 2Q23 financials not yet representative as full fleet owned for only 58% of quarter days
• Economics for remaining 42% of days obtained via c.\$\$2.2m in vessel price discounts not reflected in the P&L
• Net pool TCE for the quarter at \$19,274day with TCs averaging \$14,768day; Pool exposure to increase from 68% in 2023 to 97% in 2024
• Achieved healthy net income margin of 17.9%
• Drew down full \$67.5m committed tranche under the vessel acquisition facility; \$65.0m currently outstanding
• Current LTV at 52.7%⁴ , expected to decline further by year end due to accelerated 2023 debt repayment profile

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

2) Net fleet value based on fleet value at purchase net of accumulated depreciation

3) Outstanding loan balance does not include capitalized costs

Fleet stats

Condensed income statement (in USD)

Select balance sheet items

7

4) LTV % is based on outstanding loan balance LESS restricted cash of \$250,000 per Vessel as per the Company's minimum liquidity requirement

Declining break-even TCEs

• At current market rates free cash flow and dividend payment capacity to increase significantly from 2024 onwards
• For illustration, average TCEs of \$20,000/day would generate c.\$16m FCF and a FCFE yield of over 20% in 2024

Source: Company estimates

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

In USD	YTD	Q2 2023
Operating revenue	7 019 155 , ,	7 019 155 , ,
Vessel voyage expenses	(415 696) ,	(415 696) ,
Vessel operating expenses	(2 578) 654 , ,	(2 578) 654 , ,
Administrative expenses	(687 152) ,	(552 129) ,
Other income	10 098 ,	10 098 ,
EBITDA	3 271 826 , ,	3 406 849 , ,
Depreciation	(1 417) 238 , ,	(1 417) 238 , ,
result (EBIT) Operating	2 033 409 , ,	2 168 432 , ,
Financial income	134 670 ,	120 024 ,
Financial expenses	(1 674) 094 , ,	(1 674) 094 , ,
(EBT) Profit before tax	1 073 405 , ,	1 193 783 , ,
Taxes	(12 548) ,	(12 548) ,
Profit and other comprehensive for the period income	060 857 1 , ,	181 235 1 , ,

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 June 2023 ('YTD')

Consolidated statement of financial position (unaudited)

In USD	30 Jun 2023
ASSETS
Non-current assets
Vessels	119 962 ,466 ,
Total non-current assets	119,962,466
Current assets
Trade and other receivables	4,680 677 ,
Cash and cash equivalent	6 ,431 143 ,
Total current assets	11,111,820
Total assets	131,074,287
EQUITY AND LIABILITIES
Equity
Share capital	13 072 672 , ,
Share premium	50 ,748 ,547
Retained earnings	060 857 1 , ,
Total equity	64,882,076
liabilities Non-current
Interest-bearing debt - non-current	54,873 ,562
Total liabilities non-current	54,873,562
liabilities Current
Interest-bearing debt - current	9 119 185 , ,
Trade and other payables	1 907 059 , ,
Accrued taxation	12 ,548
Deferred income	279 857 ,
Total liabilities current	11,318,649
Total and liabilities equity	131,074,287

Consolidated statement of cash flows (unaudited)

In USD	YTD
Profit for and other comprehensive income the period	073 405 1 , ,
Financial expenses	847 704 ,
Depreciation	1 238 417 , ,
Cash flow from operating activities before changes in working capital	3 159 526 , ,
Changes in working capital
trade and other receivables Increase in	(4 677) 680 , ,
in trade and other payables Increase	1 907 059 , ,
Deferred income	279 857 ,
Cash flow from operating activities	665 765 ,
of vessels Acquisition	(121 883) 200 , ,
received Interest	134 670 ,
Cash flow from investing activities	(121 213) 066 , ,
Proceeds from issue of shares	67 103 002 , ,
related Transaction costs	(3 783) 281 , ,
Proceeds from of debt issue	67 500 000 , ,
Borrowing costs	(1 439) 066 , ,
of debt Repayment	(2 500) 482 , ,
paid interest-bearing debt Interest on	(940 689) ,
Cash flow from financing activities	126 831 591 , ,
change in cash and cash equivalents Net	6 431 142 , ,
Cash and cash equivalents beginning of period at	-
Cash and cash equivalents end of period at	6 431 142 , ,