AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

ADS Maritime Holding

Annual Report Mar 10, 2023

8170_10-k_2023-03-10_96244324-dd18-48cb-b1f7-8834adbddd2d.pdf

Annual Report

Open in Viewer

Opens in native device viewer

2022

Annual Report

Contents

Board of directors 4
Directors` Report 5
Consolidated statement of
– comprehensive income 11
– fi nancial positi on 12
– cash fl ows 13
– changes in equity 14
Notes to the consolidated fi nancial statements 15
Parent Company unconsolidated statement of
– comprehensive income 29
– fi nancial positi on 30
– cash fl ows 31
– changes in equity 32
Notes to the Parent Company fi nancial statements 33
Independent auditor`s report 39
Contacts 43

Board of directors

Bjørn Tore Larsen

Chairman

Major shareholder of ADS Maritime Holding Plc, OSM Maritime Group, OSM Aviation Academy Group and Norse Atlantic ASA. Mr. Larsen is a Norwegian citizen and resides in Norway.

Bjørn Tore Larsen was appointed Chairman of the Board of Directors on 10 August 2018. As at 31 December 2022, he held 53,398,573 shares in the Company, equivalent to 75.20% of the outstanding shares in the Company, through controlling ownership of BT Larsen & Co Ltd and affiliated companies.

Mario Demetriades

Director and Deputy Chariman

Marios Demetriades is an experienced Financial Services professional with significant experience as a Non-Executive Director in various listed and private companies in the Banking, Infrastructure and Shipping industries. He previously served as the Minister of Transport, Communications and Works for the Republic of Cyprus from 2014 to 2018 and held various positions in the Accounting, Investment and Banking sectors. He is a qualified Chartered Accountant and Chartered Financial Analyst holder and a member of the CFA Institute, the Institute of Chartered Accountants in England and Wales and the Institute of Certified Public Accountants of Cyprus (ICPAC). Mr. Demetriades is a Cypriot citizen and resides in Cyprus.

Mr. Demetriades was appointed to the Board of Directors on 10 August 2018. As at 31 December 2022 he owns no shares in the Company.

Sofi Mylona Director

Sofi Mylona is a Partner in the Shipping Department of the law fi rm Scordis, Papapetrou & Co. LLC in Cyprus and has over 20 years experience as an advocate focusing on Shipping, Internati onal Trade and Banking. She studied law at the University of Leicester and the Bar Vocati onal Course at Holborn College, in the United Kingdom. She is a member of Lincoln's Inn, Inns of Court (Barrister at Law), the Cyprus Bar Associati on, WISTA Cyprus and WISTA Internati onal. Mrs. Mylona has served as member of the board of directors of various Cyprus registered shipping and other companies. Mrs. Mylona is a Cypriot citi zen and resides in Cyprus.

Mrs. Mylona was appointed to the Board of Directors on 21 August 2019. As at 31 December 2022 she owns no shares in the Company.

Lia Papaiacovou

Director & Company Secretary

Lia Papaiacovou has more than 20 years' experience in the mariti me industry and is currently the Head of Corporate and General manager of Shiphold Management Services Ltd and director of BT Larsen & Co Ltd. Mrs. Papaiacovou holds a degree in Business Administrati on, is a member of WISTA (Women's Internati onal Shipping and Trading Associati on) as well as being Chairperson and member of the PR Committ ee of the CSC (Cyprus Shipping Chamber) Events Committ ee. Mrs. Papaiacovou is a Cypriot citi zen and resides in Cyprus.

Mrs. Papaiacovou was appointed to the Board of Directors on 21 August 2019. As at 31 December 2022 she owns no shares in the Company.

1. Operati ons and market

ADS Mariti me Holding Plc is a shipping investment company established in 2018 and listed on the Euronext Growth Oslo Stock Exchange. The Company's strategy is to make counter-cyclical investments in quality ships bought at prices discounted to new building parity, as well as projects with long-term secured cashfl ow, low residual risk, and solid returns on equity. Since incorporati on of the Company in 2018 a total of USD 69.8 million has been paid to shareholders, including dividends of USD 18.8 million and return of capital of USD 51 million.

The principal acti viti es of ADS Mariti me Holding Plc (the "Parent Company") and its wholly owned subsidiaries (together, the "Company") during the period from 2018 to 2020 were operati ng three VLCC tankers, predominantly in the Middle East Gulf to Far East Asia spot market. During the latt er part of 2020 the Company sold all three vessels, locking in a signifi cant gain for shareholders compared to the vessel purchase prices.

Main developments during 2022.

The Company issued new share capital in July 2022 giving a net USD 9,9 million cash proceeds. The cash will be used for further investments and general business purpose.

New investments in 2022.

In Q2 2022 the Company subscribed for a 20% interest in a PLSA (Profi t and Loss Sharing Agreement) in a chartered-in VLCC trading in Navig8's VL8 pool for a fi rm period of 12 months and with an opti on period of an additi onal 12 months. The Company will receive its share of the earnings from the Vessel as it trades in the Pool and will be liable to pay its share of the fi xed ti me charter hire. The Vessel was delivered on charter May 2022. The Company also subscribed in a PLSA on similar terms for a 20% interest in a chartered-in scrubber-fi tt ed MR trading in Navig8's MR pool for a fi rm period of 36 months +/- 60 days,

delivery June.

In June 2022 the Company acquired a 5 % shareholding in AET Sea Shutt le AS and AET Sea Shutt le II AS, the owners of 4 modern shutt le tankers operati ng in the North Sea, mainly on long term charters to Equinor. Sellers were ADS Shipping Limited. The shares were acquired at a discount to valuati ons of the Vessels obtained from independent internati onal brokers. The acquisiti on is fi nanced by an interest-free sellers' credit repayable within 2 years.

In October 2022 the Company acquired a 10% share in United Overseas Products AS (UOG AS), owning two MR tankers. UOG Sparta delivered 26th October and will trade in the spot marked and UOG Oslo delivered 27th October and is also fi xed on a 2 year charter with an opti onal period of 12 months. The Company will act as disponent owner with primary responsibility for following up the owning companies' acti viti es related to the vessels.

The Company conti nues to evaluate investment opportuniti es in a range of vessel types and segments. The Company has a cash balance of USD 12.0 million at the end of 2022 which enables the Company to be in a positi on for further investments.

Management structure.

The administrati ve and corporate management of the Company has been provided by Arendals Dampskibsselskab AS. From July 2022 all corporate and management functi ons have been transferred to ADSMH Management AS, a 100% owned subsidiary of ASD Mariti me Holding Plc.

2. Financial review

2.1 Income statement

12 months 12 months 8 months
(In thousands of USD) 2022 2021 2020 2019 2018
Revenue 150 - 57 160 42 226 13 432
Net revenue¹ 150 - 42 978 20 047 7 907
Vessel operating days - - 776 885 417
TCE¹ per day (in USD) n/a n/a 55 362 22 653 18 962
Gain on vessel sales - - 5 763 - -
Operating profit/(loss) (703) (233) 23 088 1 674 903
Net profit/(loss) 1 957 (214) 19 554 (948) 102
EPS (in USD per share) 0.03 (0,01) 0.84 (0.04) 0.01
Dividend (in USD per share) - - 0.48 0.15 -
Total capital paid to shareholders¹ - 51 000 15 250 3 500 -
Cash flow from operations (446) 56 41 240 2 380 (2 595)
Net cash flow 7 273 (50 990) 50 373 (8 381) 13 689
Cash and cash equivalents 11 966 4 693 55 682 5 309 13 689
Equity ratio 59% 98% 98% 52 % 61 %

2.2 Income statement

Following the vessel sales at the end of 2020 the Company had no revenue generati ng vessels during 2022 and revenue reported in 2022 are from various fees from services. Total operati ng costs in 2022 were USD 0.852 million (2021: USD 0.233 million). The Company had a net fi nancial income of USD 2.7 million in 2022 (2021: USD 0.2 million), mainly related to changes in fair value on fi nancial assets. The Company recorded a net profi t of USD 1.957 million during 2022 (2021: net loss of USD 0.215 million).

During 2021 the Company returned USD 51 million to shareholders by way of a capital payment, funded by the net proceeds from the vessels sales completed at the end of 2020.

2.3 Balance sheet

In July 2022 the Company issued 47 619 048 new shares with a USD 9.9 million net proceeds to the Company. The Company had gross assets of USD 28.0 million at 31 December 2022 (2021: USD 4.7 million), consisti ng mainly of investments in fi nancial assets of USD 13.9 million (2021 – 0.0 million) and cash equivalents of USD 12.0 million (2021: USD 4.7 million).

The book value of equity at the yearend was USD 16.5 million, an increase of USD 11.8 million from USD 4.6 million at the end of 2021. The increase is due to MUSD 9,9 new share capital issued in July 2022.

Non-current liabiliti es increased to USD 10.9 million (2021: USD 0.0 million).

2.4 Cash fl ow

Net cash fl ow from operati ons was USD 0.4 million outf low (2021: infl ow USD 0.1 million). Cash from investi ng acti viti es was USD 12.6 million outf low in 2022 compared to net cash fl ow of nil in 2021. Cash fl ow from fi nancing acti viti es was a net infl ow in 2022 of USD 20.3 million (2021: outf low USD 51.0 million) due to a capital repayment to shareholders paid in 2021. Cash and cash equivalents held at 31 December 2022 totalled USD 12.0 million (2021: USD 4.7 million).

2.5 Dividends and allocati on of net profi ts

The Board proposes that the net profi t of USD 2.0 million recorded in the consolidated income statement in 2022 is transferred to retained earnings and that no dividend is declared for 2022.

2.6 Dividend and capital payments

The Company has declared the following dividends and capital payments since incorporation in 2018:

Financial period Total dividend/
capital payment
Dividend /capital
payment per share¹
Announced Ex-div date Payment date
2021 USD 51.0m USD 2.18 (NOK 18.48) 10 Dec 2020 22 Feb 2021 1 Mar 2021
Q3 2020 USD 4.0m USD 0.17 (NOK 1.54) 18 Nov 2020 23 Nov 2020 3 Dec 2020
Q2 2020 USD 4.3m USD 0.18 (NOK 1.60) 28 Aug 2020 1 Sep 2020 11 Sep 2020
Q1 2020 USD 7.0m USD 0.30 (NOK 2.86) 28 May 2020 4 Jun 2020 16 Jun 2020
Q4 2019 USD 2.0m USD 0.09 (NOK 0.79) 27 Feb 2020 10 Mar 2020 18 Mar 2020
Q2 2019 USD 0.5m USD 0.02 (NOK 0.19) 22 Aug 2019 4 Sep 2019 16 Sep 2019
Q1 2019 USD 1.0m USD 0.04 (NOK 0.37) 29 May 2019 12 Jun 2019 26 Jun 2019
USD 69.8m USD 2.98 (NOK )25.83)

¹ADS Maritime Holding Plc's functional and presentational currency is USD and all dividends announced by the Company are initially announced in total USD and estimated USD equivalents per share. As a result of the Company's shares being traded on Euronext Growth Oslo Stock Exchange all dividend payments are made in NOK based on an exchange rate secured by the Company between the date of announcing a dividend and the ex-div date.

2.7 Going concern

These financial statements have been prepared based on the assumption of going concern.

In July 2022 the Company issued new shares giving a net USD 9.9 million proceeds to the Company with the purpose of strengthening the Company's financial position for further expansion. The Company has during 2022 invested in 3 new projects.

2.8 2.8. Parent Company's unconsolidated financial statements

The Parent Company recorded a net profit of USD 1.9 million for the year (2021: net loss USD 0.7 million). The increase is due to profit from new investments. A dividend of USD 41.4 million was received from subsidiaries in 2021 and was booked against the carrying value of the investment in subsidiaries and no income from divided was recognized in the income statement in 2021. General and administrative

costs were USD 0.8 million (2021: USD 0.5 million), while net financial items were profit USD 2.6 million in 2022 (2021: nil USD). An impairment of USD 0.2 million was recognized on the Parent Company's investment in ADS Crude Holding AS in 2021.

The Board of Directors propose to transfer the net profit of USD 1.9 million to retained earnings. The Parent Company had gross assets at 31 December 2022 totaling USD 27.9 million (2021: USD 4.7 million), of which USD 17,5 million (2021: USD 3.5 million) are noncurrent assets and USD 10.6 million (2021: USD 1.2 million) current assets. The increase in non-current assets is due to new investments in other shares and financial instruments. The Parent Company's book equity was at yearend 2022 USD 16.6 million (2021: USD 4.7 million).

3. Financial risks

The Company's primary fi nancial risks relate to market risk, credit risk and liquidity risk. The Company's principal fi nancial liabiliti es are long term debt related to the investment in AET shares, as well as trade and other payables. The Company's principal fi nancial assets are investments in shares, fi nancial instruments and cash.

The table below shows the carrying value of the Company's fi nancial assets and liabiliti es.

(In thousands of USD) 31-Dec-22 31-Dec_21
Financial assets
Non-current fi nancial assets
Financial assets at fair value through profi t or loss 13 317 -
Other non-current fi nancial assets 545 -
Current fi nancial assets
Financial assets at fair value through profi t or loss - current porti on 630
Other current assets 1 135 43
Cash and cash equivalents 11 966 4 693
Total fi nancial assets 27 592 4 736
Financial liabiliti es
Non-current liabiliti es
Lease liability 329
Long term-loan 10 561
Current liabiliti es
Lease libility - current 47
Other current liabiliti es 339 75
Trade payables 179 32
Total fi nancial liabiliti es 11 454 107
Net current fi nancial assets/(liabiliti es) 13 166 4 629
Net current and non-current fi nancial assets/(liabiliti es) 16 138 4 629

3.1 Interest rate risk

The Company has no interest-bearing liabiliti es and is not exposed to interest rate risk.

3.2 Foreign exchange risk

The Company operates in the global shipping industry, for which the majority of transacti ons are denominated in US dollars, the Company's functi onal and presentati onal currency. The majority of the Company's administrati on costs are denominated in Norwegian kroner.

As at 31 December 2022 the Company had cash and cash equivalents denominated in

Norwegian kroner that had a carrying value of USD 0.9 million (2021: USD 0.3 million) and in Euros of USD 0.0 million (2021: USD 0,1 million). Material porti on of the Company`s personnel expenses and G&A expenses are denominated in NOK. Financial assets and liabiliti es of the Company at 31 December 2021 are denominated in US dollars and, hence, the Company's maximum exposure to foreign exchange risk is limited to the above expenses.

3.3 Credit risk

Credit risk is the risk that a counterparty defaults on its contractual obligati ons, resulti ng in a fi nancial loss to the Company. The Company is exposed to credit risk primarily from receivables from customers and cash held at banks. The Company manages its credit risk related to customers by aiming to provide services only to reputable customers. As at 31 December 2022 the Company has no customer receivables (2021- USD 0.0 million). The Company had other receivables related to investments at 31 December 2022 of USD 1.5 million.

The Company aims to manage its counterparty risk relati ng to cash held at bank by only holding deposits at recognizable internati onal banks. As at 31 December 2022 all of the Company's cash and cash equivalents and restricted cash was held with Nordea Bank.

3.4 Liquidity risk

Liquidity risk is the risk that the Company cannot meet its fi nancial obligati ons as they fall due.

The Company manages its risk of a shortage of funds by conti nuously monitoring maturity of its fi nancial assets and liabiliti es and using a cash fl ow forecasti ng tool that makes projecti ons about future cash fl ows from operati ng acti viti es and required for investi ng acti viti es.

4. People and the organizati on

The Company's registered offi ce is in Cyprus and its Norwegian subsidiary is based in Norway. The Company's operati onal perspecti ve is the global shipping market. The Company has employees both in Cyprus and Norway. The administrati ve and corporate management of the Company has been provided by Arendals Dampskibsselskab AS unti l 1 July 2022. From 1 July 2022 management has been employed by the Company. The Company has 4 fullti me and 2 part ti me employees. Two of the current four members of the Board of Directors are female.

5. Outlook

The Company's strategy is to make countercyclical investments in quality ships bought at prices discounted to new building parity as well as projects with long-term secured cashfl ow, low residual risk, and solid returns on equity. The Company conti nues to evaluate investment opportuniti es in a range of vessel types and segments. The Company has a cash balance of USD 12.0 million at the end of 2022 which enables the Company to be in a positi on for further investments.

Limassol, 9 March 2023

Bjørn Tore Larsen Chairman

Marios Demetriades Deputy Chairman

Sofi Mylona Lia Papaiacovou

Consolidated statement of comprehensive income

(In thousands of USD) Note 2022 2021
Revenue
Other income 2,13 150 -
Total revenue 150 -
Operati ng expenses
Vessel operati ng expenses 270
Personell cost 5,13 (343) (8)
General & administrati ve costs 6,13 (480) (495)
Depreciati on 11 (29) -
Total operati ng expenses (852) (233)
Operati ng (loss)/profi t (703) (233)
Finance cost 9 (316) (45)
Finance income 9 2 975 64
(Loss)/Profi t before tax 1 957 (214)
Income tax - -
Profi t/(Loss) aft er tax and total comprehensive income 1 957 (214)
(In USD)
Earnings per share att ributable to equity holders
- Basic and diluted
7 0.03 (0.01)

Consolidated statement of financial position

(In thousands of USD) Note 2022 2021
Assets
Non-current assets
Right-of-use assets 11 376
Financial assets at fair value through profit or loss 8,10 13 317
Other non-current assets 8,10 545
Total non-current assets 14 237
Current assets
Financial assets at fair value through profit or loss – current 8,10 630 -
Other current assets 8 1 135 43
Cash and cash equivalents 3,8 11 966 4 693
Total current assets 13 731 4 736
Total assets 27 968 4 736
Equity and liabilities
Equity
Issued share capital 14 202 4 678
Share premium 207 207
Other issued share capital 410
Retained earnings 1 696 (256)
Total equity 16 514 4 629
Non-current liabilities
Lease liability 8,11 329
Long term loan 8,12,13 10 561 -
Total non-current liabilities 10 890 -
Current liabilities
Lease liability 8,11 47
Other current liabilities 8 339 75
Trade payables 8,13 179 32
Total current liabilities 565 107
Total liabilities 11 454 107
Total equity and liabilities 27 968 4 736

Consolidated statement of cash fl ows

(In thousands of USD) Note 2022 2021
Cash fl ow from operati ng acti viti es
Profi t for the period 1 957 (215)
Adjustment for non-operati ng cash fl ow items
Depreciati on 29 -
Impairment -
Fair value adjustment 10 (1 386)
Interest expense 9 288 45
Interest income 9 (155) -
Operati ng cash fl ow before working capital items 734 (170)
Working capital movements (1 180) 226
Total operati ng cash fl ow (446) 56
Cash fl ow from investi ng acti viti es
Investment in subsidiaries
Investment in Financial assets at fair value (12 560)
Change in intercompany receivables - -
Dividend and capital received - -
Total cash fl ows from investi ng acti viti es (12 560) -
Cash fl ow from fi nancing acti viti es
Proceeds from share issue 9 935
Proceeds from loan 10 281
Lease payments (35) -
Interest paid (2) (45)
Interest recived 155
Decrease/(increase) in restricted cash - -
Dividends and capital paid (51 000)
Total cash fl ow used in fi nancing acti viti es 20 334 (51 045)
Eff ect of foreign currency revaluati on on cassh (56)
Net increase in cash and cash equivalents 7 273 (50 990)
Cash and cash equivalents at beginning of period 4 693 55 682
Cash and cash equivalents at end of period 3 11 966 4 693

Consolidated statement of changes in equity

(In thousands of USD apart from number of shares) Number of Issued share Share Retained Total
shares capital premium earnings equity
Balance at 1 January 2021 23 390 300 4 678 51 207 (42) 55 844
Total comprehensive loss for the period - - - (214) (214)
Dividends paid during the period - - (51 000) (51 000)
Balance at 31 December 2021 23 390 300 4 678 207 (256) 4 629
(In thousands of USD apart
from number of shares)
Number of
shares
Issued share
capital
Share
premium
Other issued
share capital
Retained
earnings
Total
equity
Balance at 1 January 2022 23 390 300 4 678 207 (256) 4 629
Issue if share capital
7/7/2022 at NOK 2,10 per share
-
47 619 048
-
9 524
- 410 9 934
Total comprehensive income for the period
Currency translation and other effects
- - 1 957
(6)
1 957
(6)
Balance at 31 December 2022 71 009 348 14 202 207 410 1 696 16 514

At 31 December 2022 the nominal value of the Company's authorized share capital is USD 1,000 million, consisting of 1,000,000,000 shares of par value USD 0.20 each, of which the Company has issued 71 009 348 shares with total share capital USD 14.2 million.

Notes to the consolidated fi nancial statements

1. General informati on

These consolidated fi nancial statements of ADS Mariti me Holding Plc ("ADS Mariti me Holding" or the "Company") were authorized for issue in accordance with a resoluti on of the Board of Directors passed on 9 March 2023. ADS Mariti me Holding Plc is a public limited company listed on the Euronext Growth at the Oslo Stock Exchange. The Company is incorporated in Cyprus and the address of its registered offi ce is OSM House, 22 Amathountos, 4532 Agios Tychonas, Limassol, Cyprus. The Company is domiciled in Cyprus and has a Norwegian subsidiary based in Arendal, Norway. The principal acti viti es of the Company are shipping investments.

2. Signifi cant accounti ng policies

2.1 Basis of preparati on

These fi nancial statements are prepared in accordance with Internati onal Financial Reporti ng Standards (IFRS) as issued by the Internati onal Accounti ng Standards Board (IASB) and as adopted by the EU.

2.2 Going concern

These fi nancial statements have been prepared based on the assumpti on of going concern.

2.3 Revenue recogniti on

Revenue is recognized when a contractual performance obligati on is sati sfi ed by transferring a promised good or service to a customer.

2.4 Leasing

The Company assesses whether a contract is or contains a lease, at incepti on of the contract. The Company recognizes a right-ofuse ("ROU") asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for shortterm leases (defi ned as leases with a lease term of 12 months or less) and leases of low

value assets. For these leases, the Company recognizes the lease payments as an operati ng expense on a straight-line basis over the term of the lease unless another systemati c basis is more representati ve of the ti me patt ern in which economic benefi ts from the leased assets are consumed.

The lease liability is initi ally measured at the present value of the lease payments that are not paid at the commencement date, discounted using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. The lease liability is subsequently measured by increasing the carrying amount to refl ect interest on the lease liability (using the eff ecti ve interest method) and by reducing the carrying amount to refl ect the lease payments made. The lease liability is presented as a separate line in the consolidated statement of fi nancial positi on. All variable lease payments, that are payable based on actual uti lizati on of the underlying asset, are excluded from the calculati on of lease liability. All variable lease payments are expensed to the statement of comprehensive income during the period to which such variable payments relate to.

The ROU assets comprise the initi al measurement of the corresponding lease liability, lease payments made at or before the commencement day less any lease incenti ves received and any initi al direct costs. They are subsequently measured at cost less accumulated depreciati on and impairment losses.

ROU assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depreciati on starts at the commencement date of the lease. The Company applies IAS 36 to determine whether a ROU is impaired and accounts for any

identified impairment loss in its consolidated statement of comprehensive income.

2.5 Financial instruments

Financial assets and liabilities are recognized when the Company becomes party to the contractual obligations of the instrument and are initially recognized at fair value, except trade receivables that are measured at transaction price if the trade receivables do not contain a significant financing component. At 31 December 22, the Company holds financial instruments measured at amortized cost and financial assets at fair value through profit and loss. The classification depends on the characteristics of the financial assets and financial liabilities and the purpose for which they were acquired. The Management determines the classification of its financial instruments at initial recognition. Debt instruments are subsequently measured at amortized cost. Subsequent to initial measurement, financial assets and liabilities are classified as per below.

Financial assets and liabilities measured at amortized cost

This category is the most relevant for the Company and includes lease liabilities, borrowings, trade payables and other financial assets and liabilities with fixed or determinable payments that are not quoted in an active market. Financial assets and liabilities in this category are initially recognized at fair value, net of directly attributable transaction costs. After initial measurement financial assets and liabilities in this category are subsequently carried at amortized cost using the effective interest rate (EIR) method, less any allowance for impairment. The EIR amortization is included in finance income for receivables and finance cost for borrowings. Losses arising from impairment of accounts receivable are recognized in operating expenses.

The Company derecognizes a financial liability only when the Company's obligations are discharged, cancelled or expire.

Loan fees

Expenses that are directly attributable to the inception of a loan are capitalized and amortized over the term of the relevant loan using the effective interest rate method. Amortization of loan costs are included as finance costs in the income statement. The capitalized but unamortized amount of such loan costs are recorded net of the loan liability in the statement of financial position. On derecognition of a loan as a financial liability any previously unamortized loan fees are expensed in full.

Financial assets and liabilities measured at fair value through profit or loss

This includes the financial assets and liabilities measured at fair value upon initial recognition with change in fair value recognized through the consolidated income statement. Subsequent to initial recognition, financial assets and liabilities in this category are measured at fair value at the end of each reporting period with unrealized gains and losses being recognized through profit or loss. As at 31 December 2022 the Company have forward contracts and equity instruments that are measured at fair value through profit or loss.

Derivative financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. Forward

contracts are initi ally recognized at fair value on the transacti on date and subsequently measured at their fair value.

Forward contracts are classifi ed within the category 'fi nancial assets at fair value through profi t or loss' as long as the derivati ves are not designated as hedging instruments for accounti ng purposes.

2.6 Impairment of fi nancial assets

The consolidated enti ty recognises a loss allowance for expected credit losses on fi nancial assets which are either measured at amorti sed cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated enti ty's assessment at the end of each reporti ng period as to whether the fi nancial instrument's credit risk has increased signifi cantly since initi al recogniti on, based on reasonable and supportable informati on that is available, without undue cost or eff ort to obtain.

Where there has not been a signifi cant increase in exposure to credit risk since initi al recogniti on, a 12-month expected credit loss allowance is esti mated. This represents a porti on of the asset's lifeti me expected credit losses that is att ributable to a default event that is possible within the next 12 months. Where a fi nancial asset has become credit impaired or where it is determined that credit risk has increased signifi cantly, the loss allowance is based on the asset's lifeti me expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anti cipated cash shortf alls over the life of the instrument discounted at the original

eff ecti ve interest rate.

2.7 Fair value measurement

When an asset or liability, fi nancial or non-fi nancial, is measured at fair value for recogniti on or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transacti on between market parti cipants at the measurement date; and assumes that the transacti on will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumpti ons that market parti cipants would use when pricing the asset or liability, assuming they act in their economic best interests. For nonfi nancial assets, the fair value measurement is based on its highest and best use. Valuati on techniques that are appropriate in the circumstances and for which suffi cient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabiliti es measured at fair value are classifi ed into three levels, using a fair value hierarchy that refl ects the signifi cance of the inputs used in making the measurements. Classifi cati ons are reviewed at each reporti ng date and transfers between levels are determined based on a reassessment of the lowest level of input that is signifi cant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal experti se is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

2.8 Consolidation

The The consolidated financial statements comprise the financial statements of ADS Maritime Holding Plc (the "Parent Company") and its subsidiaries (together, the "Company"). All of the subsidiaries in the group are 100% owned by the Parent Company and, thus, there are no minority ownership interests.

Subsidiaries are all those entities over which the Parent Company has control. The Parent Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Parent Company. They are de-consolidated from the date that control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the Parent Company, using the same accounting policies. All intercompany transactions and balances are eliminated upon consolidation of the financial statements.

2.9 Foreign currency translation

The functional and presentational currency of the Company is US dollar. The functional and presentational currency of the Parent Company and all subsidiaries is US dollar.

Income and expenses denominated in foreign currencies are translated into US dollar at the exchange rates prevailing at the dates of the transactions. Exchange gains and losses resulting from settlement of such transactions as well as from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement as finance income and finance costs.

From 1 January 2022 ADSMH Management AS (former ADS Crude Holding AS) changed functional currency from USD to NOK.

2.10 Cash and cash equivalents

Cash and cash equivalents consist of cash deposits held at call with banks. Cash and cash equivalents that are restricted for the Company's use are disclosed separately in the statement of financial position.

2.11 Share capital

Shares are classified as equity. Incremental costs directly attributable to the issue of new shares are recorded in equity as a reduction from the gross share issue proceeds.

2.12 Earnings per share

Basic earnings per share is calculated based on the net profit attributable to ordinary shareholders for the period divided by the weighted average number of shares in issue. The Company has no potentially dilutive equity instruments in issue.

2.13 Consolidated statement of cash flows

The Company's statement of cash flows is prepared using the indirect method. Cash flows are divided into cash flows attributable to either operating activities, investing activities

or fi nancing acti viti es. In the cash fl ow statement, net profi t for the period is adjusted for non-cash items recorded in the income statement, such as depreciati on, as well as for non-cash movements in working capital. Any cash fl ows that have been recorded initi ally in the income statement as part of net profi t but which are investi ng or fi nancing in nature are removed from operati ng cash fl ows and presented as part of investi ng of fi nancing cash fl ows. All amounts presented in the investi ng acti viti es and fi nancing acti viti es secti ons are pure cash fl ows only.

2.14 Dividends

Dividends payable or paid to shareholders are recognized when declared during the fi nancial year and are no longer at the discreti on of the Company.

2.15 Income tax

The Parent Company is subject to income tax in Cyprus and the subsidiary is subject to income tax in Norway. In 2022 and 2021 no tax expenses were recognized for the Company, and there are no tax obligati ons. The Norwegian subsidiary has accumulated taxable defi cit in Norway that has not been recognized as deferred tax asset in the balance sheet.

2.16 Changes in accounti ng policies

There were no changes to accounti ng standards and amendments that the Company has applied for 2022 for the fi rst ti me and which had any signifi cant eff ect on the Company's fi nancial statements. Certain new standards, amendments and interpretati ons of existi ng standards have been published that are mandatory for the Company's accounti ng periods beginning 1 January 2022 or later.

None of the new standards, amendments and interpretati ons relevant for the Company are expected to have a signifi cant impact on the Company's fi nancial statements.

2.17 Criti cal accounti ng esti mates and judgments

The preparati on of the Company's consolidated fi nancial statements requires management and the board to make esti mates, judgments and assumpti ons that aff ect the reported amount of revenue, expenses, assets and liabiliti es, as well as the accompanying disclosures. Uncertainty about these esti mates, judgments and assumpti ons could result in outcomes that require a material adjustment to the carrying amounts of assets or liabiliti es in future periods. For the 2022 fi nancial statements there have been accounti ng esti mates or judgments that may impact the fi nancial statements as described below:

Fair value of fi nancial assets

The fair value of fi nancial instruments that are not traded in an acti ve market is determined by using valuati on techniques. The Company uses its judgment to select a variety of methods and make assumpti ons that are mainly based on market conditi ons existi ng at each reporti ng date.

3. Financial risk management

The Company's primary financial risks relate to market risk, credit risk and liquidity risk. Market risk is the risk that the fair value of future cash flows of a financial asset or liability will fluctuate because of changes in market prices, such as foreign exchange and interest rates. The Company's financial risk exposure is monitored by Management and its Board of Directors oversee the management of these risks.

Subsequent to repayment in full of the Company's non-current loans used to finance the Company's vessels that were sold in 2020, the Company's principal financial liabilities are trade and other payables. The Company's principal financial assets are customer receivables, other assets and cash deposits at banks.

The table below shows the carrying value of the Company's financial assets and liabilities.

(In thousands of USD) 31-Dec-22 31-Dec_21
Financial assets
Non-current financial assets
Financial assets at fair value through profit or loss 13 317 -
Other non-current financial assets 545 -
Current financial assets
Financial assets at fair value through profit or loss - current portion 630
Other current assets 1 135 43
Cash and cash equivalents 11 966 4 693
Total financial assets 27 592 4 736
Financial liabilities
Non-current liabilities
Lease liability 329
Long term-loan 10 561
Current liabilities
Lease libility - current 47
Other current liabilities 339 75
Trade payables 179 32
Total financial liabilities 11 454 107
Net current financial assets/(liabilities) 13 166 4 629
Net current and non-current financial assets/(liabilities) 16 138 4 629

3.1 Interest rate risk

The Company has no interest-bearing liabiliti es and is not exposed to interest rate risk.

3.2 Foreign exchange risk

The Company operates in the global shipping industry, for which the majority of transacti ons are denominated in US dollars, the Company's functi onal and presentati onal currency. The majority of the Company's operati ng costs are denominated in US dollars and Norwegian kroner.

As at 31 December 2022 the Company had cash and cash equivalents denominated in Norwegian kroner that had a carrying value of USD 0.9 million (2021: USD 0.3 million) and in Euros of USD 0.0 million (2021: USD 0,1 million). Material porti on of the Company`s personnel expenses and G&A expenses are denominated in NOK. Financial assets and liabiliti es of the Company at 31 December 2021 are denominated in US dollars and, hence, the Company's maximum exposure to foreign exchange risk is limited to the above expenses.

3.3 Credit risk

Credit risk is the risk that a counterparty defaults on its contractual obligati ons, resulti ng in a fi nancial loss to the Company. The Company is exposed to credit risk primarily from receivables from customers and cash held at banks. The Company manages its credit risk related to customers by aiming to provide services only to reputable customers. As at 31 December 2022 the Company has no customer receivables. The Company aims to manage its counterparty risk relati ng to cash held at bank by only holding deposits at recognizable internati onal banks. As at 31 December 2022 all of the Company's cash and cash equivalents and restricted cash was held with Nordea Bank which has an external credit rati ng of Aa3. The expected credit loss calculated is not material to the consolidated fi nancial statements.

(In thousands of USD) 31-Dec-22 31-Dec_21
Cash and cash equivalents 11 966 4 693

3.4 Liquidity risk

Liquidity risk is the risk that the Company cannot meet its fi nancial obligati ons as they fall due. The Company manages its risk of a shortage of funds by conti nuously monitoring maturity of its fi nancial assets and liabiliti es and using a cash fl ow forecasti ng tool that makes projecti ons about future cash fl ows from operati ng acti viti es and required for investi ng acti viti es. The Company has long-term debt that matures in full on 23 June 2024 with MUSD 11, 4 payable.

3.5 Capital management

The Company's objecti ves when managing capital are to maximize the return to shareholders through its investments, aiming to have an opti mal capital structure whereby it safeguards the Company's

ability to continue as a going concern but while returning excess liquidity to shareholders in the form of regular dividends. The management of the capital structure involves active monitoring and adjustments in light of changes in economic conditions and risk characteristics of the Company's investments.

4. Segment reporting

The chief operating decision maker currently reviews the Company's activities on a consolidated basis as one operating segment.

5. Employee benefits expences

The Company's registered office is in Cyprus and its Norwegian subsidiary is based in Norway. The Company's operational perspective is the global shipping market. The Company has employees both in Cyprus and Norway. The administrative and corporate management of the Company has been provided by Arenal's Dampskibsselskab AS until 1 July 2022. From 1 July 2022 management has been employed by the Company. The Company has 4 fulltime and 2 part time employees.

5.1 Wages and other personnel expenses.

(In thousands of USD) 2022 2021
Wages, salaries 280 8
Social security cost 40 -
Pension – defined constribution plan 21 -
Other personell costs 2
Total salaries and personell expense 343 8

5.2 Pensions

From July 1, 2022 the Company operates defined pension contribution plans in Norway. The defined pension contribution plans require the Company to pay premiums to a private administrative pension plan on a mandatory basis. The Company has no further obligations once these premiums are paid. The premiums are accounted for as personnel expenses as soon as they are incurred. Defined contribution plan in Norway complies with local Pension legislation.

6. General and administrati ve expenses

The statutory audit fee for the 2022 audit of ADS Mariti me Holding Plc and subsidiaries to RSM Cyprus Ltd and RSM Norway AS is approx. USD 17 000 plus VAT (2021: USD 16 000 plus VAT). In additi on, a fee for tax services provided of approx. USD 3 000 plus VAT is charged for 2022.

7. Earnings per share

The Company has no diluti ve or potenti al diluti ve shares.

(In thousands of USD) 2022 2021
Profi t/(loss) for the period
Weighted average shares outstanding
1 957
71 009 348
(215)
23 390 300
Basic and diluted EPS (USD per share) 0.03 (0.01)

8. Financial assets and liabiliti es

All of the Company's fi nancial assets and fi nancial liabiliti es are measured at amorti zed cost or at fair value through profi t or loss.

The fair values of the Company's fi nancial assets and liabiliti es are summarized in the table below.

31-Dec-22 31-Dec-21
(In thousands of USD) Carrying
value
Fair
value
Carrying
value
Fair
value
Financial assets
Non-current fi nancial assets
Financial assets at fair value through profi t or loss 13 317 13 317
Other non-current fi nancial assets 545 545
Current fi nancial assets
Financial assets at fair value through profi t or loss -
current porti on
630 630
Other current assets 1 135 1 135 43 43
Cash and cash equivalents 11 966 11 966 4 693 4 693
Total fi nancial assets 27 592 27 592 4 736 4 736
31-Dec-22 31-Dec-21
(In thousands of USD) Carrying
value
Fair
value
Carrying
value
Fair
value
Financial liabilities
Non-current liabilities
Lease liability 329 329
Long term-loan 10 561 10 561
Current liabilities
Lease libility - current 47 47
Other current liabilities 339 339 75 75
Trade payables 179 179 32 32
Total financial liabilities 11 454 11 454 107 107

The fair values of receivables from customers, other current assets, restricted cash and cash and cash equivalents, other current liabilities and trade payables approximate their carrying values largely due to their short-term maturities. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques and makes assumptions that are based on market conditions existing at the reporting date. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted and unadjusted prices in active markets for identical assets or liabilities.

Level 2: other techniques for which inputs which have a significant impact on the fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

(In thousands of USD) Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss
Unlisted equity securities 12 560 12 560
Forward TC contracts 1 386 1 386
Total 0 0 13 946 13 946

9. Finance income and fi nance cost

(In thousands of USD) 31-Dec-22 31-Dec-21
Financial income
Gain on fi nancial assets at fair value through profi t or loss 2 785 -
Interest income 155 (0)
Realized forex exchange gain 64
Unrealized forex exchange gain 3 -
Other fi nancial income 33 -
Total fi nancial income 2 975 64
Financial cost
Loss on fi nancial assets at fair value through profi t or loss - -
Interest expenses (288) (44)
Realized forex exchange loss (27) (1)
Unrealized forex exchange loss - -
Other fi nancial cost - -
Total fi nancial cost (316) (45)

10. Financial assets at fair value through profi t and loss

(In thousands of USD) 31-Dec-22 31-Dec-21
Balance at 1 January -
Additi ons 12 560
Change in fair value 1 386
Balance at 31 December 13 946 0
Less non-current porti on 13 317
Current porti on 630

ADS Mariti me Holding Plc has entered into two TCP profi t and loss sharing contracts with Navig8 Inc. Profi t and loss split is calculated from the diff erence between the actual TCP hire rate in the period, relati ve to a reference TCP hire rate as agreed between the parti es. For ADS Mariti me Holding Plc the contracts cover 20% the total profi t and loss for the vessels. The contract on M.T. FPMC C MELODY was entered into on 12 April 2022 and has a durati on of 1 year plus 1 year opti on period. Working capital payment is booked as a short-term receivable of kUSD 337.

The contract on M.T. AYOE was entered into on 1 June 2022 and has a durati on of 3 years plus opti on period of +/- 60 days. Working capital payment is booked as a long-term receivable of kUSD 545

On 23 June 2022 the Company purchased 5% of the shares in each of the two companies AET Sea

Shuttle AS and AET Sea Shuttle II AS from ADS Shipping Ltd for USD 11,4 million not payable until 2 years after the transaction. Both companies are non-listed and each company owns two shuttle tankers.

On 5 October 2022 the Company purchased 10% of United Overseas Production AS, a non-listed company with two MR tankers for USD 2,4 million.

In the cash flow statement financial assets at fair value through profit or loss are presented within the section on operating activities as part of changes in working capital. In the statement of profit or loss and other comprehensive income, changes in fair value of financial assets through profit or loss are recorded in finance income.

11. Leasing

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use ("ROU") asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

Right of use assets
(In thousands of USD) Office premises
Initial measurement
Net present value of lease liabilities 406
Initial direct cost
Prepaid leases
Right of use assets at lease commencement 406
Depreciation 29
Balance as at 31-12-2022 376

The right-of-use asset relates to rented head office for ADSMH Management AS at Sandvigveien 19 in Arendal, Norway. The rental contract expires on 31 July 2029, and the RoU Asset is depreciated on a straight line basis until the expiration date of the lease.

Lease liabiliti es
(In thousands of USD) 31-12-2022
Initi al measurement 406
Lease payment during the period 23
Interest accrued -
Interest paid 6
Balance as at 31-12-2022 376
Of wich:
Due Within 12 months 47
Due within 36 months 329

The interest rate used to calculate the lease obligati on is 6,5% which is considered to be the alternati ve cost of fi nancing for the Company.

12. Long term debt

The Company received a seller credit on the purchase of a 5 % shareholding in AET Sea Shutt le AS and AET Sea Shutt le II AS in June 2022 from ADS Shipping Ltd. A total of USD 11,4 million is payable within two years from the acquisiti on. The seller credit is at zero interest rate and without collateral. The loan is recognized at fair value as of 31 December 2022 at carrying amount of USD 10,6 million and interest expense of USD 280k has been recognized in 2022.

13. Related parti es

13.1 Board of Directors

Directors
(In thousands of USD) Since To 2022 2021
Payments to Board of Directors
Bjørn Tore Larsen (Chairman) 10-Aug-18 - -
Marios Demetriades (Deputy Chairman) 10-Aug-18 14 14
Sofi Mylona 21-Aug-19 8 10
Lia Papaiacovou 21-Aug-19 - -
Total Board of Director fees 22 24

On 1 July 2022 the Company entered into an agreement for the lease of offi ces at Sandvigveien 19, Arendal. The lease contract was previously leased to Arendals Dampskibsselskab AS. The lease term is approximately 7 years from incepti on of the lease which is also the commencement date. There are no lease deposits or redelivery costs according to the lease contract.

Non-executi ve independent board members are enti tled to Board fees at the rate of EUR 7.5k per annum, while the Deputy Chairman positi on receives an additi onal EUR 2.5k per annum.

Lia Papaiacovou is a remunerated part-ti me employee of the Company.

MD Mindset Capital Ltd, a company controlled by Deputy Chairman Marios Demetriades, received fees for director services totaling EUR 10k in 2022 (2021: EUR 10k) and for consulti ng services of EUR 20k in 2022 (2021: EUR 20k). Scordis, Papapetrou & Co LLC, a company in which board member Sofi Mylona is a partner, received fees for director services totaling EUR 8k in 2022 (2021: EUR 8k) and for other legal services of EUR 3k in 2022 (2021: EUR 3k)

13.2 Key management personnel

The administrati ve and corporate management of the Company has been provided by Arendals Dampskibsselskab AS unti l 1 July 2022.

From 1 July the corporate management was transferred to ADSMH Management AS, and as part of this transfer ADSMH Management AS took over the offi ce lease contract from Arendals Dampskibsselskab AS at similar rental terms. ADSMH Management AS paid USD 36k for offi ce rental from 1 July 2022 to 31 Dec 2022.

13.3 Other related parti es

In 2022 Arendal Dampskibsselskab AS invoiced the Company a total fee of USD 63k for corporate management services provided in the period from 1 January to 1 July, when the management agreement was terminated. The Company has invoiced Arendal Dampskibsselskab AS USD 30k for services provided from 1 July to 31 December. As of 31 December 2022 the Company has payables towards Arendals Dampskibsselskab AS of USD 0k (2021: 2k).

The Company has a long-term loan from ADS Shipping Ltd due to seller credit on the Company`s purchase of 5% of the shares in each AET Sea Shutt le AS and AET Sea Shutt le II AS. ADS Shipping Ltd is controlled by Bjørn Tore Larsen. See note 12 for additi onal details.

14. Capital payment by way of share premium return

On 10 December 2020 shareholders passed a special resoluti on to make a USD 51 million capital repayment by way of a reducti on of the share premium account, subject to regulatory approval in Cyprus. On 16 February 2021 the District Court of Limassol, Cyprus approved the USD 51 million reducti on of the share premium account. The payment was made in NOK to all shareholders of ADS Mariti me Holding Plc on 1 March 2021

15. Events aft er the reporti ng period

On 3 January 2023 Anders Hall Jomaas was appointed as the new CFO of ADS Mariti me Holding Plc, replacing Dagfi nn Andersen.

Limassol, 9 March 2023

The Board of Directors

Bjørn Tore Larsen Chairman

Marios Demetriades Deputy Chairman

Sofi Mylona Lia Papaiacovou

Parent Company unconsolidated statement of comprehensive income

(In thousands of USD) Note 2022 2021
Revenue 117 -
Operati ng expenses
Personnel expenses (6) (8)
General & administrati ve costs 9 (787) (473)
Total operati ng expenses (793) (481)
Operati ng profi t (676) (481)
Finance cost 6 (288) (3)
Finance income 6 2 895 3
Impairment (225)
Profi t/(Loss) before tax 1 930 (706)
Income tax - -
Profi t/(Loss) aft er tax and total comprehensive income 1 930 (706)

Parent Company unconsolidated statement of fi nancial position

(In thousands of USD) Note 31-Dec-22 31-Dec-21
Assets
Non-current assets
Investments in subsidiaries 5 3 528 3 528
Financial assets at fair value through profi t or loss 4,7 13 317
Other non-current assets 4,7 545
Total non-current assets 17 390 3 528
Current assets
Financial assets at fair value through profi t or loss - current porti on 4,7 630
Other current assets 4 1 091 59
Cash and cash equivalents 3,4 8 832 1 148
Total current assets 10 553 1 207
Total assets 27 942 4 735
Equity and liabiliti es
Equity
Issued share capital 14 202 4 678
Share premium 1 255 1 255
Other issued share capital 410
Retained earnings 704 (1 226)
Total equity 16 571 4 707
Non-current liabiliti es
Loan 4,8 10 761
Total non-current liabiliti es 10 761
Current liabiliti es
Trade payables 4 123 28
Other current liabiliti es 4 488
Total current liabiliti es 611 28
Total liabiliti es 11 372 28
Total equity and liabiliti es 27 942 4 735

Parent Company unconsolidated statement of cash fl ows

(In thousands of USD) 2022 2021
Cash fl ows from operati ng acti viti es
Profi t for the period 1 930 (706)
Adjustment for items not aff ecti ng operati ng cash fl ows:
Decreciati on 1
Impairment -
Fair value gain/(loss) on fi nancial assets
7
1 386
Interest expences
6
282 225
Interest income
6
(114) -
Net operati ng cash fl ow before working capital movements 712 (480)
Working capital movements (994) 26
Total operati ng cash fl ow (282) (454)
Cash fl ows from investi ng acti viti es
Investment in subsidiaries
Investment in other shares
7
(12 560)
Investment in other fi nancial assets -
Investment in other assets -
Loans repaid by/(to subsidiaries) - -
Changes in inter-company receivables - -
Dividends received in cash from subsidiaries - 41 407
Total cash fl ows from investi ng acti viti es (12 560) 41 407
Cash fl ows from fi nancing acti viti es
Proceeds from share issues 9 935
Proceeds from loan
8
10 281
Repayment of loan - -
Interest paid (3) (1)
Interest received 114 -
Dividends and capital paid (51 000)
Total cash fl ows used in fi nancing acti viti es 20 327 (51 001)
Eff ect of foreign currency revaluati on on cash 198
Net increase in cash and cash equivalents 7 683 10 048
Cash and cash equivalents at the beginning of the period 1 149 11 197
Cash and cash equivalents at the end of the period
3
8 832 1 149

Parent Company unconsolidated statement of changes in equity

(In thousands of USD apart from number of shares) Number Issued share Share Retained Total
of shares capital premium earnings equity
Balance 1 January 2021 23 390 300 4 678 52 255 2 411 59 344
Total comprehensive income for the period - - - (706) (706)
Repayment of share premium - - (51 000) (51 000)
Balance at 31 December 2021 23 390 300 4 678 1 255 (1 226) 4 707
(In thousands of USD apart
from number of shares)
Number of
shares
Issued share
capital
Share
premium
Other issued
share capital
Retained
earnings
Total
equity
Balance 1 January 2022 23 390 300 4 678 1 255 (1 226) 4 707
Issue if share capital - - -
7/7/2022 at NOK 2,10 per share 47 619 048 9 524 410 9 934
Total comprehensive income for the period - - 1 930 1 930
Balance at 31 December 2022 71 009 348 14 202 1 255 410 704 16 571

At 31 December 2022 the nominal value of the Company's authorized share capital is USD 1,000 million, consisti ng of 1,000,000,000 shares of par value USD 0.20 each, of which the Company has issued 71,009,348 shares with total share capital USD 14.2 million.

Notes to the Parent Company unconsolidated financial statements

1. General information

ADS Maritime Holding Plc (the "Parent Company") is a holding company. The Parent Company's activities are investing in subsidiaries, including ownership of shares in subsidiaries and provision of intercompany financing.

2. Significant accounting policies

2.1 Basis of preparation

These financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as adopted by the EU.

The Parent Company's accounting principles are consistent with the accounting principles of the Company, as described in Note 2 of the consolidated financial statements, apart from as described below. Note disclosures that are similar to the information available in the consolidated financial statements are not repeated in these unconsolidated financial statements.

2.2 Investments in subsidiaries

Investments in subsidiaries are presented at cost, less any impairment. To assess for impairment, the estimated recoverable amount is compared to the carrying value of investments in subsidiaries. The recoverable amount is calculated as the discounted estimated future cash flows.

2.3 Critical accounting estimates and judgments

Impairment of investment in subsidiaries

The Parent Company periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment are present. If facts and circumstances indicate that investment in subsidiaries may be impaired, the estimated future discounted cash flows associate with these subsidiaries would be compared to their carrying amounts to determine if a write-down is necessary.

Impairment of financial assets

The loss allowance for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, by considering supportive forward-looking information. The main financial assets that are subject to the expected credit loss model relate to receivables from related parties, including loans receivable.

3. Financial risk management

The Parent Company's primary financial risks are consistent with the financial risks of the Company, as described in Note 3 of the consolidated financial statements, apart from as described on the next page.

Credit risk

Credit risk is the risk that a counterparty defaults on its contractual obligati ons, resulti ng in a fi nancial loss to the Company. The Company is exposed to credit risk primarily from cash held at bank as summarized in the table below.

(In thousands of USD) 31-Dec-22 31-Dec-21
Cash and cash equivalents 8 832 1 148
Total fi nancial assets 8 832 1 148

4. Financial assets and liabiliti es

All of the Company's fi nancial assets and fi nancial liabiliti es are measured at amorti zed cost. The fair values of the Company's fi nancial assets and liabiliti es are summarized in the table below.

(In thousands of USD) 31-Dec-22 31-Dec-21
Financial assets
Non-current fi nancial assets
Financial assets at fair value through profi t or loss 13 317
Other non-current fi nancial assets 545
Current fi nancial assets
Financial assets at fair value through profi t or loss - current porti on 630
Other current assets 1 091
Cash and cash equivalents 8 832 1 148
Total fi nancial assets 24 414 1 148
Financial liabiliti es
Non-current liabiliti es
Long term-loan 10 761
Current liabiliti es
Other current liabiliti es 410
Trade payables 704 28
Total fi nancial liabiliti es 11 874 28
Net current fi nancial assets/(liabiliti es) 9 439 1 120
Net current and non-current fi nancial assets/(liabiliti es) 12 540 1 120

The fair values of receivables from subsidiaries, cash and cash and cash equivalents, other current liabilities and trade payables approximate their carrying values largely due to their short-term maturities.

31-Dec-22 31-Dec-21
(In thousands of USD) Carrying
value
Fair
value
Carrying
value
Fair
value
Financial assets
Non-current financial assets
Financial assets at fair value through profit or loss 13 317 13 317
Other non-current financial assets 545 545
Current financial assets
Financial assets at fair value through profit or loss -
current portion
630 630
Other current assets 1 135 1 135 43 43
Cash and cash equivalents 11 966 11 966 4 693 4 693
Total financial assets 27 592 27 592 4 736 4 736
Financial liabilities
Non-current liabilities
Long term-loan 10 761 10 761
Current liabilities
Other current liabilities 410 410 0 0
Trade payables 704 704 28 28
Total financial liabilities 11 874 11 874 28 28

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted and unadjusted prices in active markets for identical assets or liabilities.

Level 2: other techniques for which inputs which have a significant impact on the fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

31-Dec-22
(In thousands of USD) Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss
Unlisted equity securities 12 560 12 560
Forward TC contracts 1 386 1 386
Total 0 0 13 946 13 946

5. Investment in subsidiaries

The table below shows all subsidiaries the Parent Company owns directly and indirectly.

Carrying value
(In thousands of USD) Country of
incorporation
Equity interest
31-Dec-20
31-Dec-22 31-Dec-22
Name of subsidiary
ADS Crude Holding AS
Norway 100% 3 528 3 528
Total - - 3 528 3 528

The subsidiary changed name in 2022 from ADS Crude Holding AS to ADSMH Management AS.

The table below shows the movement in the carrying value of the Parent Company's investments in subsidiaries during the Period.

(In thousands of USD) 2022 2021
Carrying value
Investments at start of period 3 528 45 160
Dividend from subsidiary - (41 407)
Impairment - (225)
Total at end of period 3 528 3 528

During 2021 ADS Crude I AS, ADS Crude II AS and ADS Crude III AS were all liquidated and remaining net assets transferred to their parent company, ADS Crude Holding AS. ADS Crude Holding AS declared a dividend of USD 41.4 million to ADS Maritime Holding Plc in 2021. An impairment of USD 0.2 million was recognized on the Parent Company's investment in ADS Crude Holding AS.

6. Finance income and finance costs

(In thousands of USD) 31-Dec-22 31-Dec-21
Financial income
Gain on financial assets at fair value through profit or loss - -
Interest income 109 3
Realized forex exchange gain 5 -
Unrealized forex exchange gain (4) -
Other financial income 2 785 -
Total financial income 2 895 3
Financial cost
Loss on financial assets at fair value through profit or loss - -
Interest expenses (281) (3)
Realized forex exchange loss (1) -
Unrealized forex exchange loss (6) -
Other financial cost - -
Total financial cost (288) (3)

7. Financial assets at fair value through profit and loss

(In thousands of USD) 31-Dec-22 31-Dec-21
Balance at 1 January
Additions 12 560 -
Capital reduction
Change in fair value 1 386 -
Exchange differences
Balance at 31 December 13 946 0
Less non-current portion 13 317
Current portion 630

ADS Maritime Holding Plc has entered into two TCP profit and loss sharing contracts with Navig8 Inc. Profit and loss split is calculated from the difference between the actual TCP hire rate in the period, relative to a reference TCP hire rate as agreed between the parties. For ADS Maritime Holding Plc the contracts cover 20% the total profit and loss for the vessels.

The contract on M.T. FPMC C MELODY was entered into on 12 April 2022 and has a duration of 1 year plus 1 year option period. Working capital payment is booked as a short-term receivable of kUSD 337.

The contract on M.T. AYOE was entered into on 1 June 2022 and has a durati on of 3 years plus opti on period of +/- 60 days. Working capital payment is booked as a long-term receivable of kUSD 545

On 23 June 2022 the Company purchased 5% of the shares in each of the two companies AET Sea Shutt le AS and AET Sea Shutt le II AS from ADS Shipping Ltd for USD 11,4 million not payable unti l 2 years aft er the transacti on. Both companies are non-listed and each company owns two shutt le tankers.

On 5 October 2022 the Company purchased 10% of United Overseas Producti on AS, a non-listed company with two MR tankers for USD 2,4 million.

In the cash fl ow statement fi nancial assets at fair value through profi t or loss are presented within the secti on on operati ng acti viti es as part of changes in working capital. In the statement of profi t or loss and other comprehensive income, changes in fair value of fi nancial assets through profi t or loss are recorded in fi nance income.

8. Long term debt

The Company received a seller credit on the purchase of a 5 % shareholding in AET Sea Shutt le AS and AET Sea Shutt le II AS in June 2022 from ADS Shipping Ltd. A total of USD 11,4 million is payable within two years from the acquisiti on. The seller credit is at zero interest rate and without collateral. The loan is recognized at fair value as of 31 December 2022 at carrying amount of USD 10,6 million and interest expense of USD 280k has been recognized in 2022.

9. Payments to auditor

The statutory audit fee for the 2022 audit of ADS Mariti me Holding Plc to RSM Cyprus Ltd and RSM Norway AS is approx. USD 14 000 plus VAT (2021: USD 14 000 plus VAT). In additi on, a fee for tax services provided of approx. USD 500 plus VAT is charged for 2022

10. Events aft er the reporti ng period

On 3 January 2023 Anders Hall Jomaas was appointed as the new CFO of ADS Mariti me Holding Plc, replacing Dagfi nn Andersen.

Limassol, 9 March 2023

The Board of Directors

Sofi Mylona Lia Papaiacovou

Bjørn Tore Larsen Chairman

Marios Demetriades Deputy Chairman

RSM Cyprus Ltd

131, Gladstonos Street Kermia Court, 2nd Floor 3317 Limassol, Cyprus

T. +357 25 204 000 F. +357 25 761 146

Independent Auditor's Report

To the Members of ADS Maritime Holding Plc

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of parent company ADS Maritime Holding Plc (the ''Company'') and its subsidiaries (the ''Group''), which are presented in pages 12 to 29 and comprise the consolidated statement of financial position as at 31 December 2022, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

We have also audited the Company's unconsolidated financial statements which are presented in pages 30 to 39 and comprise the unconsolidated statement of financial position as at 31 December 2022, and the unconsolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the unconsolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated and unconsolidated financial statements give a true and fair view of the consolidated and unconsolidated financial position of parent company ADS Maritime Holding Plc as at 31 December 2022, and of its consolidated and unconsolidated financial performance and its consolidated and unconsolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the ''Auditor's Responsibilities for the Audit of the Consolidated and unconsolidated Financial Statements'' section of our report. We are independent of the Group in accordance with the ''International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants'' (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated and unconsolidated financial statements in Cyprus, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

RSM Cyprus Limited is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.

Independent Auditor's Report (continued)

To the Members of ADS Maritime Holding Plc

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the Board of Directors' Report, but does not include the consolidated and unconsolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated and unconsolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated and unconsolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated and unconsolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors for the Consolidated and Unconsolidated Financial Statements

The Board of Directors is responsible for the preparation of consolidated and unconsolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated and unconsolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated and unconsolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated and Unconsolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated and unconsolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and unconsolidated financial statements.

Independent Auditor's Report (continued)

To the Members of ADS Maritime Holding Plc

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

  • Identify and assess the risks of material misstatement of the consolidated and unconsolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
  • Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated and unconsolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the consolidated and unconsolidated financial statements, including the disclosures, and whether the consolidated and unconsolidated financial statements represent the underlying transactions and events in a manner that achieves a true and fair view.
  • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated and unconsolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Other Legal Requirements

Pursuant to the additional requirements of the Auditors Law of 2017, we report the following:

  • In our opinion, the Board of Directors' Report has been prepared in accordance with the requirements of the Cyprus Companies Law, Cap 113, and the information given is consistent with the consolidated and unconsolidated financial statements.
  • In our opinion, and in the light of the knowledge and understanding of the Group and its environment obtained in the course of the audit, we have not identified material misstatements in the Board of Directors' Report.

Other Matter

This report, including the opinion, has been prepared for and only for the Group's members as a body in accordance with Section 69 of the Auditors Law of 2017 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whose knowledge this report may come to.

George Themistocleous Certified Public Accountant and Registered Auditor for and on behalf of RSM Cyprus Limited Certified Public Accountants and Registered Auditors Limassol, 09 March 2023

Cyprus

ADS Maritime Holding Plc OSM House, 22 Amathountos 4532 Agios Tychonas Limassol, Cyprus Tel +357 25335501

Norway

ADSMH Management AS PO Box 198 4802 Arendal, Norway Tel: +47 41 49 40 00

Visiting Address Norway Sandvigveien 19 4816 Kolbjørnsvik Norway

Email: [email protected]

www.adsmh.com

Talk to a Data Expert

Have a question? We'll get back to you promptly.