2019

Annual Report

Chairman's letter	3
Key partners	4
Fleet	5
Board of directors	6
Dividends	9
Share information	10
Board of directors' report	11
Consolidated statement of
– comprehensive income	21
– financial position	22
– cash flows	23
– changes in equity	24
Notes to the consolidated financial statements	25
Parent Company unconsolidated statement of
– comprehensive income	47
– financial position	48
– cash flows	49
– changes in equity	50
Notes to the Parent Company unconsolidated financial statements	51
Independent auditor's report	57
Contacts	64

Chairman's Letter

Dear fellow shareholders,

We established ADS Crude Carriers Plc in mid-2018 during a low point in the tanker market and 2019 is thus our first full year of operation.

During the past 12 months:

i. Our ships were upgraded with exhaust emissions cleaning systems (scrubbers) ahead of the implementation of IMO 2020;
ii. We maintained top-class (CAP-1) rating following dry dockings and intermediate surveys for all three of our vessels;
iii. And we delivered on our commitment to return earnings to shareholders in the form of quarterly dividends.

I write this letter at a time where a pandemic disease known as Covid-19 or the Corona virus has impacted the life of every person on the planet. Our immediate priority is the safety, health and wellbeing of all of our people and their families. Our seafarers have been significantly impacted as crew changes are for the time being not possible. I would like to thank both the crew who remain onboard for longer and the crew at home waiting to sign-on for their hard work, positive attitude and understanding.

I do not know what the long-term economic consequences of this virus will be, but short-term it is clear that it will have a major impact on the financial markets and world trade. This does not necessarily mean that the tanker market will be weak, as the supply and demand ratio of tankers is influenced by many factors, a number of which are dynamic and unpreditable, such as oil price and contango, storage, sanctions, and security issues. The VLCC market is volatile and, hence, hard to forecast.

If the market is to be strong over the next couple of years – as many market analysts have forecast – our Company will be well positioned to generate significant profits and cash flow. Our vessels have a low cash break-even and we will deliver all free cash back to our shareholders as dividends.

I am grateful to have you onboard as co-owners in ADS Crude Carriers Plc.

Bjørn Tore Larsen, Chairman

ADS Page

Vessel name: ADS Page Type: VLCC Yard: Hitachi Zosen Corporation, Japan Built: 2002 Delivery to ADS Crude Carriers: 20 July 2018 DTW: 299.164 MT LOA: 329,99 m Scrubber fitted

ADS Stratus

Vessel name: ADS Stratus Type: VLCC Yard: Hitachi Zosen Corporation, Japan Built: 2002 Delivery to ADS Crude Carriers: 14 August 2018 DTW: 299.157 MT LOA: 329.99 m Scrubber fitted

ADS Serenade

Vessel name: ADS Serenade Type: VLCC Yard: Hitachi Zosen Corporation, Japan Built: 2002 Delivery to ADS Crude Carriers: 13 September 2018 DTW: 299.152 MT LOA: 329,99 m Scrubber fitted

Key partners

Corporate Manager – Arendals Dampskibsselskab AS

The general and corporate management of the ADS Crude Carriers Plc group of companies is performed by Arendals Dampskibsselskab AS, a Norwegian shipping company founded in 1857, managing shipping and offshore investments on behalf of its shareholders and third parties.

Commercial Manager – Frontline Ltd

The Commercial management of the ADS Crude Carriers Plc Fleet is provided by Frontline Ltd, a global leading owner and operator of crude tankers with 35 years history, providing strong market presence.

Technical Manager – OSM Maritime Group

Technical management of the ADS Crude Carriers Plc Fleet is provided by OSM Maritime Group, a global vessel manager with more than 30 years of experience in ship, asset and crew management.

Board of directors

Bjørn Tore Larsen

Chairman

Controlling shareholder of Arendals Dampskibsselskap, OSM Maritime Group and OSM Aviation Group. Founded the OSM Group in 1989. Mr. Larsen is a Norwegian citizen and resides in Norway.

Mr. Larsen was appointed to the Board of Directors on 10 August 2018. As at 31 December 2019 he held 2,424,934 shares in the Company, equivalent to 10.4% of the Company, through controlling ownership of ADS Shipping 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 2019 he owns no shares in the Company

Trym Sjølie

Director

Trym Otto Sjølie is the Chief Operating Officer of SFL Corporation Ltd ("SFL") and has a background spanning over 25 years in the shipping industry in diverse capacities, ranging from asset management, technical and operational management, chartering and engineering. Mr. Sjølie holds a Master of Science degree in Marine engineering and Naval Architecture from the Norwegian University of Science and Technology (NTNU) and a Master of Management Degree from BI Norwegian Business School. Mr. Sjølie is a Norwegian citizen and resides in Norway.

Mr. Sjølie was appointed to the Board of Directors on 10 August 2018. He represents SFL, owner of 4,031,800 shares, or 17.2%, of the Company.

Sofi Mylona Director

Sofi Mylona is a Partner in the Shipping Department of the law firm Scordis, Papapetrou & Co. LLC in Cyprus and has over 20 years experience as an advocate focusing on Shipping, International Trade and Banking. She studied law at the University of Leicester and the Bar Vocational 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 Association, WISTA Cyprus and WISTA International. Mrs. Mylona has served as member of the board of directors of various Cyprus registered shipping and other companies. Mrs. Mylona is a Cypriot citizen and resides in Cyprus.

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

Lia Papaiacovou

Director & Company Secretary Lia Papaiacovou has more than 20 years' experience in the maritime 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 Administration, is a member of WISTA (Women's International Shipping and Trading Association) as well as being Chairperson a member of the PR Committee of the CSC (Cyprus Shipping Chamber) Events Committee. Mrs. Papaiacovou is a Cypriot citizen and resides in Cyprus.

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

in the Company.

Dividend history

Dividend policy

The Board of Directors (the "Board") aim to distribute dividends to shareholders for financial periods the Company generates sufficient net profits and has available excess cash.

When evaluating dividend distributions, the Board take into account the net profit and cash generated during the reported period, the underlying Company financial performance and market development post-period end, as well as expectations about the future and considering the Company's forecasted liquidity, investment plans, financing requirements and level of financial flexibility that the Board believes is appropriate for the Company.

Period	Total dividend	Dividend per share¹	Announced	Ex-div date	Payment date
Q3 2018	ADS Crude Carriers Plc established and agreements entered for purchase of first vessels.
Q4 2018	First full quarter of vessel operations.
Q1 2019	USD 1 million	USD 0.04 (NOK 0.37)	29 May 2019	12 Jun 2019	26 Jun 2019
Q2 2019	USD 0.5 million	USD 0.02 (NOK 0.19)	22 Aug 2019	4 Sep 2019	16 Sep 2019
Q3 2019	No dividend. All vessels in yard for upgrade.
Q4 2019	USD 2 million	USD 0.09 (NOK 0.79)	27 Feb 2020	10 Mar 2020	18 Mar 2020

¹ADS Crude Carriers 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 the Oslo Børs Merkur Markets all dividend payments will be in NOK based on an exchange rate secured by the Company between the date of announcing a dividend and the ex-div date.

Board of directors' report

ADS Crude Carriers was incorporated as a private limited liability company (ADS Crude Carriers Ltd) on 30 April 2018 and converted to a public limited company (ADS Crude Carriers Plc) on 10 August 2018. The principal activities of ADS Crude Carriers Plc (the "Parent Company") and its wholly owned subsidiaries (together, the "Company") are operating tanker vessels in the global tanker market. The Company owns and operates a fleet of three VLCCs: ADS Page, ADS Stratus and ADS Serenade.

First full year of operations following establishment of ADS Crude Carriers Plc mid-2018
Completion of vessel upgrades ahead of IMO 2020; total CAPEX investment USD 22.5 million, of which USD 12 million for exhaust emissions cleaning systems on all vessels, remainder for mandatory intermediate vessel surveys
Amendment of vessel loans, providing gross financing USD 7.5 million used towards
intermediate vessel surveys, as well as USD 7.5 million Revolving Credit Facility ("RCF") to provide greater working capital flexibility
Commencement of dividend payments; quarterly dividends paid for Q1 and Q2 2019 and declared for Q4 2019 post-yearend
High backlog secured, with around 500 vessel days in 2020 secured at an average TCE of approximately USD 72,000 per day

Headlines 2019

12 months	8 months

(In thousands of USD)	2019	2018

Revenue	42 226	13 432
Net revenue¹	20 047	7 907
Vessel operating days	885	417
TCE¹ per day (in USD)	22 653	18 962
Operating profit	1 674	903
Net profit	(948)	102
EPS (in USD per share)	(0.04)	0.01
Dividend (in USD per share)	0.15	-
Cash flow from ops excluding working capital movements	8 713	2 695
Cash flow from operations	2 380	(2 595)
Net cash flow	(8 381)	13 689
Cash and cash equivalents	5 309	13 689
Equity ratio	52 %	61 %
Net interest-bearing debt¹	30 693	15 787

Key financials 2019

Share performance 2019

Share information

Shares in ADS Crude Carriers Plc are listed on the Oslo Børs Merkur Markets under the ticker symbol 'ADS-ME'

ADS Crude Carriers Plc shares were listed on the Oslo Børs Merkur Markets on 28 August 2018. During 2019, a total of 11 million shares were traded representing approximately 50% of the

average volume weighted shares outstanding. At the end of the year, ADS Crude Carriers Plc had a market capitalization of NOK 715 million. The issued and paid up share capital of the Company as of 31 December 2019 was USD 4.7 million divided into 23,390,300 shares, each with a par value of USD 0.20. All shares have equal rights in all respects, including with respect to voting and dividends.

¹ Net revenue, TCE per day and NIBD are non-IFRS measures (see Note 17 to the consolidated financial statements)

since listing

The Company calculates vessel depreciation based on an estimated useful lifetime of 20 years from original delivery and the estimated residual value at the end of that period. The residual value is the estimated recycling value at age 20 years. During 2019 there was an approximate 25% decline in vessel recycling prices, and, consequently, the Company reduced the unit recycling price of its vessels to USD 325/ldt from 1 October 2019 (previously USD 425/ldt) for depreciation purposes.

Operating profit increased to USD 1.7 million (2018: USD 0.9 million), driven by higher net revenue somewhat offset by higher cash operating costs and increased non-cash depreciation costs.

Finance costs increased to USD 2.8 million (2018: USD 0.9 million) due to a higher number of calendar days in the period, as well as increase in the outstanding interest-bearing debt following amendment to the vessel loans mid-2019 and an increase in the interest rate. period.

The Company recorded a net loss of USD 0.9 million (2018: net profit USD 0.1 million) and EPS was negative USD 0.04 (2018: positive USD 0.01).

2.2 Balance sheet

The Company had gross assets of USD 102.7 million at 31 December 2019 (2018: USD 92.2 million), consisting of vessel carrying values totaling USD 81.6 million (2018: USD 67.7 million) and current assets of USD 21.2 million (2018: USD 24.4 million). During 2019 the Company capitalized USD 21.2 million in costs related to scrubber investments and intermediate vessel surveys. Receivables from customers increased by USD 5.5 million to USD 10.3 million (2018: 4.7 million) as a result of higher revenue recorded at the end of the period and as at the date of this report USD 10.1 million has been received from charterers, with the remaining balance expected to be received during 2020.

The book value of equity at the yearend was USD 53.5 million (2018: USD 56.0 million), down USD 2.4 million due to the net loss of USD 0.9 million recorded in 2019 and cash dividends totaling USD 1.5 million paid in the year.

The carrying value of non-current liabilities at the yearend increased by USD 6.8 million to USD 36.6 million (2018: USD 29.7 million) as a result of an increase in interest-bearing debt following an amendment to the vessel loans in 2019 in order to part-finance the Company's CAPEX investments in the year. Current liabilities increased by USD 6.2 million to USD 12.6 million (2018: USD 6.4 million) as a result of current liabilities related to the intermediate surveys and scrubber investments completed at the end of 2019. Included within current liabilities at 31 December 2019 is a total amount of USD 9.0 million (2018: USD 1.2 million) relating to intermediate surveys and scrubber investments, all of which is expected to be paid to suppliers in 2020.

2.3 Cash flow

Net cash flow from operations before working capital movements increased by USD 6.0 million to USD 8.7 million (USD: 2018 USD 2.7 million), and after working capital movements of negative USD 6.3 million (2018: negative USD 5.3 million) was an inflow of USD 2.4 million (2018: outflow of USD 2.6 million). The level of working capital movement is within the normal range expected.

Cash invested in property, plant and equipment was USD 12.8 million, down on the USD 68.4 million cash invested in 2018 which was largely due to the vessel purchases. The cash investment in 2019 related to the mandatory vessel intermediate surveys and scrubber

1. Operations and market

ADS Crude Carriers Plc was formed during 2018 with an aim of acquiring tankers at low entry prices ahead of the new IMO emission regulations that came into force on 1 January 2020. The Company took delivery of three VLCCs during mid-2018 – ADS Page on 20 July 2018, ADS Stratus on 9 August 2018 and ADS Serenade on 13 September 2018 – and completed installation of exhaust emissions cleaning systems ("scrubbers") on the vessels during mandatory intermediate vessel surveys in the second half of 2019. The Company's Fleet was successfully equipped with scrubbers ahead of implementation of the IMO 2020 regulations and, as at the date of this report, the installation of exhaust emissions cleaning systems on our vessels has already resulted in savings from reduced bunker cash cost of approximately USD 4.2 million in 2020, equivalent to 35% of the total investment cost.

The Company is managed by Arendals Dampskibsselskab AS, while commercial management of the vessels is provided by Frontline Ltd. Technical management of ADS Stratus and ADS Serenade has been provided by OSM Maritime Group since the Company purchased the vessels and on 5 August 2019 technical management of ADS Page was transferred to OSM Maritime Group from Thome Ship Management, thus allowing a more efficient structure whereby one service provider provides technical management for the fleet of sister vessels.

2. Financial review

As the Company was established on 30 April 3018, then comparative figures for 2018 are for the eight-month period ending 31 December 2018, while amounts for 2019 are for the full year.

2.1 Income statement

During 2019 there were a total number of 1,095 vessel days (2018: 417) and 885 vessel operating days (2018: 417), with 210 days spent related to yard stay projects, including days before and after yard stay (2018: nil). The Company recorded revenue of USD 42.2 million, up from USD 13.4 million, while net revenue increased to USD 20.0 million from USD 7.9 million in 2018. Of the USD 12.1 million increase in net revenue, USD 8.9 million was due to increased vessel operating days and USD 3.7 million due to a higher day rate. The Company recorded an average TCE per day of USD 22,653 in 2019, up from USD 18,962 the year before.

Vessel operating expenses increased by 117% to USD 10.0 million (2018: USD 4.6 million) due to an increase of 163% in the number of vessel days, which was partially offset by a reduction in the average vessel OPEX per day. Of the USD 5.4 million increase in total vessel operating expenses, an increase of USD 7.4 million was due to increased vessel days while a decrease of USD 2.0 million was due to lower average vessel OPEX per day.

General and administrative costs increased by 72% to USD 1.0 million (2018: USD 0.6 million) in the year mainly due to increased number of days in the financial period.

Depreciation increased to USD 7.4 million in the year (2018: USD 1.8 million) as a result of increased number of vessel days, a higher depreciation base following capitalized vessel survey and scrubber investment costs in 2019, and a reduction in the residual value estimate of the vessels. Q4 2019 was the first quarter for which depreciation was recognized for the recently completed scrubber installations and intermediate surveys, while following an evaluation of the IFRS requirement to annually reassess residual values, the Company reduced the residual values of the vessels used for depreciation purposes with prospective impact from 1 October 2019.

Going concern

The Company was incorporated on 30 April 2018 as a limited liability company, converted to a public limited company on 10 August 2018 and subsequently admitted to trading on the Oslo Børs Merkur Market on 28 August 2018. On 16 July 2018, the Company raised gross proceeds of USD 57 million in a private placement equity issue. The purpose of the equity issue was to provide proceeds to part-finance purchase of three VLCCs, finance scrubber installments planned for 2019 on the acquired vessels, as well as provide liquidity for working capital build-up, cover general corporate purposes and equity transaction fees. During the second half of 2018 the Company purchased three vessels for a total price of USD 67.5 million, or USD 22.5 million per vessel. In addition to the equity contribution, the vessel purchase was partly financed by a USD 30 million loan, or USD 10 million per vessel (the "Old Loan"). During 2019, the Company agreed terms with the lender of the vessel loan whereby a new loan of nominal value USD 37.5 million (the "New Loan") replaced the Old Loan. The New Loan was drawdown on 28 June 2019,

providing gross proceeds of USD 7.5 million after the repayment of the Old Loan. Less loan issue costs amounting to USD 0.9 million, net proceeds of USD 6.6 million were received. The proceeds of the New Loan were used towards the vessel intermediate surveys (dry dockings) that were completed during the second half of 2019.

In December 2019 the Company secured a USD 7.5 million credit facility in order to provide a working capital buffer to the Company immediately after completion of the Fleet-wide yard stays (the "Revolving Credit Facility" or "RCF"). The RCF is provided by the Company's two largest shareholders, SFL Corporation Ltd and ADS Shipping Ltd, at market terms. The RCF has a tenor of 12 months and is unsecured.

The Company's financial projections used in its going concern evaluation are based on certain assumptions about the future, including those related to the VLCC market, vessel utilization, productivity, operating cost level – including savings from the use of scrubbers – and capital investments. Based on these assumptions, the

Financial period	Total dividend	Dividend per share¹	Announced	Ex-div date	Payment date

Q1 2019	USD 1.0m	USD 0.04/NOK 0.37	29 May 2019	12 Jun 2019	26 Jun 2019
Q2 2019	USD 0.5m	USD 0.02/NOK 0.19	22 Aug 2019	4 Sep 2019	16 Sep 2019
Q4 2019	USD 2.0m	USD 0.09/NOK 0.79	27 Feb 2020	10 Mar 2020	18 Mar 2020

	USD 3.5m	USD 0.15/NOK 1.35

investments. A further USD 9.0 million is expected to be paid in cash in 2020 in relation to capitalized vessel survey and scrubber investments done in 2019.

Cash flow from investing activities was a net inflow of USD 2.1 million, down on the inflow of USD 84.7 million in 2018 which was mainly related to the USD 55.9 million net equity raise and USD 29.7 million net loan proceeds in 2018. During 2019 the Company amended the terms of the vessel loan, increasing the nominal interest-bearing debt to USD 37.5 million from the previous USD 30 million. Interest costs totaling USD 2.2 million (2018: USD 0.4 million) were paid in the year, an increase of USD 1.8 million due to higher interest-bearing debt and increased interest rate following the vessel loan amendment, as well as the timing of interest payments. An amount of USD 1.0 million (2018: USD 0.5 million) was transferred to restricted cash due to the amended vessel loan requiring an amount equivalent to approximately six months' interest payment, up from the previous three months', being deposited in escrow.

Cash and cash equivalents held at 31 December 2019 totaled USD 5.3 million (2018: USD 13.7 million), while the Company had a restricted cash deposit of USD 1.5 million (2018: USD 0.5 million). In addition, the Company's Revolving Credit Facility of USD 7.5 million was undrawn and fully available at yearend.

2.4 Dividends and allocation of net profit

The Company is subject to interim financial reporting due to its listing on a public stock exchange and, as a result, the Board of Directors (the "Board") make decision on dividends based on publicly available interim financial reports. The Board aim to distribute dividends to shareholders for financial periods the Company generates sufficient net profits and has available excess cash.

The dividends declared by the Board during 2019, total USD 1.5 million (2018: nil), are deducted from accumulated profit and losses as at 31 December 2019. The dividend of USD 2 million in relation to publication of the Company's Q4 2019 report was declared by the Board after 31 December 2019 and, therefore, is not deducted from accumulated profits and losses held by the Company at the end of 2019.

The Board propose that the net loss of USD 0.9 million recorded in the consolidated incomes statement in 2019 is transferred to retained earnings.

In relation to 2019 the Company has paid or declared the following dividends:

million (2018: USD 29.7 million) nominal value USD 37.5 million (2018: USD 30 million) that had floating interest rates based on LIBOR plus a margin of 5.1% (2018: 4.5%). During 2019 the Company secured a one-year USD 7.5 million Revolving Credit Facility which incurs a 5% commitment fee on the undrawn amount and is subject to 10% interest on the drawn amount. As at 31 December 2019 the RCF remains undrawn. The Company has no other fixed interest rate borrowings.

To indicate the sensitivity of the Company's earnings to changes in interest rates, should LIBOR increase by 200 basis points, the Company's interest cash cost would increase by USD 0.7 million per year.

3.2 Foreign exchange risk

The Company operates in the global tanker industry, for which the majority of transactions are denominated in US dollars, the Company's functional and presentational currency. All of the Company's revenue recognized in 2018 was denominated in USD dollars. The majority of the Company's operating costs are denominated in US dollars.

As at 31 December 2019 the Company had cash and cash equivalents denominated in Norwegian krone that had a carrying value of USD 0.4 million (2018: USD 0.2 million) and denominated in Euro of USD 0.1 million (2018: nil). All other financial assets and liabilities of the Company at 31 December 2019 are denominated in US dollars and, hence, the Company's maximum exposure to foreign exchange risk equates to USD 0.4 million.

3.3 Credit risk

Credit risk is the risk that a counterparty defaults on its contractual obligations, resulting

in a financial 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. Part of the Company's customer credit risk management is provided by the Company's commercial vessel manager, Frontline Ltd.

During 2019, the Company's vessels were predominantly on spot charters and at 31 December 2019, the Company's vessels were on spot charters to three different counterparties. Charter hire income from spot charters is generally payable to the Company within three days after cargo discharge. Of the USD 10.3 million receivable from customers in the balance sheet at 31 December 2019, an amount of USD 10.1 million has been received from charterers as at the date of this report, with the remaining balance expected to be received during 2020.

The Company aims to manage its counterparty risk relating to cash held at bank by only holding deposits at recognizable international banks. As at 31 December 2019 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 financial obligations as they fall due. The Company manages its risk of a shortage of funds by continuously monitoring maturity of its financial assets and liabilities and using a cash flow forecasting tool that makes projections about future cash flows from operating activities and required for investing activities.

Company expects to have sufficient liquidity to operate for at least 12 months from the date of this report and, therefore, these financial statements are prepared using the going concern assumption.

2.5 Parent company's unconsolidated financial statement

The Parent Company recorded a net profit of USD 4.1 million for the year, up from a net loss of USD 0.2 million in 2018. The increase is mainly due to dividends from subsidiaries of USD 4.4 million received in the year (2018: nil). General and administrative costs increased by USD 0.2 million to USD 0.4 million (2018: USD 0.2 million) driven by an increased number of days in the period. Net finance income increased by USD 1.8 million to USD 1.8 million (2018: nil) due to an increase in interest income from subsidiaries following establishing non-current loans to subsidiaries during 2019. There was a corresponding increase in finance costs of USD 1.7 million to USD 1.7 million (2018: nil) due to increased interest costs and increased loan fee amortization costs, both following the amendment of the Group's vessels loans on 28 June 2019 whereby the Parent Company became the borrower.

The Board of Directors propose to transfer the net profit of USD 4.1 million to retained earnings. During release of ADS Crude Carriers Plc's interim earnings during 2019, the Board have declared dividends totaling USD 1.5 million, which are deducted from retained earnings held at 31 December 2019. Additionally, on 27 February 2020, the Board declared a dividend of USD 2 million in relation to release of its Q4 2019 earnings.

The Parent Company had gross assets at 31 December 2019 totaling USD 96.7 million (2018: USD 56.8 million), of which USD 82.7 million (2018: USD 45.2 million) are non-current assets and USD 14.0 million (2018: USD 11.6 million) current assets. The increase in non-current assets is due to an increase in loans to subsidiaries of USD 37.5 million. The Parent Company's book equity was USD 59.3 million (2018: USD 56.8 million) at yearend. The Company's non-current liabilities increased to USD 36.6 million (2018: nil) following the amendment to the Group's vessels loans on 28 June 2019, whereby the Parent Company became the borrower from the 3rd party lender and immediately lent the proceeds to subsidiaries.

2.6 Events after the reporting period

On 26 February 2020, the Board of Directors declared a dividend of USD 2 million, or approximately USD 0.09 per share. The last day of trading including the right to the dividend was 9 March, the ex-dividend date 10 March and the dividend was paid in NOK on or around 18 March to all shareholders on record at 11 March.

3. Financial risks

The Company's primary financial risks relate to market risk, credit risk and liquidity risk.

The Company's principle financial liabilities are loans used to finance the Company's vessels, as well as trade payables and other payables. The Company's principal financial assets are customer receivables, other assets and cash deposits at banks.

3.1 Interest rate risk

The Company's exposure to the risk of changes in market interest rates relates to its vessels loans. As at 31 December 2019, the Company had vessel loans with carrying value USD 36.6

4. People and the organization

The Company's registered office is in Cyprus and its Norwegian subsidiaries are based in Arendal, Norway. The Company's fleet of vessels operate globally.

On 1 March 2019 ADS Crude Carriers Plc appointed its first and only employee, based at the Company's office in Cyprus. The administrative and corporate management of the Company is provided by Arendals Dampskibsselskab AS. Commercial management of the vessels is provided by Frontline Ltd, while technical management of the vessels, including employment of crew onboard, is provided by OSM Maritime Group.

The Company's one employee is female, while two of the current five members of the Board of Directors are female.

5. Outlook

The last months of 2019 and first months of 2020 have reminded us that the tanker market is unpredictable and volatile as we have seen reported market rates for VLCCs swing from all-time high levels down to close to cash breakeven levels and then back up to super profit territory almost overnight. The VLCC market has recently been influenced by a number of factors, including increasing average sailing distances, tighter available fleet capacity (eg. sanctioning of Cosco vessels) the impacts of IMO 2020, the return to the global fleet of previously sanctioned vessels, reduction in oil production (eg. Libya) and the sudden outbreak of the coronavirus all having an impact. During the second week of March 2020, following the disagreement amongst OPEC countries to reduce oil supply, tanker rates shot back up following Saudi Arabia's decision to reduce the price of their oil and to increase production. The past months have reminded us that the tanker market is unpredictable and volatile. The Board expect the VLCC market will remain dynamic during 2020.

(In thousands of USD)	2020	2021	2022	Total
Interest-bearing debt Other current liabilities	- 9 499	- -	37 500 -	37 500 9 499
Trade payables	3 141	-	-	3 141
Total	12 640	-	37 500	50 140

2020	2021	2022	Total

3 000	3 000	31 500	37 500
9 499	-	-	9 499
3 141	-	-	3 141

15 640	3 000	31 500	50 140

The table below shows the maturity profile of the Company's financial liabilities based on contractual payment terms (excluding interest payments).

The table below shows the maturity profile of the Company's financial liabilities based on contractual payment terms (excluding interest payments), while for the interest-bearing debt – which consists wholly of the Vessel Loan – it shows the maturity profile assuming maximum payments are made under the cash sweep mechanism that is part of the Vessel Loan. The cash sweep applies for every quarter starting Q1 2020 whereby all free cash held by the Company above an amount equivalent to 10% of gross outstanding debt at the quarter end, up to a maximum of USD 0.75 million per quarter, is repaid.

Limassol, 2. April 2020

Bjørn Tore Larsen Chairman

Marios Demetriades, Deputy Chairman

Trym Sjølie

Sofi Mylona Lia Papaiacovou

measures will be in place and whether things will get worse before they get better. With respect to the Company's vessels there have been no significant issues with health, safety or restriction of operations related to Covid-19 so far, though like a number of other vessel operators all crew changes have been temporarily suspended. An increasing number of restrictions on port operations and similar measures are being implemented by authorities and vessel operations represent an activity with major exposure. The Company is following the guidelines of all relevant authorities, expert advice and best industry practices in close cooperation with the technical manager of the vessels. The macroeconomy has already been impacted by Covid-19 but it is unknown how long this will last, the effect on the tanker market and on the Company. As of today, it is not possible to estimate the financial impact, if any, to the Company as a result of Covid-19.

Post-year end the Company entered a six-month time charter for ADS Page, due to commence early April 2020, prior to which the vessel continued to operate in the spot market. ADS Serenade and ADS Stratus have remained operating in the spot market during 2020. As at the date of this report, the Company has filled around 500 vessel days in 2020 at an average TCE of approximately USD 72,000 per day, which includes voyages already completed in 2020 to-date as well as secured future charters.

Consolidated statement of comprehensive income

Operating expenses

		12 months	8 months
(In thousands of USD)	Note	2019	2018

Revenue	4.5	42 226	13 432
Operating expenses
Voyage expenses	6	(22 179)	(5 525)
Vessel operating expenses	7	(9 964)	(4 562)
General & administrative costs	8	(1 043)	(606)
Depreciation	11	(7 366)	(1 835)
Total operating expenses		(40 552)	(12 529)
Operating profit		1 674	903
Finance cost	9	(2 825)	(859)
Finance income	9	203	57
Profit before tax		(948)	102
Income tax		-	-
Profit after tax and total comprehensive income		(948)	102
(In USD)
Earnings per share attributable to equity holders
Basic	10	(0.04)	0.01
Diluted	10	(0.04)	0.01

(In USD)

Consolidated statement of cash flows

Cash flow from operating activities

Adjustment for non-operating cash flow items







Cash flow from investing activities




Cash flow from financing activities

		12 months	8 months
(In thousands of USD)	Note	2019	2018
Cash flow from operating activities
Profit for the period		(948)	102
Adjustment for non-operating cash flow items
Depreciation	11	7 366	1 835
Interest expenses	9	2 498	793
Interest income	9	(202)	(35)
Net operating cash flow before working capital items		8 713	2 695
Working capital movements		(6 334)	(5 290)
Total operating cash flow		2 380	(2 595)
Cash flow from investing activities
Payments for vessels and equipment	11	(12 837)	(68 387)
Total cash flow used in investing activities		(12 837)	(68 387)
Cash flow from financing activities
Proceeds from share issue		-	56 933
Transaction cost on issue of shares		-	(1 048)
Receipt from bank loan	13	7 500	30 000
Transaction cost related to bank loan	13	(900)	(300)
Interest paid	9	(2 210)	(391)
Decrease/(increase) in restricted cash		(973)	(524)
Interest received	9	161	1
Dividends paid		(1 500)	-
Total cash flow from financing activities		2 077	84 671
Net increase in cash and cash equivalents		(8 381)	13 689
Cash and cash equivalents at the beginning of the period		13 689	-
Cash and cash equivalents at the end of the period	15	5 309	13 689

Consolidated statement of financial position

(In thousands of USD)	Note	2019	2018
Assets

Non-current assets
Vessels	11	81 568	67 714
Total non-current assets		81 568	67 714
Current assets
Receivables from customers	4, 5, 15	10 267	4 745
Other current assets	12, 15	4 104	5 488
Restricted cash	15	1 498	524
Cash and cash equivalents	15	5 309	13 689
Total current assets		21 177	24 447

Total assets		102 745	92 161
Equity and liabilities
Equity
Issued share capital		4 678	4 678
Share premium		51 207	51 207
Retained earnings		(2 346)	102
Total equity		53 539	55 987
Non-current liabilities
Interest-bearing debt	13, 15	36 566	29 729
Total non-current liabilities		36 566	29 729

Current liabilities
Other current liabilities	14, 15	9 499	1 333
Trade payables	15	3 141	5 113
Total current liabilities		12 640	6 446
Total equity and liabilities		102 745	92 161

Notes to the consolidated financial statements

1. General information

These consolidated financial statements of ADS Crude Carriers Plc ("ADS Crude Carriers" or the "Company") for the period ended 31 December 2019 were authorized for issue in accordance with a resolution of the Board of Directors passed on 2 April 2020.

ADS Crude Carriers Plc is a public limited company listed on the Merkur Market at the Oslo Stock Exchange.

The Company is incorporated in Cyprus and the address of its registered office is OSM House, 22 Amathountos, 4532 Agios Tychonas, Limassol, Cyprus. The Company is domiciled in Cyprus and has Norwegian subsidiaries based in Arendal, Norway. The principal activities of the Company are operating tanker vessels in the global tanker market. The Company owns and operates a fleet of three VLCCs: ADS Page, ADS Stratus and ADS Serenade.

The Company is managed by Arendals Dampskibsselskab AS. Commercial management of the vessels is provided by Frontline Ltd, while technical management of the vessels is provided by OSM Maritime Group.

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.