Concordia Maritime

Interim / Quarterly Report • Aug 17, 2022

Q2 Interim report, 1 January–30 June 2022 22

Positive result and stronger market outlook

• Total income Q2 SEK 180.8 (208.4) million
• EBITDA Q2 SEK 102.7 (–16.7) million HY1 SEK 132.4 (–62.4) million

HY1 SEK 304.9 (388.0) million

• Result before tax Q2 SEK 36.5 (–88.4) million HY1 SEK 6.0 (–208.6) million
• Result per share after tax Q2 SEK 0.75 (–1.88) HY1 SEK 0.11 (–4.42)

Events in the second quarter

• Sale of Suezmax tanker Stena Supreme . The sale had a positive liquidity effect of approximately USD 4 million.
• Strong market. Result affected by profit sharing of USD 1.9 million for HY1, enabling accelerated loan repayments.

Events after the end of the quarter

Agreement signed for sale of P-MAX tanker Stena Paris. The sale is expected to enable accelerated loan repayments of approximately USD 5 million.

	Q2 (Apr–Jun)		6 months (Jan–Jun)	Full year
Key figures	2022	2021	2022	2021	2021
Total income, SEK million	180.8	208.4	304.9	388.0	704.8
EBITDA, SEK million	102.7	–16.7	132.4	–62.4	–82.6
EBITDA, USD million	10.6	–2.0	13.8	–7.4	–9.6
Operating result, SEK million	58.9	–74.2	46.5	–176.1	–583.5
Result before tax, SEK million	36.5	–88.4	6.0	–208.6	–658.2
Result after tax, SEK million	35.7	–89.7	5.2	–211.1	–660.4
Equity ratio, %	20	24	20	24	14
Return on equity, %	neg	neg	neg	neg	neg
Available liquid funds, including unutilised credit facilities, SEK million	88.9	139.5	88.9	139.5	34.9
Result per share after tax, SEK	0.75	–1.88	0.11	–4.42	–13.84
Equity per share, SEK	7.18	14.67	7.18	14.67	6.21
Lost-time injuries	0	0	0	2	0

Accounting policies, see page 16. Definitions, see page 14.

Strong market in an unstable world

The first half of 2022 has brought unprecedented drama in the world around us. War in Europe, a new energy policy landscape, inflation, rising interest rates and a volatile stock market. As always, the tanker market reacts quickly to external events – and volatility has been unusually high so far this year. Unfortunately, the short-term outlook for geopolitical stability is uncertain at the time of writing. However, for the product tanker market the future looks brighter.

SINCE THE TRAGIC INVASION of Ukraine at the end of February, it has been a turbulent and shaky time in the tanker market. World leaders were quick to condemn Russia and most shipowners and operators, including Concordia Maritime, made their own decisions to exclude Russian ports and cargoes even before formal sanctions were in place. However, a small number of shipowners chose to continue trading with Russia – which has at times been very lucrative.

Russian crude oil and oil products previously exported to Europe have started to find new markets in China, India, South America and elsewhere. In Europe, Russian deliveries have gradually been replaced by increased imports from the US and Asia. Overall, this has had a dramatic effect on cargo flows. This, combined with growing international demand for energy, OPEC's difficulties in scaling up oil production and high refinery utilisation, has contributed to a marked increase in both tonne-miles and demand for tonnage. In the short to medium term, we believe this situation will persist.

Strong product tanker market

The impact on the product tanker market has been particularly strong during the second quarter, but the crude oil

segment has also developed positively. According to Clarksons, average earnings for an MR vessel on the spot market at the beginning of the quarter were around USD 19,000 per day. By the end of June, the figure had risen to around USD 43,000 per day. The time charter market also showed positive development during the quarter, with average earnings for a one-year time charter increasing from USD 14,250 per day to USD 20,500.

In parallel, the persistently weak VLCC crude oil market finally took an upward turn. The market is dominated by shipments to China, which are often conducted on slightly longer contracts with fixed rates. This has had a dampening effect on the crude oil transport market.

Continued high bunker prices during the quarter have once again highlighted the difference in earning potential between vessels of new and older design. With their width and larger cargo intake, our P-MAX vessels have higher consumption compared with standard MR vessels.

Positive result due to profit-sharing and vessel sale

Our own operations have progressed smoothly during the quarter and there are no accidents or incidents to report.

It is pleasing to see the Company's result finally turning to profit, which amounted to MSEK 35.7 (–89.7) and is a significant improvement from 12 months ago.

During the quarter, the Suezmax vessel Stena Supreme was sold and delivered to her new owners before the approaching scheduled docking. Concordia Maritime had the vessel on a bareboat charter with purchase options. Thanks to rising asset prices, we were able to conduct a transaction on good terms. The sale had a positive liquidity effect of approximately USD 4 million.

Earnings for our remaining vessels are based on the time charter agreement with Stena Bulk, which guarantees earnings of USD 15,500 per day and vessel. In addition, we are also entitled to profit-sharing corresponding to 50% of the vessels' earnings that exceed the base rate.

For the first six months of 2022, total profit-sharing amounted to approximately MUSD 1.9, as a result of the strong market recovery in the second quarter. The high spot market is not directly affecting profit-sharing as Stena Bulk has chosen to employ the vessels on contracts of varying lengths, some being short market-related contracts and others being medium fixed-rate time charters.

During the quarter, we decided to put the "container project" on hold. The technical study shows that it is technically feasible to convert P-MAX vessels into 2,100 TEU container vessels, but the increasing economic uncertainty has made it difficult to reach an agreement with an end customer. However, we will leave no stone unturned in our efforts to increase both the return and value from our vessels wherever possible.

Increased vessel values and order book still low

The strong performance of the spot market has also resulted in a rise in vessel values. This also applies to older quality tonnage. However, ship recycling decreased during the quarter. Prices paid at recycling yards have also fallen significantly (from USD 675 to USD 560 per LDT in India). The average recycling age for product tankers is now about 23 years.

As previously reported, the current order book for product tankers is low, at an average of approximately 4.8% of the existing fleet. Most yards are also fully booked to 2025 with new gas and container vessels. So, even with an increase in new tanker orders, delivery times would be long. Net fleet

growth in the coming years is therefore expected to remain low. Overall, we have a positive view of tanker market fundamentals.

Market outlook

In the tanker market, there is much talk about two factors: "energy security" and "demand destruction", which could have a major impact on future development.

Increased demand for energy and the absence of Russian oil has caused energy prices to soar – with growing pressure to increase energy production from both nuclear and renewable energy sources. This may be the right way to go, but in the short term the focus will remain on achieving sufficient crude oil and gas production to ensure access to energy for businesses and households – energy security.

This could obviously have a positive effect on the tanker market. At the same time, we are likely to enter an international economic downturn. The extent to which a significant slowdown in economic growth – and high energy prices – will contribute to demand destruction in terms of energy demand and energy-related transport remains to be seen.

After the end of the second quarter, we entered into an agreement for the sale of Stena Paris to a Greek company. The primary aim of the sale was to take advantage of the increased ship valuations, but there was also an age factor. In a strong second-hand market for mature quality tonnage, we are therefore now taking the opportunity to sell our oldest vessel.

Gothenburg, August 2022 Erik Lewenhaupt, CEO

Business activities

Result for the quarter was SEK 35.7 (–89.7) million. EBITDA was SEK 102.7 (–16.7) million. The improvement in earnings compared with the same quarter in the previous year is mainly a consequence of total profit-sharing of SEK 18.1 million due to the strong freight market in Q2, and the sale of Stena Supreme. The sale had a positive effect of SEK 39.0 million on earnings.

Product tanker fleet

After delivery of Stena Paris to her new owner, Concordia Maritime's product tanker fleet will consist of seven 65,200 dwt P-MAX vessels. Six of the vessels are employed under a five-year time charter contract with Stena Bulk. The contract runs until 2026.

The seventh vessel, Stena Polaris, has been chartered out to Crowley Government Services Inc. since the beginning of 2022. The bareboat contract is for a minimum period of 12 months with annual options up to the year 2026. Crowley has in turn chartered the vessel to US Military Sealift Command.

The base rate for the P-MAX vessels out on time charters with Stena Bulk during the quarter was USD 15,500 per day. Earnings for Stena Polaris correspond to a time charter contract of approximately USD 18,000 per day.

Profit-sharing

As a result of the strong product tanker market in the second quarter, profit-sharing was applicable for the vessels under the Stena Bulk contract. The profit-sharing is based on average earnings during the period 1 January–30 June 2022 that exceed the base rate of USD 15,500 per day.

The surplus is shared equally with the time charter partner Stena Bulk. Total profit-sharing amounted to SEK 18.1 million. Including profit-sharing, average earnings for the vessels contracted out to Stena Bulk during the quarter amounted to the equivalent of USD 18,500 per day. Average earnings for the first half of the year were USD 16,900.

Stena Bulk's employment of the vessels during the quarter was a combination of time charter and spot. More information about vessel employment can be found page 20. Further information about the agreement with Stena Bulk is available at concordiamaritime.com.

Suezmax fleet

During the quarter, the Suezmax fleet consisted of the Suezmax tanker Stena Supreme (158,000 dwt), which is on a long-term charter. The vessel was employed on the spot market via Stena Sonangol Suezmax Pool. The vessel was sold in May 2022 and delivered to the customer at the end of June 2022.

Average earnings per day for Stena Supreme during the quarter were USD 24,600 (12,100). The sale has generated

The Group's total income and earnings

	Full year
SEK millions	2022	2021	2021
Total income	180.8	208.4	704.8
of which profit-sharing1)	18.1	n.a	n.a
Operating result	58.9	–74.2	–583.5
Result before tax	36.5	–88.4	–658.2
Result per share after tax, SEK	0.75	–1.88	–13.84

1) The product tanker fleet's earnings in excess of the base rate of USD 15,500 per day and vessel are shared equally between Concordia Maritime and the contractual partner Stena Bulk.

Liquidity and financial position

SEK millions	30 Jun 2022	30 Jun 2021
Available liquid funds2)	88.9	139.5
Interest-bearing liabilities	1,133.6	1,963.8
Equity	342.6	700.0
Equity ratio, %	20	24

2) Available liquid funds, including unutilised credit facilities, amounted to SEK 88.9 million at the end of Q2 2022. The Board considers that existing bank financing and other sources of funding are sufficient to secure the Group's financing for at least the next 12-month period. In addition to the scheduled repayments, the Company also repaid the loan for Stena Supreme during the quarter. Overall, the sale of the vessel corresponded to a positive cash effect of approximately USD 4 million.

a positive liquidity effect of approximately USD 4 million. Unlike the P-MAX vessels, the transaction and proceeds from the sale of Stena Supreme are not subject to any special conditions from the lending banks. The surplus will therefore strengthen Concordia Maritime's cash position.

Earnings and market Average earnings,

		Concordia Maritime				Average earnings, market2,3)
USD per day	Number of ships	Q2 2022	Q2 2021	6 months 2022	6 months 2021	Q2 2022	Q2 2021	6 months 2022	6 months 2021
Product tankers	7	18,5001)	13,500	16,9001)	11,500	33,700	6,900	21,700	6,600
Suezmax	1	24,600	12,100	19,200	12,600	30,100	5,200	23,800	7,200

1) Including profit-sharing for the period 1 January–30 June 2022

2) Clarksons w.w. Average MR Clean Products Long Run Historical Earnings

3) Clarksons w.w. Average Suezmax Long Run Historical Earnings

Concordia Maritime's product tanker fleet is mainly employed on TC contracts at a fixed base rate of USD 15,500 per day. Any earnings above this are shared equally between Concordia Maritime and the contractual partner Stena Bulk.

EBITDA per quarter

USD millions	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020
Product tankers, time charter	6.6	5.1	5.7	1.7	4.4	4.5	4.6	4.5	4.2
Product tankers, spot, owned and leased tonnage	0.1	0.3	–0.75)	–2.03)	–3.64)	–7.63)	–2.0	0.3	5.2
Product tankers, spot, short-term chartered tonnage	—	—	—	—	0.0	0.0	0.0	0.0	0.0
Sale of vessels	—	–1.4	—	–3.6	—	—	—	—	—
Product tankers, total	6.6	4.0	–5.0	–3.7	0.8	–3.1	2.6	4.9	9.3
Suezmax, spot, owned and leased tonnage	0.9	0.5	0.4	–0.1	0.2	0.3	0.1	1.4	3.4
Suezmax, spot, short-term chartered tonnage	0.0	0.0	–0.1	–2.0	–2.0	–1.8	–1.8	0.0	0.0
Sale of vessels	4.1	—	—	—	—	—	—	—	—
Suezmax, total	5.0	0.5	0.3	–2.1	–1.8	–1.5	–1.7	1.4	3.4
Admin. and other	–1.0	–1.2	–0.9	–0.8	–1.0	–0.8	–0.8	–0.7	–1.0
Total	10.6	3.2	4.4	–6.6	–2.0	–5.4	0.1	5.5	11.8

1) The total includes an IMOIIMAX bonus of USD 5 million received. 2) The total includes a negative bunker hedge of USD –0.5 million.

3) The total includes a negative bunker hedge of USD –2.9 million. 4) The total includes a negative bunker hedge of USD –1.9 million. 5) The total includes a negative bunker hedge of USD –0.9 million.

Earnings per vessel category Q2 6 months Full year

SEK millions	2022	2021	2022	2021	2021
Product tankers, time charter	112.9	60.8	229.1	121.8	322.3
Product tankers, spot	4.4	123.1	0.0	216.6	300.5
Product tankers, total earnings	117.3	183.9	229.1	338.4	622.8
Suezmax, spot	24.5	24.6	36.9	49.6	82.0
Result from vessel sales	39.0	0.0	39.0	0.0	0.0
Suezmax, total earnings	63.5	24.6	75.8	49.6	82.0
Other	0.0	0.0	0.0	0.0	0.0
Total income	180.8	208.4	304.9	388.0	704.8

Market development, product tankers MR

Average earnings per day for the spot market amounted to USD 33,700 (6,900). The time charter market has also strengthened, and a one-year contract for an MR tanker was about SEK 17,000 per day at the end of the quarter, partly depending on the vessel's design.

Price development, product tankers MR

The strong performance of the spot market has resulted in a rise in the market values of vessels. This also applies to older quality tonnage.

Source: Clarksons

Repairs and drydock

There were no scheduled drydock inspections and no repairs in drydock during the quarter.

Operational challenges

Covid-19 continues to present some challenges in terms of crew changes. Restrictions have been eased in many places during the quarter and, with the exception of China, there are now well-functioning procedures for crew changes.

The war in Ukraine is affecting the Company's operations in several ways. These include payments to Russian officers. However, the manning company Northern Marine Management has found temporary solutions for the Russian officers (just over 70 in number) who work on Concordia Maritime's vessels.

Changes in translation and hedging reserves

The Parent Company's functional currency is SEK, but the majority of the transactions in the Group are in USD. The Group's result is generated in USD, which means the result in SEK is a direct function of the SEK/USD exchange rate trend.

The closing amount in the hedging reserve at the end of the quarter was SEK 0.6 (–17.8) million. The closing balance for the translation reserve in equity amounted to SEK 502.8 (434.6) million at the reporting date. The changes are recognised in equity through OCI.

Investments and deposits

Investments in property, plant and equipment during the quarter amounted to SEK 0.8 (39.8) million. During the quarter, Concordia Maritime did not buy or sell any assets classified as short-term investments in the Company's balance sheet.

Liquidity and financial position

During the second quarter, Concordia Maritime's available liquidity increased in connection with the sale of Stena Supreme. The sale had a positive liquidity effect of approximately USD 4 million, strengthening the Company's available liquid funds.

The Annual General Meeting on 5 May 2022 voted to reduce the Company's share capital by SEK 194,338,384, in accordance with the Board's proposal, in order to cover the Company's accumulated loss for accounting purposes while better aligning the size of the share capital with the Company's operations.

Repayments of bank loans of SEK 252.0 (63.3) million have been made during the first half of the year, including SEK 198.5 (0.0) million related to the sale of vessels.

Valuation of the fleet

After the sale of Stena Supreme, the fleet is defined as one cash-generating unit. An impairment loss/write-up is recognised when the carrying amount of an asset or cashgenerating unit exceeds/falls below its recoverable amount. The recoverable amount is the higher of fair value (external valuations) and value in use (future discounted cash flows). In general, we have seen a market appreciation in asset values of between 10–15% in the first half of the year. At the end of the first half of 2022, the cash-generating unit's carrying amount did not exceed its recoverable amount and there was therefore no impairment.

Employees

The number of employees in the Group on 30 June 2022 was 3 (3). The Group employed 429 (596) temporary seagoing employees through Stena Sphere's manning company, Northern Marine Management.

Parent Company

The Parent Company's sales for the quarter amounted to SEK 0.0 (15.9) million, with intragroup invoicing representing 0.0 (0.0) of this amount. The Parent Company's available liquid funds at the end of the quarter amounted to SEK 20.6 (216.1) million, which includes receivables from Group companies in the cash pool and unutilised credit facilities.

Risks and risk management

Concordia Maritime operates in an industry where demand for the Company's services is affected by business cycles and seasonal effects, as well as factors of a more temporary nature.

The main risks associated with Concordia Maritime's operations and the industry – and which could have a significant negative impact on the Group's operations, strategy, profitability, cash flow, shareholder value or reputation – are divided into four categories: strategic risks, operational risks, compliance risks and financial risks. Sustainability risks are integrated into the risk categories. More information about risks and risk management can be found in Concordia Maritime's 2021 annual report, which is available at www.concordiamaritime.com.

Environmental and safety reporting

None of Concordia Maritime's vessels were involved in any incident that resulted in discharges of bunker oil or cargo during the quarter. There were also no workplace incidents resulting in an individual employee being unable to return to a work shift on the following day. This result is a consequence of extensive and continuous work on board the vessels.

None of Concordia Maritime's vessels were involved in any piracy-related incidents during the quarter.

External controls

Seven vetting inspections were conducted during the quarter. There were 23 observations recorded during these inspections, resulting in an average of 3.3 observations per inspection. No port state control resulted in the detention in port of any Concordia Maritime vessel during the quarter.

Energy management

Total bunker consumption during the quarter decreased by 38% compared compared with Q2 2021. This was due to the fact that there were fewer vessels in 2022 (two vessels were sold in Q1 2022). The EEOI, which measures vessels' energy efficiency and CO2 emissions, showed a slight deterioration for the fleet. The measure is affected by factors such as how the end customer decides to employ vessels.

Phasing out single-use plastic

Concordia Maritime's technical partner Northern Marine Management is actively engaged in efforts to reduce all types of waste from vessels. This includes a project, which has been in progress since 2019, aimed at reducing the use of single-use plastics on board Concordia Maritime's vessels.

New regulations

Concordia Maritime monitors developments regarding shipping regulations issued by the IMO, the EU and other relevant bodies. The IMO's short-term greenhouse gas reduction measures are likely to require fleet adaptations in the coming years. The IMO's EEXI and CII regulations enter into force in 2023 and an evaluation of effective technical and operational initiatives required to ensure compliance is underway.

To comply with the EEXI regulations, EPL (Engine Power Limitation) will have to be installed on the P-MAX vessels during 2023. In short, this enables a vessel to limit its maximum engine power,which is not expected to have any negative operational impact. The investment is expected to amount to approximately USD 35,000 per vessel. Iceberg off Greenland, seen from Stena Polaris.

In early 2022, Stena Polaris was chartered out to Crowley Government Services Inc. Crowley has in turn chartered the vessel to US Military Sealift Command, which uses her to transport fuel to bases around the world. In August, the vessel delivered fuel to the Thule air base in Greenland. The air base in north west Greenland was built in 1943 and houses around 600 military personnel. Fuel is delivered once a year, when ice conditions permit.

Key figures

Safety

	Q2 2022	Q2 2021	6 months 2022	6 months 2021	Full year 2021	Target 2022
LTI	0	0	0	0	0	0
LTIF	0	0	0	0	0	0
Number of inspections with more than 5 observations (owned vessels)	0	0	0	0	1	0
Average number of vetting observations per inspection (owned vessels)	3.3	2.0	2.9	2.0	1.9	<4
Number of PSC inspections with detentions	0	0	0	0	0	0
Number of piracy-related incidents	0	0	0	0	0	0
Damage to property	0	1	2	1	0	0
Medical treatment case	0	0	0	0	0	0
Restricted work case	0	0	1	1	3	0
High potential near miss	0	0	1	2	3	0
High risk observation	0	0	0	0	0	0

Environmental impact

	Q2 2022	Q2 2021	6 months 2022	6 months 2021	Full year 2021
Bunker consumption (tonnes)
HSFO	0	0	0	0	–
LSFO	12,610	20,027	25,664	39,673	62,666
MGO	1,817	3,103	4,477	7,822	14,738
Total	14,4271)	23,130	30,1411)	47,495	77,404
Emissions (tonnes)
CO2	45,111	72,311	94,291	148,645	242,421
SOx	127	202	260	404	641
NOx	1,291	2,069	2,697	4,250	6,927
Particulates	15.7	25.0	33.7	50.0	80
Efficiency (EEOI)
gCO2/tonne-NM	15.212)	12.092)	n.a	n.a	n.a
Oil spills, litres	0	0	0	0	0

1) The difference in bunker consumption compared to 2021 is an effect of the size of the fleet. 2) 12-month rolling

Group Income statement

SEK millions	Q2 2022	Q2 2021	6 months 2022	6 months 2021	Full year 2021
Consolidated income statement
Average exchange rate SEK/USD	9.35	8.41	9.59	8.40	8.58
Time charter income, leasing of vessels	46.5	22.2	93.7	44.5	120.2
Time charter income, operational services	66.5	38.6	135.3	77.4	202.1
Spot charter income1)	28.9	147.7	36.9	266.2	382.5
Result from vessel sales	39.0	0.0	39.0	0.0	0.0
Other income	0.0	0.0	0.0	0.0	0.0
Total income	180.8	208.4	304.9	388.0	704.8
Voyage-related operating costs	–8.3	–77.9	–5.2	–159.0	–220.1
Operating costs, ships1)	–33.4	–84.8	–68.0	–169.4	–297.3
Personnel costs, temporary seagoing	–35.5	–50.0	–79.7	–97.7	–196.7
Personnel costs, land-based	–2.9	–3.5	–5.2	–8.0	–14.0
Other external expenses	2.0	–8.8	–14.5 2)	–16.2	–59.23
Depreciation/impairment	–43.8	–57.5	–86.0	–113.7	–501.0
Total operating costs1)	–121.9	–282.7	–258.4	–564.1	–1,288.3
Operating result	58.9	–74.2	46.5	–176.1	–583.5
Interest and similar income	1.4	–0.5	1.7	2.3	8.6
Interest and similar expense	–23.9	–13.7	–42.1	–34.8	–83.3
Financial net	–22.5	–14.2	–40.4	–32.5	–74.7
Result before tax	36.5	–88.4	6.0	–208.6	–658.2
Tax	–0.8	–1.3	–0.8	–2.5	–2.1
Result after tax	35.7	–89.7	5.2	–211.1	–660.4

1) Accounting policies, see page 17.

2) Amount includes net loss of SEK –13.2 million on vessel sales.

3) Amount includes net loss of SEK –30.3 million on vessel sales.

Other comprehensive income Group

SEK millions	Q2 2022	Q2 2021	6 months 2022	6 months 2021	Full year 2021
Result after tax	35.7	–89.7	5.2	–211.1	–660.4
Items that have been/can be transferred to result for the period
Translation differences	30.8	–24.4	42.6	23.0	48.6
Changes in fair value of cash flow hedges for the period	–6.2	38.6	–6.2	52.7	61.8
Changes in fair value of cash flow hedges
transferred to result for the period	5.4	16.5	4.6	40.3	51.2
Comprehensive income for the period	65.7	–59.0	46.3	–95.1	–498.7

Per-share data

	Q2 2022	Q2 2021	6 months 2022	6 months 2021	Full year 2021
Number of shares	47,729,798	47,729,798	47,729,798	47,729,798	47,729,798
Result per share, before/after dilution	0.75	–1.88	0.11	–4.42	–13.84
Equity per share, SEK	7.18	14.67	7.18	14.67	6.21

Group Condensed balance sheet

SEK millions	30 Jun 2022	30 Jun 2021	31 Dec 2021
Closing exchange rate SEK/USD	10.22	8.55	9.05
Assets
Ships and equipment1)	1,396.3	2,682.4	1,454.5
Financial assets	9.3	0.0	5.4
Total non-current assets	1,405.6	2,682.4	1,459.8
Current receivables	103.5	156.7	112.1
Cash and bank balances2)	81.6	0.0	15.9
Assets held for sale	147.1	51.6	518.8
Total current assets	332.1	208.3	646.8
Total assets	1,737.7	2,890.7	2,106.7
Equity and liabilities
Equity	342.6	700.0	296.3
Non-current liabilities	966.3	1,248.7	310.9
Current liabilities	428.93)	942.1	1 499.44)
Total equity and liabilities	1,737.7	2,890.7	2,106.7

1) Including right-of-use assets of SEK 0 (897.2) million.

2) Including restricted funds of SEK 26.0 (0) million.

3) Including Liabilities directly associated with assets held for sale of SEK 78.4 million.

4) Including Liabilities directly associated with assets held for sale of SEK 521.5 million.

Changes in equity

SEK millions	Share capital	Other paid-in capital	Translation reserve	Hedging reserve	Fair value reserve	Retained earnings	Total
Changes Jan–Jun 2022
Opening balance 01.01.2022	381.8	61.9	460.2	2.1	0.0	–609.6	296.3
Comprehensive income for the period	0.0	0.0	42.6	–1.5	0.0	5.2	46.3
Share capital reduction	–194.3	0.0	0.0	0.0	0.0	194.3	0.0
Closing balance 30.06.2022	187.5	61.9	502.8	0.6	0.0	–410.1	342.6
Changes Jan–Jun 2021
Opening balance 01.01.2021	381.8	61.9	411.5	–110.9	0.0	50.7	795.1
Comprehensive income for the period			23.0	93.0	0.0	–211.1	–95.1
Closing balance 30.06.2021	381.8	61.9	434.6	–17.8	0.0	–160.4	700.0

Group Condensed cash flow statement

SEK millions	Q2 2022	Q2 2021	6 months 2022	6 months 2021	Full year 2021
Operating activities
Result before tax	36.5	–88.4	6.0	–208.6	–658.2
Adjustments:
Depreciation/impairment	43.8	57.5	86.0	113.7	501.0
Other items	86.8	–19.4	126.6	37.5	124.9
Cash flow from operating activities before changes in working capital	167.1	–50.2	218.6	–57.4	–33.5
Changes in working capital	–88.6	56.6	–110.9	83.5	68.3
Cash flow from operating activities	78.5	6.3	107.7	26.0	34.8
Investing activities
Sale of non-current assets	351.6	0.0	559.8	0.0	487.4
Investment in non-current assets	–0.8	–39.8	–0.8	–114.0	–191.5
Other financial items	–2.7	0.0	–2.2	0.0	0.0
Cash flow from investing activities	348.1	–39.8	556.8	–114.0	295.9
Financing activities
New loans	0.0	87.6	0.0	142.8	203.9
Amortisation of loans	–29.8	–19.7	–252.0	–63.3	–105.2
Other financing	–339.5	–27.5	–351.6	–71.5	–551.3
Cash flow from financing activities	–369.3	40.5	–603.6	7.9	–452.5
Cash flow for the period	57.3	7.0	60.8	–80.0	–121.9
Balance at beginning of period (Note 1)	19.9	45.1	15.9	130.2	130.2
Exchange differences (Note 2)	4.4	–0.5	4.9	1.4	7.6
Balance at end of period (Note 1)	81.6	51.6	81.6	51.6	15.9
Note 1. Balance consists of cash, bank balances and credit facility
Note 2. Exchange differences attributable to:
Cash and cash equivalents at beginning of the period	0.9	–2.7	1.3	4.9	12.4
Cash flow for the period	3.4	2.3	3.6	–3.4	–4.9
	4.4	–0.5	4.9	1.4	7.6

Parent Company Condensed income statement

SEK millions	6 months 2022	6 months 2021
Net sales	0.0	30.9
Operating costs, ships	0.3	–63.1
Other external expenses	–6.0	–6.1
Personnel expenses	–3.0	–5.5
Operating result	–8.8	–43.8
Result from subsidiaries	0.0	0.0
Other interest and similar income	11.2	63.8
Interest and similar expense	–61.4	–23.0
Result before tax	–59.1	–3.0
Tax	0.0	0.0
Result after tax	–59.1	–3.0

Condensed balance sheet

SEK millions	30 Jun 2022	30 Jun 2021
Assets
Ships and equipment	0.0	0.0
Financial assets	6.9	0.0
Investments in Group companies	675.5	746.4
Non-current receivables, Group companies	742.2	822.0
Total non-current assets	1,424.7	1,568.4
Current receivables	1.3	11.1
Receivables from Group companies	19.6	7.1
Cash and bank balances1)	0.0	11.5
Total current assets	20.9	29.6
Total assets	1,445.6	1,598.1
Equity and liabilities
Equity	266.6	436.4
Non-current liabilities	861.6	759.3
Current liabilities	317.4	402.3
Total equity and liabilities	1,445.6	1,598.1

1) Including restricted funds of SEK 0 (0) million.

Definitions Alternative performance measures1)

Bareboat charter

The shipowner charters out its ship uncrewed for a long period at fixed rates.

CO2 Carbon dioxide.

Carbon Intensity Indicator (CII)

An IMO regulation to assess a vessel's operational efficiency and which is gradually tightened.

Consecutive Voyage Charter (CVC) Consecutive Voyage Charter.

Damage to property

An event that results in damage to the vessel, and/or vessel equipment costing more than USD 2,000 to repair (excludes system/equipment failure).

Depreciation

Accounting deductions made in the company's financial statements in order to compensate for wear and ageing of its vessels and equipment.

DWT Deadweight tonnage – a measure of a vessel's maximum weight capacity.

Energy Efficiency eXisting ship Index (EEXI) An IMO measure and regulation to assess a vessel's operational efficiency and which is gradually tightened.

Energy Efficiency Operational Indicator (EEOI) An operational measure to assess a vessel's energy efficiency and CO2 emissions.

FFA

Forward Freight Agreement – a financial contract entitling the holder to buy or sell freight prices at a future date.

High potential near miss

Incident that could have resulted in a serious accident.

HSFO High sulphur fuel oil.

LSFO Low sulphur fuel oil.

Lost-time injury (LTI)

An accident that results in an individual being unable to carry out his or her duties or return to work on a scheduled shift on the day after the injury, unless this is due to delays getting medical treatment ashore. Also includes fatalities.

Lost-time injury frequency (LTIF)

Safety performance measure which is the number of LTIs per million exposure hours in man-hours (LTIF = LTIs x 1,000,000/ exposure hours).

Medical treatment case (MTC)

Work-related injury requiring treatment by a doctor, dentist, surgeon or qualified health professional. MTC does not include LTI, RWC, hospitalisation for observation or a consultative examination by a doctor.

MGO Marine gas oil.

NO^x Nitrogen oxides.

Restricted work case (RWC)

An injury that results in an individual being unable to carry out normal duties during a scheduled work shift or being temporarily or permanently assigned other duties on the day after the injury.

SO^x Sulphur oxides.

Spot market (open market)

Chartering of vessels on a voyage-by-voyage basis, with freight rates fluctuating virtually daily. The shipowner pays for the bunker oil and port charges.

Time charter

The shipowner charters out its ship complete and crewed for a long period at fixed rates. The charterer pays for the bunker oil and port charges.

Cash flow from operating activities

Result after financial net plus depreciation minus tax paid (cash flow before change in working capital and investments and before effect of ship sales). The Company believes that the key figure provides a deeper understanding of the Company's profitability.

EBITDA

Performance measure indicating operating result before interest, taxes, impairment, depreciation and amortisation. The Company believes that the key figure provides a deeper understanding of the Company's profitability.

Equity ratio

Equity as a percentage of total assets. The Company believes that the key figure makes it easier for investors to form a picture of the Company's capital structure.

Result before tax adjusted for impairment

Performance measure which indicates result before tax and impairment. The Company believes that the key figure provides a deeper understanding of the Company's profitability and better comparability over reporting periods.

Return on equity

Result after tax as an average of the last twelve months expressed as a percentage of average equity on a 12-month rolling basis. The Company believes that the key figure provides a deeper understanding of the Company's profitability.

Return on capital employed

Result after financial net plus finance costs as an average of the last twelve months expressed as a percentage of average capital employed on a 12-month rolling basis. Capital employed refers to total assets minus non-interest-bearing liabilities, including deferred tax liability. The Company believes that the key figure provides a deeper understanding of the Company's profitability.

Return on total capital

Result after financial net plus finance costs as an average of the last twelve months expressed as a percentage of average total assets on a 12-month rolling basis. The Company believes that the key figure provides a deeper understanding of the Company's profitability.

1) Alternative performance measures as defined by the European Securities and Markets Authority (ESMA).

EBITDA

SEK millions	Q2 2022		Q2 2021 6 months 2022	6 months 2021	Full year 2021
Operating result	58.9	–74.2	46.5	–176.1	–583.5
Depreciation/impairment	43.8	57.5	86.0	113.7	501.0
EBITDA	102.7	–16.7	132.4	–62.4	–82.6

Result excluding impairment and tax

SEK millions	Q2 2022		Q2 2021 6 months 2022	6 months 2021	Full year 2021
Result after tax	35.7	–89.7	5.2	–211.1	–658.2
Impairment	0.0	0.0	0.0	0.0	267.7
Tax	0.8	1.3	0.8	2.5
Result excluding impairment and tax	36.5	–88.4	6.0	–208.6	–390.5

Result per share excluding impairment and tax

	Q2 2022		Q2 2021 6 months 2022	6 months 2021	Full year 2021
Result excluding impair ment and tax, SEK million	36.5	–88.4	6.0	–208.6	–390.5
Number of shares	47,729,798	47,729,798	47,729,798	47,729,798	47,729,798
Result per share excluding impairment and tax, SEK	0.76	–1.85	0.13	–4.37	–8.18

Return on equity

SEK millions	6 months 2022	6 months 2021	Full year 2021
Result after tax	–444.0	–334.5	–660.4
Equity	378.0	817.6	587.9
Return on equity	neg	neg	neg

Return on capital employed

SEK millions	6 months 2022	6 months 2021	Full year 2021
Result after financial net	6.0	–208.6	–658.2
Finance costs	90.7	477.1	83.3
Result after financial net plus finance costs	96.7	268.5	–574.9
Total assets	2,054.4	2,999.9	2,599.9
Non-interest-bearing liabilities	–249.3	–223.3	–240.5
Capital employed	1,805.1	2,776.6	2,359.3
Return on capital employed	5.36%	9.67%	neg

Return on total capital

SEK millions	6 months 2022	6 months 2021	Full year 2021
Result after financial net	6.0	–208.6	–789.2
Finance costs	90.7	82.2	83.3
Result after financial net plus finance costs	96.7	–126.4	–705.8
Total assets	2,054.4	2,999.9	2,599.9
Return on total capital	4.7%	–4.2%	neg

Equity ratio

SEK millions	6 months 2022	6 months 2021	Full year 2021
Equity	342.6	700.0	296.3
Total assets	1,737.7	2,890.7	2,106.7
Equity ratio	20%	24%	14%

Accounting policies

This interim financial report in summary for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and relevant provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with chapter 9 of the Swedish Annual Accounts Act.

For the Group and Parent Company, the same accounting policies have been applied as in the most recent annual report.

The Concordia Maritime Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. The Group applies the same accounting policies and calculation methods in the quarterly reports as in the annual report for 2021, in addition to those described in this report.

The Group's interim report has been prepared in accordance with IAS 34 and the Swedish Annual Accounts Act.

The report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act. The Board of Directors and CEO confirm that the interim report provides a true and fair overview of the operations, financial position and performance of the Parent Company and Group, and describes material risks and uncertainties faced by the Parent Company and Group companies. This interim report has not been reviewed by the Company's auditors.

Gothenburg, 17 August 2022

Carl-Johan Hagman

Chairman

Stefan Brocker Board member

Ulrika Laurin Board member

Henrik Hallin Board member Erik Lewenhaupt CEO

Mats Jansson Board member

Quarterly overview

SEK millions	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020
Profit/loss items
Total income1)	180.8	124.1	151.2	165.6	208.4	179.6	165.7	210.7	300.7
Operating costs excluding impairment1)	–121.9	–136.6	–173.4	–283.1	–282.7	–281.4	–225.7	–224.8	–252.2
Operating result (EBIT)	58.9	–12.5	–290.0	–117.5	–74.2	–101.9	–59.9	–14.0	48.5
of which result from sale of investments in jointly-controlled entities (vessels)	0.0	0.0	0.0	0.0	0.0	—	—	—	—
Financial net	–22.5	–18.0	–18.2	–24.0	–14.2	–18.3	–26.5	–21.9	–20.2
Result before tax	36.5	–30.4	–308.2	–141.4	–88.4	–120.2	–86.5	–35.9	28.3
Result after tax	35.7	–30.5	–307.8	–141.4	–89.7	–121.4	–87.4	–35.9	28.3
Cash flow from operating activities	78.5	29.2	–1.4	10.2	6.3	19.7	–62.1	21.2	238.9
EBITDA	102.7	29.7	36.6	–56.8	–16.7	–45.7	–4.6	45.1	114.1
Balance-sheet items
Ships (number)	1,534.5 (8)	1,586.7 (9)	1,973.3 (11)	2,252.9 (11)	2,685.3 (13)	2,771.6 (13)	2,599.1 (13)	2,820.1 (13)	2,954.5 (13)
Ships under construction (number)	0	0	0	0	0	0	0	0	0
Liquid funds incl. investments	81.6	19.9	15.9	34.5	51.6	45.1	130.2	264.4	346.6
Other assets	112.8	138.3	117.5	131.9	156.7	166.1	145.2	167.0	167.0
Interest-bearing liabilities	1.133,6	1,425.2	1,587.6	1,587.1	1,963.8	1,968.1	1,656.5	2,047.9	2,199.6
Other liabilities and provisions	276.1	251.7	222.8	236.1	226.9	255.7	423.0	192.6	191.2
Equity	342.6	276.9	296.3	596.2	700.0	759.0	795.0	1,011.0	1,077.3
Total assets	1,737.7	1,953.8	2,106.7	2,419.3	2,890.7	2,982.8	2,874.6	3,251.5	3,468.2
Key figures, %
Equity ratio	20	14	14	25	24	25	28	31	31
Return on total capital	5	2	–27	–10	–4	–1	1	3	3
Return on capital employed	5	2	–24	–11	–5	–1	2	3	3
Return on equity	–117	–122	–112	–62	–41	–24	–7	0	0
Operating margin	33	–10	–192	–87	–36	–57	–36	–7	16
Share data
Total income1)	3.79	2.60	3.17	3.47	4.37	3.76	3.47	4.41	6.30
Operating costs excluding impairment	–2.55	–2.86	–3.63	–5.93	–5.92	–5.90	–4.73	–4.71	–5.28
Operating result	1.23	–0.26	–6.08	–2.46	–1.55	–2.13	–1.26	–0.29	1.02
Financial net	–0.47	–0.38	–0.38	–0.50	–0.30	–0.38	–0.56	–0.46	–0.42
Result after tax	0.75	–0.64	–6.45	–2.96	–1.88	–2.54	–1.83	–0.75	0.59
Cash flow from operating activities	1.64	0.61	–0.03	0.21	0.13	0.41	1.30	0.44	5.01
EBITDA	2.15	0.62	0.77	–1.19	–0.35	–0.96	–0.10	0.95	2.39
Equity	7.18	5.80	6.21	12.49	14.67	15.90	16.66	21.18	22.57

Definitions, see page 14.

1)Accounting policies, see page 16.

Other information

Related party transactions

Vessel charter

Concordia Maritime has a small internal organisation, and purchases services from related-party companies in the Stena Sphere, which include Stena Bulk. The latter company conducts tanker business that coincides with Concordia Maritime in some respects.

Accordingly, there is an agreement, entered into many years ago, which regulates the relationship between the two companies with respect to purchasing or chartering of vessels. Under the terms of this agreement, Concordia Maritime has the right to opt for 0, 50 or

100 percent participation in each new transaction (with the exception of shorter transactions of less than 12 months).

At the end of Q2 2022, all P-MAX vessels apart from one were on 5-year charters to Stena Bulk.

Stena Bulk specialises in transportation of refined petroleum products and vegetable oils and has offices in five countries. Learn more at www.stenabulk.com.

Concordia Maritime purchases services on a regular basis from the Stena Sphere in the following areas

Payment is based on a commission of 1.25 percent on freight rates. Operation and manning of the Group's vessels (ship management) Payment is based on a fixed price per year and vessel, with an

Commercial operation, administration, marketing, insurance, technical monitoring and development of Concordia Maritime's fleet Payment is based on a fixed price per month and vessel. With regard to technical consulting services for newbuild projects, an hourly rate is applied on a cost-plus basis, which is then charged to the project.

additional payment for manning of vessels.

Office rent and office services A fixed annual price is charged.

Financing agreement

Concordia Maritime AB has been granted a credit facility under an agreement with AB Stena Finans. The Company has obtained financing for ballast water treatment installations under an agreement with Tritec Marine Ltd.

Purchase of services from Stena Sphere

	Q2		6 months	Full year
SEK millions	2022	2021	2022	2021	2021
Group	40.9	64.7		93.9 126.3	246.2
Crewing	39.1	56.5	90.7	110.7	222.3
Administration	1.1	5.1	1.9	10.2	15.6
Chartering & commercial operation	0.7	3.0	1.3	5.4	8.3
Parent Company	0.4	0.3	0.5	0.4	1.0

All related party transactions are conducted on commercial terms and at market-related prices.

Fleet employment

Ships	DWT	Ice class	Year	Employment	Stena Bulk's employment of vessel 17/08/2022
P-MAX
Stena Performance	65,200	1B	2006	Time charter to Stena Bulk to August 2026	Market-related contract, CPP1), Atlantic.
Stena Penguin	65,200	1A	2010	Time charter to Stena Bulk to August 2026	Time charter to April 2023, DPP2), Atlantic.
Stena Polaris	65,200	1A	2010	Bareboat charter to Crowley to January 2023 with extension options until end 2026, CPP1), Atlantic.
Stena Premium	65,200	1B	2011	Time charter to Stena Bulk to August 2026	Time charter to May 2023 with option 18 months, CPP1), Atlantic.
Stena Primorsk	65,200	1B	2006	Time charter to Stena Bulk to August 2026	Spot, DPP2), Asia.
Stena Progress	65,200	1B	2009	Time charter to Stena Bulk to August 2026	Time charter to April 2023 with option 18 months, CPP1), Atlantic.
Stena Provence	65,200	1B	2006	Time charter to Stena Bulk to August 2026	Market-related contract, CPP1), Atlantic.

1) Clean Petroleum Products.

2) Dirty Petroleum Products.

Erik Lewenhaupt, CEO Tel +46 704 85 51 88 erik.lewenhaupt@ concordiamaritime.com

Martin Nerfeldt, CFO Tel +45 88 93 86 61 or +46 704 85 50 07

martin.nerfeldt@ concordiamaritime.com

Contact Calendar

Q3 2022 10 November 2022 Q4 2022 9 February 2023

This information is information that Concordia Maritime Aktiebolag (publ) is obliged to publish in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was provided by the contact persons on the left for publication on 17 August 2022 at 13.00 CET.

Concordia Maritime SE-405 19 Gothenburg, Sweden Tel +46 31 85 50 00 Corp. ID 556068-5819 www.concordiamaritime.com