Standard Supply AS — Earnings Release 2022

Nov 15, 2022

STSU: THIRD QUARTER 2022 FINANCIAL RESULTS

STSU: THIRD QUARTER 2022 FINANCIAL RESULTS

Oslo, Norway, November 15th 2022

Standard Supply AS (Standard Supply, OSE:STSU) reported an EBITDA of USD 4.8 million in the third quarter of 2022, up from USD 0.1 million in the same quarter in 2021, and a net profit of USD 3.0 million (-1.6 million). The time charter equivalent earnings were approximately USD 15,600 per day and the utilization was 96% based on availability. Standard Supply has a solid financial position and reiterates the market outlook.

“Since the IPO we have nearly doubled our earnings capacity through investing more than USD 35 million into modern PSV tonnage. These acquisitions have been done at 50-65% discount to replacement cost, and with the recent improvements in time charter rates we are seeing payback periods as short as two to three years,” says Martin Nes, Chairman of the Board of Standard Supply.

Standard Supply reported revenues of USD 9.7 million in the third quarter 2022, up from USD 2.8 million in the same quarter in 2021, and an EBITDA of USD 4.8 million (0.1 million), following time charter equivalent earnings of USD 15,600 per day and a utilization of 96% based on availability. The company was incorporated in 2022, and historical figures refers to companies prior to the capital reorganization. At the end of the third quarter 2022 the company held cash of USD 25.1 million.

After the closing of the quarter, Standard Supply raised approximately NOK 200 million in a private placement for further growth in the PSV segment. The offering was significantly oversubscribed.

“In October around 30 term deals were concluded in the North Sea, representing a three-fold increase from September. This is clearly indicating that charterers are looking to firm up capacity ahead of the new season. Standard Supply has fixed out the FS Kristiansand for 1-year in a charter that will generate more than USD 3 million of EBITDA. Moreover, the Standard Defender has secured a strong rate of USD 18,500 per day for a winter campaign of approximately 140 days in West Africa, before returning to the North Sea in the spring of 2023. With the growing rig count in the UK, we remain upbeat about the outlook for the year ahead,” Nes concludes.

The third quarter report- and presentation is enclosed.

ENDS

For further information, please contact:

CEO Espen L. Fjermestad at +47 95 20 44 93

Chairman of the Board Martin Nes at +47 92 01 48 14

About Standard Supply | standard-supply.com

Standard Supply owns a fleet of nine platform supply vessels (PSVs); three large-sized, one medium-sized commencing operations in November 2022 and five medium-sized PSVs with 51% ownership interest. Standard Supply will actively seek further growth opportunities and is well positioned to capture improvements in the market with most of the fleet trading in the spot market. The company has a clear ambition to return excess cash to its shareholders.