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ADS Maritime Holding Plc - Q3 report 2024 Nov 13, 2024 ADS Maritime Holding Plc announces the release of its Q3 2024 report available below. ADS Maritime Holding Plc ("The Company" or "ADSMH") is a shipping investment company established in 2018 and listed on the Euronext Growth Oslo Stock Exchange with the ticker symbol "ADS". The Company focuses on making counter-cyclical investments within the maritime sector. A typical investment can be ownership of 10% - 25% of a shipping project, whereby the Company may also earn fees through various roles such as Arrangement fees, Business Management fees and Commercial Management fees. Should the opportunity arise for a larger investment that is attractive and fits the strategy, the Company will seek to raise external debt and/or equity to fund such growth. Furthermore, ADSMH is also open to investing in other financial instruments within the maritime sector. The investments During the first three quarters of 2024, the Company's investment portfolio has consisted of the following investments: 1. Profit and Loss Sharing Agreement ("PLSA") - subscribed for 20% interest in VLCC In April 2022, ADSMH entered into a PLSA for a 20% interest in the VLCC "FPMC C Melody" (built 2011) which is trading in Navig8 VL8 pool. The VLCC PLSA was firm until May 2023 with an option period of 12 months until May 2024, which was declared in March 2023. Further it was in April 2023 agreed to extend the contract for a further 2 months ending August 5 th , 2024. If the pool earnings related to the vessel are higher than the charter rate guaranteed to the vessel owner, ADSMH receives its 20% share of the surplus. Similarly, ADSMH will be liable to pay the vessel owner its share of the shortfall below the guaranteed charter rate, should the pool earnings fall below this threshold. During first half year 2024, the market for VLCCs has been favorable, resulting in solid cash flow to ADSMH from this investment. After the contract ended in August 2024, we have received USD 337,6 payback which was paid in working capital when we entered into the contact. 2. Profit and Loss Sharing Agreement ("PLSA") - subscribed for 20% interest in MR tanker In May 2022, ADSMH entered into a PLSA for a 20% interest in the MR tanker "Ayoe" (built 2020) which is trading in Navig8 ECO MR pool. The MR tanker PLSA is firm for 36 months until June 2025. As for the VLCC PLSA, if the pool earnings related to the vessel are higher than the charter rate guaranteed to the vessel owner, ADSMH receives its 20% share of the surplus. Similarly, ADSMH will be liable to pay the vessel owner its share of the shortfall below the guaranteed charter rate, should the pool earnings fall below this threshold. During first half year 2024, the market for MR tankers has been favorable, resulting in solid cash flow to ADSMH from this investment. During Q3 the MR market has weakened, however the cashflow has been marginally positive. 3. AET Sea Shuttle ("AET") - investment in shuttle tankers In June 2022, the Company acquired a 5% shareholding in AET Sea Shuttle AS and AET Sea Shuttle II AS, the owners of 4 modern shuttle tankers (of which two are built in 2015 and two in 2019) operating in the North Sea, mainly on long term charters to Equinor. The purchase of the shares in 2022 was financed by an interest free sellers' credit with no interest and instalments for the first 2 years. The loan has been refinanced in June 2024 with a USD 6 mill downpayment with the remaining amount to continue with no instalments for the next 2 years, interest on the loan will be SOFR + 4% margin payable quarterly. Year to date Q3 2024, the Company has not received dividend from the AET investment. 4. United Overseas Products AS ("UOP") - investments in MR tankers In October 2022, ADS acquired a 10% shareholding in UOP, which owns the MR tanker vessels "UOG Oslo" (built 2010) and "UOG Sparta" (built 2009). In addition to the ownership of the vessels, the Company is also acting as Disponent Owner for the project. UOP decided to sell UOG Sparta and MOA (Memorandum of Agreement) was signed in Q1 2024. The vessel has been successfully delivered to the new owner in May 2024. A repayment of capital to the shareholders has been decided and ADS received USD 1 400k repayment of capital in July 2024. 5. ParDive Subsea AS ("ParDive") - investment in Dive Support Vessel In March 2023, the Company acquired a 10% shareholding in ParDive Subsea AS, the owner of the Dive Support Vessel "Southern Star" (built 2017) and will act as Commercial Manager with primary responsibility for following up the shipowning company's activities related to the vessel and its employment. The Company has during Q3 2024 received USD 188K and year to date Q3 2024 USD 555k repayment of invested capital. 6. Golden Ocean Group "GOGL" - share acquisition in listed shipowning dry bulk carrier On 6 June 2023, the Company acquired 130.000 shares in Golden Ocean Group (ticker "GOGL" on Oslo Stock Exchange) at market terms of NOK 84,222 per share. 45.000 shares were sold during Q1 2024 with profit. The company received USD 26k in dividend during Q1 2024 and USD 26k during Q2 2024. Remaining 85.000 shares has been sold in Q3 2024 2024 with profit. Financial results Since the Company does not hold any controlling interest in the various shipowning companies it is invested in, the vessel's revenue and operational expenditures are not consolidated in the Profit and Loss statement. In general, the Company's investments will therefore be reflected in the Profit and Loss statement in the following way: 1. Revenue typically consists of dividends received and various management fees. 2. Both the direct shipping investments (AET, UOP and ParDive), the PLSA agreements and GOGL shares (sold Q3 2024) are categorized as financial assets. Fair value assessments are made regularly for all investments, and any change in the fair value will be categorized in Net finance. In Q3 2024, the Company reports revenue of USD 30k and year to date Q3 2024 USD 185k, which compares to USD 53K in Q3 2023 and USD 1 026k year to date Q3 2023. The main change in revenue is due to less dividend received in 2024 compared to 2023. Total operating expenses during Q3 2024 were USD 267k and year to date Q3 2024 USD 772k, which compares to USD 249k in Q3 2023 and year to date Q3 2023 USD 847k. The main change in operating expenses year to date Q3 2024 compared to year to date Q3 2023 is less personnel cost due to reduction in headcount and increased fees. Finance cost of USD 275k in Q3 2024 and year to date Q3 2024 USD 677k which compares to USD 608k in Q3 2023 and year to date 2023 USD 903k is related to currency effects and increase interest related to the AET investment loan refinancing. Finance income of USD 792k in Q3 2024 and USD 2 372K year to date Q3 2024 is mostly related to the fair value assessment of the financial assets as well as interest income earned from cash deposits. Profit before tax was USD 280k in Q3 2024 and USD 1 108k year to date 2024, which compares to a profit of USD 433k in Q3 2023 and USD 1 597k year to date Q3 2023. The Company holds total assets of USD 27,383 mill of which USD 8,424 mill is cash and cash equivalents. Total equity is USD 21,291 mill or 77,8% of total assets. Total cash and cash equivalents reduced by USD 1,499 mill to USD 8,424 mill year to date Q3 2024. No new investments were made in 2024. Net cashflow adjusted for MUSD 6 downpayment on the AET financing and sale of GOGL shares was USD 2,873 mill. from operating related activities. Risk factors The Company is exposed to several segments within the shipping industry, all of which are exposed to various types of risks. For further details on the risk factors The Company is exposed to, please see note 3 of the 2023 Annual Report. Full report ADS Maritime Holding Plc - press release 
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