-2300 Copenhagen S
Company reg. no. 39 06 70 64
2023 Annual Report
The report was presented and approved at the Annual General Meeting
Anette Ryde
, Chairman of the meeting
C
openhagen 25 March 2024
MAERSK PRODUCT TANKERS A/S
MANAGEMENT REVIEW
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CONTENTS
Management review
..................................................
3
Management review
...............................................................................................
4
Energy value chain
..................................................................................................
6
Key figures and financial ratios
...........................................................................
7
Sustainability
............................................................................................................
9
Financial statements
................................................
12
Reports
.........................................................................
46
Statement of the Board of Directors and the Executive
Management
...........................................................................................................
47
Independent auditor’s report
............................................................................
48
Additional information
...........................................
50
Board of Directors
..................................................................................................
51
Executive Management
.......................................................................................
53
MAERSK PRODUCT TANKERS A/S
MANAGEMENT REVIEW
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MANAGEMENT REVIEW
MAERSK PRODUCT TANKERS A/S
· MANAGEMENT REVIEW
MAERSK PRODUCT TANKERS A/S
MANAGEMENT REVIEW
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MANAGEMENT
REVIEW
Maersk Product Tankers is a significant player in the product tanker
industry, owning 44 vessels which carry refined energy products
worldwide for customers. The company is owned by A.P. Møller
Holding A/S and Mitsui & Co., Ltd. and is headquartered in
Copenhagen, Denmark.
The company’s fleet strategy has vessel safety, reliability and
efficiency at its core to service customers and optimise value for
owners.
Maersk Tankers is responsible for the commercial and corporate
management of the Maersk Product Tankers fleet, while Synergy
Group is responsible for the fleet’s technical management. The three
parties work together to ensure that the vessels are deployed and
operated optimally to boost environmental and economic
performance.
FINANCIAL HIGHLIGHTS
Maersk Product Tankers delivered strong results in 2023 with
revenue of USD 639.9 million (USD 708.3 million), a result before tax
of USD 250.4 million (USD 266.5 million) and a positive free cash flow
of USD 351.9 million (USD 440.0 million). The results were positively
impacted by high spot market rates and have been supported by
gains from the sale of vessels.
MARKET
2023 was an exceptional year for product tankers. Average earnings
in 2023 exceeded 2022's already historic levels and asset prices
continued to climb. The start of 2023 was marked by the Russian oil
sanctions deadlines that added to ton-mile demand – re-routing
Russian crude to China and India and clean products to South
America. The lift in ton-miles was significant and finally enough to
get tanker demand to hold meaningfully above pre-COVID levels. The
outsized earnings in 2023, much like in 2022, were primarily caused
by strong arbs (regional oil price differentials) caused by massive
disruptions to an oil market with limited slack (inventory cushion).
Earnings moved down during the year with growing US oil production
taking pressure off the need for wide arbs to redistribute the
marginal barrel. The end of 2023 was marked by added disruptions –
first, the Panama Canal restrictions, and, subsequently, conflicts in
the Red Sea. These disruptions provide additional support to tanker
earnings.
ACTIVITIES DURING THE YEAR
In a market with continued high activity in the sale and purchase of
vessels caused by increased tanker demand and surging asset prices,
we sold seven vessels of older tonnage at attractive prices. We
delivered six vessels during the year and expect to deliver the last
vessel in early 2024. By year end, the fleet totalled 44 vessels
compared to 50 vessels in 2022.
ENERGY EFFICIENCIES
Together with Maersk Tankers’ green tech business Njord, we
continued to invest in energy-saving technologies to boost the
environmental and economic performance of our fleet.
Over the last few years, Maersk Product Tankers has applied 20
different technologies and 300 installations across the fleet to make
it more efficient. In 2023 alone, we applied 5 different technologies
and conducted close to 40 different installations. All technologies
are focused on fuel savings which will translate to lower CO2
emissions, contributing to environmental sustainability. While exact
savings depend on factors like route, weather and operating
conditions, the combined effect of all technologies are expected to
achieve fuel consumption reductions of up to 10%.
VLACS
In December 2023, MPT entered into a contract for 4 VLACs to be
built at Hyundai Samho Heavy Industries in Korea to be delivered
from late 2026.
SAFETY
It has been saddening to see how geopolitical events – most recently
the conflicts in the Red Sea – put seafarers and vessels in danger. The
safety of our people, cargo and assets is our utmost priority. To
protect their safety, we are monitoring the geopolitical situation
closely, and take cautionary measures when and where needed.
OUTLOOK
In 2024, geopolitical events will remain a key driver for the market
and visibility is limited. We expect markets to remain above average
but subject to considerable volatility that could impact market levels
in either direction. The underlying fundamental picture continues to
improve with demand growth for tankers outpacing supply growth,
supporting a longer-term positive outlook for product tankers. We
expect the EBIT for Maersk Product Tankers in 2024 to be between
USD 150m and USD 250m.
RISKS
Freight Rates
Maersk Product Tankers is exposed to fluctuations in global freight
rates, bunker prices and vessel prices. Vessels are largely exposed in
the spot market, but coverage is applied selectively if deemed
attractive. Currently, 11% of vessel days in 2024 have been covered
through time-charters.
MAERSK PRODUCT TANKERS A/S
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Currency and Interest rates
Maersk Product Tankers’ income is mainly in USD, whereas spending
is spread across several currencies, including USD. It is Maersk
Product Tankers’ policy to hedge at least 50% of the currency effect
of non-USD denominated operating costs for the next 12 months and
hedge at least 80% of the currency effects of committed financial
and investment cash flows. As of 31 December 2023, Maersk Product
Tankers had 55% (55% in 2022) of the exchange rate risk of its full
year 2024 spend hedged through the use of FX hedges.
Maersk Product Tankers’ primary financing currency is USD. On June
30, 2023, LIBOR ceased to exist, and the company’s LIBOR-based
financings were transitioned to SOFR. As SOFR is a floating interest
rate (as is LIBOR), the company is exposed to changes in interest
rates. It is Maersk Product Tankers’ policy to have at least 50% of its
total debt on a fixed interest rate-equivalent basis, either through
outright fixed-rate financing or by hedging floating-rate financing. As
of 31 December 2023, 58% (85%) of Maersk Product Tankers’ total
debt was, by nature or through the use of swaps, fixed rate. The
change of the fixed rate ratio from 85% in 2022 to 58% is due to the
refinancing of a term loan where the related interest rate swap was
terminated.
Counterparties
Maersk Product Tankers has exposure to financial and commercial
counterparties through pools where ships are operated. The pools
themselves provide diversification, but also manages those
exposures through the use of credit risk frameworks. To manage
credit risks, a limit structure and vetting process has been put in place
for all counterparties to avoid concentrations of credit exposure on
particular counterparties or risk tranches.
MAERSK PRODUCT TANKERS A/S
MANAGEMENT REVIEW
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VESSEL SEGMENTS IN MAERSK PRODUCT TANKERS’ FLEET
(2023)
ENERGY VALUE CHAIN
Of the world’s seaborne transportation, 8% is carried out by product tanker vessels
(Clarksons)
. Companies operating in the industry carry energy products from
refineries to distribution points determined by customers who are mainly energy majors and trading houses.
INTERMEDIATE
15-20,000 dwt
Trading area: Northwest
Europe, Asia
Products: Clean, dirty
HANDY
25-42,000 dwt
Trading area: Global
Products: Clean, dirty, chemicals, vegetable
oils
MR
45-55,000 dwt
Trading area: Global
Products: Clean, dirty,
vegetable oils
Exploration and Production
Refining
Shipping–
Crude Tankers
Distribution
Retail
Shipping –
Product Tankers
PRODUCTS
Clean Petroleum Products (CPP)
, e.g. gasoline, diesel, naphtha and jet fuel, mainly used in transportation, industrial and chemical industries
Dirty Petroleum Products (DPP)
, e.g. fuel oil and crude oil, mainly used for refining or industrial purpose, incl. transportation
Vegetable and other edible oils
, e.g. sunflower oil, mainly used in the food industry
MAERSK PRODUCT TANKERS A/S
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Please see definitions in Note 18 of the consolidated financial statements.
KEY FIGURES AND FINANCIAL RATIOS
Amounts in USD million
Income statement
2023
2022
2021
2020
2019
Revenue
639.9
708.3
433.0
663.6
727.7
Profit before depreciation and impairment losses (EBITDA)
308.1 324.4
69.5
210.8
202.9
Depreciation and amortisation
-74.0
-88.7
-100.1
-105.2
-114.0
Impairment reversals and losses
6.7
20.9
10.1
80.4
36.4
Gain/loss on sale of non-current assets, etc., net
32.1
40.4
11.6
11.8
6.7
Profit/loss before financial Items (EBIT)
272.9
297.0
-8.9
197.8
132.0
Financial items, net
-22.5
-30.5
-49.7
-39.0
-40.7
Profit/loss before tax
250.4
266.5
-58.6
158.8
91.3
Tax
10.9
1.9
12.5
1.9
1.0
Profit/loss for the year
261.3
268.4
-46.1
160.7
92.3
Balance sheet
Total assets
987.8
996.9
1,148.8
1,486.9
1,527.5
Total equity
441.2
484.2
353.4
626.5
543.1
Net investments in property, plant and equipment
- 60.5
- 96.6
-266.5
-204.1
-253.9
Cash flow statement
Cash flow from operating activities
316.7
245.0
29.1
192.4
158.3
Cash flow used for investing activities
35.2
195.0
277.4
-9.2
-169.4
Free cash flow
351.9
440.0
306.5
183.2
-11.1
Financial ratios
Profit margin
48.2%
45.8%
16.0%
31.8%
27.9%
Equity ratio
44.7%
48.6%
30.8%
42.1%
35.6%
Return on equity
56.5%
64.1%
-9.4%
27.5%
18.3%
MAERSK PRODUCT TANKERS A/S
MANAGEMENT REVIEW
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MAERSK PRODUCT TANKERS A/S
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The shipping industry plays a critical role in providing the world with
a reliable supply of energy. It is an efficient and dependable mode of
transportation that enables people and economies to thrive.
The industry, by its very nature, is global with multiple stakeholders
in its supply chain. Its impact on people and the planet comes with a
responsibility to consider and promote the integration of economic,
social and environmental activities into core business practices.
Maersk Product Tankers’ business model is focused on the ownership
of tanker vessels and the safe, reliable transportation of energy
products globally through the partnership with Maersk Tankers as
commercial and corporate manager and Synergy Group as technical
manager.
As values-led companies, Maersk Tankers and Maersk Product
Tankers are committed to the United Nations Global Compact (UNGC)
principles on human rights, labour, anti-corruption, and the
environment. The health and safety of employees, as well as the
safety of vessels and cargoes, continue to be of the highest priority.
Both Maersk Tankers and Synergy Group are members of various
partnerships that are actively seeking to ensure safe and sustainable
shipping. This includes being a committed United Nations Global
Compact signatory and member of Getting to Zero Coalition, the
Maritime Anti-Corruption Network, and the Singapore Shipping
Association.
Maersk Product Tankers depends and relies on the policies, actions
and results of Maersk Tankers and Synergy Group. However, this does
not diminish the importance of sustainability to Maersk Product
Tankers. The various sustainability areas – climate, social and
employee responsibility, human rights and anti-corruption – are in
the following addressed with references to policies, ongoing work
and results within both Maersk Product Tankers and the partner
organisations.
CLIMATE
Addressing climate change remains a priority for Maersk Product
Tankers. As a significant player in global trade and a contributor to
worldwide CO2 emissions, the shipping industry faces a continuous
challenge to decarbonise and evolve sustainably.
This year, we have maintained our robust commitment to reducing
emissions and enhancing operational efficiency. In 2023, Maersk
Product Tankers’ fleet emissions have shown a notable decrease,
now 31% lower than in 2008 (29.8 % in 2022), as measured on the
Energy Efficiency Operational Indicator (EEOI). The EEOI is an
industry-wide measure of CO2 emissions per unit of cargo, expressed
as g/tonne-mile.
This result was achieved by trading the vessels as part of Maersk
Tankers’ large-scale set-up, a change in the fleet composition due to
the sale of older vessels, and by investing further in the fuel
efficiency of our vessels.
In our pursuit to cut emissions, we ensure our vessels maintain their
fuel efficiency and optimise performance. As part of this, a total of
13 vessels dry docked in 2023. Based on the vessels’ voyage profile,
premium hull coatings were applied to further enhance hull
performance and improve fuel efficiency.
The collaboration between Maersk Product Tankers and its partners,
including Njord, has been instrumental in driving fuel efficiency
performance and sharing technical expertise. Together, we have
applied 20 different technologies and 300 installations across the
fleet, significantly enhancing efficiency.
Additionally, our use of the ZeroNorth digital platform across our
entire fleet has been crucial in ensuring vessels sail at optimal
speeds, further cutting fuel consumption.
Through Maersk Tankers, we are also committed to transparency in
reporting our vessels' emissions, adhering to the Sea Cargo Charter's
guidelines. This transparency is vital for demonstrating our progress
and commitment to stakeholders.
SAFETY
Protecting the safety and welfare of our seafarers remains our top
priority. In 2023, three cases of personal injury were recorded on
board MPT vessels, compared to four cases recorded in the previous
year 2022. In 2023 we had a Total Recorded Case Frequency (TRCF)
of 0.37 and a Lost Time Incident Frequency (LTIF) of 0.25.
Two significant events in 2023 were a Lost Time Incident (LTI) due to
a severe head injury of a crew member while working onboard; and
the tragic occurrence of a missing crew member at sea. In both cases
Maersk Product Tankers, along with our technical managers have
provided full support to the family members of the crew members,
in accordance with the company Core Values. Lessons learnt from
safety incidents are thoroughly analysed and shared within the
Maersk Product Tankers fleet.
There were no overboard spills during the year and we have been
working closely with our Technical Managers, to strengthen our zero-
harm commitment to the environment.
SUSTAINABILITY
MAERSK PRODUCT TANKERS A/S
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The marine industry is evolving and to keep up with the changing risk
profile of the tanker industry, an updated SIRE programme (SIRE 2.0)
is expected to be launched later in 2024. One of the main areas how
SIRE 2.0 will incorporate human factors is how physical,
psychological and social factors affect human interaction with
equipment, processes, and other people. Our technical managers
have been focusing on training personnel onboard and ashore in
preparing for SIRE 2.0 inspections.
We retain our steadfast commitment to safety, and we keep our
ambition of running zero-incident operations.
RESPONSIBLE BUSINESS
Conducting business in a responsible manner is imperative for Maersk
Product Tankers. We remain steadfast in our commitment to
eliminating corruption and ensuring compliance to sanctions, and
laws and regulations, as well as safeguarding human rights.
To ensure the fleet is trading in compliance with sanctions, we are
working with Maersk Tankers’ sanctions team of legal experts. They
are monitoring geopolitical developments, so we can respond quickly
when sanctions are introduced or changed. The industry has seen 12
new sanctions packages introduced by the EU (the latest in January
2024) in the wake of Russia’s invasion of Ukraine. To ensure
compliance in our operations, the team is following procedures and
using screening tools. In 2023, as a result of the work, the fleet traded
in compliance with these complex sanctions landscape.
We are taking measures to eliminate corruption, which undermines
social and economic development in society and destabilises
business. We take a zero-tolerance stand on corruption of any kind.
Maersk Tankers is a member of the Maritime Anti-Corruption
Network (MACN); the company works with anti-corruption
organisations; its code of conduct for third parties references its
stance and expectations on anti-corruption and bribery; and its
employees undertake mandatory anti-corruption training. Synergy
Group has continued to ensure robust enforcement of its strict anti-
corruption policy, including zero-tolerance to facilitation payments.
As a company that operates globally, we have a large network of
suppliers. We work with our strategic partners to ensure suppliers
conduct business responsibly in accordance with international and
own company standards. Maersk Tankers has, for example, in its
Third-Party Code of Conduct set out minimum requirements for the
Maersk Tankers business and all direct counterparties, including but
not limited to customers, partners, suppliers, and all parties acting
on behalf of Maersk Tankers in connection with vessels managed by
Maersk Tankers. Maersk Tankers require that all counterparties
operate in accordance with responsible business principles detailed
in the Code of Conduct and in full compliance with all applicable laws
and regulations. The Code of Conduct deals with business ethics,
health and safety, environment, working conditions and employment
practices, including human rights, and diversity, equity and inclusion.
Maersk Tankers progressed the work in 2023. Contracts with strategic
suppliers include a reference to the Third Party Code of Conduct or to
the suppliers’ own equivalent if this is, as a minimum, on a par with
the company’s standards. Together with Maersk Tankers and Synergy
Group, we will continue the work to make our supply chain more
sustainable, which includes asking suppliers to meet social and
environmental requirements and ensuring procurement contracts
reflect environmental concerns.
Maersk Product Tankers has nominated Synergy Denmark (part of
Synergy Group) as the ISM (International Safety Management)
manager for MPT fleet. In line with their responsibility to fulfil the
safety management requirements of the ISM code, they also pay
attention to the areas of risks and responsibility in ensuring human
rights of seafarers as part of everyday business. Risks identified are
addressed by ensuring compliance with the Maritime Labour
Convention and standards included in their policies related code of
conduct and contractual obligations.
We have an unwavering commitment to sustainability and in close
collaboration with our partner organisations we will continue to work
to create a positive impact for society and the planet.
You can read about Maersk Tankers’ sustainability work at:
https://maersktankers.com/strategy/sustainability
DIVERSITY, EQUITY AND INCLUSION
We are committed to diversity, equity, and inclusion and believe in
the value it brings as a catalyst for innovation which the shipping
industry needs in finding new solutions to complex challenges such
as climate change.
The dedicated work of Maersk Tankers, our commercial and
corporate manager as well as strategic partner, in this area over the
years is and has been important to us.
Management
Level
Number of
members
Share of under-
represented gender
Board of
directors
underrepresented
gender is 1 out of 4)
Other
management
levels
underrepresented
gender is 1 out of 3)
MAERSK PRODUCT TANKERS A/S
MANAGEMENT REVIEW
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MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
12
FINANCIAL STATEMENTS
Consolidated financial statements | Parent company financial statements | Management’s statement
| Independent auditor’s report
MAERSK PRODUCT TANKERS A/S
2023 ANNUAL REPORT·
FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
13
CONSOLIDATED
FINANCIAL STATEMENTS
Consolidated income statement | Consolidated statement of comprehensive income
| Consolidated balance sheet at 31 December | Consolidated cash flow statement
| Consolidated statement of changes in equity | Notes to the consolidated financial
statements
MAERSK PRODUCT TANKERS A/S
2023 ANNUAL REPORT· FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
14
FINANCIAL STATEMENTS
CONTENTS
Consolidated financial statements .................................................. 13
Consolidated income statement for 1 January to 31 December ..................................................... 14
Consolidated statement of comprehensive income .......................................................................... 14
Consolidated balance sheet at 31 December ......................................................................................... 15
Consolidated cash flow statement ........................................................................................................... 16
Consolidated statement of changes in equity ...................................................................................... 16
Notes to consolidated financial statements................................ 17
Note 1: Operating costs ................................................................................................................................... 18
Note 2: Gain on sale of non-current assets, etc., net .............................................................................. 18
Note 3: Financial income and expenses ..................................................................................................... 18
Note 4: Tax ......................................................................................................................................................... 19
Note 5: Property, plant and equipment incl. impairment ..................................................................... 19
Note 6: Leases .................................................................................................................................................. 20
Note 7: Assets held for sale and assets sold during the year ............................................................... 21
Note 8: Borrowings .......................................................................................................................................... 21
Note 9: Net debt ............................................................................................................................................... 22
Note 10: Provisions .......................................................................................................................................... 23
Note 11: Financial instruments by category .............................................................................................. 23
Note 12: Financial risks, etc. .......................................................................................................................... 24
Note 13: Commitments ................................................................................................................................. 26
Note 14: Cash flow specifications ................................................................................................................ 26
Note 15: Derivatives ..........................................................................................................................................27
Note 16: Related parties ................................................................................................................................. 28
Note 17: Contract balances .......................................................................................................................... 28
Note 18: Significant accounting policies ................................................................................................. 28
Note 19: Significant accounting estimates and judgements ............................................................ 30
Note 20: Contingent assets, liabilities and pledges ............................................................................ 33
Note 21: Events after the balance sheet date ....................................................................................... 33
Note 22: Company overview ....................................................................................................................... 33
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
14
Note
Amounts in USD thousands
2023
2022
Revenue
1
Operating costs
- 332,989
-385,594
Other income
Other costs
- 1,207
-3,418
Profit before depreciation and impairment losses (EBITDA)
2
Gain on sale of non-current assets, etc., net
5,6
Depreciation, impairment losses and impairment reversals, net
- 67,317
-67,807
Profit before financial items (EBIT)
3
Financial income
3
Financial expenses
- 31,988
-33,779
Profit before tax
4
Tax
Profit for the year
Note
Amounts in USD thousands
2023
2022
Profit for the year
Cash flow hedges
Value adjustment of hedges for the year
-496
Reclassified to income statement:
- vessel operating costs
-247
- financial expenses
-3,519
Tax on other comprehensive income
Total items that have been or may be reclassified subsequently
-4,262
Other comprehensive income, net of tax
-4,262
Total comprehensive income for the year
CONSOLIDATED INCOME STATEMENT FOR
1 JANUARY TO 31 DECEMBER
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
15
Note
Amounts in USD thousands
2023
2022
5
Property, plant and equipment
6
Right-of-use asset
15
Derivatives
Total non-current assets
Inventories
Trade receivables
Tax receivables
9
Loan receivables
Other receivables
Prepayments
Other current assets
Cash and cash equivalents
7
Assets held for sale
Total current assets
Total assets
Note
Amounts in USD thousands
2023
2022
Share capital
Retained earnings
Reserves for hedging
Dividend proposed for the year
Total equity
8
Borrowings, non-current
Total non-current liabilities
8
Borrowings, current
10
Provisions
Trade payables
Tax payables
Other payables
15
Derivatives
Deferred income
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
CONSOLIDATED BALANCE SHEET AT 31 DECEMBER
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
16
Note
Amounts in USD thousands
2023
2022
Profit before financial items (EBIT)
Depreciation, impairment
2
Gain on sale of non-current assets
-32,140
-40,440
Profit before depreciation and impairment losses (EBITDA)
14
Change in working capital
-52,640
Change in provisions
-460
-845
Other non-cash items
Cash generated from operations before financial items and tax
Interest received
Interest paid
-28,564
-35,918
Tax received
Net cash from operating activities
14
Purchase of vessels
-60,546
-96,633
Change in deposits and trade payables for purchase of vessels
-39,932
Proceeds from disposal
Change in loan receivables
Net cash from investing activities
Dividend distributed
-300,000
-150,000
Proceeds from new borrowings
Repayment of borrowings
-165,150
-371,530
Net cash from financing activities
-285,150
-408,530
Net cash flow for the year
Liquid funds at beginning of period
Exchange gain on Liquid funds
Liquid funds at end of period
Amounts in USD thousands
Share capital
Reserve for
hedges
Retained
Earnings
Dividend
Proposed
Total equity
Equity 1 January 2022
- 7,972
Profit for the year
Other comprehensive income, net of tax
Total comprehensive income for the year
Extraordinary dividends to shareholders
-150,000
-150,000
Total transactions with shareholders
-150,000
-150,000
Equity 31 December 2022
2023
Profit for the year
Other comprehensive income, net of tax
-4,262
-4,262
Total comprehensive income for the year
-4,262
Dividends paid to shareholders
-175,000
-175,000
Extraordinary dividends to shareholders
-125,000
-125,000
Total transactions with shareholders
-125,000
-175,000
-300,000
Equity 31 December 2023
The share capital consists of 10 million shares with a nominal value of DKK 1 per share. The shares are divided into
two share classes; A (nominal value DKK 2.5m) and B (nominal value DKK 7.5m) with A shares carrying three votes
and B shares carrying one vote in voting power.
CONSOLIDATED CASH FLOW STATEMENT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
18
NOTES TO
CONSOLIDATED
FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
2023 ANNUAL REPORT·
FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
19
Note 1: Operating costs
Amounts in USD thousands
Bunker costs
Voyage costs
Vessel operating costs
Port costs
Staff costs
Management fees
Rent and lease costs
Other operating costs
-
-
Total operating costs
332,989
385,594
Remuneration of employees
Wages and salaries
Other Benefits
Social Security Contributions
Total remuneration
5,164
4,331
Average number of employees*
*The remuneration of the employees are recharged to Maersk Tankers A/S and corporate management
fees are paid in return.
The remuneration of Executive Management of USD 1.5m (USD 2.6m) in salaries and any incentive plans
are included in the management fees paid to Maersk Tankers A/S.
The Board of Directors have received fees of USD 0 (USD 0m).
Fees to PricewaterhouseCoopers
Amounts in USD thousands
Statutory audit
Other assurance engagements
Tax advisory services
Other Services
Total fees
160
158
Note 2: Gain on sale of non-current assets, etc., net
Amounts in USD thousands
Gain on sale of vessels
Gain on termination of leases
Gain on sale of non-current assets, etc., net
32,140
40,440
Note 3: Financial income and expenses
Amounts in USD thousands
Interest expenses on liabilities
-
-
Of which borrowing costs capitalised on assets
Interest income on loans and receivables
Fair value adjustment transferred from equity hedge reserve gain/(loss)
Net interest expenses
- 22,612
-29,360
-
Net foreign exchange gains/losses
95
-1,221
Financial expenses, net
- 22,517
-30,581
Financial income
Financial expenses
-
-
he capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation was
%
he fair value adjustment transferred from equity hedge reserve (loss) of USD -triggered by the
unwinding of interest rate swaps for borrowings terminated by following the hypothetical derivative method
This gave rise to a USD k and
respectivelyin addition to USD
of financial expenses reclassified to income statement
For an analysis of gains and losses from derivatives, reference is made to note 15.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
20
Note 4: Tax
Amounts in USD thousands
Tax recognised in the income statement
Current tax on profits for the year
Adjustment for current tax of prior periods
Total current tax
11,151
2,209
Total income tax
Tonnage and freight tax
-
-
Total tax expense/income
10,894
1,936
Tax reconciliation
Profit/loss before tax
-
-
Profit/loss before tax, adjusted
-22,517
-30,581
Tax rate deviations in foreign jurisdictions
Use of previously unrecognised net financial expenses in joint taxation
Adjustment to previous years' taxes
-
-
-
Loss not expected to be utilised
-
Total income tax
10,894
1,936
Shipping activities are taxed on the basis of the net tonnage (tonnage tax). Furthermore, Maersk Product
Tankers A/S is part of a joint taxation with A.P. Møller Holding A/S and its Danish subsidiaries regarding
general tax regulations for net financial items and other activities in Denmark.
Amounts in USD thousands
Tax loss carry forward
Total
43,176
88,152
The tax value of the loss carry forward is USD9.5m (USD19.4m). The unrecognised deferred tax assets
have no significant time limitations and relates to tax loss not expected to be utilised.
Note 5: Property, plant and equipment incl. impairment
Amounts in USD thousands
Vessels Building
Assets under
construction Total
Cost
Addition
Disposal
-
-
Transfer
-
31 December 2022
1,557,700
0
631
1,558,331
Addition
Disposal
-
-
Transfer
-
-
-
31 December 2023
1,362,523
406
25,823
1,388,752
Depreciation and impairment losses
Depreciation
Reversal of impairment
-
-
Disposal
-
-
Transfer
-
31 December 2022
861,062
0
0
861,062
Depreciation
Reversal of impairment
-
-
Disposal
-
-
-
-
31 December 2023
739,396
59
0
739,455
Carrying amount
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
21
-continued
Property, plant and equipment are reviewed for any impairment indicators for each cash generating unit
(CGU). Indicators of a possible reversal of impairment have been identified as of 31 December 2023 as
there was an increase in the market value of vessels.
The recoverable amounts of the vessels were determined using the value-in-use, with each vessel
segment being regarded as one CGU. The estimated value in use is calculated using certain key
assumptions for the expected future cash flows and applied discount factor. A discount rate of 8% has
been applied. The value-in-use showed values on level with carrying amount. Furthermore, no
significant changes or improvements in the service condition of the vessels have been identified since
the recognised impairments. No impairment or reversal of impairment was recorded arising from the
impairment test.
In 2023, the Group has entered into agreements to sell five handytankers and two intermediate vessels.
Six of the vessels have been delivered to the owners in 2023, while one handytanker remains under
asset held for sale. These transactions resulted in a total impairment reversal of USD 6.7m (USD 20.9m)
and a gain on sale of USD 32.1m (USD 40.1m).
As the agreements concluded in 2023 and 2022 are assessed to be specific for these vessels and similar
agreements on the remainder of the vessels were not obtainable, it was concluded that the transactions
do not trigger a reversal or an additional impairment on other vessels within the Groups CGUs.
Property, plant and equipment include nine vessels that are recognised as a part of a sale and
leaseback transaction, which is accounted for as a financing transaction due to purchase
options. The carrying amount of the vessels as per 31 December 2023 amounts to USD
240.6m (cost price USD 307.1m less depreciation and impairment of USD 66.5m).
Note 6: Leases
Amounts in USD thousands
Vessels
Land and buildings
Total
Recognition of right
-of-use asset
Additions
Depreciation
-
-
-
Disposal
-
-
As at 31 December 2022
0
0
0
Additions
Depreciation
-
-
Disposal
As at 31 December 2023
0
610
610
Net Carrying amount
Lease liability
Additions
Disposal
-
-
Interest expense
Lease payments
-
-
-
Foreign exchange movements
-
-
As at 31 December 2022
0
0
0
Additions
Disposal
Interest expense
Lease payments
-
-
Foreign exchange movements
As at 31 December 2023
0
618
618
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
22
N
Lease liabilities are recognised in the balance sheet as follows
Vessels
Land and
buildings Total
2022
Non--current
Current
0
0
0
2023
Non--current
0
618
618
Recognised in the profit and loss statement as follows:
2022
Interest expense relating to lease liability
2023
Interest expense relating to lease liability
Recognised in the cash flow statement as follows:
2022
- - -
-5,628
-154
-5,782
2023
-
-
- -
0
-120
-120
Note 7: Assets held for sale and assets sold during the year
During the year 2023, the Group sold seven vessels. This have led to a reversal of impairment of USD
6.7m. As at end of 2023, the Group had one vessel presented as Asset Held for Sale, contributing to the
amount of USD 5.5m.
During the year 2022, the Group sold thirteen vessels. This have led to a reversal of impairment of USD
10.1m. All thirteen vessels were delivered to the new owners during the period. Consequently, there were
no vessels classified as Asset Held for Sale at the end of 2022.
Note 8: Borrowings
Amounts in USD thousands
Bank and other credit institutions
Lease liabilities
Total
431,027
415,454
Classified as non-current
Classified as current
Fair value of derivatives hedge of borrowings, net
2,793
401
Amounts in USD thousands
Borrowings
Leases
Total
Cost
Acquisitions of leases
Disposal of leases
-
-
Cashflows
-
-
-
31 December 2022
415,454
0
415,454
Acquisitions of leases
Cashflows
-
31 December 2023
430,409
618
431,027
Reference is made to Liquidity risk in Note 12 of the consolidated financial statements for covenants
related to borrowings.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
23
Note 9: Net Debt
Amounts in USD thousands
Borrowings
Loan receivables*
-
-
Cash and cash equivalents
-
-
Net debt
247,096
297,887
*Loan receivables are related to sale of vessels
Note 10: Provisions
Amounts in USD thousands
Provision made
Amount used
-
-
Amount reversed
-
-
31 December
783
1,243
Classified as non-current
Classified as current
The majority of the provisions are to cover commercial claims and are expected to be settled within one
year.
Note 11: Financial Instruments by Category
Amounts in USD thousands
Carrying
amount
Fair Value
Carrying
amount
Fair Value
Carried at amortized cost
Loan receivables
Total interest-bearing receivables
988
988
1,334
1,334
Trade receivables
Other receivables
Cash and cash equivalents
Financial assets at amortized costs
296,575
271,712
Carried at fair value
Derivatives
Total financial assets
297,143
274,335
Carried at amortized costs
Borrowings
Lease liabilities
Trade payables
Other payables
Financial liabilities at amortized costs
533,621
500,534
Carried at fair value
Derivatives
Total financial liabilities
536,839
503,339
Financial instruments measured at fair value
Financial instruments measured at fair value can be divided into three levels:
Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 — Inputs other than quoted prices included within level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3 — Inputs for the asset or liability that are not based on observable market data.
Fair value of derivatives is within level 2 of the fair value hierarchy and is calculated on the basis of
observable market data as of the end of the reporting period.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
24
Note 11: Financial instruments by category continued
Financial instruments carried at amortised cost
Fair value of the short-term financial assets and other financial liabilities carried at amortised cost is
not materially different from the carrying amount. In general, fair value is determined primarily based
on the present value of expected future cash flows. Where a market price was available, however, this
was deemed to be the fair value.
Note 12: Financial risks, etc.
The Group’s activities expose it to a variety of financial risks:
Market risks, i.e. currency risk and interest rate risk
Credit risk
Liquidity risk
The Group’s overall risk management programme focuses on the unpredictability of financial markets
and seeks to minimise the potential adverse effects on the Group’s financial performance. The Group
uses derivative financial instruments to hedge certain risk exposures.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates,
will affect the Group’s profit or the value of its holdings of financial instruments.
Currency risk
The Group’s currency risk relates to the fact that while income from shipping activities is denominated
mainly in USD, the related expenses are incurred in both USD and a wide range of other currencies such
as DKK, EUR and SGD. As the net income is in USD, this is also the primary financing currency.
The main purpose of hedging the Group’s currency risk is to mitigate the impact of changes in the USD
value of the Group’s net cash flow and hence reduce associated volatility in the Group’s profit. The Group
uses forwards to hedge these risks. The key aspects of the currency hedging policy are as follows:
Net cash flows in other significant currencies than USD are hedged using a layered model with a 12-
month horizon.
Commercial and financial exposures such as investments, divestments and debt in currencies other
than USD are hedged according to the financial policy.
The sensitivity analyses for currency risk have been prepared on the basis that the proportion of
financial instruments in foreign currencies remain unchanged from hedge designations in place on 31
December 2023. Furthermore, it is assumed that the exchange rate sensitivities have a symmetric
impact, i.e. an increase in rates results in the same absolute movement as a decrease in rates. The
sensitivity analyses show the effect on both pre-tax profit and equity that would result from a
reasonably possible change in exchange rates.
An increase in the USD exchange rate of 10% against all other significant currencies to which the Group
is exposed is estimated to have an impact of USD 0.3m (USD 0.3m) on the Group’s profit and loss and
an adverse impact of USD 1.0m (USD 1.4m) on the other comprehensive income.
Interest rate risk
The Group has all its debt denominated in USD.
The Group strives to maintain a combination of fixed and floating interest rates on its net debt,
reflecting expectations and risks. The hedging of the interest rate risk is governed by a minimum level
of fixed rate debt obtained through the use of interest rate swaps. As of 31 December 2023, 58% (85%)
of the Group’s total debt was, by nature or through the use of swaps, fixed rate.
The sensitivity analyses for interest rate risk have been prepared on the basis that the amount of net debt
and the ratio of fixed to floating interest rates of the debt remain unchanged from hedge designations in
place on 31 December 2023. Furthermore, it is assumed that the interest rate sensitivities have a symmetric
impact, i.e. an increase in rates results in the same absolute movement as a decrease in rates. The
sensitivity analyses show the effect on both pre-tax profit and equity that would result from a
reasonably possible change in interest rates.
An increase in interest rates by one percentage point is estimated to increase profit for the year by USD
0.03m and increase other comprehensive income by USD 0 (2022: increase profit for the year by USD
0.8m and increase other comprehensive income by USD 1.4m). This analysis is based on borrowings and
cash at 31 December, and assumes that all other variables remain constant. A one percentage point
decrease in interest rates would have a corresponding inverse effect.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
25
-continued
B
orrowings by interest rate level - Amounts in USD thousands
Carrying
amount - - - years
2023
-
-
Bearing fixed interest
Bearing floating interest
2022
-
-
Bearing fixed interest
Bearing floating interest
Credit risk
Loan receivables
Maersk Product Tankers has exposure to different counterparties from sale of vessels and actively
manages those exposures based on the credit risks associated with the individual counterparts.
The Group applies the general method prescribed in IFRS 9 to assess any potential credit losses.
Considering different scenarios, which indicate a need for a credit loss on loan receivables, a credit loss
of USD 0m (USD 0m) has been recognised. Due to receipts made during the year, a reversal of credit loss
of USD 1.6m has been recognised.
Trade receivables
Maersk Product Tankers has exposure to financial and commercial counterparties and actively manages
those exposures through our credit risk frameworks. To minimise the credit risk, a limit structure and
vetting process is in place for all counterparties, to ensure that concentrations of credit exposure on
particular counterparties or risk tranches are avoided.
The Group applies the simplified approach to providing the expected credit losses prescribed by IFRS 9,
which permits the use of the lifetime expected loss provision for all trade receivables. To measure the
expected credit losses, trade receivables have been grouped based on shared credit risk characteristics
and the days past due. In accordance with IFRS 9, also non-due trade receivables have been impaired.
Maturity analysis of trade receivables
Receivables not due
Expected credit loss
-
-
Carrying amount
86,347
99,152
Approx. 78.2% (6.2%) of the expected credit loss is related to trade receivables overdue by more than
one year.
Liquidity risk
In order to provide cover for the cyclical nature of the business, the Group is committed to keep a
minimum liquidity reserve. The purpose of the Group’s liquidity reserve is to ensure that short-term
payment obligations can be honoured at all times and ensure compliance with financial covenants from
lenders. The financial covenants from lenders are related to minimum cash position, minimum loan to
value ratio and equity-to-assets.
All loans have cross-default clauses. As of 31 December 2023, the Group had a liquidity reserve of USD
337.6m (316.2m), which includes undrawn loan facilities of USD 154.7m (USD 200m). The equity share of
total equity and liabilities was 45.9% at the end of 2023 (48.6%).
Liquidity reserve is defined as undrawn loan facilities with maturities in excess of 12 months, cash and
bank balances.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
26
-continued
Maturities of liabilities and commitments
Cash flows including interest
Amounts in USD thousands
Carrying
amount
- - - years Total
2023
Borrowings
Lease liabilities
Trade payables
Other payables
Non-derivative financial liabilities
(excluding interest)
Total recognised in balance sheet
Capital commitments
Total
969,239
246,327
795,577
0
1,041,904
2022
Borrowings
Lease liabilities
Trade payables
Other payables
Non-derivative financial liabilities
(excluding interest)
Total recognised in balance sheet
Operating lease commitments
Total
503,437
146,911
243,126
216,315
606,352
The weighted average term to maturity of loan facilities in the Group is about three years as at 31
December 2023 (about four years at 31 December 2022).
Note 13: Commitments
Amounts in USD thousands
Newbuilding
of vessels
Capital commitments relating to acquisition of non
-current assets
Capital commitments relating to acquisition of non
-current assets
The Group has commitments for four Ammonia carriers in total. The capital commitments will be
financed by existing funding and new financing arrangements.
Note 14: Cash flow specifications
Amounts in USD thousands
Inventories
-
-
Trade receivables
-
Other receivables and prepayments
-
Trade payables and other payables
-
Exchange rate adjustment of working capital
-
Change in working capital Total
31,691
- 52,640
Additions
-
-
Additions of which leases
Additions of which borrowing costs capitalised on assets
Change in deposits and trade payables for purchase of vessels
-
Purchase of property, plant and equipment
- 60,546
- 96,633
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
27
Note 15: Derivatives
Hedges consists of currency derivatives and interest rate derivatives. Foreign exchange forwards
contracts are used to hedge the currency risk related to recognised and unrecognised transactions.
Interest rate swaps are used to hedge interest rate exposure on borrowings.
Amounts in USD thousands
Non-current receivables
-
-
Current receivables
Non-current liabilities
Current liabilities
Hedge of operating cash flows in foreign currencies
Currency derivatives hedge future operating costs and are recognised on an ongoing basis in the income
statement. The maturity of the hedges is within a year.
For hedges related to operating cash flows -USD 0.1m (0.7m) is recognised in other comprehensive
income and USD 0.1m (0.2m) is in the cash flow hedge reserve in equity at 31 December 2023.
Amounts in USD thousands
Hedging foreign exchange risk on operating costs
-
Hedging interest rate risk
Total effective hedging
Ineffectiveness recognised in financial expenses
-
-
Total reclassified from equity reserve for hedges
-
Hedge of borrowings
Interest rate swaps are used to swap variable interest payments on term loans to fixed interest
payments. All interest rate swaps are designated as cash flow hedges.
The notional amount of interest rate swaps at 31 December 2023 amounts to USD 0 (121.1m). At 31
December 2022, they are all denominated in USD and the average fixed rate of the interest rate swaps
is 2.78%.
For cash flow hedges related to borrowings -USD 4.2m (11.7m) is recognised in other comprehensive
income and USD 0 (4.2m) is in the cash flow hedges reserve in equity at 31 December 2023.
The hedge ratio are 1:1 for all hedging relationships.
The fair value of derivatives held at the balance sheet date can be allocated by type as follows:
asset
liability
Nominal
amount of
derivative
asset
liability
Nominal
amount of
derivative
Amounts in USD thousands
Interest rate swaps
- cash flow hedges
- fair value hedges
Total
568
3,361
0
2,623
3,025
121,097
Hedge of cash flows and
investments in foreign currencies
Main currencies hedged
- EUR
- DKK
Other currencies
Total
143
0
12,820
220
0
14,448
For information about risk management strategy, currencies, maturities, etc. reference is made
to note 12.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
28
Note 16: Related parties
Amounts in USD thousands
Income statement
Revenue
Operating costs
-
-
Other income
Financial expenses
-
-
Assets
Trade receivables
Other receivables
-
Tax receivables
Liabilities
Other borrowings
-
Trade payables
Other payables
Tax payables
A.P. Møller Holding A/S, Copenhagen, Denmark has control over the Company and prepares
consolidated financial statements. A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond til almene
Formaal is the ultimate owner. Other related parties include A.P. Møller Holding A/S and all its
subsidiaries and affiliates.
The company’s vessels participate in commercial pools (Maersk Tankers-Afra Pool, Maersk Tankers-
Handytankers Pool, Maersk Tankers-Intermediate Pool, Maersk Tankers-LR2 Pool, Maersk Tankers-MR
pool).
Amounts in USD thousands
Trade receivables from contracts with customers
Accrued income-contract asset
Deferred income-contract liability
The Group has entered into contracts with an income value of USD 42.9m (USD 25.1m) within one year
and USD 59.5m (USD 0.9m) within 1-3 years.
Revenue relates to spot voyages, voyages under contracts of affreightment (COAs) and limited lease
income.
Accrued income included in trade receivables in the balance sheet constitutes contract assets
comprising unbilled amounts to customers representing the company’s rights to consideration for
services transferred to date. Any amount previously recognised as accrued income is reclassified to
trade receivables at the time it is invoiced to the customer.
Under the payment terms generally applicable to the company’s revenue generating activities,
prepayments are received only to a limited extent. Typically, payment is due upon or after completion
of the services.
Part of the deferred income presented in the balance sheet constitutes contract liabilities which
represents advance payments and billings in excess of revenue recognised.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
29
Note
Basis of preparation
The consolidated financial statements for 2023
Financial Reporting Standards (IFRS) as adopted by the EU and further requirements in the Danish
Financial Statements Act.
The consolidated financial statements of Maersk Product Tankers are included in the consolidated
financial statements of A.P. Møller Holding A/S.
Changes to accounting policies
Accounting policies remain unchanged from the Annual report 2022 with the exception of the following
accounting standards that are effective from 1 January 2023 and endorsed by the EU:
• IAS 12 for deferred tax according to pillar II
The adoption of the new and changed standard has no material impact on the Maersk Product Tankers
consolidated annual report for 2023.
Consolidation
The consolidated financial statements consist of Maersk Product Tankers and its subsidiaries; Maersk
Tankers Singapore Pte. Ltd and Ammonia Carriers A/S.
Subsidiaries are entities controlled by Maersk Product Tankers. Control is based on the power to direct
the relevant activities of an entity and the exposure, or right, to variable returns arising from it. In that
connection, relevant activities are those that significantly affect the investee’s returns. Control is
usually achieved by directly or indirectly owning or in other ways controlling more than 50% of the
voting rights or by other rights, such as agreements on management control.
Foreign currency translation
The consolidated financial statements are presented in USD, the functional currency of the parent
company. Transactions in currencies other than the functional currency are translated at the exchange
rate prevailing at the date of the transaction. Monetary items in foreign currencies not settled at the
balance sheet date are translated at the exchange rate as at the balance sheet date. Foreign exchange
gains and losses are included in the income statement as financial income or expenses.
INCOME STATEMENT
Revenue
Revenue is recognised when the performance obligation has been satisfied, which happens upon the
transfer of control to the customer at an amount that reflects the consideration to which Maersk
Product Tankers expects to be entitled in exchange for the services. Revenue from ongoing voyages at
the balance sheet date is recognised following the “load to discharge” method, where freight income
and related expenses are recognised in the income statement from the first load date of the voyage to
the discharge date of the cargo. Invoiced revenue related to an estimated proportion of remaining
voyage time and activities at the destination port is deferred.
Lease income from operating leases is recognised over the lease term. Demurrage claims are recognised
if they are considered probable.
The majority of the company’s vessels participate in commercial pools (Maersk Tankers-Afra Pool,
Maersk Tankers-Handytankers Pool, Maersk Tankers-Intermediate Pool, Maersk Tankers-LR2 Pool,
Maersk Tankers-MR pool) in which other vessel owners with similar, high-quality, modern and well-
maintained vessels also participate. Pools employ experienced commercial charterers and operators
who have established relationships with customers and brokers, while technical management is
arranged by each vessel owner. The managers of the pools negotiate charters with customers.
The earnings allocated to vessels are aggregated and divided on the basis of a weighted scale, or Pool
Points, which reflect comparative voyage results on hypothetical benchmark routes. The Pool Point
system is generally weighted by attributes such as size, fuel consumption, class notation and other
capabilities. Pool revenues are recognised when the vessel has participated in a pool during the period
and the amount of pool revenue for the period can be estimated reliably.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
30
-continued
Financial items
Financial income and expenses are recognised in the income statement at the amount relating to the
financial year. Financial items include interest income and expense, and gains and losses on transactions
in foreign currency.
Tax for the year
The company is subject to Danish corporate taxation. Part of the taxable income is calculated in
accordance with Danish tonnage tax act. The tax compromises of an estimate of current and deferred
income tax as well as any adjustments to previous years.
OTHER COMPREHENSIVE INCOME
Other comprehensive income consists of income and costs not recognised in the income statement
including cashflow- and fair value adjustments.
Derivative financial instruments
Derivative financial instruments are recognised on the trading date and measured at fair value using
generally acknowledged valuation techniques based on relevant observable swap curves and exchange
rates. The effective portion of changes in the value of derivative financial instruments designated to
hedge highly probable future transactions is recognised in other comprehensive income until the
hedged transactions are realised. At that time, the cumulated gains/losses are transferred to the items
under which the hedged transactions are recognised.
The effective portion of changes in the value of derivative financial instruments used to hedge the value
of recognised financial assets and liabilities is recognised in the income statement together with
changes in the fair value of the hedged assets or liabilities that can be attributed to the hedging
relationship.
Currency basis spread and forward points are considered a cost of hedge and included in the fair value.
BALANCE SHEET
Property, plant and equipment
Property, plant and equipment are valued at cost less accumulated depreciation and impairment losses.
Depreciation is charged to the income statement on a straight-line basis over the useful lives at an
estimated residual value. The useful lives of new assets are typically 20 years for vessels.
Estimated useful lives and residual values are reassessed on a regular basis.
The cost of an asset is divided into separate components, which are depreciated separately if the useful
lives of the individual components differ. Dry-docking costs are recognised in the carrying amount of
vessels when incurred and depreciated over the period until the next dry-docking. Dry-docking cycles
are typically five years. The cost of assets includes directly attributable expenses. For assets with a long
construction period, borrowing costs during the construction period from specific as well as general
borrowings are attributed to cost. Property, plant and equipment are tested for impairment indication
on an annual basis. Impairment losses are recognised when the carrying amount of an asset or a cash-
generating unit exceeds the higher of the estimated value in use and fair value costs of disposal.
Assets held for sale
Assets held for sale are measured at the lower of carrying amount immediately before classification as
held for sale and fair value less costs to sell and impairment tests are performed immediately before
classification as held for sale. Non-current assets are not depreciated or amortised while classified as
held for sale. Measurement of deferred tax and financial assets and liabilities is unchanged.
Leases
Lease contracts, under which the Group is the lessee, are capitalised using an incremental borrowing
rate and recognised in the balance sheet as right-of-use assets and corresponding lease liabilities. The
right-of-use assets are generally depreciated over the lease term. Lease payments made are split into
an interest element presented under financial expenses and amortisation of the lease liability. Both
elements are included under cash flow from financing activities in the cash flow statement.
Lease contracts with a term shorter than 12 months or for which the underlying asset are of low value
are not capitalised but expensed straight-line over the lease term.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
31
-continued
Sale and leaseback
Sales and leaseback transactions for which the Group maintains substantially all the risks and rewards
incidental to economic ownership, are recognised on the balance sheet as finance lease liability.
Transactions for which the sale of the vessels does not fulfil the conditions for being recognised as a
sale are instead recognised as a financing transaction.
Lease liability are measured at the start of the leasing contract at the lower of the present value of
minimum lease payments determined in the lease contract and the assets’ fair value, plus any incidental
expense borne by the lessee.
For the purpose of calculating the present value, the interest rate implicit in the lease is used as discount
factor. Liabilities for financial leases are recognised on the balance sheet and the interest included in
the lease payment is charged to the income statement.
Inventories
Inventories mainly consist of bunker, lubricants and spare parts. Inventories are measured at cost
according to the FIFO method.
Receivables
Receivables are initially recognised at fair value, plus any direct transaction costs and subsequently
measured at amortised cost using the effective interest method. For other receivables, write-down is
made for anticipated losses based on specific individual or group assessments. For trade receivables,
the loss allowance is measured in accordance with IFRS 9 applying a provision matrix in order to
calculate the impairment.
Equity
Equity includes total comprehensive income for the year comprising the profit/loss for the year and
other comprehensive income. Reserve for hedges includes the accumulated fair value of derivatives
qualifying for cash flow hedge accounting, net of tax as well as forward points and currency basis
spread.
Provisions
Provisions are recognised when Maersk Product Tankers has a present legal or constructive obligation
from past events. The item includes, among other things, legal disputes. Provisions are recognised based
on best estimates and are discounted where the time element is significant and where the time of
settlement is reasonably determinable.
Financial liabilities
Financial liabilities are initially recognised at fair value less transaction costs. Subsequently, the financial
liabilities are measured at amortised cost using the effective interest method, whereby transaction
costs and any premium or discount are recognised as financial expenses over the term of the liabilities.
Cash flow statement
The cash flow statement shows the Company’s cash flows and cash and cash equivalents at the
beginning and the end of the period.
Cash flow from operating activities is presented using the indirect method and includes all cash
transactions other than cash flows arisen from investments and divestments, principal payments of
loans and equity transactions. Capitalisation of borrowing costs is considered as non-cash items, and
the actual payments of those are included in cash flow from operations.
Definitions
Free cash flow
Cash flow from operating activity less cash flow from investing activities
Profit margin
Profit or loss before depreciation and impairment divided by Revenue
Equity ratio
Equity at the year-end divided by total assets
Return on equity
Profit/loss for the year divided by average equity
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
32
The preparation of the consolidated financial statements requires management, on an ongoing basis,
to make judgements and estimates and form assumptions that affect the reported amounts.
Management forms its judgements and estimates on historical experience, independent advisors and
external data points as well as in-house specialists and on other factors believed to be reasonable under
the circumstances.
In certain areas, the outcome of business plans, including ongoing negotiations with external parties to
execute those plans or to settle claims that are raised against Maersk Product Tankers, is highly
uncertain. Therefore, assumptions may change, or the outcome may differ in the coming years, which
could require a material upward or downward adjustment to the carrying amounts of assets and
liabilities. This note includes the areas in which Maersk Product Tankers is particularly exposed to a
material adjustment of the carrying amounts as at the end of 2023.
GENERAL
Freight rates
The future development in the freight rates is an uncertain and significant factor impacting Maersk
Product Tankers where financial results are directly affected by the fluctuation in the freight rates,
which also has a direct impact on the net realizable value of the vessels owned by the Group. Freight
rates are influenced by the global economic environment and trade patterns, as well as industry specific
trends in respect of supply and demand of capacity.
Oil prices
The future development in the oil price is uncertain and impacting accounting estimates and financial
results. Maersk Product Tankers is directly impacted by the price of bunker oil, where the competitive
landscape determines the extent to which the development is reflected in the freight rates charged to
the customer.
Vessel values
The vessel values including new-buildings and second-hand vessels, are exposed to the volatility in the
industry and global economy, which among others includes global freight rates, newbuilding costs,
emission regulations and steel prices.
PROPERTY, PLANT AND EQUIPMENT
Impairment considerations
Impairment tests of property, plant and equipment are carried out for cash generating units with
indications of impairment losses or reversals. No indicators of a need for additional impairments or
reversal of impairment have been identified as of 31 December 2023 as the longer term expectations
have not changed significantly.
The recoverable amount is determined as the higher of fair value less cost to sell (based on broker
valuations) and value-in use. The calculations are sensitive to expected future market rates in addition
to the discount rate.
Depreciation and residual values
Useful lives are estimated based on past experience. Management decides from time to time to revise
the estimates for individual assets or groups of assets with similar characteristics due to factors such
as quality of maintenance and repair, technical development and environmental requirements.
Residual values are difficult to estimate given the long lives of vessels, the uncertainty as to future
economic conditions and the future price of steel, which is considered as the main determinant of the
residual price. As a general rule, the residual values of vessels are initially estimated at 10% of the
purchase price excluding dry-docking costs. The long-term view is prioritised in order to disregard, to
the extent possible, temporary market fluctuations which may be significant.
Provisions for commercial claims, legal disputes, etc.
Management’s estimate of the provisions in connection with commercial claims, legal disputes,
including disputes on taxes and duties, is based on the knowledge available on the actual substance of
the cases and a legal assessment of these. The resolution of legal disputes, through either negotiations
or litigation, can take years to complete and the outcome is subject to considerable uncertainty.
Maersk Product Tankers is engaged in disputes of varying scope. Appropriate provisions have been made
where the probability of payment in individual cases is considered more likely than not.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
33
Note
Contingent assets and liabilities
At end of 2023, the Group is involved in commercial claims and disputes, which are subject to
considerable uncertainty.
Taxes may come into effect if the company leaves the tonnage tax regime. Through participation in a
joint taxation scheme with A.P. Møller Holding A/S, the Danish company is jointly liable for taxes payable
etc. in Denmark.
Pledges
Vessels with a carrying amount of USD 360.6m have been pledged as security for borrowings of USD
180m.
Note
In January 2024, Handytanker Maersk Kalea was redelivered to new owners.
Note
List of subsidiaries of Maersk Product Tankers A/S:
Subsidiary
Country of incorporation
Ownership share
Singapore
Ammonia Carriers A/S
Denmark
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
34
PARENT COMPANY
FINANCIAL
STATEMENTS
Parent income statement | Parent
statement of comprehensive income | Parent balance sheet at 31 December | Parent cash
flow statement | Parent statement of changes in equity | Notes to the parent financial statements
MAERSK PRODUCT TANKERS A/S
2023 ANNUAL REPORT·
FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
35
Parent company financial statements ......................................... 34
Parent Income statement ........................................................................................................................... 36
Parent statement of comprehensive income ....................................................................................... 36
Parent Balance sheet at 31 December .....................................................................................................37
Parent cash flow statement ....................................................................................................................... 38
Parent statement of changes in equity .................................................................................................. 38
Notes to parent company financial statements ....................... 39
Parent Note 1: Operating costs ..................................................................................................................... 40
Parent Note 2: Financial income and expenses ...................................................................................... 40
Parent Note 3: Tax ........................................................................................................................................... 40
Parent Note 4: Property, plant & equipment ......................................................................................... 41
Parent Note 5: Leases .................................................................................................................................... 41
Parent Note 6: Investment in subsidiaries ............................................................................................... 42
Parent Note 7: Borrowings .......................................................................................................................... 42
Parent Note 8: Financial instruments by category ............................................................................. 43
Parent Note 9: Financial risks ..................................................................................................................... 43
Parent Note 10: Cash flow specifications ............................................................................................... 44
Parent Note 11: Derivatives .......................................................................................................................... 45
Parent Note 12: Related parties ................................................................................................................. 45
Parent Note 13: Contract balances ........................................................................................................... 45
Parent Note 14: Accounting policies ........................................................................................................ 45
PARENT COMPANY FINANCIAL
STATEMENTS
CONTENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
36
Note
Amounts in USD thousands
Revenue
Operating costs
-
-
Other income
Other costs
-
-
Profit before depreciation and impairment losses (EBITDA)
165,443
166,413
Depreciation
-
-
Gain on sale of non-
Profit before financial items (EBIT)
155,422
123,554
Profit from subsidiaries
Financial income
Financial expenses
-
-
Profit before tax
250,108
266,278
Tax
Profit for the year
261,308
268,400
Note
Amounts in USD thousands
Profit for the year
Cash flow hedges:
Value adjustment of hedges for the year
-
Reclassified to income statement:
- operating costs
-
- financial expenses
-
Tax on other comprehensive income
Total items that have been or may be reclassified subsequently
- 4,262
12,377
Other comprehensive income, net of tax
- 4,262
12,377
Total comprehensive income for the year
257,046
280,777
PARENT INCOME STATEMENT
PARENT STATEMENT OF COMPREHENSIVE INCOME
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
37
Note
Amounts in USD thousands
Right of use asset
Investments in subsidiaries
Derivatives
Total non-current assets
763,861
888,643
Inventories
9,414
7,985
Trade receivables
Tax receivables
Other receivables
Prepayments
Other current assets
80,453
97,771
Cash and cash equivalents
129,361
47,747
Total current assets
219,228
153,503
Total assets
983,089
1,042,146
Note
Amounts in USD thousands
Share capital
Retained Earnings
Reserves for hedging
Proposed dividend
Total equity
441,244
484,198
-current
Total non-current liabilities
380,862
380,706
Borrowings, current
107,778
129,747
Provisions
Trade payables
Derivatives
Tax payables
Other payables
Deferred income
Other current liabilities
53,205
47,495
Total current liabilities
160,983
177,242
Total liabilities
541,845
557,948
Total equity and liabilities
983,089
1,042,146
PARENT BALANCE SHEET AT 31 DECEMBER
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
38
Note
Amounts in USD thousands
Profit before financial items
155,422
123,554
Gain on sale of non-current assets
-
-
Profit before depreciation and impairment losses (EBITDA)
165,443
167,394
Change in working capital
-
Change in provisions
-
-
Other non-cash items
Cash generated from operations before financial items and tax
194,939
122,889
Interest received
Interest paid
-
-
Tax received
Net cash from operating activities
166,138
92,982
Purchase of vessels
-
-
Change in deposits for purchase of vessels
-
Proceeds from disposal
Dividend and capital reduction from subsidiaries
Capital injection in subsidiary
-
Change in loan receivables
Net cash from investing activities
237,289
128,907
Proceeds from new borrowings
Repayment of borrowings
-
-
Dividend paid to shareholders
-
-
Change in loans from subsidiaries
-
Net cash from financing activities
-321,813
-196,876
Net cash flow for the year
81,614
25,013
Liquid funds at beginning of period
Exchange gain/loss on Liquid funds
Liquid funds at end of period
129,361
47,747
Amounts in USD thousands
Share capital
Reserve for
hedges
Retained
Earnings
Dividend
proposed
Total equity
1,590
- 7,972
0
353,421
Profit for the year
Other comprehensive income
Total comprehensive income for
the year
0
12,377
93,400
175,000
280,777
Extraordinary dividends to
shareholders
-
-
Total transactions with
shareholders
0
0
- 150,000
0
- 150,000
Equity 31 December 2022
1,590
4,405
303,203
175,000
484,198
2023
Profit for the year
of tax
- -
Total comprehensive income for
the year
0 -4,262 261,308 0 257,046
Dividends paid to shareholders
-
-
Extraordinary dividends to
shareholders
- -
Total transactions with
shareholders
0 0 -125,000 -175,000 -300,000
Equity 31 December 2023
1,590
143
439,511
0
441,244
The share capital consists of 10 million shares with a nominal value of DKK 1 per share. The shares are
divided into two share classes; A (nominal value DKK 2.5m) and B (nominal value DKK 7.5m) with A shares
carrying three votes and B shares carrying one vote in voting power.
PARENT CASH FLOW STATEMENT
PARENT STATEMENT OF CHANGES IN EQUITY
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
39
NOTES TO
PARENT COMPANY
FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
2023 ANNUAL REPORT· FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
40
Parent Note 1: Operating costs
Maersk Product Tankers A/S has not had employees in 2023 or 2022, as Maersk Tankers A/S is
responsible for the commercial and corporate management. For remuneration of the Board of Directors
and Executive Management reference is made to note 1 in the consolidated financial statements.
Parent Note 2: Financial income and expenses
Amounts in USD thousands
Interest expenses on liabilities
-
-
Interest income on loans and receivables
Fair value adjustment transferred from equity hedge reserve gain/(loss)
Net interest expenses
- 29,415
-33,929
Exchange rate gain/
-
Net foreign exchange gain/loss
49
-1,303
Financial expenses, net
- 29,366
-35,232
Financial income
Financial expenses
-
-
Parent Note 3: Tax
Amounts in USD thousands
Tax recognised in the income statement
Current tax on profits for the year
Adjustment for current tax of prior periods
Total current income tax
11,457
2,395
Total income tax
Tonnage and freight tax
-
-
Total tax income
11,200
2,122
Tax reconciliation
Profit/loss before tax
Profit/loss subject to Danish and foreign tonnage
-
-
Profit/loss before tax, adjusted
94,686
142,724
-
-
Profit/loss excluding subsidiaries
Use of previously unrecognised net financial expenses in joint taxation
Adjustment to previous years' taxes
-
-
-
Loss not expected to be utilised
-
Total income tax
11,200
2,122
Shipping activities are taxed on the basis of the net tonnage (tonnage tax). Furthermore, Maersk Product
Tankers A/S is part of a joint taxation with A.P. Møller Holding A/S and its Danish subsidiaries regarding
general tax regulations for net financial items and other activities.
Amounts in USD thousands
Tax loss carry forward
Total
43,176
88,152
The tax value of the loss carry forward is USD 9.5m (USD 19.4m). The unrecognised deferred tax assets
have no significant time limitations and relates to tax loss not expected to be utilised.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
41
Parent Note 4: Property, plant & equipment
Amounts in USD thousands
Vessels
Assets under
construction Total
Cost
1 January 2022
504,066
417
504,483
Addition
120,916
1,902
122,818
Disposal
-162,327
0
-162,327
Transfer, assets held for sale
18,041
0
18,041
Transfer
2,016
-2,016
0
31 December 2022
482,712
303
483,015
Addition
13,914
3,354
17,268
Disposal
-138,594
0
- 138,594
Transfer
3,435
-3,435
0
31 December 2023
361,467
222
361,689
Depreciation and impairment losses
1 January 2022
334,855
0
334,855
Depreciation
32,962
0
32,962
Reversal of impairment
-2,946
0
-2,946
Disposal
-110,310
0
-110,310
Transfer, assets held for sale
12,499
0
12,499
31 December 2022
267,060
0
267,060
Depreciation
28,355
0
28,355
Reversal of impairment
- 6,064
0
- 6,064
Disposal
- 111,927
0
- 111,927
31 December 2023
177,424
0
177,424
Carrying amount:
31 December 2022
215,652
303
215,955
31 December 2023
184,043
222
184,265
The value-in-use showed values on level with carrying amount. Furthermore, no significant changes or
improvements in the service condition of the vessels have been identified since the recognised
impairments.
Parent Note 5: Leases
Amounts in USD thousands
Vessels
Total
Recognition of right
-of-use asset on initial application
1 January 2022
369,910
369,910
Disposal
-110,179
-110,179
Depreciation
-16,480
-16,480
31 December 2022
243,251
243,251
Depreciation
-15,147
-15,147
31 December 2023
228,104
228,104
Net Carrying amount
31 December 2022
243,251
243,251
31 December 2023
228,104
228,104
Lease liabilities
1 January 2022
375,539
375,539
Disposal
-107,734
-107,734
Interest expense
-271
-271
Lease payments
-7,610
-7,610
31 December 2022
259,924
259,924
Lease payments
- 8,108
- 8,108
31 December 2023
251,816
251,816
Lease liabilities are recognised in the balance sheet as follows
2023
2022
Non-current liabilities, presented in borrowings, non-current
243,154
251,816
Current liabilities, presented in borrowings, current
8,662
8,108
251,816
259,924
Recognised in the profit and loss statement as follows:
Interest expense relating to lease liability
- 16,431
-17,455
- 16,431
-17,455
Recognised in the cash flow statement as follows:
Interest elements of lease payments, presented in "interest paid"
- 16,431
-17,455
Principal elements of lease payments, presented in "repayment of borrowings"
- 8,108
-7,610
- 24,539
-25,065
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
42
Parent Note 6: Investment in subsidiaries
Amounts in USD thousands
2023
2022
Cost as of 1 January
608,494
758,494
Share capital addition
58
0
Share capital reduction
- 200,000
- 150,000
Cost as of 31 December
408,552
608,494
Adjustment to carrying amount as of 1 January
-181,680
-359,636
Share of profit for the period
124,052
177,956
Adjustment to carrying amount as of 31 December
-57,628
-181,680
Carrying amount as of 31 December
350,924
426,814
Subsidiaries
Amounts in USD thousands
Name
Domicile Capital Equity Profit
Ownership
Interest
Maersk Tankers Singapore Pte. Ltd.
Singapore
310,000
350,866
124,052
100.0%
Ammonia Carriers A/S
Denmark
58
58
0
100.0%
Parent Note 7: Borrowings
Amounts in USD thousands
2023
2022
Bank and other credit institutions
178,568
155,516
Lease liabilities
251,816
259,924
Loans from subsidiaries
58,256
95,013
Total
488,640
510,453
Of which:
Classified as non-current
380,862
380,706
Classified as current
107,778
129,747
Derivatives hedge of borrowings, net
2,793
401
Amounts in USD thousands
Bank and
other credit
institutions
Leases
Loans from
subsidiaries Total
Cost
1 January 2022
292,663
375,539
55
668,257
Cashflows
- 247,291
-7,610
94,958
- 159,943
Change in interest
-2,856
-271
0
-3,127
Addition
113,000
0
0
113,000
Disposal
0
-107,734
0
-107,734
31 December 2022
155,516
259,924
95,013
510,453
Cashflows
22,588
-8,108
-36,757
-22,277
Change in interest
464
0
0
464
31 December 2023
178,568
251,816
58,256
488,640
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
43
Parent Note 8: Financial instruments by category
Amounts in USD thousands
Carrying
amount
2023
Fair Value
2023
Carrying
amount
2022
Fair Value
2022
Carried at amortized cost
Trade receivables
48,670
59,935
Other receivables
16,927
32,333
Cash and cash equivalents
129,361
47,747
Financial assets at amortized costs
194,958
140,015
Carried at fair value
Derivatives
568
568
2,623
2,623
Total financial assets
195,526
142,638
Carried at amortized costs
Borrowings
236,824
236,824
250,529
250,529
Lease liabilities
251,816
259,924
Trade payables
20,970
13,876
Other payables
23,631
26,132
Financial liabilities at amortized costs
533,241
550,461
Carried at fair value
Derivatives
3,218
3,218
2,805
2,805
Total financial liabilities
536,459
553,266
Financial instruments measured at fair value
Fair value of derivatives is within level 2 of the fair value hierarchy and is calculated on the basis of
observable market data as of the end of the reporting period.
Financial instruments carried at amortised cost
Fair value of the short-term financial assets and other financial liabilities carried at amortised cost is
not materially different from the carrying amount. In general, fair value is determined primarily based
on the present value of expected future cash flows. Where a market price was available, how-ever, this
was deemed to be the fair value.
Parent Note 9: Financial risks
Maturities of liabilities and
commitments
Cash flows including interest
Amounts in USD thousands
Carrying
amount
0-1 year 1-5 years 5- years Total
2023
Borrowings
236,824
109,022
137,708
0
246,730
Lease liabilities
251,816
24,606
289,932
0
314,538
Trade payables
20,970
20,970
0
0
20,970
Other payables
23,631
23,631
0
0
23,631
Non-derivative financial liabilities
533,241
178,229
427,640
0
605,869
Derivatives, payables (excluding interest)
3,218
3,218
0
0
3,218
Total recognised in balance sheet
536,459
181,447
427,640
0
609,087
2022
Borrowings
250,529
132,207
144,903
0
277,110
Lease liabilities
259,924
24,539
98,223
216,315
339,077
Trade payables
13,876
13,876
0
0
13,876
Other payables
26,132
26,132
0
0
26,132
Non-derivative financial liabilities
550,461
196,754
243,126
216,315
656,195
Derivatives, payables (excluding interest)
2,805
2,805
0
0
2,805
Total recognised in balance sheet
553,266
199,559
243,126
216,315
659,000
For description of financial risks, a reference is made to note 12 in the consolidated financial statements.
Maturity analysis of trade receivables
2023
2022
Receivables not due
36,557
41,246
Less than 90 days overdue
11,568
15,431
More than 90 days overdue
3,108
4,227
Receivables, gross
51,233
60,904
Expected credit loss
- 2,563
- 969
Carrying amount
48,670
59,935
Approx. 92.6% (3.4%) of the expected credit loss is related to trade receivables overdue by more than
one year.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
44
Parent Note 10: Cash flow specifications
Amounts in USD thousands
2023
2022
Inventories
- 1,429
- 793
Trade receivables
9,671
- 30,196
Other receivables and prepayments
14,136
- 30,952
Trade payables and other payables
6,100
18,146
Exchange rate adjustment of working capital
42
- 1,235
Change in working capital Total
28,520
- 45,030
Additions
- 17,268
- 122,818
Purchase of property, plant and equipment Total
- 17,268
- 122,818
Parent Note 11: Derivatives
Hedges consists of currency derivatives and interest rate derivatives. Foreign exchange forwards
contracts are used to hedge the currency risk related to recognised and unrecognised transactions.
Interest rate swaps are used to hedge interest rate exposure on borrowings.
Amounts in USD thousands
2023
2022
Non-current receivables
-568
-2,623
Current receivables
0
0
Non-current liabilities
0
0
Current liabilities
3,218
2,805
Liabilities, net
2,650
182
Hedge of operating cash flows in foreign currencies
Currency derivatives hedge future operating costs and are recognised on an ongoing basis in the income
statement. The maturity of the hedges is within a year.
For hedges related to operating cash flows -USD 0.1m (0.7m) is recognised in other comprehensive
income and USD 0.1m (0.2m) is in the cash flow hedge reserve in equity at 31 December 2023.
Amounts in USD thousands
2023
2022
Hedging foreign exchange risk on operating costs
247
-310
Hedging interest rate risk
5,313
1,225
Total effective hedging
5,560
915
Ineffectiveness recognised in financial expenses
-1,794
-4,354
Total reclassified from equity reserve for hedges
3,766
-3,439
Hedge of borrowings
Interest rate swaps are used to swap variable interest payments on term loans to fixed interest
payments. All interest rate swaps are designated as cash flow hedges.
The notional amount of interest rate swaps at 31 December 2023 amounts to USD 0 (121.1m). At 31
December 2022, they are all denominated in USD and the average fixed rate of the interest rate swaps
is 2.78%.
For cash flow hedges related to borrowings -USD 4.2m (11.7m) is recognised in other comprehensive
income and USD 0 (4.2m) is in the cash flow hedges reserve in equity at 31 December 2023.
The hedge ratio are 1:1 for all hedging relationships.
The fair value of derivatives held at the balance sheet date can be allocated by type as follows:
Fair value,
asset
Fair value,
liability
Nominal
amount of
derivative
Fair value,
asset
Fair value,
liability
Nominal
amount of
derivative
Amounts in USD thousands
2023
2023
2023
2022
2022
2022
Interest rate swaps
- cash flow hedges
568
3,361
0
2,623
3,025
121,097
- fair value hedges
0
0
0
0
0
0
Total
568
3,361
0
2,623
3,025
121,097
Hedge of cash flows and
investments in foreign currencies
Main currencies hedged
- EUR
59
0
5,600
42
0
5,050
- DKK
53
0
5,100
115
0
6,848
Other currencies
31
0
2,120
63
0
2,550
Total
143
0
12,820
220
0
14,448
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
45
Parent Note 12: Related parties
Amounts in USD thousands
2023
2022
Income statement
Revenue
0
0
Operating costs
-14,664
-15,534
Financial expenses
-5,230
-3,855
Assets
Trade receivables
1,457
9,281
Other receivables
1,232
11,800
Tax receivables
3,121
2,378
Liabilities
Loans from subsidiaries
58,256
95,013
Trade payables
2,956
1,386
Other payables
1,998
1,228
Tax payables
530
273
A.P. Møller Holding A/S, Copenhagen, Denmark has control over the Company and prepares
consolidated financial statements. A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond til almene
Formaal is the ultimate owner. Other related parties include A.P. Møller Holding A/S, and all its
subsidiaries and affiliates.
Parent Note 13: Contract balances
Amounts in USD thousands
2023 2022
Trade receivables from contracts with customers
29,911
31,384
Accrued income
-contract asset 19,299
28,429
Deferred income
-contract liability 4,656
3,989
Reference is made to note 17 of the consolidated financial statements for more details on the balances.
Parent Note 14: Accounting policies
General Accounting Policies
The financial statements for 2023 for Maersk Product Tankers A/S have been prepared on a going
concern basis and in accordance with the International Financial Reporting Standards (IFRS) as adopted
by the EU and further requirements in the Danish Financial Statements Act. The accounting policies of
the Company are consistent with those applied in the Group’s financial statements 2023 (note 18 in the
consolidated financial statements) with the following exception:
Investments in Subsidiaries
Investments in subsidiaries are measured as per the equity method. The initial investment is recognised
at cost and adjusted thereafter to recognise the share of profits, losses and other adjustments. The
Management assesses impairment for investment in subsidiaries and determines the amount generally
consistent with the assumptions stated in Note 19 Significant accounting policies in the consolidated
financial statements.
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REPORTS
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2023 ANNUAL REPORT· REPORTS
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Executive Management
Board of Directors
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March 2024
CVR No 33 77 12 31
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ADDITIONAL
INFORMATION
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2023 ANNUAL REPORT · ADDITIONAL INFORMATION
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BOARD OF DIRECTORS
The Board of Directors appoints Executive Management and sets out its
responsibilities and conditions, which includes the day-to-
day management of the company and implementation of strategy.
MARTIN N. LARSEN
Chair of the Board of Directors
BIRGITTE SCHOU
Member of the Board of Directors
Gender
Male
Joined the board
2017
Martin N. Larsen, MSc in Economics & Finance and Executive MBA, CFO at
A.P. Møller Holding A/S. Past experience includes several finance roles in
A.P. Møller
- Mærsk A/S.
Chair, Board of Directors
Navigare Capital
Partners A/S
Maersk Supply Service
Holding ApS
Member of the Board of Directors:
Assuranceforeningen SKULD (Gjensidige) (Vice Chair); Maersk Tankers A/S
Other management duties:
MVKH ApS (CEO)
Martin N. Larsen is appointed to the Board of Directors in a number of
entities controlled by A.P. Møller Holding A/S
Gender
Female
Joined the board
2022
Birgitte Schou, MSc in Business Administration & Auditing, Head of
Accounting & Tax at A.P. Møller Holding A/S. State
Authorised P
ublic
A
ccountant and formerly Partner in a leading global audit firm.
Member of the Board of Directors:
DISfonden
; Operaparkfonden
Birgitte Schou is appointed to the Board of Directors in a number of entities
fully owned by A.P. Møller Holding A/S.
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TAKUYA SHIRAI
Member of the Board of Directors
ERIK BERGOO
Member of the Board of Directors
Gender
Male
Joined the board
2023
Takuya Shirai is Operating Officer at Mitsui & Co., LTD.’s Mobility Business
Unit II. He has worked at the company for more than three decades and
has held various leadership positions, including general manager at the
company’s shipping arm and deputy general manager of the strategy
department. He holds a Bachelor’s degree in Architecture and
Architectural Engineering from Kyoto University, Japan, and a leadership
education from Stanford University Graduate School of Business, U.S.
Member of the
board of directors:
Orient Marine Co., Ltd.
Mitsui Bussan Aerospace Co., Ltd.
Gender
Male
Joined the board
2024
Erik Bergoo, MSc in Industrial Engineering & Management, Head of Shipping
and Offshore Portfolio at A.P. Møller Holding A/S.
Previously held various
roles in global financial markets in Scandinavia, UK and Singapore.
Erik Bergoo is appointed to the Board of Directors in a number of entities fully
owned by A.P. Møller Holding A/S.
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EXECUTIVE MANAGEMENT
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TINA REVSBECH, CHIEF EXECUTIVE OFFICER
MORTEN M. CHRISTENSEN, CHIEF FINANCIAL OFFICER
Gender
Female
Joined the executive management
2024
Tina
Revsbech has been appointed Chief Executive Officer of Maersk Product
Tankers in 2024
and Chief Executive Officer of Maersk Tankers since September
2023. She has more than three decades of industry experience. Previously, Tina
has worked as Executive Vice President at Fednav Limited, CEO at BW Tankers
and Senior Vice President at Torm. Earlier in her
career, Tina spent 15 years at
Maersk Tankers, where she held positions as Head of Chartering and Head of
Maersk Tankers for Americas and Singapore, respectively.
Other management duties:
Maersk Tankers A/S (C
EO)
Gender
Male
Joined the executive management
2018
Morten M. Christensen’s responsibilities include finance, strategy, legal and
technology. He has more than a decade of experience in the financial sector. This
includes executive positions at Danske Bank, including
interim Chief Financial
Officer, Chief of Staff and Head of Group Finance. He holds a Master of
Mathematics and Economics and a PhD in Finance from the University of
Southern Denmark.
Other management duties:
Maersk Tankers A/S (CFO)
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CLAUS GRØNBORG, CHIEF INVESTMENT OFFICER
Gender
Male
Joined the executive management
2017
Claus Gr
ønborg is responsible for the company’s commercial activities in
his role as
Chief Investment Officer at Maersk Product Tankers and
Maersk Tankers.
In this position, Grønborg is spearheading business
development and new investments, with a particular focus on solutions
that help shipowners boost earnings and cut the industry’s carbon
emissions.
Until Tina Revsbech took over in 2024, he served as CEO of
Maersk Product Tankers.
Previously, he held executive positions,
including Chief Commercial Officer, at Maersk Tankers.
He has a
Bachelor’s degree in Chinese from Beijing Language and Culture
University and an Executive MBA from Columbia Business School/London
Business School.
Member of the Board of Directors:
ITOPF Limited
Other management duties:
Maersk Tankers A/S (CIO)
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COLOPHON
Board of Directors
Martin Nørkjær Larsen, Chairman
Birgitte Schou
Takuya Shirai
Erik Berg
oo
Executive Management
Tina Revsbech, CEO
Morten Mosegaard Christensen, CFO
Claus Gr
ønborg, CIO
Auditor
Produced in Denmark 202
4
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
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Maersk Product Tankers A/S
Holmbladsgade 133
DK
- 2300 Copenhagen S
Phone +45 89 87 00 40
Company reg. no. 39 06 70 64