tr
Company reg. no. 39 06 70 64
2024 Annual Report
The report was presented and approved at the Annual General Meeting
Chair of the meeting Anette Ryde
3 April 2025
MAERSK PRODUCT TANKERS A/S
MANAGEMENT REVIEW
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CONTENTS
Management review .......................................... 3
Management review ........................................................................................4
Energy value chain ............................................................................................5
Key figures and financial ratios .........................................................................6
Sustainability ....................................................................................................8
Financial statements ..........................................10
Reports ..............................................................44
Statement of the Board of Directors and the Executive Management ..........45
Independent auditor’s report .........................................................................46
Additional information ......................................48
Board of Directors ..........................................................................................49
Executive Management ..................................................................................51
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MANAGEMENT REVIEW
MAERSK PRODUCT TANKERS A/S
· MANAGEMENT REVIEW
MAERSK PRODUCT TANKERS A/S
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MANAGEMENT
REVIEW
Maersk Product Tankers is a significant player in the product tanker industry,
owning 39 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 2024 with revenue of
USD 575.7 million (USD 639.9 million), a result before tax of USD 215.2
million (USD 250.4 million) and a positive cash flow from operations of USD
259.7 million (USD 316.7 million). The results were positively impacted by
high spot market rates and have been supported by gains from the sale of
vessels.
MARKET
Overall, 2024 was another good year across tanker segments, although with
a continued high level of volatility. Full year product tanker earnings were 5-
15% above 2023 levels but went sharply into decline in Q3 and Q4.
As 2024 was a year of modest new building deliveries, the decline was driven
by weakened demand. The two primary drivers were oil arbitrages returning
to historical ranges and the utilisation of the world fleet finding its new most
efficient modus operandi after reeling from previous years’ geopolitical
shocks, and China’s economy spluttering.
ACTIVITIES DURING THE YEAR
The asset markets remained active during 2024, driven by high tanker
demand and surging asset prices. We sold five vessels of older tonnage at
attractive prices and delivered five vessels during the year and expect to
deliver another vessel in early 2025. By year end, the fleet totalled 39 vessels
compared to 44 vessels in 2023.
The shipbuilding contracts for Very Large Ammonia Carriers entered into in
2023 were during 2024 transferred to an affiliated company through a
dividend-in-kind.
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.
During 2024, Maersk Product Tankers worked with Njord to apply 7 different
technologies across the fleet to make it more efficient.
In 2024 we further partnered with Njord to install 5 Wind-Assisted
Propulsion System Installations, making it the largest deployment of suction
sails in shipping to date. The system will reduce the fuel consumption and
lower the carbon footprint of the vessels.
SAFETY
The geopolitical crises and escalating tensions between several countries
remain a concern. Due to the developments through 2024, important areas
such as the Red Sea remain at high risk.
Maersk Product Tankers is committed to prioritise the safety of our people,
cargo and assets and monitoring the latest developments continuously to
ensure that appropriate measures are taken to safeguard our interest.
OUTLOOK
In 2025, geopolitical events will continue as the main driver for the market
and visibility is limited. As newbuilding deliveries pick up in 2025, we expect
markets to continue their decline and earnings to realize considerably lower
than in 2024. We expect the EBIT for Maersk Product Tankers in 2025 to be
between USD 20m and USD 75m.
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,
10% of vessel days in 2025 have been covered through time-charters.
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 2024, Maersk Product Tankers had 50% (55% in 2023) of the
exchange rate risk of its full year 2025 spend hedged through the use of FX
hedges.
Maersk Product Tankers’ primary financing currency is USD, but 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 2024, 64% (58%) of Maersk
Product Tankers’ total debt was, by nature, fixed rate. The change of the
fixed rate ratio from 58% in 2023 to 64% is due to a lower floating-rate loan
exposure through repayments.
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
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VESSEL SEGMENTS IN MAERSK PRODUCT TANKERS’ FLEET (2024)
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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* Cash in subsidiary on distribution of dividend-in-kind
Please see definitions in Note 18 of the consolidated financial statements.
KEY FIGURES AND FINANCIAL RATIOS
Amounts in USD million
Income statement
2024
2023
2022
2021
2020
Revenue
575.7
639.9
708.3
433.0
663.6
Profit before depreciation and impairment losses (EBITDA)
262.8
308.1
324.4
69.5
210.8
Depreciation and amortisation
- 72.3
-74.0
-88.7
-100.1
-105.2
Impairment reversals and losses
2.8
6.7
20.9
10.1
80.4
Gain/loss on sale of non-current assets, etc., net
43.5
32.1
40.4
11.6
11.8
Profit/loss before financial Items (EBIT)
236.9
272.9
297.0
-8.9
197.8
Financial items, net
- 21.7
-22.5
-30.5
-49.7
-39.0
Profit/loss before tax
215.2
250.4
266.5
-58.6
158.8
Tax
13.0
10.9
1.9
12.5
1.9
Profit/loss for the year
228.2
261.3
268.4
-46.1
160.7
Balance sheet
Total assets
711.8
987.8
996.9
1,148.8
1,486.9
Total equity
258.1
441.2
484.2
353.4
626.5
Net investments in property, plant and equipment
- 70.6
- 60.5
- 96.6
-266.5
-204.1
Cash flow statement
Cash flow from operating activities
259.7
316.7
245.0
29.1
192.4
Cash flow used for investing activities
-263.5
*)
35.2
195.0
277.4
-9.2
Free cash flow
-3.8
351.9
440.0
306.5
183.2
Financial ratios
Profit margin
45.7%
48.2%
45.8%
16.0%
31.8%
Equity ratio
36.3%
44.7%
48.6%
30.8%
42.1%
Return on equity
65.2%
56.5%
64.1%
-9.4%
27.5%
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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 UNGC 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.
In 2024, we continued to uphold our commitment to reducing emissions and
enhancing operational efficiency. Our efforts have yielded good results, with
Maersk Product Tankers fleet emissions showing a notable decrease.
Emissions are now 36% lower than in 2008, an improvement from the 31%
reduction achieved in 2023. This progress is measured using the Energy
Efficiency Operational Indicator (EEOI), an industry-wide metric that
quantifies CO2 emissions per unit of cargo, expressed in grams per tonne-
nautical 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 8 vessels dry
docked in 2024. 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. During 2024, Maersk Product Tankers
worked with Njord to apply 7 different technologies across the fleet to make
it more efficient.
In 2024 we further partnered with Njord to install 5 Wind-Assisted
Propulsion System Installations, making it the largest deployment of suction
sails in shipping to date.
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
Ensuring the safety and welfare of our seafarers remains our top priority.
In 2024, two Lost Time Incident (LTI) personal injury cases were recorded on
MPT vessels, down from three in 2023. Our Total Recorded Case Frequency
(TRCF) for 2024 was 0.96, and our Lost Time Incident Frequency (LTIF) was
0.27.
Two significant incidents (LTI) included a Fatality during cargo tank entry by
a senior officer and a leg injury during movement on stairs in the Engine
Room. In both cases, Maersk Product Tankers and our technical managers
provided full support to the crew members' families, in line with our Core
Values. We thoroughly analyze and share lessons learned from safety
incidents within the Maersk Product Tankers fleet.
There were no overboard spills during the year, and we have been
collaborating closely with our Technical Managers to reinforce our zero-
harm commitment to the environment.
The Oil Companies International Marine Forum (OCIMF) has rolled out an
updated Ship Inspection Report Programme (SIRE 2.0) effective Sep 02,
2024. The required trainings and guidance were provided to personnel both
onboard and ashore and the Technical Managers have followed up diligently
to ensure fleet preparedness for the new SIRE 2.0 inspections. MPT is closely
monitoring the fleet performance under the SIRE 2.0 regime and following
up appropriately.
We remain steadfast in our commitment to safety and continue to strive for
zero-incident operations.
SUSTAINABILITY
MAERSK PRODUCT TANKERS A/S
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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 with 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 16 new sanctions packages
introduced by the EU (the latest in February 2025) 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 2024, as a result of the
work, the fleet traded in compliance with these complex sanctions
landscape.
The maritime industry poses an inherent risk of corruption due to the
prevalence of administrative monopolies over services such as seaports 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’ 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 continues to ensure
robust enforcement of its strict anti-corruption policy, including zero-
tolerance to facilitation payments. Both Maersk Tankers and Synergy Group
are members of the Maritime Anti-Corruption Network (MACN). No
corruption or bribery cases were reported in 2024.
As a company that operates globally, we have a large network of suppliers
which implies a risk of human rights violations in the value chain that could
have negative repercussions on Maersk Tankers. 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 requires that all counterparties operate in accordance with
responsible business principles detailed in the Third-Party Code of Conduct
and in full compliance with all applicable laws and regulations. The Third-
Party Code of Conduct deals with business ethics, health and safety,
environment, working conditions and employment practices, including
human rights, and diversity, equity and inclusion. Periodic reviews and
follow-up audits as per our internal risk procedures are conducted to monitor
the compliance levels. In addition, Maersk Tankers offers a Whistleblower
hotline where internal and external parties can report misconduct.
Maersk Tankers progressed the work in 2024. 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/SUSTAINABILITY
DIVERSITY, EQUITY AND INCLUSION
Maersk Product Tankers is dedicated to advancing Diversity, Equity, and
Inclusion (DEI) by integrating DEI into our culture, mindsets, processes, and
daily collaboration. In 2024, we developed a new reward philosophy and
model to promote enhanced fairness and equity. Our structured,
standardized, and aligned approach to rewards ensures a fair, consistent,
sustainable, and scalable framework, reinforcing our commitment to DEI,
and our dedication to eliminating biases.
Our strategic partnership and collaborations also contribute to enhanced
perspectives and the co-creation of better innovations, operations, and
solutions. This collaborative approach helps us leverage diverse viewpoints
to drive safety, continuous improvement, and value creation.
In accordance with the guidelines from the Danish Business Authority,
there is equal representation in the Board of Directors and other
management levels of Maersk Product Tankers.
Management
Level
Number of members
Share of under-
represented gender
Board of directors
4 (share of
underrepresented
gender is 1 out of 4)
25%
Other
management
levels
3 (share of
underrepresented
gender is 1 out of 3)
33%
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
10
FINANCIAL STATEMENTS
Consolidated financial statements | Parent company financial statements | Management’s statement
| Independent auditor’s report
MAERSK PRODUCT TANKERS A/S
2024 ANNUAL REPORT· FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
11
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
2024 ANNUAL REPORT· FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
12
FINANCIAL STATEMENTS
CONTENTS
Consolidated financial statements ........................................... 13
Consolidated income statement for 1 January to 31 December ........................................................ 15
Consolidated statement of comprehensive income .......................................................................... 15
Consolidated balance sheet at 31 December ..................................................................................... 16
Consolidated cash flow statement ..................................................................................................... 17
Consolidated statement of changes in equity .................................................................................... 17
Notes to consolidated financial statements ............................. 18
Note 1: Operating costs ....................................................................................................................... 19
Note 2: Gain on sale of non-current assets, etc., net .......................................................................... 19
Note 3: Financial income and expenses .............................................................................................. 19
Note 4: Tax .......................................................................................................................................... 20
Note 5: Property, plant and equipment incl. impairment ................................................................... 20
Note 6: Leases ..................................................................................................................................... 21
Note 7: Assets held for sale and assets sold during the year............................................................... 22
Note 8: Borrowings .............................................................................................................................. 22
Note 9: Net debt .................................................................................................................................. 23
Note 10: Provisions .............................................................................................................................. 21
Note 11: Financial instruments by category ........................................................................................ 21
Note 12: Financial risks, etc. ................................................................................................................ 22
Note 13: Commitments ....................................................................................................................... 24
Note 14: Cash flow specifications ........................................................................................................ 24
Note 15: Derivatives ............................................................................................................................ 25
Note 16: Related parties ...................................................................................................................... 26
Note 17: Contract balances ................................................................................................................. 26
Note 18: Significant accounting policies .............................................................................................. 29
Note 19: Significant accounting estimates and judgements................................................................ 32
Note 20: Contingent assets, liabilities and pledges ............................................................................. 31
Note 21: Events after the balance sheet date ..................................................................................... 31
Note 22: Company overview ............................................................................................................... 31
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
13
Note
Amounts in USD thousands
2024
2023
Revenue
1
Operating costs
- 312,752
- 332,989
Other income
Other costs
- 1,563
- 1,207
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
- 69,512
- 67,317
Profit before financial items (EBIT)
3
Financial income
3
Financial expenses
- 28,120
- 31,988
Profit before tax
4
Tax
Profit for the year
Note
Amounts in USD thousands
2024
2023
Profit for the year
Cash flow hedges
Value adjustment of hedges for the year
-1,235
-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
-461
-4,262
Other comprehensive income, net of tax
-461
-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
14
Note
Amounts in USD thousands
2024
2023
5
Property, plant and equipment
6
Right-of-use asset
15
Derivatives
Deferred tax assets
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
2024
2023
Share capital
Retained earnings
Reserves for hedging
-318
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
15
Note
Amounts in USD thousands
2024
2023
Profit before financial items (EBIT)
Depreciation, impairment losses and impairment reversals, net
2
Gain on sale of non-current assets
-43,529
-32,140
Profit before depreciation and impairment losses (EBITDA)
14
Change in working capital
Change in provisions
-460
Other non-cash items
-1,583
Cash generated from operations before financial items and tax
Interest received
Interest paid
-30,711
-28,564
Tax received
Net cash from operating activities
14
Investment in vessels
-70,639
-60,546
Change in deposits and trade payables for purchase of vessels
Proceeds from disposal
Cash in subsidiary on distribution of dividend-in-kind
-265,057
Change in loan receivables
Net cash from investing activities
-263,511
Dividend distributed
-75,000
-300,000
Proceeds from new borrowings
Repayment of borrowings
-185,900
-165,150
Net cash from financing activities
-124,900
-285,150
Net cash flow for the year
-128,671
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 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
2024
Profit for the year
Other comprehensive income, net of tax
-461
-461
Total comprehensive income for the year
-461
Extraordinary dividends to shareholders
-410,796
-410,796
Total transactions with shareholders
-410,796
-410,796
Equity 31 December 2024
-318
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
16
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
2024 ANNUAL REPORT· FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
17
Note 1: Operating costs
Amounts in USD thousands
2024
2023
Bunker costs
97,748
107,213
Voyage costs
30,098
31,738
Vessel operating costs
105,965
110,389
Port costs
58,713
57,620
Staff costs
4,131
5,164
Management fees
19,453
21,863
Rent and lease costs
-79
147
Other operating costs
- 3,276
- 1,145
Total operating costs
312,752
332,989
Remuneration of employees
Wages and salaries
3,893
4,852
Other Benefits
70
115
Social Security Contributions
167
197
Total remuneration
4,131
5,164
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 2.3m (USD 1.5m) 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
2024
2023
Statutory audit
74
76
Other assurance engagements
0
0
Tax advisory services
51
80
Other Services
0
4
Total fees
124
160
Note 2: Gain on sale of non-current assets, etc., net
Amounts in USD thousands
2024
2023
Gain on sale of vessels
43,529
32,140
Gain on sale of non-current assets, etc., net
43,529
32,140
Note 3: Financial income and expenses
Amounts in USD thousands
2024
2023
Interest expenses on liabilities
- 30,018
- 32,083
Of which borrowing costs capitalised on assets
1
1,898
0
Interest income on loans and receivables
6,089
4,158
Fair value adjustment transferred from equity hedge reserve gain/(loss)
2
158
5,313
Net interest expenses
- 21,872
- 22,612
Exchange rate gains on bank balances, borrowings and working capital
164
95
Net foreign exchange gains
164
95
Financial expenses, net
- 21,709
- 22,517
Of which:
Financial income
6,411
9,471
Financial expenses
- 28,120
- 31,988
1
In 2024, the capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation was 7.1%.
2
In 2021, the fair value adjustment transferred from equity hedge reserve (loss) of USD -8,941k was triggered by the unwinding of
interest rate swaps for borrowings terminated in 2021 by following the hypothetical derivative method. This gave rise to a USD
692k and USD 1,794k of fair value adjustment transferred from equity hedge reserve (gain) in 2024 and 2023 respectively. The gain
is partially offset by USD 534k (in addition to USD 3,519k in 2023) 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
18
Note 4: Tax
Amounts in USD thousands
2024
2023
Tax recognised in the income statement
Current tax on profits for the year
3,563
2,541
Adjustment for current tax of prior periods
5,396
8,610
Pillar II top up tax
-1,367
0
Total current tax
7,593
11,151
Recognition of previously unrecognised deferred tax assets
5,628
0
Total deferred tax
5,628
0
Total income tax
13,221
11,151
Tonnage and freight tax
- 219
- 257
Total tax expense/income
13,002
10,894
Tax reconciliation
Profit/loss before tax
215,155
250,414
Profit/loss subject to Danish and foreign tonnage taxation, etc.
- 236,864
- 272,931
Profit/loss before tax, adjusted
-21,709
-22,517
Tax using the Danish corporation tax rate (22.0%)
4,776
4,954
Tax rate deviations in foreign jurisdictions
562
343
Use of previously unrecognised net financial expenses in joint taxation
6,103
8,883
Adjustment to previous years' taxes
-707
-273
Other differences, net
-1,774
-2,756
Change in recoverability of deferred tax asset
5,628
0
Pillar II top up tax
-1,367
0
Total income tax
13,221
11,151
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
2024
2023
Tax loss carry forward
25,582
43,176
Total
25,582
43,176
The tax value of the loss carry forward is USD5.6m (USD9.5m). The deferred tax assets have been recognised in
2024 and is expected to be utilised as part of the joint taxation latest in 2026.
In 2023, 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
1 January 2023
1,557,700
0
631
1,558,331
Addition
28,874
0
31,672
60,546
Disposal
-184,768
0
0
-184,768
Transfer
6,074
406
-6,480
0
Transfer, assets held for sales
-45,357
0
0
-45,357
31 December 2023
1,362,523
406
25,823
1,388,752
Addition
19,542
0
52,990
72,532
Disposal
-123,055
0
0
-123,055
Disposal on transfer of business
0
0
-70,738
-70,738
Transfer
2,702
0
-2,702
0
Transfer, assets held for sales
-29,423
0
0
-29,423
31 December 2024
1,232,289
406
5,373
1,238,068
Depreciation and impairment losses
1 January 2023
861,062
0
0
861,062
Depreciation
73,895
59
0
73,954
Reversal of impairment
-6,749
0
0
-6,749
Disposal
-148,933
0
0
-148,933
Transfer, assets held for sale
-39,879
0
0
-39,879
31 December 2023
739,396
59
0
739,455
Depreciation
71,904
134
0
72,038
Reversal of impairment
-2,769
0
0
-2,769
Disposal
-99,877
0
0
-99,877
Transfer, assets held for sale
-24,845
0
0
-24,845
31 December 2024
683,809
193
0
684,002
Carrying amount
31 December 2023
623,127
347
25,823
649,297
31 December 2024
548,480
213
5,373
554,066
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
19
Note 5: Property, plant and equipment incl. impairment-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 2024 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 2024, the Group has entered into agreements to sell five handytankers. Four of the vessels have been delivered
to the owners in 2024, while one handytanker remains under asset held for sale. These transactions resulted in a
total impairment reversal of USD 2.8m (USD 6.7m) and a gain on sale of USD 43.5m (USD 32.1m).
As the agreements concluded in 2024 and 2023 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 2024 amounts to USD 225.8m (cost price USD 323.2m less depreciation and
impairment of USD 97.4m).
Note 6: Leases
Amounts in USD thousands
Land and buildings
Total
Recognition of right-of-use asset
As at 1 January 2023
0
0
Additions
722
722
Depreciation
-112
-112
Disposal
0
0
As at 31 December 2023
610
610
Additions
0
0
Depreciation
-244
-244
Disposal
0
0
As at 31 December 2024
366
366
Net Carrying amount
As at 31 December 2023
610
610
As at 31 December 2024
366
366
Lease liability
As at 1 January 2023
0
0
Additions
722
722
Disposal
0
0
Interest expense
16
16
Lease payments
-120
-120
Foreign exchange movements
0
0
As at 31 December 2023
618
618
Additions
0
0
Disposal
0
0
Interest expense
24
24
Lease payments
-271
-271
Foreign exchange movements
0
0
As at 31 December 2024
371
371
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
20
Note 6: Leases -continued
Lease liabilities are recognised in the balance sheet as follows
Land and buildings
Total
2023
Non-current liabilities, presented in borrowings, non-current
384
384
Current liabilities, presented in borrowings, current
234
234
618
618
2024
Non-current liabilities, presented in borrowings, non-current
134
134
Current liabilities, presented in borrowings, current
238
238
371
371
Recognised in the profit and loss statement as follows:
2023
Interest expense relating to lease liability
16
16
2024
Interest expense relating to lease liability
24
24
Recognised in the cash flow statement as follows:
2023
Interest elements of lease payments, presented in "interest paid"
-16
-16
Principal elements of lease payments, presented in "repayment of borrowings"
-104
-104
-120
-120
2024
Interest elements of lease payments, presented in "interest paid"
-24
-24
Principal elements of lease payments, presented in "repayment of borrowings"
-247
-247
-271
-271
Note 7: Assets held for sale and assets sold during the year
During the year 2024, the Group sold five vessels. This have led to a reversal of impairment of USD 2.8m. As at end
of 2024, the Group had one vessel presented as Asset Held for Sale, contributing to the amount of USD 4.6m.
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.
Note 8: Borrowings
Amounts in USD thousands
2024
2023
Bank and other credit institutions
241,473
430,409
Loans from a related company
139,279
0
Lease liabilities
371
618
Total
381,123
431,027
Of which:
Classified as non-current
232,117
381,246
Classified as current
149,006
49,781
Fair value of derivatives hedge of borrowings, net
-2,100
-2,793
Amounts in USD thousands
Borrowings
Leases
Total
Cost
1 January 2023
415,454
0
415,454
Acquisitions of leases
0
722
722
Cashflows
14,955
- 104
14,851
31 December 2023
430,409
618
431,027
Acquisitions of leases
0
0
0
Cashflows
- 49,656
- 247
- 49,904
31 December 2024
380,752
371
381,123
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
21
Note 9: Net Debt
Amounts in USD thousands
2024
2023
Borrowings
381,123
431,027
Loan receivables*
- 1,802
- 988
Cash and cash equivalents
- 54,272
- 182,943
Net debt
325,049
247,096
*Loan receivables are related to sale of vessels
Note 10: Provisions
Amounts in USD thousands
2024
2023
1 January
783
1,243
Provision made
585
360
Amount used
- 358
- 695
Amount reversed
0
- 125
31 December
1,010
783
Of which:
Classified as non-current
0
0
Classified as current
1,010
783
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 2024
Fair Value
2024
Carrying
amount 2023
Fair Value
2023
Carried at amortized cost
Loan receivables
1,802
1,802
988
988
Total interest-bearing receivables
1,802
1,802
988
988
Trade receivables
54,066
86,347
Other receivables
14,452
26,297
Cash and cash equivalents
54,272
182,943
Financial assets at amortized costs
124,592
296,575
Carried at fair value
Derivatives
993
993
568
568
Total financial assets
125,585
297,143
Carried at amortized costs
Borrowings
380,752
380,752
430,409
430,409
Lease liabilities
371
618
Trade payables
33,363
69,084
Other payables
26,883
33,511
Financial liabilities at amortized costs
441,369
533,621
Carried at fair value
Derivatives
3,411
3,411
3,218
3,218
Total financial liabilities
444,780
536,839
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
22
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.
Note 12: Financial risks, etc. -continued
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 2024.
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 0.2m (USD 0.3m) on the Group’s profit and loss and an adverse impact of
USD 0.7m (USD 1.0m) 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 2024, 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
2024. 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 decrease profit for the year by USD 0.9m and
increase other comprehensive income by USD 0 (2023: increase profit for the year by USD 0.03m and increase
other comprehensive income by USD 0). 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
23
Note 12: Financial risks, etc.-continued
Borrowings by interest rate level - Amounts in USD thousands
Carrying
amount
0-1 year
1-5 years
5- years
2024
0-3%
0
0
0
0
3-6%
27,254
1,658
25,596
0
>6%
353,869
147,348
206,521
0
Of which:
Bearing fixed interest
241,844
Bearing floating interest
139,279
2023
0-3%
0
0
0
0
3-6%
28,853
2,196
26,657
0
>6%
402,174
47,585
354,589
0
Of which:
Bearing fixed interest
251,027
Bearing floating interest
180,000
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. In 2023, 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.
Note 12: Financial risks, etc.-continued
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
2024
2023
Receivables not due
37,895
61,561
Less than 90 days overdue
11,535
22,590
More than 90 days overdue
6,221
5,364
Receivables, gross
55,651
89,515
Expected credit loss
- 1,585
- 3,168
Carrying amount
54,066
86,347
Approx. 12.6% (78.2%) 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 2024, the Group had a liquidity reserve of USD 304.0m
(337.6m), which includes undrawn loan facilities of USD 249.8m (USD 154.7m). The equity share of total equity
and liabilities was 36.3% at the end of 2024 (44.7%).
Liquidity reserve is defined as undrawn loan facilities with maturities in excess of 12 months, cash and bank
balances.
Note 12: Financial risks, etc.-continued
Maturities of liabilities and commitments
Cash flows including interest
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
24
Amounts in USD thousands
Carrying
amount
0-1 year
1-5 years
5- years
Total
2024
Borrowings
380,752
164,102
263,428
0
427,530
Lease liabilities
371
249
136
0
384
Trade payables
33,363
33,363
0
0
33,363
Other payables
26,883
26,883
0
0
26,883
Non-derivative financial liabilities
441,369
224,597
263,563
0
488,160
Derivatives, payables (excluding interest)
3,411
3,411
0
0
3,411
Total recognised in balance sheet
444,780
228,008
263,563
0
491,571
Total
444,780
228,008
263,563
0
491,571
2023
Borrowings
430,409
75,397
427,640
0
503,037
Lease liabilities
618
258
397
0
655
Trade payables
69,084
69,084
0
0
69,084
Other payables
33,510
33,510
0
0
33,510
Non-derivative financial liabilities
533,621
178,249
428,037
0
606,286
Derivatives, payables (excluding interest)
3,218
3,218
0
0
3,218
Total recognised in balance sheet
536,839
181467
428,037
0
609,504
Capital commitments
432,400
64,860
367,540
0
432,400
Total
969,239
246,327
795,577
0
1,041,904
The weighted average term to maturity of loan facilities in the Group is about two years as at 31 December 2024
(about three years at 31 December 2023).
Note 13: Commitments
Amounts in USD thousands
Newbuilding
of vessels
2023
Capital commitments relating to acquisition of non-current assets
432,400
As at 31 December 2023, the Group had commitments for four Ammonia carriers in total, and the commitments
were held in a subsidiary, Ammonia Carriers A/S. During the year, the subsidiary has been sold off.
Note 14: Cash flow specifications
Amounts in USD thousands
2024
2023
Inventories
5,047
- 307
Trade receivables
33,864
10,879
Other receivables and prepayments
12,347
28,648
Trade payables and other payables
- 44,350
- 7,626
Exchange rate adjustment of working capital
- 10
97
Change in working capital Total
6,899
31,691
Additions
- 72,537
- 35,668
Additions of which leases
0
722
Additions of which borrowing costs capitalised on assets
1,898
0
Change in deposits and trade payables for purchase of vessels
0
-25,600
Purchase of property, plant and equipment
- 70,639
- 60,546
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
25
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
2024
2023
Non-current receivables
-993
-568
Current liabilities
3,411
3,218
Liabilities, net
2,418
2,650
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 0.5m (-0.1m) is recognised in other comprehensive income and -
USD 0.3m (0.1m) is in the cash flow hedge reserve in equity at 31 December 2024.
Amounts in USD thousands
2024
2023
Hedging foreign exchange risk on operating costs
-240
247
Hedging interest rate risk
158
5,313
Total effective hedging
-82
5,560
Ineffectiveness recognised in financial expenses
-692
-1,794
Total reclassified from equity reserve for hedges
-774
3,766
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 2024 and 2023 amounts to USD 0.
For cash flow hedges related to borrowings USD 0 (-4.2m) is recognised in other comprehensive income and USD
0 is in the cash flow hedges reserve in equity at 31 December 2024 and 2023.
The hedge ratio are 1:1 for all hedging relationships.
Note 15: Derivatives -continued
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
2024
2024
2024
2023
2023
2023
Interest rate swaps
- cash flow hedges
993
3,093
0
568
3,361
0
- fair value hedges
0
0
0
0
0
0
Total
993
3,093
0
568
3,361
0
Hedge of cash flows and investments
in foreign currencies
Main currencies hedged
- EUR
0
226
5,800
59
0
5,600
- DKK
0
110
3,300
53
0
5,100
Other currencies
0
-18
690
31
0
2,120
Total
0
318
9,790
143
0
12,820
For information about risk management strategy, currencies, maturities, etc. reference is made
to note 12.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
26
Note 16: Related parties
Amounts in USD thousands
2024
2023
Income statement
Revenue
0
0
Operating costs
- 26,042
- 28,470
Other income
3,970
4,186
Financial expenses
- 5,885
- 11
Assets
Trade receivables
179
2,258
Other receivables
997
- 3,864
Tax receivables
3,828
12,004
Loan receivables
1,010
0
Liabilities
Bank and other credit institutions, etc. current
139,279
0
Trade payables
247
29,445
Other payables
0
4
Tax payables
476
530
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).
Note 17: Contract Balances
Amounts in USD thousands
2024
2023
Trade receivables from contracts with customers
39,206
58,343
Accrued income-contract asset
15,784
27,971
Deferred income-contract liability
5,450
7,451
The Group has entered into contracts with an income value of USD 40.0m (USD 42.9m) within one year and USD
19.4m (USD 59.5m) 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
27
Note 18: Significant accounting policies
Basis of preparation
The consolidated financial statements for 2024 for Maersk Product Tankers A/S (hereafter: "Maersk Product
Tankers") 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 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 2023 with the exception of the following accounting
standards that are effective from 1 January 2024 and endorsed by the EU:
• Amendment to IFRS 16 on sale and leaseback
• Amendment to IAS 1: Non-current liabilities with Covenants
• Amendment to IAS 7 and IFRS 7: Disclosure Supplier Finance Arrangements
The adoption of the new and changed standard has no material impact on the Maersk Product Tankers
consolidated annual report for 2024.
Consolidation
The consolidated financial statements consist of Maersk Product Tankers A/S and its subsidiary Maersk Tankers
Singapore Pte. Ltd. The company’s former subsidiary Ammonia Carriers A/S was during 2024 spun out through an
equity transaction.
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.
Note 18: Significant accounting policies-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.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
28
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.
Note 18: Significant accounting policies-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.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
29
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
30
Note 19: Significant accounting estimates and judgements
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 2024 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
31
Note 20: Contingent assets, liabilities and pledges
Contingent assets and liabilities
At end of 2024, the Group is involved in commercial claims and disputes, which are subject to uncertainty.
The Group has provided performance guarantees of USD 1,006m. The guarantees will come into effect if a related
company fails to make payment under the shipbuilding contracts.
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 297.6m have been pledged as security. As at 31 December 2024, the
borrowings under the pledged loan facility was USD 0.
Note 21: Events after the balance sheet date
In January 2025, Handytanker Maersk Bering was redelivered to new owners.
Note 22: Company overview
List of subsidiaries of Maersk Product Tankers A/S:
Subsidiary
Country of incorporation
Ownership share
Maersk Tankers Singapore Pte. Ltd.
Singapore
100%
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
32
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
2024 ANNUAL REPORT· FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
33
Parent company financial statements ...................................... 32
Parent Income statement ................................................................................................................... 34
Parent statement of comprehensive income ..................................................................................... 34
Parent Balance sheet at 31 December ............................................................................................... 35
Parent cash flow statement ................................................................................................................ 36
Parent statement of changes in equity ............................................................................................... 36
Notes to parent company financial statements ....................... 37
Parent Note 1: Operating costs ........................................................................................................... 38
Parent Note 2: Financial income and expenses ................................................................................... 38
Parent Note 3: Tax ............................................................................................................................... 38
Parent Note 4: Property, plant & equipment ...................................................................................... 39
Parent Note 5: Leases .......................................................................................................................... 39
Parent Note 6: Investment in subsidiaries ........................................................................................... 40
Parent Note 7: Borrowings .................................................................................................................. 40
Parent Note 8: Financial instruments by category .............................................................................. 41
Parent Note 9: Financial risks .............................................................................................................. 41
Parent Note 10: Cash flow specifications ............................................................................................ 42
Parent Note 11: Derivatives ................................................................................................................ 43
Parent Note 12: Related parties .......................................................................................................... 43
Parent Note 13: Contract balances ...................................................................................................... 43
Parent Note 14: Accounting policies ................................................................................................... 43
PARENT COMPANY FINANCIAL STATEMENTS
CONTENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
34
Note
Amounts in USD thousands
2024
2023
Revenue
309,937
333,329
1
Operating costs
- 168,784
- 167,413
Other income
0
80
Other costs
- 1,345
- 553
Profit before depreciation and impairment losses (EBITDA)
139,808
165,443
4,5
Depreciation
- 40,447
- 43,502
4
Impairment reversals and losses, net
1,610
6,064
Gain on sale of non-current assets, etc., net
19,247
27,417
Profit before financial items (EBIT)
120,218
155,422
Profit from subsidiaries
126,903
124,052
2
Financial income
6,892
7,863
2
Financial expenses
- 39,830
- 37,229
Profit before tax
214,184
250,108
3
Tax
13,973
11,200
Profit for the year
228,157
261,308
Note
Amounts in USD thousands
2024
2023
Profit for the year
228,157
261,308
Cash flow hedges:
Value adjustment of hedges for the year
- 1,235
- 496
Reclassified to income statement:
- operating costs
240
- 247
- financial expenses
534
- 3,519
Tax on other comprehensive income
0
0
Total items that have been or may be reclassified subsequently
- 461
- 4,262
Other comprehensive income, net of tax
- 461
- 4,262
Total comprehensive income for the year
227,696
257,046
PARENT INCOME STATEMENT
PARENT STATEMENT OF COMPREHENSIVE INCOME
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
35
Note
Amounts in USD thousands
2024
2023
4
Property, plant and equipment
164,664
184,265
5
Right of use asset
214,075
228,104
6
Investments in subsidiaries
367,770
350,924
Deferred tax assets
5,628
0
11
Derivatives
993
568
Total non-current assets
753,130
763,861
Inventories
7,018
9,414
9
Trade receivables
32,350
48,670
Tax receivables
3,828
12,004
Other receivables
219
16,927
Prepayments
2,568
2,852
Other current assets
38,965
80,453
Cash and cash equivalents
24,729
129,361
Total current assets
70,712
219,228
Total assets
823,842
983,089
Note
Amounts in USD thousands
2024
2023
Share capital
1,590
1,590
Retained Earnings
256,872
439,511
Reserves for hedging
- 318
143
Proposed dividend
0
0
Total equity
258,144
441,244
7
Borrowings, non-current
231,984
380,862
Total non-current liabilities
231,984
380,862
7
Borrowings, current
296,203
107,778
Provisions
287
200
Trade payables
13,206
20,970
11
Derivatives
3,411
3,218
Tax payables
1,843
530
Other payables
15,819
23,631
Deferred income
2,945
4,656
Other current liabilities
37,511
53,205
Total current liabilities
333,714
160,983
Total liabilities
565,698
541,845
Total equity and liabilities
823,842
983,089
PARENT BALANCE SHEET AT 31 DECEMBER
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
36
Note
Amounts in USD thousands
2024
2023
Profit before financial items
120,218
155,422
4
Depreciation, impairment
38,837
37,438
Gain on sale of non-current assets
- 19,247
- 27,417
Profit before depreciation and impairment losses (EBITDA)
139,808
165,443
10
Change in working capital
23,204
28,520
Change in provisions
87
- 220
Other non-cash items
-1,956
1,196
Cash generated from operations before financial items and tax
161,142
194,939
Interest received
5,730
2,281
Interest paid
- 35,457
- 32,914
Tax received
18,007
1,832
Net cash from operating activities
149,422
166,138
10
Investment in vessels
- 16,166
- 17,268
Proceeds from disposal
30,205
54,084
6
Dividend and capital reduction from subsidiaries
110,000
200,000
6
Capital injection in subsidiary
-265,000
-58
6
Group contribution
-70,738
0
Change in loan receivables
0
531
Net cash from investing activities
-211,699
237,289
Proceeds from new borrowings
136,000
180,000
Repayment of borrowings
- 188,335
- 165,056
Dividend paid to shareholders
- 75,000
- 300,000
Change in loans from a subsidiary
84,981
- 36,757
Net cash from financing activities
-42,354
-321,813
Net cash flow for the year
-104,632
81,614
Liquid funds at beginning of period
129,361
47,747
Exchange gain/loss on Liquid funds
0
0
Liquid funds at end of period
24,729
129,361
Amounts in USD thousands
Share capital
Reserve for
hedges
Retained
Earnings
Dividend
proposed
Total equity
Equity 1 January 2023
1,590
4,405
303,203
175,000
484,198
Profit for the year
0
0
261,308
0
261,308
Other comprehensive income, net of
tax
0
-4,262
0
0
-4,262
Total comprehensive income for the
year
0
-4,262
261,308
0
257,046
Dividends paid to shareholders
0
0
0
-175,000
-175,000
Extraordinary dividends to
shareholders
0
0
-125,000
0
-125,000
Total transactions with shareholders
0
0
-125,000
-175,000
-300,000
Equity 31 December 2023
1,590
143
439,511
0
441,244
2024
Profit for the year
0
0
228,157
0
228,157
Other comprehensive income, net of
tax
0
-461
0
0
-461
Total comprehensive income for the
year
0
-461
228,157
0
227,696
Extraordinary dividends to
shareholders
0
0
-410,796
0
-410,796
Total transactions with shareholders
0
0
-410,796
0
-410,796
Equity 31 December 2024
1,590
-318
256,872
0
258,144
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
37
NOTES TO
PARENT COMPANY
FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
2023 ANNUAL REPORT· FINANCIAL STATEMENTS
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
38
Parent Note 1: Operating costs
Maersk Product Tankers A/S has not had employees in 2024 or 2023, 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
2024
2023
Interest expenses on liabilities
- 39,830
- 37,278
Interest income on loans and receivables
6,545
2,550
Fair value adjustment transferred from equity hedge reserve gain
158
5,313
Net interest expenses
- 33,127
- 29,415
Exchange rate gain on bank balances, borrowings and working capital
189
49
Net foreign exchange gain
189
49
Financial expenses, net
- 32,937
- 29,366
Of which:
Financial income
6,892
7,863
Financial expenses
- 39,830
- 37,229
Parent Note 3: Tax
Amounts in USD thousands
2024
2023
Tax recognised in the income statement
Current tax on profits for the year
3,828
2,848
Adjustment for current tax of prior periods
6,103
8,609
Pillar II top up tax
- 1,367
0
Total current income tax
8,563
11,457
Recognition of previously unrecognised deferred tax assets
5,628
0
Total deferred tax
5,628
0
Total income tax
14,191
11,457
Tonnage and freight tax
- 219
- 257
Total tax income
13,973
11,200
Tax reconciliation
Profit/loss before tax
214,184
250,108
Profit/loss subject to Danish and foreign tonnage taxation, etc.
- 120,218
- 155,422
Profit/loss before tax, adjusted
93,966
94,686
Tax using the Danish corporation tax rate (22.0%)
- 20,672
- 20,831
Profit/loss excluding subsidiaries
27,919
27,291
Use of previously unrecognised net financial expenses in joint taxation
6,103
8,883
Adjustment to previous years' taxes
0
-273
Other differences, net
- 3,420
-3,613
Change in recoverability of deferred tax asset
5,628
0
Pillar II top up tax
- 1,367
0
Total income tax
14,191
11,457
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
2024
2023
Tax loss carry forward
25,582
43,176
Total
25,582
43,176
The tax value of the loss carry forward is USD 5.6m (USD 9.5m). The deferred tax assets have been recognised in
2024 and is expected to be utilised as part of the joint taxation latest in 2026. In 2023, 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
39
Parent Note 4: Property, plant & equipment
Amounts in USD thousands
Vessels
Assets under
construction
Total
Cost
1 January 2023
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
Addition
10,671
5,495
16,166
Disposal
-51,038
- 51,038
Transfer
1,150
-1,150
0
31 December 2024
322,251
4,566
326,817
Depreciation and impairment losses
1 January 2023
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
Depreciation
26,418
0
26,418
Reversal of impairment
- 1,610
0
- 1,610
Disposal
- 40,080
0
- 40,080
31 December 2024
162,152
0
162,152
Carrying amount:
31 December 2023
184,043
222
184,265
31 December 2024
160,098
4,566
164,664
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 2023
243,251
243,251
Depreciation
-15,147
-15,147
31 December 2023
228,104
228,104
Depreciation
- 14,029
- 14,029
31 December 2024
214,075
214,075
Net Carrying amount
31 December 2023
228,104
228,104
31 December 2024
214,075
214,075
Lease liabilities
1 January 2023
259,924
259,924
Lease payments
- 8,108
- 8,108
31 December 2023
251,816
251,816
Lease payments
- 8,662
- 8,662
31 December 2024
243,154
243,154
Lease liabilities are recognised in the balance sheet as follows
2024
2023
Non-current liabilities, presented in borrowings, non-current
233,949
243,154
Current liabilities, presented in borrowings, current
9,205
8,662
243,154
251,816
Recognised in the profit and loss statement as follows:
Interest expense relating to lease liability
- 15,944
- 16,431
- 15,944
- 16,431
Recognised in the cash flow statement as follows:
Interest elements of lease payments, presented in "interest paid"
- 15,944
- 16,431
Principal elements of lease payments, presented in "repayment of borrowings"
- 8,662
- 8,108
- 24,606
- 24,539
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
40
Parent Note 6: Investment in subsidiaries
Amounts in USD thousands
2024
2023
Cost as of 1 January
408,552
608,494
Share capital addition
265,000
58
Group contribution
70,738
0
Share capital reduction
- 110,000
- 200,000
Divestment of subsidiary
1
-335,796
0
Cost as of 31 December
298,494
408,552
Value adjustments as of 1 January
-57,628
-181,680
Share of profit for the period
126,903
124,052
Value adjustments as of 31 December
69,275
-57,628
Carrying amount as of 31 December
367,770
350,924
Subsidiaries
Amounts in USD thousands
Name
Domicile
Capital
Equity
Profit
Ownership
Interest
Maersk Tankers Singapore Pte. Ltd.
Singapore
200,000
367,770
126,903
100.0%
1
Divestment of Ammonia Carriers A/S was done in the form of a dividend-in-kind of nominally DKK 369,163,400 shares in
Ammonia Carriers A/S, corresponding to 100% of the share capital, equivalent to a value of USD 335,796,000, to the
Company’s shareholders.
Parent Note 7: Borrowings
Amounts in USD thousands
2024
2023
Bank and other credit institutions
- 1,681
178,568
Lease liabilities
243,154
251,816
Loan from a subsidiary
147,434
58,256
Loan from a related company
139,279
0
Total
528,186
488,640
Of which:
Classified as non-current
231,984
380,862
Classified as current
296,203
107,778
Derivatives hedge of borrowings, net
2,100
2,793
Amounts in USD thousands
Bank and other
credit
institutions
Leases
Loan from a
subsidiary
Loan from a
related company
Total
Cost
1 January 2023
155,516
259,924
95,013
0
510,453
Cashflows
22,588
-8,108
-36,757
0
-22,277
Change in interest
464
0
0
0
464
31 December 2023
178,568
251,816
58,256
0
488,640
Cashflows
-179,673
- 8,662
84,981
136,000
32,646
Change in interest
- 576
0
4,197
3,279
6,900
31 December 2024
- 1,681
243,154
147,434
139,279
528,186
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
41
Parent Note 8: Financial instruments by category
Amounts in USD thousands
Carrying
amount 2024
Fair Value
2024
Carrying
amount 2023
Fair Value
2023
Carried at amortized cost
Trade receivables
32,350
48,670
Other receivables
219
16,927
Cash and cash equivalents
24,729
129,361
Financial assets at amortized costs
57,298
194,958
Carried at fair value
Derivatives
993
993
568
568
Total financial assets
58,291
195,526
Carried at amortized costs
Borrowings
285,032
285,032
236,824
236,824
Lease liabilities
243,154
251,816
Trade payables
13,206
20,970
Other payables
15,819
23,631
Financial liabilities at amortized costs
557,211
533,241
Carried at fair value
Derivatives
3,411
3,411
3,218
3,218
Total financial liabilities
560,622
536,459
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
2024
Borrowings
285,032
286,998
- 1,965
0
285,033
Lease liabilities
243,154
24,539
265,393
0
289,932
Trade payables
13,206
13,206
0
0
13,206
Other payables
15,819
15,819
0
0
15,819
Non-derivative financial liabilities
557,211
340,562
263,428
0
603,990
Derivatives, payables (excluding interest)
3,411
3,411
0
0
3,411
Total recognised in balance sheet
560,622
343,973
263,428
0
607,401
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
For description of financial risks, a reference is made to note 12 in the consolidated financial statements.
Maturity analysis of trade receivables
2024
2023
Receivables not due
22,871
36,557
Less than 90 days overdue
7,005
11,568
More than 90 days overdue
3,080
3,108
Receivables, gross
32,957
51,233
Expected credit loss
- 607
- 2,563
Carrying amount
32,350
48,670
Approx. 16.7% (92.6%) of the expected credit loss is related to trade receivables overdue by more than one year.
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
42
Parent Note 10: Cash flow specifications
Amounts in USD thousands
2024
2023
Inventories
2,396
- 1,429
Trade receivables
18,276
9,671
Other receivables and prepayments
22,799
14,136
Trade payables and other payables
-20,287
6,100
Exchange rate adjustment of working capital
19
42
Change in working capital Total
23,204
28,520
Additions
- 16,166
- 17,268
Purchase of property, plant and equipment Total
- 16,166
- 17,268
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
2024
2023
Non-current receivables
-993
-568
Current liabilities
3,411
3,218
Liabilities, net
2,418
2,650
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 0.5m (-0.1m) is recognised in other comprehensive income and -
USD 0.3m (0.1m) is in the cash flow hedge reserve in equity at 31 December 2024.
Amounts in USD thousands
2024
2023
Hedging foreign exchange risk on operating costs
-240
247
Hedging interest rate risk
158
5,313
Total effective hedging
-82
5,560
Ineffectiveness recognised in financial expenses
-692
-1,794
Total reclassified from equity reserve for hedges
-774
3,766
Parent Note 11: Derivatives -continued
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 2024 and 2023 amounts to USD 0.
For cash flow hedges related to borrowings USD 0 (-4.2m) is recognised in other comprehensive income and USD
0 is in the cash flow hedges reserve in equity at 31 December 2024 and 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
2024
2024
2024
2023
2023
2023
Interest rate swaps
- cash flow hedges
993
3,093
0
568
3,361
0
- fair value hedges
0
0
0
0
0
0
Total
993
3,093
0
568
3,361
0
Hedge of cash flows and investments
in foreign currencies
Main currencies hedged
- EUR
0
226
5,800
59
0
5,600
- DKK
0
110
3,300
53
0
5,100
Other currencies
0
-18
690
31
0
2,120
Total
0
318
9,790
143
0
12,820
MAERSK PRODUCT TANKERS A/S
FINANCIAL STATEMENTS
43
Parent Note 12: Related parties
Amounts in USD thousands
2024
2023
Income statement
Revenue
0
0
Operating costs
-13,696
-14,664
Financial income
4,647
0
Financial expenses
-18,476
-5,230
Assets
Trade receivables
2
1,457
Other receivables
-1,423
1,232
Tax receivables
3,828
3,121
Liabilities
Loan from a subsidiary
147,434
58,256
Loan from a related company
139,279
0
Trade payables
-54
2,956
Other payables
0
1,998
Tax payables
476
530
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
2024
2023
Trade receivables from contracts with customers
24,570
29,911
Accrued income-contract asset
8,288
19,299
Deferred income-contract liability
2,945
4,656
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 2024 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 18 Significant accounting policies in the consolidated financial statements.
MAERSK PRODUCT TANKERS A/S
REPORTS
44
REPORTS
MAERSK PRODUCT TANKERS A/S
2023 ANNUAL REPORT· REPORTS
MAERSK PRODUCT TANKERS A/S
REPORTS
45
Executive Management
Board of Directors
MAERSK PRODUCT TANKERS A/S
REPORTS
46
MAERSK PRODUCT TANKERS A/S
REPORTS
47
CVR No 33 77 12 31
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
48
ADDITIONAL
INFORMATION
MAERSK PRODUCT TANKERS A/S
2023 ANNUAL REPORT · ADDITIONAL INFORMATION
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
49
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.
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 Public Accountant and formerly Partner
in a leading global audit firm.
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
50
TAKUYA SHIRAI
Member of the Board of Directors
ERIK BERGÖÖ
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.
Gender
Male
Joined the board
2024
Erik Bergöö, 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.
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
51
EXECUTIVE MANAGEMENT
MAERSK PRODUCT TANKERS A/S
2024 ANNUAL REPORT ADDITIONAL INFORMATION
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
52
TINA REVSBECH, CHIEF EXECUTIVE OFFICER
CHRISTIAN HUSS, 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.
Gender
Male
Joined the executive management
2024
Christian was appointed Chief Financial Officer of Maersk Tankers in September 2024 and
has the overall responsibility for Finance and Technology & Innovation. He has more than
two decades of experience from the shipping, logistics and energy sectors which includes
roles with NORDEN, DSV and Maersk Drilling. He is a qualified state authorised public
accountant with experience from KPMG and PwC and holds a master’s degree in business
administration and auditing from the Copenhagen Business School.
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
53
CLAUS GRØNBORG, CHIEF INVESTMENT OFFICER
Gender
Male
Joined the executive management
2017
Claus Grønborg 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.
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
54
COLOPHON
Board of Directors
Martin Nørkjær Larsen, Chair
Birgitte Schou
Takuya Shirai
Erik Bergöö
Executive Management
Tina Revsbech, CEO
Christian Huss, CFO
Claus Grønborg, CIO
Auditor
PricewaterhouseCoopers
Statsautoriseret
Revisionspartnerselskab
Produced in Denmark 2025
MAERSK PRODUCT TANKERS A/S
ADDITIONAL INFORMATION
55
Maersk Product Tankers A/S
Holmbladsgade 133
DK - 2300 Copenhagen S
Phone +45 89 87 00 40
Company reg. no. 39 06 70 64