CVR.no. 43 66 76 37
2024
Annual Report
Ultranav International ApS
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 ULTRANAV INTERNATIONAL AT A GLANCE | PAGE 2
TABLE OF CONTENTS
Ultranav International at a glance ..................................................................... 3
Mission & vision ............................................................................................................... 4
Main activities .................................................................................................................. 5
A large and diversified shipping group ............................................................................. 9
Financial review ............................................................................................... 10
Group key figures and ratios .......................................................................................... 11
2024 financial performance ........................................................................................... 12
Our business .................................................................................................... 13
Sustainability .................................................................................................................. 14
Corporate governance ................................................................................................... 15
Signatures ........................................................................................................ 16
Statement by the Board of Directors and Executive Management ............................... 17
Independent Auditor’s Report ....................................................................................... 18
Consolidated financial statements ................................................................... 21
Consolidated income statement .................................................................................... 22
Consolidated balance sheet ........................................................................................... 23
Consolidated statement of cash flows ........................................................................... 24
Consolidated statement of changes in equity ................................................................ 25
Notes to the consolidated financial statements ............................................................ 26
Parent company financial statements .............................................................. 74
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 ULTRANAV INTERNATIONAL AT A GLANCE | PAGE 3
ULTRANAV INTERNATIONAL AT A GLANCE
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 ULTRANAV INTERNATIONAL AT A GLANCE | PAGE 4
Excellence
We seek to contribute to
competitiveness to our customers
by anticipating and meeting their
needs.
We encourage creativity and
innovation, introducing solutions
that are beyond the ordinary.
We strive to continuously improve
the quality and effectiveness of
services rendered
Passion
We believe that personal
commitment and work well
done makes a difference.
We challenge ourselves to
create value and to exceed
customers’ expectations.
We are passionate about our
work and our company.
Integrity
We act in an ethical manner,
focused on sustainability and
safeguarding our reputation.
We encourage personal and
professional development and a
fair balance between work and
private life.
We promote team spirit in a
multicultural environment,
without discrimination of any
kind.
Safety
We are committed to developing
and stimulating a safe working
culture onboard ships and ashore.
We place safety first, to keep
health, life, environment,
cargoes, and assets free of risks.
We consider safety an integral
part of our mindset and key to
our business success.
Core values
MISSION & VISION
We aspire to be a partner you can
trust to provide efficient and safe
maritime transportation services to
the mutual benefit of our customers,
employees, communities and the
environment.
A partner you
can trust
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 ULTRANAV INTERNATIONAL AT A GLANCE | PAGE 5
MAIN ACTIVITIES
Tankers
Chemical tankers
Ultratank operates a modern fleet of stainless-steel
tankers of about 20,000 dwt, coming to a fleet of 20
units in 2024. These vessels are employed in various
trades between North-, Central- and South America
carrying a vast range of products including organic
chemicals such as methanol and ethanol, as well as
inorganic chemicals such as sulphuric acid and
caustic soda, and other liquid cargoes in bulk such
as vegetable and animal oils.
Product tankers
Austral Product Tankers operates a fleet of 8 to 10
Medium Range Product Tankers and is a member of
Clean Products Tankers Alliance (CPTA) which
operates a total fleet of about 20 to 25 MR tankers.
Trading patterns and commercial footprint have a
clear focus on the Americas with a concentrated
client base and a high commitment to provide a
tailored and customised service.
Crude oil tankers
Southern Cross CT manages a modern fleet of
approximately 10 to 15 tankers in the Panamax and
Aframax segments. Our global trading operations
primarily focus on transporting crude oil and dirty
petroleum products within the Americas. The
commercial management of the fleet is done by the
joint venture Panamax International and Aframax
International.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 ULTRANAV INTERNATIONAL AT A GLANCE | PAGE 6
MAIN ACTIVITIES
Dry bulk
Ultrabulk carries a broad range of dry cargoes, with
core products including minerals, coal, fertilizers,
grains, salt and steel. The fleet size of 165-200
vessels qualifies the company as one of the world’s
leading dry bulk operators within the Handysize,
Supramax and Panamax segments. The trading
platform supports customer’s local and worldwide
requirements.
Ultrabulk operates in a very competitive and
volatile market, and it is therefore important that
Ultrabulk remain adaptable and agile to match the
needs of our business partners.
Horizon Shipping is a specialised operator for
exports from the West Coast of South America
transporting around 6 million metric tons of cargo
per year – with a particular focus on the west coast
of South America.
The company has historically provided maritime
solutions to companies, supporting their
development by growing together and building
long-term relationships.
Gas carriers
Since our foundation, Ultranav has been involved
in the transport of liquefied petroleum gases (LPG)
by sea via our business unit Ultragas. In 2021,
Ultragas and Navigator Gas merged their fleets and
businesses, becoming a global leader in the
handysize liquified gas carrier segment of seaborne
transportation services of petrochemical gases,
such as ethylene and ethane, liquefied petroleum
gas and ammonia. The fleet of Navigator Gast
consists of 59 semi or fully refrigerated liquefied
gas carriers.
Navigator also owns a 50% share, through a joint
venture, in an ethylene export marine terminal at
Morgan’s Point, Texas.
Ultranav holds 31% of the shares in Navigator Gas.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 ULTRANAV INTERNATIONAL AT A GLANCE | PAGE 7
MAIN ACTIVITIES
Coastal Trades
Antares Naviera operates a modern fleet of double
hull crude oil and clean product tankers in
Argentina, providing a flexible and reliable service
to the local oil companies, most of them
multinationals.
Antares Naviera operates a fleet of 10 tankers
sailing under the Argentine flag, with a total
capacity of 428,000 dwt.
Towage & offshore
Ultratug is a leading operator in the harbour
towage, salvage, and offshore industry in the main
countries of South America and Mexico.
With a modern and versatile fleet, we provide
berthing and unberthing assistance at over 40 ports
and maritime terminals.
Ultratug service extends to all types of vessels
requiring assistance: containerships, tankers,
bulkers, LNG, cruise ships, RoRo’s, and others.
See further details in note 3.5.
Green Ammonia and Terminal Project
As part of Ultranav, Otway Green Energy (OGE) and
Otway Terminal & Logistics (OTL) are developing a
port facility and green energy projects aligned with
the IMO’s net-zero emission goals.
In parallel, OGE is advancing an off-grid, wind-
powered green ammonia facility on Isla Riesco in
Chile’s Magellan Region, using 100% renewable
energy. Feasibility studies are underway to prepare
the project for the ready-to-build phase and meet
all technical and regulatory requirements.
See further details in note 3.5.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 ULTRANAV INTERNATIONAL AT A GLANCE | PAGE 8
MAIN ACTIVITIES
Other investments
Via Ultra Ventures we invest in industry-relevant
businesses and start-ups that we believe can
contribute positively to the maritime industry and
that develop products or technologies to support
one or more of our three focus areas:
Crew welfare, Safety, Environment & Climate.
We strive to find and support innovators in their
business journey towards our common goals in the
maritime industry: To make the industry better,
smarter, more sustainable and safer.
The investments are not just to the benefit of the
start-ups – the collaboration also serves as a great
inspiration to Ultranav as these businesses and
start-ups demonstrate other solutions, ways of
doing business and new trends.
Ultra Invest focuses primarily on traditional
tradeable investments, such as shares, bonds,
sale/lease back deals, etc. This also presents an
opportunity for the existing Ultranav businesses to
invest in fleet renewal projects.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 ULTRANAV INTERNATIONAL AT A GLANCE | PAGE 9
A LARGE AND DIVERSIFIED SHIPPING GROUP
Ultranav International ApS Group is part of the
Ultranav Group (Chile), a privately owned group of
shipping company active for over six decades and
operating globally with offices in 19 countries.
Through twelve business units, the Ultranav Group
operates in five market segments: tankers, gas, dry
bulk, coastal trades, and towage & offshore.
Ultranav operates a fleet of gas and chemical
carriers, tankers for crude oil and clean petroleum
products, bulk carriers, feeder container ships,
multipurpose vessels, harbour tugs, PSVs, AHTS
vessels, pusher tugs, barges and pilot boats.
As of 31 December 2024, the Ultranav Group
operates a fleet of 421 ocean going vessels and
tugs.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 FINANCIAL REVIEW | PAGE 10
FINANCIAL REVIEW
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 FINANCIAL REVIEW | PAGE 11
GROUP KEY FIGURES AND RATIOS
INCOME STATEMENT (USD '000)
2024
2023
[A]
2022
[A]
2021
[B]
2020
Revenue
2,853,446
2,440,121
3,116,315
2,445,766
696,536
Gross profit (Net earnings from shipping activities)
552,233
508,695
552,989
335,258
148,317
Operating profit before depreciation, amortization and impairment loss (EBITDA)
451,509
434,686
478,273
274,529
127,156
Operating profit (EBIT)
198,621
293,579
302,261
75,938
66,692
Net financials
4,918
16,925
-12,808
-29,319
-4,070
Profit before tax
248,624
366,600
309,873
43,110
62,622
Net result of continuing operations
225,091
347,685
304,002
40,831
62,622
Net result of discontinuing operations
-
-
-
-10,792
2,877
Net result
225,091
347,685
304,002
30,039
65,499
STATEMENT OF FINANCIAL POSITION (USD '000)
Non-current assets
1,514,031
913,108
947,770
984,552
656,446
Current assets
1,074,917
1,367,652
1,005,072
595,304
292,359
Total assets
2,588,948
2,280,760
1,952,842
1,579,856
948,805
Equity, incl. non-controlling interests
1,627,057
1,394,191
1,054,253
769,674
555,881
Non-controlling interests
73,507
17,444
20,174
13,672
9,158
Non-current liabilities
300,820
402,333
404,460
355,092
230,029
Current liabilities
661,071
484,236
494,130
455,090
162,895
Net interest-bearing (liabilities)/assets, including leases
42,029
354,287
91,300
-179,408
-97,131
Net interest-bearing (liabilities)/assets, excluding leases
-521,915
682,423
402,539
130,713
-32,925
Cash and cash equivalents, including restricted cash
350,718
548,200
410,313
169,289
163,012
CASH FLOW (USD '000)
From operating activities
374,282
408,911
462,372
263,860
201,014
From investing activities
-216,401
-41,635
-100,502
-246,578
43,251
- of which relates to investment in tangible assets
-134,937
-153,784
-109,436
-90,558
25,199
From financing activities
-368,897
-221,206
-136,555
-99,523
-148,679
Total net cash flow
-211,016
146,070
225,315
-82,241
95,586
Change in restricted cash
-13,234
3,669
-11,145
-5,663
6,951
Total net cash flow, excluding changes in restricted cash
-197,782
142,401
236,460
-76,578
88,635
FINANCIAL RATIOS
Gross profit margin (Net earnings from shipping activities margin)
19.4%
20.8%
17.7%
13.7 %
21.3 %
EBITDA margin
15.8%
17.8%
15.3%
11.2 %
18.3 %
Return on equity (ROE)
[C]
13.8%
24.9%
28.8%
3.9 %
11.8 %
Equity ratio
[C]
62.8%
61.1%
54.0%
48.7 %
58.6 %
Gross Profit = (Gross Profit / Revenue), EBITDA margin = (EBITDA / Revenue), ROE = (Net Profit / Equity incl. non-controlling interests), Equity ratio = (Equity incl. non-controlling interests / Total Assets).
[A] Key figures and ratios for the financial years 2022 and 2021 have been adjusted to reflect the business combination of entities under common control which were completed in November 2022.
[B] Comparative key figures and ratios for 2020 were not updated to reflect the business combination of entities under common control, which were completed in November 2022
[C] The Return on equity and equity ratio for 2021 are based upon the equity at the end of 2021 as comparatives for the preceding year are not restated.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 FINANCIAL REVIEW | PAGE 12
2024 FINANCIAL PERFORMANCE
Results
Revenues amounted to USD 2,853 million, a 16.9%
increase from last year’s revenue. The increase in
revenues was linked to an improvement in the
market conditions in the dry bulk segment, while
the tanker segment remained strong, as well as the
business combinations made during the year.
Gross profit increased to USD 552 million
corresponding to a gross margin of 19.4% (20.8%).
EBITDA increased to USD 452 million (USD 435
million), corresponding to an EBITDA margin of
15.8% (17.8%).
Depreciations amounted to USD -276 million (USD
-200 million), mainly related to depreciation on
right-of-use assets and own vessels. Gain from sale
of vessels amounted to USD 23 million (USD 59
million).
Financial items amounted to a net income of
USD 5 million (USD 17 million). Most financial items
relate to interest income and interest expenses on
lease liabilities and bank loans.
Income tax amounted to USD -24 million (USD -19
million).
Net result amounted to a profit of USD 225 million
(USD 348 million), which is above last year’s
expectations of USD 125 – 175 million. The increase
is related to good performances across all segments
due to improved market conditions.
Balance Sheet
Total assets increased to USD 2,588 million
(USD 2,281 million). The increase in total assets
relate primarily the completed business
combinations during the year.
Total liabilities increased to USD 962 million
(USD 886 million). The majority of liabilities
comprise of lease liabilities which amounted to USD
270 million at the end of 2024 (USD 328 million), as
well as interest bearing loans of USD 252 million at
the end of 2024 (USD 289 million).
Total equity increased to USD 1,627 million
(USD 1,394 million), driven by profit for the year of
USD 225 million.
Return on equity was 13.8% (24.9%) and equity
ratio was 62.8% at the end of 2024 (61.0%).
Cash flow
The cash flow for the year, excluding restricted cash,
netted at an outflow of USD -198 million (USD 142
million).
Cash flow from operating activities was an inflow of
USD 374 million (USD 409 million), driven by cash
flows generated from the shipping activities, while
cash flow from investing activities was an outflow of
USD -216 million (USD 42 million).
Cash flow from financing activities was an outflow
of USD -369 million (USD -221 million) and is mainly
related to repayment of lease liabilities.
Outlook 2025
Based on the Group’s current position, and the
expected market conditions, the Group expects net
result of the Group and the parent company in the
range of USD 125-175 million.
Financial risk management
A description of the financial risks, to which the
Group is exposed through its shipping activities, is
included in note 5.5 to the Consolidated Financial
Statements.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 OUR BUSINESS | PAGE 13
OUR BUSINESS
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 OUR BUSINESS | PAGE 14
SUSTAINABILITY
Ultranav is dedicated to showing environ-
mental leadership and exceed the mandatory
targets set by IMO. Every ton counts.
We will employ innovative technologies, invest in
sustainable practices, and collaborate with industry
partners and stakeholders to surpass the emission
reduction targets set by the International Maritime
Organization (IMO). This commitment aligns with
our dedication to environmental stewardship, and
we will transparently communicate our progress,
engage our employees in the journey, and adapt our
strategies to the evolving landscape.
Climate targets
Ultranav has identified the following climate
targets:
• By 2030, Ultranav is committed to reducing the
carbon intensity of the fleet by 50% compared
to 2008.
• By 2045, Ultranav aims to have a zero-emission
fleet in domestic commercial operations.
• By 2050, Ultranav is committed to have a zero-
emission fleet in international commercial
operations and to be climate neutral.
With the changes of the regulatory landscape, and
the latest update of the GHG strategy, it was
decided to update the pillars of our strategy and
adapt to the new landscape. The following pillars
were (re-)established: Energy on board; Industry
collaboration; Culture; Transparent reporting;
Regulations; and Pathway to zero.
More information
Statement on corporate responsibility, cf Danish
Financial statements Act, § 99a
Find more information about Ultranav International
ApS’ activities within climate & environment,
people and anti-corruption in our sustainability
report. The report is available on the following URL:
ultranav.dk/sustainability >>
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 OUR BUSINESS | PAGE 15
CORPORATE GOVERNANCE
Corporate governance principles
The Board of Directors and Executive Management
of Ultranav International ApS are convinced that
efficient and clear division of responsibilities as well
as transparent decision-making processes are
prerequisites of a Group’s long-term value creation.
Ultranav International ApS therefore reviews at
least annually the Group’s corporate governance
practices and principles in accordance with
legislation, customs and recommendations. As part
of this process, the Board and Executive
Management review the Group’s strategy,
organisation, business processes, risks, control
mechanisms and relations with its shareholders,
customers, employees and other stakeholders.
Data ethics
In Ultranav, we use and process data with the
overall purpose of creating value for our customers,
partners, employees and society.
Ultranav only does business with B2B customers
and therefore, to a limited extend, collects and
processes sensitive data. Ultranav also uses data to
innovate our business and to optimise the vessels’
performance to secure a lower impact on the
environment. All the information we receive related
to customers, partners and employees is treated in
a safe manner ensuring transparency, responsibility
and security.
Whistleblower platform
The Ultranav General Business Principles are the
commitment that we have undertaken with our
stakeholders about how to conduct business at all
times, based on our values and corporate culture.
The Code of Conduct of Ultranav, establishes the
internal conduct guidelines, which drive and guide
the behaviour expected of all employees in the
performance of their daily work and activities, and
in the relationships and engagement with
stakeholders.
Our stakeholders, be they employees, customers,
suppliers, the community or the competition, are
encouraged to report any infringements to the
Principles or breach of a Code of Conduct’s rule in
the activities undertaken by our organisation
through the Whistleblowing Channel that is on the
websites of Ultranav.
Ultranav’s Compliance Committee will critically
assess all the reports received according to its
whistleblowing procedures.
Ultranav commits to safeguarding the
confidentiality of the information that is reported as
such and to protect from reprisals the people who
blow the whistle on any infringement of this Code.
Our whistleblowing site is operated in partnership
with an independent third-party contractor that
guarantees the privacy or the anonymity of your
report and any information transmitted through
their website.
Remuneration of management
Board of Directors
The Board of Directors has refrained from receiving
any compensation for their work in 2024,
unchanged from 2023. In 2025, likewise, the
members of the Board of Directors intend to refrain
from receiving any compensation for their work. If
the Group’s activities require a temporary, but
extraordinary workload by the Board, a fee may be
authorised. Likewise, the members of the Board
receive no incentive pay for their work on the
Board.
Executive Management
Executive Management comprises of three
members who are employed on contractual terms
fixed by the Board of Directors.
Members of Executive Management receive a
competitive remuneration package consisting of a
fixed salary, benefits such as company phone, and
an incentive payment in terms of cash bonus.
Performance criteria for the cash bonus is tied to
earnings and business targets.
ULTRABULK ANNUAL REPORT 2021 ACCOUNTS AND PERFORMANCE | PAGE 16
SIGNATURES
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 SIGNATURES | PAGE 17
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 SIGNATURES | PAGE 18
INDEPENDENT AUDITOR’S REPORT
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 SIGNATURES | PAGE 19
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 SIGNATURES | PAGE 20
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
CVR no. 33 77 12 31
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 SIGNATURES | PAGE 21
CONSOLIDATED FINANCIAL STATEMENTS
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 22
CONSOLIDATED INCOME STATEMENT
PROFIT OR LOSS
1 JANUARY – 31 DECEMBER
USD thousands
Note
2024
2023
Revenue
2.1
Vessel operating costs and voyage related expenses
2.2
-2,301,213
-1,931,426
Gross profit (Net earnings from shipping activities)
Other external expenses
6.2
-41,408
-44,442
Staff costs
2.3, 6.1
-59,316
-30,362
Operating profit before depreciation (EBITDA)
Depreciations and amortisations
3.3
-276,091
-199,751
Gain/(loss) from sale of vessels, net
Operating profit (EBIT)
Share of profit from investments accounted for using
equity method
3.4
Gain from disposal of associates
3.5
Financial income
5.1
Financial expenses
5.1
-40,376
-34,777
Profit/loss before tax
Tax
2.4
-23,533
-18,915
Profit/loss for the period
Attributable to
Equity holders of the parent
Non-controlling interests
Profit/loss for the period
STATEMENT OF OTHER COMPREHENSIVE INCOME
1 JANUARY – 31 DECEMBER
USD thousands
Note
2024
2023
Profit/loss for the period
Items that will be reclassified subsequently to the Consolidated Profit or Loss when specific
conditions are met:
Cash flow hedges, gain/loss for the year (net)
5.7
-25,441
Securities
-526
Exchange rate adjustment arising from translation of
entities using a functional currency different from USD
-1,397
Effects from business combinations
-9,674
Other comprehensive income, net of tax
-37,038
Total comprehensive income
Attributable to:
Equity holders of the parent
Non-controlling interests
Total comprehensive income
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 23
CONSOLIDATED BALANCE SHEET
ASSETS
USD thousands
Note
2024
2023
Goodwill, Customers Relations & Contractual Rights
3.1
Vessels & right-of-use assets
3.2
Fixtures, fittings, and equipment
3.2
Intangible & tangible assets
Investments accounted for using equity method
3.4
Loans to related companies
4.1
Trade receivables from related companies
4.1
Derivative financial instruments
5.7
Deferred tax assets
2.4
Deposits
Other receivables
4.1
Other financial assets
5.2
Financial assets, non-current
Total non-current assets
Inventories
4.2
Trade and other receivables
4.1
Trade receivables from related companies
4.1
Loans to related companies
4.1
Prepayments
4.1
Derivative financial instruments
5.7
Other financial assets
5.2
Cash and cash equivalents, incl. restricted cash
4.3
Current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
USD thousands
Note
2024
2023
Share capital
6.8
Retained earnings
Other reserves
-18,453
Total equity of majority interests
Non-controlling interest
Total Equity
Interest bearing loans and borrowings
5.3
Lease liabilities
5.4
Derivative financial instruments
5.7
Deferred tax
2.4
Other payables
Total non-current liabilities
Trade and other payables
4.4
Payables to related companies
4.4
Interest bearing loans and borrowings
5.3
Lease liabilities
5.4
Derivative financial instruments
5.7
Income tax payable
Total current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 24
CONSOLIDATED STATEMENT OF CASH FLOWS
Amount in USD thousands
Note
2024
2023
Profit/(loss) before tax
Tax paid
-24,438
-16,760
Adjustment of other non-cash operating items
6.4
Change in working capital
6.5
-88,881
-39,364
Net cash flows from operating activities
Dividends received
Investments in tangible assets
-134,937
-153,784
Sale of tangible assets
Investment in associates
-37,437
-6,829
Loans to related companies, net
-57,214
Interest on loans to related parties
Effect from business combinations
-79,907
-18,997
Investment in securities
-84,674
-82,612
Change in restricted cash
4.3
-13,234
Other financial items
-13,470
Net cash flow from investing activities
-216,401
-41,635
Free cash flow
Dividends paid to equity minority holders
-7,500
-11,137
Raising of loans from financial institutions
6.6
Repayment of loans to financial institutions
6.6
-110,312
-12,239
Interest payments on loans to financial institutions
-27,973
-18,896
Repayment of loans from related parties
-10,229
Interest payments on loans from related parties
-430
Repayment of lease liabilities
6.6
-214,461
-169,819
Interest payments on lease liabilities
-15,501
-13,071
Net cash flows from financing activities
-368,897
-221,206
Net change in cash and cash equivalents
-211,016
146,070
Amount in USD thousands
Note
2024
2023
Cash and cash equivalents at 1 January
Net change in cash and cash equivalents
-211,016
Revaluation of cash deposits in foreign currencies
-4,514
Cash and cash equivalents at 31 December
Restricted cash
4.3
Cash and cash equivalents
Cash and cash equivalents, including restricted cash at 31 December
548,200
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 25
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
USD thousands
Share
capital
Cash flow
hedge
reserve
Translation
reserves
Reserve for
security
investments
Retained
earnings
Total
Non-controlling
interests
Total
equity
Equity as 1 January 2024
Net result
Cash flow hedges
-25,741
-25,741
-25,741
Revaluation of cash deposit in foreign currencies
Exchange adjustments on net investments
-1,397
-1,397
-1,397
Effects from business combinations
-9,674
-9,674
-9,674
Other
-526
-526
-526
Other comprehensive income for the year
-25,441
-1,397
-526
-9,674
-37,038
-37,038
Total comprehensive income for the year
-25,441
-1,397
-526
Distributed dividend
-7,500
-7,500
Other transactions with shareholders
-
Transactions with shareholders
Equity as 31 December 2024
-17,793
-1,397
Equity as 1 January 2023
Net result
Cash flow hedges
-365
Revaluation of cash deposit in foreign currencies
-4,428
-4,428
-4,428
Other changes
Other comprehensive income for the year
-365
Total comprehensive income for the year
Distributed dividend
-11,137
-11,137
Other transactions with shareholders
-550
-470
Transactions with shareholders
-11,687
-11,607
Equity as 31 December 2023
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 26
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SECTION 1: BASIS OF PREPARATION ................................................................ 27
1.1 Basis of reporting ..................................................................................................... 28
1.2 Significant accounting judgments and estimates ..................................................... 31
SECTION 2: PROFIT OR LOSS ............................................................................ 32
2.1 Revenues .................................................................................................................. 33
2.2 Vessel operating costs and voyage related expenses .............................................. 34
2.3 Staff costs ................................................................................................................. 34
2.4 Tax ............................................................................................................................ 35
SECTION 3: INVESTED CAPITAL ......................................................................... 37
3.1 Intangible assets ...................................................................................................... 38
3.2 Tangible assets & right-of-use assets ....................................................................... 39
3.3 Depreciations and amortisations ............................................................................. 44
3.4 Investments accounted for using the equity method .............................................. 45
3.4 Investments accounted for using the equity method (Continued) .......................... 46
3.5 Business Combination .............................................................................................. 47
SECTION 4: WORKING CAPITAL ........................................................................ 49
4.1 Receivables and prepayments ................................................................................. 50
4.2 Inventories ............................................................................................................... 51
4.3 Restricted cash ......................................................................................................... 51
4.4 Trade and other payables ........................................................................................ 52
SECTION 5: CAPITAL STRUCTURE ...................................................................... 53
5.1 Financial items.......................................................................................................... 54
5.2 Other Financial Assets .............................................................................................. 54
5.3 Interest bearing loans and borrowings .................................................................... 55
5.4 Lease liabilities ......................................................................................................... 56
5.5 Risks arising from financial instruments ................................................................... 58
5.6 Financial instruments by category ........................................................................... 59
5.7 Derivative financial instruments .............................................................................. 61
SECTION 6: OTHER DISCLOSURES ..................................................................... 66
6.1 Remuneration of management ................................................................................ 67
6.2 Fee to the statutory auditors ................................................................................... 68
6.3 Contingent liabilities & Commitments ..................................................................... 69
6.4 Other non-operating cash items (cash-flow) ............................................................ 70
6.5 Change in working capital (cash-flow) ..................................................................... 70
6.6 Changes in liabilities (cash flow) ............................................................................... 71
6.7 Related party disclosures ......................................................................................... 72
6.8 Share capital ............................................................................................................. 72
6.9 Events after the balance sheet date ......................................................................... 72
6.10 Group structure ..................................................................................................... 73
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 27
SECTION 1: BASIS OF PREPARATION
1.1 Basis of reporting
1.2 Significant accounting judgements and estimates
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 28
1.1 BASIS OF REPORTING
§ GENERAL ACCOUNTING POLICIES
Ultranav International ApS is a company domiciled in Denmark.
The Consolidated Financial Statements of Ultranav International ApS for 2024 have been
prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
Measurement basis
The Consolidated Financial Statements have been prepared on the historical cost basis
except certain financial assets and liabilities. These financial assets and liabilities have been
measured at fair value.
The Consolidated Financial Statements have been presented in USD thousands except when
otherwise indicated. The DKK/USD rate applied at 31 December 2024 was 714.29 (2023:
674.47) and the average DKK/USD applied for the year was 689.06 (2023: 689.28).
Apart from the general accounting policies, which are summarised in this note, the Group’s
accounting policies are described in each of the individual notes to the Consolidated Financial
Statements to which they relate.
The accounting policies, as described below and in the respective notes, have been used
consistently in respect of the financial year and the comparative figures.
New and amended accounting standards which are not yet effective
The new and amended standards and interpretations that are issued, but not yet effective,
up to the date of issuance of the consolidated financial statements are either insiginificant
or irrelevant to the Group except of IFRS 18 which will impact presentation and disclosure in
the financial statements and will be effective from 2027. Ultranav is currently working to
identify all impacts from the new standard on the financial statements.
Basis of consolidation
The Consolidated Financial Statements comprise the Parent Company Ultranav International
ApS and subsidiaries in which Ultranav International ApS has control (the Group), i.e. the
power to govern the financial and operating policies so as to obtain benefits from its
activities. Control is obtained when the Company directly or indirectly holds more than 50%
of the voting rights in the subsidiary or which it, in some other way, controls.
Enterprises over which the Group exercises significant influence, but which it does not
control, are considered associates. Significant influence is generally obtained by direct or
indirect ownership or control of more than 20% of the voting rights but less than 50%.
When assessing whether Ultranav International ApS exercises control or significant influence,
potential voting rights which are exercisable at the balance sheet date are taken into account.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 29
1.1 BASIS OF REPORTING (CONTINUED)
§ GENERAL ACCOUNTING POLICIES
Basis of consolidation (continued)
The Consolidated Financial Statements has been prepared as a consolidation of the Parent
Company's and the individual subsidiaries' financial statements prepared according to the
Group accounting policies.
On consolidation, intra-group income and expenses, shareholdings, intra-group balances and
dividends, and realised and unrealised gains on intra-group transactions are eliminated.
Unrealised gains on transactions with associates are eliminated in proportion to the Group's
ownership share of the enterprise. Unrealised losses are eliminated in the same way as
unrealised gains to the extent that impairment has not taken place.
The accounting items of subsidiaries are included in full in The Consolidated Financial
Statements.
Non-controlling interests
Non-controlling interests represent the portion of profit or loss and net assets not held by
Ultranav International ApS and are presented separately in the income statement and within
equity in the consolidated balance sheet, separately from the parent shareholders’ equity.
Initially the non-controlling interest is recognised based on their share of the fair value of the
assets and liabilities acquired.
Foreign currency translation
For each of the reporting entities in the Group, a functional currency is determined. The
functional currency is the currency used in the primary financial environment in which the
reporting entity operates. Transactions denominated in other currencies than the functional
currency are foreign currency transactions.
On initial recognition, foreign currency transactions are translated to the functional currency
at the exchange rates at the transaction date. Foreign exchange differences arising between
the transaction date and at the date of payment are recognised in the income statement as
financial income or financial expenses.
Receivables and payables and other monetary items denominated in foreign currencies are
translated to the functional currency at the exchange rates at the balance sheet date.
The difference between the exchange rates at the balance sheet date and at the date at
which the receivable or payable arose or was recognised in the latest annual report is
recognised in the income statement as financial income or financial expenses.
In The Consolidated Financial Statements, the income statements of entities with another
functional currency than USD are translated at the exchange rates at the transaction date
and the balance sheet items are translated at the exchange rates at the balance sheet date.
An average exchange rate for each month is used as the transaction date exchange rate to
the extent that this does not significantly distort the presentation of the underlying
transactions.
Foreign exchange differences arising on translation of the opening balance of equity of such
foreign operations at the exchange rates at the balance sheet date and on translation of the
income statements from the exchange rates at the transaction date to the exchange rates at
the balance sheet date are recognised in other comprehensive income and presented in
equity under a separate translation reserve.
Applying materiality
The financial statements are a result of processing large numbers of transactions and
aggregating those transactions into classes according to their nature or function. When
aggregated, the transactions are presented in classes of similar items in the financial
statements. If a line item is not individually material, it is aggregated with other items of a
similar nature in the financial statements or in the notes.
There are substantial disclosure requirements throughout IFRS. Management provides
specific disclosures required by IFRS unless the information is considered immaterial to the
economic decision-making of the users of these financial statements or not applicable.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 30
1.1 BASIS OF REPORTING (CONTINUED)
§ GENERAL ACCOUNTING POLICIES
Statement of Cash Flows
The Statement of Cash Flows shows the cash flows from operating, investing and financing
activities for the year, the year's changes in cash and cash equivalents as well as cash and
cash equivalents at the beginning and end of the year.
Cash flows from operating activities are calculated according to the indirect method as the
profit/loss before tax adjusted for non-cash operating items, changes in working capital,
interest payments, dividends and income taxes paid.
Cash flows from investing activities comprise payments in connection with acquisitions and
disposals of businesses and of intangible assets, property, plant, and equipment and other
non-current assets as well as acquisition and disposal of securities not classified as cash and
cash equivalents, along with movements in restricted cash.
Cash flows from financing activities comprise changes in the share capital and related costs
as well as the raising of loans, repayment of interest-bearing debt and leases, interest
payments, acquisition and disposal of treasury shares and payment of dividends to
shareholders.
Cash and cash equivalents comprise cash and short-term marketable securities with a term
of three months or less at the acquisition date which are subject to an insignificant risk of
changes in value.
Cash flows in other currencies than the functional currency are translated using average
exchange rates unless these deviate significantly from the rate at the transaction date.
Statement of changes in equity
Dividends are recognised as a liability at the date when they are adopted at the annual
general meeting (declaration date). The proposed dividend payment for the year is disclosed
as a separate item under equity. Interim dividends are recognised as a liability at the date
when the decision to pay interim dividends is made.
The translation reserve comprises foreign exchange differences arising on translation of
financial statements of entities that have a functional currency different from USD. On full or
partial realisation of the net investment, the foreign exchange adjustments are recognised in
the income statement.
The hedging reserve comprises the cumulative net change in the fair value of hedging
transactions, and net of tax, that qualify for recognition as a cash flow hedge and where the
hedged transaction has not been realised.
Financial ratios
Financial ratios are calculated in accordance with the Recommendations and Ratios issued
by The Danish Finance Society, unless specifically stated.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 31
1.2 SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
§ ACCOUNTING POLICIES
The preparation of the Group's Consolidated Financial Statements requires management to
make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets, and liabilities and the disclosure of contingent liabilities, at the
end of the reporting period. However, uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amounts of
asset and liability affected in future periods.
Significant judgements
In the process of applying the accounting policies, management has made the following
judgements which are considered to be significant to the Consolidated Financial
Statements:
Determination of cash-generating units of owned and leased vessels (note 3.2)
Significant estimates
Management has made the following estimates which are considered to be significant to
the Consolidated Financial Statements:
Assessing indicators of impairment of owned and leased vessels (note 3.2)
Measurement of non-lease components (note 5.4)
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 32
SECTION 2: PROFIT OR LOSS
2.1 Revenues
2.2 Vessel operating costs and voyage related expenses
2.3 Staff costs
2.4 Tax
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 33
2.1 REVENUES
§ ACCOUNTING POLICIES
Revenue
Revenues from freight and time-charters are recognised as the services are rendered based
the percentage of completion method. According to the method, revenues are recognised
over the period from the vessel’s load date to the delivery of the cargo (Load to Discharge).
Demurrage is included if a claim is considered probable. Losses arising from time or voyage
charter are provided for in full when they become probable.
Realised gains and losses on derivatives, which are accounted for as hedges of revenue
transactions, are recognised in revenues.
Disaggregation of revenue
As the Company is neither listed at any stock market, nor have debt or equity instruments
are traded in a public market, it has been decided not to apply IFRS 8 Operating Segments,
and not disclose any segment information.
USD thousands
2024
2023
Income from Freight
1,966,704
1,917,105
Income from Time-Charter & Towage Services
812,871
523,016
Other
73,871
-
Revenue by type of contract
2,853,446
2,440,121
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 34
2.2 VESSEL OPERATING COSTS AND VOYAGE
RELATED EXPENSES
§ ACCOUNTING POLICIES
Voyage expenses, time-charter hire and operating expenses are recognised as the services
are rendered based on the percentage of completion method. According to the method all
spot voyages and voyages servicing Contract of Affreightment (CoA) related expenses are
recognised over the period from the vessel’s load date to the delivery of the cargo (Load to
Discharge).
Expenses directly attributable to positioning the vessel to the loading port are capitalised
and expensed over the period from the vessel’s load date to the delivery of the cargo (Load
to Discharge).
Vessel operating costs and voyage related expenses comprise mainly of time charter hire,
bunker and port expenses, including realised gains or losses on bunker and FFA hedges,
which are accounted for as hedges of voyage related expenses and time charter hire.
Non-lease components of lease arrangements are described further in note 5.4 Lease
liabilities.
USD thousands
2024
2023
Bunkers
-505,318
-494,839
Other voyage related expenses
-520,197
-465,338
Voyage related expenses
-1,025,515
-960,177
Time-Charter hire, short-term leases
-955,461
-807,987
Operating expenses, long-term leases (non-lease component)
-151,561
-120,360
Operating expenses, own vessels
-168,676
-42,902
Time-Charter hire and operating expenses
-1,275,698
-971,249
Vessel operating costs and voyage related expenses
-2,301,213
-1,931,426
2.3 STAFF COSTS
§ ACCOUNTING POLICIES
Staff costs comprise wages and salaries, including incentives, to onshore employees.
USD thousands
2024
2023
Wages and salaries
-57,095
-28,527
Pensions – defined contribution plans
-1,332
-1,216
Other staff costs
-889
-619
Staff costs
-59,316
-30,362
Average number of employees
“Staff costs” recognized in the profit and loss comprise the cost to the onshore employees.
Staff cost to crew onboard vessels, counting 943 employees (132 employees in 2023), are
recognised as “Vessel operating costs and voyage related expenses”.
Remuneration of certain employees, who are remunerated by related companies, are
expensed as management fee, and consequently recognised as “Other external expenses”.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 35
2.4 TAX
§ ACCOUNTING POLICIES
Taxes
Ultranav International ApS is jointly taxed with other Danish companies in the Group, with
Ultranav International ApS (Parent Company) being the administration company for the
jointly taxed companies. The Danish corporation tax is allocated between the jointly taxed
companies in proportion to their taxable income. In relation to the shipping activities, the
companies participates in the Danish Tonnage Tax Scheme.
Companies that use tax losses in other companies pay the joint tax contribution to the
Parent Company at an amount corresponding to the tax value of the tax losses used.
Companies, whose tax losses are used by other companies, receive joint tax contributions
from the Parent Company corresponding to the tax value of the losses used (full
absorption). The jointly taxed companies are taxed under the tax prepayment scheme.
Tax for the year comprises current tax and changes in deferred tax for the year. The tax
expense relating to the profit/loss for the year is recognised in the income statement. Tax
attributable to entries directly under comprehensive income is recognised directly in other
comprehensive income.
USD thousands
2024
2023
Current tax on profit for the year
-24,627
-19,120
Deferred tax for the year
501
61
Tax on profit for the year
-24,126
-19,059
Adjustments related to previous years – current tax
593
144
Tax in the income statement
-23,533
18,915
Computation of effective tax rate (%):
Statutory corporate income tax in Denmark
22 %
22 %
Deviation in foreign subsidiaries’ tax rates compared to the
Danish tax rate, net
-11.2 %
-15.4 %
Effects from non-deductible expenses
-1.1 %
-
Effects from Tonnage Tax Scheme
-0.2 %
-2.2 %
Effective tax rate
9.5 %
4.4 %
Deferred tax at 31 December 2024
The deferred tax payable relates to temporary differences and amounted to USD 10.9
million at the reporting date (2023: USD 2.6 million).
Net deferred tax receivable relates to carryforward of unused tax credits.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 36
2.4 TAX (CONTINUED)
Tonnage taxation scheme and deferred tax
All significant Danish entities within the Group entered into the Danish tonnage taxation
scheme for a binding 10 year period with effect from 2017. Under the Danish tonnage
taxation scheme, taxable income is not calculated on the basis of income and expenses as
under the normal corporate taxation. Instead, taxable income is calculated with reference
to the tonnage used during the year. The taxable income for a company for a given period
is calculated as the sum of the taxable income from the activities under the tonnage
taxation scheme and the taxable income from the activities that are not covered by the
tonnage taxation scheme made up in accordance with the ordinary Danish corporate tax
system. If the participation in the Danish tonnage taxation scheme is abandoned, or if the
entities’ level of investment and activity is significant reduced, a deferred tax liability will
become payable.
For the taxable income which is made up in accordance to the ordinary corporate tax
system, a deferred tax is recognized at each period end and is accounted for using the
balance sheet liability method. Deferred tax assets, including the tax value of tax loss carry
forwards, are recognised under other non-current assets at the expected value of their
utilisation – either as a set-off against tax on future income or as a set-off against deferred
tax liabilities in the same legal tax entity and jurisdiction.
Deferred tax assets and liabilities are offset if the Company has a legally enforceable right
to set off current tax liabilities and tax assets or intends either to settle current tax liabilities
and tax assets on a net basis or to realise the assets and settle the liabilities simultaneously.
OECD Pillar Two model rules
The Group is within the scope of the OECD Pillar Two model rules. Pillar Two legislation was
enacted in Denmark, the jurisdiction in which the parent company Ultranav International
ApS is incorporated, and came into effect from 1 January 2024. The Group is liable to pay a
top-up tax for the difference between the GloBE effective tax rate per jurisdiction and the
15% minimum rate.
The Group has performed an assessment of its potential exposure to Pillar Two income
taxes based on the 2023 country-by-country reporting and 2024 financial information for
the constituent entities in the Group. The Pillar Two effective tax rates in most of the
jurisdictions in which the Group operates is below 15%.
However, the Group will not be exposed significant top-up taxes, as the main source of
income in the Group derives from international shipping, which is exempted. Therefore, any
potential top-up tax would be deemed insignificant. The Group continues to follow Pillar
Two legislative developments, as further countries enact the Pillar Two model rules, to
evaluate the potential future impact on its consolidated results of operations, financial
position and cash flows beginning.
.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 37
SECTION 3: INVESTED CAPITAL
3.1 Intangible assets
3.2 Tangible assets & right-of-use assets
3.3 Depreciations and amortisations
3.4 Investments accounted for using the equity method
3.5 Business Combination under comon control
3.6 Business Combination
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 38
3.1 INTANGIBLE ASSETS
§ ACCOUNTING POLICIES
Intangible assets are measured at cost less accumulated amortisation and impairment
losses. Amortisation and impairment losses are included in the income statement.
Goodwill, and other intangible assets with indefinite lives are not subject to amortisation.
Those assets are instead tested annually, or upon indication, for impairment. When carrying
out the impairment test, the carrying values of CGUs are compared to the value in use
(discounted value of future cash flows). If the carrying values are higher, the difference is
charged to the income statement. The value in use is calculated using a valuation model
based on discounted expected future cash flows (DCF-model), based on management’s
projections.
Amortization is provided on a straight-line basis over the expected useful lives of the
assests/ components. The expected useful lives are as follow:
• Contactual Rights: 10 years
• Customers Relations: 10 years
Amortisation methods, useful lives and residual values are reviewed at each reporting date
and adjusted if appropriate. Intangible assets with finite lives are tested for impairment
upon indication.
For further details, refer to note 3.6.
2024
USD thousands
Goodwill
Customers
Relations
Contractual
Rights
Total
Costs as of 1 January, accumulated
11,348
1,208
-
12,556
Additions through business combinations
36,998
54,896
5,536
97,430
Cost at 31 December, accumulated
48,346
56,104
5,536
109,986
Amortisations/Impairment at 1 January,
accumulated
-
-201
-
-201
Additions through business combinations
-3,319
-4,255
-7,574
Amortisation
-
-2,627
-300
-2,927
Amortisation/Impairment at 31
December, accumulated
-
-6,147
-4,555
-10,702
Carrying amount 31 December
48,346
49,957
981
99,284
2023
USD thousands
Goodwill
Customers
Relations
Contractual
Rights
Total
Costs as of 1 January, accumulated
-
-
57,453
57,453
Additions through business
combinations
11,348
1,208
-
12,556
Cost at 31 December, accumulated
11,348
1,208
57,453
70,009
Amortisations at 1 January, accumulated
-
-
-56,597
-56,597
Amortisation
-
-201
-856
-1,057
Amortisation at 31 December,
accumulated
-
-201
-57,453
-57,654
Carrying amount 31 December
11,348
1,007
-
12,355
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 39
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS
§ ACCOUNTING POLICIES
Tangible assets
Tangible assets are measured at cost less accumulated depreciation and impairment losses.
Cost comprises the purchase price and any costs directly attributable to the acquisition until
the date when the asset is available for use. Instalments and costs incurred during the
construction period on new building contracts are capitalised as they are paid. Borrowing
costs (interest) that are attributable to the construction of the vessels are capitalised and
included as part of the cost. The capitalised value is reclassified from new buildings to vessels
upon delivery from the yard.
Where individual components of an item of tangible assets have different useful lives, they
are depreciated separately. Depreciation is provided on a straight-line basis over the
expected useful lives of the assets/components. The expected useful lives are as follows:
• Vessels: 20 – 25 years
• Property, plant & equipment: 2 – 10 years
Dry docking costs are recognised in the carrying amount of vessels when incurred and
depreciated over the period until the next dry docking.
Depreciation is calculated on the basis of the residual value and impairment losses, if any.
The useful life and residual value are determined at the acquisition date and reassessed
annually. If the residual value exceeds the carrying amount, depreciation is discontinued, The
residual value of the vessels is estimated as the lightweight tonnage of each vessel multiplied
by scrap value per ton.
When changing the depreciation period or the residual value, the effect on the depreciation
is recognised prospectively as a change in accounting estimates.
The carrying values of vessels and new buildings are reviewed for impairments when events
or changes in circumstances indicate that the carrying value may not be recoverable.
Valuations are performed frequently to ensure that the fair value of the asset does not differ
materially from its carrying amount.
Right-of-use assets
Right-of-use assets primarily consist of leased vessels.
Ultranav International ApS recognises right-of-use assets at the commencement date of the
lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognised, and lease
payments made before the commencement date.
Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of
the lease term, the recognised right-of-use assets are depreciated on a straight-line basis
over the shorter of its estimated useful life and the lease term.
Right-of-use assets are subject to testing for impairment if there is an indicator of
impairment, as for owned assets.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 40
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS (CONTINUED)
§ ACCOUNTING POLICIES
Impairment of tangible assets
The carrying amount of non-current assets is reviewed annually for indicators of
impairment. When there is an indication that assets may be impaired, the recoverable
amount of the asset is determined.
The recoverable amount is the higher of an asset’s fair value less expected costs to sell and
its value in use. Value in use is the present value of the future cash flows expected to be
derived from an asset or the cash-generating unit to which the asset belongs. An
impairment loss is recognised if the carrying amount of an asset or a cash-generating unit,
respectively, exceeds the recoverable amount of the asset or the cash-generating unit.
Impairment losses are recognised in the income statement in a separate line item.
! ACCOUNTING JUDGEMENTS
DETERMINING CGU
Management’s assessment of indicators of impairment on tangible assets and right of use
assets is based on the cash-generating units in which assets are included. The identification
of such cash‑generating units involves significant judgement.
Management has concluded that the fleet of dry bulk vessels (owned and leased) comprise
one cash generating units, where the vessels are managed on a portfolio basis and
considered to be interchangeable.
Further, Management has concluded that the fleets of tankers comprise three cash
generating unit delineated individually, where the vessels are managed on portfolio basis
and considered to be interchangeable.
Likewise, Management has concluded that the fleet of tugboats comprise one cash
generating unit, where the vessels are managed on a portfolio basis and considered
interchangeable.
Lastly, Management has concluded that the properties and infrastructure related to Otway
Green Energy comprise one cash generating unit.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 41
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS (CONTINUED)
! ACCOUNTING ESTIMATES
ASSESSING INDICATIONS OF IMPAIRMENT
Management’s assessment of whether there is any indication that an asset, or a CGU, may
be impaired comprise, among other things, financial performance, broker values,
newbuilding prices, and freight and time charter rates. This assessment involves significant
judgment.
ASSESSING INDICATIONS OF IMPAIRMENT – DRY BULK
Near future climate-related risks are mainly affecting the freight rates of a vessel, as they
depend on the environmental classification and performance of the vessel. This was taken
into consideration when determining the freight and time charter rates and when
evaluating the vessels’ earning potential in our forecast. Long-term climate-related risks
have not been regarded as a significant factor in the impairment test as most operated
vessels are chartered and such risks remain with the owners of the vessels, further in reality
the solution for something else than fossil fuels for the full fleet of Bulk vessels are many
years away and Ultrabulk’s fleet age is much younger than the global fleet age.
From a historical perspective, the market in 2024 has generally remained strong, albeit with
increased volatility. There have been more rapid shifts in spot and future freight rates from
week to week and even day to day compared to what has previously been seen. However,
simultaneously, the average rates have remained profitable. This development is something
which is expected to persist moving forward.
Political factors add a general uncertainty and volatility to freight rates linked to, but not
limited to, the Ukraine/Russia war, trade tensions between the United States and China,
the ongoing war in Israel and the surrounding countries. Apart from that management are
monitoring the increased volatile weather the world is experiencing resulting in harsh
weather and draught in the Panama Canal as a few examples.
On the other hand, a low newbuilding orderbook for dry cargo carriers does indicate
generally healthy market fundamentals, which are expected to keep long- and medium-
term freight rates at a sustainable level. This is underscored by the fact that the sector had
large building years of new buildings in 2009-2016 and these vessels from 2009 are now 15
years old and will get older in the coming years. Further environmental regulations are
helping the market as vessels must sail slower to comply with the regulations, this means
that supply of tonnage is decreasing, and management expects this trend to continue.
Consequently, the expected long- and medium-term freight rates are expected to continue
to generate positive free cash flow supporting the carrying amount of the right-of-use
vessels. As such, no indications of need for impairments were identified.
ASSESSING INDICATIONS OF IMPAIRMENT – TANKER
The tanker sector’s outlook has become more uncertain following record years between
2022 and 2024. However, limited fleet growth alongside increasing demand for refined
products and exports from regions such as the U.S. could provide some support to earnings
despite ongoing uncertainties. Market adjustments will depend on consumption patterns,
inventory fluctuations, and broader macroeconomic factors, including inflation and trade
policies. The outlook for 2025 suggests an easing in the product tanker market compared
to the strength seen in 2024.
Market pressures have emerged from reduced refinery throughput due to weak refining
margins, softer oil demand trends, and crude tankers trading clean cargoes. However,
longer-haul routes—driven by Russia-related sanctions and Red Sea re-routing—are
expected to persist, potentially increasing ton-mile demand by 5%. If this trend continues
in 2025, product tanker demand is projected to grow by 2.7%, though developments in the
crude tanker sector, particularly LR2 incentives to trade dirty cargoes, could influence this
outlook.
Time charter rates continue to generate strong earnings despite recent declines. Rates are
expected to remain firm in 2025, with a gradual softening as newbuilds are introduced.
Geopolitical disruptions, including the Ukraine-Russia conflict and Red Sea tensions, will
continue to limit global fleet productivity, reducing vessel availability. Additionally, the
strong freight market is supporting increased second-hand vessel transactions, particularly
among Asian buyers. This trend is shifting ship placements to regional markets, further
constraining supply available to Western operators.
Despite these factors, medium- and long-term freight rates are still expected to generate
positive free cash flow, reinforcing vessel valuations. External conditions do not indicate
any need for adjustments beyond normal depreciation expectations.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 42
ASSESSING INDICATIONS OF IMPAIRMENT – TOWAGE
The towage sector in South America remains resilient, driven by steady port activity,
growing commodity exports, and infrastructure developments across key maritime hubs.
While market conditions vary by region, overall demand for towage services is supported
by expanding trade routes, particularly in energy, agriculture, and mining exports. However,
the sector faces challenges such as fluctuating fuel costs, regulatory changes, and labour
constraints, which may influence operational efficiency and profitability.
Fleet growth in the region remains limited, with few newbuilds entering service, keeping
supply relatively tight. This dynamic, combined with increasing vessel sizes calling at South
American ports, is expected to sustain healthy towage demand.
Geopolitical and macroeconomic factors, including inflationary pressures, currency
volatility, and shifting trade policies, add an element of uncertainty to the sector. However,
major infrastructure projects such as port expansions and offshore energy developments
are expected to provide long-term support for tugboat operations.
Looking ahead, medium- and long-term fundamentals remain strong, with positive free
cash flow generation expected to support asset valuations. Given current market
conditions, no significant impairments are anticipated beyond normal depreciation trends.
ASSESSING INDICATIONS OF IMPAIRMENT – OTWAY GREEN ENERGY
The project is currently under feasibility studies to advance it into a ready-to-build phase,
ensuring technical and regulatory requirements are met. It is expected that wind resources
measurements, engineering, Front-End Engineering Design, environmental assessment
community public relations, commercial contracts with off-takers and financial evaluation
should be ready by 2028 with construction and commissioning taking 3-4 years. The plan is
then to start operating in 2032.
Management believes the project is going as planned with the expectations of long-term
generation of positive cash flow supporting the value of the properties, plant and
equipment related to the project.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 43
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS (CONTINUED)
2024
USD thousands
Vessels
Property,
plant &
equipment
Right-of-use
assets
Total
Costs as of 1 January, accumulated
276,037
6,848
696,254
979,139
Additions
87,937
4,232
161,394
253,575
Disposals
-42,753
-4,077
-164,569
-211,387
Remeasurement
-
-
-4,560
-4,560
Additions through business
combinations
601,419
129,959
-
731,378
Cost at 31 December, accumulated
922,640
136,962
688,519
1,748,121
Depreciation and impairments at
1 January, accumulated
-101,174
-3,940
-378,323
-483,437
Depreciations
-53,287
-6,466
-213,411
-273,164
Depreciations on disposals
17,908
3,939
164,568
186,415
Depreciations through business
combinations
-350,063
-36,917
-
-386,980
Depreciation and impairment at
31 December, accumulated
-486,616
-43,384
-427,166
-957,166
Carrying amount 31 December
436,024
93,578
261,353
790,955
2023
USD thousands
Vessels
Property,
plant &
equipment
Right-of-use
assets
Total
Costs as of 1 January, accumulated
1
280,268
4,049
667,733
952,050
Additions
47,128
2,832
227,662
277,622
Disposals
-123,353
-33
-211,318
-334,704
Remeasurement
-
-
12,177
12,177
Additions through business
combinations
71,994
-
-
71,994
Cost at 31 December, accumulated
276,037
6,848
696,254
979,139
Q
Depreciation and impairments at
1 January, accumulated
1
-76,603
-2,722
-370,514
-449,839
Depreciations
-29,395
-1,245
-168,054
-198,694
Depreciations on disposals
42,590
27
160,245
202,862
Depreciations through business
combinations
-37,766
-
-
-37,766
Depreciation and impairment at
31 December, accumulated
-101,174
-3,940
-378,323
-483,437
Carrying amount 31 December
174,863
2,908
317,931
495,702
1
The Cost and Accumulated Depreciation on 1 January 2023 have been adjusted respectively and there is no impact to the carrying
amount of the PPE or profit or loss for the year
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 44
3.3 DEPRECIATIONS AND AMORTISATIONS
§ ACCOUNTING POLICIES
For accounting policies related to depreciations, reference is made to note 3.1 Intangible
assets and note 3.2 Tangible assets.
USD thousands
2024
2023
Depreciations on owned vessels
-53,287
-29,395
Depreciations on right-of-use assets
-213,411
-168,054
Depreciations on property, plant and equipment
-6,466
-1,245
Amortisations on customers relations and contractual rights
-2,927
-1,057
Depreciations and amortisations for the year
-276,091
-199,751
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 45
3.4 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
§ ACCOUNTING POLICIES
Investments in associates are recognised in The Consolidated Financial Statements
according to the equity method. Investments in associates are measured at the
proportionate share of the enterprises' net asset values calculated in accordance with the
Group's accounting policies minus or plus the proportionate share of unrealised intra-group
profits and losses and plus additional value on acquisition, including goodwill.
Investments in associates are tested for impairment when impairment indicators are
identified.
Investments in associates with negative net asset values are measured at USD 0 (nil). If the
Group has a legal or constructive obligation to cover a deficit in the associate, the remaining
amount is recognised under provisions. Amounts owed by associates are measured at
amortised cost. Write-down is made for bad debt losses.
The proportionate share of the result after tax of associates is recognized in the
consolidated income statement after elimination of the proportionate share of intra-group
profits/losses.
Undertakings which are contractually operated jointly with another counterparty (joint
ventures) and thus are jointly controlled are recognised in The Consolidated Financial
Statements according to the equity method. Investments in joint ventures are measured at
the proportionate share of the enterprises' net asset values calculated in accordance with
the Group's accounting policies minus or plus the proportionate share of unrealised intra-
group profits and losses and plus additional value on acquisition, including goodwill.
Investments in joint ventures are tested for impairment when impairment indicators are
identified.Investments in joint ventures with negative net asset values are measured at USD
0 (nil). If the Group has a legal or constructive obligation to cover a deficit in the joint
ventures, the remaining amount is recognised under provisions.
Amounts owed by joint ventures are measured at amortised cost. Write-down is made for
bad debt losses. The proportionate share of the result after tax of the joint ventures is
recognized in the consolidated income statement after elimination of the proportionate
share of intra-group profit/losses.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 46
3.4 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONT.)
2024
USD thousands
Navigator
Holdings
Ltd.
Other
investments
Total
Cost at 1 January
220,416
86,772
307,188
Additions through business combinations
-
109,668
109,668
Additions
-
37,384
37,384
Cost at 31 December
220,416
233,824
454,240
Value adjustment at 1 January, accumulated
41,043
-4,988
36,055
Share of the result for the year
34,946
10,139
45,085
Dividends
-4,240
-21,403
-25,643
Other increase/(decrease)
-6,714
-1,983
-8,697
Value adjustment at 31 December, accumulated
65,035
-18,235
46,800
Ownership interest
285,451
215,589
501,040
Goodwill
6,714
-
6,714
Carrying amount at 31 December
292,165
215,589
507,754
2023
USD thousands
Navigator
Holdings
Ltd.
Other
investments
Total
Cost at 1 January
220,416
79,949
300,365
Additions
-
6,823
6,823
Cost at 31 December
220,416
86,772
307,188
Value adjustment at 1 January, accumulated
12,235
1,177
13,412
Share of the result for the year
30,928
16,421
47,349
Dividends
-2,120
-11,474
-13,594
Other increase (decrease)
-
-11,112
-11,112
Value adjustment at 31 December, accumulated
41,043
-4,988
36,055
Carrying amount at 31 December
261,459
81,784
343,243
Navigator Holdings Ltd.
Ultranav International ApS owns 30.55% of the shares in Navigator Holdings Ltd.,
an owner and operator of the world’s largest fleet of handysize liquefied gas
carriers.
The shares of Navigator Holdings Ltd are listed on the New Your Stock Exchange.
The share price at the reporting date was USD 15.35 (14.55), resulting in a market
valuation of the investment at USD 326 (308) million against a book value of USD
285 million.
The summarized financial information below is adjusted for allocation of
difference between purchase price and book value at the acquisition date
(purchase price allocation).
Summarised financial information
Navigator Holdings Ltd.
USD millions
2024
2023
Revenues
566.7
550.7
Profit or loss
108.3
106.8
Other comprehensive income
-0.4
0.3
Total comprehensive income
107.9
107.1
Current assets
220.4
255.4
Non-current assets
1.689.0
1,666.0
Current liabilities
318.8
185.4
Non-current liabilities
615.4
784.2
Net assets
975.2
945.6
Non-controlling interest
40.9
42.8
Equity attributable to shareholders
934.3
902,8
Ownership % at closing date
30.6%
29.0%
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 47
3.5 BUSINESS COMBINATION UNDER COMMON
CONTROL
§ACCOUNTING POLICIES
Business combinations of entities under common control, which do not affect non-
controlling shareholders of the receiving entity, are combined on a prospective basis.
In applying the book-value method to a business combination under common control, the
assets and liabilities received from the transferred company are measured using the
transferred entity’s book values. Any differences between consideration paid and the book
value of the assets and liabilities received are recognised in equity.
The business combination is made using the prospective approach in which the opening
balance and comparative information are not restated to include the assets and liabilities
of the transferred entity.
Acquisition of Otway Green Energy
On the 5th
of January 2024, the Group completed a share purchase transaction in which the
Group obtained 100% ownership of Otway Green Energy.
The Group acquired Otway Green Energy in a predecessor value transaction with assets of
USD 108 million and liabilities of USD 3 million. The difference between acquisiton price and
net asset of USD 5 million is recognised directly in equity.
The objective of the transaction is to purchase port facilities and participation in the
development of green ammonia production projects in Chile with the purpose to develop
the future fuels for shipping.
Acquisition of Naviera Ultranav Limitada
On the 30th
of April 2024, the Group completed a debt conversion to share capital in which
the Group obtained 88.62% ownership of Naviera Ultranav Limitada to consolidate the
shipping activities under Ultranav International ApS.
The transacation was based on a predecessor value transaction with assets of USD 493
million and liabilities of USD 73 million. No difference between acqusition price and net
asset was recognized.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 48
3.6 BUSINESS COMBINATION
Acquisition of CTP Shipping GmbH
On 31 August 2024, the Group completed a share purchase transaction in which the Group
obtained a 50.1% ownership of CTP Shipping GmbH with a purchase option to buy the
remaining 49.9%, and aligns with the Group’s strategy to further expand its size. The
consideration transferred to sellers comprise of a cash payment of USD 31.5 million along
with a contigent consideration, dependent on EBITDA earnings over a 3-year period, with a
possible range of outcomes between USD 15 – 62.5 million.
The Group obtained a controlling interest on the transaction date and CTP Shipping GmbH
is included in its consolidated financials from that point onwards. The impact in 2024 from
the combination on profit and loss was USD 12.8 million. Had the transaction occurred on
1 January 2024, the proforma impact on profit and loss would have been USD 33.4 million.
Transaction costs of USD 1 million has been recognized in the income statement as Other
External Costs.
Net assets acquired are measured at fair value at the acquisition date. The fair value of
intangible assets, which comprise mainly of customer relations, were evaluated using the
Multi-Period Excess Earnings Method.
Working capital comprise receivables of USD 9.9 million at contractual amounts and are
included at a fair value of USD 9.9 million.
The table below comprise the fair value of net identifiable assets at the transaction date:
USD thousands
Intangible assets, customer relations
44,305
Tangible assets
1,045
Working capital, net
-10,525
Other net assets
38,017
Net financial debt
-5,450
Fair value of equity interests acquired
67,392
§ ACCOUNTING POLICIES
Business combinations are, unless they constitute combinations of entities under common
control, accounted for using the acquisition method.
The consideration paid comprises the fair values of any assets transferred and/or liabilities
incurred to the former owners, including contingent consideration arrangements.
Identifiable assets and liabilities, including any contingent liabilities assumed, are measured
at fair value at the date of acquisition.
The valuation of the customer relationship is based on identifying, separating, and
qualifying the cash flows attributable to the customer base, and capitalizing them.
The Earn-out is accrued over the period from the acqusition date until the payment is
conditional based on expected achieved performance. The cost is recognized as wages and
salaries in the income statement. A part of the earn-out is already recognised as part of the
acqusition price as it was dependent on permance prior to the acquisition date.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 49
SECTION 4: WORKING CAPITAL
4.1 RECEIVABLES AND PREPAYMENTS
4.2 INVENTORIES
4.3 RESTRICTED CASH
4.4 TRADE AND OTHER PAYABLES
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 50
4.1 RECEIVABLES AND PREPAYMENTS
§ ACCOUNTING POLICIES
Receivables
Receivables are measured at amortised cost less provisions for impairment losses. 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 trade receivables.
To measure the expected credit losses trade receivables have been grouped based on credit
risks and the day past due. In accordance with IFRS 9, non-due trade receivables have also
been impaired.
For a description of the Group’s payment terms as well as management of credit risk,
reference is made to note 5.5 Financial risks.
Contract assets
Contract assets include accrued revenue for voyages that are not completed at 31
December, and which were not yet invoiced or prepaid at that date. Contract assets are
recognised when a sales transaction fulfils the criteria for revenue recognition but no final
invoice has yet been issued to the customer for the services delivered.
Prepayments
Prepayments comprise cost incurred in relation to subsequent financial years.
Trade receivables
In the shipping industry, it is standard terms that freight payments are made within few
days of departing from the loading port and time charter payments are even paid in
advance. It is also standard terms that the vessel owner, or disponent owner, has a lien in
the cargo, should the freight payment not have been made prior to arriving at the discharge
port. The credit risk on trade receivables is therefore generally low.
Loans to related companies
Loans to related companies comprise of interest-bearing intragroup loans to a related
company outside the Ultranav International ApS Group. The loans are entered with a fixed
margin of 1.83% – 2.20% + SOFR6M. Management considers the credit risk to be low.
USD thousands
2024
2023
Customers (trade receivables)
129,833
79,740
Contract assets
58,937
63,952
Other receivables
57,520
37,891
Trade and other receivables
246,290
181,583
Receivables from related companies
189,206
112,501
Loans to related companies
5,195
335,683
Loans and receivables, related companies
194,401
448,184
Prepayments
88,205
76,499
Prepayments
88,205
76,499
- Receivables not due
72,491
43,050
- Less than 90 days
47,883
33,301
- Between 91 days and 180 days
8,775
3,551
- Between 181 days and 360 days
2,112
2,933
- More than 360 days
3,938
3,149
Carrying amount of trade receivables excluding provisions
135,199
85,984
Provisions at 31 December
-5,366
-6,244
Carrying amount of trade receivables
129,833
79,740
Provision at 1 January
6,244
9,185
Net change in provision
-878
-2,941
Provision 31 December
5,366
6,244
Trade receivables are non-interest bearing and are generally due within 5 – 90 days.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 51
4.2 INVENTORIES
§ ACCOUNTING POLICIES
Inventories are valued at the lower of cost and net realisable value. Cost is determined on
a first-in, first-out (FIFO) basis. The net realisable value is the estimated selling price in the
ordinary course of business, less applicable variable selling expenses. Costs of bunkers
include the transfer from equity to profit and loss on qualifying cash flow hedges.
USD thousands
2024
2023
Bunkers
55,214
54,149
Inventories
55,214
54,149
Bunker expenses recognised in profit and loss
505,318
494,839
A part of the future bunker consumption has been hedged through derivatives in
accordance with the Group’s risk management policy. This is further described in note 5.5
Risks arising from financial instruments.
4.3 RESTRICTED CASH
§ ACCOUNTING POLICIES
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand, short-
term deposits with an original maturity of three months or less, and cash balances which
are restricted.
USD thousands
2024
2023
Cash and cash equivalents
324,345
535,061
Restricted cash in the form of deposits with clearing houses
26,373
13,139
Cash and cash equivalents, including restricted cash
350,718
548,200
The Group trades derivative financial instruments through clearing houses. In that
connection, the Group has established margin accounts with those clearing houses on
which cash is deposited as security.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 52
4.4 TRADE AND OTHER PAYABLES
§ ACCOUNTING POLICIES
Trade and other payables
Trade payables, payables to related parties, and other payables are measured at amortised
cost.
Contract liabilities
Contract liabilities relate to voyages which are not completed at 31 December. Contract
liabilities are recognised when a sales transaction does not fulfil the criteria for revenue
recognition but the customer has prepaid for the service delivery. If contract liabilities are
beyond one year the contract assets are included in non-current liabilities.
USD thousands
2024
2023
Trade payables
177,252
95,271
Accruals and other payables
67,665
73,561
Contract liabilities
43,589
42,413
Trade and other payables, current
288,506
211,245
Payables to related companies
40,692
27,426
Payables to related companies, current
40,692
27,426
The contract liability balance at the beginning of the year was recognised as revenue during
the reporting period. Outstanding performance obligations will be performed within one
year.
Trade payables are non-interest bearing and are normally settled on 30 days terms. Other
payables, including accrued expenses, are non-interest bearing and vary in payment terms.
The amounts due to related companies are non-trade in nature, interest free, unsecured
and repayable on demand.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 53
SECTION 5: CAPITAL STRUCTURE
5.1 FINANCIAL ITEMS
5.2 OTHER FINANCIAL ASSETS
5.3 INTEREST BEARING LOANS AND BORROWINGS
5.4 LEASE LIABILITIES
5.5 RISKS ARISING FROM FINANCIAL INSTRUMENTS
5.6 FINANCIAL INSTRUMENTS
5.7 DERIVATIVE FINANCIAL INSTRUMENTS
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 54
5.1 FINANCIAL ITEMS
§ ACCOUNTING POLICIES
Financial income and expenses comprise interest income and expense as well as exchange
rate differences from transactions denominated in foreign currencies.
USD thousands
2024
2023
Interest income
19,769
27,572
Interest income, loans to related parties
13,544
23,038
Gain from modification of lease liabilities
256
1,092
Other financial items
11,725
-
Financial income
45,294
51,702
Interest expenses, bank loans and overdrafts
-24,875
-20,003
Interest expenses, lease liabilities
-15,501
-13,071
Interest expenses, loans from related parties
-
-430
Other financial items
-
-1,273
Financial expenses
40,376
-34,777
5.2 OTHER FINANCIAL ASSETS
§ ACCOUNTING POLICIES
Other financial asset comprise of shares and bonds, which are recognised on the trading
date at fair value and subsequently measured at the quoted market price for the listed
securities, as well as other financial assets that are recognised at amortized cost. Value
adjustments related to other financial assets classified as current assets are recognised in
the income statement under financial items. Value adjustments related to other financial
items classified as non-current assets are recognised in other comprehensive income.
USD thousands
2024
2023
Bonds
200,727
80,001
Shares
7,305
7,863
Other financial assets
208,032
87,864
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 55
5.3 INTEREST BEARING LOANS AND
BORROWINGS
§ ACCOUNTING POLICIES
Loans are recognised at the time the loans are obtained in the amount of the proceeds after
deduction of transaction costs. In subsequent periods, the loans are recognised at
amortised costs.
Carrying amount
USD thousands
Type
2024
2023
Interest bearing loans
Fixed
32,097
40,666
Interest bearing loans
Floating
219,933
248,658
Interest bearing loans and borrowings
252,030
289,324
Non-current portion
132,099
271,623
Current portion
119,931
17,701
Interest bearing loans and borrowings
252,030
289,324
The fixed-rate loans are fixed at an interest rate of 3.15% - 3.20% (2023: 3.15% - 3.20%).
The floating-rate loans are based upon the USDLIBOR and SOFR6M with an additional
margin of 1.90% - 2.65% (2023: 1.95% - 2.65%). The interest rate on the floating rate
interest bearing loan was between 6.70% - 7.40% (2023: 7.25% - 8.15%).
The fair value of the fixed loans is not materially different from the carrying amount.
The loans are subject to financial and operational covenants, including a minimum equity.
Management assesses that Ultranav International ApS and the related company guarantor
meet these covenants at the closing date as well as throughout the financial year.
Fixed loans are partly secured by vessels. The carrying amount of the vessels provided as
security is USD 52.4 million (2023: USD 57.8 million).
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 56
5.4 LEASE LIABILITIES
§ ACCOUNTING POLICIES
Lease liabilities
At the commencement date of the lease, the Group recognises a lease liability which is
measured at the present value of lease payments to be made over the lease term. The
service fee included in the payments (non-lease component) is not included as part of the
lease liabilities.
The lease term comprises the non-cancellable period with addition of periods covered by
options to extend the lease if it is reasonably certain that the extension option will be
exercised. This assessment is made on inception of the lease.
The lease payments include fixed payments and variable payments depending on an index
or a rate. The lease payments do also include the exercise price of a purchase option if it is
reasonably certain that it will be exercised.
In calculating the present value of lease payments, Ultranav International ApS uses the
incremental borrowing rate at the lease commencement date. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made.
In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
a change in the lease term, a change in the fixed lease payments or a change in the
assessment to purchase the underlying asset.
Lease contracts for vessels have been entered into with a mutually interminable lease
period. As a general rule, lease contracts include an option to renew for one additional year
at a time for up to three years.
Some lease contracts include customary option for extension of the lease period. The
liability concerning the extension period is only included in lease liabilities if it is reasonably
certain the extension period will be exercised.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 57
5.4 LEASE LIABILITIES (CONTINUED)
The development in lease liabilities is explained in the table below:
USD thousands
2024
2023
Lease liabilities 1 January
328,136
311,239
Additions for the period
161,394
227,661
Remeasurements
-5,183
-40,945
Instalments made
-214,461
-169,819
Lease liabilities 31 December
269,886
328,136
Non-current portion
100,152
124,378
Current portion
169,734
203,758
Lease liabilities 31 December
269,886
328,136
Of the total lease liabilities, USD 39 million (2023: USD 44 million) is related to flexible hire
lease contracts. The flexible hire is based upon the Baltic Exchange index and a change in
the index of 10% will result in a 10% increase in the hire payment for flexible lease hire
contracts.
Leases to which the Group is committed, but for which lease terms have not yet
commenced have an undiscounted value of USD 248 million (2023: USD 129 million).
The total cash outflow from leases in 2024 was USD 1,227 million (2023: USD 1,102 million)
which includes short term leases.
Some lease agreements include a purchase option which is typically exercisable as from the
end of the fifth year to the expiry of the period of renewal. Some of the purchase options
are, however, shared with third parties which limits the potential gain from exercising such
purchase options.
! ACCOUNTING ESTIMATES
Measurement of non-lease components
The Group has chosen to separate lease and non-lease components for leases of time
charter contracts on vessels. For these contracts, the estimated non-lease component
(operating expenses) is excluded from the measurement of right-of-use assets and lease
liabilities. Assessing the measurement of the non-lease component involves significant
estimates. The measurement of the non-lease component takes several factors into
consideration such as operating costs, aging of the vessels, vessel types, etc.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 58
5.5 RISKS ARISING FROM FINANCIAL INSTRUMENTS
Through the Group’s shipping activities, the Group is exposed to a number of risks arising from financial instruments, which the overall management programme focuses on minimising.
Credit Risk
The Group is exposed to credit risk in various ways, however mainly in relation to trade
receivables from customers, prepaid time-charter hire, cash deposits with financial
institutions and the settlement receivables from derivative instruments (namely FFAs and
bunker hedges).
The credit risk of receivables from trade and derivative instruments, along with prepaid
time charter hire, is reduced through systematic credit assessment of each counterparty
and by monitoring their creditworthiness. With respect to FFAs, those instruments are
generally entered with international clearing houses. Similarly, cash at banks is deposited
with international financial institutions with solid credit ratings.
Liquidity Risk
The Group’s strategy is to maintain a solid cash balance that is sufficient to cover cash flows
even through a period of volatile or stressed markets. Cash flows are closely monitored to
evaluate the current cash position.
Derivative instruments
The Group is utilising derivatives to cover exposures in freight rates, bunker prices, and
currencies. The cash flow from derivative contracts are subject to changes in market prices,
to which the derivatives are linked. The Group is monitoring the effectiveness of the
derivatives as hedging instruments to compare if changes in cash flow match the underlying
exposure which they are meant to cover.
Market Risk
The Group’s market risk relates to its currency risk and interest risk.
Interest rate risk
The financing structure of the Group is based partly on floating rate loans. Consequently,
the Group is exposed to fluctuations in USDLIBOR and SOFR6M. The nominal value of the
floating loans end of year was USD 220.0 million. Consequently, a 1pp increase in the
interest rate will have a negative effect on the result of USD 2.2 million. Management
monitors the risk closely.
Currency risk
The global operations of the Group expose it to a currency risk, particularly attached to
cash, receivables and payables in other currencies that USD, mainly DKK, EUR, CLP and ARS.
The currency risk is not deemed significant as these balances make up only a minor portion
of the Group’s financial instruments.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 59
5.6 FINANCIAL INSTRUMENTS BY CATEGORY
Carrying amount and fair value of financial items by class of
financial assets and liabilities
On the next page is a breakdown of the financial assets into categories as defined in IFRS 9.
The fair value is estimated using appropriate market information and valuation
methodologies. The carrying amount of cash and cash equivalents and loan payables to
bank are a reasonable estimate of their fair value.
Fair value for derivatives and borrowings has been calculated by discounting the expected
future cash flows at relevant interest rates. Judgement is required to develop estimates of
fair value. Hence, the estimates provided herein are only indicative of the amounts that
could be realised in the market.
The contractual cash flows are non-discounted and include all liabilities according to
contracts. The USD values of future interests and principal loans in foreign currencies are
calculated based on the rates at the balance sheet date.
Categories of financial instruments
The fair value of financial assets and financial liabilities measured at amortized cost is
approximately equal to the carrying amount.
Financial instruments measured at fair value are divided in accordance with the following
accounting hierarchy:
- Level 1: observable market prices of identical instruments.
- Level 2: valuation models primarily based on observable prices or trading prices of
comparable instruments
- Level 3: valuation models primarily based on non-observable prices.
Other financial assets: the fair value of shares and bonds are considered fair value
measurement at level 1 as the fair value is based on observable market prices of identical
instruments.
Derivative financial instruments: the fair value of all derivative financial instruments,
forward exchange contracts and other derivative financial instruments (commodity
instruments), is considered fair value measurement at level 2 as the fair value is based on
observable pricing information.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 60
5.6 FINANCIAL INSTRUMENTS BY CATEGORY (CONTINUED)
Tables with carrying amounts of financial items by class of financial assets and liabilities
USD thousands
31 December 2024
31 December 2023
0-1 Year
1-5 Years
Contractual
cash flow
Carrying
amount
0-1 Year
1-5 Years
Contractual
cash flow
Carrying
amount
Recognised at amortised cost
Loans from financial institutions
131,109
144,499
275,608
252,030
23,620
301,904
325,524
289,324
Payable to- and loans from related companies
40,692
-
40,692
40,692
27,462
-
27,462
27,426
Trade and other payables
288,506
51,286
339,792
339,792
211,245
-
211,245
211,245
Lease liabilities
178,496
107,025
285,521
269,886
243,950
89,659
333,609
328,136
Total
638,803
302,810
941,613
902,400
506,277
391,563
897,840
856,131
Recognised at fair value
Derivative financial instruments
18,691
6,361
25,052
25,052
15,088
3,689
18,777
18,777
Total
18,691
6,361
25,052
25,052
15,088
3,689
18,777
18,777
Total financial liabilities
657,494
309,171
966,665
927,452
521,365
395,252
916,617
874,944
Recognised at amortised cost
Cash and restricted cash
350,718
-
350,718
350,718
548,200
-
548,200
548,200
Trade and other receivables
246,290
27,207
273,497
273,497
181,583
3,450
185,033
185,033
Receivables from- and loans to related companies
169,971
24,690
194,661
194,401
430,291
24,750
455,041
448,184
Total
766,979
51,897
818,876
818,616
1,160,074
28,200
1,184,824
1,177,967
Recognised at fair value
Derivative financial instruments
8,673
799
9,472
9,472
25,468
3,756
29,224
29,224
Total
8,673
799
9,472
9,472
25,468
3,756
29,224
29,224
Total financial assets
775,652
52,696
828,348
828,088
1,185,542
31,956
1,214,048
1,207,191
Contractual cash flow arising from financial guarantee contracts are disclosed in note 6.3 to the Consolidated Financial Statements.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 61
5.7 DERIVATIVE FINANCIAL INSTRUMENTS
§ ACCOUNTING POLICIES
The Group uses derivative financial instruments such as forward currency contracts, bunker
hedges and FFAs to hedge part of risks. Such derivative financial instruments are initially
recognized at fair value on the date on which a derivate contract is entered into and are
subsequently re-measured at fair value. Derivatives are carried as assets when the fair value
is positive and as liabilities when the fair value is negative. Any gains or losses arising from
changes in fair value on derivatives that do not qualify for hedge accounting are taken
directly to profit or loss.
The fair value of forward currency contracts is calculated by reference to current forward
exchange rates for contracts with similar maturity profiles. The fair value of bunker hedge
and the fair value of FFAs are determined by reference to market values for similar
instruments.
For the purpose of accounting, hedges are classified as:
• fair value hedges when hedging the exposure to change in fair value of a recognised
asset or liability or an unrecognised firm commitment (except for foreign currency risk);
or
• cash flow hedge when hedging exposure to variability in cash flow that is either
attributable to a particular risk associated with a recognised asset or liability or a highly
probable forecast transaction or the foreign currency risk in an unrecognised firm
commitment.
At time of entering into a hedge relationship, the Group designates and documents the
hedge relationship to which the Group wishes to apply for hedge accounting and the risk
management objectives and strategy for undertaking the hedge. The documentation
includes identification of the hedging instrument, the hedged item or transaction, the
nature of the risk being hedged and how the entity will assess the hedging instrument’s
effectiveness requirements.
The criteria for classifying a derivative as a hedging instrument for accounting purposes are
as follows:
• there is an economic relationship between the hedged item and the hedging instrument
• the effect of credit risk does not dominate the value changes that result from the
economic relationship
• the hedge ratio of the hedging relationship is the same as that resulting from the
quantity of the hedged items that the entity actually hedges and the quantity of the
hedging instrument that the entity actually uses to hedge that quantity of hedged item.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
Fair value hedges
Derivatives designated as hedging instruments are measured at fair value and changes in
fair value are recognised in the income statement. Correspondingly, a change in the fair
value of the hedged item attributable to the hedged risk is recognised in the income
statement. The fair value hedge accounting is discontinued if the hedging instrument
expires or is sold, terminated or exercised, or the hedge no longer meets the criteria for
hedge accounting stated above.
Cash flow hedges
Changes in the fair value of a hedging instrument that meet the criteria for cash flow hedge
accounting are recognized in other comprehensive income. The ineffective part of the
hedging instrument is recognised directly in the income statement. Gains and losses that
are recognised in other comprehensive income are taken to the income statement in the
same period or periods as the cash flow which comprises the hedged item is recognised in
the income statement. The principle also applies if the hedged forecasted transaction
results in an asset or liability being recognised in the balance sheet. If the cash flow hedge
no longer meets the criteria for hedge accounting, hedge accounting is discontinued. The
cumulative gain or loss of the hedging instrument recognised in other comprehensive
income remains separately recognised in other comprehensive income until the forecast
transaction occurs. If the cash flow hedged transaction is no longer expected to occur, any
previously accumulated gain or loss of the hedging instrument that has been recognised in
other comprehensive income will be carried to profit or loss. Derivatives not accounted for
as hedging instruments are classified as financial assets at fair value through profit or loss
and measured at fair value.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 62
5.7 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
§ ACCOUNTING POLICIES (CONT.)
Economic trading & economic hedging
Derivative financial instruments, which are not deignated as cash flow hedges, are
categorized as either economic trading or economic hedging. These derivatives do not meet
the criteria for hedge accounting. Gains and losses, realised or unrealised, from derivatives
used for economic trading or economic hedging are recognised in the income statement.
Determination of fair value
The fair value of financial assets and liabilities is measured on the basis of quoted market
prices of financial instruments traded in an active market. If an active market exists, fair
value is based on the most recent observed market price at the end of the reporting period.
If an active market does not exist, the fair value is measured according to generally accepted
valuation techniques. Market-based parameters are used to measure fair value.
For bunker contracts the price is based on the prices from Platts Bunkerwire. The value of
FFAs is assessed on basis of daily recorded prices from the Baltic Exchange.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 63
5.7 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Hedging of bunker expenses
The Group has entered bunker derivatives in order to hedge future bunker expenses. The
bunker derivatives are accounted for as cash flow hedges.
The bunker derivatives are entered simultaneously with the Contracts of Affreightment
(CoA) or single cargoes, as part of the Group’s risk management. The bunker derivatives
cover the bunker expenses in connection with the CoA and the duration of the bunker
derivative is therefore similar to the duration of the CoA. 92% of the nominal value is
realised within 1 year and 8% is realised within 1-3 years. The nominal value at the end of
the year is USD 46 million and a drop in bunker prices of 10% will have a negative impact
on equity of USD 5 million. Ultranav International ApS has established a hedge ratio of 1:1
as the underlying risk of the hedging instrument is identical to the hedged risk component.
Hedge ineffectiveness can arise from differences in timing of the cash flows as well as
changes to the forecasted amounts. No ineffectiveness has been recognised.
Hedging of freight rates
The Group has entered into freight derivatives (“FFAs”) in order to hedge future cargo and
vessel commitments. The freight derivatives comprise a portfolio of swaps and call options
which are accounted for as cash flow hedges as part of Ultranav’s risk management. 75% of
the nominal value is realised within 1 year and 25% is realised within 1-3 years. The nominal
value at the end of the year is USD 84 million and a drop in the Baltic Dry rates of 10% will
have a negative impact on equity of USD 8 million.
The Group has established a hedge ratio of 1:1 as the underlying risk of the hedging
instrument is identical to the hedged risk component. Hedge ineffectiveness can arise from
price difference between the Baltic Dry and the actual freight rates and difference in
number of days and timing of cash flows. No ineffectiveness has been recognised.
Economic hedging using freight derivatives
In continuation of above, the Group has also entered certain swaps with the purpose of
hedging specific routes and vessel types for which the availability of data points are not
sufficient to document an effective hedging relationship. Those swaps are labelled
economic hedging and are regarded as a business-related hedge for internal reporting
purposes. Changes in fair value of economic hedges are recognised in profit or loss.
Economic trading using freight derivatives
In line with its freight trading approach, the Group has entered certain swaps with the
purpose of economic trading. Strict control systems are in place to monitor developments
and ensuring that risk is constrained at acceptable pre-defined levels, which are duly aligned
with our strategy and proportionate with our financial strength. Changes in fair value of
those swaps are recognised in profit or loss.
Hedging of expenses in foreign currencies
The Group has entered currency forwards to hedge the USD value of the Group’s net cash
flow and reduce fluctuations in the Group’s profit. The key aspects of the currency hedging
policy are that Net Cash Flows in foreign currenies, namely DKK and EUR, are hedged with
a 12-24-month horizon. Significant capital commitments or divestments in other currencies
than USD may also be hedged.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 64
5.7 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Overview of derivative financial instruments at year-end
December 31st 2024
December 31st 2023
Nominal
(USDm)
Net
days/MT
Duration
(months)
Recognised
in equity
(USDm)
Fair value
(USDm)
Nominal
(USDm)
Net
days/MT
Duration
(months)
Recognised
in equity
(USDm)
Fair value
(USDm)
Hedge accounting applied
FX hedges (USD/DKK)
19.3
1-12
-1.4
-1.2
12.5
-
1-12
-1.1
-
FFA swaps (Days)
123.2
9,660
1-36
-6.8
-15.7
134.4
10,048
1-36
8.1
10.5
Bunker hedges (MT)
46.4
94,884
1-60
0.1
1.1
36.7
71.886
1-60
0.4
0.2
Hedge accounting not applied
FFAs (Days)
1.3
90
1-24
-
0.2
-0.6
-46
1-24
-
-0.2
Net fair value of derivative instruments
-15.6
10.5
USD millions
Fair value
Fair value
Presentation in the Consolidated Financial Statement as:
Derivative financial instruments, non-current assets
0.8
3.8
Derivative financial instruments, current asset
8.7
25.5
Derivative financial instruments, non-current liabilities
-6.4
-3.7
Derivative financial instruments, current liabilities
-18.7
-15.1
Net fair value of derivative financial instruments
-15.6
10.5
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 65
5.7 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Net amount recognised in Other Comprehensive Income
USD millions
2024
2023
Effective portion of changes in fair value from:
FX hedges
-1.5
-1.2
Bunker hedges
-10.4
3.4
FFA hedges
-24.3
7.5
Cash deposit designated as cash-flow hedge
0.3
-4.5
Amounts reclassified to profit and loss:
FX hedges reclassified to financial items
0.1
0.1
Bunker hedges reclassified to voyage related expenses
1.0
-9.7
FFA hedges reclassified to revenue
9.4
7.3
Cash flow hedges, gain/loss for the year (net)
-25.4
3.0
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 66
SECTION 6: OTHER DISCLOSURES
6.1 REMUNERATION OF MANAGEMENT
6.2 FEE TO THE STATUTORY AUDITORS
6.3 CONTINGENT LIABILITIES AND COMMITMENTS
6.4 OTHER NON-OPERATING CASH ITEMS (CASH FLOW)
6.5 CHANGE IN WORKING CAPITAL (CASH FLOW)
6.6 CHANGE IN LIABILITIES (CASH FLOW)
6.7 RELATED PARTY DISCLOSURES
6.8 SHARE CAPITAL
6.9 EVENTS AFTER THE BALANCE SHEET DATE
6.10 GROUP STRUCTURE
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 67
6.1 REMUNERATION OF MANAGEMENT
Remuneration of Board of Directors
The members of the Board of Directors do not receive any fees or incentives from the
Group.
Remuneration of Executive Management
The Executive Management comprise of three members, all of which are remunerated
directly by the parent company.
USD thousands
2024
2023
Fixed salaries
244
251
Pensions – defined contribution plans
17
24
Incentive payments (cash based)
148
132
Total remuneration included in Staff expenses
409
407
Key management personnel
In 2024, key management personnel of Ultranav International ApS Group comprised twelve
members (2023: seven members).
USD thousands
2024
2023
Fixed salaries
4,087
427
Pensions – defined contribution plans
22
21
Incentive payments (cash based)
6,113
707
Total remuneration included in Staff expenses
10,222
1,155
Fee included in Other external expenses
-
2,500
Total expense for Key Management Personnel
10,222
3,655
Key management personnel are subject to a notice of up to 18 months and can resign from
Management with a notice of up to 9 months. Senior Management and a number of
employees are covered by a cash-based incentive scheme.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 68
6.2 FEE TO THE STATUTORY AUDITORS
Total fee for statutory auditors breaks down as follows:
USD thousands
2024
2023
Statutory audit
957
392
Tax assurance services
168
33
Other services
186
2
Fees to statutory auditors
1,311
427
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 69
6.3 CONTINGENT LIABILITIES & COMMITMENTS
§ ACCOUNTING POLICIES
Provisions are recognised when the Group has a present obligation (legal or constructive)
as a result of a past event, it is probable that the obligation has to be settled and that a
reliable estimate of the obligation can be made.
Contingent liabilities
The Group is part in certain litigation proceedings. In the opinion of management,
settlement or continuation of these proceedings are not expected to have a material effect
on the Group’s financial position, operating profit or cash flow.
The parent company is jointly taxed with other Danish companies in the Ultranav
International ApS Group. The companies are jointly and unlimited liable for Danish
corporation tax and withholding taxes on dividends, interest and royalties in the joint
taxation. Any subsequent corrections of joint taxation of income or withholding taxes on
dividends, etc, could lead to Company’s liability constituting a larger amount.
The Group's Danish companies are jointly and separately liable for the joint registration of
VAT.
Guarantees
The Group has issued guarantees for loans to joint ventures and related companies. The
table below summarises guarantees at year-end:
USD thousands
2024
2023
Guarantees
The Group has issued guarantees for loans to joint ventures
157,006
14,455
The Group has issued guarantees for credit facilities in related
companies
178,036
133,036
Total
335,042
147,491
Short-term leases and low value leases
The Group has recognized right-of-use assets in line with IFRS 16, except for short term and
low value leases. The table below summarises future commitments on short term and low
value leases which are entered at year-end:
USD thousands
2024
2023
Short term leases and low value leases
367,202
318,086
Total
367,202
318,086
COAs and Time Charter commitments as service provider
At 31 December, the Group had entered into Contracts of Affreightment (“COAs”) and time
charters with customers amounting to:
USD thousands
2024
2023
COAs and Time Charter commitments as service provider
Within one year
504,193
321,465
Between 1 – 5 years
493,742
101,356
More than 5 years
79,550
3,927
Total
1,077,485
426,748
COAs constitute a commitment to transport cargoes in a predetermined period and at a
predetermined price per ton. Time charter commitments as a service provider constitute a
commitment to charter a vessel to a customer.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 70
6.4 OTHER NON-OPERATING CASH ITEMS
(CASH-FLOW)
USD thousands
2024
2023
Gain on sale of vessels, plant, and equipment
-23,203
-58,644
Gain from disposal of associates
-
-8,747
Depreciation and impairment loss
276,091
199,751
Loans to related companies, debt conversion
312,000
-
Acquisition of subsidiaries, debt conversion
-312,000
-
Share of profit from investments accounted for using equity
method
-45,085
-47,349
Interest income on loans to related parties
-23,381
-15,655
Interest expenses on loans
27,973
18,896
Interest expenses on lease liabilities
15,501
13,071
Interest expenses on loans to related parties
-
430
Modification of lease liabilities
-256
-1,092
Economic trading
-648
36
Economic hedge
110
439
Other non-cash operating items
11,875
-2,701
Total
238,977
98,435
6.5 CHANGE IN WORKING CAPITAL
(CASH-FLOW)
USD thousands
2024
2023
Change in receivables
-178,346
6,890
Change in inventories
-1,062
5,029
Change in liabilities
90,527
-51,283
Total
-88,881
-39,364
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 71
6.6 CHANGES IN LIABILITIES (CASH FLOW)
Changes in liabilities arising from finance activities
2024
USD thousands
1 January
Cash in-flow
Cash out-flow
Other
31 December
Lease liabilities
328,136
-
-214,461
156,211
269,886
Interest-bearing loans and borrowings
289,324
6,850
-110,312
66,168
252,030
Total liabilities from financing activities
617,460
6,850
-324,773
222,379
521,915
2023
USD thousands
1 January
Cash in-flow
Cash out-flow
Other
31 December
Lease liabilities
311,239
-
-169,819
186,716
328,136
Interest-bearing loans and borrowings
275,737
14,615
-12,239
11,211
289,324
Total liabilities from financing activities
586,976
14,615
-182,058
197,927
617,460
The category ‘Other’ comprise primarily of additions and remeasurements of lease liabilities as well as interest accruals included in the carrying value of interest-bearing loans and
borrowings. Reference is made to note 5.4 – Lease liabilities.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 72
6.7 RELATED PARTY DISCLOSURES
Ownership
Ultranav International ApS is a wholly-owned subsidiary of Naviera Ultranav Dos Limitada,
Av, El Bosque Norte 500 Piso 20, 7550092 Las Condes, Santiago, Chile.
The Consolidated Financial Statements of Ultranav International ApS is available at the
Company's address. The ultimate controlling party of Ultranav International ApS is
Inversiones Volcán Mocho Dos S.A., Av, El Bosque Norte 500 Piso 22, 7550092 Las Condes,
Santiago, Chile.
Transactions with related parties
The table below summarises transactions made in the financial year and amounts owed at
year-end:
Sales/(Purchases)
Amounts owed by/(to)
USD thousands
2024
2023
2024
2023
Related companies
Charter income
45,708
36,589
-
-
Charter expenses
-41,017
-46,669
-
-
Other service expenses
-51,556
-67,632
-
-
Management fee income
19,740
3,011
-
-
Management fee expense
-3,218
-29,965
-
-
Interest & Loans
10,074
22,937
57,685
333,139
Receivables and payables
-
-
-6,858
-4,035
Sales of vessels
-
24,766
Joint Ventures & Associates
Charter hire
293,267
207,598
-
-
Charter expenses
-74,623
-52,394
-
-
Management fee income
15,620
7,108
-
-
Receivables and payables
-
-
94,215
72,872
Guarantees
-
-
12,892
14,455
6.8 SHARE CAPITAL
The share capital is split in 135,360,000 shares of DKK 1 per share, totalling a nominal share
capital of 135,360,000 DKK. In connection with the parent company’s redomiciliation of its
registered office to Denmark on 25 November 2022, the share capital was converted to be
denominated in DKK. Apart from this, there has been no changes in the share capital over
the past five years.
6.9 EVENTS AFTER THE BALANCE SHEET DATE
Disclosure of events after the balance sheet date
In January 2025, the Group exercised its purchase option to acquire the remaining 49.9%
ownership interest in CTP Shipping GmbH, bringing its total ownership to 100% in 2027.
Reference is made to note 3.6 to the Consolidated Financial Statements with regards to a
business combination. No further events occurred after the balance date that materially
affect the financial position of the group.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 73
6.10 GROUP STRUCTURE
The Naviera Ultranav Group has been present in Denmark for more than 15 years through
its dry bulk activities (Ultrabulk A/S) and its fleet of gas carriers (now merged with Navigator
Holdings Ltd.). Today, the Danish holding company is also the owner of the Ultranav Group’s
international activities within the segments Towage & Offshore, Tankers, Dry bulk and Gas
carriers.
The Ultranav International ApS Group comprise more than 30 subsidiaries at the balance
sheet date of which the largest are listed below.
List of material subsidiaries included in
the Consolidated Financial Statements
Share of ownership
Ultrabulk A/S, Denmark
100.0%
Southern Cross CT Inc., Panama
87.5%
Ultratank Shipping S.A., Uruguay
100.0%
Horizon Shipping, Inc, Panama
100.0%
Austral Product Tankers Inc, Panama
100.0%
Petrolera Transoceánica S.A., Peru
99.75%
Inversiones Ultratug Limitada, Chile
88.62%
Naviera Ultranav Limitada, Chile
88.62%
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 NOTES | PAGE 74
PARENT COMPANY FINANCIAL STATEMENTS
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 75
PROFIT OR LOSS
1 JANUARY – 31 DECEMBER
USD thousands
Note
2024
2023
Revenue
338
351
Other external expenses
-1,173
-1,072
Staff costs
2
-920
-571
Operating profit (EBIT)
-1,755
-1,292
Share of subsidiaries’ profit after tax
3
188,043
302,792
Share of associates’ profit after tax
4
32,225
31,050
Gain from disposal of associates
-
8,747
Financial income
5
16,101
30,472
Financial expenses
5
-16,600
-18,290
Profit/loss before tax
218,014
353,479
Tax
6
-4,172
-15,116
Profit/loss for the period
213,842
338,363
Proposal for the distribution of net result:
Reserve for net revaluation according to equity method
220,268
333,842
Retained earnings
-6,426
4,521
Profit/loss for the period
213,842
338,363
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 76
BALANCE SHEET
ASSETS
USD thousands
Note
2024
2023
Investments in subsidiaries
3
1,304,794
791,390
Investments in associates
4
297,593
267,814
Loans to related companies
4,316
4,732
Financial assets, non-current
1,606,703
1,063,936
Total non-current assets
1,606,703
1,063,936
Trade and other receivables
56
6
Prepayments
3,451
56
Receivables from related companies
1,536
-
Loans to related companies
13,399
325,835
Income tax receivables
1,884
-
Cash and short-term deposits
83,070
231,858
Total current assets
103,396
557,755
TOTAL ASSETS
1,710,099
1,621,691
EQUITY AND LIABILITIES
USD thousands
Note
2024
2023
Share capital
18,311
18,311
Retained earnings
1,362,366
1,199,467
Reserve for net revaluation according to equity method
172,874
158,969
Total equity
1,553,551
1,376,747
Interest bearing loans and borrowings
7
74,742
234,547
Total non-current liabilities
74,742
234,547
Trade and other payables
310
183
Interest bearing loans and borrowings
7
81,496
4,593
Income tax payable
-
4,951
Payables to related companies
-
670
Total current liabilities
81,806
10,397
Total liabilities
156,548
244,944
TOTAL EQUITY AND LIABILITIES
1,710,099
1,621,691
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 77
STATEMENT OF CHANGES IN EQUITY
USD thousands
Share capital
Reserve for
net revaluation
according to
equity method
Retained
earnings
Total equity
Equity as 1 January 2023
18,311
158,969
1,199,467
1,376,747
Net result
-
220,268
-6,426
213,842
Dividends received from subsidiaries and associates
-
-178,999
178,999
-
Other equity movements in subsidiaries and associates
-
-27,364
-
-27,364
Effects from business combinations
-
-
-9,674
-9,674
Equity as 31 December 2024
18,311
172,874
1,362,366
1,553,551
Equity as 1 January 2023
18,311
118,109
897,659
1,034,079
Net result
-
333,842
4,521
338,363
Dividends received from subsidiaries and associates
-
-297,290
297,290
-
Other equity movements in subsidiaries and associates
-
4,308
-
4,308
Other changes
-
-
-3
-3
Equity as 31 December 2023
18,311
158,969
1,199,467
1,376,747
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 78
1 BASIS OF REPORTING
⌂ MAIN ACTIVITIES
The main activities of parent company, UItranav International ApS, comprise holding of
shares in subsidiaries, associates and joint ventures, as well as group funding and cash
management.
§ GENERAL ACCOUNTING POLICIES
The Parent Company Financial Statements of Ultranav International ApS have been
prepared pursuant to the provisions for large class C enterprises of the Danish Financial
Statements Act.
The Company’s business is primarily based on the US Dollar. All income in the form of freight
income is in US Dollar, and most costs are in US Dollars as well. Based on this, the Company
has designated the US Dollar as its functional and reporting currency. Consequently, all
amounts are recognised in US Dollar. For USD conversion rate to DKK please refer to note
1.1 of the consolidated financial statements.
The Consolidated Financial Statements have been prepared in accordance with IFRS. The
accounting policies applied for the Consolidated Financial Statements regarding recognition
and measurement have also been applied for the Parent Company with the below
exemptions.
With reference to the provisions of the Danish Financial Statements Act §86 para. 4., the
Company has refrained from preparing a cash flow statement in the Parent Company
Financial Statements. For this information, see the Consolidated Financial Statements for
Ultranav International ApS.
In accordance with section 96 para 3 of the Danish Financial Statements Act, the Company
has not disclosed the remuneration to the auditors for the Parent Company. Please refer to
note 6.2 in the Consolidated Financial Statements for Ultranav International ApS.
2 STAFF COSTS
USD thousands
2024
2023
Wages and salaries
-808
-506
Pensions – defined contribution plans
-62
-50
Other staff costs
-50
-15
Staff costs
-920
-571
Average number of employees in the year
7
4
Headcount at end of year
7
4
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 79
3 INVESTMENTS IN SUBSIDIARIES
§ ACCOUNTING POLICIES
Investments in subsidiaries are recognised and measured according to the equity method.
The proportional share of profit or loss of subsidiaries are included in Profit or Loss. The
proportional share of net assets of subsidiaries are included in the balance sheet.
Subsidiaries with negative net asset value are recognised at USD 0 million, and a provision
to cover the negative balance is recognised if such a present obligation for this purpose
exists.
The net value adjustment to the cost of investments in subsidiaries is, when positive,
recognised in the “Reserve for net revaluation according to equity method” under equity.
The reserve is reduced by dividend payments from subsidiaries.
USD thousands
2024
2023
Cost at 1 January
689,473
643,624
Transferred from Investments in associates
-
13,052
Acquired through business combination
372,000
-
Additions for the year
165,416
32,797
Cost at 31 December
1,226,889
689,473
Value adjustment at 1 January
101,917
92,172
Share of result for the year
188,043
302,792
Dividends
-174,662
-297,290
Movements in equity in subsidiaries
-37,041
4,229
Other increase/(decrease)
-352
14
Value adjustment at 31 December
77,905
101,917
Carrying amount at 31 December
1,304,794
791,390
Specification of direct investments:
Company
Registered office
Ownership
Ultrabulk A/S
Denmark
100.0%
Cedrela Shipping ApS
Denmark
100.0%
Ultratank Shipping ApS
Denmark
100.0%
Ultratug ApS
Denmark
100.0%
Otway Green Energy A/S
Denmark
100.0%
Ultranav Fluvial A/S
Denmark
100.0%
Ultranav International II S.A.
Panama
100.0%
Naviera Ultranav Limitada
Chile
88.6%
Inversiones Ultratug Limitada
Chile
88.6%
Petrolera Transoceánica S.A.
Peru
50.0%
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 80
4 INVESTMENTS IN ASSOCIATES
§ ACCOUNTING POLICIES
Investments in associates are recognised and measured according to the equity method.
The proportional share of profit or loss of associates are included in Profit or Loss. The
proportional share of net assets of associates are included in the balance sheet. Associates
with negative net asset value are recognised at USD 0 million (2023: USD 0 million). A
provision to cover net liabilites is recognised when such an obligation exists.
The net value adjustment to the cost of investments in associates is, when positive,
recognised in the “Reserve for net revaluation according to equity method” under equity.
The reserve is reduced by dividend payments from associates.
USD thousands
2024
2023
Cost at 1 January
212,942
222,268
Additions for the year
1,781
3,726
Transferred to Investment in subsidiaries
-
-13,052
Cost at 31 December
214,723
212,942
Value adjustment at 1 January
54,872
25,937
Share of result for the year
32,225
31,050
Dividends
-4,337
-2,120
Other increase/(decrease)
-6,604
5
Value adjustment at 31 December
76,156
54,872
Ownership interests
290,879
267,814
Goodwill
6,714
-
Carrying amount at 31 December
297,593
267,814
Specification of direct investments:
Company
Registered office
Ownership
Navigator Holdings Ltd.
Marshall Islands
30.5%
Upteko ApS
Denmark
17.7%
Port-Safety ApS
Denmark
15.0%
United Overseas Product II AS
Norway
10.0%
MAHI BV
Belgium
3.0%
Cliin Robotics
Denmark
14.1%
Signol Ltd.
United Kingdom
5%
Miwire Group ApS
Denmark
17.48%
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 81
5 FINANCIAL ITEMS
USD thousands
2024
2023
Interest income
4,093
7,871
Interest income, loans to related parties
12,008
22,601
Financial income
16,101
30,472
Interest expenses, bank loans and overdrafts
-16,387
-17,788
Other financial items, net
-213
-502
Financial expenses
-16,600
-18,290
6 TAX
USD thousands
2024
2023
Current tax on profit for the year
-4,172
-14,533
Deferred tax for the year
-
-702
Tax on profit for the year
-4,172
-15,235
Adjustments related to previous years – current tax
-
119
Tax in the income statement
-4,172
-15,116
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 82
7 INTEREST BEARING LOANS AND BORROWINGS
§ ACCOUNTING POLICIES
Loans are recognised at the time the loans are obtained in the amount of the proceeds after
deduction of transaction costs. In subsequent periods, the loans are recognised at
amortised costs.
Carrying amount
USD thousands
Type
2024
2023
Interest bearing loans
Floating
156,238
239,140
Interest bearing loans and borrowings
156,238
239,140
Non-current portion
74,742
234,547
Current portion
81,496
4,593
Interest bearing loans and borrowings
156,238
239,140
The floating-rate loans are based upon SOFR6M with an additional margin of 1.90% - 2.65%
(2023: 1.95% - 2.65%). The interest rate on the floating rate interest bearing loan was
between 6.70% - 7.40% (2023: 7.25% - 8.15%).
The fair value of the fixed loans is not materially different from the carrying amount.
The loans are subject to financial and operational covenants, including a minimum equity.
Management assesses that Parent Company and the Group meet these covenants at the
closing date as well as throughout the financial year.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 83
8 CONTINGENT LIABILITIES
Ultranav International ApS is in joint taxation with other Danish companies in the Group.
Reference is made to note 6.3 to the Consolidated Financial Statements.
9 GUARANTEES
Ultranav International ApS loans to joint ventures and related companies. The table below
summarises guarantees at year-end:
USD thousands
2024
2023
Guarantees
The company has issued guarantees for loans to related
companies
128,036
133,036
The company has issued performance guarantees to
subsidiaries
90,953
86,162
Total
218,989
219,198
In addition to above, Ultranav International ApS has issued guarantees to certain
counterparties through which we are entering derivative financial instruments for hedging
purposes. Reference is made to note 5.7 to the Consolidated Financial Statements which
details the maximum exposure of the Group.
10 RELATED PARTY DISCLOSURES
Reference is made to note 6.7 in the consolidated financial statements, for related party
transactions with other than wholly owned subsidiaries of Ultranav International ApS.
In accordance with section 98c(3) of the Danish Financial Statements Act, the Company has
not disclosed any related party transactions with its wholly owned subsidiaries.
Ownership:
Ultranav International ApS is a wholly-owned subsidiary of Naviera Ultranav Dos Limitada,
Av, El Bosque Norte 500 Piso 20, 7550092 Las Condes, Santiago, Chile.
The Consolidated Financial Statements of Ultranav International ApS is available at the
Company's address. The ultimate controlling party of Ultranav International ApS is
Inversiones Volcán Mocho Dos S.A., Av, El Bosque Norte 500 Piso 22, 7550092 Las Condes,
Santiago, Chile.
11 EVENTS AFTER THE BALANCE SHEET DATE
For subsequent events, reference is made to note 6.9 in the Consolidated Financial
Statements.
ULTRANAV INTERNATIONAL ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 84
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