Ultrabulk A/S
Smakkedalen 6, 2820 Gentofte, Denmark
CVR.no. 38 28 37 15
2023
Annual Report
Ultrabulk A/S
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 2
TABLE OF CONTENTS
Ultrabulk at a glance ........................................................................................ 3
About Ultrabulk .................................................................................................. 4
Our organisation ................................................................................................ 5
Our people ......................................................................................................... 6
Our offices .......................................................................................................... 7
Part of a large and diversified shipping group ................................................... 8
2023 highlights ................................................................................................... 9
Financial review ............................................................................................. 11
Group key figures and ratios ............................................................................ 12
2023 financial performance ............................................................................. 13
2024 outlook .................................................................................................... 15
Our business .................................................................................................. 16
Business model ................................................................................................. 17
Risk management ............................................................................................. 18
Sustainability in Ultranav ................................................................................. 21
Corporate governance...................................................................................... 22
Signatures ...................................................................................................... 24
Statement by the Board of Directors and Executive Management .................. 25
Independent Auditor’s Report .......................................................................... 26
Consolidated financial statements .................................................................. 29
Consolidated income statement ....................................................................... 30
Consolidated balance sheet .............................................................................. 31
Consolidated statement of cash flows .............................................................. 32
Consolidated statement of changes in equity .................................................. 33
Notes to the consolidated financial statements ............................................... 34
Parent company financial statements ............................................................. 74
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 3
ULTRABULK AT A GLANCE
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 4
ABOUT ULTRABULK
Ultrabulk is a global dry bulk operator, servicing
its customers in their maritime transportation
needs in the Panamax, Supramax, Handysize
segments as well as for Specialized services.
Via Ultranav, a privately owned group of shipping
companies, Ultrabulk has strong connections to
South America, Chile in particular, but also a long
tradition in Danish shipping with roots dating back
to 1897 and “Rederiet Myren”, which was originally
part of the more commonly known East Asiatic
Company (EAC).
Ultrabulk’s customers are served from nine offices
strategically located around the world. The
geographical spread of offices enables us to serve
our partners in their own time zone in relation to
both Chartering and Operations. Each office is
empowered with adequate authority to make the
right business decisions in a quick and efficient
manner.
We aspire to build and operate the best platform of
shipping services for the development and success
of our customers, employees and communities.
Long-term partnerships with close customers
combined with a freight trading approach are the
core of our business. Ultrabulk combines an asset
light business model with a strong focus on risk
management.
Ultrabulk also operates in several specialised parcel
services with substantial synergies to our core
business. It is a strategic focus to continue
developing additional specialised trades as they are
important elements in future growth of the current
fleet of around 165-200 vessels.
Continued investments in improving market
surveillance and voyage optimisation systems will
support the business development process going
forward, especially in relation to efforts to optimise
the balance between cargo contracts and tonnage
commitments.
With our controlled exposure systems, solid balance
sheet and as part of a strong shipping group, we are
confident that we will be able to consolidate our
position further as a preferred counterpart, and to
actively pursue the opportunities which will arise
under prevailing market conditions.
A partner you
can trust
ULTRABULK AT A GLANCE | PAGE 4
Our fleet
ULTRABULK ANNUAL REPORT 2022
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 5
OUR ORGANISATION
Our commercial segments work in specialised
teams with a strong focus on market trends in each
segment. Each team is duly empowered enabling
them to respond to current market conditions and
fluctuations in a swift and efficient manner without
unnecessary delay or bureaucracy.
We make sure to always coordinate and align
between the different segments and we have a
strong cross-collaboration culture in place.
A designated operator with specialised commodity
and trade knowledge is allocated to each key
customer. This ensures a smooth dialogue and a
constructive environment, where we focus on our
customers’ requirements and priorities at all times.
The commercial teams are supported by a skilled
and professional back-office team.
Chartering
Panamax
Supramax
Handysize
Long-Term
MPP & Minibulk
Parcel Services
African Services
Support
Finance
Treasury
Operations Control
Business Intelligence
Communication
HR
IT
Locations
Cape Town
Copenhagen
Dubai
Singapore
Sydney
Tokyo
ULTRABULK AT A GLANCE | PAGE 5
ULTRABULK ANNUAL REPORT 2023
Excellence
We constantly measure, analyse
and adjust in order to enhance
quality.
Passion
We address challenges
with passion and positive
commitment.
Integrity
We are committed to being
reliable, trustworthy and
dependable.
Safety
We are committed to developing
and stimulating a safe working
culture on board ships and
ashore.
Core values
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 6
A
Offices
9
Men/women ratio
69/31
Staff
149
Nationalities
30
Average age
41
Average years of service
6
OUR PEOPLE
Our company motto “A partner you can trust”
is deeply embedded in everything we do and
the way we act. It is simply the DNA of
Ultrabulk.
With excellence and passion as two of our company
values, it is immensely important to us that we have
a talented and motivated staff. We make sure to
empower our teams to execute the strategy and
focus on continued development, both on
management level, team level and a personal level.
Keeping a healthy work-life balance as well as a
pleasant and inclusive working environment for all
employees is imperative to retain a motivated staff.
In Ultrabulk, we have always believed that our
people are our greatest assets, and this was further
cemented during 2023 with the acknowledgement
of talent diversity as one of our strategic pillars.
We believe the differences are what make us
unique, and we are working actively on creating a
diverse and inclusive company. On a daily basis, this
means that we have 30 nationalities working at our
organisation, thus being cultural intelligent is of the
utmost importance. And we believe this makes us
stronger as a company.
We continue to support our staff in enjoying a
flexible working environment, as we believe the
flexibility promotes productivity, mental health and
a better work-life balance.
Looking to secure a better work-life balance, we are
also trying to support our staff in their respective
life cycles by offering more flexibility where and
when needed.
ULTRABULK AT A GLANCE | PAGE 6
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 7
OUR OFFICES
Ultrabulk had 149 employees by the end of 2023, strategically located in offices in
Cape Town, Copenhagen, Dubai, New York, Rio de Janeiro, Santiago, Singapore,
Sydney and Tokyo.
Alongside our physical offices, we also have employees working remotely from
Shanghai, Indonesia, Brisbane and London.
ULTRABULK AT A GLANCE | PAGE 7
ULTRABULK ANNUAL REPORT 2023
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 8
PART OF A LARGE AND DIVERSIFIED SHIPPING GROUP
Ultrabulk is part of the Ultranav group of shipping
companies. Ultranav is privately owned and has
been active for over six decades, now operating
globally with offices in 19 countries.
Through twelve business units, Ultranav operates
in five market segments: tank, 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,
pusher tugs, barges and pilot boats.
As of 31 December 2023, Ultranav counts 3,771
employees (sea and shore) and operates a fleet of
417 ocean going vessels and tugs.
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 9
2023 HIGHLIGHTS
A very strong year in a normalised
albeit volatile market
The dry bulk market conditions normalised in 2023
with the S10TC Baltic Index ending at an 11,252 USD
per day average on the year. At the same time the
market was extremely volatile during the year due
in part to wars in Ukraine and in Israel/Gaza, the
drought in the Panama Canal and a slower average
speed of the world fleet due to environmental
regulations. Ultrabulk had a very good year,
although lower than the previous two record years.
Total physical ship days in 2023 were 61,575 days,
slightly down from the record 63,208 days in 2022.
Cargo lifted was 54.8 million tons in 2023 similar to
55.1 million tons in 2022.
Spot business and vessel sales drove
the strong result
Our spot business had a very strong year in 2023
performing well beyond expectations, and at the
same time, spot activity increased to a maximum of
60 vessels employed in the trades. In addition to the
strong spot business performance which solidified
the result of the year, we were able to execute on a
number of vessel sales which contributed to the
result positively.
After a strategic realignment of Ultrabulk during
2023 increasing the focus on freight trading as one
of our strategic pillars, we are pleased that the spot
business is performing so well. It is our strategic
objective to keep expanding this part of our
business and continue to improve our capabilities in
the area.
Local acts of war and extreme weather
While being a terrible situation, the ongoing war
between Ukraine and Russia, as well as the war in
Gaza, does not have any direct effects on Ultrabulk.
However, together with the current drought in the
Panama Canal, it does influence global trade flows.
This means increased volatility and huge local
differences in market levels. We believe we have
the right systems and procedures in place to
navigate this uncertainty and keep servicing our
customers in a reliable manner.
Strategic objectives
In addition to the abovementioned strategic focus
on freight trading, Ultrabulk pursues a strategy
founded on three other separate pillars:
Environmental transition
We are committed to making a difference on the
environmental impact of shipping. This entails three
focus areas: Fleet renewal, retrofitting and
optimising the usage of the current fleet.
We have a young fleet compared to the average age
of the world fleet, which enables us to stay ahead of
regulation and be a less CO
2
intensive choice. During
2023 we continued our efforts to renew the fleet
while disposing of older ships.
In addition to the fleet renewal, we are actively
working on retrofitting and upgrading the existing
fleet, including both owned and chartered vessels,
as we believe we can make a difference with the
knowledge we have, even though we do not own
the assets.
We are in continued close dialogue with partners to
construct a series of dual fuel bulk carriers for
delivery in 2026 and 2027. We expect to close these
negotiations during 2024.
Digitalisation
During the past couple of years, we have been
pursuing an aggressive strategy to digitalise the
company. We are pursuing digitalisation
opportunities across the entire company, and we
are pleased to report that the digital focus is already
yielding significant competitive advantages and
efficiency gains.
THE FLEET
ULTRABULK ANNUAL REPORT 2023 ULTRABULK AT A GLANCE | PAGE 10
2023 HIGHLIGHTS
Around 10 percent of our workforce is employed in
the digitalisation of the company, and we envisage
this to further increase in the years to come, taking
due consideration of the optimisation achieved.
Talent diversity
We are actively pursuing an ambition to be truly
diverse in our team. Our ambition on diversity
stretches much beyond gender, so that we will be
an attractive workplace for teammates with
different cultural, age and religious background,
just to name a few. Initiatives include ensuring a
gender balanced pipeline of qualified candidates in
the recruitment process. We have also been able to
offer attractive schemes for people of all ages and
team members living far away without forcing them
to relocate. We are striving towards creating a truly
inclusive culture to the benefit of our employees,
our customers and the company alike.
ULTRABULK ANNUAL REPORT 2023 FINANCIAL REVIEW | PAGE 11
FINANCIAL REVIEW
ULTRABULK ANNUAL REPORT 2023 FINANCIAL REVIEW | PAGE 12
GROUP KEY FIGURES AND RATIOS
INCOME STATEMENT (USD '000)
2023
2022
2021
2020
2019
Revenue
1,481,359
2,143,813
1,762,814
900,043
1,005,634
Gross profit (Net earnings from shipping activities)
176,684
304,018
258,190
141,170
160,669
Operating profit before depreciation, amortization and impairment loss (EBITDA)
139,909
256,870
225,485
120,544
136,738
Operating profit (EBIT)
53,762
179,210
88,621
-2,267
33,305
Net financials
3,261
-6,001
-11,586
-12,104
-16,921
Profit before tax
57,023
172,834
76,660
-14,371
14,795
Net result
53,346
171,595
74,997
-16,257
13,159
STATEMENT OF FINANCIAL POSITION (USD '000)
Non-current assets
203,696
251,859
256,483
379,280
447,914
Current assets
338,406
501,986
374,391
209,383
213,439
Total assets
542,102
753,845
630,874
588,663
661,353
Equity, excl. non-controlling interests
213,911
345,101
200,451
135,322
158,101
Non-controlling interests
-
-
-
-
64
Non-current liabilities
48,093
88,022
126,615
233,826
289,054
Current liabilities
280,098
320,722
303,808
219,515
214,134
Net interest-bearing (liabilities)/assets, including leases
-49,925
60,952
-106,046
-259,581
-281,770
Net interest-bearing (liabilities)/assets, excluding leases
136,366
304,084
134,298
52,163
62,437
Cash and cash equivalents, including restricted cash
136,366
304,084
92,461
76,746
91,932
CASH FLOW (USD '000)
From operating activities
116,355
290,093
206,134
131,797
150,056
From investing activities
21,211
128,243
-33,947
2,444
13,428
- of which relates to investment in tangible assets
-106,656
-64,033
-1,008
-19,481
-26,056
From financing activities
-301,986
-186,415
-182,464
-153,475
-146,259
Total net cash flow
-164,420
231,921
-10,277
-19,234
17,225
Change in restricted cash
-1,216
24,510
-25,992
-4,048
-280
Total net cash flow, excluding changes in restricted cash
-163,204
207,411
15,715
-15,186
17,505
FINANCIAL RATIOS
Gross profit margin (Net earnings from shipping activities margin)
11.9%
14.2%
14.6%
15.7%
16.0%
EBITDA margin
9.4%
12.0%
12.8%
13.4%
13.6%
Return on equity (ROE)
24.9%
49.7%
44.7%
-11.1%
8.7%
Equity ratio
39.5%
45.8%
31.8%
23.0%
23.9%
Physical ship days in the year
61,575
63,208
58,906
50,274
51,521
ULTRABULK ANNUAL REPORT 2023 FINANCIAL REVIEW | PAGE 13
2023 FINANCIAL PERFORMANCE
Results
Revenues amounted to USD 1,481 million, a 31%
decrease from last year’s revenue. The decrease in
revenues is linked to normalised average market
conditions in 2023.
Gross profit was USD 177 million, down from USD
304 million last year, corresponding to a gross
margin of 11.9% against 14.2% in 2022.
EBITDA was USD 140 million (USD 257 million in
2022), corresponding to an EBITDA margin of 9.4%
(12.0% in 2022).
Depreciations amounted to USD 113 million against
USD 114 million in 2022. Depreciations relate
mainly to right-of-use vessels.
Gain from sale of vessels amounted to USD 22
million against USD 36 million in 2022.
Financial items amounted to a net gain of USD 3
million against a net expense of USD 6 million in
2022. Most financial items relate to interest income
and interest expenses on lease liabilities.
Income tax amounted to USD 4 million.
Net result amounted to a profit of USD 53 million,
down from USD 172 million in 2022, which is still
significantly above the expectations set out last
year. The increase in profit is related to positioning
of vessels, solid results from short-term freight
trading activities and gains from sale of vessels.
Cash flow
The cash flow, excluding movements in restricted
cash, was a cash outflow of USD 163 million against
an inflow of USD 207 million last year.
Cash flow from operating activities were an inflow
of USD 116 million (USD 290 million in 2022), mainly
related to cash generated from the shipping
activities.
Cash flow from investing activities were an inflow of
USD 21 million, against an inflow USD 128 million in
2022, driven by sale of vessels.
Cash flow from financing activities were an outflow
of USD 302 million (USD 186 million in 2022) which
comprise of dividends paid to shareholders and
repayment of lease liabilities.
Profit or loss key figures 2023
(USD million)
Development in Free Cash Flow
(USD million)
ULTRABULK ANNUAL REPORT 2023 FINANCIAL REVIEW | PAGE 14
2023 FINANCIAL PERFORMANCE
Balance sheet
Total assets amounted to USD 542 million, against
USD 754 million in 2022.
Non-current assets totalled USD 204 million (USD
252 million in 2022) of which USD 179 million was
Right-of-use assets (USD 230 million in 2022).
Current assets totalled USD 338 million (USD 502
million in 2022). The cash, including restricted cash,
amounted USD 136 million at the end of 2023
against USD 304 million last year.
Total liabilities amounted to USD 328 million
compared to USD 409 million in 2022. The main part
of the liabilities comprised of lease liabilities which
amounted to USD 186 million (USD 243 million at
the end of 2022).
Total equity amounted to USD 214 million (USD 345
million in 2022), driven by paid out dividend of USD
180 million, which were partly offset by total
comprehensive income of USD 49 million.
Return on equity was 24.9% (49.7% in 2022) and
equity ratio was 39.5% at the end of 2023 (45.8% at
the end of 2022).
ULTRABULK ANNUAL REPORT 2023 FINANCIAL REVIEW | PAGE 15
2024 OUTLOOK
Extreme weather and ongoing actions of war
together with environmental legislation set the
scene for increased volatility and changed
trading patterns.
On average, 2023 has been more of a normal
shipping year, when considering the Baltic Index.
However, hidden within this ‘average’ lies huge
fluctuations caused by weather changes, acts of war
and environmental changes along with changes in
demand.
We expect the instability in supply chains across the
world, geopolitical challenges, and extreme
weather to continue in 2024. While we do expect a
commercial result similar to 2023 or slightly higher
on average, we also expect a year that is similarly
unstable in terms of rates with large fluctuations
which we expect to be able to capitalise on and
believe we are prepared for as an organisation.
Despite the strong markets we experienced in 2021
and 2022, we continue to register very limited
contracting of new vessels at the yards. As opposed
to other vessel types, e.g. container vessels, the
investors in dry cargo continue to show significant
discipline in ordering new vessels. The limited
number of new vessels expected to be delivered
from the shipyards over the next five years firmly
keeps the supply side under control and sets the
scene for a sustainable dry bulk market over the
coming years. Apart from that, fleet utilisation is
expected to increase because of environmental
regulations and the world fleet slowing down.
All in all, we expect the supply and demand picture
to remain tight, even without considering a high
increase in demand, which over the year will
provide opportunities for the companies that are
able to execute on the market changes that will
come.
Based on our current coverage and the expected
market conditions, we expect a net result of the
Group and the Parent Company in the range of USD
10-25 million in 2024.
FINANCIAL REVIEW | PAGE 15
ULTRABULK ANNUAL REPORT 2023
ULTRABULK ANNUAL REPORT 2023 OUR BUSINESS | PAGE 16
OUR BUSINESS
ULTRABULK ANNUAL REPORT 2023 OUR BUSINESS | PAGE 17
BUSINESS MODEL
Our business model is based on a long-term
partnership philosophy combined with a short-term
freight trading approach. Customer relationships,
cargo contracts, tonnage procurement and risk
management make up the vital core of the Ultrabulk
business model.
Our team is our most important asset and the
success of Ultrabulk relies on the dedication and the
efforts of our skilled and professional staff. That is
why Ultrabulk pays strong attention to the ongoing
development of the team, both on a professional
and a personal level.
Ultrabulk is committed to continue reducing
emissions and minimising our environmental
footprint. One of the biggest climate challenges for
the global shipping industry is the IMO target to
reduce the overall greenhouse gas emissions (GHG)
by at least 50% by 2050.
OUR BUSINESS | PAGE 17
ULTRABULK ANNUAL REPORT 2023
ULTRABULK ANNUAL REPORT 2023 OUR BUSINESS | PAGE 18
RISK MANAGEMENT
Ultrabulk’s strategic focus is on empowering each
business segment, enabling them to enter new
contracts, to assess risks and to determine the best
way forward in a reliable and efficient manner.
Risk Management is a corner stone in Ultrabulk’s
strategy. Focus is on strict counterpart control both
prior to entering agreements and on an ongoing
basis. The control systems assist in relation to
monitoring developments and ensuring risk is
constrained at acceptable pre-defined levels, which
are duly aligned with our strategy and
proportionate with our financial strength.
A set of policies are applied to ensure each segment
operates within the guidelines. This includes the use
of a Value at Risk (VaR) approach to measure and
control the level of risk.
Our strategic focus on digitalisation is expected to
further improve the reliability in measuring the risks
in the operation.
The following pages include a review of those risks
that are considered material to Ultrabulk.
Reference is also made to note 5.3 for a review of
financial risks to which Ultrabulk is exposed through
its shipping activities.
OUR BUSINESS | PAGE 18
ULTRABULK ANNUAL REPORT 2023
ULTRABULK ANNUAL REPORT 2023 OUR BUSINESS | PAGE 19
RISK MANAGEMENT
Freight rates
The business model for an operator is to build a
portfolio of vessels on one hand and a portfolio of
cargoes on the other. Depending on the market
expectations the company can decide to be long on
cargoes (typically when expecting a decrease in
freight rates) or long on vessels (typically when
expecting an increase in freight rates).
Unexpected fluctuations in freight rates are the key
factor affecting cash flows and the value of
committed assets. The level of risk depends firstly
on the level of such unexpected fluctuations and
secondly on the size of the imbalance between the
commitments on cargoes and commitments on
vessels.
The Group utilises risk management systems to
control the market value of all open positions.
Based on these risk systems, the Group can monitor
market positions daily and utilize Forward freight
agreements (FFAs) as a hedging instrument to
reduce exposure from an imbalanced portfolio.
Counterparty risk
Just as fluctuations in freight rates can cause an
imbalance in the Group’s portfolio of vessels and
cargos (“the book”), such imbalance can also arise if
a counterparty is not able or willing to perform its
obligations, for example due to the counterparty’s
solvency or liquidity. This is referred to as the
counterparty risk and does typically arise in relation
to:
• Contracts of Affreightment (cargo contract
containing multiple cargoes, or “COA”)
• Time charter of vessels
The counterparty risk attached to COAs is highly
dependent on a counterparty’s solvency and its
ability and willingness to fulfil their obligations since
a COA is a commitment over a longer period.
Typically, our counterparties operate within the
commodities industry. Since we keep a balanced
book, our risk is usually related to vessels expected
to perform the COA, which is then exposed to the
market instead.
The counterparty risk attached to time charters
both when we take a vessel on time charter from an
owner and when we send out a vessel on time
charter to a charterer is that the counterparty may
default and, as a result, the contract terminates
early, which again can add to the imbalance of the
book. The other risk is that counterparties who
might have claims against the TC charterer or the
Owner of the vessel, might turn their claim towards
Ultrabulk, if the TC charterer or owner defaults.
The risk profile of counterparties is determined by
the counterparty’s solvency and the type of legal
contract upon which the deal is based.
Counterparty vetting is a significant part of the
Group’s risk management procedures.
Consequently, approvals of counterparties are
carried out at senior management level only, and
the risk evaluation involves the following elements:
• Positive credit rating report from a based
maritime credit rating bureau.
• Positive industry references.
• Satisfactory performance on existing
commitments, if any, between Ultrabulk
and the counterpart.
• Positive reference from the fuel purchase
market.
• Approval of counterparties may vary from
one cargo to multiple year contracts.
• Sanction risks, which are explain further
down below.
Single cargo contracts are typically not exposed to a
significant counterparty risk as it is industry
standard that freight payment is made within very
few days of departing from the loading port. It is
also an industry standard that the vessel owner has
a lien in the cargo, should the freight payment not
have been paid prior to the arrival at the discharge
port. The counterparty risk on these types of deals
is therefore limited.
ULTRABULK ANNUAL REPORT 2023 OUR BUSINESS | PAGE 20
RISK MANAGEMENT
IT & cyber security risks
IT & cyber security is important because it protects
all categories of data from theft and damage. This
includes sensitive data, personal data and
information systems. Both inherent risk and
residual risk are increasing in this area, driven by
global connectivity and usage of cloud services to
store sensitive data and personal information. Due
to this, the Group is no longer able to rely solely on
out-of-the-box cybersecurity solutions like antivirus
software and firewalls. It is important to cover all
fields of cybersecurity to stay well-protected as
cyber threats may arise from any level of the
organisation.
To mitigate these increasing risks, the Group is
conducting awareness training on all organisational
levels. Additionally, the Group is continuously
assessing user access and sign-in patterns to reduce
user risk and system vulnerability. To keep the
platforms and data available to our users at all
times, without compromising IT security, the Group
has migrated all on-premise data to the cloud and
centralised identity governance for all systems.
Furthermore, all data centers are outsourced to
specialised service providers who monitor traffic
and backs up data on daily basis. All internal IT
systems are running in an outsourced mirrored
environment which allows for quick data and
system restoration in accordance with our Disaster
Recovery Plan.
Sanction risk
Ultrabulk conducts business worldwide and is
committed to obeying all applicable economic
sanctions and trade control laws, rules and
regulations, including identifying, managing and
minimising risks of violation.
To mitigate risk related to sanctions compliance
Ultrabulk implemented a full set of sanctions
compliance procedures, including automated post
fixture sanctions screening of counterparts and
vessels together with sanctions awareness training.
Fuel prices
Some Contracts of Affreightment (cargo contracts
containing multiple cargoes, or “COA”) and single
cargoes, are based on fixed freight rates which
expose the Company to fluctuations on fuel prices.
The Group seeks to reduce the exposure on
fluctuating fuel prices through compensation
clauses in contracts with clients. Where this is not
possible, Ultrabulk uses hedging derivatives to
reduce bunker exposure.
Piracy
According to the International Maritime Bureau
(IMB), there were 65 incidents of piracy and armed
robbery against ships in the first half of 2023, an
increase from 58 incidents for the same period in
2022. Of the 65 incidents reported, 57 vessels were
boarded, four had attempted attacks, two were
hijacked and two were fired upon.
The Gulf of Guinea accounted for the majority of
piracy and armed robbery incidents in the first half
of 2023, with 47 incidents reported. This represents
a significant increase from the 25 incidents reported
in the same period in 2022. The IMB expressed
concern over the resurgence of piracy in the Gulf of
Guinea, noting that the region remains the most
dangerous maritime region in the world. The IMB
also noted an increase in piracy and armed robbery
incidents in the Singapore Straits, with 10 incidents
reported in the first half of 2023, compared to three
incidents for the same period in 2022. The IMB
attributed this increase to the growing volume of
shipping traffic in the Singapore Straits.
Ultrabulk is following the guidelines made by the
UN subsidiary International Maritime Organisation
(IMO), the leading hull underwriters, and we adhere
to Best Management Practices produced and
supported by industry organisations.
ULTRABULK ANNUAL REPORT 2023 OUR BUSINESS | PAGE 21
SUSTAINABILITY IN ULTRANAV
The Ultranav group of shipping companies is
dedicated to showing environmental leadership
and exceed the mandatory targets set by IMO,
and this is supported by Ultrabulk – highlighted
by the fact that one of our stratigic pillars are
environment. Every ton counts.
Ultranav is committed to achieving a 50% carbon
intensity reduction in emissions by 2030. 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. Ultranav is not
just aiming to meet regulations but to lead the
maritime industry towards a more sustainable and
decarbonized future.
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 having 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:
ultrabulk.com/sustainability >>
ULTRABULK ANNUAL REPORT 2023 OUR BUSINESS | PAGE 22
CORPORATE GOVERNANCE
Corporate governance principles
The Board of Directors and Executive Management
of Ultrabulk are convinced that efficient and clear
division of responsibilities as well as transparent
decision-making processes are prerequisites of a
Company’s long-term value creation. Ultrabulk
therefore reviews at least annually the Company’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
Company’s strategy, organisation, business
processes, risks, control mechanisms and relations
with its shareholders, customers, employees and
other stakeholders.
Data ethics
In Ultrabulk, we use and process data with the
overall purpose of creating value for our customers,
partners, employees and society.
Ultrabulk only does business with B2B customers
and therefore, to a limited extend, collects and
processes sensitive data. Ultrabulk 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, which the
Ultrabulk Group adhere to, 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.
Our stakeholders, be they employees, customers,
suppliers, the community or the competition, are
invited to raise their doubts and/or make
whistleblowing reports on the activities undertaken
by our organisation.
All information reported are treated in a
confidential manner. The Ultranav Ethical
Committee will critically evaluate all incoming
reports and address issues according to our
principles.
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 2023,
unchanged from 2022. In 2024, likewise, the
members of the Board of Directors intend to refrain
from receiving any compensation for their work. If
Ultrabulk’s activities require a temporary, but
extraordinary workload by the Board, a fee may be
authorised. The members of the Board receive no
incentive pay for their work on the Board.
Executive Management
The members of the Executive Management are
employed under an executive service contract, and
all terms are fixed by the Board of Directors based
on the guidelines approved by the general meeting.
Members of Executive Management receive a
competitive remuneration package consisting of a
fixed salary, benefits such as company car and
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 2023 OUR BUSINESS | PAGE 23
CORPORATE GOVERNANCE
Gender composition
Statement on gender composition in management,
cf Danish Financial statements Act 99 b
According to the requirements in Danish Financial
Statement Act § 99b, the parent company Ultrabulk
A/S must report on gender composition in the
management. Ultrabulk applies a policy stating that
gender composition of management shall reflect
the gender balance of society as a whole – with due
regard to the specific conditions in the shipping
business.
Gender composition of management team
The management team of the parent company,
Ultrabulk A/S comprise of 15 people at the end of
2023, of which 3 are female (20%). The aim is to
increase female representation to 25% by the end
of 2027 which is also described in our gender
balance policy. The aim is based on a strong
retention rate in Ultrabulk A/S, thus reducing the
opportunity to make changes in the gender
composition, and the fact that the industry as a
whole continues to be challenged by a lack of
female representation.
When reviewing the numbers regarding
recruitments in 2023, the tendency was clear; more
than 65% of new hires have been women which will
help ensure a pipeline of more diversified staff. Our
perspective is that female representation in
management is built up over time by generally
increasing the female representation in the parent
company. When it comes to both attracting and
retaining women in Ultrabulk A/S, it is a topic that is
discussed in Executive management as well as in the
wider management team and the Work
Environment Committee to collectively address the
issue.
Gender composition of Board of Directors
The Board of Directors comprises of four male
members at the end of 2023. The aim will be to
appoint at least one female member within four
years from setting this ambition, which is by the end
of 2027, thus increasing female representation from
0% to 25%. It has proven difficult to meet the
previous target of appointing a female member to
the board, and as mentioned, the female
representation in the shipping industry is a
challenge that also Ultrabulk faces. Owing to this
challenge, and because there had been no rotation
among board members during the year, no specific
activities were initiated to increase the female
representation among the pool of possible
candidates, apart from those mentioned in relation
to other management levels and our part in
initiatives through Danish Shipping which aims at
increasing the female representation in industry as
a whole.
2023
Members of Board of Directors
4
Current number of female members
0%
Target of female members by 2027
25%
Members of Management team
(A)
15
Current share of female members
(A)
20%
Target share by 2027
(A)
25%
A) In parent company “Ultrabulk A/S”, cf Danish Company Act 139 c.
ULTRABULK ANNUAL REPORT 2021 ACCOUNTS AND PERFORMANCE | PAGE 24
SIGNATURES
ULTRABULK ANNUAL REPORT 2023 SIGNATURES | PAGE 25
STATEMENT BY THE BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT
The Board of Directors and the Executive
Management have today considered and adopted
the Annual Report of Ultrabulk A/S for the financial
year 1 January – 31 December 2023.
The Consolidated Financial Statements have been
prepared in accordance with IFRS Accounting
Standards as adopted by the EU and further
requirements in the Danish Financial Statements
Act, and the Parent Company Financial Statements
have been prepared in accordance with the Danish
Financial Statements Act. Management’s Review
has been prepared in accordance with the Danish
Financial Statements Act.
In our opinion, the Consolidated Financial
Statements and the Parent Company Financial
Statements give a true and fair view of the financial
position at 31 December 2023 of the Group and the
Parent Company and of the results of the Group and
Parent Company operations and consolidated cash
flows for the financial year 1 January - 31 December
2023.
In our opinion, Management’s Review includes a
true and fair account of the development in the
operations and financial circumstances of the Group
and the Parent Company, of the results for the year
and of the financial position of the Group and the
Parent Company as well as a description of the most
significant risks and elements of uncertainty facing
the Group and the Parent Company.
We recommend that the Annual Report be adopted
at the annual general meeting.
Gentofte, 1 March 2024
EXECUTIVE MANAGEMENT
Hans-Christian Olesen
Chief Executive Officer
BOARD OF DIRECTORS
Oskar Fabricius
Chief Financial Officer
Klaus Munk Andersen
Executive Member
Per von Appen
Chairman
Peter Stokes
Board Member
Jan Vermeij
Board Member
Enrique Ide
Board Member
ULTRABULK ANNUAL REPORT 2023 SIGNATURES | PAGE 26
INDEPENDENT AUDITOR’S REPORT
To the shareholders of Ultrabulk A/S
Opinion
In our opinion, the Consolidated Financial
Statements give a true and fair view of the Group’s
financial position at 31 December 2023 and of the
results of the Group’s operations and cash flows for
the financial year 1 January to 31 December 2023 in
accordance with IFRS Accounting Standards as
adopted by the EU and further requirements in the
Danish Financial Statements Act.
Moreover, in our opinion, the Parent Company
Financial Statements give a true and fair view of the
Parent Company’s financial position at 31
December 2023 and of the results of the Parent
Company’s operations for the financial year 1
January to 31 December 2023 in accordance with
the Danish Financial Statements Act.
We have audited the Consolidated Financial
Statements and the Parent Company Financial
Statements of Ultrabulk A/S for the financial year
1 January - 31 December 2023, which comprise
income statement, balance sheet, statement of
changes in equity and notes, including a summary
of significant accounting policies, for both the
Group and the Parent Company, as well as
statement of comprehensive income and cash flow
statement for the Group (“financial statements”).
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark. Our
responsibilities under those standards and
requirements are further described in the Auditor’s
Responsibilities for the Audit of the Financial
Statements section of our report. We are
independent of the Group in accordance with the
International Ethics Standards Board for
Accountants’ International Code of Ethics for
Professional Accountants (IESBA Code) and the
additional ethical requirements applicable in
Denmark, and we have fulfilled our other ethical
responsibilities in accordance with these
requirements and the IESBA Code. We believe that
the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Statement on the Management’s
review
Management is responsible for Management’s
Review.
Our opinion on the financial statements does not
cover Management’s Review, and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial
statements, our responsibility is to read
Management’s Review and, in doing so, consider
whether Management’s Review is materially
inconsistent with the financial statements or our
knowledge obtained during the audit, or otherwise
appears to be materially misstated.
Moreover, it is our responsibility to consider
whether Management’s Review provides the
information required under the Danish Financials
Statements Act.
Based on the work we have performed, in our view,
Management’s Review is in accordance with the
Consolidated Financial Statements and the Parent
Company Financial Statements and has been
prepared in accordance with the requirements of
the Danish Financial Statement Act. We did not
identify any material misstatement in
Management’s Review.
ULTRABULK ANNUAL REPORT 2023 SIGNATURES | PAGE 27
INDEPENDENT AUDITOR’S REPORT
Management's responsibilities for the
financial statements
Management is responsible for the preparation of
Consolidated Financial Statements that give a true
and fair view in accordance with IFRS Accounting
Standards as adopted by the EU and further
requirements in the Danish Financial Statements
Act and for the preparation of Parent Company
Financial Statements that give a true and fair view
in accordance with the Danish Financial Statements
Act, and for such internal control as Management
determines is necessary to enable the preparation
of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, Management
is responsible for assessing the Group’s and the
Parent Company’s ability to continue as a going
concern, disclosing, as applicable, matters related
to going concern and using the going concern basis
of accounting in preparing the financial statements
unless Management either intends to liquidate the
Group or the Parent Company or to cease
operations, or has no realistic alternative but to do
so.
Auditor's responsibilities for the audit
of the financial statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs and the
additional requirements applicable in Denmark will
always detect a material misstatement when it
exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit conducted in accordance with
ISAs and the additional requirements applicable in
Denmark, we exercise professional judgment and
maintain professional scepticism throughout the
audit. We also:
► Identify and assess the risks of material
misstatement of the financial statements,
whether due to fraud or error, design and
perform audit procedures responsive to those
risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher
than for one resulting from error as fraud may
involve collusion, forgery, intentional
omissions, misrepresentations, or the override
of internal control.
► Obtain an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of
the Group’s and the Parent Company’s internal
control.
► Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by Management.
ULTRABULK ANNUAL REPORT 2023 SIGNATURES | PAGE 28
INDEPENDENT AUDITOR’S REPORT
► Conclude on the appropriateness of
Management’s use of the going concern basis
of accounting in preparing the financial
statements and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the Group’s and the Parent
Company’s ability to continue as a going
concern. If we conclude that a material
uncertainty exists, we are required to draw
attention in our auditor’s report to the related
disclosures in the financial statements or, if
such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our
auditor’s report. However, future events or
conditions may cause the Group and the Parent
Company to cease to continue as a going
concern.
► Evaluate the overall presentation, structure
and contents of the financial statements,
including the disclosures, and whether the
financial statements represent the underlying
transactions and events in a manner that gives
a true and fair view.
► Obtain sufficient appropriate audit evidence
regarding the financial information of the
entities or business activities within the Group
to express an opinion on the Consolidated
Financial Statements. We are responsible for
the direction, supervision and performance of
the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and
significant audit findings, including any significant
deficiencies in internal control that we identify
during our audit.
Hellerup, 1 March 2024
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no. 33 77 12 31
Søren Ørjan Jensen
State Authorised Public Accountant
mne33226
Jacob Brinch
State Authorised Public Accountant
mne35447
ULTRABULK ANNUAL REPORT 2023 SIGNATURES | PAGE 29
CONSOLIDATED FINANCIAL STATEMENTS
ULTRABULK ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 30
CONSOLIDATED INCOME STATEMENT
PROFIT OR LOSS
1 JANUARY – 31 DECEMBER
USD thousands
Note
2023
2022
Revenue
2.1
1,481,359
2,143,813
Vessel operating costs and voyage related expenses
2.2
-1,304,596
-1,839,795
Gross profit (Net earnings from shipping activities)
176,684
304,018
Other income
795
2,224
Other external expenses
6.2
-9,709
-7,805
Staff costs
2.3
-27,861
-41,567
Operating profit before depreciation (EBITDA)
139,909
256,870
Depreciations
3.3
-112,861
-113,507
Gain/(loss) from sale of vessels, net
21,819
35,548
Share of Joint Ventures’ profit after tax
3.5
4,895
299
Operating profit (EBIT)
53,762
179,210
Share of associates’ profit after tax
3.4
-
-375
Financial income
5.1
9,954
3,142
Financial expenses
5.1
-6,693
-9,143
Profit before tax
57,023
172,834
Tax
2.4
-3,677
-1,239
Net result
53,346
171,595
STATEMENT OF OTHER COMPREHENVISE INCOME
1 JANUARY – 31 DECEMBER
USD thousands
Note
2023
2022
Net result
53,346
171,595
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)
5.5
-4,536
18,055
Other comprehensive income, net of tax
-4,536
18,055
Total comprehensive income
48,810
189,650
ULTRABULK ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 31
CONSOLIDATED BALANCE SHEET
ASSETS
USD thousands
Note
2023
2022
Right-of-use assets
3.1
179,129
230,017
Fixtures, fittings, and equipment
3.1
570
1,327
Tangible assets
3.1
179,699
231,344
Investments in associates
3.4
-
-
Investments in Joint Ventures
3.5
20,708
18,537
Derivative financial instruments
5.5
2,982
1,712
Deposits
307
266
Financial assets, non-current
23,997
20,515
Total non-current assets
203,696
251,859
Inventories
4.2
35,990
38,155
Trade and other receivables
4.1
114,391
117,568
Receivables from related companies
4.1
829
3,098
Prepayments
4.1
34,270
36,162
Derivative financial instruments
5.5
16,560
2,478
Income tax receivables
-
441
Cash and cash equivalents, including restricted cash
4.3
136,369
304,084
Total current assets
338,409
501,986
Total assets
542,105
753,845
LIABILITIES
USD thousands
Note
2023
2022
Share capital
6.8
5,134
5,134
Retained earnings
171,856
183,510
Other reserves
1,921
6,457
Proposed dividend
35,000
150,000
Total Equity
213,911
345,101
Lease liabilities
5.2
44,567
87,376
Derivative financial instruments
5.5
3,526
646
Total non-current liabilities
48,093
88,022
Trade and other payables
4.4
121,753
161,450
Payables to related companies
4.4
2,090
2,450
Lease liabilities
5.2
141,724
155,756
Derivative financial instruments
5.5
10,784
1,066
Income tax payable
3,750
-
Total current liabilities
280,101
320,722
Total liabilities
328,194
408,744
Total equity and liabilities
542,105
753,845
ULTRABULK ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 32
CONSOLIDATED STATEMENT OF CASH FLOWS
Amount in USD thousands
Note
2023
2022
Profit/(loss) before tax
57,023
172,833
Instalments received from sub-lease receivables
-
12,466
Tax effect
515
-3,412
Adjustment of other non-cash operating items
6.4
88,021
85,470
Change in working capital
6.5
-31,894
22,736
Net cash flows from operating activities
113,665
290,093
Investments in tangible assets
-106,656
-64,033
Sale of tangible assets
129,083
115,801
Loans to related companies
-
51,965
Dividend received
2,724
-
Change in restricted cash
4.3
-1,216
24,510
Net cash flow from investing activities
23,935
128,243
Free cash flow
137,600
418,336
Dividends paid to equity holders
-180,000
-45,000
Repayment of loans
6.6
-
-9,951
Interest payments on loans
-
-66
Other cash flow related to loans
-
97
Repayment of lease liabilities
6.6
-115,520
-123,283
Interest payments on lease liabilities
-6,498
-8,212
Net cash flows from financing activities
-302,018
-186,415
Net change in cash and cash equivalents
-164,418
231,921
Cash and cash equivalents at 1 January
297,474
61,340
Net change in cash and cash equivalents
-164,418
231,921
Revaluation of cash deposits in foreign currencies
-4,513
4,213
Cash and cash equivalents at 31 December
128,543
297,474
Restricted cash
4.3
7,826
6,610
Cash and cash equivalents
128,543
297,474
Cash and cash equivalents incl. restricted cash at 31 December
136,369
304,084
ULTRABULK ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 33
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
USD thousands
Share capital
Cash flow
hedge reserve
Proposed dividends
Retained earnings
Equity
Equity as 1 January 2023
5,134
6,457
150,000
183,510
345,101
Distribution of net result
35,000
18,346
53,346
Derivatives designated as cash flow hedges
-22
-22
Other cash flow hedges
-4,514
-4,514
Other comprehensive income for the year
-4,536
-4,536
Total comprehensive income for the year
-4,536
35,000
18,346
48,810
Additional ordinary dividend*
30,000
-30,000
-
Distributed dividend
-180,000
-180,000
Transactions with shareholders
-150,000
-30,000
-180,000
Equity as 31 December 2023
5,134
1,921
35,000
171,856
213,911
Equity as 1 January 2022
5,134
-11,598
45,000
161,915
200,451
Distribution of net result
150,000
21,595
171,595
Cash flow hedge
13,842
13,842
Other cash flow hedges
4,213
4,213
Other comprehensive income for the year
18,055
18,055
Total comprehensive income for the year
-
18,055
150,000
21,595
189,650
Distributed dividend
-45,000
-45,000
Transactions with shareholders
-45,000
-45,000
Equity as 31 December 2022
5,134
6,457
150,000
183,510
345,101
*The Board of Directors, in conjunction with the General Meeting held on March 14, 2023, approved the additional ordinary dividend.
ULTRABULK ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SECTION 1: BASIS OF PREPARATION ............................................................... 35
1.1 Basis of reporting ....................................................................................... 36
1.2 Significant accounting judgments and estimates ....................................... 39
SECTION 2: PROFIT OR LOSS ........................................................................... 40
2.1 Revenues .................................................................................................... 41
2.2 Vessel operating costs and voyage related expenses ................................ 42
2.3 Staff costs ................................................................................................... 42
2.4 Tax .............................................................................................................. 43
SECTION 3: INVESTED CAPITAL ....................................................................... 44
3.1 Tangible assets & right-of-use assets ......................................................... 45
3.2 Depreciations ............................................................................................. 49
3.3 Investments in associates ........................................................................... 49
3.4 Investments in joint ventures ..................................................................... 50
SECTION 4: WORKING CAPITAL ....................................................................... 51
4.1 Receivables and prepayments .................................................................... 52
4.2 Inventories ................................................................................................. 53
4.3 Restricted cash ........................................................................................... 53
4.4 Trade and other payables ........................................................................... 54
SECTION 5: CAPITAL STRUCTURE .................................................................... 55
5.1 Financial items ............................................................................................ 56
5.2 Lease liabilities ............................................................................................ 57
5.3 Risks arising from financial instruments ..................................................... 59
5.4 Financial instruments by category .............................................................. 60
5.5 Derivative financial instruments ................................................................. 62
SECTION 6: OTHER NOTES .............................................................................. 67
6.1 Remuneration of management .................................................................. 68
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
NOTES | PAGE 34
ULTRABULK ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 35
SECTION 1: BASIS OF PREPARATION
1.1 Basis of reporting
1.2 Significant accounting judgements and estimates
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 36
1.1 BASIS OF REPORTING
§ GENERAL ACCOUNTING POLICIES
Ultrabulk A/S is a company domiciled in Denmark.
The Consolidated Financial Statements of Ultrabulk A/S for 2023 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 2023 was 674.47 (2022:
694.73) and the average DKK/USD applied for the year was 689,28 (2022: 707.82).
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. The Group intends to adopt these new and amended standards
and interpretations, if applicable, when they become effective. Management does not
anticipate any significant impact on future periods from the adoption of these new
amendments.
Basis of consolidation
The Consolidated Financial Statements comprise the Parent Company Ultrabulk A/S and
subsidiaries in which Ultrabulk A/S 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 Ultrabulk A/S exercises control or significant influence, potential
voting rights which are exercisable at the balance sheet date are taken into account.
Common control transactions are accounted for using the pooling-of-interest method. The
receiving company of the net assets initially recognizes the assets and liabilities transferred
at their carrying amount.
The result of operations for the period in which the transfer occurs is presented as though
the transfer had occurred at the beginning of the period. Financial statements and financial
information for prior years are restated to provide appropriate comparative information.
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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 37
1.1 BASIS OF REPORTING (CONTINUED)
§ GENERAL ACCOUNTING POLICIES
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.
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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 38
1.1 BASIS OF REPORTING (CONTINUED)
§ GENERAL ACCOUNTING POLICIES
Statement of Cash Flows (continued)
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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 39
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 CGUs for right-of-use vessels (note 3.1)
Significant estimates
Management has made the following estimates which are considered to be significant to
the Consolidated Financial Statements:
Assessing indicators of impairment of right-of-use vessels (note 3.1)
Measurement of non-lease components (note 5.2)
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 40
SECTION 2: PROFIT OR LOSS
2.1 Revenues
2.2 Vessel operating costs and voyage related expenses
2.3 Staff costs
2.4 Tax
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 41
2.1 REVENUES
§ ACCOUNTING POLICIES
Revenue
Revenues from freight and time-charter are recognised as the services are rendered based
the percentage of completion method. According to the method, revenues are recognised
over the period from loading the vessel in the first load port to the vessel’s departure from
the last discharge port (Load to Discharge). Demurrage is included if a claim is considered
probable. Losses arising from freight or time-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
Revenues from contracts with customers are disaggregated by type of vessel and type of
contracts with customers.
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
2023
2022
Income from freight
1,266,845
1,681,940
Income from time-charter
214,514
461,873
Revenue by type of contract
1,481,359
2,143,813
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 42
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 bases 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 5.2 Lease
liabilities.
USD thousands
2023
2022
Bunkers
-352,106
-422,128
Other voyage related expenses
-296,903
-267,838
Voyage related expenses
-649,009
-689,966
Time-Charter hire, short-term leases
-579,165
-1,077,326
Operating expenses, long-term leases (non-lease
component)
-75,708
-72,267
Other
-714
-236
Time-Charter hire and operating expenses
-655,587
-1,149,829
Vessel operating costs and voyage related expenses
-1,304,596
-1,839,795
2.3 STAFF COSTS
§ ACCOUNTING POLICIES
Staff costs comprise wages and salaries, including incentives, to onshore employees.
USD thousands
2023
2022
Wages and salaries
-26,170
-39,772
Pensions – defined contribution plans
-1,166
-1,298
Other staff costs
-604
-497
Staff costs
-27,940
-41,567
Average number of employees
155
143
Remuneration of certain employees, who are remunerated by related companies, are
expensed as management fee, and consequently recognised as “Other external expenses”.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 43
2.4 TAX
§ ACCOUNTING POLICIES
Taxes
Ultrabulk A/S is jointly taxed with Ultranav International ApS (Parent Company) and the
Parent Company is the administration company for the jointly taxed companies. The
current Danish corporation tax is allocated between the jointly taxed companies in
proportion to their taxable income. In relation to the shipping activities, Ultrabulk A/S
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
2023
2022
Current tax on profit for the year
-3,703
-1,357
Tax on profit for the year
-3,703
-1,357
Adjustments related to previous years – current tax
26
118
Tax in the income statement
-3,677
-1,239
Computation of effective tax rate (%):
Statutory corporate income tax in Denmark
22.0%
22.0%
Effects from Tonnage Tax Scheme
-14.7%
-18.0%
Effects of adjustments related to prior years
0.0%
-0.1%
Deviation in foreign subsidiaries’ tax rates compared to the
Danish tax rate (net)
-0.2%
-3.3%
Effective tax rate
7.1%
0.6%
§ ACCOUNTING POLICIES (CONTINUED)
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 is 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 will come into effect from 1 January 2024. Since the Pillar Two
legislation was not effective at the reporting date, the Group has no related current tax
exposure. The Group applies the exception to recognising and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the
amendments to IAS 12 issued in May 2023.
Under the legislation, 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. However, although the
average effective tax rate is below 15%, the Group will not be exposed to paying a significant
Pillar Two income tax, as income from international shipping is carried out from the
calculation of top-up tax.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 44
SECTION 3: INVESTED CAPITAL
3.1 Tangible assets & right-of-use assets
3.2 Depreciations
3.3 Investments in associates
3.4 Investments in joint ventures
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 45
3.1 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:
• Fixtures, fittings and equipment: 2 - 10 years
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.
Ultrabulk 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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 46
3.1 TANGIBLE 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.
Impairment is reversed only to the extent of changes in the assumptions and judgements
underlying the impairment calculation. Impairment is only reversed to the extent that the
asset's increased carrying amount does not exceed the carrying amount that would have
been determined (net of amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.
! ACCOUNTING JUDGEMENTS
DERTERMINING CGU
Management’s assessment of indicators of impairment on right-of-use assets (vessels) 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 entire fleet of dry bulk vessels (owned and leased)
constitutes a cash generating unit, as the vessels are managed on a portfolio basis and
considered to be interchangeable. Further, the vessels owned by Ultra Summit (joint
venture) are too included in the CGU.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 47
3.1 TANGIBLE ASSETS (CONTINUED)
! ACCOUNTING ESTIMATES
ASSESSING INDICATORS 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.
Near future climate-related risks are mainly affecting the freight rates of a vessel, as they depend on the performance of the vessel. This was taken into consideration when determining the
freight and time charter rates. Long-term climate-related risks has not been regarded as a significant factor in the impairment test as the majority of operated vessels are chartered and such
risks remain with the owners of the vessels. Further, compared to global bulk fleet, the Ultrabulk fleet is young and modern
From a historical perspective, the market has generally remained strong in 2023, 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.
Macro-economic and 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, development in inflation rates and the slowing economic growth.
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. 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. No indications of need for impairments were identified.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 48
3.1 TANGIBLE ASSETS (CONTINUED)
2023
USD thousands
Fixtures,
fittings and
equipment
Right-of-use
assets
Total
Costs as of 1 January, accumulated
4,050
646,293
650,343
Additions
494
99,624
100,118
Disposals
-33
-211,318
-211,351
Remeasurements
-
12,177
12,177
Cost at 31 December, accumulated
4,511
546,776
551,287
Depreciation and impairments at
1 January, accumulated
-2,723
-416,276
-418,999
Depreciation
-1,245
-111,616
-112,861
Depreciation on disposals
27
160,245
160,272
Depreciation and impairment at 31
December, accumulated
-3,941
-367,647
-371,588
Carrying amount 31 December
570
179,129
179,699
2022
USD thousands
Fixtures,
fittings and
equipment
Right-of-use
assets
Total
Costs as of 1 January, accumulated
6,932
641,944
648,876
Additions
1,472
149,142
150,614
Disposals
-4,354
-128,894
-133,248
Remeasurements
-
-15,899
-15,899
Cost at 31 December, accumulated
4,050
646,293
650,343
Depreciation and impairments at
1 January, accumulated
-5,973
-413,264
-419,235
Depreciation
-1,104
-112,403
-113,507
Depreciation on disposals
4,354
109,389
113,743
Depreciation and impairment at 31
December, accumulated
-2,723
-416,276
-418,999
Carrying amount 31 December
1,327
230,017
231,344
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 49
3.2 DEPRECIATIONS
§ ACCOUNTING POLICIES
For accounting policies related to depreciations, reference is made to note 3.1 Tangible
assets.
USD thousands
2023
2022
Depreciations on right-of-use assets
-111,616
-112,403
Depreciations on fixture, fittings, and equipment
-1,245
-1,104
Depreciations
-112,861
113,507
3.3 INVESTMENTS IN ASSOCIATES
§ 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.
USD thousands
2023
2022
Cost at 1 January
1,408
1,408
Cost at 31 December
-
1,408
Value adjustment at 1 January, accumulated
-1,408
-1,033
Impairment
-
-375
Share of the result for the year
-
-
Value adjustment at 31 December, accumulated
-
-1,408
Carrying amount at 31 December
-
-
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 50
3.4 INVESTMENTS IN JOINT VENTURES
§ ACCOUNTING POLICIES
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. 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.
USD thousands
2023
2022
Cost at 1 January
23,825
23,825
Cost at 31 December
23,825
23,825
Value adjustment at 1 January, accumulated
-5,288
-5,586
Distributed dividend
-2,724
-
Share of the result for the year
4,895
298
Value adjustment at 31 December, accumulated
-3,117
-5,288
Carrying amount at 31 December
20,708
18,537
The carrying amount can be specified as follows:
Ultra Summit (Singapore) Pte., Ltd, 50%
20,708
18,537
Key figures for the investment in Joint Ventures (100% basis):
Assets
70,896
71,760
Liabilities
29,479
-34,686
Net assets
41,417
37,074
Revenues
14,463
22,085
Profit/loss for the year
9,790
598
Total comprehensive income for the year
9,790
598
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 51
SECTION 4: WORKING CAPITAL
4.1 RECEIVABLES AND PREPAYMENTS
4.2 INVENTORIES
4.3 RESTRICTED CASH
4.4 TRADE AND OTHER PAYABLES
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 52
4.1 RECEIVABLES AND PREPAYMENTS
§ ACCOUNTING POLICIES
Receivables
Receivables are measured at amortised cost less provisions for impairment losses.
Ultrabulk 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 Ultrabulk’s payment terms as well as management of credit risk,
reference is made to note 5.3 Financial risks.
Contract assets
Contract assets includes 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.
USD thousands
2023
2022
Customers (trade receivables)
55,879
53,277
Contract assets
31,244
27,344
Other receivables
27,268
36,947
Trade and other receivables
114,391
117,568
Receivables from related companies
829
3,098
Receivables from related companies
829
3,098
Prepayments
34,270
36,162
Prepayments
34,270
36,162
Trade and other receivables, prepayments, loans to related
companies and receivables from related companies
149,490
156,828
Maturity analysis for trade receivables:
- Receivables not due
25,543
19,247
- Less than 90 days
28,409
33,867
- Between 91 days and 180 days
3,249
4,216
- Between 181 days and 360 days
1,329
3,665
- More than 360 days
2,665
1,010
Carrying amount of trade receivables excluding provisions
61,195
62,005
Provisions at 31 December
-5,316
-8,728
Carrying amount of trade receivables
55,879
53,277
Change in provision for trade receivables:
Provision at 1 January
8,728
6,071
Net change in provision
-3,412
2,657
Provision 31 December
5,316
8,728
Trade receivables are non-interest bearing and are generally fall due within 5 – 30 days.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 53
4.2 INVENTORIES
§ ACCOUNTING POLICIES
Inventories comprise of bunkers and are valued at the lower of cost and net realisable value.
Cost is determined on a first-in, first-out (FIFO) basis. Net realisable value is the estimated
selling price in the ordinary course of business, less applicable variable selling expense.
Costs of bunkers include the transfer from equity to profit and loss on qualifying cash flow
hedges.
USD thousands
2023
2022
Bunkers
35,990
38,155
Bunker expenses recognised in the profit or loss
352,106
422,128
A part of the future bunker consumption has been hedged through derivaives in accordance
with the Group’s risk management policy. This is further described in note 5.3 Financial
risks.
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
2023
2022
Cash and cash equivalents
128,543
297,474
Restricted cash in the form of deposits with clearing houses
7,826
6,610
Cash and cash equivalents, including restricted cash
136,369
304,084
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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 54
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 liabilities are included in non-current liabilities.
USD thousands
2023
2022
Trade payables
44,712
60,463
Accruals and other payables
35,648
46,541
Contract liabilities
41,386
54,446
Trade and other payables
121,752
161,450
Payables to related parties
2,090
2,450
Payables to related parties
2,090
2,450
Contract liabilities recognised 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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 55
SECTION 5: CAPITAL STRUCTURE
5.1 FINANCIAL ITEMS
5.2 LEASE LIABILITIES
5.3 FINANCIAL RISKS
5.4 FINANCIAL INSTRUMENTS
5.5 DERIVATIVE FINANCIAL INSTRUMENTS
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 56
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
2023
2022
Interest income
7,593
1,463
Interest income from related parties
-
468
Gain from modification of lease liabilities
1,092
1,211
Exchange rate differences
1,269
-
Financial income
9,954
3,142
Interest expenses
-98
-141
Interest expenses on lease liabilities
-6,466
-8,212
Exchange rate differences
-
-689
Other financial items, net
-99
-101
Financial expenses
-6,663
-9,143
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 57
5.2 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) are 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, Ultrabulk 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 includes 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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 58
5.2 LEASE LIABILITIES (CONTINUED)
The development in lease liabilities are explained in the table below:
USD thousands
2023
2022
Lease liabilities 1 January
243,132
253,882
Additions for the period
99,624
149,142
Remeasurements
-40,945
-36,609
Instalments made
-115,520
-123,283
Lease liabilities 31 December
186,291
243,132
Non-current portion
44,567
87,376
Current portion
141,724
155,756
Lease liabilities 31 December
186,291
243,132
Of the total lease liabilities, USD 44 million (2022: USD 12 million) is related to flexible hire
lease contracts. The flexible hire is basis 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 has not yet commenced
have an undiscounted value of USD 129 million (2022: USD 125 million).
The total cash outflow from leases in 2023 were USD 775 million (2022: USD 1,295 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. The Group holds purchase
options on approx. two thirds of its leases.
! ACCOUNTING ESTIMATES
Measurement of non-lease components
The Group has elected 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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 59
5.3 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 are 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
Ultrabulk 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 matches the
underlying exposure which they are meant to cover.
Market Risk
The Group’s market risk relates primarily to currency risk
attached to cash, receivables and payables in other
currencies that USD, mainly DKK and EUR. The currency risk
is not deemed significant as these balances make up only a
minor portion of the Group’s financial instruments.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 60
5.4 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 has been calculated by discounting the expected future cash flows
at relevant interest rates and involves a degree of estimation 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.
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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 61
5.4 FINANCIAL INSTRUMENTS BY CATEGORY (CONTINUED)
Tables with carrying amount of financial items by class of financial assets and liabilities
31 December 2023
USD thousands
0-1 Year
1-5 Years
Contractual
cash flow
Carrying
amount
Recognised at amortised cost
Trade and other payables
121,750
-
121,750
121,750
Payables to- and loans from related
companies
2,090
-
2,090
2,090
Lease liabilities
146,107
45,657
191,764
186,291
Total
269,947
45,657
315,604
310,131
Recognised at fair value
Financial guarantee contracts
14,455
-
14,455
-
Derivative financial instruments
10,784
3,526
14,310
14,310
Total
25,239
3,526
28,765
14,310
Total financial liabilities
282,538
61,831
344,369
324,441
Recognised at amortised cost
Trade and other receivables
114,391
-
114,391
114,391
Receivables from related companies
829
-
829
829
Cash and restricted cash
136,366
-
136,366
136,366
Total
251,586
-
251,586
251,586
Recognised at fair value
Derivative financial instruments
16,560
2,982
19,542
19,542
Total
16,560
2,982
19,542
19,542
Total financial assets
268,146
2,982
271,128
271,128
31 December 2022
USD thousands
0-1 Year
1-5 Years
Contractual
cash flow
Carrying
amount
Recognised at amortised cost
Trade and other payables
161,450
-
161,450
161,450
Payables to- and loans from related
companies
2,450
-
2,450
2,450
Lease liabilities
159,013
91,156
250,169
243,132
Total
322,913
91,156
414,069
407,032
Recognised at fair value
Financial guarantee contracts
16,017
-
16,017
-
Derivative financial instruments
1,066
646
1,712
1,712
Total
17,083
646
17,729
1,712
Total financial liabilities
339,996
91,802
431,798
408,744
Recognised at amortised cost
Trade and other receivables
117,568
-
117,568
117,568
Receivables from related companies
3,098
-
3,098
3,098
Cash and restricted cash
304,084
-
304,084
304,084
Total
424,750
-
424,750
424,750
Recognised at fair value
Derivative financial instruments
2,478
1,712
4,190
4,190
Total
2,478
1,712
4,190
4,190
Total financial assets
427,228
1,712
428,940
428,940
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 62
5.5 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. 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.
Derivative financial instruments 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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 63
5.5 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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 64
5.5 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Hedging of bunker expenses
Ultrabulk 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 Ultrabulk’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. 86% of the nominal value is
realised within 1 year and 14% is realised within 1-3 years. The nominal value at the end of
the year is USD 35 million and a drop in bunker prices of 10% will have a negative impact
on equity of USD 3.5 million. Ultrabulk 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
Ultrabulk has entered into freight derivatives in order to hedge future cargo and vessel
commitments. The freight derivatives are accounted for as cash flow hedges as part of
Ultrabulk’s risk management. 54% of the nominal value is realised within 1 year and 46% is
realised within 1-5 years. The nominal value as the end of the year is USD 519 million and a
drop in the Baltic Dry rates of 10% will have a negative impact on equity of USD 51.9 million.
Ultrabulk 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, Ultrabulk 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, Ultrabulk 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
Ultrabulk 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.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 65
5.5 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Overview of derivative financial instruments at year-end
31 December 2023
USD million
Nominal
value
Net Sell
Days/MT
Duration
Months
Recognised
on equity
Fair value
Hedge accounting applied
FX hedges (USD/DKK)
12.5
-
1-36
-1,0
0.2
FFA hedges (Days)
128.8
10,041
1-36
-0.2
4.4
Bunker hedges (MT)
35.0
71.831
1-60
1.2
0.9
Hedge accounting not applied
FFAs (Days)
-0.6
-46
1-24
-0.2
Net fair value of derivative instruments
5.3
USD million
Fair value
Presentation in the Consolidated Financial Statement as:
Derivative financial instruments, non-current assets
3.0
Derivative financial instruments, current asset
16.6
Derivative financial instruments, non-current liabilities
-3.5
Derivative financial instruments, current liabilities
-10.8
Net fair value of derivative financial instruments
5.3
31 December 2022
USD million
Nominal
value
Net Sell
Days/MT
Duration
Months
Recognised
on equity
Fair value
Hedge accounting applied
FX hedges (USD/DKK)
16.6
-
1-36
1.2
1.1
FFA swaps (Days)
182.1
13,626
1-36
16.9
1.3
Bunker hedges (MT)
54.3
111,250
1-60
-4.3
-0.2
Hedge accounting not applied
FFAs (Days)
3.8
305
1-24
0.3
Net fair value of derivative instruments
2.5
USD million
Fair value
Presentation in the Consolidated Financial Statement as:
Derivative financial instruments, non-current assets
1.7
Derivative financial instruments, current asset
2.5
Derivative financial instruments, non-current liabilities
-0.6
Derivative financial instruments, current liabilities
-1.1
Net fair value of derivative financial instruments
2.5
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 66
5.5 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Net amount recognised in Other Comprehensive Income
USD million
2023
2022
Effective portion of changes in fair value from:
FX hedges
-1.0
0.1
Bunker hedges
6.0
15.2
FFA hedges
-5.2
32.0
Cash deposits designated as cash flow hedges
-4.5
4.2
Amounts reclassified to profit and loss:
FX hedges reclassified to financial items
0.1
1.2
Bunker hedges reclassified to voyage related expenses
0.0
-19.5
FFA hedges reclassified to revenue
-4.9
-17.3
FFA hedges reclassified to voyage related expenses
5.0
2.2
Net amount recognised in Other Comprehensive Income
-4.5
18.1
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 67
SECTION 6: OTHER NOTES
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 CAPTAL (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
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 68
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
Ultrabulk Group.
Remuneration of Executive Management
The Executive Management comprise of three members, all of which are remunerated
directly by the Ultrabulk Group.
USD thousands
2023
2022
Fixed salaries
884
814
Pensions – defined contribution plans
57
51
Incentive payments (cash based)
649
1,991
Total remuneration included in Staff expenses
1,590
2,856
Remuneration included in other external expenses
-
70
Total remuneration for the Executive Management
1,590
2,926
Members of the Executive Management 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.
6.2 FEE TO THE STATUTORY AUDITORS
The total fee expensed in the year for statutory auditors breaks down as follows:
USD thousands
2023
2022
Statutory audit
222
199
Tax assurance services
4
20
Other services
2
15
Fees to statutory auditors
228
234
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 69
6.3 CONTINGENT LIABILITIES & COMMITMENTS
§ ACCOUNTING POLICIES
Provisions
Provisions are recognised when Ultrabulk 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
Ultrabulk is engaged in certain litigation proceedings. In the opinion of management,
settlement or continuation of these proceedings are not expected to have a material effect
on Ultrabulk A/S financial position, profit or cash flow.
The Company is jointly taxed with other 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 severally liable for the joint registration of
VAT.
Guarantees
Ultrabulk has issued guarantees for loans to joint ventures. The table below summarises
guarantees at year-end:
USD thousands
2023
2022
Guarantees
Ultrabulk has issued guarantees for loans to joint ventures
14,455
16,017
Total
14,455
16,017
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
2023
2022
Short term leases and low value leases
113,124
109,435
Total
113,124
109,435
COAs and Time Charter commitments as service provider
At 31 December, the Group had entered into COAs and time charters with customers
amounting to:
USD thousands
2023
2022
COAs and Time Charter commitments as service provider
Within one year
145,471
160,027
Between 1 – 5 years
122,975
171,432
More than 5 years
2,836
5,533
Total
271,282
336,992
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 70
6.4 OTHER NON-OPERATING CASH ITEMS
(CASH-FLOW)
USD thousands
2023
2022
Gain on sale of vessels, plant, and equipment
-21,819
-35,548
Depreciation and impairment loss
112,861
113,507
Share of gain/loss in associated companies
-
375
Share of gain/loss in joint venture
-4,895
-299
Interest income on loans
-
-484
Interest expenses on lease liabilities
6,498
8,212
Modification of lease liabilities
-1,092
-1,211
Net forward contract activity
35
1,256
Economic trade
439
-242
Other non-cash operating items
-4,006
-96
Total
88,021
85,470
6.5 CHANGE IN WORKING CAPITAL
(CASH-FLOW)
USD thousands
2023
2022
Change in receivables
5,999
9,145
Change in inventories
2,165
-5,016
Change in liabilities
-40,098
18,607
Total
-31,894
22,736
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 71
6.6 CHANGES IN LIABILITIES (CASH FLOW)
Changes in liabilities arising from finance activities
2023
USD thousands
1 January
Cash flow
Other
31 December
Lease liabilities
243,132
-115,520
58,679
186,291
Total liabilities from financing activities
243,132
-115,520
58,679
186,291
2022
USD thousands
1 January
Cash flow
Other
31 December
Lease liabilities
263,527
-133,234
112,839
243,132
Total liabilities from financing activities
263,527
-133,234
112,839
243,132
The category ‘Other’ comprise primarily of additions and remeasurements of lease liabilities. Reference is made to note 5.2 – Lease liabilities.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 72
6.7 RELATED PARTY DISCLOSURES
Ownership
The following shareholders are registered in the Company's register of shareholders as
holding minimum 5% of the voting rights or minimum 5% of the share capital:
Ultranav International ApS, Smakkedalen 6, 2820 Gentofte, Denmark.
The Consolidated Financial Statements of Ultranav International ApS is available at the
Company's address. The ultimate holding company of Ultrabulk A/S is Inversiones Volcán
Mocho 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
2023
2022
2023
2022
Related companies
Charter hire
8,509
22,242
-
-
Management fee income
688
878
-
-
Management fee expense
-2,536
-2,342
-
-
Loans & interests
-
171
-
-
Other receivables and payables
-
-
-2,124
648
Joint Ventures and Associates
Charter hire
-14,266
-22,085
-
Management fee income
98
947
Guarantees
-
-
14,455
16,018
Loans
-
302
-
-
6.8 SHARE CAPITAL
The share capital comprises of shares with a nominal value of DKK 1 each. All shares rank
equally. No restrictions have been imposed on negotiability of the shares or on voting rights.
All issued shares are fully paid.
The share capital have not been subject to changes in the past five years.
6.9 EVENTS AFTER THE BALANCE SHEET DATE
Disclosure of events after the balance sheet date
No events have occurred after the balance sheet date that materially affects the financial
position of the Group.
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 73
6.10 GROUP STRUCTURE
GROUP STRUCTURE | PAGE 73
ULTRABULK ANNUAL REPORT 2023
ULTRABULK ANNUAL REPORT 2023 NOTES | PAGE 74
PARENT COMPANY FINANCIAL STATEMENTS
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 75
PROFIT OR LOSS
USD thousands
Note
2023
2022
Revenue
2
886,125
1,266,366
Vessel operating costs and voyage related expenses
-847,205
-1,138,352
Gross profit (Net earnings from shipping activities)
38,920
128,014
Other external expenses
3
-20,017
-19,035
Staff costs
4
-7,174
-15,711
Operating profit before depreciation and impairment loss (EBITDA)
11,729
93,268
Profit from sale of tangible assets
15,900
30,750
Depreciation
6
-1,224
-1,076
Operating profit (EBIT)
26,405
122,942
Share of subsidiaries’ profit after tax
7
19,915
50,343
Share of associates’ profit after tax
8
-
-375
Other financial items, net
4,943
67
Profit before tax
51,263
172,977
Tax
5
-2,798
-826
Net result
48,465
172,151
Proposal for the distribution of net result:
Reserve for net revaluation according to equity method
19,915
49,968
Retained earnings
-6,450
-27,817
Proposed dividend
35,000
150,000
Net result
48,465
172,151
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 76
BALANCE SHEET
ASSETS
USD thousands
Note
2023
2022
Fixtures, fittings, and equipment
6
568
1,297
Tangible assets
568
1,297
Investments in subsidiaries
7
159,646
144,308
Investments in associates
8
-
-
Derivative financial instruments
14
2,982
1,712
Deposit
162
177
Financial assets, non-current
162,790
146,197
Total non-current assets
163,358
147,494
Inventories
19,051
26,485
Trade and other receivables
9
63,337
74,521
Receivables from related companies
4,187
1,230
Prepayments
20,705
25,010
Income tax receivables
-
1,048
Derivative financial instruments
14
16,560
2,478
Cash and short-term deposits, including restricted cash
16
103,828
219,410
Total current assets
227,668
350,182
TOTAL ASSETS
391,026
497,676
EQUITY AND LIABILITIES
USD thousands
Note
2023
2022
Share capital
5,134
5,134
Revaluation reserve according to the equity method
95,884
80,734
Cash flow hedge reserves
2,789
2,561
Retained earnings
82,531
118,982
Proposed dividend
35,000
150,000
Total equity
10
221,338
357,411
Derivative financial instruments
14
3,526
646
Total non-current liabilities
3,526
646
Trade and other payables
11
67,791
98,134
Payables to related companies
84,910
40,419
Derivative financial instruments
14
10,784
1,066
Income tax payable
2,677
-
Total current liabilities
166,162
139,619
Total liabilities
169,688
140,265
TOTAL EQUITY AND LIABILITIES
391,026
497,676
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 77
STATEMENT OF CHANGES IN EQUITY
USD thousands
Share capital
Cash flow
hedge reserve
Revaluation reserve
according to the
equity method
Retained earnings
Proposed dividend
Total equity
Equity as 1 January 2023
5,134
2,561
80,734
118,982
150,000
357,411
Net result
-
-
19,915
-6,450
35,000
48,465
Additional ordinary dividend
-
-
-
-30,000
30,000
-
Dividend paid to shareholders
-
-
-
-
-180,000
-180,000
Fair value adjustments
-
227
-4,765
-
-
-4,537
Other adjustments
-
-
-
-
-
-
Equity as 31 December 2023
5,134
2,788
95,884
82,531
35,000
221,338
USD thousands
Share capital
Cash flow
hedge reserve
Revaluation reserve
according to the
equity method
Retained earnings
Proposed dividend
Total Equity
Equity as 1 January 2022
5,134
-11,714
33,024
140,760
45,000
212,204
Net result
-
-
49,968
-27,816
150,000
172,152
Dividend received from subsidiaries
-
-
-5,769
5,769
-
-
Dividend paid to shareholders
-
-
-
-
-45,000
-45,000
Fair value adjustments
-
14,275
3,780
-
-
18,055
Other adjustments
-
-
-269
269
-
-
Equity as 31 December 2022
5,134
2,561
80,734
118,982
150,000
357,411
*The Board of Directors, in conjunction with the General Meeting held on March 14, 2023, approved the additional ordinary dividend.
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 78
NOTE 1 – BASIS OF REPORTING
§ GENERAL ACCOUNTING POLICIES
The Parent Company Financial Statements of Ultrabulk A/S have been prepared pursuant
to the provisions for large class C enterprises of the Danish Financial Statements Act.
The accounting policies of The Parent Company Financial Statements are unchanged
compared to last year.
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.
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, as well as recognition and measurement of investment in subsidiaries as
described in note 7.
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
Ultrabulk A/S.
Leases
IFRS 16 has not been applied in the Parent Company Financial Statements. All leases are
classified as operational leases. The payments (time-charter hire) are recognised as an
expense and are charged to the profit or loss on a straight line basis over the term for the
lease.
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 79
NOTE 2 – REVENUE
USD thousands
2023
2022
Income from freight
706,868
916,053
Income from time charter
179,257
350,313
Revenue by type of contract
886,125
1,266,366
NOTE 3 – FEE TO THE STATUTORY AUDITOR
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.
NOTE 4 – STAFF COSTS
USD thousands
2023
2022
Salaries
5,409
13,904
Pensions – defined contribution plan
954
876
Other staff costs
811
931
Total
7,174
15,711
Average number of employees
89
82
With regards of remunuration of management, please refer to note 6.1 in the Consolidated
Financial Statements.
NOTE 5 – TAX
USD thousands
2023
2022
Current tax on profit for the year
-2,798
-948
Tax on profit for the year
-2,798
-948
Adjustments related to previous years – current tax
-
122
Tax in the income statement
-2,798
-826
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 80
NOTE 6 – FIXTURES, FITTINGS AND
EQUIPMENT
USD thousands
2023
2022
Cost at 1 January
3,824
6,671
Additions for the year
495
1,471
Disposals
-
-4,318
Cost at 31 December
4,319
3,824
Depreciation at 1 January, accumulated
-2,527
-5,769
Depreciation for the year
-1,224
-1,076
Depreciation on disposals
-
4,318
Depreciations at 31 December, accumulated
-3,751
-2,527
Carrying amount at 31 December
568
1,297
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 81
NOTE 7 – INVESTMENTS IN SUBSIDIARIES
§ ACCOUNTING POLICIES
Earnings from investments in subsidiaries and associates
In the Parent Company’s profit or loss, the proportional share of earnings is recognised
under the items “Share of subsidiaries’ profit after tax” and “Share of associates’ profit after
tax”.
Investments in subsidiaries and associates
Investments in subsidiaries and associates are recognised and measured according to the
equity method. In the balance sheet under the items “Investments in subsidiaries” and
“Investments in associates”, the proportional ownership share of the companies’ net asset
value is recognised.
The total net revaluation of investments in subsidiaries and associates is transferred
through the distribution of profits to “Reserve for net revaluation according to equity
method” under equity. The reserve is reduced by dividend payments to the Parent
Company and is adjusted with other changes in equity in subsidiaries and associates.
Subsidiaries and associates with negative net asset value are recognised if such a present
obligation for this purpose exists.
USD thousands
2023
2022
Cost at 1 January
16,958
16,958
Additions
24
-
Cost at 31 December
16,982
16,958
Value adjustment at 1 January
126,030
77,945
Share of result for the year
19,915
50,343
Dividends
-
-5,769
Change in equity in subsidiaries
-4,765
3,780
Other changes
-
-269
Value adjustment 31 December
141,180
126,030
Carrying amount
158,162
142,988
The carrying amount can be specified as follows:
Investment in subsidiaries
159,646
144,308
Negative equity in subsidiaries, deducted in intercompany
receivables
-1,484
-1,320
Carrying amount
158,162
142,988
Direct subsidiaries
Ownership
Ownership
Ultrabulk (Asia) Pte. Ltd
100%
100%
Ultrabulk Cargo Services GmbH
100%
100%
Ultrabulk (USA) Ltd.
100%
100%
Ultrabulk do Brazil Ltda.
100%
100%
Ultrabulk South Africa (Pty) Ltd.
100%
100%
Cedrela Transport Ltd.
100%
100%
Ultrabulk Japan K.K.
100%
-
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 82
NOTE 8 – INVESTMENTS IN ASSOCIATES
USD thousands
2023
2022
Accumulated costs at 1 January
1,408
1,408
Accumulated costs at 31 December
1,408
1,408
Accumulated value adjustment at 1 January
-1,408
-1,033
Impairment
-
-375
Accumulated value adjustment at 31 December
-1,408
-1,408
Carrying amount to 31 December
-
-
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 83
NOTE 9 – TRADE AND OTHER RECEIVABLES
USD thousands
2023
2022
Customers (trade receivables)
48,424
58,764
Other receivables
14,913
15,757
Total
63,337
74,521
NOTE 10 – SHARE CAPITAL
Share capital
Please refer to note 6.8 of the Consolidated Financial Statements.
NOTE 11 – TRADE AND OTHER PAYABLES
USD thousands
2023
2022
Trade payables
18,211
26,274
Accruals and other payables
25,260
40,226
Deferred income
24,320
31,634
Total
67,791
98,134
NOTE 12 – CONTINGENT LIABILITIES
USD thousands
2023
2022
Guarantees
Ultrabulk A/S has issued guarantees for loans to joint venture
and associated company
14,455
16,017
Ultrabulk A/S has issued guarantees for time charter hires to
subsidiaries
138,886
264,576
Total
153,341
280,593
Contingent liabilities
Ultrabulk A/S is engaged in certain litigation proceedings. In the opinion of management,
settlement or continuation of these proceedings are not expected to have a material effect
on Ultrabulk A/S’ financial position, operating profit or cash flow.
Ultrabulk A/S is jointly taxed with other 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 Ultrabulk
A/S’ liability constituting a larger amount.
Ultrabulk A/S and related Danish companies are jointly and severally liable for the joint
registration of VAT.
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 84
NOTE 13 – OPERATING LEASE LIABILITIES AND
COAs COMMITMENTS
Lease agreements have been entered into with a mutually interminable lease period up to
7 years. As a general rule, leases include an option to renew for one additional year at a
time for up to three years. Some of the lease agreements include a purchase option,
exercisable as from the end of the fifth year to the expiry of the period of renewal. Exercise
of the purchase option on the individual vessels is based on an individual assessment. The
lease liabilities are assessed at nominal amount.
The Company has purchase options on operational leases. However the majority of such
purchase options are partly shared.
USD thousands
2023
2022
Operating leases
Within one year
99,843
137,132
Between 1 – 5 years
24,442
14,246
Total
124,285
151,378
USD thousands
2023
2022
COAs and Time Charter commitments as service provider
Within one year
91,818
124,334
Between 1 – 5 years
106,631
165,975
More than 5 years
2,836
5,533
Total
201,285
295,842
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 85
NOTE 14 – FINANCIAL INSTRUMENTS
For accounting policies, reference is made to note 5.5 in the Consolidated Financial
Statements.
Hedging of bunker expenses
Ultrabulk A/S 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 Ultrabulk’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. 86% of the nominal value is
realised within 1 year and 14% is realised within 1-3 years. The nominal value at the end of
the year is USD 35 million and a drop in bunker prices of 10% will have a negative impact
on equity of USD 3.5 million. Ultrabulk 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
Ultrabulk has entered into freight derivatives in order to hedge future cargo and vessel
commitments. The freight derivatives are accounted for as cash flow hedges as part of
Ultrabulk’s risk management. 54% of the nominal value is realised within 1 year and 46% is
realised within 1-5 years. The nominal value as the end of the year is USD 519 million and a
drop in the Baltic Dry rates of 10% will have a negative impact on equity of USD 51.9 million.
Ultrabulk A/S 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, Ultrabulk A/S 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 in freight derivatives
In line with its freight trading approach, Ultrabulk A/S 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.
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 86
NOTE 15 – RELATED PARTY TRANSACTION
Reference is made to note 6.7 in the consolidated financial statements which details related
party transactions between the Ultrabulk Group and related companies other than wholly
owned subsidiaries of Ultrabulk A/S.
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
The following shareholders are registered in the Company's register of shareholders as
holding minimum 5% of the voting rights or minimum 5% of the share capital:
Ultranav International ApS, Smakkedalen 6, 2820 Gentofte, Denmark.
The Consolidated Financial Statements of Ultranav International ApS is available at the
Company's address. The ultimate holding company of Ultrabulk A/S is Inversiones Volcán
Mocho S.A., Av, El Bosque Norte 500 Piso 22, 7550092 Las Condes, Santiago, Chile.
NOTE 16 – RESTRICTED CASH
Restricted cash in terms of deposits in favor of clearinghouses (Macquarie and BNP Paribas)
amounts to USD 7.8 million (2022: USD 6.6 million).
NOTE 17 – SUBSEQUENT EVENTS
For subsequent events, reference is made to note 6.9 in the Consolidated Financial
Statements.
ULTRABULK ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 87
ULTRABULK OFFICES
Ultrabulk A/S
Smakkedalen 6
2820 Gentofte
Denmark
Ultrabulk
c/o Naviera Ultranav Limitada
Av. El Bosque Norte 500 – 20th Floor
Las Condes – Santiago 7550092
Chile
Ultrabulk (USA) Inc.
9 W Broad Street
Suite 650
Stamford Connecticut 06902
USA
Ultrabulk Cargo Services GmbH
Prinzenallee 7
40549 Düsseldorf
Germany
Ultrabulk (Asia) Pte. Ltd.
12 Marina View
#21-07 Asia Square Tower 2
Singapore 018961
Ultrabulk do Brasil Ltda.
Atlantica Business Center
Av. Atlantica 1130, 12th Floor
Rio de Janeiro 22021-000
Brazil
Ultrabulk (Asia) Pte. Ltd. (DMCC Branch) Dubai
Jumeirah Business Center 3
Office 502
JLT Cluster Y
Dubai
Ultrabulk South Africa (Pty) Ltd.
ICR House, Alphen Office Park
Constantia Main Road,7806 Constantia
South Africa
Ultrabulk (Australia) Pty. Ltd.
C/O Wotso Workspace
1-5 Link Road
Zetland 2017 NSW
Australia
Ultrabulk Japan K.K.
Pacific Century Place
1-11-1 Marunouchi, Chiyoda-ku
13th floor, office 1315
Tokyo 100-6208
Japan
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