f
CVR.no. 38 28 37 15
2024
Annual Report
Ultrabulk A/S
ULTRABULK ANNUAL REPORT 2024 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
2024 highlights ................................................................................................... 9
Financial review ............................................................................................... 11
Group key figures and ratios ............................................................................ 12
2024 financial performance ............................................................................. 13
2025 outlook .................................................................................................... 15
Our business .................................................................................................... 16
Business model ................................................................................................. 17
Risk management ............................................................................................. 18
Sustainability .................................................................................................... 21
Corporate governance ..................................................................................... 22
Signatures ........................................................................................................ 23
Statement by the Board of Directors and Executive Management .................. 24
Independent Auditor’s Report .......................................................................... 25
Consolidated financial statements ................................................................... 28
Consolidated income statement ....................................................................... 29
Consolidated balance sheet .............................................................................. 30
Consolidated statement of cash flows .............................................................. 31
Consolidated statement of changes in equity .................................................. 32
Notes to the consolidated financial statements ............................................... 33
ULTRABULK ANNUAL REPORT 2024 ULTRABULK AT A GLANCE | PAGE 3
ULTRABULK AT A GLANCE
ULTRABULK ANNUAL REPORT 2024 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 offering tailor-made
specialised 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 in close coorperation with the head office.
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 2024 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.
Ultrabulk organisation
Chartering
Panamax
Supramax
Handysize
Long-Term
Specialised services
Operations
Vessel operation
Bunker Procurement
Legal & Claims
Laytime
Support
Fleet Efficiency & Decarbonisation
Business Intelligence
Finance and Accounting
Operations and Business Control
Communication
ESG | HR | IT | Tax
Our 7 business units operate with
their own management and a high
degree of autonomy, enabling them
to be agile and to take timely
decisions in each of their markets.
Our operation teams offer
24/7 support to the vessels
on the daily matters, incl.
loading/discharging,
bunkering, communication
with agents, ports and
authorities, and more.
Our support teams provide
back-office services ensuring our
commercial teams can focus on the
business. Furthermore, emphasis is
on automating tasks, supporting
decision making and assisting in
driving green and digital agendas.
ULTRABULK AT A GLANCE | PAGE 5
ULTRABULK ANNUAL REPORT 2024
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 2024 ULTRABULK AT A GLANCE | PAGE 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 on a personal
level.
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.
Keeping a healthy work-life balance as well as a
pleasant and inclusive working environment where
everyone feels safe and valued regardless of their
origin, background or beliefs is imperative to retain
a motivated staff.
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 more than 30 nationalities
working at our organisation, thus being culturally
intelligent is of the utmost importance. And we
believe this makes us stronger as a company.
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
A
Offices
9
Men/women ratio
68/32
Staff
153
Nationalities
30
Average age
41
Average years of service
7
ULTRABULK AT A GLANCE | PAGE 6
ULTRABULK ANNUAL REPORT 2024 ULTRABULK AT A GLANCE | PAGE 7
OUR OFFICES
Ultrabulk had 153 employees by the end of 2024, 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 2024
ULTRABULK ANNUAL REPORT 2024 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 2024, Ultranav counts 3,851
employees (sea and shore) and operates a fleet of
421 ocean going vessels and tugs.
ULTRABULK ANNUAL REPORT 2024 ULTRABULK AT A GLANCE | PAGE 9
2024 HIGHLIGHTS
An average year in a normalised market
The dry bulk market conditions improved in 2024
compared to 2023 with the S10TC Baltic Index
ending at an USD 13,600 per day average on the
year vs USD 11,239 the year before. At the same
time, the market continued to be difficult to
foresee, partly due to wars in Ukraine and in
Israel/Palestine, as well as a slower average vessel
seed due to environmental obligations. All in all,
Ultrabulk had a more normal, pre-covid year in
2024.
Total physical ship days in 2024 were 63,618 days,
slightly up from the 61,575 days in 2023. This marks
the highest fleet size so far in Ultrabulk. Cargo lifted
was 58.3 million tons in 2024 which is also a record
in the company, around 3.5 million tons above the
record set in 2022.
Flat global market with extreme local
volatility created difficult conditions in
2024
Our spot business had a difficult year in 2024 and
performed lower than expected. The overall flat
market during the year hides the unpredictable
volatility in the local markets as seasonal and
geopolitical factors affected different areas of the
world. These factors have made it more difficult to
trade in and out of the market as an operator, and
the risk of ending in a low result area has been more
difficult to predict because of local volatility. On the
other hand, we were able to execute on a few vessel
sales which contributed positively to the result.
After initiating a strategic realignment of Ultrabulk
towards the end of 2024 we are now increasing the
focus on the term “Delivering Value” as one of our
strategic pillars, and crystalising how we make a
difference for our customers, ensuring that they
know our capabilities, key differentiators and that
we as a team keep a solution-based focus driven by
our customers’ needs. We look forward to engaging
with key clients on this topic during 2025.
Local acts of war
While being a terrible situation, the ongoing war
between Ukraine and Russia, as well as the ongoing
acts of war in the Middle East, does not have direct
effects on Ultrabulk.
However, it does influence global trade flows. This
means increased volatility and huge local
differences in market levels. The continued attacks
in the Suez Canal are creating new trade flows but
this also goes for the effect of the Ukraine/Russia
war on the European market. 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 Delivering Value, Ultrabulk pursues a strategy
founded on three other separate pillars:
A sustainable future
We are committed to making a difference on the
environmental impact of shipping. This entails four
focus areas: choosing the right vessels, retrofitting,
optimising the usage of the current fleet and
reporting and partnerships.
We have a focus on choosing the right vessels for
our fleet. This applies to vessels we know, owners
we have a good cooperation with and vessels we
think we can run optimally in our trade.
We are in continued dialogue with partners to
construct a series of dual fuel bulk carriers for
delivery in 2029. We expect to close these
negotiations during 2025.
In addition to choosing the right vessels, 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 necessarily own the assets.
THE FLEET
ULTRABULK ANNUAL REPORT 2024 ULTRABULK AT A GLANCE | PAGE 10
Furthermore, we are focused on how we get the
most out of the existing vessels. Primary focus is on
crew interaction
and getting the right data into our system which
enables us to take the right decisions on the usage
of the vessels.
Digital acceleration
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.
When increasing focus on digitalisation, cyber
security must be a focus area, and we as a company
take the risk of attacks very seriously and put strong
emphasis on ensuring our company can operate in
a stable manner and securing our counterparties’
data.
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.
Our people, our strength
When asking our team, they tell us that that they
feel a high degree of psychological safety and
inclusion, and that people value their social
relations at work. We believe that our people – our
combined unique identities and talents – is our
biggest strength and a cornerstone for being
successful as a business. We continue to work
actively towards ensuring optimal conditions for
communication and collaboration in our
recruitment, onboarding and through team
workshops and leadership training.
ULTRABULK ANNUAL REPORT 2024 FINANCIAL REVIEW | PAGE 11
FINANCIAL REVIEW
ULTRABULK ANNUAL REPORT 2024 FINANCIAL REVIEW | PAGE 12
GROUP KEY FIGURES AND RATIOS
INCOME STATEMENT (USD '000)
2024
2023
2022
2021
2020
Revenue
1,641,815
1,481,359
2,143,813
1,762,814
900,043
Gross profit (Net earnings from shipping activities)
198,197
176,684
304,018
258,190
141,170
Operating profit before depreciation, amortization and impairment loss (EBITDA)
148,925
139,909
256,870
225,485
120,544
Operating profit (EBIT)
21,293
53,762
179,210
88,621
-2,267
Net financials
707
3,261
-6,001
-11,586
-12,104
Profit before tax
22,000
57,023
172,834
76,660
-14,371
Net result
14,977
53,346
171,595
74,997
-16,257
STATEMENT OF FINANCIAL POSITION (USD '000)
Non-current assets
234,103
203,696
251,859
256,483
379,280
Current assets
293,858
338,409
501,986
374,391
209,383
Total assets
527,961
542,105
753,845
630,874
588,663
Equity
179,065
213,911
345,101
200,451
135,322
Non-current liabilities
90,072
48,093
88,022
126,615
233,826
Current liabilities
258,824
280,101
320,722
303,808
219,515
Net interest-bearing (liabilities)/assets, including leases
-42,163
-49,925
60,952
-106,046
-259,581
Net interest-bearing (liabilities)/assets, excluding leases
81,807
136,369
304,084
134,298
52,163
Cash and cash equivalents, including restricted cash
81,807
136,369
304,084
92,461
76,746
CASH FLOW (USD '000)
From operating activities
168,140
113,665
290,093
206,134
131,797
From investing activities
-55,956
23,935
128,243
-33,947
2,444
- of which relates to investment in tangible assets
-95,829
-106,656
-64,033
-1,008
-19,481
From financing activities
-177,223
-302,018
-186,415
-182,464
-153,475
Total net cash flow
-65,039
-164,418
231,921
-10,277
-19,234
Change in restricted cash
-10,177
-1,216
24,510
-25,992
-4,048
Total net cash flow, excluding changes in restricted cash
-54,862
-163,204
207,411
15,715
-15,186
FINANCIAL RATIOS
Gross profit margin (Net earnings from shipping activities margin)
12.1%
11.9%
14.2%
14.6%
15.7%
EBITDA margin
9.1%
9.4%
12.0%
12.8%
13.4%
Return on equity (ROE)
8.4%
24.9%
49.7%
44.7%
-11.1%
Equity ratio
33.9%
39.5%
45.8%
31.8%
23.0%
Physical ship days in the year
63,618
61,575
63,208
58,906
50,274
ULTRABULK ANNUAL REPORT 2024 FINANCIAL REVIEW | PAGE 13
2024 FINANCIAL PERFORMANCE
Results
Revenues amounted to USD 1,642 million, a 11%
increase from last year’s revenue. The increase in
revenues is linked to an improvement in the market
conditions in 2024.
Gross profit was USD 198 million, which is an
increase from USD 177 million last year,
corresponding to a gross margin of 12.1% against
11.9% in 2023.
EBITDA was USD 149 million (USD 140 million in
2023), corresponding to an EBITDA margin of 9.5%
(9.4% in 2023).
Depreciations amounted to USD 134 million against
USD 113 million in 2023. Depreciations mainly
relate to right-of-use vessels.
Gain from sale of vessels amounted to USD 6 million
against USD 22 million in 2023.
Financial items amounted to a net gain of USD 1
million against a net income of USD 3 million in
2023. Most financial items relate to interest income
and interest expenses on lease liabilities.
Income tax amounted to USD 7 million.
Net result amounted to a profit of USD 15 million,
down from USD 53 million in 2023, which is within
the expected range set out last year.
Cash flow
The cash flow, excluding movements in restricted
cash, was a cash outflow of USD 65 million against
an outflow of USD 163 million last year.
Cash flow from operating activities were an inflow
of USD 168 million (USD 116 million in 2023), mainly
related to cash generated from the shipping
activities.
Cash flow from investing activities were an outflow
of USD 56 million, against an inflow USD 21 million
in 2023, driven by investment in vessels.
Cash flow from financing activities were an outflow
of USD 177 million (USD 302 million in 2023) which
comprise of dividends paid to shareholders and
repayment of lease liabilities.
Profit or loss key figures 2024
(USD million)
Development in Free Cash Flow
(USD million)
ULTRABULK ANNUAL REPORT 2024 FINANCIAL REVIEW | PAGE 14
2024 FINANCIAL PERFORMANCE
Balance sheet
Total assets amounted to USD 528 million, against
USD 542 million in 2023.
Non-current assets totalled USD 234 million (USD
204 million in 2023) of which USD 120 million was
Right-of-use assets (USD 179 million in 2023).
Current assets totalled USD 294 million (USD 338
million in 2023). The cash, including restricted cash,
amounted USD 82 million at the end of 2024 against
USD 136 million last year.
Total liabilities amounted to USD 349 million
compared to USD 328 million in 2023. The main part
of the liabilities comprised of lease liabilities which
amounted to USD 124 million (USD 186 million at
the end of 2023).
Total equity amounted to USD 179 million (USD 214
million in 2023), driven by paid out dividend of USD
35 million.
Return on equity was 8.4% (24.9% in 2023) and
equity ratio was 33.9% at the end of 2024 (39.5% at
the end of 2023).
ULTRABULK ANNUAL REPORT 2024 FINANCIAL REVIEW | PAGE 15
2025 OUTLOOK
Similar to last year, extreme weather and
ongoing acts of war together with
envionmental legislation set the scene for
increased volatility and changed trading
patterns.
On average, 2024 was a slightly better shipping year
than 2023, 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 envisage the instability in supply chains across
the world, geopolitical challenges, and extreme
weather will continue, or even accelerate, in 2025,
including the change of president in the United
States which might also influence international
trading, and thereby change trading patterns. While
we anticipate a commercial result similar to 2024,
we also foresee 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.
On a positive note, we continue to register 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 scheduled to be delivered
from the shipyards over the next five years keeps
the supply side under control coupled with
anticipated scrapping 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
consequently the world fleet slowing down.
All in all, we believe the supply and demand picture
will remain tight, even without considering a higher-
than-normal 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 anticipated
market conditions, we expect a net result of the
Group and the Parent Company in the range of USD
10-20 million in 2025.
FINANCIAL REVIEW | PAGE 15
ULTRABULK ANNUAL REPORT 2024 OUR BUSINESS | PAGE 16
OUR BUSINESS
ULTRABULK ANNUAL REPORT 2024 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. We have invested more than USD 5
million in energy saving devices both on owned and
chartered vessels. We are constantly looking for
ways to optimise the fleet and the operational
impact in order to contribute to creating a more
sustainable future.
OUR BUSINESS | PAGE 17
ULTRABULK ANNUAL REPORT 2024
ULTRABULK ANNUAL REPORT 2024 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 2024
ULTRABULK ANNUAL REPORT 2024 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 2024 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 back 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
In the first nine months of 2024, reported incidents
of piracy and armed robbery fell to the lowest levels
since 1994, according to the latest report by the ICC
International Maritime Bureau (IMB). Despite the
lowest reported incidents in three decades, IMB and
its Piracy Reporting Centre warns that crew safety
remains at risk.
IMB reported 79 incidents for the period of January-
September 2024, down from 99 incidents in the
same period last year. The lowest reported numbers
since 1994. From January to September, 62 vessels
were boarded, six were hijacked while nine faced
attempted attacks and two were fired upon. In 86%
of incidents, perpetrators successfully gained access
to the vessel with most incidents occurring at night.
Violence towards crew members remains
concerning, with 111 crew taken hostage, 11
kidnapped and three threatened. Perpetrators were
armed with weapons, guns, and knives in 45 of the
reported incidents. The Indonesian Archipelago
remains an area of concern with a steady rise in the
number of reported incidents. From January to
September 2024, 17 incidents were reported
compared to 12 in 2023 and nine in 2022. In the first
nine months of 2024, 12 incidents were reported in
the Gulf of Guinea region, the lowest number of
reports since 1996. Eight incidents have been
reported in the waters off Somalia and the Gulf of
Aden, with three hijacked vessels and two fired
upon. Incidents in the Singapore Straits have
dropped to 23, compared to 33 over the same
period last year. Perpetrators were successful in
boarding the vessels in 96% of the cases.
Ultrabulk is following the guidelines made by the
IMO, the leading hull underwriters, and we adhere
to Best Management Practices produced and
supported by industry organization.
ULTRABULK ANNUAL REPORT 2024 OUR BUSINESS | PAGE 21
SUSTAINABILITY
Sustainability tops the agenda at Ultrabulk –
highlighted by the fact that one of our stratigic
pillars is environment.
Ultrabulk supports the climate targets set out by
Ultranav:
• 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.
To achieve our climate targets, we have identified 6
focus areas, which constitutes our GHG strategy:
1. Energy on board
Throughout 2024 Ultrabulk managed to avoid
a total of 19,934 mtCO2 due to auxiliary engine
optimisation, 13,241 mtCO2 due to
performance optimisation such as hull
cleanings and propeller polishings, and 74,862
mtCO2 from speed and weather optimisation.
On our CII rating we score an ‘A’ on our mid-
term/long-term fleet, and a ‘B’ on the full fleet.
2. Industry collaboration
We actively cooperate and partner up with
stakeholders, such as customers, peers, ports,
suppliers, providers of technology, and
knowledge partners on topics that can support
decarbonisation in the shipping industry on
the short, medium and long term.
3. Culture
By actively sharing information, we ensure our
organisation is aligned on our decarbonisation
goals. In 2024 we launched the Environmental
Ambassador Programme, an extensive training
programme ensuring members of our staff are
duly educated and informed about relevant
regulations, policies and initiatives. The
Environmental Ambassadors are there to
supports both colleagues and customers.
4. Transparent reporting
All relevant operational data is gathered in a
centralised dashboard that is automatically
fed by the voyage management systems. This
gives insight into intensity and total emissions
on a granular level (per leg) to decision-
makers.
5. Regulation
We participate actively in local and global
forums and instances supporting regulations
which promote the reduction of GHG
emissions in a just and equitable manner.
Wherever possible we strive to contribute to
effective regulations that should bring total
lifecycle emissions down.
6. Pathway to zero
We are fast followers in adapting alternative
fuels which achieve (net) zero emissions on a
lifecycle (Well-to-Wake) basis. Small to
moderate investments in new technologies
allow us to be well positioned and informed
when technology matures.
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:
01
Energy on
board
02
Industry
collaborations
04
Transparent
reporting
06
Pathway
to zero
05
Regulations
03
Culture
ULTRABULK ANNUAL REPORT 2024 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
Whistleblower platform
The Ultranav General Business Principles, which the
Ultrabulk Group adhere to, are the promise we have
made to our stakeholders about how to always
conduct business, 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 2024,
unchanged from 2023. In 2025, likewise, the
members of the Board of Directors intend to refrain
from receiving any compensation for their work. If
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 2021 ACCOUNTS AND PERFORMANCE | PAGE 23
SIGNATURES
ULTRABULK ANNUAL REPORT 2024 SIGNATURES | PAGE 24
STATEMENT BY THE BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
Board Member
ULTRABULK ANNUAL REPORT 2024 SIGNATURES | PAGE 25
INDEPENDENT AUDITOR’S REPORT
Opinion
Basis for opinion
Statement on the Management’s
Review
ULTRABULK ANNUAL REPORT 2024 SIGNATURES | PAGE 26
INDEPENDENT AUDITOR’S REPORT
Management's responsibilities for the
financial statements
Auditor's responsibilities for the audit
of the financial statements
ULTRABULK ANNUAL REPORT 2024 SIGNATURES | PAGE 27
INDEPENDENT AUDITOR’S REPORT
CVR no. 33 77 12 31
State Authorised Public Accountant
ULTRABULK ANNUAL REPORT 2024 SIGNATURES | PAGE 28
CONSOLIDATED FINANCIAL STATEMENTS
ULTRABULK ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 29
CONSOLIDATED INCOME STATEMENT
PROFIT OR LOSS
1 JANUARY – 31 DECEMBER
USD thousands
Note
2024
2023
Revenue
2.1
Vessel operating costs and voyage related expenses
2.2
-1,443,618
-1,304,596
Gross profit (Net earnings from shipping activities)
Other income
Other external expenses
6.2
-17,440
-9,709
Staff costs
2.3
-32,624
-27,940
Operating profit before depreciation (EBITDA)
Depreciations
3.3
-134,075
-112,861
Gain/(loss) from sale of vessels, net
Share of Joint Ventures’ profit after tax
3.4
Operating profit (EBIT)
Financial income
5.1
Financial expenses
5.1
-8,155
-6,693
Profit before tax
Tax
2.4
-7,023
-3,677
Profit/loss for the period
STATEMENT OF OTHER COMPREHENVISE INCOME
1 JANUARY – 31 DECEMBER
USD thousands
Note
2024
2023
Net result
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
-13,634
-4,536
Translation from functional currency to presentation
currency
-1,189
Other comprehensive income, net of tax
-14,823
-4,536
Total comprehensive income
ULTRABULK ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 30
CONSOLIDATED BALANCE SHEET
ASSETS
USD thousands
Note
2024
2023
Customers Relations
3.1
Vessels & right-of-use assets
3.2
Fixtures, fittings, and equipment
3.2
Intangible & tangible assets
Investments in Joint Ventures
3.4
Derivative financial instruments
5.5
Deposits
Financial assets, non-current
Total non-current assets
Inventories
4.2
Trade and other receivables
4.1
Receivables from related companies
4.1
Prepayments
4.1
Derivative financial instruments
5.5
Cash and cash equivalents, including restricted cash
4.3
Total current assets
Total assets
LIABILITIES
USD thousands
Note
2024
2023
Share capital
6.8
Retained earnings
Other reserves
-12,902
Proposed dividend
Total equity
Derivative financial instruments
5.5
Lease liabilities
5.2
Other liabilities
Total non-current liabilities
Trade and other payables
4.4
Payables to related companies
4.4
Lease liabilities
5.2
Derivative financial instruments
5.5
Income tax payable
Total current liabilities
Total liabilities
Total equity and liabilities
ULTRABULK ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 31
CONSOLIDATED STATEMENT OF CASH FLOWS
Amount in USD thousands
Note
2024
2023
Profit/(loss) before tax
Tax effect
-2,172
Adjustment of other non-cash operating items
6.4
Change in working capital
6.5
-31,894
Net cash flows from operating activities
Investments in tangible assets
-95,829
-106,656
Sale of tangible assets
Dividend received
Acquisition of subsidiaries
-5,874
Change in restricted cash
4.3
-10,177
-1,216
Net cash flow from investing activities
-55,956
Free cash flow
Dividends paid to equity holders
-35,000
-180,000
Repayment of lease liabilities
6.6
-134,156
-115,520
Interest payments on lease liabilities
-8,067
-6,498
Net cash flows from financing activities
-177,223
-302,018
Net change in cash and cash equivalents
-65,039
-164,418
-164,418
Cash and cash equivalents at 1 January
Net change in cash and cash equivalents
-65,039
-164,418
Revaluation of cash deposits in foreign currencies
-4,513
Cash and cash equivalents at 31 December
Restricted cash
4.3
Cash and cash equivalents
Cash and cash equivalents incl. restricted cash at 31 December
ULTRABULK ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 32
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
USD thousands
Share capital
Translation
reserves
Cash flow
hedge reserve
Proposed dividends
Retained earnings
Equity
Equity as 1 January 2024
Distribution of net result
Derivatives designated as cash flow hedges
-13,934
-13,934
Exchange adjustments on net investments
-1,189
-1,189
Other cash flow hedges
Other comprehensive income for the year
-1,189
-13,634
-14,823
Total comprehensive income for the year
-1,189
-13,634
Distributed dividend
-35,000
-35,000
Transactions with shareholders
-35,000
-35,000
Equity as 31 December 2024
-1,189
-11,713
Equity as 1 January 2023
Distribution of net result
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
Additional ordinary dividend*
-30,000
Distributed dividend
-180,000
-180,000
Transactions with shareholders
-150,000
-30,000
-180,000
Equity as 31 December 2023
*The Board of Directors, in conjunction with the General Meeting held on March 14, 2023, approved the additional ordinary dividend.
ULTRABULK ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SECTION 1: BASIS OF PREPARATION ................................................................ 34
1.1 Basis of reporting ....................................................................................... 35
1.2 Significant accounting judgments and estimates ....................................... 38
SECTION 2: PROFIT OR LOSS ............................................................................ 39
2.1 Revenues .................................................................................................... 40
2.2 Vessel operating costs and voyage related expenses ................................ 41
2.3 Staff costs ................................................................................................... 41
2.4 Tax .............................................................................................................. 42
SECTION 3: INVESTED CAPITAL ......................................................................... 44
3.1 Intangible assets ......................................................................................... 45
3.2 Tangible assets & right-of-use assets ......................................................... 46
3.3 Depreciations and amortiSations ............................................................... 50
3.4 Investments in joint ventures ..................................................................... 51
3.5 Business Combination ................................................................................ 52
SECTION 4: WORKING CAPITAL ........................................................................ 53
4.1 Receivables and prepayments.................................................................... 54
4.2 Inventories ................................................................................................. 55
4.3 Restricted cash ........................................................................................... 55
4.4 Trade and other payables........................................................................... 56
SECTION 5: CAPITAL STRUCTURE ..................................................................... 57
5.1 Financial items ............................................................................................ 58
5.2 Lease liabilities ............................................................................................ 59
5.3 Risks arising from financial instruments ..................................................... 61
5.4 Financial instruments by category .............................................................. 62
5.5 Derivative financial instruments ................................................................. 64
SECTION 6: OTHER NOTES ................................................................................ 69
6.1 Remuneration of management .................................................................. 70
6.2 Fee to the statutory auditors ...................................................................... 70
6.3 Contingent liabilities & Commitments ........................................................ 71
6.4 Other non-operating cash items (cash-flow) .............................................. 72
6.5 Change in working capital (cash-flow) ........................................................ 72
6.6 Changes in liabilities (cash flow) ................................................................. 73
6.7 Related party disclosures ............................................................................ 74
6.8 Share capital ............................................................................................... 74
6.9 Events after the balance sheet date ........................................................... 74
6.10 Group structure ........................................................................................ 75
PARENT COMPANY FINANCIAL STATEMENTS ................................................... 76
Profit or loss ...................................................................................................... 77
Balance sheet .................................................................................................... 78
Statement of changes in equity ........................................................................ 78
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 34
SECTION 1: BASIS OF PREPARATION
1.1 Basis of reporting
1.2 Significant accounting judgements and estimates
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 35
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 2024 have been prepared in
accordance with IFRS Accounting Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
Measurement basis
The Consolidated Financial Statements have been prepared on the historical cost basis
except certain financial assets and liabilities. These financial assets and liabilities have been
measured at fair value.
The Consolidated Financial Statements have been presented in USD thousands except when
otherwise indicated. The DKK/USD rate applied at 31 December 2024 was 714.29 (2023:
674.47) and the average DKK/USD applied for the year was 689.06 (2023: 689.28).
Apart from the general accounting policies, which are summarised in this note, the Group’s
accounting policies are described in each of the individual notes to the Consolidated Financial
Statements to which they relate.
The accounting policies, as described below and in the respective notes, have been used
consistently in respect of the financial year and the comparative figures.
New and amended accounting standards which are not yet effective
The new and amended standards and interpretations that are issued, but not yet effective,
up to the date of issuance of the consolidated financial statements are either insiginificant
or irrelevant to the Group except of IFRS 18 which will impact presentation and disclosure in
the financial statements and will be effective from 2027. Ultrabulk is currently working to
identify all impacts from the new standard on the financial statements.
Basis of consolidation
The Consolidated Financial Statements comprise the Parent Company 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 2024 NOTES | PAGE 36
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 2024 NOTES | PAGE 37
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 2024 NOTES | PAGE 38
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 3.2)
Significant estimates
Management has made the following estimates which are considered to be significant to
the Consolidated Financial Statements:
Assessing indicators of impairment of right-of-use vessels (note 3.2)
Measurement of non-lease components (note 5.2)
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 39
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 2024 NOTES | PAGE 40
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
2024
2023
Income from freight
1,366,935
1,266,845
Income from time-charter
274,880
214,514
Revenue by type of contract
1,641,815
1,481,359
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 41
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
2024
2023
Bunkers
-362,028
-352,106
Other voyage related expenses
-304,168
-296,903
Voyage related expenses
-666,196
-649,009
Time-Charter hire, short-term leases
-681,639
-579,165
Operating expenses, long-term leases (non-lease
component)
-95,783
-76,422
Time-Charter hire and operating expenses
-777,422
-655,587
Vessel operating costs and voyage related expenses
-1,443,618
-1,304,596
2.3 STAFF COSTS
§ ACCOUNTING POLICIES
Staff costs comprise wages and salaries, including incentives, to onshore employees.
USD thousands
2024
2023
Wages and salaries
-29,159
-26,170
Pensions – defined contribution plans
-1,270
-1,166
Other staff costs
-2,195
-604
Staff costs
-32,624
-27,940
Average number of employees
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 2024 NOTES | PAGE 42
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
2024
2023
Current tax on profit for the year
-6,809
-3,703
Tax on profit for the year
-6,809
-3,703
Adjustments related to previous years – current tax
-214
26
Tax in the income statement
-7,023
-3,677
Computation of effective tax rate (%):
Statutory corporate income tax in Denmark
22.0%
22.0%
Effects from non-deductible expenses
7.2%
0.0%
Effects from Tonnage Tax Scheme
1.2%
-14.7%
Effects of adjustments related to prior years
0.8%
0.0%
Deviation in foreign subsidiaries’ tax rates compared to the
Danish tax rate (net)
0.7%
-0.2%
Effective tax rate
31.9%
7.1%
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 43
§ 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 came into effect from 1 January 2024..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.
The Group has performed an assessment of its potential exposure to Pillar Two income
taxes based on the 2023 country-by-country reporting and 2024 financial information for
the constituent entities in the Group. The Pillar Two effective tax rates in most of the
jurisdictions in which the Group operates is below 15%.
However, the Group will not be exposed significant top-up taxes, as the main source of
income in the Group derives from international shipping, which is exempted. Therefore, any
potential top-up tax would be deemed insignificant. The Group continues to follow Pillar
Two legislative developments, as further countries enact the Pillar Two model rules, to
evaluate the potential future impact on its consolidated results of operations, financial
position and cash flows beginning.
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 44
SECTION 3: INVESTED CAPITAL
3.1 Intangible assets
3.2 Tangible assets & right-of-use assets
3.3 Depreciations and amortizations
3.4 Investments in joint ventures
3.5 Business combination
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 45
3.1 INTANGIBLE ASSETS
§ ACCOUNTING POLICIES
Intangible assets are measured at cost less accumulated amortisation and impairment
losses. Amortisation and impairment losses are included in the income statement.
Goodwill, and other intangible assets with indefinite lives are not subject to amortisation.
Those assets are instead tested annually, or upon indication, for impairment. When carrying
out the impairment test, the carrying values of CGUs are compared to the value in use
(discounted value of future cash flows). If the carrying values are higher, the difference is
charged to the income statement. The value in use is calculated using a valuation model
based on discounted expected future cash flows (DCF-model), based on management’s
projections.
Amortization is provided on a straight-line basis over the expected useful lives of the
assests/ components. The expected useful lives are as follow:
• Customers Relations: 10 years
Amortisation methods, useful lives and residual values are reviewed at each reporting date
and adjusted if appropriate. Intangible assets with finite lives are tested for impairment
upon indication.
For further details, refer to note 3.5.
2024
USD thousands
Customers
Relations
Costs as of 1 January, accumulated
-
Additions through business combinations
45,516
Cost at 31 December, accumulated
45,516
Amortisations at 1 January, accumulated
-
Amortisation
-1,517
Amortisation at 31 December, accumulated
-1,517
Carrying amount 31 December
43,999
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 46
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS
§ ACCOUNTING POLICIES
Tangible assets
Tangible assets are measured at cost less accumulated depreciation and impairment losses.
Cost comprises the purchase price and any costs directly attributable to the acquisition until
the date when the asset is available for use. Instalments and costs incurred during the
construction period on new building contracts are capitalised as they are paid. Borrowing
costs (interest) that are attributable to the construction of the vessels are capitalised and
included as part of the cost. The capitalised value is reclassified from new buildings to vessels
upon delivery from the yard.
Where individual components of an item of tangible assets have different useful lives, they
are depreciated separately. Depreciation is provided on a straight-line basis over the
expected useful lives of the assets/components. The expected useful lives are as follows:
• Vessels: 20 years
• 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 2024 NOTES | PAGE 47
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS (CONTINUED)
§ ACCOUNTING POLICIES
Impairment of tangible assets
The carrying amount of non-current assets is reviewed annually for indicators of
impairment. When there is an indication that assets may be impaired, the recoverable
amount of the asset is determined.
The recoverable amount is the higher of an asset's fair value less expected costs to sell and
its value in use. Value in use is the present value of the future cash flows expected to be
derived from an asset or the cash-generating unit to which the asset belongs. An
impairment loss is recognised if the carrying amount of an asset or a cash-generating unit,
respectively, exceeds the recoverable amount of the asset or the cash-generating unit.
Impairment losses are recognised in the income statement in a separate line item.
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 leased vessels owned by Ultra Summit (joint
venture) are also included in the CGU.
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 48
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS (CONTINUED)
! ACCOUNTING ESTIMATES
ASSESSING INDICATORS OF IMPAIRMENT
Near future climate-related risks are mainly affecting the freight rates of a vessel, as they depend on the environmental classification and performance of the vessel. This was taken into
consideration when determining the freight and time charter rates and when evaluating the vessels’ earning potential in our forecast. Long-term climate-related risks have not been regarded
as a significant factor in the impairment test as most operated vessels are chartered and such risks remain with the owners of the vessels, further in reality the solution for something else than
fossil fuels for the full fleet of Bulk vessels are many years away and Ultrabulk’s fleet age is much younger than the global fleet age.
From a historical perspective, the market in 2024 has generally remained strong, albeit with increased volatility. There have been more rapid shifts in spot and future freight rates from week
to week and even day to day compared to what has previously been seen. However, simultaneously, the average rates have remained profitable. This development is something which is
expected to persist moving forward.
Political factors add a general uncertainty and volatility to freight rates linked to, but not limited to, the Ukraine/Russia war, trade tensions between the United States and China, the ongoing
war in Israel and the surrounding countries. Apart from that management are monitoring the increased volatile weather the world is experiencing resulting in harsh weather and draught in the
Panama Canal as a few examples.
On the other hand, a low newbuilding orderbook for dry cargo carriers does indicate generally healthy market fundamentals, which are expected to keep long- and medium-term freight rates
at a sustainable level. This is underscored by the fact that the sector had large building years of new buildings in 2009-2016 and these vessels from 2009 are now 15 years old and will get older
in the coming years. Further environmental regulations are helping the market as vessels must sail slower to comply with the regulations, this means that supply of tonnage is decreasing, and
management expects this trend to continue. Consequently, the expected long- and medium-term freight rates are expected to continue to generate positive free cash flow supporting the
carrying amount of the right-of-use vessels. As such, no indications of need for impairments were identified.
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 49
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS (CONTINUED)
2024
USD thousands
Vessels
Fixtures,
fittings and
equipment
Right-of-use
assets
Total
Costs as of 1 January, accumulated
-
4,511
441,224
445,735
Additions
49,652
1,038
77,269
127,959
Disposals
-
-2,357
-94,426
-96,784
Remeasurements
-
-
-4,794
-4,794
Cost at 31 December, accumulated
49,652
3,192
419,273
472,116
Depreciation and impairments at
1 January, accumulated
-
-3,941
-262,095
-371,588
Depreciation
-
-630
-131,928
-132,558
Depreciation on disposals
-
2,357
94,426
202,336
Depreciation and impairment at 31
December, accumulated
-
-2,214
-299,597
-301,810
Carrying amount 31 December
49,652
978
119,676
170,306
2023
USD thousands
Fixtures,
fittings and
equipment
Right-of-use
assets
Total
Costs as of 1 January, accumulated
1
4,050
540,741
544,791
Additions
494
99,624
100,118
Disposals
-33
-211,318
-211,351
Remeasurements
-
12,177
12,177
Cost at 31 December, accumulated
4,511
441,224
445,735
Depreciation and impairments at
1 January, accumulated
1
-2,723
-310,724
-313,447
Depreciation
-1,245
-111,616
-112,861
Depreciation on disposals
27
160,245
160,272
Depreciation and impairment at 31
December, accumulated
-3,941
-262,095
-266,036
Carrying amount 31 December
570
179,129
179,699
1
The Cost and Accumulated Depreciation on 1 January 2023 have been adjusted respectively and there is no impact to the carrying
amount of the PPE or profit or loss for the year
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 50
3.3 DEPRECIATIONS AND AMORTISATIONS
§ ACCOUNTING POLICIES
For accounting policies related to depreciations, reference is made to note 3.2 Tangible
assets.
USD thousands
2024
2023
Depreciations on right-of-use assets
-131,928
-111,616
Depreciations on fixture, fittings, and equipment
-630
-1,245
Amortisations on customers relations
-1,517
-
Depreciations and amortisations for the year
-134,075
-112,861
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 51
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
2024
2023
Cost at 1 January
23,825
23,825
Cost at 31 December
23,825
23,825
Value adjustment at 1 January, accumulated
-3,117
-5,288
Distributed dividend
-2,029
-2,724
Share of the result for the year
9
4,895
Value adjustment at 31 December, accumulated
-5,137
-3,117
Carrying amount at 31 December
18,688
20,708
The carrying amount can be specified as follows:
Ultra Summit (Singapore) Pte., Ltd, 50%
18,688
20,708
Key figures for the investment in Joint Ventures (100% basis):
Assets
63,950
70,896
Liabilities
26,576
29,479
Net assets
37,374
41,417
Revenues
10,267
14,463
Profit/loss for the year
18
9,790
Total comprehensive income for the year
18
9,790
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 52
3.5 BUSINESS COMBINATION
Acquisition of CTP Shipping GmbH
On 31 August 2024, the Group completed a share purchase transaction in which the Group
obtained a 50.1% ownership of CTP Shipping GmbH with a purchase option to buy the
remaining 49.9%, and aligns with the Group’s strategy to further expand its size. The
consideration transferred to sellers comprise of a cash payment of USD 31.5 million along
with a contigent consideration, dependent on EBITDA earnings over a 3-year period, with a
possible range of outcomes between USD 15 – 62.5 million.
The Group obtained a controlling interest on the transaction date and CTP Shipping GmbH
is included in its consolidated financials from that point onwards. The impact in 2024 from
the combination on profit and loss was USD 12.8 million. Had the transaction occurred on
1 January 2024, the proforma impact on profit and loss would have been USD 33.4 million.
Transaction costs of USD 1 million has been recognized in the income statement as Other
External Costs.
Net assets acquired are measured at fair value at the acquisition date. The fair value of
intangible assets, which comprise mainly of customer relations, were evaluated using the
Multi-Period Excess Earnings Method.
Working capital comprise receivables of USD 9.9 million at contractual amounts and are
included at a fair value of USD 9.9 million.
The table below comprise the fair value of net identifiable assets at the transaction date:
USD thousands
Intangible assets, customer relations
44,305
Tangible assets
1,045
Working Capital, net
-10,525
Other Assets
38,017
Provisions
-5,450
Fair value of net identifiable assets acquired
67,392
§ ACCOUNTING POLICIES
Business combinations are, unless they constitute combinations of entities under common
control, accounted for using the acquisition method.
The consideration paid comprises the fair values of any assets transferred and/or liabilities
incurred to the former owners, including contingent consideration arrangements.
Identifiable assets and liabilities, including any contingent liabilities assumed, are measured
at fair value at the date of acquisition.
The valuation of the customer relationship is based on identifying, separating, and
qualifying the cash flows attributable to the customer base, and capitalizing them.
The Earn-out is accrued over the period from the acqusition date until the payment is
conditional based on expected achieved performance. The cost is recognized as wages and
salaries in the income statement. A part of the earn-out is already recognised as part of the
acqusition price as it was dependent on permance prior to the acquisition date.
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 53
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 2024 NOTES | PAGE 54
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
2024
2023
Customers (trade receivables)
77,870
55,879
Contract assets
42,460
31,244
Other receivables
21,374
27,268
Trade and other receivables
141,704
114,391
Receivables from related companies
3,166
829
Receivables from related companies
3,166
829
Prepayments
31,783
34,270
Prepayments
31,783
34,270
Trade and other receivables, prepayments, loans to related
companies and receivables from related companies
176,653
149,490
Maturity analysis for trade receivables:
- Receivables not due
35,316
25,543
- Less than 90 days
39,685
28,409
- Between 91 days and 180 days
3,358
3,249
- Between 181 days and 360 days
1,162
1,329
- More than 360 days
2,995
2,665
Carrying amount of trade receivables excluding provisions
82,516
61,195
Provisions at 31 December
-4,646
-5,316
Carrying amount of trade receivables
77,870
55,879
Change in provision for trade receivables:
Provision at 1 January
5,316
8,728
Net change in provision
-670
-3,412
Provision 31 December
4,646
5,316
Trade receivables are non-interest bearing and are generally fall due within 5 – 30 days.
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 55
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
2024
2023
Bunkers
30,049
35,990
Bunker expenses recognised in the profit or loss
362,028
352,106
A part of the future bunker consumption has been hedged through derivatives in
accordance with the Group’s risk management policy. This is further described in note 5.3
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
2024
2023
Cash and cash equivalents
63,804
128,543
Restricted cash in the form of deposits with clearing houses
18,003
7,826
Cash and cash equivalents, including restricted cash
81,807
136,369
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 2024 NOTES | PAGE 56
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
2024
2023
Trade payables
80,625
44,719
Accruals and other payables
26,989
35,648
Contract liabilities
42,128
41,386
Trade and other payables
149,742
121,753
Payables to related parties
3,257
2,090
Payables to related parties
3,257
2,090
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 2024 NOTES | PAGE 57
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 2024 NOTES | PAGE 58
5.1 FINANCIAL ITEMS
§ ACCOUNTING POLICIES
Financial income and expenses comprise interest income and expense as well as exchange
rate differences from transactions denominated in foreign currencies.
USD thousands
2024
2023
Interest income
5,369
7,593
Gain from modification of lease liabilities
256
1,092
Exchange rate differences
3,237
1,269
Financial income
8,862
9,954
Interest expenses
-13
-98
Interest expenses on lease liabilities
-8,067
-6,466
Other financial items, net
-75
-99
Financial expenses
-8,155
-6,663
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 59
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 2024 NOTES | PAGE 60
5.2 LEASE LIABILITIES (CONTINUED)
The development in lease liabilities are explained in the table below:
USD thousands
2024
2023
Lease liabilities 1 January
186,291
243,132
Additions for the period
77,269
99,624
Remeasurements
-5,434
-40,945
Instalments made
-134,156
-115,520
Lease liabilities 31 December
123,970
186,291
Non-current portion
38,603
44,567
Current portion
85,367
141,724
Lease liabilities 31 December
123,970
186,291
Of the total lease liabilities, USD 39 million (2023: USD 44 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 248 million (2023: USD 129 million).
The total cash outflow from leases in 2024 were USD 900 million (2023: USD 775 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.
! 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 2024 NOTES | PAGE 61
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 2024 NOTES | PAGE 62
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 2024 NOTES | PAGE 63
5.4 FINANCIAL INSTRUMENTS BY CATEGORY (CONTINUED)
Tables with carrying amount of financial items by class of financial assets and liabilities
31 December 2024
USD thousands
0-1 Year
1-5 Years
Contractual
cash flow
Carrying
amount
Recognised at amortised cost
Trade and other payables
149,742
149,742
149,742
Payables to- and loans from related
companies
3,257
3,257
3,257
Lease liabilities
88,788
41,952
130,740
123,970
Other liabilities
47,757
47,757
47,757
Total
241,787
89,709
331,496
324,726
Recognised at fair value
Financial guarantee contracts
12,892
12,892
Derivative financial instruments
11,856
3,712
15,568
15,568
Total
24,748
3,712
28,460
15,568
Total financial liabilities
266,535
93,421
359,956
340,294
Recognised at amortised cost
Trade and other receivables
141,704
141,704
141,704
Receivables from related companies
3,166
3,166
3,166
Cash and restricted cash
81,807
81,807
81,807
Total
226,677
226,677
226,677
Recognised at fair value
Derivative financial instruments
5,349
786
6,135
6,135
Total
5,349
786
6,135
6,135
Total financial assets
232,026
786
232,812
232,812
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
295,186
49,183
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
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 64
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 2024 NOTES | PAGE 65
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 2024 NOTES | PAGE 66
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. 92% of the nominal value is
realised within 1 year and 8% is realised within 1-3 years. The nominal value at the end of
the year is USD 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. 75% of the nominal value is realised within 1 year and 25% is
realised within 1-5 years. The nominal value as the end of the year is USD 86 million and a
drop in the Baltic Dry rates of 10% will have a negative impact on equity of USD 8.6 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 2024 NOTES | PAGE 67
5.5 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Overview of derivative financial instruments at year-end
31 December 2024
USD millions
Nominal
value
Net Sell
Days/MT
Duration
Months
Recognised
on equity
Fair value
Hedge accounting applied
FX hedges (USD/DKK)
19.3
-
1-36
-1.4
-1.2
FFA hedges (Days)
84.4
6,600
1-36
-12.7
-9.6
Bunker hedges (MT)
35.4
73,204
1-60
0.1
1.1
Hedge accounting not applied
FFAs (Days)
1.3
90
1-36
0.2
Net fair value of derivative instruments
-9.5
USD millions
Fair value
Presentation in the Consolidated Financial Statement as:
Derivative financial instruments, non-current assets
0.8
Derivative financial instruments, current asset
5.3
Derivative financial instruments, non-current liabilities
-3.7
Derivative financial instruments, current liabilities
-11.9
Net fair value of derivative financial instruments
-9.5
31 December 2023
USD millions
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 swaps (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 millions
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
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 68
5.5 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Net amount recognised in Other Comprehensive Income
USD millions
2024
2023
Effective portion of changes in fair value from:
FX hedges
-1.5
-1.0
Bunker hedges
-2.4
6.0
FFA hedges
-22.2
-5.2
Cash deposits designated as cash flow hedges
0.3
-4.5
Amounts reclassified to profit and loss:
FX hedges reclassified to financial items
0.1
0.1
Bunker hedges reclassified to voyage related expenses
2.5
-4.9
FFA hedges reclassified to revenue
9.6
5.0
Net amount recognised in Other Comprehensive Income
-13.6
-4.5
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 69
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 2024 NOTES | PAGE 70
6.1 REMUNERATION OF MANAGEMENT
Key management personnel
Key management comprises the Executive Management and the Board of Directors
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
2024
2023
Fixed salaries
893
884
Pensions – defined contribution plans
59
57
Incentive payments (cash based)
389
649
Total remuneration for the Executive Management
1,341
1,590
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.
6.2 FEE TO THE STATUTORY AUDITORS
The total fee expensed in the year for statutory auditors breaks down as follows:
USD thousands
2024
2023
Statutory audit
311
222
Tax assurance services
26
4
Other services
1
2
Fees to statutory auditors
338
228
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 71
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
2024
2023
Guarantees
Ultrabulk has issued guarantees for loans to joint ventures
12,892
14,455
Total
12,892
14,455
Short term leases and low value leases
The Group has recognized right-of-use assets in line with IFRS 16, except for short term and
low value leases. The table below summarises future commitments on short term and low
value leases which are entered at year-end:
USD thousands
2024
2023
Short term leases and low value leases
102,549
113,124
Total
102,549
113,124
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
2024
2023
COAs and Time Charter commitments as service provider
Within one year
131,105
145,471
Between 1 – 5 years
132,102
122,975
More than 5 years
79,550
2,836
Total
342,757
271,282
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 72
6.4 OTHER NON-OPERATING CASH ITEMS
(CASH-FLOW)
USD thousands
2024
2023
Gain on sale of vessels, plant, and equipment
-6,434
-21,819
Depreciation and impairment loss
134,075
112,861
Share of gain/loss in joint venture
-9
-4,895
Interest expenses on lease liabilities
8,067
6,498
Modification of lease liabilities
-256
-1,092
Net forward contract activity
-648
35
Economic trade
110
439
Other non-cash operating items
6,411
-4,006
Total
141,316
88,021
6.5 CHANGE IN WORKING CAPITAL
(CASH-FLOW)
USD thousands
2024
2023
Change in receivables
-28,102
5,999
Change in inventories
5,941
2,165
Change in liabilities
29,157
-40,098
Total
6,996
-31,934
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 73
6.6 CHANGES IN LIABILITIES (CASH FLOW)
Changes in liabilities arising from finance activities
2024
USD thousands
1 January
Cash flow
Other
31 December
Lease liabilities
186,291
-134,156
71,835
123,970
Total liabilities from financing activities
186,291
-134,156
71,835
123,970
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
The category ‘Other’ comprise primarily of additions and remeasurements of lease liabilities. Reference is made to note 5.2 – Lease liabilities.
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 74
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
2024
2023
2024
2023
Related companies
Charter hire
16,781
8,509
Management fee income
965
688
Management fee expense
-2,440
-2,536
Other receivables and payables
-91
-2,124
Joint Ventures and Associates
Charter hire
-10,319
-14,266
Management fee income
45
98
Guarantees
12,892
14,455
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
After the balance sheet date, the Group has exercised its purchase option to acquire the
remaining 49.9% ownership interest in CTP Shipping GmbH, bringing its total ownership to
100% in 2027. Reference is made to note 3.5 to the Consolidated Financial Statements with
regards to a business combination. No further events occurred after the balance date that
materially affect the financial position of the group.
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 75
6.10 GROUP STRUCTURE
GROUP STRUCTURE | PAGE 73
ULTRABULK ANNUAL REPORT 2024
ULTRABULK ANNUAL REPORT 2024 NOTES | PAGE 76
PARENT COMPANY FINANCIAL STATEMENTS
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 77
PROFIT OR LOSS
USD thousands
Note
2024
2023
Revenue
2
946,167
886,125
Vessel operating costs and voyage related expenses
-916,180
-847,205
Gross profit (Net earnings from shipping activities)
29,987
38,920
Other external expenses
3
-14,712
-20,017
Staff costs
4
-9,568
-7,174
Operating profit before depreciation and impairment loss (EBITDA)
5,707
11,729
Profit from sale of tangible assets
6,753
15,900
Depreciation
-520
-1,224
Operating profit (EBIT)
11,940
26,405
Share of subsidiaries’ profit after tax
7
1,866
19,915
Other financial items, net
977
4,943
Profit before tax
14,783
51,263
Tax
5
-2,676
-2,798
Net result
12,107
48,465
Proposal for the distribution of net result:
Reserve for net revaluation according to equity method
1,866
19,915
Retained earnings
10,241
-6,450
Proposed dividend
-
35,000
Net result
12,107
48,465
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 78
BALANCE SHEET
ASSETS
USD thousands
Note
2024
2023
Vessels
6
24,517
-
Fixtures, fittings, and equipment
6
48
568
Tangible assets
24,565
568
Investments in subsidiaries
7
117,078
159,646
Derivative financial instruments
13
786
2,982
Deposit
177
162
Financial assets, non-current
118,041
162,790
Total non-current assets
142,606
163,358
Inventories
19,118
19,051
Trade and other receivables
8
73,615
63,337
Receivables from related companies
1,976
4,187
Prepayments
21,312
20,705
Income tax receivables
336
-
Derivative financial instruments
13
5,349
16,560
Cash and short-term deposits, including restricted cash
15
33,695
103,828
Total current assets
155,401
227,668
TOTAL ASSETS
298,007
391,026
EQUITY AND LIABILITIES
USD thousands
Note
2024
2023
Share capital
9
5,134
5,134
Revaluation reserve according to the equity method
175,550
95,884
Cash flow hedge reserves
-9,976
2,789
Retained earnings
12,916
82,531
Proposed dividend
-
35,000
Total equity
183,624
221,338
Other liabilities
5,278
-
Derivative financial instruments
13
3,712
3,526
Total non-current liabilities
8,990
3,526
Trade and other payables
10
70,738
67,791
Payables to related companies
22,799
84,910
Derivative financial instruments
13
11,856
10,784
Income tax payable
-
2,677
Total current liabilities
105,393
166,162
Total liabilities
114,383
169,688
TOTAL EQUITY AND LIABILITIES
298,007
391,026
STATEMENT OF CHANGES IN EQUITY
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 79
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 2024
5,134
2,789
95,884
82,531
35,000
221,338
Net result
-
-
1,866
10,241
-
12,107
Dividend received from subsidiaries
-
-
79,856
-79,856
-
-
Dividend paid to shareholders
-
-
-
-
-35,000
-35,000
Fair value adjustments
-
-12,765
-869
-
-
-13,634
Foreign exchange adjustments on net
investments in foreign operations
-
-1,187
-
-
-1,187
Other adjustments
-
-
-
-
-
-
Equity as 31 December 2024
5,134
-9,976
175,550
12,916
-
183,624
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
2,562
80,734
118,981
150,000
357,411
Net result
-
-
19,915
-6,450
35,000
48,465
Dividend received from subsidiaries
-
-
-
-30,000
30,000
-
Dividend paid to shareholders
-
-
-
-
-180,000
-180,000
Fair value adjustments
-
227
-4,765
-
-
-4,538
Other adjustments
-
-
-
-
-
-
Equity as 31 December 2023
5,134
2,789
95,884
82,531
35,000
221,338
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 80
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 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 81
NOTE 2 – REVENUE
USD thousands
2024
2023
Income from freight
659,616
706,868
Income from time charter
286,551
179,257
Revenue by type of contract
946,167
886,125
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
2024
2023
Salaries
-7,277
-5,409
Pensions – defined contribution plan
-973
-954
Other staff costs
-1,318
-811
Total
-9,568
-7,174
Average number of employees
88
89
With regards of remunuration of management, please refer to note 6.1 in the Consolidated
Financial Statements.
NOTE 5 – TAX
USD thousands
2024
2023
Current tax on profit for the year
-2,607
-2,798
Tax on profit for the year
-2,607
-2,798
Adjustments related to previous years – current tax
-69
-
Tax in the income statement
-2,676
-2,798
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 82
NOTE 6 – TANGIBLE ASSETS
2024
USD thousands
Vessels
Fixtures,
fittings and
equipment
Total
Cost at 1 January
-
4,319
4,319
Additions for the year
24,517
-
24,517
Disposals
-
-2,357
-2,357
Cost at 31 December
24,517
1,962
26,479
Depreciation at 1 January, accumulated
-
-3,751
-3,751
Depreciation for the year
-
-520
-520
Depreciation on disposals
-
2,357
2,357
Depreciations at 31 December, accumulated
-
-1,914
-1,914
Carrying amount at 31 December
24,517
48
24,565
2023
USD thousands
Vessels
Fixtures,
fittings and
equipment
Total
Cost at 1 January
-
3,824
3,824
Additions for the year
-
495
495
Disposals
-
-
-
Cost at 31 December
-
4,319
4,319
Depreciation at 1 January, accumulated
-
-2,527
-2,527
Depreciation for the year
-
-1,224
-1,224
Depreciation on disposals
-
-
-
Depreciations at 31 December, accumulated
-
-3,751
-3,751
Carrying amount at 31 December
-
568
568
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 83
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
2024
2023
Cost at 1 January
16,982
16,958
Additions
36,784
24
Cost at 31 December
53,766
16,982
Value adjustment at 1 January
141,180
126,030
Share of result for the year
1,866
19,915
Dividends
-79,856
-
Change in equity in subsidiaries
122
-4,765
Value adjustment 31 December
63,312
141,180
Carrying amount
117,078
158,162
The carrying amount can be specified as follows:
Investment in subsidiaries
117,078
159,646
Negative equity in subsidiaries, deducted in intercompany
receivables
-
-1,484
Carrying amount
117,078
158,162
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%
CTP Shipping GmbH
50.1%
-
Ultrabulk Japan K.K.
100%
100%
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 84
NOTE 8 – TRADE AND OTHER RECEIVABLES
USD thousands
2024
2023
Customers (trade receivables)
62,594
48,424
Other receivables
11,021
14,913
Total
73,615
63,337
NOTE 9 – SHARE CAPITAL
Share capital
Please refer to note 6.8 of the Consolidated Financial Statements.
NOTE 10 – TRADE AND OTHER PAYABLES
USD thousands
2024
2023
Trade payables
27,411
18,211
Accruals and other payables
17,649
25,260
Deferred income
25,678
24,320
Total
70,738
67,791
NOTE 11 – CONTINGENT LIABILITIES
USD thousands
2024
2023
Guarantees
Ultrabulk A/S has issued guarantees for loans to joint venture
and associated company
12,892
14,455
Ultrabulk A/S has issued guarantees for time charter hires to
subsidiaries
62,568
138,886
Total
75,460
153,341
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 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 85
NOTE 12 – 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
2024
2023
Operating leases
Within one year
118,083
99,843
Between 1 – 5 years
31,275
24,442
Total
149,358
124,285
USD thousands
2024
2023
COAs and Time Charter commitments as service provider
Within one year
80,547
91,818
Between 1 – 5 years
119,786
106,631
More than 5 years
79,550
2,836
Total
279,883
201,285
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 86
NOTE 13 – FINANCIAL INSTRUMENTS
For accounting policies, reference is made to note 5.5 in the Consolidated Financial
Statements.
Hedging of bunker expenses
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. 92% of the nominal value is
realised within 1 year and 8% is realised within 1-3 years. The nominal value at the end of
the year is USD 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. 75% of the nominal value is realised within 1 year and 25% is
realised within 1-5 years. The nominal value as the end of the year is USD 86 million and a
drop in the Baltic Dry rates of 10% will have a negative impact on equity of USD 8.6 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 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 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 87
NOTE 14 – 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 15 – RESTRICTED CASH
Restricted cash in terms of deposits in favor of clearinghouses (Macquarie and BNP Paribas)
amounts to USD 18,0 million (2023: USD 7.8 million).
NOTE 16 – SUBSEQUENT EVENTS
For subsequent events, reference is made to note 6.9 in the Consolidated Financial
Statements.
ULTRABULK ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 88