f
CVR.no. 38 28 37 15
2025
Annual Report
Ultrabulk A/S
ULTRABULK ANNUAL REPORT 2025 ULTRABULK AT A GLANCE | PAGE 2
TABLE OF CONTENTS
Management’s Review ...................................................................................... 3
About Ultrabulk .................................................................................................. 4
2025 Highlights ................................................................................................... 5
Group key figures and ratios .............................................................................. 6
Financial performance and Expectations ........................................................... 7
Corporate governance ..................................................................................... 10
Signatures ........................................................................................................ 11
Statement by the Board of Directors and Executive Management ................. 12
Independent Auditor’s Report ......................................................................... 13
Consolidated financial statement .................................................................... 16
Consolidated income statement ....................................................................... 17
Consolidated balance sheet .............................................................................. 18
Consolidated statement of cash flows .............................................................. 19
Consolidated statement of changes in equity .................................................. 20
Notes to the consolidated financial statements ............................................... 21
PARENT COMPANY FINANCIAL STATEMENTS ................................................... 63
Parent Company - Income Statement .............................................................. 64
Parent Company - Balance sheet ...................................................................... 65
Parent Company - Statement of changes in equity .......................................... 66
Notes to the Parent Company Financial Statement ......................................... 67
ULTRABULK ANNUAL REPORT 2025 ULTRABULK AT A GLANCE | PAGE 3
MANAGEMENT’S REVIEW
ULTRABULK ANNUAL REPORT 2025 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.
Ultrabulk’s customers are served from ten 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.
Customer relationships, cargo contracts, tonnage
procurement and risk management make up the
vital core of the Ultrabulk business model.
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.
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 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.
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.
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
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.
Sustainability
Statement on corporate responsibility, cf Danish
Financial statements Act, § 99b
Ultrabulk is committed to supporting the climate
targets established by Ultranav. Detailed
information about Ultranav International ApS’
initiatives in climate and environmental
responsibility, people, and anti-corruption can be
found in our sustainability report. The report is
available at the following URL:
ULTRABULK ANNUAL REPORT 2025 ULTRABULK AT A GLANCE | PAGE 5
2025 HIGHLIGHTS
A volatile and difficult year in Ultrabulk
The dry bulk market conditions deteriorated slightly
in 2025 compared to 2024 with the S10TC Baltic
Index ending at a USD 12,241 per day average on
the year vs USD 13,600 the year before with highs
close to 17,000 and lows just above 5,000. At the
same time, the market continued to be difficult to
foresee, mostly because of geopolitical tensions
having a massive effect on market sentiment in
specific areas. All in all, Ultrabulk had a difficult year
in 2025.
Total physical ship days in 2025 were 66,147 days,
around 5 % up from the 63,618 days in 2024. This
marks the highest fleet size so far in Ultrabulk. Cargo
lifted was 58.9 million tons in 2025 which is also a
record in the company, but just slightly over the
2024 numbers.
Our operational business had a difficult year in 2025
and performed much lower than expected. We
experienced two major corrections, the first
occurring from mid-January to mid-February and
the second extending through Q3–Q4, and in
neither instance was our positioning as we had
hoped. On the other hand, we were able to execute
on a few vessel sales which contributed positively to
the result.
2026 Outlook
Based on the Group’s current position, and the
expected market conditions, the Group expects net
result of the Group and the parent company in the
range of USD 0-10 million.
ULTRABULK ANNUAL REPORT 2025 FINANCIAL REVIEW | PAGE 6
GROUP KEY FIGURES AND RATIOS
INCOME STATEMENT (USD '000)
2025
2024
2023
2022
2021
Revenue
1,594,699
1,641,815
1,481,359
2,143,813
1,762,814
Gross profit
134,160
198,197
176,684
304,018
258,190
Operating profit before depreciation, amortization and impairment loss (EBITDA)
61,055
148,925
139,909
256,870
225,485
Operating profit (EBIT)
-32,903
21,293
53,762
179,210
88,621
Net financials
-6,913
707
3,261
-6,001
-11,586
Profit before tax
-40,675
22,000
57,023
172,834
76,660
Net result
-47,969
14,977
53,346
171,595
74,997
STATEMENT OF FINANCIAL POSITION (USD '000)
Non-current assets
252,885
234,103
203,696
251,859
256,483
Current assets
314,418
293,858
338,409
501,986
374,391
Total assets
567,303
527,961
542,105
753,845
630,874
Equity
141,876
179,065
213,911
345,101
200,451
Non-current liabilities
163,017
90,072
48,093
88,022
126,615
Current liabilities
262,410
258,824
280,101
320,722
303,808
Net interest-bearing (liabilities)/assets, including leases
-61,074
-42,163
-49,925
60,952
-106,046
Net interest-bearing (liabilities)/assets, excluding leases
106,316
81,807
136,369
304,084
134,298
Cash and cash equivalents, including restricted cash
104,040
81,807
136,369
304,084
92,461
CASH FLOW (USD '000)
From operating activities
99,942
162,771
113,665
290,093
206,134
From investing activities
54,962
-50,587
23,935
128,243
-33,947
- of which relates to investment in tangible assets
-59,328
-95,829
-106,656
-64,033
-1,008
From financing activities
-116,892
-177,223
-302,018
-186,415
-182,464
Total net cash flow
38,012
-65,039
-164,418
231,921
-10,277
Change in restricted cash
15,779
-10,177
-1,216
24,510
-25,992
Total net cash flow, excluding changes in restricted cash
22,233
-54,862
-163,204
207,411
15,715
FINANCIAL RATIOS
Gross profit margin
8.4%
12.1%
11.9%
14.2%
14.6%
EBITDA margin
3.8%
9.1%
9.4%
12.0%
12.8%
Return on equity (ROE)
-33.8%
8.4%
24.9%
49.7%
44.7%
Equity ratio
25.0%
33.9%
39.5%
45.8%
31.8%
Physical ship days in the year
66,290
63,618
61,575
63,208
58,906
ULTRABULK ANNUAL REPORT 2025 FINANCIAL REVIEW | PAGE 7
FINANCIAL PERFORMANCE
Results
Revenue amounted to USD 1,595 million, a 2.9%
decrease from last year’s revenue. The decrease in
revenue is linked to the market conditions in 2025.
Gross profit was USD 134 million, which is a
decrease from USD 198 million last year,
corresponding to a gross margin of 8.4% against
12.1% in 2024.
EBITDA was USD 61 million (USD 149 million in
2024), corresponding to an EBITDA margin of 3.8%
(9.1% in 2024).
Depreciations amounted to USD 111 million against
USD 134 million in 2024. Depreciations mainly
relate to right-of-use vessels.
Gain from sale of vessels amounted to USD 14
million against USD 6 million in 2024.
Financial items amounted to a net loss of USD 8
million against a net income of USD 1 million in
2024. Most financial items relate to interest income
and interest expenses on lease liabilities.
Income tax amounted to USD 7 million that is on par
with prior year.
Net result amounted to a loss of USD 48 million,
down from USD 15 million in 2024, which is below
the expected range set out last year of USD 10 to 20
million.
Cash flow
The cash flow, excluding movements in restricted
cash, was a cash inflow of USD 22 million against an
outflow of USD 55 million last year.
Cash flow from operating activities were an inflow
of USD 115 million (USD 163 million in 2024), mainly
related to cash generated from the shipping
activities.
Cash flow from investing activities were an inflow of
USD 40 million, against an inflow USD 51 million in
2024, driven by investment in vessels.
Cash flow from financing activities were an outflow
of USD 117 million (USD 177 million in 2024) which
comprise of dividends paid to shareholders and
repayment of lease liabilities.
Balance sheet
Total assets amounted to USD 567 million, against
USD 528 million in 2024.
Non-current assets totalled USD 253 million (USD
234 million in 2024) of which USD 163 million was
Right-of-use assets (USD 120 million in 2024).
Current assets totalled USD 314 million (USD 294
million in 2024). The cash, including restricted cash,
amounted USD 104 million at the end of 2025
against USD 82 million last year.
Total liabilities amounted to USD 425 million
compared to USD 349 million in 2024. The main part
of the liabilities comprised of lease liabilities which
amounted to USD 167 million (USD 186 million at
the end of 2024).
Total equity amounted to USD 142 million (USD 179
million in 2024), driven by the result of the year.
Return on equity was -33.8% (8.4% in 2024) and
equity ratio was 25.0% at the end of 2025 (33.9% at
the end of 2024).
ULTRABULK ANNUAL REPORT 2025 OUR BUSINESS | PAGE 8
RISK MANAGEMENT
The following section provides a review of the risks
that are considered material to Ultrabulk.
Reference is also made to note 5.4 for a review of
financial risks to which Ultrabulk is exposed through
its activities.
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:
• Time charter of vessels
• Contracts of Affreightment (cargo contract
containing multiple cargoes, or “CoA”)
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.
IT & Cybersecurity 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 use 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
platforms and data available to users at all times,
without compromising IT security, the Group has
ULTRABULK ANNUAL REPORT 2025 OUR BUSINESS | PAGE 9
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 run 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.
ULTRABULK ANNUAL REPORT 2025 OUR BUSINESS | PAGE 10
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 2025,
unchanged from 2024. In 2026, 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 2025 OUR BUSINESS | PAGE 11
SIGNATURES
ULTRABULK ANNUAL REPORT 2025 SIGNATURES | PAGE 12
STATEMENT BY THE BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
ULTRABULK ANNUAL REPORT 2025 SIGNATURES | PAGE 13
INDEPENDENT AUDITOR’S REPORT
Opinion
Basis for opinion
ULTRABULK ANNUAL REPORT 2025 SIGNATURES | PAGE 14
INDEPENDENT AUDITOR’S REPORT
ULTRABULK ANNUAL REPORT 2025 SIGNATURES | PAGE 15
INDEPENDENT AUDITOR’S REPORT
CVR no. 33 77 12 31
ULTRABULK ANNUAL REPORT 2025 SIGNATURES | PAGE 16
CONSOLIDATED FINANCIAL STATEMENT
ULTRABULK ANNUAL REPORT 2025 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 17
CONSOLIDATED INCOME STATEMENT
PROFIT OR LOSS
1 JANUARY – 31 DECEMBER
USD thousands
Note
2025
2024
Revenue
2.1
Voyage related expenses and operating costs
2.2
-1,460,539
-1,443,618
Gross profit
Other income
Other external expenses
6.2
-24,944
-17,628
Staff costs
2.3
-48,161
-32,591
Operating profit before depreciation (EBITDA)
Depreciations
3.3
-111,221
-134,075
Gain/(loss) from sale of vessels, net
Share of Joint Ventures’ profit after tax
3.4
Operating profit (EBIT)
-32,903
Financial income
5.1
Financial expenses
5.1
-9,642
-8,079
Profit before tax
-40,675
Tax
2.4
-7,294
-7,023
Profit/loss for the period
-47,969
STATEMENT OF OTHER COMPREHENVISE INCOME
1 JANUARY – 31 DECEMBER
USD thousands
Note
2025
2024
Net result
-47,969
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
Translation from functional currency to presentation
currency
-1,189
Other comprehensive income, net of tax
-14,823
Total comprehensive income
-37,189
ULTRABULK ANNUAL REPORT 2025 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 18
CONSOLIDATED BALANCE SHEET
ASSETS
USD thousands
Note
2025
2024
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
Investments in associates
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
2025
2024
Share capital
6.8
Retained earnings
Other reserves
-2,122
-12,902
Total equity
Interest bearing loans and borrowings
5.2
Derivative financial instruments
5.5
Lease liabilities
5.3
Trade and other payables
4.4
Total non-current liabilities
Trade and other payables
4.4
Payables to related companies
4.4
Interest bearing loans and borrowings
5.2
Lease liabilities
5.3
Derivative financial instruments
5.5
Income tax payable
Total current liabilities
Total liabilities
Total equity and liabilities
ULTRABULK ANNUAL REPORT 2025 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 19
CONSOLIDATED STATEMENT OF CASH FLOWS
Amount in USD thousands
Note
2025
2024
Operating profit (EBIT)
-32,903
Tax effect
-2,172
Adjustment of other non-cash operating items
6.4
Change in working capital
6.5
Net cash flows from operating activities
Investments in tangible assets
-59,328
-95,829
Sale of tangible assets
Other financial items
-4,000
Interest Income
Acquisition of subsidiaries
-5,874
Change in restricted cash
4.3
-10,177
Net cash flow from investing activities
-50,587
Free cash flow
Dividends paid to equity holders
-35,000
Payment of other liabilities
-18,994
Repayment of lease liabilities
6.6
-102,770
-134,156
Raising of loans from financial institutions
6.6
Repayment of loans to financial institutions
6.6
-1,320
Interest payments on loans and lease liabilities
-8,808
-8,067
Net cash flows from financing activities
-116,892
-177,223
Net change in cash and cash equivalents
-65,039
-164,418
Cash and cash equivalents at 1 January
Net change in cash and cash equivalents
-65,039
Revaluation of cash deposits in foreign currencies
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
81,807
ULTRABULK ANNUAL REPORT 2025 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 20
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 2025
-1,189
-11,713
Distribution of net result
-47,969
-47,969
Derivatives designated as cash flow hedges
Exchange adjustments on net investments
-784
Other comprehensive income for the year
Total comprehensive income for the year
-47,969
-37,189
Distributed dividend
Transactions with shareholders
Equity as 31 December 2025
-2,122
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
ULTRABULK ANNUAL REPORT 2025 CONSOLIDATED FINANCIAL STATEMENTS | PAGE 21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SECTION 1: BASIS OF PREPARATION ................................................................ 22
1.1 Basis of reporting ....................................................................................... 23
1.2 Significant accounting judgments and estimates ....................................... 26
SECTION 2: PROFIT OR LOSS ............................................................................ 27
2.1 Revenue ...................................................................................................... 28
2.2 Voyage related expenses and operating costs ........................................... 29
2.3 Staff costs ................................................................................................... 29
2.4 Tax .............................................................................................................. 30
SECTION 3: INVESTED CAPITAL ......................................................................... 32
3.1 Intangible assets ......................................................................................... 33
3.2 Tangible assets & right-of-use assets ......................................................... 34
3.3 Depreciations and amortiSations ............................................................... 38
3.4 Investments in joint ventures ..................................................................... 39
SECTION 4: WORKING CAPITAL ........................................................................ 40
4.1 Receivables and prepayments.................................................................... 41
4.2 Inventories ................................................................................................. 42
4.3 Restricted cash ........................................................................................... 42
4.4 Trade and other payables........................................................................... 43
SECTION 5: CAPITAL STRUCTURE ..................................................................... 44
5.1 Financial items ............................................................................................ 45
5.2 INTEREST BEARING LOANS AND BORROWINGS ......................................... 45
5.3 Lease liabilities ............................................................................................ 46
5.4 Risks arising from financial instruments ..................................................... 48
5.5 Financial instruments by category .............................................................. 49
5.6 Derivative financial instruments ................................................................. 51
SECTION 6: OTHER NOTES ................................................................................ 56
6.1 Remuneration of management .................................................................. 57
6.2 Fee to the statutory auditors ...................................................................... 57
6.3 Contingent liabilities & Commitments ........................................................ 58
6.4 Other non-operating cash items (cash-flow) .............................................. 59
6.5 Change in working capital (cash-flow) ........................................................ 59
6.6 Changes in liabilities (cash flow) ................................................................. 60
6.7 Related party disclosures ............................................................................ 61
6.8 Share capital ............................................................................................... 61
6.9 Events after the balance sheet date ........................................................... 61
6.10 Group structure ........................................................................................ 62
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 22
SECTION 1: BASIS OF PREPARATION
1.1 Basis of reporting
1.2 Significant accounting judgements and estimates
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 23
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 2025 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 2025 was 635.27 (2024:
714.29) and the average DKK/USD applied for the year was 662.10 (2024: 689.06).
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. However, some
comparitive figures in the notes to the consolidated financial statements have been adjusted
to enhance comparability. These adjustments have not been impacting on the overall
financial position of the Group
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 has assed the impact of
the new standard on the financial statements and the consequences are minor.
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 including the business combination from
2024, c.f. note 3.5 in last year’s financial statement.
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. If future
voting rights are exercised, any related non‑controlling interest will not be recognized
separately but will be fully consolidated.
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 2025 NOTES | PAGE 24
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 2025 NOTES | PAGE 25
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 2025 NOTES | PAGE 26
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 revenue,
expenses, assets, and liabilities and the disclosure of contingent liabilities, at the end of the
reporting period. However, uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amounts of asset and
liability affected in future periods.
Significant judgements
In the process of applying the accounting policies, management has made the following
judgements which are considered to be significant to the Consolidated Financial
Statements:
Determination of Cash-generating unit (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 intangible and tangible assets (note 3.2)
Measurement of non-lease components (note 5.3)
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 27
SECTION 2: PROFIT OR LOSS
2.1 Revenue
2.2 Voyage related expenses and operating costs
2.3 Staff costs
2.4 Tax
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 28
2.1 REVENUE
§ ACCOUNTING POLICIES
Revenue
Revenue from freight and time-charter are over time recognised as the services are
rendered based the percentage of completion method. According to the method, revenue
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.
Revenue from goods are recognised when control of the goods passes to the customer,
provided it is probable that the economic benefits will flow to the company and the amount
of revenue can be measured reliably.
Realised gains and losses on derivatives, which are accounted for as hedges of revenue
transactions, are recognised in revenue.
Disaggregation of revenue
Revenue 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
2025
2024
Income from freight and goods
1,350,821
1,366,935
Income from time-charter
243,878
274,880
Revenue by type of contract
1,594,699
1,641,815
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 29
2.2 VOYAGE RELATED EXPENSES AND
OPERATING COSTS
§ ACCOUNTING POLICIES
Voyage expenses, time-charter hire and operating costs 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).
Voyage related expenses and operating costs 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.
Operating costs include non-lease components of lease arrangements, which are described
further in note 5.3 Lease liabilities, as well as cost of goods, which is recognised when
control of the goods passes to the customer and comprises the purchase price and directly
attributable costs.
USD thousands
2025
2024
Bunkers
-317,386
-362,028
Other voyage related expenses
-327,182
-304,168
Voyage related expenses
-644,568
-666,196
Time-Charter hire, short-term leases
-690,830
-681,639
Operating costs
-125,141
-95,783
Time-Charter hire and operating costs
-815,971
-777,422
Voyage related expenses and operating costs
-1,460,539
-1,443,618
2.3 STAFF COSTS
§ ACCOUNTING POLICIES
Staff costs comprise wages and salaries, including incentives, to onshore employees.
USD thousands
2025
2024
Wages and salaries
-43,912
-29,159
Pensions – defined contribution plans
-1,526
-1,270
Other staff costs
-2,723
-2,195
Staff costs
-48,161
-32,624
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 2025 NOTES | PAGE 30
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
2025
2024
Current tax on profit for the year
-7,174
-6,809
Deferred tax on profit for the year
-120
-
Tax on profit for the year
-7,294
-6,809
Adjustments related to previous years – current tax
-
-214
Tax in the income statement
-7,294
-7,023
Computation of effective tax rate (%):
Statutory corporate income tax in Denmark
22.0%
22.0%
Effects from non-deductible expenses
8.0%
7.2%
Effects from Tonnage Tax Scheme
-47.9%
1.2%
Effects of adjustments related to prior years
-0.3%
0.8%
Deviation in foreign subsidiaries’ tax rates compared to the
Danish tax rate (net)
1.3%
0.7%
Effective tax rate
-16.9%
31.9%
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 31
§ 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.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 32
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
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 33
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.
The intangible assets are 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, see note 3.2.
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.
2025
USD thousands
Customers
Relations
Costs as of 1 January, accumulated
45,516
Additions
4,000
Cost at 31 December, accumulated
49,516
Amortisations at 1 January, accumulated
-1,517
Amortisation
-5,576
Amortisation at 31 December, accumulated
-7,093
Carrying amount 31 December
42,423
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 2025 NOTES | PAGE 34
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 2025 NOTES | PAGE 35
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 intangible and tangible assets is
based on the cash-generating units in which assets are included. The identification of such
cash‑generating units involves significant judgement.
Management has concluded that the 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.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 36
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS (CONTINUED)
! ACCOUNTING ESTIMATES
ASSESSING INDICATORS OF IMPAIRMENT
Near-term climate-related risks primarily affect freight rates, as these depend on the environmental classification and performance of each vessel. These factors have been fully considered in
our freight and time charter rate assumptions and in evaluating the vessels’ earning potential in our forecasts. Long-term climate-related risks are not deemed significant for the impairment
test, as most of the operated vessels are chartered and such risks remain with the vessel owners. Furthermore, a transition away from fossil fuels across the global bulk fleet is still many years
away, and Ultrabulk’s fleet remains significantly younger than the global average.
Management is also closely monitoring the effects of climate change, which have resulted in more volatile and less predictable weather patterns. While these changes can disrupt traditional
shipping routes, they may also create new opportunities as trade patterns adapt, as illustrated for example by the shifts following the Panama Canal drought in 2023–2024. Other events, such
as temporary disruptions to key passages like the Suez Canal, have similarly highlighted the sector’s exposure to changes in trade routes and infrastructure constraints, although these are not
necessarily weather-related.
The market in 2025 has been exceptionally challenging, driven by heightened geopolitical tensions, ongoing trade disputes, and regional conflicts, including those in Ukraine/Russia and Israel
and neighbouring regions. These factors have contributed to volatility and uncertainty in global trade flows. The dry bulk sector has experienced marked rate fluctuations, with spot and future
rates at times shifting significantly within short periods. At the start of 2025, freight rates temporarily declined to levels last seen during the Covid-19 pandemic in 2020.
Despite this, volatility and uncertainty are inherent to Ultrabulk’s business. Over the past decade, including the Covid-19 period, Ultrabulk has consistently maintained profitability. While early
2025 saw elevated uncertainty and depressed rates, the market has since rebounded to profitable levels. Both Ultrabulk and the broader market, as reflected in the freight curve, expect that
these profitable conditions will persist, even as volatility remains elevated.
Market fundamentals remain robust, supported by a historically low newbuilding orderbook for dry cargo carriers. The sector’s large newbuilding years from 2009–2016 resulted in a significant
portion of the global fleet being Chinese-built vessels, which are generally of lower quality and have a shorter expected lifespan (around 20 years) compared to Korean- and Japanese-built
vessels (25–28 years). Ultrabulk’s fleet, primarily consisting of Korean- and Japanese-built vessels, is thus positioned for greater longevity and reliability. As many Chinese-built vessels delivered
in 2009 are now over 15 years old, their approaching obsolescence is expected to gradually reduce global fleet capacity, further supporting market balance and freight rate sustainability.
Additionally, stricter environmental regulations are reducing effective fleet supply, as vessels must operate at slower speeds to comply. Management expects this trend to persist, further
underpinning positive market fundamentals.
Consequently, expected medium- and long-term freight rates are projected to continue generating positive free cash flow, supporting the carrying amount of intangible and tangible assets.
Based on these external factors, there is currently no indication of impairment for the intangible and tangible assets.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 37
3.2 TANGIBLE ASSETS & RIGHT-OF-USE ASSETS (CONTINUED)
2025
USD thousands
Vessels
Fixtures,
fittings and
equipment
Right-of-use
assets
Total
Costs as of 1 January, accumulated
49,652
3,192
419,274
472,118
Additions
20,695
734
91,745
113,174
Disposals
-24,618
-
-190,445
-215,063
Remeasurements
-
-
71,677
71,677
Cost at 31 December, accumulated
45,729
3,926
392,251
441,906
Depreciation and impairments at
1 January, accumulated
-
-2,214
-299,597
-301,811
Depreciation
-3,998
-394
-102,277
-106,669
Depreciation on disposals
1,290
-
173,445
174,735
Depreciation and impairment at 31
December, accumulated
-2,708
-2,608
-228,429
-233,745
Carrying amount 31 December
43,021
1,318
163,822
208,161
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
-96,783
Remeasurements
-
-
-4,793
-4,793
Cost at 31 December, accumulated
49,652
3,192
419,274
472,118
Depreciation and impairments at
1 January, accumulated
-
-3,941
-262,095
-266,036
Depreciation
-
-630
-131,928
-132,558
Depreciation on disposals
-
2,357
94,426
96,783
Depreciation and impairment at 31
December, accumulated
-
-2,214
-299,597
-301,811
Carrying amount 31 December
49,652
978
119,677
170,307
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 38
3.3 DEPRECIATIONS AND AMORTISATIONS
§ ACCOUNTING POLICIES
For accounting policies related to depreciations, reference is made to note 3.2 Tangible
assets.
USD thousands
2025
2024
Depreciations on right-of-use assets
-102,277
-131,928
Depreciations on vessels
-3,998
-
Depreciations on fixture, fittings, and equipment
-394
-630
Amortisations on customers relations
-4,552
-1,517
Depreciations and amortisations for the year
-111,221
-134,075
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 39
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
2025
2024
Cost at 1 January
23,825
23,825
Disposal
-23,825
Cost at 31 December
-
23,825
Value adjustment at 1 January, accumulated
-5,137
-3,117
Distributed dividend
-
-2,029
Share of the result for the year
3,471
9
Disposal
1,666
Value adjustment at 31 December, accumulated
-
-5,137
Carrying amount at 31 December
-
18,688
The Group’s investment in Ultra Summit was fully disposed of as a Joint Venture in 2025
following the change in ownership and consolidation of the entity. As a result, the carrying
amount at year-end is nil. The consolidation of Ultra Summit had no material impact on the
Group’s financial statements.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 40
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 2025 NOTES | PAGE 41
4.1 RECEIVABLES AND PREPAYMENTS
§ ACCOUNTING POLICIES
Receivables
Receivables are measured at amortised cost less provisions for impairment losses.
The Group applies the simplified approach to providing the expected credit losses
prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for trade
receivables. To measure the expected credit losses trade receivables have been grouped
based on credit risks and the day past due. In accordance with IFRS 9, non-due trade
receivables have also been impaired.
For a description of Ultrabulk’s payment terms as well as management of credit risk,
reference is made to note 5.4 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
2025
2024
Customers (trade receivables)
67,500
77,870
Other receivables
29,211
42,460
Contract assets
23,299
21,374
Trade and other receivables
120,010
141,704
Receivables from related companies
17,867
3,166
Receivables from related companies
17,867
3,166
Prepayments
42,192
31,783
Prepayments
42,192
31,783
Trade and other receivables, prepayments, loans to related
companies and receivables from related companies
180,069
176,653
Maturity analysis for trade receivables:
- Receivables not due
30,082
35,316
- Less than 90 days
35,490
39,685
- Between 91 days and 180 days
3,233
3,358
- Between 181 days and 360 days
890
1,162
- More than 360 days
2,955
2,995
Carrying amount of trade receivables excluding provisions
72,650
82,516
Provisions at 31 December
-5,150
-4,646
Carrying amount of trade receivables
67,500
77,870
Change in provision for trade receivables:
Provision at 1 January
4,646
5,316
Net change in provision
504
-670
Provision 31 December
5,150
4,646
Trade receivables are non-interest bearing and are generally fall due within 5 – 30 days.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 42
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
2025
2024
Bunkers
27,680
30,049
Bunker expenses recognised in the profit or loss
317,386
362,028
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 5.4
and 5.6.
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
2025
2024
Cash and cash equivalents
101,816
63,804
Restricted cash in the form of deposits with clearing houses
2,224
18,003
Cash and cash equivalents, including restricted cash
104,040
81,807
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 2025 NOTES | PAGE 43
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
2025
2024
Trade payables
88,677
80,625
Accruals and other payables, current
27,450
26,989
Contract liabilities
39,821
42,128
Accruals and other payables, non-current
57,250
47,757
Trade and other payables
213,198
197,499
Payables to related parties
10,975
3,257
Payables to related parties
10,975
3,257
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.
Accruals and other payables, non-current comprise performance related pay and is
expected to be paid in 2027.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 44
SECTION 5: CAPITAL STRUCTURE
5.1 FINANCIAL ITEMS
5.2 INTEREST BEARING LOANS AND BORROWINGS
5.3 LEASE LIABILITIES
5.4 FINANCIAL RISKS
5.5 FINANCIAL INSTRUMENTS
5.6 DERIVATIVE FINANCIAL INSTRUMENTS
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 45
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
2025
2024
Interest income
1,459
5,369
Gain from modification of lease liabilities
238
256
Exchange rate differences
173
3,237
Financial income
1,870
8,862
Interest expenses
-1,523
-13
Interest expenses on lease liabilities
-8,062
-8,067
Other financial items, net
-57
-75
Financial expenses
-9,642
-8,155
5.2 INTEREST BEARING LOANS AND
BORROWINGS
§ ACCOUNTING POLICIES
Loans are recognised at the time the loans are obtained in the amount of the proceeds after
deduction of transaction costs. In subsequent periods, the loans are recognised at
amortised costs.
Carrying amount
USD thousands
Type
2025
2024
Interest bearing loans
Floating
13,533
Interest bearing loans and borrowings
13,533
-
Non-current portion
11,773
Current portion
1,760
Interest bearing loans and borrowings
13,533
-
The loans are subject to financial and operational covenants, including a minimum equity.
Management assesses that the Group meet these covenants at the closing date as well as
throughout the financial year.
The loans are secured by vessels. The carrying amount of the vessels provided as security
is USD 19 million.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 46
5.3 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 2025 NOTES | PAGE 47
5.3 LEASE LIABILITIES (CONTINUED)
The development in lease liabilities are explained in the table below:
USD thousands
2025
2024
Lease liabilities 1 January
123,970
186,291
Additions for the period
91,745
77,269
Remeasurements
54,446
-5,434
Instalments made
-102,771
-134,156
Lease liabilities 31 December
167,390
123,970
Non-current portion
93,737
38,603
Current portion
73,653
85,367
Lease liabilities 31 December
167,390
123,970
Of the total lease liabilities, USD 82 million (2024: USD 39 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 482 million (2024: USD 248 million).
The total cash outflow from leases in 2025 were USD 897 million (2024: USD 900 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 costs) 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 2025 NOTES | PAGE 48
5.4 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 2025 NOTES | PAGE 49
5.5 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 2025 NOTES | PAGE 50
5.5 FINANCIAL INSTRUMENTS BY CATEGORY (CONTINUED)
Tables with carrying amount of financial items by class of financial assets and liabilities
31 December 2025
USD thousands
0-1 Year
1-5 Years
5+ Years
Contractual
cash flow
Carrying
amount
Recognised at amortised cost
Trade and other payables
155,948
57,250
213,198
213,198
Payables to related companies
10,975
10,975
10,975
Lease liabilities
81,097
98,441
179,538
167,390
Loans from financial institutions
2,515
9,025
5,195
16,735
13,533
Total
250,535
164,716
5,195
420,446
405,096
Recognised at fair value
Financial guarantee contracts
Derivative financial instruments
3,881
257
4,138
4,138
Total
3,881
257
-
4,138
4,138
Total financial liabilities
254,416
164,973
5,195
424,584
409,234
Recognised at amortised cost
Trade and other receivables
120,010
120,010
120,010
Receivables from related
companies
17,867
17,867
17,867
Cash and restricted cash
104,040
104,040
104,040
Total
241,917
-
-
241,917
241,917
Recognised at fair value
Derivative financial instruments
2,629
614
3,243
3,243
Total
2,629
614
-
3,243
3,243
Total financial assets
244,546
614
-
245,160
245,160
31 December 2024
USD thousands
0-1 Year
1-5 Years
5+ Years
Contractual
cash flow
Carrying
amount
Recognised at amortised cost
Trade and other payables
149,742
47,757
197,499
197,499
Payables to related companies
3,257
3,257
3,257
Lease liabilities
88,788
41,952
130,740
123,970
Loans from financial institutions
-
-
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
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 51
5.6 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 2025 NOTES | PAGE 52
5.6 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 2025 NOTES | PAGE 53
5.6 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Hedging of bunker expenses
The Group has entered bunker derivatives in order to hedge future bunker expenses. The
bunker derivatives are accounted for as cash flow hedges.
The bunker derivatives are entered simultaneously with the Contracts of Affreightment
(CoA) or single cargoes, as part of the Group’s risk management. The bunker derivatives
cover the bunker expenses in connection with the CoA and the duration of the bunker
derivative is therefore similar to the duration of the CoA. 95% of the nominal value is
realised within 1 year and 5% is realised within 1-3 years. The nominal value at the end of
the year is USD 25 million and a drop in bunker prices of 10% will have a negative impact
on equity of USD 2.5 million. The Group has established a hedge ratio of 1:1 as the
underlying risk of the hedging instrument is identical to the hedged risk component. Hedge
ineffectiveness can arise from differences in timing of the cash flows as well as changes to
the forecasted amounts. No ineffectiveness has been recognised.
Hedging of freight rates
The Group has entered into freight derivatives in order to hedge future cargo and vessel
commitments. The freight derivatives are accounted for as cash flow hedges as part of the
Group’s risk management. 45% of the nominal value is realised within 1 year and 55% is
realised within 1-5 years. The nominal value as the end of the year is USD 21 million and a
drop in the Baltic Dry rates of 10% will have a negative impact on equity of USD 2.1 million.
The Group has established a hedge ratio of 1:1 as the underlying risk of the hedging
instrument is identical to the hedged risk component. Hedge ineffectiveness can arise from
price difference between the Baltic Dry and the actual freight rates and difference in
number of days and timing of cash flows. No ineffectiveness has been recognised.
Economic hedging using freight derivatives
In continuation of above, 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, the Group has entered certain swaps with the
purpose of economic trading. Strict control systems are in place to monitor developments
and ensuring that risk is constrained at acceptable pre-defined levels, which are duly aligned
with our strategy and proportionate with our financial strength. Changes in fair value of
those swaps are recognised in profit or loss.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 54
5.6 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Overview of derivative financial instruments at year-end
31 December 2025
USD millions
Nominal
value
Net Sell
Days/MT
Duration
Months
Recognised
on equity
Fair value
Hedge accounting applied
FX hedges (USD/DKK)
1.2
-
FFA hedges (Days)
20.8
1,725
1-36
11.7
1.3
Bunker hedges (MT)
25.1
57,046
1-60
-3.3
-2.2
Hedge accounting not applied
FFAs (Days)
-0,1
0
1-36
-0.1
Net fair value of derivative instruments
-1.0
USD millions
Fair value
Presentation in the Consolidated Financial Statement as:
Derivative financial instruments, non-current assets
0.6
Derivative financial instruments, current asset
2.6
Derivative financial instruments, non-current liabilities
-0.3
Derivative financial instruments, current liabilities
-3.9
Net fair value of derivative financial instruments
-1.0
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 swaps (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
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 55
5.6 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Net amount recognised in Other Comprehensive Income
USD millions
2025
2024
Effective portion of changes in fair value from:
FX hedges
1.0
-1.5
Bunker hedges
-2.0
-2.4
FFA hedges
19.1
-22.2
Cash deposits designated as cash flow hedges
0.0
0.3
Amounts reclassified to profit and loss:
FX hedges reclassified to financial items
0.2
0.1
Bunker hedges reclassified to voyage related expenses
-1.3
2.5
FFA hedges reclassified to revenue
-7.4
9.6
Net amount recognised in Other Comprehensive Income
9.6
-13.6
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 56
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 2025 NOTES | PAGE 57
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
Group. However, it is assed that the director role remuneration for the three members in
total amounts to USD 0.1 million.
Remuneration of Executive Management
The Executive Management comprise of three members, all of which are remunerated
directly by the Group.
USD thousands
2025
2024
Fixed salaries
985
893
Pensions – defined contribution plans
65
59
Incentive payments (cash based)
-
389
Total remuneration for the Executive Management
1,050
1,341
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
2025
2024
Statutory audit
325
311
Tax assurance services
6
26
Other services
2
1
Fees to statutory auditors
333
338
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 58
6.3 CONTINGENT LIABILITIES & COMMITMENTS
§ ACCOUNTING POLICIES
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive)
as a result of a past event, it is probable that the obligation has to be settled and that a
reliable estimate of the obligation can be made.
Contingent liabilities
The Group is 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 the Group’s financial position, 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 Company’s
liability constituting a larger amount.
The Group's Danish companies are jointly and severally liable for the joint registration of
VAT.
Guarantees
The Group has issued guarantees for loans to joint ventures. The table below summarises
guarantees at year-end:
USD thousands
2025
2024
Guarantees
The Group has issued guarantees for loans to joint ventures
-
12,892
Total
-
12,892
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
2025
2024
Short term leases and low value leases
96,803
102,549
Total
96,803
102,549
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
2025
2024
COAs and Time Charter commitments as service provider
Within one year
123,916
131,105
Between 1 – 5 years
100,564
132,102
More than 5 years
79,155
79,550
Total
303,635
342,757
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 59
6.4 OTHER NON-OPERATING CASH ITEMS
(CASH-FLOW)
USD thousands
2025
2024
Gain on sale of vessels, plant, and equipment
-13,792
-6,690
Depreciation and impairment loss
111,221
134,075
Share of gain/loss in joint venture
-3,471
-9
Modification of lease liabilities
-238
-616
Net forward contract activity
-617
-648
Economic trade
-394
110
FX adjustments
211
155
Other non-cash operating items
26,809
10,176
Total
119,729
136,553
6.5 CHANGE IN WORKING CAPITAL
(CASH-FLOW)
USD thousands
2025
2024
Change in receivables
-3,474
-28,102
Change in inventories
2,369
5,941
Change in liabilities
13,924
29,157
Total
12,819
6,996
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 60
6.6 CHANGES IN LIABILITIES (CASH FLOW)
Changes in liabilities arising from finance activities
2025
USD thousands
1 January
Cash flow
Other
31 December
Lease liabilities
123,970
-102,770
146,190
167,390
Loans from financial institutions
-
13,680
-147
13,533
Total liabilities from financing activities
123,970
-89,090
146,043
180,923
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
The category ‘Other’ comprise primarily of additions and remeasurements of lease liabilities. Reference is made to note 5.3 – Lease liabilities.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 61
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 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
2025
2024
2025
2024
Related companies
Charter hire
13,230
16,781
Management fee income
924
965
Management fee expense
-2,448
-2,440
Other receivables and payables
13,033
-91
Joint Ventures and Associates
Charter hire
-5,503
-10,319
Management fee income
67
45
Guarantees
-
12,892
6.8 SHARE CAPITAL
The share capital comprises of shares with a nominal value of DKK 1 each. All shares rank
equally. No restrictions have been imposed on negotiability of the shares or on voting rights.
All issued shares are fully paid.
The share capital have not been subject to changes in the past five years.
6.9 EVENTS AFTER THE BALANCE SHEET DATE
Disclosure of events after the balance sheet date
No events have occurred after the balance sheet date that materially affects the financial
position of the Group.
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 62
6.10 GROUP STRUCTURE
GROUP STRUCTURE | PAGE 63
ULTRABULK ANNUAL REPORT 2025
ULTRABULK ANNUAL REPORT 2025 NOTES | PAGE 63
PARENT COMPANY FINANCIAL STATEMENTS
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 64
PARENT COMPANY - INCOME STATEMENT
USD thousands
Note
2025
2024
Revenue
2
928,846
946,167
Voyage related expenses and operating costs
-954,603
-916,180
Gross profit
-25,757
29,987
Other external expenses
3
-11,335
-9,527
Staff costs
4
-13,921
-14,753
Operating profit before depreciation and impairment loss (EBITDA)
-51,013
5,707
Profit from sale of tangible assets
8,923
6,753
Depreciation
6
-1,382
-520
Operating profit (EBIT)
-43,472
11,940
Share of subsidiaries’ profit after tax
7
-2,512
1,866
Other financial items, net
1,161
977
Profit before tax
-44,823
14,783
Tax
5
-3,847
-2,676
Net result
-48,670
12,107
Proposal for the distribution of net result:
Reserve for net revaluation according to equity method
-2,512
1,866
Retained earnings
-46,158
10,241
Proposed dividend
-
-
Net result
-48,670
12,107
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 65
PARENT COMPANY - BALANCE SHEET
ASSETS
USD thousands
Note
2025
2024
Vessels
6
-
24,517
Fixtures, fittings, and equipment
6
62
48
Tangible assets
62
24,565
Investments in subsidiaries
7
105,912
117,078
Investments in associates
1,024
-
Other financial assets
2,984
-
Derivative financial instruments
13
614
786
Deposit
232
177
Financial assets, non-current
110,766
118,041
Total non-current assets
110,828
142,606
Inventories
15,524
19,118
Trade and other receivables
8
56,951
73,615
Receivables from related companies
9
7,832
1,976
Loans to related companies
14,581
-
Prepayments
26,727
21,312
Income tax receivables
-
336
Derivative financial instruments
14
2,629
5,349
Cash and short-term deposits, including restricted cash
16
86,964
33,695
Total current assets
211,208
155,401
TOTAL ASSETS
322,036
298,007
EQUITY AND LIABILITIES
USD thousands
Note
2025
2024
Share capital
10
5,134
5,134
Revaluation reserve according to the equity method
35,862
63,312
Cash flow hedge reserves
-1,086
-9,976
Retained earnings
105,821
125,154
Proposed dividend
-
-
Total equity
145,731
183,624
Other liabilities
21,111
5,278
Derivative financial instruments
14
257
3,712
Total non-current liabilities
21,368
8,990
Trade and other payables
11
78,662
70,738
Payables to related companies
9
67,733
22,799
Derivative financial instruments
14
3,881
11,856
Income tax payable
4,661
-
Total current liabilities
154,937
105,393
Total liabilities
176,305
114,383
TOTAL EQUITY AND LIABILITIES
322,036
298,007
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 66
PARENT COMPANY - STATEMENT OF CHANGES IN EQUITY
USD thousands
Share capital
Cash flow
hedge reserve
Revaluation reserve
according to the
equity method
Retained earnings
Proposed dividend
Total equity
Equity as 1 January 2025
5,134
-9,976
63,312
125,154
-
183,624
Net result
-2,512
-46,158
-48,670
Dividend received from subsidiaries
-25,289
25,289
-
Dividend paid to shareholders
-
Fair value adjustments
8,890
701
1,536
11,127
Other adjustments
-350
-350
Equity as 31 December 2025
5,134
-1,086
35,862
105,821
145,731
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
141,180
37,235
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
1,309
-2,178
-
-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
63,312
125,154
-
183,624
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 67
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENT
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.
Some comparative figures in the notes of The Parent Company Financial Statements have
been adjusted to enhance comparability. These adjustments have not been impacting the
overall financial position of The Parent Company.
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 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 68
NOTE 2 – REVENUE
USD thousands
2025
2024
Income from freight
635,005
659,616
Income from time charter
293,841
286,551
Revenue by type of contract
928,846
946,167
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
2025
2024
Salaries
-12,063
-12,462
Pensions – defined contribution plan
-1,060
-973
Other staff costs
-798
-1,318
Total
-13,921
-14,753
Average number of employees
88
88
With regards of remunuration of management, please refer to note 6.1 in the Consolidated
Financial Statements.
NOTE 5 – TAX
USD thousands
2025
2024
Current tax on profit for the year
-3,786
-2,607
Tax on profit for the year
-3,486
-2,607
Adjustments related to previous years – current tax
-61
-69
Tax in the income statement
-3,547
-2,676
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 69
NOTE 6 – TANGIBLE ASSETS
2025
USD thousands
Vessels
Fixtures,
fittings and
equipment
Total
Cost at 1 January
24,517
1,962
26,479
Additions for the year
101
107
208
Disposals
-24,618
-
-24,618
Cost at 31 December
-
2,068
2,068
Depreciation at 1 January, accumulated
-
-1,914
-1,914
Depreciation for the year
-1,290
-92
-1,382
Depreciation on disposals
1,290
-
1,290
Depreciations at 31 December, accumulated
-
-2,006
-2,006
Carrying amount at 31 December
-
62
62
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
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 70
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
2025
2024
Cost at 1 January
53,766
16,982
Additions
16,284
36,784
Cost at 31 December
70,050
53,766
Value adjustment at 1 January
63,312
141,180
Share of result for the year
-2,512
1,866
Dividends
-25,289
-79,856
Change in equity in subsidiaries
701
122
Other changes
-350
-
Value adjustment 31 December
35,862
63,312
Carrying amount
105,912
117,078
The carrying amount can be specified as follows:
Investment in subsidiaries
107,340
117,078
Negative equity in subsidiaries, deducted in intercompany
receivables
-1,428
-
Carrying amount
105,912
117,078
Direct Ultrabulk subsidiaries
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%
Ultrabulk Japan K.K.
100%
100%
CTP Shipping GmbH
50.1%
50.1%
Edson Resources Ltd.
50.1%
-
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 71
NOTE 8 – TRADE AND OTHER RECEIVABLES
USD thousands
2025
2024
Customers (trade receivables)
46,539
62,594
Other receivables
10,412
11,021
Total
56,951
73,615
NOTE 9 – AMOUNTS DUE FROM/TO RELATED
COMPANIES
The amounts due/from the related companies are non- trade, interest free, unsecured
and are repayable on demand.
NOTE 10 – SHARE CAPITAL
Please refer to note 6.8 of the Consolidated Financial Statements.
NOTE 11 – TRADE AND OTHER PAYABLES
USD thousands
2025
2024
Trade payables
29,553
27,411
Accruals and other payables
18,465
17,649
Deferred income
30,644
25,678
Total
78,662
70,738
NOTE 12 – CONTINGENT LIABILITIES
USD thousands
2025
2024
Guarantees
Ultrabulk A/S has issued guarantees for loans to joint venture
and associated company
-
12,892
Ultrabulk A/S has issued guarantees for time charter hires to
subsidiaries
110,607
62,568
Total
110,607
75,460
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 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 72
NOTE 13 – OPERATING LEASE LIABILITIES AND
COAs COMMITMENTS
Lease agreements have been entered into with a mutually interminable lease period up to
7 years. As a general rule, leases include an option to renew for one additional year at a
time for up to three years. Some of the lease agreements include a purchase option,
exercisable as from the end of the fifth year to the expiry of the period of renewal. Exercise
of the purchase option on the individual vessels is based on an individual assessment. The
lease liabilities are assessed at nominal amount.
The Company has purchase options on operational leases. However the majority of such
purchase options are partly shared.
USD thousands
2025
2024
i
Operating leases
Within one year
226,726
220,002
Between 1 – 5 years
265,929
102,355
Total
492,655
322,357
i
2024 has been restated from USD 149,358 (118,083 within one year and 31,275 between 1-5 years) due a calculation error with no effect
on the assets liabilities, financial position and profit or loss.
USD thousands
2025
2024
COAs and Time Charter commitments as service provider
Within one year
81,927
80,547
Between 1 – 5 years
90,541
119,786
More than 5 years
79,155
79,550
Total
251,623
279,883
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 73
NOTE 14 – 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. 95% of the nominal value is
realised within 1 year and 5% is realised within 1-3 years. The nominal value at the end of
the year is USD 25 million and a drop in bunker prices of 10% will have a negative impact
on equity of USD 2.5 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. 45% of the nominal value is realised within 1 year and 55% is
realised within 1-5 years. The nominal value as the end of the year is USD 21 million and a
drop in the Baltic Dry rates of 10% will have a negative impact on equity of USD 2.1 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 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 74
NOTE 15 – RELATED PARTY TRANSACTION
Reference is made to note 6.7 in the consolidated financial statements which details related
party transactions between the Ultrabulk Group and related companies other than wholly
owned subsidiaries of Ultrabulk A/S.
In accordance with section 98c(3) of the Danish Financial Statements Act, the Company has
not disclosed any related party transactions with its wholly owned subsidiaries.
Ownership
The following shareholders are registered in the Company's register of shareholders as
holding minimum 5% of the voting rights or minimum 5% of the share capital:
Ultranav ApS, Smakkedalen 6, 2820 Gentofte, Denmark.
The Consolidated Financial Statements of Ultranav International ApS is available at the
Company's address. The ultimate holding company of Ultrabulk A/S is Inversiones Volcán
Mocho S.A., Av, El Bosque Norte 500 Piso 22, 7550092 Las Condes, Santiago, Chile.
NOTE 16 – RESTRICTED CASH
Restricted cash in terms of deposits in favor of clearinghouses (BNP Paribas) amounts to
USD 2.2 million (2024: USD 18.0 million).
NOTE 17 – SUBSEQUENT EVENTS
For subsequent events, reference is made to note 6.9 in the Consolidated Financial
Statements.
ULTRABULK ANNUAL REPORT 2025 PARENT COMPANY FINANCIAL STATEMENTS | PAGE 75