Annual report 2022
Hunter Group ASA – Annual report 2022
2
Table of contents
▪ Highlights 03
▪ Corporate governance policy 04
▪ Corporate social responsibility policy 11
▪ Responsibility statement 15
▪ Board of Directors’ report 16
▪ Consolidated financial statements 20
▪ Financial statements for Hunter Group ASA 50
▪ Auditor’s report 63
Hunter Group ASA - 2022
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Highlights – discontinued operations
Financial highlights in 2022
• Total revenues of USD 74.80m
− Spot pool revenues of USD 6. 90m
− Time charter revenues of USD 11.48m
− Gain on sale of assets of USD 56.42m
• Total operating expenses of USD 19.32m
− Vessel opex incl. insurance of USD
6.76m
− Voyage expenses and commissions of
USD 2.52m
− G&A expenses of USD 1.99m
• EBITDA of 63.52m
• Net profit of USD 47.38m
• Average daily earnings of USD 20,050
• Opex incl. insurance of USD 7,420 per day
Key events in 2022
• Successfully sold and delivered the remaining
four VLCCs in the Company’s fleet, for gross
proceeds of USD 383 million. Following the
delivery of the final VLCC in November 2022,
the Company owns zero vessels
• Extraordinary General Meeting held on 19
September 2022, which inter alia approved the
board’s proposal to reduce the share capital
from NOK 1.25 per share to NOK 0.002 per
share, with the entire amount to be used for
distributions to shareholders. Together with a
reduction of share premium the Company
distributed total dividends of NOK 1.50 per
share
• Bought back a total of 11,969,630 of own
shares at a dividend adjusted price of NOK
minus 0.27 per share. Sold 15,000,000 of own
shares to Apollo Asset Limited (“Apollo”) after
Apollo exercised all of it’s 15,000,000 warrants
in the Company. Following these transactions
the Company holds 8,212,826 of its own shares
• The Annual General Meeting was held on 27
April 2022, and all resolutions were passed in
accordance with the previously announced
proposals, including, inter alia, authorizations
to acquire own shares and issue new shares
Subsequent events
• Extraordinary General Meeting held on 19
January 2023 which inter alia approved the
board’s proposal to distribute two
extraordinary dividends of NOK 0.51 per share
and NOK 1.80 per share. The NOK 0.51 per
share dividend was distributed as a reduction
of paid in capital, while the NOK 1.80 per
share dividend was distributed as earned
capital
• On February 14, 2023, leading employees of
the Company exercised all of their options for
7,850,000 shares in the Company. Reference is
made to Note 20 of the Consolidated Financial
Statements for further information of the LTI
Options held by leading employees.
• Extraordinary General Meeting held on 16
February 2023 which rejected the board’s
proposal of a NOK 0.04 per share dividend
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Corporate governance policy
Hunter Group ASA’s Board of Directors approved this updated Corporate Governance Policy on 27 February 2023.
1. Introduction
Corporate Governance regulates the responsibilities of the executive personnel and the Board of Directors of
Hunter Group ASA and its subsidiaries. The subsidiaries adopts the relevant governing documents.
Hunter Group ASA (“HUNT”, “the Company” or “the Group”) is a Norwegian public limited liability company which
shares are listed on the Oslo Børs/Oslo Stock Exchange (Oslo Axess list) and it is therefore subject to the
corporate governance requirements as set out in the Norwegian Code of Practice for Corporate Governance. HUNT
works according the Norwegian Code of Practice for Corporate Governance dated 14th October 2021
(www.nues.no). Where HUNT does not fully comply with the recommendations, an explanation or comment is
given.
Oslo Børs/Oslo Stock Exchange prescribes that companies listed on the Oslo Børs/Oslo Stock Exchange must
publish a report in their annual report on the Company’s corporate governance.
HUNT aims to have effective systems in place for communication, monitoring, accountability, and incentives that
also enhance the market value, corporate profit, long-term strength, continuity and overall success of the
business of HUNT. In addition to strengthen the confidence amongst its shareholders.
HUNT is a small company with limited resources available within the organization. The number of employees
(including managers) were 3 at year-end 2022. This limits the ability to allocate resources to report and follow up
on Corporate Governance and Corporate social responsibility (CSR). On the other hand, a limited organization in
combination with external board and a transparency culture is a strength in the company`s daily work with
Corporate Governance and CSR. The principles, rules and regulations are outlined to meet both today`s business
model and complexity and future, more complex business environments. The board will monitor the need for
increased capacity to fulfill external and internal rules and regulation as the business develops.
2. Reporting on Corporate Governance
Hunter Group ASA’s Board of Directors review and approves this Corporate Governance Policy annually, which can
also be found on its website (www.huntergroup.no) and is included in the annual report.
The Company’s basic corporate values are incorporated in the Company’s management system. The Board of
Directors has implemented ethical guidelines and a corporate social responsibility policy, which are reviewed and
re-issued annually.
3. Business
In the Article of Association HUNT’s business is described as follows:
Hunter group is a publicly traded investment company focusing on shipping and oil service investments.
The main investment has since 2018 been Hunter Tankers AS, a wholly owned subsidiary shipping company. Hunter
Tanker AS’ fleet consisted originally of eight identical VLCCs. The VLCC fleet was gradually divested throughout
2021 and 2022, and at year end 2022 the Company owns zero VLCCs. The Company is currently in the process of
distributing gains from the VLCC project, while simultaneously developing new investment projects. The VLCC
segment is as such presented as discontinued operations in the consolidated statement of profit and loss.
The Badger Explorer technology for exploring and mapping of hydrocarbon resources is organized in the subsidiary
Indicator AS. It has no employees and there has been no activity in the company in 2022. The cash burn is down to
a bare minimum and is close to zero.
The Company’s objectives and principal strategies are described in the annual report.
4. Equity and Dividends
The development of the Group’s equity up to 31 December 2022 is described in the “Statement of change in
equity” in the financial statements of the annual report.
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HUNT’s dividend policy aims to yield a competitive return on invested capital to the shareholders through a
combination of dividends, share buybacks and share price developments. In 2022. the Company distributed NOK
1.50 per share as a reduction in the Company’s share premium.
At the Company’s annual general meeting on 27 April 2022 the Board of Directors was granted a mandate to
increase the Company's share capital by up to NOK 324,000,000 to fund investments and by up to NOK 35,000,000
to be used in connection with the Company's share incentive program. Furthermore, the Board of Directors were
granted a mandate to acquire, on behalf of the Company, up to 57,535,000 of the Company’s own shares.
The mandate granted by the Company’s annual general meeting on 27 April 2022 are valid until 30 June 2023. The
authorizations are in accordance with Norwegian Code of Practice for Corporate Governance.
5. Equal Treatment of Shareholders and Transactions with Close Associates
HUNT has one class of shares and is dedicated to applying equal treatment to all shareholders.
The decision to waiver the existing shareholders’ pre-emption rights in the event of an increase in the share
capital must be justified. The Board of Directors will disclose such a justification in the stock exchange
notification in connection with the increase in share capital.
If a transaction between the Company and a shareholder of the Company, a shareholder’s parent company, a
member of the Board of Directors or a member of executive personnel (or related parties to such persons) is
considered to be material in accordance with the Norwegian Code of Practice for Corporate Governance, the
Board will obtain a valuation from an independent third party. This will not apply if the GM’s approval for such
transactions is required according to the Norwegian Public Limited Companies Act §3-8.
Board members and the executive personnel shall notify the Board of any material direct or indirect interest in
any transaction entered into by HUNT.
Deviation from the Norwegian Code of Practice for Corporate Governance:
The shareholders’ pre-emptive rights are exempted because the Group wishes to be able to (i) use share issues for
its employees, Directors and others important stakeholders with the Group as a part of the Group’s share
incentive scheme and (ii) issue shares towards certain specifically chosen institutional investors or others if
required or desired in conjunction with the Group’s expansion, development and/or strategic acquisitions.
6. Freely Negotiable Shares
All HUNT shares carry equal rights and are freely negotiable. Each share represents one vote at the GMs. The
nominal value per share amounts to NOK 0.002. At the date of this annual report, there are no restrictions
regarding transferability in the Group’s Articles of Association or any other transfer restrictions related to HUNT’s
shares.
7. General Meetings (“GM”)
The shareholders exercise the highest authority in HUNT through AGMs.
In 2023 the Annual General Meeting of HUNT will be held on 30 March. The Group’s financial calendar has been
published in a notice to the Oslo Stock Exchange and is available on HUNT’s website. The GMs shall approve the
annual accounts, the annual report, distribution of dividend, and otherwise make such resolutions as required
under the Corporate Governance Policy and the applicable law.
The Board shall publish notices of GMs and any supporting material, such as the agenda, recommendations of the
Nomination Committee, the information about the shareholder’s right to propose resolutions in respect of matters
to be dealt with by the General Meeting and other documents as set out in the bye-laws of the Group, no later
than 21 days prior to the day of the GM, on the Group’s website (www.huntergroup.no). The Board will also
ensure that the distributed notice and all supporting material are sufficiently detailed. The Board will make
reasonable efforts to enable as many shareholders as possible to attend.
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The notice shall also include information on the procedure of representation through proxy, as well as a proxy
that allows giving separate voting instructions for each matter to be considered by the General Meeting and for
each candidate nominated for election. The Group will nominate a person who will be available to vote on the
shareholder’s behalf if the shareholder has not appointed a proxy.
The Board shall make such notices of General Meetings and the relevant supporting material available through the
notification system of Oslo Børs/Oslo Stock Exchange and on the Group’s website no later than 21 days prior to
the day of the GM.
Every shareholder has the right to put matters on the agenda of a General Meeting along with a proposed
resolution within the statutory timeframe.
The shareholders may be asked to notify their attendance prior to the GM. The deadline for the notification of
attendance for the AGM will be as close to the meeting as possible. Shareholders who are unable to attend may
vote by proxy. A proxy form shall be attached to the notice of the GM.
The GM’s chairperson shall be independent. The Company’s Board and the chairperson of the GM shall ensure that
the shareholders vote separately for each candidate nominated for a corporate body.
HUNT will publish the minutes of GMs (alternatively only such resolutions that were not made in accordance with
the proposals made in the notice to the GM) through the notification system of Oslo Børs/Oslo Stock Exchange and
on its website no later than 15 days after a GM has been held and will maintain them available for inspection in
the Company's offices. The Annual General Meeting in 2022 was held in Oslo on April 27
th
where 36.76% of all
shares were represented.
Deviation from the Norwegian Code of Practice for Corporate Governance:
The Norwegian Code of Practice for Corporate Governance demands that the Board of Directors as a whole, the
members of the Nomination Committee and the Auditor are present at the General Meetings. HUNT considers it
sufficient that only the chairperson of the Board and the Auditor attend GMs.
8. Nomination Committee
HUNT’s Nomination Committee consists of two to three members, elected by the Company’s General Meeting. The
majority of the members shall be independent of the Board of Directors and the Company’s executive personnel.
No more than one member of the Board of Directors shall be member of the Nomination Committee and should
not offer himself for re-election to the Board. The members of the Nomination Committee are elected by the
shareholders in a GM for a period of no longer than two years.
The Nomination Committee proposes to the GM candidates for election to the Board. The composition of the
Board of Directors should reflect the provisions of the Group’s Corporate Governance Policy, commitment to
shareholder return, independence and experience in relevant sectors (technology and business development,
financing and accounting, disclosure and regulatory, etc.). The Nomination Committee also proposes the
remuneration to be paid to the members of the Board of Directors.
The Nomination Committee’s recommendations shall include justification as to how the recommendations take
into account the shareholder interests and the Group’s requirements. The following information about the
proposed candidates, in particular each person’s age, education, business experience, term of appointment to the
Board (if applicable), ownership interest in the Company, independence, any assignments (other than the
proposed Directorship) for the Company and material appointments with other companies and organizations will
be disclosed. In the event that the Nomination Committee recommends re-electing current Directors, the
recommendation will include information on when the Directors were appointed the Board and their attendance
records.
The Nomination Committee shall elect its own chairperson according to the Group’s Articles of Association.
Meetings of the Nomination Committee shall be convened when deemed necessary by any of its members to
adequately fulfill its assigned duties. Notice of a meeting shall be issued by the chairperson of the Nomination
Committee no later than one week prior to the meeting, unless all members approve a shorter notice period.
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The Group will provide information on its website regarding the membership of the Committee and any deadlines
for submitting proposals to the Nomination Committee.
The Nomination Committee consists of:
Jacob Iqbal (chairperson) – elected until AGM in 2023
Arne Fredly – elected until AGM in 2023
One member of the Nomination Committee is considered independent of the Board of Directors.
Deviation from the Norwegian Code of Practice for Corporate Governance:
The Group’s Articles of Association regulate the election of the chairperson of the Nomination Committee.
According to §6 of the Articles of Association of Hunter Group ASA the Nomination Committee elects its own
chairperson.
The Norwegian Code of Practice for Corporate Governance requires guidelines regarding the Nomination
Committee’s duties to be set out by the General Meeting. At HUNT, the Committee itself sets out its duties in
accordance with the duties presented in chapter 8 of the Group’s Corporate Governance Policy.
9. Board of Directors: Composition and Independence
HUNT shall be headed by a Board with collective responsibility for the success of the Group.
The Board shall comprise between three and eight Directors according to §5 of HUNT's Articles of Association.
Currently the Board consists of three Directors, who have all been elected by the shareholders and are not
representatives of HUNT's executive personnel. The members of the Board of Directors are elected for a period of
two years.
The members of the Board of Directors that were elected in the AGM 27 April 2022 are:
Henrik A. Christensen (Chairman) – elected until AGM in 2024
Kristin Hellebust – elected until AGM in 2024
Arne Fredly – elected until AGM in 2024
All members of the Company’s Board of Directors are considered independent according to the Norwegian Code of
Practice for Corporate Governance. Detailed information on the individual Board member can be found in the
Group’s website (www.huntergroup.no) and in the Annual Report.
Board members and close associates’ ownership as of 31 December 2022:
Henrik A. Christensen owns 750 000 shares, through August AS, which represents 0,13%.
Kristin Hellebust owns zero shares.
Arne Fredly owns a total of 191,500,000 shares, through Apollo Asset Limited, which represents a total of 33,28%.
According to the Norwegian Public Limited Companies Act § 6-35 and the Norwegian Code of Practice for
Corporate Governance a Group with more than 200 employees is required to elect a corporate assembly. The
Group has less than 200 employees and has therefore not yet elected a corporate assembly.
10. The Work of the Board of Directors
The Board shall ensure that the Group is well organized and that operations are carried out in accordance with
applicable laws and regulations, and in accordance with the objects of HUNT as specified in its Articles of
Association and guidelines given by the shareholders through resolutions in GMs.
HUNT’s Board of Directors has the ultimate responsibility for inter alia the Group’s executive personnel,
supervision of its activities and the Group’s budgets and strategic planning. The Board of Directors produces an
annual plan of its work.
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To fulfill its duties and responsibilities, the Board has full access to the Group’s relevant information. The Board
shall also consider for example obtaining such advice, opinions and reports from third party advisors as it deems
necessary to fulfill its responsibilities.
The “Rules of Procedure for the Board of Directors of HUNT and the Relation to CEO” were approved by the Board
on 31st October 2017 and were implemented.
All of the board members are also members of the Audit Committee and Remuneration Committee.
The Board of Directors evaluates its own performance and expertise once a year.
The Board of Directors arranged 14 board meeting during the fiscal year 2022.
Deviation from the Norwegian Code of Practice for Corporate Governance:
The Norwegian Code of Practice for Corporate Governance requires the Board of Directors to consider appointing
a remuneration committee. At HUNT, the Board itself prepares all matters relating to compensation paid to the
Group’s executive management.
11. Risk Management and Internal Control
HUNT has implemented internal control and risk management systems appropriate to the size and nature of the
Group’s activities. The Group’s core values, ethical guidelines and the corporate social responsibility policy are
incorporated in the internal control and risk management systems.
The Board of Directors carries out an annual review of the control and risk management systems and the Group’s
most significant exposures.
In the annual report, the Board of Directors describes the main features of the Group’s internal control and risk
management systems in relation to the Group’s financial reporting.
12. Remuneration of the Board of Directors
The remuneration of the members of the Board of Directors reflects the Board’s responsibilities, expertise, the
committed time and the complexity of the Group’s activities.
The Board Members’ remuneration (form and amount) will be reviewed annually by the Nomination Committee
and is not linked to the Group’s performance. It is the Nomination Committee’s responsibility to prepare a
proposal for the Annual General Meeting regarding the above-mentioned remuneration.
13. Remuneration of the Executive Personnel
The Board of Directors establishes, as required by law, guidelines for the remuneration of the members of the
executive personnel. The AGM will vote on these guidelines which help ensure convergence of the financial
interest of the executive personnel and the shareholders.
The guidelines for remuneration of the executive personnel are published in the Annual report 2022 in note 20.
Performance related remuneration of the Group’s executive personnel shall aim for value creation for HUNT’s
shareholders or the Group’s earnings performance. Such arrangements shall encourage performance and be based
on quantifiable factors which can be influenced by the employee. Performance related remuneration shall be
subject to an absolute limit.
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As of 31
st
December 2022, the executive personnel’s holdings of shares are the following:
Name Shares
Erik A.S. Frydendal 1,650,000
Sujoy K. Seal 125,000
Lars M. Brynildsrud 15,400
Total 1,790,400
14. Information and Communications
HUNT provides its shareholders, Oslo Børs/Oslo Stock Exchange and the financial markets generally (through Oslo
Børs’/Oslo Stock Exchange’s Distribution Network) with timely and accurate information. Such information takes
the form of annual reports, quarterly interim reports, stock exchange notifications and investor presentations as
applicable. HUNT communicates its long-term potential, including its strategy, value drivers and risk factors,
maintains an open and proactive investor relations policy and a best-practice website, and gives presentations
regularly in connection with annual and interim results in Oslo and Stavanger, Norway.
The Company’s current financial calendar with dates of important events including the Annual General Meeting,
publishing of quarterly reports and its presentations, etc. are accessible for all shareholders on
https://live.euronext.com/ and on the Company’s website www.huntergroup.no. Subscription to news about
HUNT can be made on the Company’s website www.huntergroup.no.
Generally, HUNT, as a company listed on Oslo Børs/Oslo Stock Exchange, discloses all required information as
defined by law. Certain resolutions and circumstances will in any event be disclosed, including but not limited to
Board and GM resolutions regarding dividends, mergers/de-mergers or changes in share capital, issue of warrants,
issue of convertible or other loans, any changes in the rights vested in the shares of the Company (or other
financial instruments issued by HUNT) and all agreements of material importance that are entered into between
the Company and a shareholder, member of the executive personnel, or related parties thereof, or any other
company in the Hunter Group ASA.
An announcement regarding HUNT’s share capital and number of votes related thereto shall be made by the end
of each month during which changes to any of these have occurred.
HUNT will disclose all material information to all recipients equally in terms of timing and content.
15. Takeovers
The Group has not implemented any specific guidelines on how to act in the event of a takeover bid.
Deviation from the Norwegian Code of Practice for Corporate Governance:
The Group has not yet implemented guidelines in case of a takeover. Any bid will be dealt with by the Board of
Directors in accordance with applicable laws and regulations, the Norwegian Code of Practice for Corporate
Governance and based on their recommendation the shareholders’ approval will be requested.
16. Auditor
Under Norwegian law the auditor of the Company (the “Auditor”) is elected by the shareholders in a GM. The
current Auditor serves until a new auditor has been elected.
The Auditor participates in meeting(s) of the Board that deal with the annual accounts as well as the General
Meetings. At these meetings the Auditor reviews any variations in the accounting principles applied, comments on
material accounting estimates and issues of special interest to the Auditor, including possible disagreements
between the Auditor and the management.
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At least once a year the Auditor and the Board of Directors meet without any members of the Group’s executive
personnel present.
The Auditor presents annually to the Audit Committee/Board of Directors the main features of its plan for the
audit of the Group, as well as a review of the Group’s internal control procedures.
The Board of Directors established guidelines in respect to the use of the auditor by the Group’s executive
personnel for services other than the audit.
The remuneration of the Auditor and all details regarding the fees of the audit work and other specific
assignments are presented at the AGM.
The Company’s auditor shall annually submit a written confirmation that the Auditor still continues to satisfy with
the requirements for independence and a summary of all services in addition to audit work that has been
undertaken for the Company.
Corporate governance policy
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Corporate social responsibility policy
1. General
The purpose of this policy is to provide information to all our stakeholders about Hunter Group ASA’s (“HUNT”,
“the Company” or “the Group”) approach to ethical and corporate social responsibility and how we as a Company
propose to work towards achieving it. HUNT is committed to enhancing shareholder value in an ethical and
socially responsible manner.
By implementing this policy, the Company aims to be responsible and an exemplar of good practice. Honesty,
integrity and respect for people underpin everything we as employees do and are the foundation of the Company’s
business practice. We are judged by how we act, and the Company’s reputation will be upheld if each one of us
acts in accordance with the law and the Company’s social responsibility and ethical standards set out herein. The
Company’s reputation and future success are critically dependent on compliance, not just with the law, but also
with high ethical and social standards. A reputation for integrity is a priceless asset. This policy is a further
commitment to integrity for all of us and will help to safeguard that asset.
This document applies to staff, Board members, temporary employees, consultants and any person or entity
acting on behalf of Hunter Group ASA and its subsidiaries. We encourage our business partners to strive for similar
performance.
We are committed to continuous improvement in our corporate social and ethical responsibility and the Board of
Directors and the Company will therefore review this policy regularly.
This policy was approved by the Board of Directors on 27 February 2023 and shall apply until revised and re-
approved.
2. Business practice
2.1 Correct Information, Accounting and Reporting
HUNT’s business information is disclosed accurately, timely and entirely. According to the applicable laws and
regulations and stock exchange listing standards, HUNT provides complete and precise accounts in all its periodic
financial reports, in its public communication and documents submitted to regulatory authorities and agencies.
No information shall be withheld from the external or internal auditor.
All employees who draw up such documents are expected to apply the utmost care, and caution and will use the
applicable accounting standards.
2.2 Fair Competition
HUNT performs its business in such a manner that customers, partners and suppliers can trust in the Group and
competes in a fair and open way.
2.3 Anti - Corruption
Corruption diminishes legitimate business activities, destroys reputations and distorts competition. The Group
opposes all forms of corruption. Through Group procedures, tight internal control and this policy all employees
have to comply with, HUNT acts to prevent corruption within the Group.
Bribery, trading in influence, facilitation payments and all forms of corruption are prohibited. HUNT promotes its
policy on corruption amongst its business partners, contractors and suppliers.
▪ Bribery is defined as an attempt to influence individuals when performing their duties through offering
improper advantages.
▪ Trading in influence exists when an improper advantage (cash, loans, travel, services or similar) is offered to
an individual to influence the performance a third party’s duties.
▪ A facilitation payment is small payment to a public official to enable or speed up a process, which is the
official’s job to arrange.
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Corporate social responsibility policy
HUNT complies with all applicable national and international laws and regulations (for example the OECD
Guidelines for Multinational Enterprises and the International Chamber of Commerce Rules of Conduct to Combat
Extortion and Bribery) with respect to improper payments to local and foreign officials.
2.4 Money laundering
Money laundering is when proceeds from criminal activity which appear to be legitimate sources is converted into
assets.
HUNT employees shall ensure financial transactions and business activities involve funds from legitimate sources
and are not used to launder money.
2.5 Business Communications
HUNT opposes inappropriate, inaccurate or careless communications as it can create serious liability and
compliance risks for the Group. All employees are required to exercise due care when communicating both
internally and externally and particularly when the communication is a written document (including email).
2.6 Political Activity
HUNT does not support any political party. An individual employee may become involved politically as a private
person without referencing to their relationship with the Group.
3. Personal conduct
3.1 Human Rights
HUNT respects the principles of the UN’s Universal Declaration of Human Rights and is guided by its provisions in
the conduct of the Group’s business. The Board of Directors adopted this policy to express the Group’s
requirements for business practice and personal conduct and to demonstrate the Group’s commitment to
maintaining a high standard of social responsibility, ethics and integrity.
Relations with employees are based on respect. HUNT is committed to a working environment with mutual trust
and where everyone is accountable for their own actions and share responsibility for the performance and
reputation of HUNT.
3.2 Equal Opportunity
HUNT does not tolerate any kind of discrimination of employees, customers and partners on account of religion,
gender, sexual orientation, age, nationality, political views, disability or other circumstances. HUNT does not
tolerate unlawful employment discrimination of any kind.
The Group expects all of its employees to treat others they come in contact with through work with respect and
courtesy, and to refrain from harassment, discrimination and any other behavior that may be regarded
threatening or degrading.
It is everyone’s responsibility to create and contribute to a positive working environment for all employees.
3.3 Protection of HUNT’s Property and Possessions
HUNT assets are of considerable value, whether financial or physical assets or intellectual property, and may
therefore only be used to advance HUNT business purposes and goals. These assets must be secured and protected
in order to preserve their value.
All employees are entrusted with Group assets in order to do their jobs and are personally responsible for
safeguarding and using these appropriately. Such assets include buildings and sites, equipment, tools and supplies,
communication facilities, funds, accounts, computer programs and data, information, technology, documents, and
know-how, patents, trademarks, copyrights, time, and any other resources or property of HUNT.
Employees are responsible for protecting Group assets against waste, loss, damage, misuse, theft,
misappropriation or infringement and for using those assets in responsible ways. Use of Group assets without
direct relation to HUNT requires the prior authorization of the employee’s supervisor.
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Corporate social responsibility policy
3.4 Confidentiality
To protect the Group’s legitimate interests and the individual’s privacy and integrity, every employee shall apply
the utmost care to prevent disclosure of confidential information. The Group’s property or information gained
through the employee’s position in HUNT may never be used for personal benefit.
The duty of confidentiality continues after the termination of the employment.
3.5 Conflict of Interest
Individuals acting on behalf of HUNT shall behave objectively and without any kind of favoritism. Companies,
organizations or individuals the Group does business with shall not be given any improper advantages.
No employee may work on any matter or participate in any decision in which they, their spouse, partner, close
relative or any other person with whom they have close relations has a material direct or indirect financial
interest or where there are other circumstances that may undermine the trust in the employee’s impartiality or
the integrity of their work.
Closely related parties shall not have positions within the Group where one is the other’s supervisor without the
CEO’s prior approval.
No employee may participate through employment, directorship or any other assignment in companies in the
same line of business as HUNT without the prior written approval of the CEO or the Chairman of the Board.
Members of the Company’s Board shall inform the chairman of the Board of their involvement in other companies.
3.6 Gifts and Hospitality
No employee may, directly or indirectly, accept gifts from any of the Group’s associates. This rule applies also to
ongoing negotiations. If an employee is offered or may be offered such a gift, he/she shall immediately contact
his/her supervisor, who will decide if the gift will affect the employee’s independence should it be accepted.
Token gifts in connection with Christmas, anniversaries and the like may be exempted from this rule.
Social events, meals or entertainment may be acceptable if there is a clear business reason, and provided the cost
is within reasonable limits.
4. Health, safety and environment (HSE)
HUNT is committed to achieving excellence in all business activities, including health, safety and environmental
performance.
HUNT’s overriding goal is to operate safely, in environmentally and socially responsible ways, and thereby:
▪ Do no harm to people
▪ Protect the environment
▪ Comply with all applicable HSE laws and regulations.
HUNT aims to provide a safe, secure and healthy working environment for all its employees, contractors and
suppliers. We believe that accidents and occupational illnesses and injuries are preventable, and hence apply our
efforts and resources to achieving the goals listed above.
HUNT requires its subsidiaries to implement HSE systems relevant to their industry in compliance with
internationally recognized standards.
HUNT is paying for insurance for all sub-contracted workers involved with the production of ordered vessels at
DSME.
HUNT has adopted the Norwegian “inkluderende arbeidsliv” (equal opportunity rights) scheme, incorporating
procedures for an active follow-up on employees’ sick leave and cooperating with the Group’s health service.
During 2022 absence due to sickness in HUNT was approximately 0%.
Hunter Group ASA - 2022
14
Corporate social responsibility policy
HUNT aims to reduce the Company’s carbon footprint and its impact on the environment through a commitment
to continual improvement. It is the responsibility of the Company’s management and subsidiaries to meet the
Company’s ambition and to comply with all applicable legislation and regulations.
No injuries or accidents have been reported in 2022.
5. Follow-up
5.1 Personal Follow-Up
Everyone to whom this policy applies shall make themselves familiar with the same and carry out their duties
accordingly.
5.2 Handling Cases of Doubt and Breach
All employees shall without undue delay contact their supervisor, the CEO or the chairman of the Board in the
event of ethical doubts, breaches of this policy or when discovering anything illegal or unethical.
5.3 Manager’s Responsibility
Managers shall ensure that this Group policy is communicated to their staff, and shall give advice on how they are
to be interpreted. Operations within their department shall be conducted according to this policy.
5.4 Outlook
HUNT will work with and assign priority to corporate social responsibility in 2023. HUNT aims to keep absence due
to sick leave low in 2023. With further emphasis on HSE, the Group works towards another accident and injury
free year at HUNT.
Hunter Group ASA - 2022
15
Responsibility Statement
The Board of Directors and the CEO confirm that to the best of our knowledge the financial statements as of 31
December 2022, which have been prepared in accordance with IFRS as adopted by the European Union and
generally accepted accounting practice in Norway, provides a true and fair view on the Group’s consolidated
assets, liabilities, financial position and result.
We also confirm, to the best of our knowledge that the Board of Directors’ report includes a true and fair
overview of the development, performance and financial position of the Group, together with a description of the
principal risks and uncertainties they face.
Oslo, 27 February 2023
The board of directors and Chief Executive Director
Hunter Group ASA
Erik A. S. Frydendal
CEO
Henrik A. Christensen
Chairman of the board
Hunter Group ASA - 2022
16
Board of Directors’ report 2022
Operations and locations
HUNT is a public limited liability company pursuant to the Norwegian Public Limited Companies Act,
incorporated under the laws of Norway. The legal and commercial name of the Company is Hunter Group ASA.
The Company was established on 20 June 2003 and is registered in the Norwegian Register of Business
Enterprises under the organization number 985 955 107. The Company changed its name to Hunter Group ASA in
in April 2017 and also moved the Company’s registered office to Oslo. The Company's registered business
address now is Dronningen 1, N-0287 Oslo, Norway.
In April 2018 Hunter Group entered into a definitive VLCC contract transfer agreement with Apollo Asset Ltd.
Subsequently, Hunter Tankers AS was established. In the May 2018 AGM, the shareholders of Hunter Group ASA
approved taking over the four VLCC construction contracts and three options from Apollo Asset Ltd on a “back-
to-back” basis as contracted with Daewoo Shipbuilding Marine Engineering Co., LTD whereby the Company
assumed the obligations versus the Shipyard.
In May 2018 the board decided to exercise the options for construction of three additional vessels. Each of the
option vessels had a price of USD 82.8m, plus USD 2.7m for each scrubber. In November 2018, Hunter Tankers AS
signed a contract for one additional VLCC at DSME, with identical specifications. In October 2019, the Company
sold one VLCC for USD 98 million, taking the fleet to a total of seven VLCCs.
Between August 2019 and November 2022, the Company successfully took delivery of it’s VLCCs, and
successfully employed the vessels in the spot and time charter market. The Company divested the first vessel in
April 2021, and have since gradually divested the remaining fleet. The final vessel was delivered to her new
owner in November 2022. Following the divestment of the VLCC fleet, the Company has been in the process of
distributing the investment returns to the shareholders of the Company, while simultaneously developing new
investment projects. At the date of this report, there are no significant business operations in Hunter Tankers
AS.
At present, there are no business activities in Indicator AS (containing the Badger-technology). The entire result
for 2022 has therefore been presented as discontinued operations.
The Company's shares are listed on Oslo Euronext Expand, a regulated market operated by the Euronext Group
under the ticker "HUNT".
Going concern
In accordance with the Accounting Act § 3-3a, we confirm that the financial statements have been prepared
under the assumption of going concern. This assumption is based on the sound financial position of the
Company, with an estimated liquidity runway of approximately 3.5 years. The Company is classified as an
investment Company and has recently divested a major oil tanker investment project. Simultaneously with the
divestment of the oil tanker fleet, the Company has worked with the development of several new investment
projects which are expected to materialize during the course of 2023. The Company expects to retain
approximately NOK 40 million in net liquidity, which will sufficiently cover project development costs, salaries,
office lease, listing fees, legal fees and accounting/audit fees for approximately 3.5 years from the date of this
report.
Comments related to the financial statements
The Group’s revenues increased from USD 40.4 million in 2021 to USD 74.8 million in 2022. Net income from
operations in 2022 was USD 47.4 million compared to USD 3.8 million in 2021. The profit in 2022 is mainly due to
successful operation and gains on sale of the Company’s VLCCs.
Hunter Group ASA - 2022
17
Board of Directors’ report 2022
Total cash flow from operating activities was USD 13.2 million in 2022 mainly driven by vessel chartering
revenue and operational expenses.
Net cash flow to financing activities for 2022 was negative USD 283.6 million, mainly related to dividend
payments and repayment of loans from financing institutions. Net cash flow from investments were USD 384.6
million, mainly related to the sale of the Company’s four VLCCs.
Total consolidated adjusted cash position as per 31 December 2022 was USD 136.9 million. All cash-flows relates
to the discontinued operations of the VLCCs.
Total assets at year-end 2022 amounted to USD 139.2 million, compared to USD 371.9 million last year. The
equity ratio was 99.4% as of 31 December 2022, compared to 47.5 % the year before.
Financial risk
Overall view on objectives and strategy
HUNT’s main objective for the management of its capital structure is to maximize value creation for
shareholders, while at the same time maintaining a sound financial position.
HUNT manages its capital structure and adjusts it in light of changes in economic conditions. To maintain or
adjust the capital structure, the Company may issue equity, take up debt or a combination of the two. No
changes were made in the objectives policies or processes during the financial year.
Market risk
The Group is currently in the process of developing new investment projects, but is not directly involved in any
business operations. The general economic and financial market conditions may affect the Company’s ability to
execute and finance the contemplated investment projects.
The Group’s exposure towards currency fluctuations is limited, and the Company has zero financial
indebtedness.
Credit risk
The Company only trades with recognized, creditworthy third parties. It is the Group’s policy that all customers
that wish to trade on credit terms are subject to credit verification procedures. All cash in the Group is
deposited in the Norwegian bank DNB. Credit risk is managed through a framework that sets out policies and
procedures covering the measurement and management of credit risk.
Liquidity risk
The Company monitors its liquidity on a regular basis and produces rolling liquidity forecasts in order to identify
liquidity requirements in future periods. The policy for HUNT’s management of liquidity risk is to maintain a
minimum liquidity corresponding to its net liquidity requirements for 12 months.
The Company was at year end in the process of distributing investment gains from its VLCC project in Hunter
Tankers AS, which has been the Group’s major business since 2018. The Group’s policy has been to return
investment proceeds from specific investment projects to its shareholders, before raising additional capital to
finance new investment projects. The Group is currently in the phase of finalizing these distributions while
simultaneously developing new investment projects. Following the proposed dividend of NOK 0.04 per share,
which will be voted at the Company's EGM on 16 February 2023, the Group will retain net liquidity of
approximately NOK 40 million. This is estimated to cover project development costs, salaries, office lease,
listing fees, legal fees and accounting/audit fees for approximately 3.5 years from the date of this report.
Hunter Group ASA - 2022
18
Board of Directors’ report 2022
The working environment, the employees and equal opportunities
The Company has not registered any critical incidents or leave of absence due to incidents. The percentage of
days lost through illness was 0 % in 2022 and 2021.
Relations with employees are based on respect. The Company is committed to a working environment with
mutual trust and where everyone is accountable for their own actions and share responsibility for the
performance and reputation of the Company.
The Company had 3 employees by the end of 2022.
We kindly refer to our corporate governance and corporate social responsibility documents on page 4 to 14 for
further information.
There is an insurance in place for the members of the Board.
Discrimination
The Discrimination Act’s objective is to promote gender equality, ensure equal opportunities and rights, and to
prevent discrimination due to ethnicity, national origin, descent, skin color, language, religion and faith. The
Company does not tolerate any kind of discrimination of employees, customers and partners on account of
religion, gender, sexual orientation, age, nationality, political views, disability or other circumstances. The
Company does not tolerate unlawful employment discrimination of any kind. The Group expects all of its
employees to treat others they come in contact with through work with respect and courtesy, and to refrain
from harassment, discrimination and any other behavior that may be regarded threatening or degrading.
Environmental report
There have been no incidents reported related to emissions that has resulted in a breach of the pollution act or
other pollution of significance.
Research and development
All R&D activities in Indicator has been put on hold.
Subsequent events
Extraordinary General Meeting held on 19 January 2023 which inter alia approved the board’s proposal to
distribute two extraordinary dividends of NOK 0.51 per share and NOK 1.80 per share. The NOK 0.51 per share
dividend was distributed as a reduction of paid in capital, while the NOK 1.80 per share dividend was distributed
as earned capital. In total this amounts to USD 132.4 million for the outstanding shares.
On February 14, 2023, leading employees of the Company exercised all of their options for 7,850,000 shares in
the Company. Reference is made to Note 20 of the Consolidated Financial Statements for further information of
the LTI Options held by leading employees.
Extraordinary General Meeting held on 16 February 2023 which rejected the board’s proposal of a NOK 0.04 per
share dividend
Hunter Group ASA - 2022
19
Board of Directors’ report 2022
Future challenges
For the Group, the future challenges relates to the successful development and execution of new investment
projects.
Allocation of net income
The Board of Directors has proposed the net income of Hunter Group ASA of USD 123.3 million to be attributed
to:
Proposed dividend USD -132.4 million
From retained earnings USD 9.1 million
Oslo, 27 February 2023
Henrik A. Christensen
Chairman of the board
Hunter Group ASA - 2022
20
Consolidated statement of profit and loss
For the year ended 31 December
(Figures in USD 1 000) Note 2022 2021
Revenues and other income
Pool revenues 15 6,899 7,438
Time charter revenues 15 11,482 29,722
Other income 15 0 704
Net gain on sale of assets 2, 15 56,418 2,567
Total revenues and other income 74,799 40,431
Operating expenses
Vessel operating expenses 16 6,763 9,776
Voyage expenses and commissions 2,526 1,916
Depreciation and amortisation expense 4, 5 8,033 13,754
General and administrative expenses 14, 16, 20 1,993 1,815
Total operating expenses 19,316 27,261
Operating profit (loss) 55,484 13,171
Net financial income (loss) 17 -8,108 -9,394
Profit (loss) before taxes 47,376 3,776
Tax on ordinary result 18 0 0
Net profit (loss) from discontinued operations 47,376 3,776
Net profit (loss) from continuing operations* 1.1 0 0
Earnings per share discontinued operations 19 0.08 0.01
Earnings per share diluted discontinued operations 19 0.08 0.01
Earnings per share continuing operations 19 0.00 0.00
Earnings per share diluted continuing operations 19 0.00 0.00
Consolidated statement of comprehensive income
(Figures in USD 1 000) 2022 2021
Profit (loss) for the year 47,376 3,776
Other comprehensive income, items to be reclassified to profit & loss
Translation differences 0 0
Total compehensive income 47,376 3,776
Total comprehensive income attributable to:
Equity holders of the parent company 47,376 3,776
Total comprehensive income 47,376 3,776
* The amounts for 2021 and 2022 relates in all material aspects to the VLCC business. All the VLCC vessels were sold in 2022 and the
tanker vessel segment was as such discontinued. Hence; the entire results of 2021 and 2022 is classified as discontinued operations.
Discontinued operations*:
Hunter Group ASA - 2022
21
Consolidated statement of financial position
As at 31 December
(Figures in USD 1 000) Note 2022 2021
NON-CURRENT ASSETS
VLCC vessels 4, 10 0 332 521
Other tangible assets 4, 5, 10 148 318
Total tangible assets 148 332 839
TOTAL NON-CURRENT ASSETS 148 332 839
CURRENT ASSETS
Trade and other receivables 6, 10, 13 2 160 5 513
Other short-term assets 7, 13 55 3 878
Total current assets 2 214 9 391
Cash and cash equivalents 8, 13 136 866 29 639
TOTAL CURRENT ASSETS 139 080 39 030
TOTAL ASSETS 139 228 371 869
Hunter Group ASA - 2022
22
Consolidated statement of financial position
Oslo, 27 February 2023
Henrik A. Christensen
Chairman of the board
As at 31 December
(Figures in USD 1 000) Note 2022 2021
EQUITY
Share capital (575 362 013 shares) 21 126 82 625
Own shares 21 -2 -1 660
Share premium 0 15 034
Other equity 138 314 80 522
TOTAL EQUITY 138 438 176 521
LIABILITIES
Interest-bearing debt 5, 9, 10 0 180 514
Total non-current liabilities 0 180 514
Trade payables 11, 13 71 195
Accrued public charges and indirect taxes 13 44 68
Current portion of interest-bearing debt 9, 10 152 13 500
Other current liabilities 12, 13 523 1 070
Total current liabilities 790 14 833
TOTAL LIABILITIES 790 195 346
TOTAL EQUITY AND LIABILITIES 139 228 371 869
Hunter Group ASA - 2022
23
Consolidated statement of cash flows
For the year ended 31 December
(Figures in USD 1 000) Note 2022 2021
Profit (loss) before tax 47 376 3 776
Depreciation 8 033 13 754
Gain on sale of VLCC 2 -56 418 -2 567
Financial income -1 614 -4
Financial expenses 4 386 8 430
Change in accounts receivables and accounts payables 3 230 -2 026
Net foreign exchange differences 6 941 0
Change in other receivables and payables and other 1 258 -2 948
Net cash flow from operating activities 13 190 18 415
Investments in PP & E 4 0 -8
Interest received 17 1 614 4
Sale of VLCC* 4 383 000 83 575
Net cash flow from investment activities 384 614 83 571
Interest paid 17 -4 168 -6 441
Installments other interest-bearing debt 9, 10 -193 769 -61 802
Installment leasing-debt (IFRS 16) 5 -92 -94
Purchase of own shares Equity -4 311 -1 267
Dividend paid Equity -81 296 -97 887
Net cash flow from financing activities -283 636 -167 491
Total change in cash and cash equivalents 114 168 -65 505
Currency effect on cash -6 941 0
Cash and cash equivalents beginning of year 29 639 95 146
Cash and cash equivalents end of year 8 136 866 29 639
* Includes broker commision related to the sale of VLCC of TUSD -1,995 in 2022 and TUSD -925 in 2021.
Discontinued operations:
Hunter Group ASA - 2022
24
Consolidated statement of changes in equity
Share Own Share Currency Retained Total
(Figures in USD 1 000) Note Capital Shares premium translation earnings equity
Equity as of 01.01.2021 82 625 -1 121 113 364 -2 289 79 035 271 614
Net profit 2021 0 0 3 776 3 776
Other comprehensive income 0 0 0
Total comprehensive income 2021 0 3 776 3 776
Repayment of capital -97 887 0 0 -97 887
Share based payment 285 0 0 285
Purchase of own shares -539 -728 0 0 -1 267
Equity as of 31.12.2021 82 625 -1 660 15 034 -2 289 82 811 176 521
Net profit 2022 0 47 376 47 376
Other comprehensive income 0 0 0
Total comprehensive income 2022 0 47 376 47 376
Repayment of capital -82 499 1 319 -12 794 0 12 677 -81 297
Purchase of own shares -2 071 -2 240 0 0 -4 311
Awarded of own shares 2 410 0 0 -2 410 0
Share based payment 0 0 149 149
Equity as of 31.12.2022 126 -2 0 -2 289 140 603 138 438
*) Repayment of capital per share is USD 0.14 in 2022 and USD 0.17 in 2021.
Hunter Group ASA - 2022
25
Note 1 - Significant accounting principles
Hunter Group ASA (HUNT) is a public limited liability company, incorporated in Norway, headquartered in Oslo and
listed on the Oslo Stock Exchange (Euronext Expand), address headquarter: Dronningen 1, 0287 Oslo, Norway.
The financial statements of Hunter Group ASA for the fiscal year 2022 were approved in the board meeting on 27
February 2023.
The Group’s activities are described in the Board of Director’s report.
1.1 Basis of presentation of the accounts
HUNT’s financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS), and IFRS as adopted by the EU, and are mandatory for financial year beginning on or after 1 January 2022,
and Norwegian disclosure requirements listed in the Norwegian Accounting Act as of 31 December 2022.
The historical cost basis have been used when preparing the financial statements, except for financial instruments
measured at fair value. These policies have been applied consistently to all periods presented, and certain amounts
in the comparable year have been reclassified to be consistent with current year presentation. Some totals may not
equal the sum of the amounts shown due to rounding.
Following the sale of the last remaining tanker vessel in late November 2022, the group has discontinued its tanker
shipping business. The Group has had no other material activity in 2021 and 2022, and also general overhead
expenses has in its entirety been allocated to the discontinued tanker business. Based on IFRS 5.33b) management
has concluded to present the analysis of result from discontinued operations in the statement of comprehensive
income as this would give more useful information than presenting the entire result for the year on one line called
"result from discontinued operations". Correspondingly, management has used the option in IFRS 5.33c) to present
the analysis of cash flow from discontinued operations on the face of the cash flow statement. As the entire
business in both 2022 and 2021, the disclosures in the corresponding notes pertaining to income statement amounts
and cash flows relate to discontinued operations. Disclosures related to balance sheet items as of year-end 2022
relates to assets remaining in the group following the sale of all tanker vessels, and primarily relates to working
capital.
Consolidation
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains
control, and continue to be consolidated until the date that such control ceases.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company,
using consistent accounting policies. All intra-group balances, transactions, unrealized gains and losses resulting
from intra-group transactions and dividends are eliminated in full. A change in the ownership interest of a
subsidiary, without a loss of control, will be accounted for as an equity transaction. The Group consist of the
following companies as per 31 December 2022:
• Hunter Group ASA (parent company)
• Indicator AS (100% owned subsidiary dormant)
• Hunter Tankers AS (100% owned subsidiary dormant)
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the
non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable
net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic circumstances and pertinent
conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the
acquiree.
Notes to the consolidated financial statements 2022
Hunter Group ASA - 2022
26
Note 1 - Significant accounting principles cont.
1.2 Use of estimates when preparing the annual financial statements
Estimates and their underlying assumptions that affect the application of accounting principles and reported
amounts of assets and liabilities, income and expenses are based on historic experience and other factors
considered reasonable under the circumstances. The estimates constitute the basis for the assessment of the net
book value of assets and liabilities when these values cannot be derived from other sources. Actual results may
differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and in any future periods
affected.
Following the sale of all tanker vessels and discontinuance of the tanker shipping business, there are no longer
significant estimation uncertainty as per year-end 2022 related to valuation of vessels. Hunter Tankers AS has been
taxed under the Norwegian Tonnage Tax rules. As all qualifying assets has been sold as per year-end, the company
would either have to reinvest in a qualifying asset within 12 months of the last sale or liquidate. Failure to do one of
these could result in the company becoming ordinary taxed from 1 January 2022, resulting in the gain from sale of
vessels could be taxable. Management plans for Hunter Tankers to either reinvest or liquidate, and as such, taxes
has been estimated based on the assumption that Hunter Tankers will be taxed under the Norwegian Tonnage Tax
scheme for 2022.
The preparation of the Group’s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosures.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future periods. Please refer to 1.3, 1.11 and note 4 for
further information about VLCC (not applicable as of 31 December 2022).
1.3 Impairment of assets
The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired.
An assessment of impairment losses on assets is made when there is an indication of a fall in value. If an asset’s
carrying amount is higher than the asset’s recoverable amount, an impairment loss will be recognized in the
statement of profit or loss. The recoverable amount is the higher of the fair value less costs to sell and the
discounted cash flow from continued use. The fair value less costs to sell is the amount that can be obtained from a
sale to an independent third party minus the sales costs. The recoverable amount is determined separately for all
assets but, if this is impossible, it is determined together with the entity.
Impairment losses recognized in the statements of profit or loss of previous periods are reversed when there is
information that the need for the impairment loss no longer exists or is not as great as it was. However, no reversal
takes place if the reversal leads to the carrying amount exceeding what the carrying amount would have been if
normal depreciation periods had been used.
The Group follows the development of the price of the Company’s listed shares, the daily market rates for the VLCC
operations, and monitors the development of the pricing of new ships when evaluating if there exist indicators of
the Group’s VLCCs. The recoverable amount was determined based on fair value less cost to sell. Management
obtained an external valuation for similar newbuilds as evidence of fair value less cost to sell. Please refer to note 4
for further information.
1.4 Cash and cash equivalents
Cash includes cash in hand and at bank. Cash equivalents are short-term liquid investments that can be immediately
converted into a known amount of cash and have a maximum term to maturity of three months.
1.5 Statement of cash flows
The statement of cash flows is prepared in accordance with the indirect method.
Notes to the consolidated financial statements 2022
Hunter Group ASA - 2022
27
Note 1 - Significant accounting principles cont.
1.6 Functional currency and presentation currency
The main transactions for Hunter Group ASA and Hunter Tankers AS has been in USD. Due to the functional currency
for the two main companies in the Group are in USD, it is also the considered to be beneficial to present the
financial statements of the Group in USD.
Transactions in foreign currency are translated at the rate applicable on the transaction date. Monetary items in a
foreign currency are translated into USD using the exchange rate applicable on the balance sheet date.
Non-monetary items that are measured at their historical price expressed in a foreign currency are translated into
USD using the exchange rate applicable on the transaction date. Non-monetary items that are measured at their fair
value expressed in a foreign currency are translated at the exchange rate applicable on the balance sheet date.
Changes to exchange rates on monetary items are recognized in the income statement as they occur during the
accounting period.
1.7 Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss at
amortized cost, as appropriate. All financial assets are recognized initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of
the financial asset. The Group determines the classification of its financial assets at initial recognition. The Group’s
financial assets include cash and cash equivalents, trade and other receivables.
Subsequent measurement
Receivables are classified as financial assets measured at amortized costs.
The subsequent measurement of financial assets depends on their classification as described below:
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market.
After initial measurement, such financial assets are subsequently measured at amortized cost using the EIR
(effective interest rate) method, less impairment. Amortized cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in
finance income in the statement of profit or loss. The losses arising from impairment are recognized in the
statement of profit or loss in other operating expenses for receivables.
This category includes accounts receivable and other receivables carried at amortized cost or at nominal amount
less provision for bad debt where this can be regarded as a reasonable proxy for fair value.
Other financial assets are cash and cash equivalents and other financial investments, measured at balance sheet
date rate for items in foreign currency.
1.8 Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, or
borrowings at amortized cost, as appropriate.
HUNT’s financial liabilities include trade and other payables and IFRS 16 lease liabilities.
Subsequent measurement
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
Notes to the consolidated financial statements 2022
Hunter Group ASA - 2022
28
Note 1 - Significant accounting principles cont.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly
attributable transaction costs.
The Group’s financial liabilities include trade and other payables and borrowings.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities at amortized cost (loans and borrowings)
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss
when the liabilities are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss.
This category generally applies to interest-bearing loans and borrowings
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial
position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle the liabilities simultaneously.
1.9 Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and accumulated impairment
losses. When fixed assets are sold or disposed of, the gross carrying amount and accumulated depreciation are
derecognized, and any gain or loss on the sale or disposal is recognized in the statement of profit or loss.
The gross carrying amount of fixed assets is the purchased price, including duties/taxes and direct acquisition costs
relating to making the asset ready for use. Subsequent costs, such as repair and maintenance costs, are recognized
in profit or loss as incurred. When increased future economic benefits as a result of repair/maintenance work can be
proven, such costs will be recognized in the statement of financial position as additional to fixed assets.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
Plant and machinery: 3 - 5 years
VLCC vessels: 25 years
VLCC equipment: 3 – 5 years
The depreciation period, the depreciation method and the residual value of fixed assets are evaluated annually.
Vessels and equipment
The net cost of the VLCCs (less estimated residual value) is the basis for a straight-line depreciation over the
estimated remaining economic useful lives (25 years). Other equipments (excluding vessel upgrades) are depreciated
over its estimated remaining useful life (5 years). The estimated residual value for the VLCCs is calculated by
multiplying the lightweight tonnage with the market price of scrap per tonne. The market price of scrap per tonne
is based on price of scrap at delivery (USD 325/lwt) in Pakistan. Residual values are reviewed annually.
Notes to the consolidated financial statements 2022
Hunter Group ASA - 2022
29
Note 1 - Significant accounting principles cont.
1.10 Provisions
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. Provisions are evaluated at the end of each month and adjusted to
reflect the available information about the provision. When the information available is insufficient, the best
estimate is used.
1.11 Recognition of revenue
Revenue is recognized to reflect the transfer of promised goods or services to customers, and then at an amount
that reflects the consideration the company expects to be entitled to in exchange for those goods or services.
The Group hires out its vessels to the Tankers International (TI) pool and receives, as compensation, a daily rate
that varies from day to day, depending on the net result generated in TI. The company will thus recognize such
income on an ongoing basis based on earned daily rate. The company's revenues from the pool are presented as Pool
revenues in the income statement.
The time charter revenue is generated from fixed rate time charter contracts. Revenue from time charters are
accounted for as lease in accordance with IFRS 16 and is classified as time charter revenue in the income
statement. The Group’s time charter contracts have a duration of 3-9 months and a significant portion of the risks
and rewards of ownership are retained by the lessor (Hunter), hence the lease is classified as operating lease.
Payments received under operating leases are recognized as revenue on a straight-line basis over the lease term.
Furthermore, the Group will also cover any surplus fuel after the ship arrives at the pool (without profit). In such
cases, the Group will sell surplus fuel on board when the ship is delivered to TI. TI's surplus fuel coverage are
recognized net.
1.12 Income tax
The tax expense consists of the tax payable and changes to deferred tax. Deferred tax/tax assets are calculated on
all differences between the book value and tax value of assets and liabilities.
Deferred tax assets are recognized when it is probable that the Group will have a sufficient profit for tax purposes in
subsequent periods to utilize the tax asset. The Group recognize previously unrecognized deferred tax assets to the
extent it has become probable that the Group can utilize the deferred tax asset. Similarly, the Group will reduce a
deferred tax asset to the extent that the Group no longer regards it as probable that it can utilize the deferred tax
asset.
Deferred tax and deferred tax assets are measured on the basis of tax rates that have been enacted or substantially
enacted at the reporting date.
Deferred tax and deferred tax assets are recognized at their nominal value and classified as non-current assets
(long-term liabilities) in the balance sheet.
Notes to the consolidated financial statements 2022
Hunter Group ASA - 2022
30
Note 1 - Significant accounting principles cont.
Taxes payable and deferred taxes are recognized directly in equity to the extent that they relate to equity
transactions.
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to
set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities
which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the
liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
The subsidiary Hunter Tankers AS is part of the shipping tax rules in Norway, which in all material aspects results in
the company being taxable only for part of the net financial result.
1.13 Contingent liabilities and assets
Contingent liabilities are not recognized in the annual accounts. Significant contingent liabilities are disclosed, with
the exception of contingent liabilities that are remote to be incurred.
Contingent assets are not recognized in the annual accounts but are disclosed if it is probable that a benefit will be
added to the Group. Further reference is made to note 1.2.
1.14 Leases
In the financial statement of lessees, the standard requires recognition of all contracts that qualify under its
definition of a lease as right-of-use assets and lease liabilities in the balance sheet, while lease payments are to be
reflected as interest expense and reduction of lease liabilities. The right-of-use assets are to be depreciated in
accordance with IAS 16 Property, Plant and Equipment over the shorter of each contract’s term and the assets’
useful life.
Borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in
profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost
is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss.
1.15 Equity
Cost of equity transactions
Transaction costs directly related to an equity transaction are recognized directly in equity after deducting tax
expenses.
1.16 Events after the reporting period
New information on the Group’s financial position at the end of the reporting period which becomes known after
the reporting period is reflected in the annual accounts. Events after the reporting period that do not affect the
Group’s financial position at the end of the reporting period but which will affect the Group’s financial position in
the future are disclosed if significant.
1.17 Segments
For management purposes, the Group is organized into one business unit based on its products and services, and has
a reportable segment which first developed the VLCC construction contracts and options, and then operates these
vessels. No operating segments have been aggregated to form the reportable operating segment.
The management monitors the operating results of its business units separately for the purpose of making decisions
about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss
and is measured consistently with profit or loss in the consolidated financial statements.
Notes to the consolidated financial statements 2022
Hunter Group ASA - 2022
31
Note 1 - Significant accounting principles cont.
1.18 Share-based payment
Employees of HUNT receive remuneration in the form of share-based payments, whereby employees render services
as consideration for equity instruments (equity-settled transactions).
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an
appropriate valuation model, further details of which are given in note 20. That cost is recognized in employee
benefits expense, together with a corresponding increase in equity (other capital reserves), over the period in which
the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative
expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent
to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will
ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in
cumulative expense recognized as at the beginning and end of that period.
No expense is recognized for awards that do not ultimately vest because non-market performance and/or service
conditions have not been met. Where awards include a market or non-vesting condition, the transactions are
treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair
value of the unmodified award, provided the original terms of the award are met. An additional expense, measured
as at the date of modification, is recognized for any modification that increases the total fair value of the share-
based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity
or by the counterparty, any remaining element of the fair value of the award is expensed immediately through
profit or loss.
1.19 Accounting principles for discontinued operations
All the VLCC vessels were sold in 2022 and the tanker vessel segment was as such discontinued. As the amounts in
the amounts in the consolidated statement of profit and loss and the statement of cash flows in all material aspects
relates to the taker vessel segment, these statements have been classified as discontinued operations in full.
1.20 Changes in accounting policies and disclosures
The accounting policies adopted are consistent with those of the previous financial year, except for the new and
amended standards and interpretations to IFRS which have been implemented by the Group during the current
financial year. Several other amendments and interpretations apply for the first time in 2022, but do not have an
impact on the consolidated financial statements of the Group. The Group has not early adopted any standards,
interpretations or amendments that have been issued but are not yet effective.
Amendments to standards and interpretations with a future effective date
Following the discontinuance of the group's current operations, none of the future amendments to standards are
expected to have material impact on the group.
Notes to the consolidated financial statements 2022
Hunter Group ASA - 2022
32
Note 2 – Significant acquisitions and disposals, and discontinued operations
Hunter Atla was sold in 2021 for an en-bloc price of USD 84.5 million, with a gain of USD 2.6 million. On 30 June
2022, the Group concluded the sale of Hunter Disen for an en-bloc price of USD 96.0 million, with a gain of USD 15.1
million. On 22 July 2022, the Company concluded the sale of Hunter Idun for an en-bloc price of USD 95.5 million,
with a gain of USD 13.9 million. On 2 August 2022, the Company concluded the sale of Hunter Frigg for an en-bloc
price of USD 96.0 million, with a gain of USD 9.0 million. On 23 November 2022, the Company concluded the sale of
Hunter Freya for an en-bloc price of USD 95.5 million, with a gain of USD 18.0 million.
As all of the Group’s VLCC were sold the tanker vessel segment discontinued at the end of 2022. In all material
aspects all of the Group’s business relates to the tanker vessel segment, and the consolidated statement of profit
and loss and the consolidated statement of cash flow are therefore classified as discontinued operations. In January
2023 it was decided to distribute the major part of the Group’s cash position to its share holders.
Note 3 - Segment information
Based on the nature of the vessels, processes and type of customers it was concluded that the Group had one
segment and information on segment performance is found in the consolidated statements of income and financial
position. As the financial statement is consistent with the internal financial reporting for the tanker vessel segment
and thus is equal to the Income Statement, Statement of Financial Position and Cash flow statement, no further
disaggregation is provided. The Group does not consider the domicile of its customers as a relevant decision-making
guideline and hence does not consider it meaningful to allocate vessels and related income to specific geographical
locations. The tanker vessel segment was discontinued at the end for 2022.
Note 4 - Property, plant and equipment (discontinued)
Notes to the consolidated financial statements 2022
IFRS 16
PP&E
Other tangible
assets
VLCC vessels Total
Cost price at 1 January
349 10 439 102 439 461
Additions
223 8 0 231
Sale
-101 0 -88 867 -88 968
Transfer to VLCC in operation 0
0 0 0
Cost price at 31 December 471 18 350 235 350 724
Accumulated depreciations at 31 December
-159 -14 -17 712 -17 886
Book value at 31 December
312 3 332 523 332 839
Depreciation (straight-line method)
93 8 13 653 13 754
Estimated useful life
3-5 years 3-10 years 25 years
IFRS 16
PP&E
Other tangible
assets
VLCC vessels Total
Cost price at 1 January
471 18 350 235 350 724
Additions
0 0 0 0
Sale
-68 0 -350 235 -350 303
Transfer to VLCC in operation 0
0 0 0
Cost price at 31 December 403 18 0 421
Accumulated depreciations at 31 December
-256 -18 0 -274
Book value at 31 December
148 0 0 148
Depreciation (straight-line method)
97 3 7 933 8 033
Estimated useful life
3-5 years 3-10 years 25 years
Hunter Group ASA - 2022
33
Notes to the consolidated financial statements 2022
Note 4 - Property, plant and equipment cont.
As 2021 saw a drop in the average daily rates for the Group’s vessels, a valuation of the four vessels were performed
at the end of 2021. Based on assumptions as average daily rates of TUSD 37 and WACC of 10 %, the net present value
was significantly above book value as per 31.12.2021. The valuations are supported by independent broker
estimates.
Note 5 - Leases
(figues in USD 1 000) 2022 2021
Right of use assets 1.1 313 207
Additions 0 223
Sale -68 -25
Depreciation -97 -93
Right of use assets 31.12 148 313
Other interest-bearing debt 1.1 313 208
Addition 0 223
Sale -69 -25
Installments -92 -94
Other interest-bearing debt 31.12 152 313
Interest 11 9
Less than Between More than
Remaining rental-payments as per 31.12.22 1 year 2 - 5 years 5 years Total
Office rent, gas bottles (5 years), liferafts (5 years) and VSAT (3 years) 78 89 0 167
The remaining right of use assets and interest-bearing debt as of 31 December 2022 relates to the office rent.
Hunter Group ASA - 2022
34
Notes to the consolidated financial statements 2022
Note 6 – Trade and other receivables
Trade receivables are non-interest bearing and the payment terms are generally net 30 days. Fair value of the
receivables approximates the nominal values, less provision for doubtful receivables, which was NOK 0 million per
31 December 2022 and 31 December 2021. The largest customers has in 2022 been Tankers International (pool
revenues – 45 %), Trafigura Maritime Logistics Pte Ltd (11 %), ST Shipping and Transport Pte Ltd (13 %) and Mercuria
(31 %).
Note 7 - Other short-term assets
Note 8 - Cash and cash equivalents
Note 9 - Current interest-bearing loans and borrowings
(Figures in USD 1 000) 31.12.2022 31.12.2021
Performed work earned, not invoiced (contract assets)
2 160 5 513
Other
0 0
Total trade and other receivables 2 160 5 513
Age distribution of trade receivables
As at 31 December, the ageing analysis of trade receivables is as follows:
Neither
past due nor
Past due but not impaired
Total impaired >30 days 30-60 days 60-90 days 90-120 days >120 days
2022
2 160 2 160 0 0 0 0 0
2021
5 513 5 513 0 0 0 0 0
(Figures in USD 1 000) 31.12.2022 31.12.2021
Prepaid expenses
55 3 878
Total other receivables 55 3 878
(Figures in USD 1 000) 31.12.2022 31.12.2021
Cash at bank
136 866 29 639
Total cash at bank
136 866 29 639
Restricted bank deposits for employee withholding taxes
39 39
(Figures in USD 1 000) 31.12.2022 31.12.2021
Current portion of interest-bearing debt
152 13 500
Current portion of interest-bearing debt
152 13 500
Hunter Group ASA - 2022
35
Notes to the consolidated financial statements 2022
Note 9 - Current interest-bearing loans and borrowings cont.
Reconciliation of liabilities arising from financing activities:
Note 10 - Other interest-bearing debt
Average interest rate on interest-bearing debt was 4.45% in 2022 compared to 2.91 % in 2021. Book value of
interest-bearing debt approximately equal fair value. Please see note 13 for the maturity analysis for short-term
liabilities.
As of 31 December 2022, all external debt has been fulfilled as the tanker vessel segment was discontinued.
Note 11 - Trade payables
Trade payables are generally non-interest bearing and the payment terms are net 30 days. Fair value of the
payables equals the nominal value.
Non-cash changes
Cash FX Fair value
2022
31.12.2021 flows IFRS 16 movement chng. & other 31.12.2022
Other interest-bearing debt (long-term)
180 514 -180 442 -72 0 0 0
Short-term liabilities
13 500 -13 328 -20 0 0 152
Total liabilities from financing activities
194 013 -193 769 -92 0 0 152
Non-cash changes
Cash FX Fair value
2021 31.12.2020
flows IFRS 16 movement chng. & other 31.12.2021
Other interest-bearing debt (long-term)
237 954 -58 677 -114 0 1 350 180 514
Short-term liabilities
16 605 -3 125 20 0 0 13 500
Total liabilities from financing activities
254 559 -61 802 -94 0 1 350 194 013
(Figures in USD 1 000) 31.12.2022 31.12.2021
Other interest-bearing debt (long-term)
0 180 514
Other interest-bearing debt (long-term)
0 180 514
Maturity of long-term and short-term interest-bearing debt 31.12.2022 31.12.2021
Maturity 0-1 year (classified as short-term debt) 152 13 500
Maturity 2-4 years 0 180 514
Maturity 5 years and after
0 0
Total long-term and short-term interest-bearing debt
152 194 013
Hunter Group ASA - 2022
36
Notes to the consolidated financial statements 2022
Note 12 - Other current liabilities
Note 13 - Financial instruments risk management objectives and policies
HUNT has been subject to market risks (foreign currency exchange risk and interest rate risk), credit risk and
liquidity risk.
The Group’s management oversees the management of these risks and assures that HUNT’s financial risk-taking
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Group’s policies. It is the Group’s policy that no trading in derivatives for
speculative purposes shall be undertaken. The Board of Directors reviews and agrees on policies for managing each
of these risks, which are summarized below.
Foreign currency risk
The Group’s cash reserves of USD 136.9 million are deposited in the Norwegian bank DNB. Following a decision in
2022 to pay out all excess cash as dividend in NOK in early 2023, 81.6 % of cash reserves of USD 136.9 were placed in
NOK and subject to foreign currency risk from year-end and until payment of dividend. A 10 per cent change in the
NOK/USD currency rate would result in an agio effect in the profit before tax of +/- USD 11.2 million. 29 December
2022 the Company entered a FX contract for USD 10 million at cross rate 9.89 with maturity on 3 January 2023. The
main transactions for the Group has been in USD. As commercial operations are in a large scale, a foreign currency
exchange risk policy has been introduced.
Interest rate risk
The Group’s financial income and financial costs in the statement of profit or loss are influenced by changes in
interest rates as the interest with DNB is on a floating basis. The Group had USD 8.4 million in interest expense in
2021 and USD 4.4 million in 2022. No interest-bearing debt exist as of 31 December 2022.
Credit risk
HUNT only trades with recognized, creditworthy third parties. It is the Group’s policy that all customers that wish
to trade on credit terms are subject to credit verification procedures. All cash in the Group is deposited in the
Norwegian bank DNB. Credit risk is managed through a framework that sets out policies and procedures covering the
measurement and management of credit risk.
Liquidity risk
HUNT monitors its liquidity on a regular basis and produces rolling liquidity forecasts on a monthly basis in order to
identify liquidity requirements in future periods. The target for HUNT’s management of liquidity risk is to minimum
maintain a liquidity corresponding to its net liquidity requirements for 12 months. In January 2023 it was decided to
distribute the major part of the Group’s cash position to its share holders.
The management will continue to focus on efficient operations, good planning and close monitoring of the liquidity
situation and maintaining a clear business development strategy. The Company expects to retain approximately NOK
40 million in net liquidity, which will sufficiently cover project development costs, salaries, office lease, listing
fees, legal fees and accounting/audit fees for approximately 3.5 years from the date of this report.
Climate risk
The Group assesses where climate risks could have a significant impact. These risks in relation to climate-related
matters has been included as key assumptions where they materially could have impacted the measure of
recoverable amount. As the business has been discontinued at the end of 2022, there are no risk related to stranded
assets. How the company affects the climate and how the climate affects the company will be a part of the
decision-making basis when new business opportunities are assessed.
(Figures in USD 1 000)
Other current liabilities 31.12.2022 31.12.2021
Unpaid vacation pay 60 74
Other accrued costs 463 248
Interest payable
0 748
Total other current liabilities
523 1 070
Hunter Group ASA - 2022
37
Notes to the consolidated financial statements 2022
Note 13 - Financial instruments risk management objectives and policies cont.
The table below shows a maturity analysis for HUNT’s total short-term liabilities:
Please see note 10 for the maturity analysis for long-term liabilities.
Capital management
HUNT’s main objective for the management of its capital structure is to maximize value creation for shareholders,
while at the same time maintaining a sound financial position and a good credit rating.
HUNT manages its capital structure and makes adjustments to it in light of changes in economic conditions.
(Figures in USD 1 000) 31.12.2022 31.12.2021
Long-term debt financial institutions 0 180 514
Short-term debt financial institutions 152 13 500
Trade and other payables 638 1 333
Bank deposits -136 866 -29 639
Net debt (asset)
-136 076 165 708
Equity
138 438 176 521
Total capital
Capital and net debt
2 362 342 229
Gearing ratio
-5760,2 % 48,4 %
Equity ratio
99,4 % 47,5 %
(Figures in USD 1 000) within within within
31.12.2022 3 months 3-9 months 9-12 months
Accounts payable 71 0 0
Public duties payables 44 0 0
Current portion of interest-bearing debt 18 35 18
Other short-term liabilities 393 129 0
within within within
31.12.2021 3 months 3-9 months 9-12 months
Accounts payable 195 0 0
Public duties payables 68 0 0
Current portion of interest-bearing debt 3 375 6 750 3 375
Other short-term liabilities
892 178 0
Hunter Group ASA - 2022
38
Notes to the consolidated financial statements 2022
Note 13 - Financial instruments risk management objectives and policies cont.
Set out below is a comparison by category of carrying amounts and fair values of all of the Company’s financial
instruments:
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
• Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2: Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3: Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
The Group does not use hedge accounting.
The Group has used the services of the law firm Ro Sommernes DA for legal advice in 2022 and 2021. Ro Sommernes
DA has invoiced the Company USD 20 thousand in 2022 and USD 14 in 2021. The Company’s chairman Henrik
Christensen is a partner in Ro Sommernes DA.
The Group renewed its renting of office space from Dronningen Eiendom AS in October 2021. The renewed rental
agreement is for 36 months. One of the Company’s shareholder is also a shareholder of Dronningen Eiendom AS.
In April 2021 Hunter Group entered into a sale & leaseback agreement for a handysize dry cargo vessel, which was
sold to Apollo Asset Ltd. shortly thereafter with a gain of USD 0.1 million. Furthermore, Hunter Group has served as
a manager for several other similar agreements where Apollo pays NOK 1,500 per hour and a fee of USD 5 thousand
per transaction. Apollo Asset Ltd. Is 100% owned by Mr. Arne Fredly, board member and largest shareholder of
Hunter Group ASA.
Note 14 - Transactions with related parties
The following table provides the total amount of transactions that have been entered into with related parties
controlled by members of executive management of HUNT for the relevant financial year. The purchases from
related parties are made at terms equivalent to those that prevail in arm's length transactions.
Fair value
(Figures in USD 1 000) measurement Carrying Fair Carrying Fair
Financial assets
hierarchy amount value amount value
Cash and cash equivalents Level 1 136 866 136 866 29 639 29 639
Trade receivables Level 3 2 160 2 160 5 513 5 513
Other short-term receivables Level 3 55 55 3 878 3 878
Carrying Fair Carrying Fair
Financial liabilities
amount value amount value
Other interest-bearing debt (long-term) Level 3 0 0 180 514 180 514
Current interest-bearing loans and borrowings Level 3 152 152 13 500 13 500
Trade payables Level 3 71 71 195 195
31.12.2021
31.12.2022
31.12.2022
31.12.2021
Transcations with related parties (figures in USD 1 000)
2022 2021
Purchased services
94 76
Hunter Group ASA - 2022
39
Notes to the consolidated financial statements 2022
Note 15 – Revenue from contracts with customers (discontinued operations)
Pool revenues are day rates received from the pool Tankers International, and is considered earned per day. Time
charter revenue is recognized straight-line over the lease term. The service component of time charter revenue, is
recognized per day as the service is performed.
Please see note 6 for contract assets as per 31.12.2022 and 31.12.2021.
Note 16 – Specification of Vessel operating expenses and Other operating expenses (discontinued
operations)
Vessel operating expenses primarily consists of crewing related costs, in addition to insurance costs and various
spare parts, and were discontinued at the end of 2022.
Other operating expenses
(Figures in USD 1 000)
Year 2022 2021
Type of goods or services
Pool revenues 6 899 7 438
Time charter revenues 11 482 29 722
Total revenues 18 381 37 160
(Figures in USD 1 000) 2022 2021
Payroll expenses 977 1 151
IT and office-related expenses 99 75
Audit, audit-related services and accounting fees 253 301
Various legal fees 244 182
Insurance, car, travel, tonnage tax and other expenses 420 105
Total operating expenses 1 993 1 815
Hunter Group ASA - 2022
40
Notes to the consolidated financial statements 2022
Note 17 - Finance income and finance expenses
This section provides additional information about individual line items of finance income and finance expense in
the statement of profit or loss by type.
Interest income on cash & cash equivalents consist of earned interest on the Group's cash & cash equivalents
placements.
Note 18 - Income tax
Finance income (Figures in USD 1 000) 2022 2021
Interest income related to cash, cash equivalents & other financial investments 1 614 4
Other financial income 2 911 105
Currency gain 0 0
Total finance income 4 525 108
Finance expenses (Figures in USD 1 000) 2022 2021
Interest expense related to debt to financial institutions 4 386 8 430
Other financial expences 1 125 34
Currency losses 7 121 1 039
Total finance expenses 12 633 9 503
Total finance income (loss) -8 108 -9 394
Income tax expense (Figures in USD 1 000) 2022 2021
Payable tax 0 0
Changes in utilized tax asset 0 0
Total tax expense 0 0
Calculation of basis for tax (Figures in USD 1 000) 2022 2021
Earnings before tax 47 376 3 776
Permanent differences 0 -93
Dividend received -2 911 0
Currency adjustments due to NOK as tax basis -6 384 -10 341
Adjustment related to shipping tax rules -45 416 6 830
Changes in temporary differences -2 0
Use of tax loss brought forward 7 336 -173
Total basis for tax 0 0
Summary of temporary differences: 2022 2021
Fixed assets -19 -23
Loss carried forward -30 850 -38 186
Total -30 870 -38 209
Calculated deferred tax asset (22 %) -6 791 -8 406
Hunter Group ASA - 2022
41
Notes to the consolidated financial statements 2022
Note 18 - Income tax cont.
The tax loss brought forward is related to Norway, and there exist no restrictions of the possibility to bring forward
these tax losses (no maturity date). Further reference is made to note 1.2.
Note 19 - Earnings per share (disontinued operations)
Earnings per share is calculated as net profit (loss) for the year attributable to equity holders of the Company
divided by the weighted 'average number of shares outstanding over the year.
Diluted earnings per share is calculated as net profit (loss) for the year attributable to equity holders of the
Company divided by the weighted average number of share outstanding over the year plus the weighted average
number of dilutive potential shares. 2 050 000 options were awarded in 2022 and 2 000 000 were awarded in 2021.
Statement of financial position
Deferred tax asset (Figures in USD 1 000)
2022 2021
Loss carried forward -6 787 -8 401
Fixed assets -4 -5
Total deferred tax asset -6 791 -8 406
Not recognized deferred tax asset 6 791 8 406
Total deferred tax asset recognised in the statement of financial position 0 0
Loss carried forward as of 31 December 2022 2021
Unlimited carrying forward -30 850 -38 186
Effective tax rate 2022 2021
Profit / (loss) before tax 47 376 3 776
22% tax of earnings before tax 10 423 831
Permanent differences and other -641 -21
Currency effect due to NOK as tax basis -1 404 -2 275
Adjustment related to shipping tax rules -9 991 1 503
Changes in deferred tax asset not recognised in the statement of financial position and other 1 615 -38
Calculated tax cost 0 0
Effective tax rate 0 % 0 %
(Amounts and shares in 1 000) 2022 2021
Net profit (loss) 47 376 3 776
Weighted average number of outstanding ordinary shares during the year 575 362 575 362
Treasury shares (held by the issuing entity itself) -8 213 -11 208
Effect of dilution - warrents 0 560
Effect of dilution - share options 0 5
Weighted average outstanding diluted shares 567 149 564 719
Earnings (loss) per share 2022 2021
Earnings per share discontinued operations 0,08 0,01
Earnings per share diluted discontinued operations 0,08 0,01
Earnings per share continuing operations 0,00 0,00
Earnings per share diluted continuing operations 0,00 0,00
Hunter Group ASA - 2022
42
Notes to the consolidated financial statements 2022
Pension scheme
The Company has a defined contribution pension scheme that complies with the Norwegian occupational pension
legislation (called “OTP”). The pension contributions range from 4 % 0 - 7.1 G to 7 % 7.1 -12 G of the employee’s
salary - maximized to a percentage of 12 G (NOK 1,337,724). The National Insurance scheme basic amount for 2022
is NOK 111,477. The retirement age for all employees, including the management, is 67 years.
The Group is obliged to have an occupational pension scheme pursuant to the Act on Occupational Pensions. The
Group's pension plans meet the requirements of this Act.
Note 20 - Payroll and related expenses
Remuneration to management (amounts in USD)
The total remuneration for the members of the management was USD 467 thousand in 2022, compared to USD 590
thousand in 2021.
Executive management of HUNT consists of CEO and CFO. Payments to other employees relates to the VLCC
operations.
Payroll and related expenses (figures in USD 1 000) 2022 2021
Salaries and vacation pay 647 683
Social security tax 103 107
Pension expense (“OTP”) 43 33
Employee share option program expense (incl. national insurance contributions) 148 285
Remuneration to the Board of Directors and the Nomination Committee 31 38
Other benefits 6 5
Total payroll an related expenses 977 1 151
2022 2021
Average work years 3 3
2022 2021
Contributions expensed during the year 43 33
Total remuneration to management during the year ended 31 December is as follows:
2022 2021
Other Other
Salary remuneration Pension cost Salary remuneration Pension cost
Erik Frydendal, (CEO) 194 769 79 460 9 321 209 528 166 311 10 952
Lars M. Brynildsrud (CFO)* 141 277 35 328 7 146 135 405 61 011 7 050
Hunter Group ASA - 2022
43
Notes to the consolidated financial statements 2022
Note 20 - Payroll and related expenses cont.
Shares and options held directly or indirectly by the management group as of 31 December 2021 are as follows:
See the section “Remuneration policy for members of executive management” for further information.
Remuneration to the Board of Directors and the Nomination Committee
The allocation of remuneration to the members of the Board and Nomination Committee is paid as follows in 2022
and 2021:
Employee share option program
The number of employees share options and average exercise prices for HUNT and development during the year:
In addition, it was granted 500 000 share options to Sujoy K. Seal and 50 000 share option to Parthesh Gaikwad in
2022. Sujoy K. Seal then holds 2 000 000 share options and Parthesh Gaikwad holds 50 000 share options as per 31
December 2022.
Number of Exercise price
shares % shares Options (USD)
Lars M . Brynildsrud, CFO 15 400 0,00 % 1 750 000 0,29
Erik Frydendal, CEO 1 650 000 0,29 % 4 000 000 0,29
Total 1 665 400 0 5 750 000 -
Changes in share options held by the management group are as follows:
Options Options for- Options as of
Options of 1 granted in feited in the 31 December
January 2022 the period period 2022
Lars M . Brynildsrud, CFO 1 250 000 500 000 0 1 750 000
Erik Frydendal, CEO 3 000 000 1 000 000 0 4 000 000
Total 4 250 000 1 500 000 0 5 750 000
(amounts in USD) 2022 2021
Kristin Hellebust - Board member from April 2018 12 946 14 525
Henrik A. Christensen - Chairman of the Board from April 2018 19 419 21 788
Total remuneration 32 365 36 313
Weighted Weighted
Share average Share average
Summary of oustanding options: options exercise price options
exercise price
Balance at 1 january 5 750 000 - 3 750 000 -
Granted during the year 2 050 000 0,29 2 000 000 0,35
Cancelled during the year 0 - 0 -
Forfeited during the year 0 - 0 -
Balance at 31 December 7 800 000 - 5 750 000 -
Vested options 0 - 0 -
Weighted Average Fair Value of options granted during the period 7 800 000 - 5 750 000 -
2022
2021
Fair value of the options granted was measured using the Black-Scholes model. Measurement inputs included share
price on measurement date, exercise price of the instrument, expected volatility, weighted average expected life
of the instruments, expected dividends, and the risk-free interest rate.
Mr. Frydendal was through his controlled company Sagittarius Capital Ltd, granted 1,000,000 LTI Options, with a
strike price per share equal to the closing price on 28 March 2019 (NOK 3.23). They have a 12 month vesting period
on terms set out in the Company's LTI rules, as adopted by the Company’s annual general meeting (AGM) as per 25
April 2019, with effect from the commencement date of employment. The expiration date is 25 April 2024, with
volatility in the calculation of approximately 45 %.
Furthermore, Mr. Frydendal was through his controlled company Sagittarius Capital Ltd, granted 1,000,000 LTI
Options, with a strike price per share equal to the closing price on 30 April 2020 (NOK 3.95). They have a 12 month
vesting period on terms set out in the Company's LTI rules, as adopted by the Company’s annual general meeting
(AGM) as per on 30 April 2020, with effect from 30 April 2020. The expiration date is 30 April 2026, with volatility in
the calculation of approximately 44 %.
12 May 2021 Mr. Frydendal was through his controlled company Sagittarius Capital Ltd, granted additional 1,000,000
LTI Options, with a strike price per share of NOK 3.00. They had a 12 month vesting period on terms set out in the
Company's LTI rules. The expiration date is 12 May 2026, with volatility in the calculation of approximately 51 %.
Furthermore, 24 March 2022 Mr. Frydendal was through his controlled company Sagittarius Capital Ltd, granted
additional 1,000,000 LTI Options, with a strike price per share of NOK 2.80. They had a 12 month vesting period on
terms set out in the Company's LTI rules. The expiration date is 24 March 2027, with volatility in the calculation of
approximately 44 %.
Mr. Brynildsrud was granted 500,000 LTI Options, with a strike price per share equal to the subscription price in the
Private Placement completed on 23 May 2019, i.e. NOK 3.65 per share, and with a 12 month vesting period on terms
set out in the Company's LTI rules, as adopted by the Company's AGM as per 25. April 2019, with effect from the
commencement date of employment. The expiration date is 12 August 2024, with volatility in the calculation of
approximately 42 %.
Furthermore, Mr. Brynildsrud was granted 250,000 LTI Options, with a strike price per share equal to the closing
price on 30 April 2020 (NOK 3.95), and with a 12 month vesting period on terms set out in the Company's LTI rules,
as adopted by the Company's AGM as per 30 April 2020, with effect from 30 April 2020. The expiration date is 30
April 2026, with volatility in the calculation of approximately 44 %.
12 May 2021 Mr. Brynildsrud was granted 500,000 LTI Options, with a strike price per share of NOK 3.00, and with a
12 month vesting period on terms set out in the Company's LTI rules. The expiration date is 12 May 2026, with
volatility in the calculation of approximately 51 %.
Furthermore, 24 March 2022 Mr. Brynildsrud was granted additional 500,000 LTI Options, with a strike price per
share of NOK 2.80. They had a 12 month vesting period on terms set out in the Company's LTI rules. The expiration
date is 24 March 2027, with volatility in the calculation of approximately 44 %.
As a consequence of the repayment of capital and dividend distributions, the strike price for the options has been
reduced by such amount of dividends declared by the Company on a per share basis since the date of grant, but the
Strike Price has not been reduced to an amount lower than the par value of the Share. The weighted average strike
price for options outstanding as per 31 December 2022 is reduced to the par value of the Share of NOK 0.002 per
option. If and when the options are exercised, each option holder will be compensated through cash dividends for
the portion of the strike price that are below par value of the share. As of December 31, 2022, the option holders
are entitled to a cash compensation equivalent to the difference between the adjusted strike price of NOK 0.002
per option and NOK -1.33 as a consequence of the repayment of capital and dividends declared and distributed by
the Company since the date of grant.
Implemented remuneration policy for members of executive management for 2022:
The fixed salary for each member of the management shall be competitive and based on the individual’s
experience, responsibilities as well as the results achieved during the previous year. Salaries as well as other
benefits shall be reviewed annually and adjusted as appropriate.
Hunter Group ASA - 2022
44
Notes to the consolidated financial statements 2022
Note 20 - Payroll and related expenses cont.
Hunter Group ASA - 2022
45
Notes to the consolidated financial statements 2022
Note 20 - Payroll and related expenses cont.
In addition to their base salary, the Company’s management may be granted additional remuneration in the form of
a bonus. The assessment criteria of such bonus will be based on both the Company’s performance and the
individual’s performance. The targets to be reached by the CEO are to be determined by the Company’s Board of
Directors. The CEO will set relevant targets for the other members of the management, based on principles defined
by HUNT’s Board of Directors. No provision for bonus has been recognized for 2022 or 2021.
The Company’s management will receive payment in kind such as cell phone expenses and payment of IT and
telecommunication expenses.
The CEO and CFO have a 6-month notice period with salaries, where they retain options then granted.
Remuneration policy for members of executive management - Guidelines for 2023:
The main principle of the Company’s remuneration policy for HUNT’s management is to offer competitive terms in
an overall perspective taking into account salary, payments in kind, bonuses, pension plans and other benefits, to
retain key staff.
In addition to their base salary, the Company’s management may be granted additional remuneration in the form of
a bonus. The assessment criteria of such bonus will be based on both the Company’s performance and the
individual’s performance. The targets to be reached by the CEO are to be determined by the Company’s Board of
Directors. The CEO will set relevant targets for the other members of the management, based on principles defined
by HUNT’s Board of Directors.
The Company’s management will receive payment in kind such as cell phone expenses and payment of IT and
telecommunication expenses.
Auditor's fee
The following table shows remuneration related to professional services rendered by the Company’s principal
auditor, Ernst & Young AS, for fiscal year 2022 and 2021. The amounts shown are exclusive of value added tax.
Note 21 - Share capital and shareholder information
Share capital as of 31 December 2022 was USD 82.6 million, being 575,362,013 ordinary shares at a nominal value of
USD 0.0002 each (NOK 0.002). All shares carry equal voting rights.
(Amounts in USD 1 000) 2022 2021
Audit fee 131 105
Assurance services 0 0
Other assistance 0 0
Total 131 105
Number of ordinary shares 2022 2021
Ordinary shares issued at 1 January 575 362 013 575 362 013
Treasury shares (held by the issuing entity itself) -8 212 826 -11 208 404
Ordinary shares at 31 December 567 149 187 564 153 609
Hunter Group ASA - 2022
46
Notes to the consolidated financial statements 2022
Note 21 - Share capital and shareholder information cont.
The 20 largest shareholders held 60.7 % of the outstanding shares. As at 31 December 2022, the 20 largest
shareholders were as follows:
The following members of the Board of Directors and member of executive management held shares as of 31
December 2022:
Shareholders Number of shares % shares
1 Apollo Asset Limited 191 500 000 33,3 %
2 Sundt AS 45 810 829 8,0 %
3 Songa Capital AS 35 941 632 6,2 %
4 Swap Invest AS 15 613 718 2,7 %
5 Nordnet Livsforsikring AS 8 969 430 1,6 %
6 Dnb Luxembourg S.A. 8 590 223 1,5 %
7 Hunter Group ASA 8 212 826 1,4 %
8 The Bank Of New York M ellon SA/NV 5 718 748 1,0 %
9 Surfside Holding AS 5 545 381 1,0 %
10 Injektor AS 5 000 000 0,9 %
11
Argentum Fondsinvesteringer AS
4 920 697 0,9 %
12 Citibank, N.A. 4 838 543 0,8 %
13 Feen Marine AS 4 811 700 0,8 %
14 Cmdc AS 4 714 555 0,8 %
15 Stavanger Forvaltning AS 4 300 000 0,7 %
16 Laro Storsand AS 4 000 000 0,7 %
17 Barn - Nett AS 4 000 000 0,7 %
18 Interactive Brokers Llc 3 788 473 0,7 %
19 Cam AS 3 500 000 0,6 %
20 TFR Invest AS 3 500 000 0,6 %
Total shares for top 20 shareholders 373 276 755 64,88 %
Total shares for other shareholders 202 085 258 35,12 %
Total shares 575 362 013 100,0 %
2022 2021
August AS (Henrik Christensen - Chairman) 750 000 750 000
Apollo Asset Ltd (Arne Fredly - Board member) 191 500 000 168 500 000
Lars Brynildsrud (CFO) 15 400 15 400
Sagittarius Capital Ltd (Erik Frydendal - CEO) 1 650 000 1 650 000
Ordinary shares
193 915 400 170 915 400
% of total shares
33,7 % 29,7 %
Hunter Group ASA - 2022
47
Notes to the consolidated financial statements 2022
Note 22 - Events after the reporting date
Extraordinary General Meeting held on 19 January 2023. All resolutions were passed, including two dividend
distributions of a combined NOK 2.31 per share. NOK 0.51 per share paid as reduction of the Company’s share
premium, and NOK 1.80 paid as an extraordinary dividend. The former divided will be paid to shareholders as of 24
January 2023, while the latter dividend was paid to shareholders as of 27 January 2023. In total this amounts to USD
132.4 million for the outstanding shares.
The board of directors of the Company proposed an additional extraordinary dividend of NOK 0.04 per share, which
will be decided by an extraordinary general meeting to be held on 16 February 2023, totaling USD 2.3 million for the
outstanding shares.
On February 14, 2023, leading employees of the Company exercised all of their options for 7,850,000 shares in the
Company. Reference is made to Note 20 of the Consolidated Financial Statements for further information of the LTI
Options held by leading employees.
Hunter Group ASA - 2022
48
Statement of profit and loss – Hunter Group ASA
(Figures in USD 1 000) Note 2022 2021
Revenues
Revenues 10 590 945
Total Revenues 590 945
Operating expenses
Depreciation and amortisation expense 2, 3 80 63
General and administrative expenses 11, 14 1 361 1 674
Total operating expenses 1 440 1 737
Operating profit (loss) -850 -792
Net financial income (loss) 12 124 164 25
Profit (loss) before taxes 123 314 -767
Tax on ordinary result 13 0 0
Net profit (loss) 123 314 -767
(Figures in USD 1 000) 2022 2021
Total comprehensive income
Profit (loss) for the period 123 314 -767
Comprehensive income for the period 123 314 -767
Total comprehensive income attributable to:
Equity holders of the parent 123 314 -767
Total comprehensive income 123 314 -767
Hunter Group ASA - 2022
49
Statement of financial positions – Hunter Group ASA
Oslo, 27 February 2023
Henrik A. Christensen
Chairman of the board
(Figures in USD 1 000) Note 31.12.2022 31.12.2021
NON-CURRENT ASSETS
Property, plant & equipment 2, 3 144 224
Total tangible assets 144 224
Investment in subsidiaries 2, 17 200 38 869
Long-term receivable subsidiaries 18 4 104 53 917
Total finacial long-term assets 4 304 92 785
TOTAL NON-CURRENT ASSETS 4 448 93 009
CURRENT ASSETS
Other short-term receivables 4 28 29
Total current receivables 28 29
Cash and cash equivalents 5 134 299 6 934
TOTAL CURRENT ASSETS 134 327 6 963
TOTAL ASSETS 138 776 99 972
(Figures in USD 1 000) Note 31.12.2022 31.12.2021
EQUITY
Share capital 15 126 82 625
Own shares -2 -1 660
Share premium 0 18 569
Other equity 5 022 0
TOTAL EQUITY 5 147 99 534
LIABILITIES
Long-term liabilities (IFRS 16) 3 0 150
Total non-current liabilities 0 150
Trade creditors 102 59
Accrued public charges and indirect taxes 55 68
Short-term liabilities (IFRS 16) 3, 6 144 69
Other current liabilities 7, 19 133 327 93
Total current liabilities 133 629 288
TOTAL LIABILITIES 133 629 439
TOTAL EQUITY AND LIABILITIES 138 776 99 972
Hunter Group ASA - 2022
50
Statement of cash flows – Hunter Group ASA
(Figures in USD 1 000) Note 2022 2021
Profit (loss) attributable to equity holders
of the parent 123 314 -767
Depreciation 80 63
Financial income -1 334 -1 061
Financial expenses 1 051 109
Change in accounts receivables and accounts payables 43 25
Change in other receivables and payables and other 1 121 345
Net cash flow from operating activities 124 275 -1 287
Increase in long-term interest bearing receivable subsidiaries -117 527 0
Repayment of long-term interest bearing receivable subsidiaries 206 008 100 816
Net cash flow from investment activities 88 481 100 816
Interest received 12 1 334 1 061
Interest paid 12 -1 051 -109
Installment leasing-debt (IFRS 16) 3 -67 -57
Purchase of own shares Equity -4 311 -1 267
Dividend paid Equity -81 296 -97 888
Net cash flow from financing activities -85 391 -98 259
Total net changes in cash flow 127 365 1 270
Currency effect on cash 0 0
Cash and cash equivalents beginning of period 6 933 5 663
Cash and cash equivalents end of period 5 134 299 6 933
Hunter Group ASA - 2022
51
Statement of changes in equity – Hunter Group ASA
Share Own Share Currency Retained Total
(Figures in USD 1 000) Note Capital shares premium transl. adj. earnings equity
Equity as of 01.01.2021 82 625 -1 121 50 100 -2 289 3 328 132 644
Net profit (loss) 0 0 -767 -767
Total comprehensive income 2021 0 0 -767 -767
Repayment of capital 19 -28 513 0 -2 845 -31 358
Purchase of own shares -539 -728 0 0 -1 267
Option plan payment 0 0 285 285
Equity as of 31.12.2021 82 625 -1 660 20 859 -2 289 0 99 536
Net profit (loss) 0 0 123 314 123 314
Total comprehensive income 2022 0 0 123 314 123 314
Repayment of capital * 19 -82 499 1 319 -12 794 0 12 678 -81 296
Purchase of own shares -2 071 -2 240 0 0 -4 311
Awarded of own shares 2 411 0 0 -2 411 0
Option plan payment 0 0 148 148
Dividend payable * -5 824 -126 417 -132 241
Equity as of 31.12.2022 126 -2 0 -2 289 7 311 5 146
* As of 29 December 2022 the Board of Directors proposed two dividends totaling NOK 1,310 million as a
combination of repayment of capital and extraordinary dividend.
Hunter Group ASA - 2022
52
Note 1 - Accounting principles
Hunter Group ASA (HUNT) is the parent company of the Hunter Group, consisting of Hunter Group ASA and its
subsidiaries Indicator AS and Hunter Tankers AS. Hunter Group ASA's main activities are shareholding in group
companies and corporate functions.
The financial statements of Hunter Group ASA are prepared in accordance with simplified IFRS pursuant to the
Norwegian Accounting Act § 3-9 and regulations regarding simplified application of IFRS issued by the Norwegian
Ministry of Finance on 3 November 2014.
These parent company financial statements should be read in connection with the Consolidated financial statements
of Hunter Group, published together with these financial statements. With the exceptions described below, Hunter
Group ASA applies the accounting policies of the group, as described in Hunter Group’s disclosure note 2 Significant
Accounting Policies, and reference is made to the Hunter Group note for further details.
Subsidiaries
Shareholdings in subsidiaries are accounted for using the cost method. It is annually evaluated if there exist
indicators for impairment.
Dividends and group contributions
Dividends will be reflected as Dividends payable within current liabilities. Group contributions to other entities
within Hunter Group are reflected in the balance sheet as current liabilities within Liabilities to group companies.
Under simplified IFRS the presentation of dividends payable and payable group contributions would differ from the
presentation under full IFRS, as it would also include dividend and group contributions payable which at the date of
the balance sheet would be subject to a future general assembly approval before distribution.
Notes to the financial statements 2022 - Hunter Group ASA
Note 2 - Property, plant and equipment
The Company has recognized the following assets in the statement of financial position (including internal built-up
assets such as development costs).
Property, Property,
plant & equip. plant & equip.
(Figures in USD 1 000)
2022 2021
Cost price at 1 January
21 10
Additions
0 10
Cost price at 31 December
21 21
Accumulated depreciations at 31 December
-21 -14
Booked value at 31 December
0 5
Depreciation
6 8
Impairment charges
0 0
Estimated useful life
3-5 years 3-5 years
Depreciation method
straight-line straight-line
Hunter Group ASA - 2022
53
Notes to the financial statements 2022 - Hunter Group ASA
Note 3 - IFRS 16
IFRS 16 requires that all leases, except for short-term and low-value leases are reflected in the balance sheet as a
lease liability and a Right of Use (RoU) asset. The weighted average discount rate used to calculate the IFRS 16
opening balance lease liability was 5 %.
Note 4 - Other receivables
Note 5 - Cash and cash equivalents
(Figures in USD 1 000) 2022 2021
Right of use assets 01.01 219 51
Additions 0 223
Depreciation -74 -55
Right of use assets 31.12 144 219
Other interest-bearing debt 01.01 218 50
Additions 0 223
Installments -67 -55
Foreign currency adjustment -7 0
Other interest-bearing debt 31.12 144 218
Interest expense 11 4
Operating leasing costs (figures in USD 1000)
2022 2021
Operational leasing costs
2 2
Total operating leasing costs
2 2
(Figures in USD 1 000)
2022 2021
Earned, not yet invoiced income
0 0
Prepaid expenses
28 29
Total other receivables 28 29
(Figures in USD 1 000)
2022 2021
Cash at bank
134 299 6 934
Total cash at bank
134 299 6 934
Restricted bank deposits for employee withholding taxes
50 39
Hunter Group ASA - 2022
54
Notes to the financial statements 2022 - Hunter Group ASA
Note 7 - Other current liabilities
Note 8 - Financial instruments risk management objectives and policies
HUNT has been subject to market risks (foreign currency exchange risk and interest rate risk), credit risk and
liquidity risk.
The Company’s management oversees the management of these risks and assures that HUNT’s financial risk-taking
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company’s policies. It is the Company’s policy that no trading in derivatives for
speculative purposes shall be undertaken. The Board of Directors reviews and agrees on policies for managing each
of these risks, which are summarized below.
Foreign currency risk
The Company’s cash reserves of USD 134,299 thousand are deposited in the Norwegian bank DNB. Following a
decision in 2022 to pay out all excess cash as dividend in NOK in early 2023, 81.9 % of cash reserves of USD 134.3
were placed in NOK and subject to foreign currency risk from year-end and until payment of dividend. A 10 per cent
change in the NOK/USD currency rate would result in an agio effect in the profit before tax of +/- USD 11.0 million.
The main transactions for the Company has been in USD. As commercial operations were in a large scale, a foreign
currency exchange risk policy has been introduced.
Interest rate risk
The Company’s financial income and financial costs in the statement of profit or loss are influenced by changes in
interest rates as the interest on debit facility with DNB is on a floating basis. The Company had USD -1,051 thousand
in interest expense related to net intercompany payable, and USD 1,334 thousand in interest income in 2022 related
to cash and cash equivalents.
Credit risk
HUNT only trades with recognized, creditworthy third parties. It is the Company’s policy that all customers that
wish to trade on credit terms are subject to credit verification procedures. All cash in the Company is deposited in
the Norwegian bank DNB. Credit risk is managed through a framework that sets out policies and procedures covering
the measurement and management of credit risk.
Liquidity risk
HUNT monitors its liquidity on a regular basis and produces rolling liquidity forecasts on a monthly basis in order to
identify liquidity requirements in future periods. The target for HUNT’s management of liquidity risk is to maintain
a liquidity corresponding to its net liquidity requirements for 12 months. The cash position of HUNT at year end
2022 was USD 134,299 thousand, compared to USD 6,934 thousand in 2021.
Note 6 - Short-term liabilities
(Figures in USD 1 000)
2022 2021
Short-term liabilities (IFRS 16)
71 69
Short-term liabilities (IFRS 16)
71 69
(Figures in USD 1 000)
2022 2021
Unpaid vacation pay 60 74
Dividend payable 132 241 0
Other accrued costs 1 026 19
Total other short-term liabilities
133 327 93
Hunter Group ASA - 2022
55
Notes to the financial statements 2022 - Hunter Group ASA
Capital management
HUNT’s main objective for the management of its capital structure is to maximize value creation for shareholders,
while at the same time maintaining a sound financial position and a good credit rating. The reduction in equity as of
31 December 2022 is in all material aspects due to the proposed dividend of USD 132.2 million.
HUNT manages its capital structure and makes adjustments to it in light of changes in economic conditions. To
maintain or adjust the capital structure, the Company may issue new shares. No changes were made in the
objectives policies or processes during the financial year.
Furthermore, Hunter Group ASA has guaranteed for the continued operation of the wholly-owned subsidiary
Indicator AS, which is an empty company with negligible debt to Hunter Group ASA. There is no external debt in
Indicator AS as of 31 December 2022.
Note 8 - Financial instruments risk management objectives and policies cont.
The management has focused on efficient operations, good planning and close monitoring of the liquidity situation
and maintaining a clear business development strategy.
The table below shows a maturity analysis for HUNT’s total short-term liabilities:
within within within
2022 (figures in USD 1 000) 3 months 3-9 months 9-12 months
Accounts payable 102 0 0
Public duties payables 55 0 0
Other short-term liabilities (including dividend payable) 133 327 0 0
within within within
2021 (figures in USD 1 000) 3 months 3-9 months 9-12 months
Accounts payable 59 0 0
Public duties payables 68 0 0
Other short-term liabilities (including dividend payable) 93 0 0
(Figures in USD 1 000)
2022 2021
Trade and other payables 1 243 220
Dividend payable 132 241 0
Bank deposits -134 299 -6 934
Net debt
-815 -6 714
Equity
5 147 99 534
Capital and net debt
4 332 92 820
Gearing ratio
-18,8 % -7,2 %
Equity ratio
3,7 % 99,6 %
Hunter Group ASA - 2022
56
Notes to the financial statements 2022 - Hunter Group ASA
Note 9 - Transactions with related parties
Please see note 18 below and note 14 in the consolidated financial statements for further information. Interest
expense related to the net interest-bearing payable to the subsidiary Hunter Tankers AS was an expense of USD -
1,040 thousand in 2022 and an income of USD 1,058 thousand in 2020. Furthermore, Hunter Group ASA invoiced
Hunter Tankers USD 590 thousand in 2022 and USD 665 thousand for management services in 2021.
Note 10 - Revenue
Note 8 - Financial instruments risk management objectives and policies cont.
Carrying Fair Carrying Fair
Financial assets (figures in USD 1 000)
amount value amount value
Cash and cash equivalents 134 299 134 299 6 934 6 934
Current receivables 28 28 29 29
Carrying Fair Carrying Fair
Financial liabilities (figures in USD 1 000)
amount value amount value
Long-term debt financial institutions 0 0 0 0
Short-term debt financial institutions 71 71 69 69
Trade and other payables 133 484 133 484 220 220
2021
2022
2022
2021
Type of goods or service (figures in USD 1 000) 2022 2021
Follow-up VLCC contracts 0 0
Other income 590 945
Total revenues 590 945
Geographical market (figures in USD 1 000) 2022 2021
Sales in Norway 590 945
Sales abroad 0 0
Total revenues 590 945
Timing of revenue recognition 2022 2021
Goods transferred at a point in time 0 0
Services transferred over time 590 945
Total revenues 590 945
Hunter Group ASA - 2022
57
Notes to the financial statements 2022 - Hunter Group ASA
Note 11 – Other operating expenses
Note 12 - Finance income and finance expenses
This section provides additional information about individual line items of finance income and finance expense in
the statement of profit and loss by type.
TUSD 1,057 of interest income in 2021 and TUSD -1,040 of interest expense in 2022 relates to an internal balance
from/to Hunter Tankers AS.
Note 13 - Income tax
(Figures in USD 1 000)
2022 2021
Payroll expenses 977 1 151
IT and office-related expenses 103 75
Audit, audit-related services and accounting fees 165 158
Various legal fees 52 230
Insurance, car, travel and other expenses 63 60
Total 1 361 1 674
Income tax expense (figures in USD 1 000) 2022 2021
Payable tax 0 0
Change in utilized tax asset 0 0
Total tax expense 0 0
Finance income (figures in USD 1 000) 2022 2021
Interest income 1 334 1 061
Dividend reveived from subsidiaries 166 562 0
Repayment of capital contribution in subsidiaries -38 669 0
Other financial income 2 918 101
Currency gain 0 0
Total finance income 132 146 1 163
Finance expenses (figures in USD 1 000) 2022 2021
Interest expense -1 051 -109
Other financial expenses -1 040 -29
Currency losses -6 931 -1 001
Total finance expenses -9 022 -1 138
Total finance income (loss) 123 124 25
Hunter Group ASA - 2022
58
Notes to the financial statements 2022 - Hunter Group ASA
Note 13 - Income tax cont.
The company has not recognized a deferred tax asset in the statement of financial position for 2022 and 2021 as the
Company has limited taxable income.
Calculation of basis for tax 2022 2021
Earnings before tax 123 314 -767
Permanent differences 0 -93
Dividend received -130 805 0
Currency adjustments due to NOK as tax basis 3 042 -2 220
Changes in temporary differences -2 0
Use of tax loss brought forward 4 450 3 081
Total basis for tax 0 0
Summary of temporary differences: 2022 2021
Fixed assets -19 -23
Accruals 0 0
Loss carried forward -25 284 -33 131
Total -25 303 -33 154
Calculated deferred tax asset (22 %) -5 567 -7 294
Statement of financial position
Deferred tax asset (figures in USD 1 000) 2022 2021
Loss carried forward -5 562 -7 289
Accruals 0 0
Fixed assets -4 -5
Total deferred tax asset -5 567 -7 294
Not recognized deferred tax asset 5 567 7 294
Total deferred tax asset recognised in the statement of financial position 0 0
Loss carried forward as of 31 December 2022 2021
Unlimited carrying forward 25 284 33 131
Hunter Group ASA - 2022
59
Notes to the financial statements 2022 - Hunter Group ASA
Note 13 - Income tax cont.
Note 14 - Payroll and related expenses
Pension scheme
The Company has a defined contribution pension scheme that complies with the Norwegian occupational pension
legislation (called “OTP”). The pension contributions range from 4 % 0 - 7.1 G to 7 % 7.1 -12 G of the employee’s
salary - maximized to a percentage of 12 G (NOK 1,337,724). The National Insurance scheme basic amount for 2022
is NOK 111,477. The retirement age for all employees, including the management, is 67 years.
Please refer to note 20 in the consolidated financial statements for further information about remuneration and
option program for the management and board of directors.
Effective tax rate 2022 2021
Profit / (loss) before tax 123 314 -767
22% tax of earnings before tax 27 129 -169
Permanent differences and other -28 777 -21
Changes in deferred tax asset not recognised in the statement of financial position 979 678
Currency effect due to NOK as tax basis 669 -488
Calculated tax cost 0 0
Effective tax rate 0 % 0 %
Payroll and related expenses (figures in USD 1 000) 2022 2021
Salaries and vacation pay 646 683
Social security tax 103 107
Pension expense (“OTP”) 43 33
Employee share option program expense (incl. national insurance contributions) 148 285
Other benefits 38 43
Total payroll an related expenses 977 1 151
2022 2021
Number of employees (average work years) 3 3
(Figures in USD 1 000) 2022 2021
Contributions expensed during the year 43 33
Hunter Group ASA - 2022
60
Notes to the financial statements 2022 - Hunter Group ASA
Auditor's fee
The following table shows remuneration related to professional services rendered by the Company’s principal
auditor, EY, for fiscal year 2022 and 2021. The amounts shown are exclusive of value added tax.
Note 15 - Share capital and shareholder information
Please see note 21 in the consolidated financial statements.
Note 16 - Provisions, commitments and contingent liabilities/assets
There do not exist any material provisions or contingent liabilities/assets for Hunter Group ASA.
Note 17 - Investment in subsidiaries
Note 18 - Intercompany receivables/payables
(Figures in USD 1 000)
2022 2021
Audit fee 100 101
Assurance services 0 0
Other assistance 0 0
Total 100 101
(Figures in USD 1000) Voting Book value Equity at Net
Company Location Share rights Cost 31.12.2022 31.12.2022 income 2022
Indicator AS Stavanger 100 % 100 % 91 0 -34 -3
Hunter Tankers AS Oslo 100 % 100 % 200 200 1 245 43 918
Receivables (figures in USD 1 000) 2022 2021
Long-term receivable subsidiaries 4 104 53 917
Short-term receivable subsidiaries 0 0
Payables (figures in USD 1 000) 2022 2021
Other current liabilities subsidiaries -1 040 0
Dividend payable -132 241 0
Hunter Group ASA - 2022
61
Notes to the financial statements 2022 - Hunter Group ASA
Note 19 - Events after the reporting date
Extraordinary General Meeting held on 19 January 2023. All resolutions were passed, including two dividend
distributions of a combined NOK 2.31 per share. NOK 0.51 per share paid as reduction of the Company’s share
premium, and NOK 1.80 paid as an extraordinary dividend. The former divided will be paid to shareholders as of 24
January 2023, while the latter dividend was paid to shareholders as of 27 January 2023. In total this amounts to USD
132.4 million for the outstanding shares.
The board of directors of the Company proposed an additional extraordinary dividend of NOK 0.04 per share, which
will be decided by an extraordinary general meeting to be held on 16 February 2023, totaling USD 2.3 million for the
outstanding shares.
Hunter Group ASA
Org. no. 985 955 107
Address: Dronningen 1, 0287 OSLO
E-mail: Erik A. S. Frydendal, CEO, ef@huntergroup.no
Lars Brynildsrud, CFO, lars.brynildsrud@huntergroup.no
Statsautoriserte revisorer
Ernst & Young AS
Dronning Eufemias gate 6a, 0191 Oslo
Postboks 1156 Sentrum, 0107 Oslo
Foretaksregisteret: NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Medlemmer av Den norske Revisorforening
A member firm of Ernst & Young Global Limited
INDEPENDENT AUDITOR'S REPORT
To the Annual Shareholders' Meeting of Hunter Group ASA
Repor t on the audit of the financial statem ents
Opinion
We have audited the financial statements of Hunter Group ASA (the Company), which comprise the
financial statements of the Company and the consolidated financial statements of the Company and its
subsidiaries (the Group). The financial statements of the Company and the Group comprise the statement
of financial position as at 31 December 2022 and the income statement, statement of comprehensive
income, statement of cash flows and statement of changes in equity for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies.
In our opinion
the financial statements comply with applicable legal requirements
the financial statements give a true and fair view of the financial position of the Company as at 31
December 2022 and its financial performance and cash flows for the year then ended in
accordance with simplified application of international accounting standards according to section
3-9 of Norwegian Accounting,
the financial statements give a true and fair view of the financial position of the Group as at 31
December 2022 and its financial performance and cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the audit committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We are independent of the Company and the Group in
accordance with the requirements of the relevant laws and regulations in Norway and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 20 years from the election by the general meeting of the
shareholders on June 20, 2003 for the accounting year 2003.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements for 2022. We have determined that there are no key audit matters to
communicate in our report.
Penneo Dokumentnøkkel: LN4UP-3TA0C-Z1XKT-L7U5E-N6KS6-XJ4ZE
2
Independent auditor's report - Hunter Group ASA 2022
A member firm of Ernst & Young Global Limited
Other information
Other information consists of the information included in the annual report other than the financial
statements and our auditor’s report thereon. Management (the board of directors and the Chief Executive
Officer) is responsible for the other information. Our opinion on the financial statements does not cover
the other information, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information,
and, in doing so, consider whether the board of directors’ report, the statement on corporate governance
and the statement on corporate social responsibility contain the information required by applicable legal
requirements and whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material misstatement of this other information or
that the information required by applicable legal requirements is not included, we are required to report
that fact.
We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement
on corporate governance and the statement on corporate social responsibility are consistent with the
financial statements and contain the information required by applicable legal requirements.
Responsibilities of management for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements of the
Company in accordance with simplified application of international accounting standards according to
section 3-9 of the Norwegian Accounting and of the consolidated financial statements of the Group in
accordance with International Financial Reporting Standards as adopted by the EU, and for such internal
control as management determines is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or the Group, or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Penneo Dokumentnøkkel: LN4UP-3TA0C-Z1XKT-L7U5E-N6KS6-XJ4ZE
3
Independent auditor's report - Hunter Group ASA 2022
A member firm of Ernst & Young Global Limited
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s and the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s and the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company and the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with the board of directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on other legal and r egulatory r equir em ent
Report on compliance with regulation on European Single Electronic Format (ESEF)
Opinion
As part of our audit of the financial statements of Hunter Group ASA we have performed an assurance
engagement to obtain reasonable assurance whether the financial statements included in the annual
report, with the file name 5967007LIEEXZXHLAW34-2022-12-31-en.zip, has been prepared, in all
material respects, in compliance with the requirements of the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation given with legal
basis in Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial
statements.
In our opinion, the financial statements included in the annual report have been prepared, in all material
respects, in compliance with the ESEF Regulation.
Penneo Dokumentnøkkel: LN4UP-3TA0C-Z1XKT-L7U5E-N6KS6-XJ4ZE
4
Independent auditor's report - Hunter Group ASA 2022
A member firm of Ernst & Young Global Limited
Management’s responsibilities
Management is responsible for the preparation of an annual report and iXBRL tagging of the consolidated
financial statements that complies with the ESEF Regulation. This responsibility comprises an adequate
process and such internal control as management determines is necessary to enable the preparation of
an annual report and iXBRL tagging of the consolidated financial statements that is compliant with the
ESEF Regulation.
Auditor’s responsibilities
Our responsibility is to express an opinion on whether, in all material respects, the financial statements
included in the annual report have been prepared in accordance with the ESEF Regulation based on the
evidence we have obtained. We conducted our engagement in accordance with the International
Standard for Assurance Engagements (ISAE) 3000 – “Assurance engagements other than audits or
reviews of historical financial information”. The standard requires us to plan and perform procedures to
obtain reasonable assurance that the financial statements included in the annual report have been
prepared in accordance with the ESEF Regulation.
As part of our work, we performed procedures to obtain an understanding of the company’s processes for
preparing its annual report in XHTML format. We evaluated the completeness and accuracy of the iXBRL
tagging and assessed management’s use of judgement. Our work comprised reconciliation of the iXBRL
tagged data with the audited financial statements in human-readable format. We believe that the
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Oslo, 8 March 2023
ERNST & YOUNG AS
The auditor's report is signed electronically
Johan Lid Nordby
State Authorised Public Accountant (Norway)
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2023-03-08 17:49:58 UTC
Penneo Dokumentnøkkel: LN4UP-3TA0C-Z1XKT-L7U5E-N6KS6-XJ4ZE
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