ANNUAL REPORT 2024
Christiania Shipping A/S
Amerika Plads 38
2100 København Ø
Registration no. 40 53 35 16
The Annual General Meeting adopted the Annual Report on 24 June 2025
Chairman of the General Meeting
Name
: Anne Sofie Reimann
2
Klik e ller try k he r for at skrive t ekst.
Contents
Contents ..................................................................................................................................................... 2
Key figures ..................................................................................................................................................... 3
Board of Directors Report ................................................................................................................................. 4
Consolidated financial statements .................................................................................................................... 16
Parent company financial statements ............................................................................................................... 47
Statement by the Board of Directors and Executive Management ........................................................................ 66
Independent Auditor’s Report .......................................................................................................................... 67
Definitions and glossary ................................................................................................................................. 70
Company information ..................................................................................................................................... 71
3
Key figures
* Including reversal of previous years impairments of USD 41.2 million.
Key figures presented in the table above for the year 2020 are based on figures for the parent company Christiania
Shipping A/S.
4
Board of Directors Report
2021
2024 ended up as a satisfying year for Christiania
Shipping A/S.
The Group reported:
• EBITDA USD 30.5 million (2023: USD 42.7
million)
• Net profit USD 10.0 million (2023: USD 68.8
million)
The firm market for small chemical carriers continued
into 2024, although the average TC rates obtained for
the second half were considerably lower than the first
half of the year.
In 2024, the Group acquired one vessel and sold two
vessels.
Furthermore, the 100% owner of Christiania Shipping
A/S, Christiania Holding A/S, acquired 100% of the
shares in Navquim Holding BV, which is the owner of 13
chemical vessels as well as a technical ship
management company. Navquim is located in
Rotterdam with a commercial office in Marbella, Spain.
Management sees synergies between the two fleets.
Business review
Christiania Shipping A/S is a specialized chemical
vessel-owning and chartering company established in
1972, with roots back to 1963.
Herning Shipping A/S was acquired by Eitzen Avanti AS
(formerly ANE Shipping AS) in 2018 and following the
acquisition the Company was renamed to Christiania
Shipping A/S. The headquarter is in Copenhagen,
Denmark.
The core competence of Christiania Shipping is to own
and charter sophisticated chemical tankers between
3,500 - 13,000 dwt with highest focus on safety and
quality.
Christiania Shipping has a leading position in trade
niches and the vessels are trading in the Atlantic Ocean,
Europe, West Africa and the Mediterranean.
As of 31 December 2024, the Group’s fleet consisted of
16 stainless steel and Marline-Line coated vessels
ranging from 3,500 - 12,500 dwt, of which all vessels
owned or owned through BB structures with purchase
options and obligations.
Organization
The Group’s administration is in Copenhagen. At the end
of 2024 the Group employed 22 full time staff. The
Group has not been affected by serious work-related
accidents during the year. As per December 2024, 7 out
of 22 employees were female (32%). The organization
is considered to be well-qualified to perform the tasks
within its remit.
Strategic focus
Safety is Christiania Shipping’s first and foremost
priority and it is an integral part of Christiania Shipping’s
vision, mission, strategy and values. The Group’s
overall strategic focus is:
• Develop a safety culture with a target of zero
accidents
• Optimize and develop the existing business
platform
• Expand and renew the fleet
• Continue the consolidation within the chemical
tanker segment and generate profitable growth
5
Management
Board of Directors
In 2024, the Board of Directors of Christiania Shipping
A/S consisted of three members with solid Management
experience.
In 2024 the Board of Directors consisted of:
• Axel Camillo Eitzen, Chairman
• Fridtjof Camillo Eitzen
• Axel Stove Lorentzen
The Executive Management in 2024 consisted of Fridtjof
C. Eitzen (CEO), Snorre Krogstad (CFO), Torben Larsen
(COO), Rune Eriksen (COM) and Anne Sofie Reimann
(CARO).
As of May 2025, Torben K, Larsen commenced as
Managing Director of the Company. Fridtjof C. Eitzen
was elected as chairman of the Board and Snorre
Krogstad and Anne Sofie Reimann was elected as Board
Members.
Market
Rates
After several challenging years in the small chemical
market segment, the market improved to a satisfactory
level in 2022 and 2023. 2024 started at a firm level at
USD 15,255 / day but eased off during the year. Along
with the declining rates the activity level declined
resulting in an increased number of idling days for the
fleet. The average TC rate for the year ended at about
USD 12,700 for the Christiania Shipping Fleet.
Total idling days for the fleet in 2024 was 266 days
corresponding to 4.3% of the total days compared to
156 idle days corresponding to 2.4% of available days
in 2023.
Supply
The primary market for Christiania Shipping fleet is the
small chemical tanker vessel size (1,000 – 9,999 dwt)
and medium chemical tanker vessel size (10,000 –
18,000 dwt).
Small chemical tanker fleet
The world-wide small chemical fleet (1,000 – 9,999
dwt) consist of 1,487 vessels. According to Banchero
Costa, 40 vessels were delivered in 2024, while 13 were
removed corresponding to a net growth of about 2%.
26% of the trading fleet is over 20 years of age while
31% is between 15-19 years and only 12% is less than
5 years.
The orderbook for 2025 is scheduled at 79 vessels and
adjusted for fleet removal, the expected growth in the
world fleet is estimated to be 5%. Due to the age profile
of the fleet, removals are expected to increase going
forward, and according to Banchero Costa the net fleet
growth is estimated to be 2% in 2026 and -1% in 2027.
Supply and demand in the small chemical vessel
segment is a thin line where as few as 20-30 vessels
can make the difference between a slow market and a
good market.
Medium chemical tanker fleet
The world-wide medium chemical fleet (10,000 –
18,000 dwt) consist of about 842 vessels. 17 vessels
were delivered in 2024, while 2 were removed
corresponding to a net growth of about 1.5%. 15% of
the trading fleet is over 20 years of age while 48% is
between 15-19 years and only 7% is less than 5 years.
Based on the anticipated removals and the current
orderbook, Banchero Costa estimates a fleet growth of
2% in 2025 and 1% in 2026.
6
Subsequent events
No subsequent events. See also subsequent events
disclosures in note 27.
Financial highlights of the Company in 2024
Profit and loss
For the full year 2024 Christiania Shipping’s time
charter equivalent earnings was USD 77.9 million (USD
94.6 million in 2023). The reduction reflects decrease in
number of trading days as a result of sale of vessels
(6,129 day vs 6,426 days), reduced TCE (USD 12,704
vs USD 14,719) as well as increased number of off-hire
and idling days (621 days vs 391 days).
The vessel operating expenses amounted to USD 39.4
million (USD 32.6 million in 2023) corresponding to an
average daily operating cost per vessel of USD 6,423
per day compared to USD 6,215 per day in 2023. The
increase reflects a general increase in the crew cost,
inflation as well as some additional maintenance costs.
TC expenses for the year were USD 0.2 million (USD
11.6 million in 2023). The decrease reflects re-delivery
of vessels on TC in 2023.
SG&A for the year amounted to USD 8.0 million
compared to USD 7.7 million in 2023. The increase is
mostly due to general price index growth.
EBITDA for the year was USD 30.5 million compared to
USD 42.7 million previous year. As expressed in the
annual report for 2023, the Group guided on an
expected EBITDA for 2024 of about USD 40 million. Due
to market conditions, the result for 2024 is below the
expectations expressed in the annual report for 2023.
Ordinary depreciation was USD 17.6 million compared
to USD 8.5 million previous year. As per 31 December
2023, prior year impairments of USD 40.7 million were
reversed leading to higher depreciations in 2024.
Financial expenses for the year were USD 9.5 million
(USD 7.4 million in 2023). The increase is mostly due
to increased debt related to the acquisition of vessels as
well as increase in debt related to the acquisition of
Navquim BV. Financial income for the year were USD
1.1 million (USD 1.3 million in 2023). The decrease is
mostly due to somewhat lower cash position compared
to previous year.
The Group had a tax expense for 2024 of USD 83
thousand, compared to a tax income of USD 55
thousand in 2023.
The Group reported a profit of USD 10.0 million
compared to USD 68.8 million in 2023.
Statement of financial positions
The Group’s total assets were USD 209.8 million (USD
203.6 million in 2023). The book value of owned vessels
was USD 134.8 million down from USD 137.3 million,
while right-of-use assets were USD 18.4 million
compared to USD 13.2 million in 2023. The Group has
acquired one vessel during the year and sold two
vessels.
The Group has invested in two newbuildings to be
delivered in 2025 and 2026. The Group will pay for the
two first installments, while the remaining installments
are financed through BB agreements. Other financial
assets amounted to USD 8.3 million reflecting the first
installments on the above-mentioned newbuildings. The
newbuilding contract is in JPY while the financing is in
USD. In order to hedge the currency exposure, the
Group has acquired a USD / JPY option. As per 31
December 2024, derivatives amounted to USD 0.3
million compared to USD 1.2 million in 2023.
Inventories were USD 2.6 million compared to USD 3.6
million last year. Intangible assets of USD 1.0 million
7
relate to EU ETS allowances. Trade receivables were
USD 7.4 million compared to USD 8.9 million last year.
Receivables from related parties were USD 5.2 million.
Restricted cash related to the bank loan with HCOB, was
USD 2.5 million at same level as previous year. Cash at
the end of the year was USD 11.7 million compared to
USD 22.7 million last year.
The Group’s equity amounted to USD 89.0 million
compared to USD 92.0 million last year. The main
reason for the decrease is due to distributed dividends.
Total long-term liabilities amounted to USD 88.9 million
(USD 79.1 million in 2023). Long-term bank loan was
USD 23.3 million compared to USD 29.5 million at the
end of 2023. Long-term bank loan was increased in
connection with the acquisition of Navquim BV and one
vessel offset by the sale and repayment of loan related
to two vessels and refinancing of one vessel.
Long-term lease liability was at the end of the year USD
17.3 million compared to USD 11.9 million last year.
During the year, the Company exercised its purchase
option on the existing BB agreement and took delivery
of a new BB vessel at the same time.
As a result of the sale and leaseback financing
arrangement of Sigaia Theresa in 2024, long-term
financing arrangement liabilities increased to USD 48.1
million from USD 37.6 million in 2023.
Total current liabilities were USD 31.9 million (USD 32.4
million in 2023), of which USD 11.6 million is short-term
bank debt (USD 6.4 million in 2023), USD 1.4 million
lease liabilities (USD 1.0 million in 2023), USD 6.8
million financing arrangements liabilities (USD 5.6
million in 2023). Trade payables at year end were USD
7.2 million (USD 12.1 million in 2023), payables to
parent company was nil (USD 4.0 million in 2023), other
payables were USD 2.4 million (USD 1.0 million in 2023)
and deferred income USD 2.5 million (USD 2.3 million
in 2023).
Current assets of USD 32.8 million exceeds current
liabilities of USD 31.9 million and liquidity is strong.
Cash flow
Cash flow from operating activities was USD 24.8 million
(USD 44.3 million in 2023). Cash flow from investing
activities was USD -11.6 million (USD -33.1 million in
2023) mainly related to investments in additional
vessels during the year offset by the cash proceeds from
sale of vessels. Cash flow from financing activities was
USD -24.0 million (USD -12.8 million in 2023), of which
USD 22.4 million has been paid to group companies,
USD 12.1 million was paid out dividend to the parent
company and USD 19 million cash inflow is related to a
sale and leaseback transaction.
Net cash flow was USD -11.0 million (USD -1.7 million
in 2023) and cash at the end of the year was USD 11.7
million (USD 22.7 million in 2023).
Parent company
On 31 December 2024, the parent company’s total
assets amounted to USD 165.9 million (USD 129.4
million in 2023). The parent company equity amounted
to USD 63.6 million (USD 58.9 million in 2023). The
parent company made a profit of USD 17.8 million (USD
35.6 million in 2023).
8
Outlook for 2025
The market for small chemical tankers is dependent
upon the volume of easy chemicals transported by sea,
which again is dependent upon several factors including
the development in the economy and commodity prices
among others. These factors, combined with the supply
of chemical vessels, will determine the market going
forward.
The demand for chemical vessels was weak for several
years due to periods of oversupply of chemical vessels
as well as the general impact of covid worldwide. At the
end of 2021 there was a gradual market recovery which
continued into a firm market recovery in 2022 and
2023. In 2024 the market eased off somewhat and
ended the year with lower activity and rates than the
peak in 2022 and 2023, but still at a historical firm
market environment.
From a historical perspective, the newbuilding
orderbook is relatively low for both the 1 - 10,000 dwt
segment and 10,000 - 18,000 dwt segment in 2025.
Based on the forecasted fleet growth combined with the
anticipated GDP growth, analysts expect the market to
continue at same level as 2024 with a gradual increase
towards 2026.
However, the market is still dependent upon a
continued stable economic environment and a potential
recession in Europe will of course have an impact the
demand for small chemical vessels.
So far in 2025, the market has been similar to where
the market ended 2024. The rates are still satisfactory,
but there is less activity than expected, probably due to
the uncertainty in the geopolitical environment. The
Group expects continued firm rates and steady volumes
in 2025 which we expect will result in an EBITDA of
about USD 30 million on the basis of the existing fleet.
9
Risk Factors
Being an international player in the chemical tankers
segment, Christiania Shipping is exposed to a variety of
risks that can affect the Group’s result. The risk factors
can be divided into the following main risk components:
• Market risk
• Operational risk
• Financial risk
Such risks are normally related to volatility in charter
income, charter defaults, unforeseen operational
events, operating expenses and unforeseen capital
expenditure requirements, fluctuations in interest- and
foreign exchange rates, as well as financing risk related
to new capital expenditure requirements and
refinancing of existing credit facilities.
The Executive Management continuously monitors the
risks considered to have the most significant effect on
the Group’s business performance as well as financial
position. Measures deemed relevant to limit the Group’s
sensitivity to such risks are evaluated on an on-going
basis.
Market risk
Christiania Shipping’s revenues are exclusively
generated from activities in the oil and chemical tankers
industry. The oil and chemical tanker industry is cyclical
and volatile, which can lead to reductions in freight
rates, volumes transported, and ship values.
Fluctuations in freight rates result from changes in the
supply of chemical vessels and demand for seaborn
transportation of certain chemicals.
Christiania Shipping mitigates the risk of fluctuation in
freight rates to a certain degree, by managing the mix
between Contracts of Affreightment (COA) and spot
market business. When a vessel is fixed on a “TC out”
the rate is fixed and eliminates the volatility, while COA
reduces the volatility. Spot market business, on the
other hand, provides flexibility but exacerbates the
impact of a downturn in the market.
Operational risk
The Group is focused on delivering strong operational
performance for the fleet and is striving towards
operational excellence through strict attention on vessel
maintenance and through continued education of its
staff. Despite the Group’s high degree of pre-emptive
maintenance and education there is a risk for equipment
failure and accidents. Risks related to the operation of
the vessels, transport of cargo, personal injuries,
environmental damages, and war are covered by
insurances in internationally recognized insurance
companies. The Group aims at minimizing its exposure
by using multiple insurance companies.
The Group has established duplication of business-
critical IT systems and contingency plans in case of
breakdowns. Back-up of data is made in an external IT
environment outside the Group’s offices.
Even though the Group obtains loss of hire insurance for
contracts over a certain length, a technical breakdown
will affect the earnings for a period of at least 14 days
(deductible).
Risk related to changes in laws and regulation
The Group’s operation and vessels are subject to
international environmental laws and regulations which
have become more stringent in recent years. Although
the Group is doing its outmost to comply, changes in
laws and regulations may expose the Group.
Bunkers
Bunker fuel constitutes the major cost component
affecting time charter equivalent (TCE) earnings and
increasing prices can have a material impact on
Christiania Shipping’s results.
The Group is striving to reduce the impact of bunker
price fluctuations by passing bunker fuel costs on to
customers. Hence, in 2024 approximately 40% of
freight earnings were derived from COAs and TC out,
the large majority of which include a bunker price clause
that indexes freight rates with bunker prices.
10
EU Emission Trading System (ETS)
The EU ETS is a carbon market that uses a cap-and-
trade system of emission allowances for energy-
intensive industries and the power generation sector.
The shipping industry is subject to the EU ETS, where
shipping companies are required to surrender allowance
equivalent to the following amounts in relation to ships
above 5,000 GT with calls at EU ports. Allowance will be
based on MRV reporting for the previous year and will
be verified and confirmed in January and payable latest
1 April:
• 40% of verified emissions reported for 2024
• 70% of verified emissions reported for 2025
• 100% of verified emissions reported for 2026 and
each year thereafter
The cost of including shipping in the EU ETS will be
significant for the industry. The price of CO
2
quota is
estimated to be volatile and difficult to forecast. To level
out potential price fluctuations and in order not to be
dependent upon acquiring all at one time, we have
bought the quota on a monthly basis in order to match
the consumption in best possible manner.
Financial risk
Investments are typically financed by cash reserves,
equity proceeds injected by the shareholders, debt
obtained by international banks or international leasing
providers. The Group is exposed to financing risk related
to potential new investments and refinancing of existing
debt.
In July 2022, a 5-year loan was entered into with NIBC,
which has since then been acquired by HCOB. The
facility was amended and increased in December 2023
and in October 2024, keeping the repayment date in
July 2027. The loan agreement includes customary
financial covenants. At the end of 2024, the Group was
in compliance with all its covenants.
In addition to the bank agreement with HCOB, the
Group is utilizing financial leases and sale leaseback
arrangements, with purchase options and obligations,
to finance vessels. At the end of the year, one vessel
was classified as financial lease, corresponding to USD
18.8 million in outstanding bareboat obligations, while
six vessels were classified as financial agreement
totaling USD 54.9 million in outstanding bareboat
obligations. The average remaining tenor for the 6
vessels on bareboat with purchase obligation was at the
end of the 7.1 years.
The Group is dependent upon a stable income in order
to be able to pay interest expenses, refinance debt or
raise new debt in the future.
Interest rate risk
The Group’s bank loans are generally subject to floating
interest rates. For 2024, the Group did not hedge any
of its interest rate risk but will evaluate to hedge the
exposure going forward. The Group also finances
vessels through bareboat contracts with purchase
obligations. Four of the BB agreements are based on a
fixed bareboat rate. At the beginning of 2025 about
40% of the Group’s interest rate exposure was hedged
through fixed bareboat rate.
Currency risk
The Group pursues a finance policy that ensures that
foreign exchange risks arise only on the basis of
commercial factors. Most of the revenues earned by
Christiania Shipping are in the reporting currency USD
as well as EUR. A significant portion of the operating
expenses as well as administrative expenses are
incurred in primarily EUR and DKK, while BB and other
financial expenses (BB rate, interest costs and
installments) are in USD. To reduce foreign currency
exchange risk on EUR, Christiania Shipping strives to
match cash inflows and cash outflows as much as
possible. A 10 % fluctuation in the USD/EUR exchange
rate would have an approx. 2% impact on time charter
equivalent earnings for the Group in 2024.
The Group has entered into a newbuilding contract in
JPY and secured financing in USD. In order to minimize
the currency exchange risk, the Group has entered into
USD/JPY put options on back-to-back basis with the
installment plan. The put options limits the downside
risk, at the same time as it allows the Group to take
advantage of the current favorable USD/JPY exchange
rate.
11
Counterparty risk
It is the Group policy only to grant credit to oil majors
and other first-class customers to minimize credit risks.
As such, the Group’s credit risk relates to receivables
from these first-class customers and oil majors in the
chemical tanker segment. The credit risk is deemed to
be minimal and consequently receivables are not
hedged. The Group’s maximum credit risk associated
with receivables corresponds to their carrying amounts.
For smaller customers and newer customers, it is Group
policy to perform a credit assessment based on credit
reports retrieved out of the database of one of the
world’s largest vendors. In most cases, such credit
reports include a credit rating and information on
potential payment delinquency. Furthermore, it is
custom to require freight to be paid before cargo
release. For customers with whom Christiania Shipping
has a long-lasting relationship, freight is typically paid
after cargo release. In 2024, Christiania Shipping did
not suffer any significant losses from defaulting
customers.
Liquidity risk
The shipping market is capital intensive and insufficient
liquidity will severely impact the ability to operate. The
Group’s approach to manage liquidity risk is to ensure,
as far as possible that it will always have sufficient
liquidity to meet its obligations. Cash flow developments
are monitored daily, including monthly updates to the
Executive Management. Furthermore, the Group
evaluates its capital structure and explores various
options to safeguard liquidity. The Group has a
minimum liquidity covenant in its credit facility.
In 2025, Christiania Shipping expects to have sufficient
liquidity for meeting its payment obligations for
conducting the normal course of its operations and sale
of vessels without needing the support from its
shareholder.
12
13
14
15
16
17
Consolidated financial statements
Page
Consolidated income statement ....................................................................................................................... 18
Consolidated statement of financial position ...................................................................................................... 19
Consolidated statement of changes in equity ..................................................................................................... 21
Consolidated statement of cash flow ................................................................................................................ 22
Notes to the consolidated financial statements .................................................................................................. 23
18
Consolidated income statement
1 January - 31 December
USD '000
Note
2024
2023
Net freight income
3
Voyage related expenses
4
-35.606
-41.936
Time charter equivalent earnings
Other operating income
Time charter expenses
-198
-11.623
Operating expenses
5
-39.371
-32.561
Administrative expenses
5, 6
-7.993
-7.741
Operating profit before depreciation etc. (EBITDA)
Depreciation
7
-17.616
-8.538
Impairment gains/losses of fixed assets
7, 11
Gains from sale of fixed assets
7
Operating profit (EBIT)
Finance income
8
Finance expenses
9
-9.479
-7.379
Profit/loss before tax
Tax for the year
10
-83
Profit/loss for the year
Attributable to:
Shareholders of Christiania Shipping A/S
Proposed dividend
OTHER COMPREHENSIVE INCOME
USD '000
2024
2023
Profit/loss for the year
Items which will be reclassified to the income statement:
Value adjustment of hedges for the year
-975
-498
Other comprehensive income
-975
-498
Total comprehensive income
Attributable to:
Shareholders of Christiania Shipping A/S
Proposed dividend
19
Consolidated statement of financial position
at 31 December
USD '000
Note
2024
2023
ASSETS
Vessels
11
Prepayments on vessels and dockings under construction
11
Property, plant and equipment
11
Right-of-use assets
12
Total tangible assets
Loans to group enterprises
25
Other financial asset
13
Derivatives
Deferred tax asset
Total financial assets
Total non-current assets
Inventories
Intangible assets
14
Trade receivables
15
Receivables from related parties
25
Receivables from group enterprises
Other receivables
Prepayments
16
Cash and cash equivalents
17
Restricted cash
17, 19
Total current assets
Total assets
20
Consolidated statement of financial position
at 31 December
USD '000
Note
2024
2023
EQUITY AND LIABILITIES
Share capital
18
Retained earnings
Proposed dividend
Total equity
Long-term debt
19
Long-term lease liability
12
Long-term financing arrangements
20
Other non-current liabilities
Total non-current liabilities
Current portion of long-term debt
19
Current portion of lease liability
12
Current portion of financing arrangements
20
Trade payables
21
Payables to parent company
25
Payables to related parties
25
Current tax liabilities
Other current liabilities
Deferred income
Total current liabilities
Total liabilities
Total equity and liabilities
21
Consolidated statement of changes in equity
1 January - 31 December 2024
USD '000
Share
capital
Retained
earnings
Proposed
dividend
Total
Equity at 1 January 2024
Paid dividend
-12.063
-12.063
Changes in equity
-12.063
-12.063
Comprehensive income for the year
Other comprehensive income, net of tax
-975
-975
Profit/loss for the year
Total comprehensive income for the year
Equity at 31 December 2024
1 January - 31 December 2023
USD '000
Share
capital
Retained
earnings
Proposed
dividend
Total
Equity at 1 January 2023
Paid dividend
-23.000
-23.000
Proposed dividend related to 2023
Changes in equity
-10.937
-10.937
Comprehensive income for the year
Other comprehensive income, net of tax
-498
-498
Profit/loss for the year
Total comprehensive income for the year
Equity at 31 December 2023
22
Consolidated statement of cash flow
1 January - 31 December
USD '000
Note
2024
2023
Operating profit (EBIT)
Adjustment for depreciation
7
Adjustment for gains/losses from impairment of tangible assets
7, 11
-40.688
Adjustment for gains/losses from sale of tangible assets
7
-5.572
Change in working capital excl. Accrued interest and tax liabilities
22
Interest received
8
Interest paid
9
-3.320
-3.633
Interest on lease paid
9
-1.097
-1.039
Interest on finance arrangements paid
9
-3.820
-2.338
Tax paid
-23
-23
Cash flow from operating activities
Additions of tangible assets
11
-28.954
-33.082
Execution of purchase option
-5.807
Proceeds from sale of tangible assets
Cash flow from investing activities
-11.620
-33.082
Loan raised
19
Establishment costs for new loan
-59
-192
Loans to parent company
25
-16.172
-23.000
Loans to related parties
25
-1.000
Receivables from related parties
25
-5.200
Sale and leaseback transactions
20
Repayment of lease liability
12
-1.156
-932
Repayment of finance agreements
20
-6.321
-3.606
Other financial assets
13
-15
-8.259
Loans from related parties
25
-260
Loans from parent company
25
Repayment of loans
19
-25.007
-1.667
Paid dividends
-12.063
Hedges
-1.728
Deposit related to new loan facility
-250
Cash flow from financing activities
-23.978
-12.846
Net cash flow
-10.798
-1.663
Cash and cash equivalents at beginning of the year
Exchange rate adjustments
-179
Net cash flow
-10.798
-1.663
Cash and cash equivalents at end of the year
17
23
Notes to the consolidated financial statements
24
Note 1. Basis of preparation
This note provides a list of material accounting policies
adopted in the preparation of the Consolidated Financial
Statements.
Christiania Shipping operates chemical tankers between
3,500 - 13,000 dwt and has a leading position in trade
niches in the Atlantic Ocean, Europe, West Africa and
the Mediterranean.
Christiania Shipping A/S is a Limited Liability Company
with its registered office in Denmark.
Principal accounting policies
The annual report for the period 1 January – 31
December 2024 with comparative figures comprises the
consolidated financial statements of Christiania
Shipping A/S (the Group) and its subsidiaries.
Consolidation principles
The consolidated financial statements of Christiania
Shipping A/S for 2024 have been prepared on a going
concern basis and in accordance with IFRS Accounting
Standards as adopted by the EU and additional
disclosure requirements for the financial statements of
reporting class large C enterprises in accordance with
the Danish Financial Statements Act.
The consolidated financial statements are presented in
United States Dollars (USD). The consolidated financial
statements are presented on the basis of historical cost
prices. USD/DKK exchange rate at 31 December 2024
was 7,14 (2023: 6,74).
Applied accounting policies are also included in note 28.
Accounting standards and interpretations not yet adopted
Certain new accounting standards and interpretations
have been published that are not mandatory for 31
December 2024 reporting period and have not been
early adopted by the Group. These standards are not
expected to have a material impact on the entity in the
current or future reporting periods and on foreseeable
future transactions with the exception of IFRS 18 which
will impact presentation and disclosure in the financial
statements and will be effective from 2027.
25
Note 2. Significant accounting estimates, assumptions and uncertainties
In applying the Group’s accounting policies described in
note 1 and note 28, Management is required to make
estimates, as well as assumptions for the carrying
amount of assets and liabilities that cannot be directly
derived from other sources. These estimates and
assumptions are based on historical experience and
other relevant factors. The actual outcome may differ
from these estimates.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Changes to accounting estimates are
recognised in the accounting period in which the change
takes place and in future accounting periods if the
change affects both the period during which the change
takes place and subsequent accounting periods.
Significant accounting estimates associated
with accounting policies
In connection with the application of the accounting
policies described in note 28, Management has made
the following accounting estimates, with a significant
effect on the amounts recognised:
• Voyage revenues and costs
• Impairment of tangible assets (including reversal
of impairments)
Voyage revenues and costs
Estimated voyage revenues and costs are recognised in
accordance with the percentage of completion method
with operating revenues and expenses recognised for
each voyage. The percentage of completion is estimated
by management based on the ratio between the
duration of the voyage from load date through the
balance sheet date relative to the total duration of
voyage through the estimated date of discharge.
Applied estimates are reviewed and updated at the end
of each accounting period.
Impairment of tangible assets (including
reversal of impairments)
The Group evaluates the carrying amount of vessels and
other net assets to determine whether events have
occurred, impairment indicators, that would require an
adjustment to the recognised value of the net assets. If
impairment indicators exist Management prepares an
impairment test. Impairment tests are based on
discounted future cash flow models, which are
compared to the carrying amount of the assets within
the cash generating units. Impairment tests are
prepared based on assumptions including future freight
rates, earnings from vessels and Management activities
as well as discount rates. All of these factors have been
historically volatile.
26
Note 3. Revenue
Accrued income included in trade receivables in the balance sheet constitutes contract assets comprising unbilled
amounts to customers representing the Group’s right to consideration for the services transferred to date. Any amount
previously recognised as accrued income is reclassified to trade receivables at the time it is invoiced to the customer.
Part of the deferred income presented in the balance sheet constitutes contract liabilities which represent advance
payments and billings in excess of revenue recognised.
There were no significant changes in accrued income and deferred income during the reporting period.
Note 4. Voyage related expenses
27
Note 5. Staff costs
Average employees
2024
2023
Land based employees
22
24
Seafarers
246
247
28
Note 6. Fees to the auditor appointed at the general meeting
Note 7. Depreciations, impairments and gains/losses
Note 8. Financial income
Note 9. Financial expenses
29
Note 10. Tax
The majority of the Group's income tax base is located in Denmark, and therefore subject to the Danish tonnage tax
scheme. The Group renewed its participation in the tonnage tax scheme on 1 January 2021, with a binding period of 10
years.
The Group did not own any vessels upon entering the tonnage tax scheme; consequently, the Group has no deferred,
or contingent, taxes from the transitional period.
Under the tonnage tax scheme, income and expenses from shipping activities are not subject to direct taxation and
accordingly an effective rate reconciliation has not been provided as it would not provide any meaningful information.
Instead, the taxable income is calculated from:
• The net tonnage of the vessels used to generate the income from shipping activities
• A rate applicable to the specific net tonnage of the vessel based on a sliding scale
In 2024, the Group have recognised a deferred tax asset of USD 98 thousand (2023: USD 172 thousand). There are no
unrecognised tax liabilities associated with investments in foreign subsidiaries and jointly controlled companies.
Note 11. Property, plant and equipment
30
During 2024, two vessels have been sold to external parties. One vessel was acquired by exercising of purchase option
which was later sold to a third party with repurchase options and obligations. Christiania Shipping entered into a lease
contract at the same time. On a Group level, this transaction has no impact to the carrying amount of the owned vessel
and have been treated as a financing transaction on group level.
During 2023, one vessel was acquired from an external party and two vessels were acquired from a related party on
market terms in the vessel-owning company Christianiaship A/S.
During 2023, two vessels have been sold to third parties with repurchase options and obligations. Christiania Shipping
entered into lease contracts at the same time. These transactions have been treated as financing transactions on group
level.
Please refer to note 28 for further information.
31
Impairment test
According to the Group’s accounting policy, a write-down is made to the higher of the sales price (less costs to sell) and
the value in use if there is an impairment indication.
As of 31 December 2024, Management assessed if any impairment indication exists for the Group’s fleet. The fleet,
including vessels chartered on time charter and bareboat charter agreements, is seen as one cash-generating unit (CGU).
Following the assessment, Management has assessed that there were no impairment indicators.
Impairment test 2023
As of 31 December 2023, Management assessed if any impairment indication exists for the Group’s fleet. The fleet,
including vessels chartered on time charter and bareboat charter agreements, is seen as one cash-generating unit (CGU).
Following the assessment, Management has assessed that there is no impairment indication.
The demand for chemical vessels was weak for several years due to periods of oversupply of chemical vessels as well as
the general impact of covid worldwide. At the end of 2021 there was a gradual market recovery which continued and
into a firm market recovery in 2022 and 2023.
As of 31 December 2023, Management assessed if any indications for reversal of impairments exists for the vessels in
the Group’s fleet which carries previously recognised impairment losses. An impairment test was performed at the end
of 2023 in order to assess potential reversal of previously recognised impairment.
The vessels which carries previously recognized impairment losses is defined as separate CGUs. A WACC of 9% was
used for the calculation.
The value-in-use calculation indicated substantial headroom and prior year impairments of USD 40.7 million were
reversed. The value-in use calculation is particularly sensitive to even minor fluctuations in freight rates and WACC. As
an example of these sensitivities, a reduction of the assumed freight rates of USD 1,000 per day would affect the value-
in-use negatively by approximately USD 17.9 million. An increase in WACC of 1% would similarly affect the value-in-use
negatively by approximately USD 1.6 million.
32
Note 12. Leases
The total cash outflow for leases in 2024 was USD 2.3 million (2023: USD 2.0 million).
The Group’s leasing activities primarily consists of bareboat charter leases, which have a duration of up to ten years.
Leasing arrangements are accounted for as described in note 28.
33
Note 13. Other financial assets
The Group has invested in two newbuildings to be delivered in 2025 and 2026. The Group will pay for the two first
installments, while the remaining installments are financed through sale and leaseback arrangements with purchase
options and purchase obligations.
Other financial assets amounted to USD 8.3 million as of 31 December 2024, reflecting the first installments on above
mentioned newbuildings.
The newbuilding contract is in JPY while the financing is in USD. In order to hedge the currency exposure, the Group has
acquired a USD / JPY option. As per 31 December 2024, derivatives amounted to USD 0.3 million (2023: USD 1.2
million).
Note 14. Intangible assets
34
Note 15. Trade receivables
The fair value of trade receivables approximates the carrying amount.
A provisioning account is used to reduce the carrying amount of receivables from sales and services whose value is
impaired due to loss risk.
The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits
the use of the lifetime expected loss provision for all trade receivables. To measure the expected credit losses, trade
receivables have been grouped based on shared credit risk characteristics and the days past due. The expected credit
losses also incorporate forward looking information. The credit risk is generally considered immaterial.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty
and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered
into bankruptcy proceedings.
Note 16. Prepayments
35
Note 17. Cash and cash equivalents
Note 18. Share capital
Note 19. Loans
During 2024, the Group amended the existing loan agreement. The fair value of the loans approximates the carrying
amount. The loan agreement, signed in December 2023, includes financial covenants with respect to liquidity, equity
ratio and working capital requirements. These requirements were met at the balance sheet date.
36
Note 20. Financing arrangements
In 2024, the Group has entered into one sale-and-leaseback agreement. The Group has purchase options for the vessel
and when the financing expires, the Group has a purchase obligation to acquire the vessel at an agreed value. The
following finance arrangements have been established during 2024:
• The Group entered into a finance arrangement with White Line Co. Ltd. on 31 July 2024 to finance USD 19.0
million in connection with the sale-and-leaseback of Sigaia Theresa.
In accounting for a financing arrangement, the Group continues to recognise the transferred assets and recognises a
financial liability for the consideration received from lender. The financial liability is subsequently measured at amortized
cost.
Note 21. Trade payables
37
Note 22. Changes in working capital
Note 23. Unrecognised contingent assets and liabilities
The Group is not involved in any material lawsuits involving claims against the Group. However, claims have been made
against the Group regarding cargo claims etc. It is Management’s opinion that the outcome of these disputes will not
have any material impact on the Group’s financial position, result or cash flow.
The Group is not involved in any material lawsuits, disputes etc. involving claims from the Group against third parties.
The Group has not issued any guarantees.
Note 24. Mortgages and security
The assets mortgaged as security relates to a loan facility of USD 34.9 million with Hamburg Commercial Bank AG
(HCOB), (2023: USD 35.9 million). The loan with HCOB expires in July 2027, or when the vessels being mortgaged are
disposed of, if earlier.
38
Note 25. Related party disclosures and transactions with related parties
Related parties with controlling influence
Related parties with controlling influence consist of the Board in Eitzen Avanti AS, based in Oslo, Norway that ultimately
controls the Group with 100% ownership.
Transactions with related parties
The related parties comprise the Executive Board, members of the Board of Directors, as well as their close relatives.
Related parties also include companies in which the above-mentioned persons have significant interests as well as
companies and foundations, which have direct or indirect considerable influence through shareholding. Remuneration to
key management personnel are disclosed in note 5.
The following transactions has been made on an arm’s length basis during the year. Furthermore, the following
balances are outstanding at the end of the reporting period in relation to transactions with related parties:
39
Note 26. Financial risks
Due to the nature of Christiania Shipping’s operations, the Group is mainly exposed to risks relating to fluctuations in
freight rates and bunker prices.
Maturities of financial liabilities
The table below analyses the Group’s financial liabilities into relevant maturity groupings:
Freight rates
The Group’s income is principally generated from voyages carried out by its fleet of vessels. As such the Group is exposed
to volatility in the freight rates.
It is the Group’s strategy to minimize its’ to this risk by entering physical contracts with different duration, such as cargo
contracts and time charters.
All things being equal and the extent the Group’s vessels have not already been chartered out at fixed rates, a freight
rate change of 1% would lead to the changes in profit and loss as shown above.
There have been no changes in the methods applied from previous periods.
40
Bunker prices
The Group’s largest variable cost is fuel in the form of bunkers, and the total cost will therefore depend on the market
price of bunkers. To reduce this risk the Group generally entering physical delivery contracts which make it possible to
levy any changes in the bunker prices on the customer.
All things being equal, a price increase of 1% per ton of bunker oil (without subsequent changes in freight rates) would
lead to the changes in profit and loss as shown above.
There have been no changes in the methods applied from previous periods.
Categories of financial instruments
The carrying amounts for the Group’s financial instruments are shown below:
Note 27. Subsequent events
No subsequent events.
41
Note 28. Accounting policies
Accounting policies in addition to those described in
note 2, is as described below.
Consolidated financial statements
The consolidated financial statements include
Christiania Shipping A/S (parent company) and the
enterprises (subsidiaries) which are controlled by the
parent company. Control is achieved when the
company:
• has the power of the investee
• is exposed or has the right to variable returns
from involvement with the investee
• has the ability to use its power to affect its
returns
The Group’s joint control or significant influence over an
entity or activity is subject to an assessment of power
and exposure to variability in returns. When assessing
joint control, an analysis is carried out to determine
which decisions require unanimity and whether these
concern the activities that significantly affects return.
Joint control is the contractually agreed sharing of
control of an arrangement, which exists only when
decisions about the relevant activities require the
unanimous consent of the parties sharing control.
Basis of consolidation
The consolidated financial statements have been
prepared on the basis of the accounts of Christiania
Shipping A/S and its subsidiaries. The consolidated
financial statements have been prepared by adding
together items of a uniform nature. The accounts used
for consolidation purposes have been prepared in
accordance with the Group’s accounting policies.
Intercompany income and expenses, intercompany
balances and dividends as well as profit and loss from
intercompany transactions have been eliminated on
consolidation. Subsidiaries’ items are recognised in full
in the consolidated financial statements. Non-
controlling interests, presented as part of equity,
represent the portion of a subsidiary’s profit or loss and
net assets that is not held by the Company.
Investments in joint arrangements are recognised and
measured in the consolidated financial statements pro
rata with the Group’s ownership interest and presented
on a line-by-line basis in the consolidated financial
statements. The proportionate share of the results of
the entities after tax and elimination of unrealised
proportionate intercompany profits and losses is
recognised in the income statement.
Foreign currency translation
The functional currency and presentation currency of
the Group is USD. On initial recognition, transactions in
currencies other than the functional currency of the
Group are translated using the exchange rate at the
date of the transaction. Receivables, payables and other
monetary items in foreign currencies, which have not
been settled at the balance sheet date, are translated
using the rate of exchange at the balance sheet date.
Any exchange differences arising between the rate of
exchange at the date of the transaction and the rate of
exchange at the date of payment and the balance sheet
date, respectively, are recognised in the income
statement as financial income and expenses. Property,
plant and equipment, intangibles, inventories and other
non-monetary assets purchased in foreign currencies
and measured using historical costs are translated using
the rate of exchange at the date of the transaction.
Income statement
Revenue
Revenue comprises freight, demurrage, time charter
and other voyage related revenue. Revenue is
recognised when or as performance obligations are
satisfied by transferring the promised goods or services
to the customer, i.e. at a point in time or over time
provided that the stage of completion can be measured
reliably. Revenue is measured at the consideration the
Group expects to be entitled to.
The completion is determined using the load-to-
discharge method based on the percentage of the
estimated duration of the voyage completed at the
reporting date. Freight revenue and related voyage and
operating costs are recognized in the income statement
according to the entered charter parties from the date
of load to the date of delivery of the cargo (discharge).
42
Accordingly, freight, charter hire and demurrage
revenue are recognised at selling price upon delivery of
the service as specified in the agreement with the
charter parties.
Voyage related expenses
These are expenses related to voyages performed by
the Groups vessels. Voyage related expenses consist
mainly of bunkers, port expenses and commissions.
Voyage related expenses are recognised as incurred.
Operating expenses
Operating expenses include costs relating to the
operation and maintenance of vessels, including costs
relating to crew. Operating expenses are recognised as
incurred.
Administrative expenses
Administrative expenses include the cost of offices,
personnel costs and administrative costs. Staff costs
comprise wages and salaries, social security and
pension costs, etc. and are recognised as incurred.
Depreciation and impairment losses
Depreciation and impairment losses comprise
depreciation of tangible fixed assets for the period as
well as the impairment of the value of assets by the
amount by which the carrying amount of the asset
exceeds its recoverable amount. In the event of
indications of impairment, the carrying amount is
assessed, and the value of the asset is impaired to its
recoverable amount equal to the higher of value in use
based on net present value of future earnings from the
assets and its net selling price.
Financial items
Financial items comprise interest income and expenses,
realised and unrealised gains and losses on securities,
liabilities and foreign currency transactions, dividends,
estimated interest expenses relating to amortization
allowances or deductions relating to mortgage debt etc.
as well as surcharges and allowances under the Danish
Corporate Tax Scheme.
Interest income and expenses are accrued on the basis
of the principal and the effective interest rate. The
effective interest rate is the discount rate that will be
used to discount the expected future payments that are
linked to the financial asset or financial liability so that
their present value corresponds to the carrying amount
of the asset and liability.
Tax
The Group’s current tax of the year consists of
estimated tax according to the Danish Tonnage Tax Act
for all shipping activities, and according to general tax
regulations for net financial income and other activities.
Other activities consist of the Group’s Management fee
income. Shipping activities are taxed based on the net
tonnage (vessels) which the Group has at its disposal.
Based on the Group’s planned use of vessels and
recovery of reversed depreciation, the tonnage tax
regime does not result in a deferred tax liability, but is
merely incorporated as a contingent liability. Other
activities of the Group are not subject to deferred tax
either.
Balance sheet
Property, plant and equipment, vessels and dry-
docking
Property, plant and equipment, vessels, upgrade costs,
dockings and office and IT equipment, and are
measured at cost less accumulated depreciation and
impairment losses. The cost comprises the cost of
acquisition and any expenses directly related to the
acquisition until the time when the asset is ready for
use, including interest expenses incurred during the
period of construction. Other borrowing costs are taken
to the income statement. Depreciation is charged over
the expected economic lives of the assets, and the
depreciation methods, expected lives and residual
values are reassessed individually for the assets at the
end of each financial year.
Vessels
Vessels are measured at cost less accumulated
depreciation and write-downs. All major components of
vessels except for dry-docking assets are depreciated
on a straight-line basis to the estimated residual value
over their estimated useful lives, which the Group
estimates to be 25 years. Depreciation is based on cost
43
less estimated residual value. Residual value is
estimated as the light weight tonnage of each vessel
multiplied by scrap value per ton. The useful life and
residual value of the vessels are reviewed at least at
each financial year-end based on market conditions,
regulatory requirements and the Group’s business
plans. Moreover, the Group evaluates the carrying
amount of the vessels to determine whether events
have occurred that indicate impairment and would
require an adjustment of the carrying amounts.
Prepayments on vessels under construction are
recognised as installments paid.
Dry-dockings
Vessels are required to undergo planned dry dockings
for major repairs and maintenance, which cannot be
carried out while the vessels are operating. Dry-
dockings are generally required every 30-60 months
depending on the nature of the work, and the age of the
vessel. Costs relating to dry-dockings are capitalised
and depreciated on a straight-line basis over a period of
60 months or to the next dock if within 30 months. The
residual value is estimated at zero. A portion of the cost
of acquiring a new vessel is allocated to the components
which are expected to be replaced or refurbished at the
next dry-docking. A portion of the acquisition price for
a new vessel is allocated to a dry-docking asset. The
dry-docking asset is estimated on the basis of the
expected costs related to the first-coming docking,
which is based on experience with similar vessels. At
subsequent measurement dry-dockings, the asset
comprises the actual docking costs incurred.
Office and IT equipment
Office and IT equipment is depreciated on a straight-
line basis over the estimated useful lives, which does
not exceed 5 years.
Leases
The Group leases vessels through bareboat and time
charter arrangements. Contracts may contain both
lease and non-lease components. The Group allocates
the consideration in the contract to the lease and non-
lease components based on their relative stand-alone
prices.
Leases are recognised as a right-of-use asset and a
corresponding liability at the date at which the leased
asset is available for use by the Group.
Lease liabilities
Lease liabilities are initially measured on a present value
basis and include the following lease payments:
• fixed payments (including in-substance fixed
payments), less any lease incentives receivable
• variable lease payments that are based on an
index or a rate, initially measured using the index
or rate as at the commencement date
• amounts to be expected to be payable by the
Group under residual value guarantees
• the exercise price of a purchase option if the
Group is reasonably certain to exercise that
option
• payments of penalties for terminating the lease,
if the lease term reflects the Group exercising
that option
• payments to be made under reasonably certain
extension options
In calculating the present value of the lease payments,
Christiania Shipping uses the incremental borrowing
rate at the lease commencement date. This is the rate
the Group would have to pay to borrow the funds
necessary to obtain an asset of similar value to the
right-of-use asset in a similar economic environment
with similar terms, security and conditions. The
incremental borrowing rate applied is approximately
8%. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the
lease term, a change in the fixed lease payments or a
change in the assessment to purchase the underlying
asset.
The Group is exposed to potential future increases in
variable lease payments based on an index or rate,
which are not included in the lease liability until they
take effect. When adjustments to lease payments based
on an index or rate take effect, the lease liability is
reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and
finance expenses. Finance expenses are charged to the
44
income statement over the lease period so as to
produce a constant periodic rate of interest on the
remaining balance of the liability for each period.
Right-of-use assets
Right-of-use assets are measured at cost comprising
the following:
• the amount of the initial measurement of lease
liability
• any lease payments made at or before the
commencement date less any lease incentives
received
• any initial direct costs
• restoration costs
Right-of-use assets are depreciated over the lease term
on a straight-line basis.
Payments associated with short-term leases of
equipment and vehicles and all leases of low-value
assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases
with a lease term of 12 months or less. Low-value
assets comprise rent of the Group head quarter and
office equipment etc.
Sale and leaseback transactions
A sale-and-leaseback transaction involves the transfer
of an asset by an entity (the seller-lessee) to another
entity (the buyer-lessor) and the leaseback of the same
asset by the seller-lessee. However, in order for an
arrangement to be classified as a sale-and-leaseback
agreement, the Group is required to apply IFRS 15
Revenue from Contracts with Customers to determine
whether a sale has occurred. That is, control of the
underlying asset has to pass to the buyer-lessor in order
for the arrangement to be classified as a sale-and-
leaseback agreement. If control of the underlying asset
is not passed, the transaction should be accounted for
as a financing transaction.
In case, the Group’s option (and obligation) to
repurchase the vessels means that the transaction does
not qualify as a sale in accordance with IFRS 15 and
therefore does not qualify as a sale and leaseback.
Consequently, the Group should account for the
transaction as a financing arrangement in accordance
with IFRS 9 Financial instruments.
In accounting for a financing arrangement, the Group
continues to recognise the transferred assets and
recognises a financial liability for the consideration
received from the buyer-lessor. The financial liability is
subsequently measured at amortized cost.
Impairment tests
The carrying amounts of property, plant and equipment
with finite useful lives are evaluated at the balance
sheet date to determine whether there are indications
of impairment. If an indication of impairment is
identified, the recoverable amount of the asset is
estimated in order to determine the need for
recognising an impairment loss and the extent hereof.
If an asset does not generate cash flows that are
independent from other assets, the recoverable amount
is determined for the smallest cash-generating unit to
which the asset belongs. The Group is considered as one
cash generating unit. The recoverable amount is defined
as the higher of the fair value of the asset or the cash
generating unit less costs to sell and the value in use.
In assessing value in use, the estimated future cash
flows are discounted to their present value using a
discount rate that reflects current market assessments
of the time value of money, the risks specific to the
asset or the cash-generating unit for which the
estimates of future cash flows have not been adjusted.
For vessels, the fair value is usually determined based
on the estimated selling price less costs to sell. If the
recoverable amount of the asset or cash-generating unit
is estimated to be less than its carrying amount, the
carrying amount is reduced to the recoverable amount.
An impairment loss for cash-generating units is
allocated to the assets of the unit, but no asset will be
reduced to a lower value than its fair value deducted
expected costs to sell. Impairment losses are
recognised in the statement of comprehensive income.
If an impairment loss subsequently is reversed as a
result of changes in the assumptions used to determine
the recoverable amount, the carrying amount of the
asset or cash-generating unit is increased to the revised
45
recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that
would have been determined had no impairment loss
been recognised for the asset or cash-generating unit.
Assets that suffered an impairment are reviewed for
possible reversal of the impairment at the end of each
reporting period.
Derivatives and hedging activities
Derivatives are initially recognised at amortised cost on
the date a derivative contract is entered into and are
subsequently remeasured to their fair value at the end
of each reporting period. The accounting for subsequent
changes in fair value depends on whether the derivative
is designated as a hedging instrument, and if so, the
nature of the item being hedged.
The Group designates hedging instruments as hedges
of highly probable forecast transactions in foreign
currency (cash flow hedges).
The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash flow
hedges is recognised in other comprehensive income
and accumulated in Reserve for cash flow hedges in
equity. The gain or loss relating to the ineffective
portion is recognised immediately in profit or loss within
financial items.
Inventories
Inventories are measured at cost according to the FIFO
method, or net realizable value if lower. Inventories
consist of bunkers and lubricants etc. The cost of
bunkers and lubricants includes the purchase price and
delivery costs.
Intangible assets
Carbon allowances
The Group participates in the EU Emissions Trading
Scheme (EU ETS), a regulatory cap-and-trade system
for greenhouse gas emissions. Under this scheme,
companies must surrender EU Allowances (EUAs) to
cover emissions for voyages within the EU (intra-EU),
50% of the emissions from voyages starting or ending
outside of the EU (extra-EU voyages), and all emissions
that occur when vessels are at berth in EU ports.
The Group recognize carbon allowances as intangible
assets in accordance with IAS 38, as the carbon
allowances are held to settle a liability, in terms of the
ordinary business. The purchase of carbon allowances
is initially measured at cost and subsequently measured
using the cost model. Carbon allowances have an
indefinite life and is assessed for impairment annualy.
Receivables
Receivables comprise trade receivables (including
accrued income) and other receivables. Receivables are
classified as receivables that are financial assets, with
fixed or determinable payments, which are not quoted
in an active market and which are not derivative
financial instruments. Receivables are initially
measured at fair value and subsequently at amortized
cost, which usually equals the nominal value less
provisions for bad debts.
In measuring the expected credit losses on trade
receivables, the Group applies the simplified approach
permitted by IFRS 9, which requires expected lifetime
losses to be recognised from initial recognition of the
receivables.
Dividends
Dividend are recognised as a liability at the time of
approval by the General Meeting. Dividends proposed
by Management in respect of the year are stated under
equity.
Provisions
Provisions are recognised when the Group has a legal or
constructive obligation as a result of past events, for
which it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation. Provisions are measured as the best
estimate of the expenditure required to settle the
obligation at the balance sheet date. Provisions with an
expected maturity of more than one year from the
balance sheet date are measured at present value.
46
Non-current and current financial liabilities
(interest bearing debt)
Finance loans are initially measured at fair value less
any transaction costs. Finance loans are subsequently
measured at amortized cost. This means that the
difference between the amount on initial recognition
and the redemption value is recognised in the income
statement as a financial expense over the term of the
loan using the effective interest method.
Trade payables and other liabilities
Trade payables and other liabilities are initially
measured at fair value less any transaction costs.
Liabilities are subsequently measured at amortized cost
using the effective interest method. Accordingly, the
difference between the proceeds and the nominal value
is recognised in the in-come statement as a financial
expense over the term of the liability.
Cash flow statement
The cash flow statements are presented using the
indirect method and show cash flows from operating,
investing and financing activities as well as cash and
cash equivalents at the beginning and end of the year.
Cash flows from operating activities are stated as the
operating profit or loss, adjusted for non-cash operating
items and changes in working capital, less corporation
tax paid attributable to operating activities.
Cash flows from investing activities include payments in
connection with the acquisition and divestment of
enterprises and financial assets and the acquisition,
development, improvement and sale, etc. of intangibles
and property, plant and equipment.
Cash flows from acquisition and divestment of
enterprises are shown separately under cash flows from
investing activities. Cash flows from acquired
enterprises are recognised in the cash flow statement
from the time of their acquisition, and cash flows from
divested enterprises are recognised up to the time of
sale. Cash flows from financing activities comprise
changes in the parent Group’s share capital and related
costs as well as raising and repayment of loans,
instalments on interest bearing debt, acquisition of
treasury shares and payment of dividend. Cash flows in
other currencies than the functional currency are
recognised in the cash flow statement using average
exchange rates for the respective months, unless these
deviate materially from the actual exchange rates ruling
at the dates of the transactions. If so, the actual
exchange rates are used.
Cash and cash equivalents
Cash and cash equivalents include cash in hand,
deposits held at call with banks, other short-term highly
liquid investments and bank overdrafts. Bank overdrafts
are shown within borrowings in current liabilities.
47
Parent company financial statements
Page
Parent company income statement .................................................................................................................. 48
Parent company statement of financial position ................................................................................................. 49
Parent company statement of changes in equity ................................................................................................ 51
Parent company statement of cash flow .......................................................................................................... 52
Notes to the parent company financial statements ............................................................................................. 53
48
Parent company income statement
1 January - 31 December
49
Parent company statement of financial position
at 31 December
50
Parent company statement of financial position
at 31 December
51
Parent company statement of changes in equity
1 January - 31 December 2024
1 January - 31 December 2023
52
Parent company statement of cash flow
1 January - 31 December
53
Notes to the parent company financial statements
T
54
Note 1. Basis of preparation
The parent company’s annual report for the period 1
January – 31 December 2024 with comparative figures
comprises the financial statements of Christiania
Shipping A/S (‘the Company’).
The parent company’s financial statements have been
prepared on a going concern basis and in accordance
with IFRS Accounting Standards as adopted by the EU
and additional Danish disclosure requirements for the
financial statements of reporting class large C
enterprises in accordance with the Danish Financial
Statements Act. Christiania Shipping A/S is a Limited
Liability Company with its registered office in Denmark.
The Parent Company uses the same accounting policies
for recognition and measurement as the Group. In such
case, where the Parent Company’s accounting policies
differ from the Group, those are described below. For a
detailed description of the Parent Company’s accounting
policies, see note 28 in the Consolidated Financial
Statements.
The financial statements are presented in United States
Dollars (USD). The financial statements are presented
on the basis of historical cost prices.
Results from investments in subsidiaries
Results from investments in subsidiaries comprises the
individual entities’ earnings after full elimination of
internal gains and losses.
Conversion of foreign currency
Exchange rate adjustments of receivables from or
liabilities to subsidiaries, which are considered part of
the parent company's investment in the subsidiary, are
recognised in the income statement under financial
items. In the consolidated financial statements, value
adjustments are recognised in other comprehensive
income.
Investment in subsidiaries
Investments in subsidiaries are recognised and
measured according to the equity method.
The total net revaluation of investments is subsidiaries
is transferred through the distribution of profits to
“Reserve for net revaluation according to equity
method” under equity. The reserve is reduced by
dividend payments to the parent company and is
adjusted with other changes in equity in subsidiaries.
Subsidiaries with negative net asset value are
recognised at USD 0, and a provision to cover the
negative balance is recognised if such a present
obligation for this purpose exists.
55
Note 2. Significant accounting estimates, assumptions and uncertainties
For a description of significant accounting estimates, assumptions and uncertainties, see note 2 of the consolidated
financial statements.
Note 3. Revenue
See note 3 in the consolidated financial statements.
Note 4. Voyage related expenses
See note 4 in the consolidated financial statements.
Note 5. Staff costs
Average employees
2024
2023
Land based employees
16
18
Seafarers
246
247
Total
262
265
Remuneration of the Board of Directors and the Executive Management are disclosed in note 5 in the consolidated
financial statements.
56
Note 6. Fees to the auditor appointed at the general meeting
See note 6 in the consolidated financial statements.
Note 7. Depreciations, impairments and gains/losses
Note 8. Share of results in subsidiaries
Note 9. Financial income
Note 10. Financial expenses
57
Note 11. Tax
The majority of the Company's income tax base is located in Denmark, and therefore subject to the Danish tonnage tax
scheme. The Company renewed its participation in the tonnage tax scheme on 1 January 2021, with a binding period of
10 years.
The Company did not own any vessels upon entering the tonnage tax scheme; consequently, the Company has no
deferred, or contingent, taxes from the transitional period.
Under the tonnage tax scheme, income and expenses from shipping activities are not subject to direct taxation and
accordingly an effective rate reconciliation has not been provided as it would not provide any meaningful information.
Instead, the taxable income is calculated from:
• The net tonnage of the vessels used to generate the income from shipping activities
• A rate applicable to the specific net tonnage of the vessel based on a sliding scale
In 2024, the Company have recognised a deferred tax asset of USD 112 thousand (2023: USD 161 thousand). There
are no unrecognised tax liabilities associated with investments in foreign subsidiaries and jointly controlled companies.
58
Note 12. Property, plant and equipment
During 2024, one vessel was acquired by exercising of purchase option which was later sold to a third party with
repurchase options and obligations. Christiania Shipping entered into a lease contract at the same time.
During 2024, two vessels were moved to the subsidiary, Christianiaship A/S based on booked values. Moreover, during
2022 one vessel was sold to an external party.
Please refer to note 28 in the consolidated financial statements for further information.
59
Impairment test
According to the Company’s accounting policy, a write-down is made to the higher of the sales price (less costs to sell)
and the value in use if there is an impairment indication.
As of 31 December 2024, Management assessed if any impairment indication exists for the Comapny’s fleet. The fleet,
including vessels chartered on time charter and bareboat charter agreements, is seen as one cash-generating unit (CGU).
Following the assessment, Management has assessed that there were no impairment indicators.
Impairment test 2023
As of 31 December 2023, Management assessed if any impairment indication exists for the Company’s fleet. The fleet,
including vessels chartered on time charter and bareboat charter agreements, is seen as one cash-generating unit (CGU).
Following the assessment, Management has assessed that there is no impairment indication.
The demand for chemical vessels was weak for several years due to periods of oversupply of chemical vessels as well as
the general impact of covid worldwide. At the end of 2021 there was a gradual market recovery which continued and
into a firm market recovery in 2022 and 2023.
As of 31 December 2023, Management assessed if any indications for reversal of impairments exists for the vessels in
the Company’s fleet which carries previously recognised impairment losses. An impairment test was performed at the
end of 2023 in order to assess potential reversal of previously recognised impairment.
The vessels which carries previously recognized impairment losses is defined as separate CGUs. A WACC of 9% was
used for the calculation.
The value-in-use calculation indicated substantial headroom and prior year impairments of USD 7.3 million were
reversed. The value-in use calculation is particularly sensitive to even minor fluctuations in freight rates and WACC. As
an example of these sensitivities, a reduction of the assumed freight rates of USD 1,000 per day would affect the value-
in-use negatively by approximately USD 4.6 million. An increase in WACC of 1% would affect the value-in-use negatively
by approximately USD 0.1 million.
60
Note 13. Leases
The total cash outflow for leases in 2024 was USD 6.9 million (2023: USD 2.6 million).
The Company’s leasing activities primarily consists of bareboat charter leases, which have a duration of up to ten years.
Leasing arrangements are accounted for as described in note 28 in the consolidated financial statements.
Note 14. Other financial assets
See note 13 in the consolidated financial statements.
61
Note 15. Investments in subsidiaries
Note 16. Intangible assets
See note 14 in the consolidated financial statements.
Note 17. Trade receivables
See note 15 in the consolidated financial statements.
Note 18. Prepayments
62
Note 19. Cash and cash equivalents
Note 20. Share capital
See note 18 in the consolidated financial statements.
Note 21. Financing arrangements
The Company has entered into sale-and-leaseback agreements. The Company has purchase options for the vessels and
when the financing expires, the Company has a purchase obligation to acquire the vessels at an agreed value.
In accounting for a financing arrangement, the Company continues to recognise the transferred assets and recognises
a financial liability for the consideration received from lender. The financial liability is subsequently measured at
amortized cost.
Note 22. Trade payables
63
Note 23. Changes in working capital
Note 24. Unrecognised contingent assets and liabilities
See note 23 in the consolidated financial statements.
The Parent company is guarantor for the loan facility in its subsidiary, Christianiaship A/S.
64
Note 25. Related party disclosures and transactions with related parties
See note 25 in the consolidated financial statements.
The following transactions has been made on an arm’s length basis during the year. Furthermore, the following
balances are outstanding at the end of the reporting period in relation to transactions with related parties:
Remuneration of the Board of Directors and the Executive Management are disclosed in note 5 in the consolidated
financial statements.
65
Note 26. Financial risks
See note 26 in the consolidated financial statements.
Maturities of financial liabilities
The table below analyses the Company’s financial liabilities into relevant maturity groupings:
Categories of financial instruments
The carrying amounts for the Group’s financial instruments are shown below:
Note 27. Subsequent events
See note 27 in the consolidated financial statements.
66
E
xecutive Management
Board of Directors
67
68
69
CVR No 33 7 7 12 31
mne33226
mne42825
70
Definitions and glossary
Non-GAAP measures
Time charter equivalent earnings = Net freight income – Voyage related expenses
71
Company information
Registration no.
www.christiania-shipping.com
Board of Directors and Management
BOARD OF DIRECTORS – Christiania Shipping A/S
• Axel Camillo Eitzen
Board member since January 2018, Chairman since January 2023 (resigned from the Board of Directors in May
2025)
• Fridtjof Camillo Eitzen
Board member since December 2020, Chairman since May 2025
• Axel Stove Lorentzen
Board member since December 2020 (resigned from the Board of Directors in May 2025)
• Snorre Schie Krogstad
Board member since May 2025
• Anne Sofie Reimann
Board member since May 2025
KEY MANAGEMENT PERSONNEL
• Fridtjof Camillo Eitzen – Chief Executive Officer
Employed January 2023 (resigned as CEO in May 2025)
• Snorre Schie Krogstad – Chief Financial Officer
Employed February 2022
• Torben Larsen – Chief Operational Officer
Employed January 2018 (Managing Director since May 2025)
• Rune Eriksen Lorentsen – Chief Operating Manager
Employed April 2018
• Anne Sofie Reimann – Chief Accounting & Reporting Officer
Employed December 2023
GROUP OVERVIEW