EXMAR report 2023

Market overview 2023 was yet another eventful year for the shipping industry. Initially, the impact of the Russia-Ukraine conflict on global LPG supplies remained relatively limited. The ammonia trade, on the other hand, was significantly affected, with the need for additional ton- miles to replace three million MT of Russian ammonia supplies. However, as the year progressed, trading patterns began to shift, driven by a generally weaker economic outlook and lower European gas prices. The reduction in ammonia imports from far afield eased the situation. On the other hand, seaborne LPG trade continued to experience rapid growth, driven by increased exports from the USA and the Middle East, with China absorbing most of the additional volumes. -6 -4 -2 - 2 4 6 8 10 -10 - 10 20 30 40 50 60 70 80 Source: Grieg 5 Jan 2024 CHANGE IN SEABORNE TRADE 2023 VS 2022 Volume (million tons) Tonne-miles (billion) Volume Tonne-miles Ethane LPG Petchem Ammonia Ammonia is mainly used in the production of fertilizers, synthetic fiber, explosives, and various chemical processes. However, going forward it is expected to play a major role as a hydrogen carrier and as a contributor to decarbonization efforts. Ongoing developments are expanding its applications, with both green and blue production projects in progress to generate low-carbon ammonia. This environmentally friendly ammonia is poised to serve as a shipping fuel and complementary feedstock for coal-fired power stations, reducing overall emissions. 2018 2019 2020 2021 2022 2023 Source: BRS 4 Jan 2024 EUROPEAN AMMONIA IMPORTS (Mn Tonne-Miles) 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 The expected incremental amount of ammonia required to meet global decarbonization targets is dependent on substantial investments in both blue and green ammonia. While green ammonia is produced using renewable energy, blue ammonia requires carbon capture, storage, or re-use (CCUS). Numerous green and blue projects are lined up, but the final investment decision (FID) for construction has only been made in a handful of cases. Global certification systems, which are still under development, are essential to define green and blue ammonia and certify the level of decarbonization. With the prospect of new and large-scale ammonia applications, the shipping industry has seen an increase in newbuild contracts in both midsize and very large gas carrier segments. Thirty-two very large ammonia carriers (VLAC) have been ordered, but ammonia ports around the world must significantly increase storage capacity and berth space to accommodate these vessels, so the new VLACs are initially expected to carry LPG. December 31, 2023 December 31, 2022 PROPORTIONATE CONSOLIDATION - SHIPPING (IN MILLIONS OF USD) Revenue 143.8 141.4 EBITDA 82.3 81.6 Adjusted EBITDA 82.3 81.6 Operating result (EBIT) 34.3 42.7 Consolidated result after tax 3.3 16.8 Vessels and barges (owned and leased) 520.7 518.7 Financial debts 383.3 423.6 ACTIVITY REPORT 25