33396953 2025-01-01 2025-12-31 33396953 2025-01-01 2025-12-31 memberOfBoardIdentifier_executive_board_1 33396953 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_1 33396953 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_2 33396953 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_3 33396953 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_4 33396953 2025-01-01 2025-12-31 1 33396953 2023-01-01 2023-12-31 33396953 2022-01-01 2022-12-31 33396953 2021-01-01 2021-12-31 33396953 2023-12-31 33396953 2022-12-31 33396953 2021-12-31 33396953 2024-01-01 2024-12-31 33396953 2025-12-31 33396953 2024-12-31 33396953 2025-01-01 fsa:ContributedCapitalMember 33396953 2025-01-01 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 33396953 2025-01-01 fsa:ReserveForCurrentValueOfHedgingMember 33396953 2025-01-01 fsa:RetainedEarningsMember 33396953 2025-01-01 33396953 2025-01-01 2025-12-31 fsa:ContributedCapitalMember 33396953 2025-01-01 2025-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 33396953 2025-01-01 2025-12-31 fsa:ReserveForCurrentValueOfHedgingMember 33396953 2025-01-01 2025-12-31 fsa:RetainedEarningsMember 33396953 2025-12-31 fsa:ContributedCapitalMember 33396953 2025-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 33396953 2025-12-31 fsa:ReserveForCurrentValueOfHedgingMember 33396953 2025-12-31 fsa:RetainedEarningsMember 33396953 2025-01-01 2025-12-31 fsa:BoardOfDirectorsMember 33396953 2024-01-01 2024-12-31 fsa:BoardOfDirectorsMember 33396953 2025-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 33396953 2025-01-01 fsa:LeaseholdImprovementsMember 33396953 2025-01-01 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 33396953 2025-01-01 2025-12-31 fsa:LeaseholdImprovementsMember 33396953 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 33396953 2025-12-31 fsa:LeaseholdImprovementsMember 33396953 2025-01-01 fsa:InvestmentsInGroupEnterprisesMember 33396953 2024-01-01 fsa:InvestmentsInGroupEnterprisesMember 33396953 2025-01-01 2025-12-31 fsa:InvestmentsInGroupEnterprisesMember 33396953 2024-01-01 2024-12-31 fsa:InvestmentsInGroupEnterprisesMember 33396953 2025-12-31 fsa:InvestmentsInGroupEnterprisesMember 33396953 2024-12-31 fsa:InvestmentsInGroupEnterprisesMember 33396953 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 33396953 2025-12-31 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 33396953 2025-12-31 1 fsa:SubsidiaryMember 33396953 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_2 fsa:SubsidiaryMember 33396953 2025-12-31 relatedEntityIdentifier_sub_2 fsa:SubsidiaryMember 33396953 2025-12-31 2 fsa:SubsidiaryMember 33396953 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_3 fsa:SubsidiaryMember 33396953 2025-12-31 relatedEntityIdentifier_sub_3 fsa:SubsidiaryMember 33396953 2025-12-31 3 fsa:SubsidiaryMember 33396953 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_4 fsa:SubsidiaryMember 33396953 2025-12-31 relatedEntityIdentifier_sub_4 fsa:SubsidiaryMember 33396953 2025-12-31 4 fsa:SubsidiaryMember 33396953 2025-01-01 fsa:InvestmentsInAssociatesMember 33396953 2024-01-01 fsa:InvestmentsInAssociatesMember 33396953 2025-12-31 fsa:InvestmentsInAssociatesMember 33396953 2024-12-31 fsa:InvestmentsInAssociatesMember 33396953 2025-01-01 2025-12-31 fsa:InvestmentsInAssociatesMember 33396953 2024-01-01 2024-12-31 fsa:InvestmentsInAssociatesMember 33396953 2025-01-01 2025-12-31 relatedEntityIdentifier_ass_1 fsa:AssociateMember 33396953 2025-12-31 relatedEntityIdentifier_ass_1 fsa:AssociateMember 33396953 2025-12-31 1 fsa:AssociateMember iso4217:USD pure xbrli:pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2025-01-01 2024-01-01 2025-12-31 2024-12-31 Regnskabsklasse C, stor virksomhed Revisionspåtegning true 2026-06-26 Morten Rich The Executive Board and Board of Directors have today considered and adopted the Annual Report of Stena Bulk A/S for the financial year 1 January - 31 December 2025. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2025 of the Company and of the results of the Company operations for 2025. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. Hellerup 2026-06-26 Ulf Håkan Bäcklund Managing Director Per Lars Erik Hånell Ulf Håkan Bäcklund Sofia Elisabet Ericsson Chairman Morten Rich To the shareholder of Stena Bulk A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2025 and of the results of the Company’s operations for the financial year 1 January - 31 December 2025 in accordance with the Danish Financial Statements Act.We have audited the Financial Statements of Stena Bulk A/S for the financial year 1 January - 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements 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 in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for Management’s Review.Our opinion on the Financial Statements does not cover Management’s Review, 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 Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, 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 ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. 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 and the additional requirements applicable in Denmark 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 conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement 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.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 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 in preparing the Financial Statements 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 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 to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.Plan and perform the audit to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the Financial Statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion.We communicate with those charged with governance 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. Hellerup 2026-06-26 PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab 33771231 René Otto Poulsen State Authorised Public Accountant mne26718 Stena Bulk A/S Tuborg Boulevard 12,2 2900 Hellerup + 45 88 93 86 00 www.stenabulk.com 33396953 Gentofte Strandvejen 44 2900 Hellerup Seen over a 5-year period, the development of the Company is described by the following financial highlights: 446651000 559766000 341981000 73625000 92410000 -33840000 67139000 86552000 -36388000 6472000 5596000 18867000 71975000 91527000 -16667000 161011000 197006000 101105000 4069000 6143000 35000 0 0 124441000 143795000 52403000 88 87 79 79 38 0.055 0.131 0.165 0.165 0.099 0.031 0.107 0.150 0.155 0.106 0.043 0.247 0.417 0.439 0.360 0.869 0.848 0.773 0.730 0.518 0.100 0.335 0.537 0.933 0.261 Key activitiesThe primary activity of the enterprise is transportation of vegetable oil., chemicals and other oil products by operating and participating in Stena Bulk Products & Chemicals Tanker Pools.Development in the yearThe income statement of the Company for 2025 shows a profit of TUSD 12,036, and at 31 December 2025 the balance sheet of the Company shows an equity of TUSD 126,435.The result after tax is in line with expectations.Management expected higher freight rates to continued from previous years due to the instability caused by the Russia and Ukraine war as well as the regional instability around the AG and evolving conflict around Isreal, US and Iran were also expected to continue throughout 2025. These conditions continued through the whole year, and the estimated expectations for 2025 were therefore achieved.Management currently assesses the Group's opportunities and the need to adapt to current market conditions. This has, among other things, resulted in a strategic choice to decrease the Company’s exposure levels with respect to the charter-in employment of ships, as long-term charter rates also are at record high levels.During the year, the Company has engaged approximately 28 chartered tankers of 40,000 and 60,000 dwt on an ad hoc basis.The Company also has offices in Gothenburg, Dubai, USA and Singapore.Market risksThe Company's freight and pool income is mainly generated by voyages agreed at the market terms on the date concerned. Consequently, there may be significant fluctuations in earnings. The freight rates are to some extent hedged against fluctuations through the conclusion of consecutive freight agreements, loading contracts, COA and time charters.In case of shipping accidents that may result in oil or chemical spillage, significant financial obligations may be imposed on the Company for clean-up work according to the international rules. In order to meet this risk, the widest possible insurance cover has been established, covering damage to the environment and pollution, damage to vessels and cargo, third-party liability and war risk.Fluctuations in the price of bunkers affect the operating profit. Price agreements are entered into concerning future purchases of bunkers when the market conditions are estimated to lead to increasing bunkers prices. It is the Company's objective that the expected bunkers’ consumption of all contracts is covered at the conclusion of the contract.Foreign exchange risksMost of the Company's income is in USD, as are most of the Company's expenses. Therefore, Management has not considered it relevant to hedge commercial currency risks.Interest rate risksThe Company's long-term debts are measured in USD, which also is the functional currency. Therefore, Management has assessed that the Company is not exposed to any interest rate risks.Targets and expectations for the year aheadThe product tank industry has been affected by general instability in the world. Longer tonnage miles, new regulations.The Company expects the freight rates over the coming year to come off in the second half of the year due to the expected new building tonnage as well as the global market adjusting and aligning to the Russia and Ukraine war as well as the regional instability around the AG. In conjunction with the expect lower freight rates and the commercial adjustments made, a profit between USD 8 to 12 million is expected for 2026. There is a risk that revenue will increase as a result of growing the fleet and earnings will decrease as a likely result of higher hire costs. Management is closely following the development and will adjust to the volatile market conditions.The revenue in 2026 is expected to be in the range USD 150 to 300 million due to the fleet size which is marginally changed compared to 2025 and the uncertainties described above.Research and developmentThe Company is not directly engaged in any research and development activities. As part of the Stena Group of companies, the Company has direct access to cutting edge research and development that the Group is at the forefront of.External environmentThe Shipping Company focuses on maintaining and currently increasing the high level of quality, safety and environmental protection as important elements in the operation of the vessels.New stricter rules relating to the construction of vessels, inspection and age limits as well as updated rules relating to security, safety and environment require continuous focus on operating the fleet in accordance with national and international conventions and regulations and on implementing new measures and requirements in good time. The introduction of regulations such as EEXI & CII will drive the need for continuous improvement, and fleet upgrades.As a minimum, all vessels are equipped and certified according to the recommendations of classification companies and the flag states. Daily operations include verification that the chartered tonnage complies with current rules and requirements.Intellectual capital resourcesThe Company delivers transport solutions. By virtue of internal professional competence and the wide range of services, the Company is able, in cooperation with customers and shipping agents, to add value for the customers by refining the qualities of the individual transportation product.By retaining and recruiting new competences, and through cooperation, alliances and training, the Company increases its intellectual capital, which is a significant parameter in the development and bringing to perfection of new services.The Company is committed to objectives, attitudes and strategies which systematically add value and form the basis of the Stena Group's innovative capacity, and in order to stay successful, it is important for the Company to attract and retain well-educated employees who identify with the Company's core values. Therefore, considerable resources are invested in the continued training of the Company's employees.Moreover, the Company actively focuses on the welfare of its employees as well as the understanding of strategy and objectives across the entire organization.Annual job appraisal interviews are held for all employees at which goals and plans for the future as well as career opportunities are discussed and planned.Uncertainty relating to recognition and measurementThere has been no uncertainty regarding recognition and measurement in the Annual Report.Unusual eventsThe financial position at 31 December 2025 of the Company and the results of the activities and cash flows of the Company for the financial year for 2025 have not been affected by any unusual events.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Statement of corporate social responsibilityThe statutory statement is available on the Company's website cf. https://stena.com/app/uploads/2026/04/Stena-AB-Annual-Report-2025.pdf Statement on data ethicsArtificial Intelligence (AI) is a powerful technology with vast potential. Stena Bulk Products & Chemical Pool K/S has an AI governance Policy. This policy enables our businesses to leverage AI tools and at the same time protecting our values while mitigating legal risks. Stena Bulk Products & Chemicals Pool K/S is committed to conduct business with honesty, integrity and high ethical standards in all its operations throughout the world. The purpose of the policy is to ensure that AI technologies are developed and used ethically, securely, and effectively to support our business goals while respecting corporate values, privacy, confidentiality, and legal standards.The Company handles general customer data and employee data. Data is processed in accordance with the GDPR and our privacy and information security policies. 198015000 312540000 130000 152000 185043000 268354000 2195000 3400000 10907000 40938000 3458000 6580000 1235000 933000 6214000 33425000 1717000 1558000 564000 2775000 4774000 3994000 27000 131000 13242000 41621000 1206000 1510000 12036000 40111000 0 12000 8074000 5228000 8074000 5240000 4042000 2496000 3374000 3560000 94000 101000 7510000 6157000 15584000 11397000 1404000 312000 1404000 312000 6490000 4488000 104118000 98824000 761000 906000 71000 116000 10001000 6185000 121441000 110519000 7131000 12946000 129976000 123777000 145560000 135174000 367000 367000 6895000 5534000 -359000 -79000 119532000 108857000 126435000 114679000 2021000 2937000 3430000 4001000 13674000 13557000 19125000 20495000 19125000 20495000 145560000 135174000 367000 5534000 -79000 108857000 114679000 0 0 -280000 0 -280000 0 -750000 0 750000 0 0 2111000 0 9925000 12036000 367000 6895000 -359000 119532000 126435000 Geographical segmentsGlobally198,015312,540198,015312,540Business segmentsTanker shipping198,015312,540198,015312,540 2901000 6189000 257000 196000 73000 71000 227000 124000 3458000 6580000 Including remuneration to the Board of Directors:The board of directors in Stena Bulk A/S consists of employees from other companies within the Stena AB group as well as employees employed within the company. These individuals do not receive separate remuneration for their management duties in the Stena Bulk A/S. Based on the scope of the board's work in the Stena Bulk A/S, the portion of salaries paid by Stena Bulk A/S or other companies in the Stena AB group related to board's work in the Stena Bulk A/S is approx. 10 TUSD and thus based here on the total remuneration to the executive board amounts to 40 TUSD.The Company hires ship personnel from group companies and therefore the Company indirectly has all the obligations attached. Consequently the average number of employees stated above includes personnel hired from the group companies. The cost for hired staff is included in Expenses for raw materials and consumables with USD 5,322k. (Last year USD 5,556k).Remuneration to the Executive Board has not been disclosed in accordance with section 98 B(3) of the Danish Financial Statements Act. 40000 48000 40000 48000 88 87 1235000 933000 1235000 933000 1740000 1558000 14000 -47000 -548000 -1000 1206000 1510000 0 50000000 2111000 4333000 9925000 -14222000 147000 6143000 0 4069000 147000 10212000 135000 915000 12000 1223000 147000 2138000 0 8074000 3-5 years6-7 years 21000 14000 0 7000 21000 21000 2475000 916000 1717000 1559000 -171000 0 4021000 2475000 4042000 2496000 Investments in subsidiaries are specified as follows:AED 50,000USD 14,000DKK 40,000DKK 10,000All subsidiaries are recognised and measured as separate entities. Equity and Net profit/loss for the year are expressed in TUSD.Investments in associates are specified as follows:USD 500.000 Stena Bulk DMC Dubai 1.00 582000 -1000 Stena Bulk LLC Houston 1.00 444000 29000 Stena Bulk Products & Chemicals Pool GP ApS Denmark 1.00 10000 3000 Stena Bulk Products & Chemicals Pool K/S Denmark 1.00 3006000 1686000 500000 500000 500000 500000 3060000 4035000 564000 2775000 750000 3750000 2874000 3060000 3374000 3560000 Golden Stena Weco Pte. Ltd. Singapore 0.50 6749000 1129000 Derivative financial instruments contracts in the form of bunker swaps have been concluded. At the balance sheet date, the fair value of derivative financial instruments amounts to USD -359. Prepayments consist of prepaid expenses concerning hire, insurance and commisions. Rental and lease obligationsLease obligations under operating leases. Total future lease payments:Within 1 year107,70083,076Between 1 and 5 years120,078129,805After 5 years4,56330,868232,341243,749 Controlling interestStena ABUltimate parent companyTransactionsThe Company has chosen only to disclose transactions which have not been made on an arm’s length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act.There have been no transactions with the Supervisory board, the Executive Board, senior officers, significant shareholders, group enterprises or other related parties, which have not been conducted at arm's length terms.The Group Annual Report of Stena AB may be obtained at the following address:Stena ABMasthuggskajen 19405-19 GöteborgSweden Consolidated Financial StatementsThe company is part of the consolidated annual report of the parent company.Stena ABGöteborg, Sweden No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date The Annual Report of Stena Bulk A/S for 2025 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C.The accounting policies applied remain unchanged from last year.The Financial Statements for 2025 are presented in TUSD.Fee to auditorsWith reference to section 96(3) of the Danish Financial Statements Act the fee to the auditors appointed at the general meeting has not been disclosed. With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2025 of , the Company has not prepared consolidated financial statements. With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of Stena AB, the Company has not prepared a cash flow statement. Recognition and measurementRevenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Leases in terms of which the Company assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Company.The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement.All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Translation policiesTransactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement.Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement.Fixed assets acquired in foreign currencies are measured at the transaction date rates. Derivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as ”Other receivables” and ”Other payables”, respectively.Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualify as hedge accounting. Hedge accountingChanges in the fair values of financial instruments that are designated and qualify as fair value hedges of a recognised asset or a recognised liability are recognised in the income statement as are any changes in the fair value of the hedged asset or the hedged liability related to the hedged risk.Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of expected future transactions are recognised in retained earnings under equity as regards the effective portion of the hedge. The ineffective portion is recognised in the income statement. If the hedged transaction results in an asset or a liability, the amount deferred in equity is transferred from equity and recognised in the cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense, the amount deferred in equity is transferred from equity to the income statement in the period in which the hedged transaction is recognised. The amount is recognised in the same item as the hedged transaction.Changes in the fair values of financial instruments that are designated and qualify as hedges of net investments in independent foreign subsidiaries or associates are recognised directly in equity as regards the effective portion of the hedge, whereas the ineffective portion is recognised in the income statement. RevenueInformation on business segments and geographical segments based on the Company´s risks and returns and its internal financial reporting system. Business segments are regarded as the primary segments.Revenue that includes freight and charter income etc., are recognized in the Income Statement, when the voyage is completed. This is considered to be the case when the voyage is completed before the end of the financial year. Ongoing voyages are recognized as the voyage are executed, then the revenue are equal to the activity in the financial year. Expenses for raw materials and consumablesExpenses for vessels comprise the raw materials and consumables consumed to achieve revenue for the year. Other external expensesOther external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc. Staff expenses comprise wages and salaries as well as payroll expenses. Amortisation, depreciation and impairment lossesDepreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and expensesOther operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of intangible assets and property, plant and equipment. Income from investments in subsidiaries and associatesThe items “Income from investments in subsidiaries” and “Income from investments in associates” in the income statement include the proportionate share of the profit for the year. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax on profit/loss for the yearTax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.The Company is jointly taxed with wholly owned Danish and foreign subsidiaries. The tax effect of the joint taxation is allocated to enterprises in proportion to their taxable incomes. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses.Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:Other fixtures and fittings, tools and equipment3-5 years Vessels6-7 years The fixed assets’ residual values are determined at nil.Depreciation period and residual value are reassessed annually. Impairment of fixed assetsThe carrying amounts of intangible assets and property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation.If so, the asset is written down to its lower recoverable amount. Investments in subsidiaries and associatesInvestments in subsidiaries and associates are recognised and measured under the equity method.The items “Investments in subsidiaries” and “Investments in associates” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises.The total net revaluation of investments in subsidiaries and associates is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries and the associates.Subsidiaries and associates with a negative net asset value are recognised at USD 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. Other fixed asset investments consist of deposit. InventoriesInventories consist of bunker, and are measured at the lower of cost under the FIFO method and net realisable value. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Provisions for bad debts are determined on the basis of an individual assessment of each receivable. PrepaymentsPrepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest. Deferred tax assets and liabilitiesDeferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity.DividendsDividend distribution proposed by Management for the year is disclosed as a separate equity item. Current tax receivables and liabilitiesCurrent tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expensesFinancial debtsDebts are measured at amortised cost, substantially corresponding to nominal value.Deferred incomeDeferred income comprises payments received in respect of income in subsequent years. Financial HighlightsExplanation of financial ratiosGross marginGross profit x 100 / RevenueProfit marginProfit/loss of primary operations x 100 / RevenueReturn on assetsProfit/loss of primary operations x 100 / Total assets at year endSolvency ratioEquity at year end x 100 / Total assets at year endReturn on equityNet profit for the year x 100 / Average equity