Atlantic Navigation Singapore : Annual Report

ANNUAL REPORT 2022

Staying Prepared to Overcome

RESOLVE I RESILIENCE

01 Corporate Profile

02 Chairman's Statement

04 CEO's Statement

07 Board of Directors

1. Executive Officers
2. Group Financial Highlights
3. Vessel Fleet List
4. Significant Development Milestones

1. HSE Description
2. Group Structure
3. Corporate Governance Report

42 Directors' Statement

46 Independent Auditor's Report

50 Consolidated Statement of Comprehensive Income

1. Balance Sheets
2. Statements of Changes in Equity

1. Consolidated Cash Flow Statement
2. Notes to the Financial Statements

112 Statistics of Shareholdings

114 Notice of Annual General Meeting Proxy Form

Corporate Information

This annual report has been reviewed by the Company's sponsor ("Sponsor"), SAC Capital Private Limited. This annual report has not been examined or approved by the Singapore Exchange Securities Trading Limited ("SGX-ST") and the SGX-ST assumes no responsibility for the contents of this annual report, including the correctness of any of the statements or opinions made, or reports contained in this annual report.

The contact person for the Sponsor is Ms Lee Khai Yinn (Tel: [phone]) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.

Atlantic Navigation Holdings

(Singapore) Limited (the "Company" and together with its subsidiaries, the "Group") is listed on the Catalist board of the Singapore Exchange Securities Trading Limited (the "SGX-ST").

Our Group's business activities in the United Arab Emirates ("UAE") commenced since 1997 to provide ship repair, fabrication and other marine services to ship owners in the Middle East region. Our Group has since evolved from a ship repair, fabrication and other marine services provider to a ship owner and integrated offshore service provider.

As an integrated offshore service provider, we operate mainly out of our base in UAE, serving primarily customers in the Middle East region. We manage our operations mainly through our subsidiaries, namely Atlantic Maritime Group FZE (based in Hamriyah Free Zone, Sharjah, UAE) and Atlantic Ship Management LLC (based in Abu Dhabi, UAE).

We have two principal operating divisions, namely Marine Logistics Services ("MLS") and Ship Repair, Fabrication and Other Marine Services ("SRM"), which are vertically integrated to provide a comprehensive solution to our customers.

CORPORATE PROFILE

Hamriyah Free Zone as well as Dubai Maritime City with access to dry-docking facilities.

PROJECT WORK

We also work with other companies in the offshore oil and gas business to bid for projects that leverage off the strengths and core competencies of the partners' businesses.

A project with contract value of US$45.2 million involving the decommissioning of offshore and onshore facilities work execution was successfully concluded in first quarter of 2020. The Group has successfully completed another project contract in December 2021 and is now on an on-going basis being involved in the chartering of vessels complemented with substantive project management including managing the outsourcing of services (i.e. operating of Remote Operated Vehicle, survey equipment, gangway) cumulating to a packaged service to an international Engineering, Procurement and Construction ("EPC") contractor.

The Group will continue to source for opportunities to establish itself as a project manager providing integrated value-added

services to generate revenue with potentially higher margins.

OUR CUSTOMERS

Over the years, our dedicated services have enabled us to establish strong and stable relationships with various leading oil companies, contractors, survey companies, ship owners, ship yards and charterers in the region.

MARINE LOGISTICS SERVICES

Our MLS division provides ship chartering, technical and chartering project management, principally for the offshore oil and gas as well as marine construction industries predominantly in the Middle East region.

Our marine logistics services are supported by our owned fleet of 18 vessels (including 1 vessel being under liquidation process) which comprise of 2 lift-boats (a.k.a. jack-up barges), 1 mid-sized DP2 PSV, 7 various AHTSs (including one being DP2, 4 being DP1 and 2 being shallow draft), 4 maintenance utility vessels, 1 work utility vessel, 1 AHT with Azimuth Stern Drive, 1 crew boat and 1 recently acquired DSV. Please see page 11 for a brief summary of our fleet and the vessel specifications.

In addition to the vessels from our owned and managed fleet, we also cross-charter vessels from third parties to service contracts which are secured to serve the specific needs of our customers.

In relation to the oil and gas industry, the Group is diversified to provide services supporting across different phases of oil-fieldlife-cycle, i.e. the exploration, construction and development, maintenance, production and post-production of offshore oil and gas.

SHIP REPAIR, FABRICATION AND OTHER MARINE SERVICES

Our SRM division provides afloat and drydock repair and maintenance services supported by the workshop facilities at

We are a marine support and service provider to various Middle East National Oil Companies ("MENOCs") and oil majors such as Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), its marine operating companies such as Bunduq Oil Company, Qatar Gas and Qatar Petroleum and independent oil companies such as Masirah Oil, as well as international offshore EPC contractors including Saipem, McDermott, Subsea 7 and NPCC.

Atlantic Navigation Holdings (Singapore) Limited Annual Report 2022

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CHAIRMAN'S STATEMENT

Mr Kum Soh Har, Michael Non-ExecutiveNon-Independent Chairman

DEAR SHAREHOLDERS,

On behalf of the Board of Directors, I present you the annual report for the financial year ended 31 December ("FY") 2022.

We saw a year of strong recovery in FY2022 on the back of the world's recovery from the COVID-19 pandemic which appears to have come to an end. This has led to an increase in demand for our services by the national oil companies. Coupled with the limited supply of vessels in our segment, our Group revenue rebounded strongly by 48.0% in FY2022 (US$64.9 million) as compared to FY2021 (US$43.8 million) with an improvement in fleet utilisation from 74% in FY2021 to 91% in FY2022.

The Group registered commendable increases in gross profit (US$22.8 million in FY2022 vs US$6.0 million in FY2021) as well as cash flow from operations (US$21.8 million in FY2022 vs US$6.5 million in FY2021), representing strong increase

in the respective margins which resulted in the robust turnaround in net profit after tax of US$11.2 million in FY2022 compared to a net loss of US$13.2 million in FY2021.

Looking ahead, I remain cautiously optimistic that the offshore oil and gas marine logistics services are on a path to recovery. With oil prices hovering at about US$85 per barrel as we speak, the Middle East National Oil Companies continue to catch up on under-investment in the previous years, supported however by a limited supply of new vessels for on-going and future offshore oil and gas field operations. Notwithstanding these favourable market conditions, we remain watchful of other challenges and uncertainties remain for FY2023 mainly due to the on-goingRussia-Ukraine conflict.

On behalf of the Board, I would like to express my immense gratitude to our bankers for their continued trust and support for the growth of the Group, underpinned by our fleet

02	Atlantic Navigation Holdings (Singapore) Limited Annual Report 2022

CHAIRMAN'S STATEMENT

expansion. We are also grateful to our customers, business partners and suppliers for their unwavering support, enabling the smooth execution of our contracts and projects.

Last but not the least, I thank our management, staff and all shareholders for their continual patience and trust placed in the Group. The Group will continue to remain vigilant even as it heads towards stable growth and sustained operating performance and cash flows, and ultimately enhancing shareholder value in the years ahead.

Yours faithfully,

Mr Kum Soh Har, Michael

Non-ExecutiveNon-Independent Chairman

Atlantic Navigation Holdings (Singapore) Limited Annual Report 2022

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