S D Standard ETC : Q2 Financial Report 30.06.2023

S.D. STANDARD ETC PLC

(FORMER S.D. STANDARD DRILLING PLC) SECOND QUARTER REPORT 2023

CONTENTS

STATEMENT OF THE MEMBERS OF THE BOARD OF DIRECTORS AND OTHER RESPONSIBLE
PERSONS OF THE COMPANY FOR THE INTERIM CONDENSED FINANCIAL STATEMENTS	2
SECOND QUARTER MANAGEMENT REPORT	3
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME	7
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION	8
INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY	9
INTERIM CONDENSED STATEMENT OF CASH FLOWS	10
NOTES TO THE FINANCIAL INFORMATION	11

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STATEMENT OF THE MEMBERS OF THE BOARD OF DIRECTORS AND OTHER RESPONSIBLE PERSONS OF THE COMPANY FOR THE INTERIM CONDENSED FINANCIAL STATEMENTS

In accordance with Article 10 sections (3) (c) and (7) of the Transparency Requirements (Securities for Trading on Regulated Markets) Law of 2007 and 2009 (''Law'') we, the members of the Board of Directors and other responsible persons for the drafting of the interim condensed financial statements of S.D. Standard ETC Plc (the "Company"), for the six months ended 30 June 2023 we confirm that, to the best of our knowledge:

1. The interim condensed financial statements of the Company for the six months ended 30 June 2023 which are presented on pages 7 to 17:
2. 1. were prepared in accordance with International Financial Reporting Standards IAS 34 "Interim Financial Reporting", as adopted by the European Union in accordance with provisions of Article 10, section (4) of the Law, and
   2. give a true and fair view of the assets and liabilities, the financial position and the profit or losses of the Company, and the business that are included in the financial statements as a total, and
3. The Interim Management Report provides a fair overview of the information required as per section 6 of article 10 of Law 190(I)/2007.

Limassol, 9 August 2023

Martin Nes	Konstantinos Pantelidis	George Crystallis
Chairman	Independent Director	Independent Director

Christos Neokleous	Evangelia Panagide
Chief Financial Officer	General Manager

S.D. Standard ETC Plc - Second Quarter Report 2023

2

Second Quarter Management Report 2023

Selected Financial Information

	Three Months Ended		Six Months Ended
	2023 Q2	2022 Q2		2023 Q2	2022 Q2
(Amounts in USD 000)	Unaudited	Unaudited		Unaudited	Unaudited
Operating (loss) / profit	(14 411)	15 634	(13 108)	23 862
(Loss) / profit for the period before tax	(14 432)	15 607	(13 137)	23 827
Total comprehensive (loss) / income for the period	(14 433)	15 589	(13 172)	23 780

(*) Analytical income statement is presented on page 7 of the second quarter report.

Presentation of Interim Condensed Financial Statements

These interim condensed financial statements for the second quarter of the year 2023 are prepared and presented on a standalone basis, since the Company is an investment entity and shall not consolidate its subsidiaries.

The Company measures its investment in subsidiary Standard Supply AS and associate Dolphin Drilling AS at fair value through profit or loss. Consequently, the Company's investments in Standard Supply AS and Dolphin Drilling AS are valued based on the traded share price on Euronext Growth Oslo respectively as of 30 June 2023.

With regards to the subsidiary Standard Invest AS which is not an investment entity and its main purpose is to provide services relating to the investment activity of the Company, the management of the Company decided not to consolidate this subsidiary since the effect of its results for the second quarter of the year 2023 are considered immaterial.

Highlights Second Quarter

1. In June 2023, the associate company Dolphin Drilling AS (hereinafter "Dolphin") successfully completed a private placement raising USD 60 million. The Company has acquired additional shares for USD 6,9 million.
2. In Q2 2023, the Company recognized an unrealized loss of USD 16,4 million from the revaluation of its investments in Standard Supply AS and Dolphin Drilling AS at fair value. The result is impacted by an unrealized loss of USD 17,8 million recognized on the shares held in Dolphin Drilling AS due to the private placement in late June. The fair value of these investments as of 30 June 2023 was USD 78,8 million.
3. Moreover, in Q2 2023 the Company recognised a gain from the revaluation of other financial assets held for trading of USD 527 thousands. The fair value of the financial assets held for trading as of 30 June 2023 was USD 9,6 million.

S.D. Standard ETC Plc - Second Quarter Report 2023

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Second Quarter Management Report 2023 (Continued)

Selected Financial Information

Alternative Performance Measures

The Company is an investment entity and shall not consolidate its subsidiaries. The Company measures its investment in subsidiary Standard Supply AS and associates at fair value through profit or loss.

In reporting financial information, the Company presents alternative performance measures, "APMs", which are not defined or specified under the requirements of IFRS. The Company believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the subsidiary and associate companies.

More information on the APMs used in the Q2 2023 Report, their definition and calculation are provided below, as well as a reference to the respective pages of Q2 2023 and of the presentation which is released together with this interim report on the Company's website:

APM	Definition and Calculation	Reference
	Income from operating activities subtracting	Q2 2023 Report - Interim
Operating Profit / Loss	administration expenses as presented in the	Condensed Statement of
	income statement	Comprehensive Income on
		page 7
Profit / Loss before tax	Operating profit less finance costs
		Presentation Highlights on
Profit / Loss after tax	Operating profit less finance costs and income tax	page 6 and Income Statement
		on page 11

Subsequent Events

There have been no material subsequent events that have an impact on these interim condensed financial statements.

S.D. Standard ETC Plc - Second Quarter Report 2023

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