Lauritzen Bulkers A/S - Annual Report for 2025


Contents


Management’s statement and Auditor’s report
Management’s statement		1
Independent Auditor’s report		2
Management’s review
Company information		5
Financial Highlights		6
Management's review		7
Financial Statements
Income statement 1 January - 31 December		20
Balance sheet 31 December		21
Statement of changes in equity		23
Notes to the Financial Statements		24


Management’s statement

The Executive Board and Board of Directors have today considered and adopted the Annual Report of Lauritzen Bulkers 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.

Copenhagen

, 24 February 2026

Executive Board

Martin Kunio Sato

Board of Directors

Kristian Verner Mørch

Tommy Thomsen

Peter Poul Lauritzen Bay

Chairman

Martyn Richard Wade


Independent Auditor’s report

To the shareholder of Lauritzen Bulkers 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 Lauritzen Bulkers 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.

Statement on Management’s Review

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’s responsibilities for the Financial Statements

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.


Independent Auditor’s report

Auditor’s responsibilities for the audit of the Financial Statements

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.


Independent Auditor’s report

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 , 24 February 2026

PricewaterhouseCoopers

Statsautoriseret Revisionspartnerselskab

CVR No 33 77 12 31

Bo Schou-Jacobsen		Alexander Oliver Duschek
State Authorised Public Accountant		State Authorised Public Accountant
mne28703		mne47774


Company information

The Company

Lauritzen Bulkers A/S

Tuborg Havnevej 15

DK- 2900 Hellerup

CVR No: 55 70 01 17

Financial period: 1 January - 31 December

Municipality of reg. office: Hellerup

Board of Directors

Kristian Verner Mørch, chairman

Tommy Thomsen

Peter Poul Lauritzen Bay

Martyn Richard Wade

Executive Board

Martin Kunio Sato

Auditors

PricewaterhouseCoopers

Statsautoriseret Revisionspartnerselskab

Strandvejen 44

DK- 2900 Hellerup


Financial Highlights

6

Seen over a 5-year period, the development of the Company is described by the following financial highlights:

(TUSD)

2025

2024

2023

2022

2021

Key figures

Profit/loss

Revenue

601,343

577,018

601,893

929,952

836,588

Operating profit/loss

351

9,419

-9,475

79,068

98,937

Profit/loss before financial income and expenses

1,751

28,447

12,146

101,524

98,937

Net financials

-5,246

-8,631

-8,458

-32,842

92

Net profit/loss for the year

-5,581

17,901

4,044

77,331

95,959

Balance sheet

Balance sheet total

284,593

257,355

342,997

433,845

260,350

Investment in property, plant and equipment

60,350

88,648

165,211

183,451

13,768

Equity

126,854

119,043

96,754

190,710

128,850


Number of employees		69		66		63		58		60

Ratios

Profit margin

0.3 %

4.9 %

2.0 %

10.9 %

11.8 %

Return on assets

0.6 %

11.1 %

3.5 %

23.4 %

38.0 %

Solvency ratio

44.6 %

46.3 %

28.2 %

44.0 %

49.5 %

Return on equity

- 4.5 %

16.6 %

2.8 %

48.4 %

120.2 %

Comparative figures have not been adjusted in respect of the merger with accounting effect as of 1 January 2022.


Management's review

STATEMENT FROM CEO AND CHAIRMAN

2025 was a turbulent year. Rapid, unforeseen changes were the overarching theme for global affairs, the dry bulk industry, and Lauritzen Bulkers, a dedicated owner and operator of geared dry bulk vessels. The net result of USD -5.6 million reflects these challenging circumstances.

Nevertheless, across a range of parameters, we delivered a satisfactory and balanced result, supported by good commercial and operational performance and strong customer and stakeholder support.

The dry bulk market in the first half of 2025 was weak on volumes and freight rates, and the outlook towards the second half of the year was significantly influenced by the increased political uncertainty related to tariffs, trade flows, and demand. The actual demand and freight rates for the second half of 2025 contrasted with the pessimistic prospects and reached strong rate levels, well above historical averages.

In this volatile, unpredictable environment, we managed to grow our business throughout the year across regions and segments. In total, our vessel days reached 36,520, up from 31,900 in 2024 – the highest annual activity level on record for the Lauritzen Bulkers Group.

At the same time, the average margins achieved in 2025 were USD/day 2,065, compared to USD/day 1,454 in 2024 – a strong performance based primarily on our short-term book trading and operator activities, and our solid operational execution.

Also in 2025, we acquired and integrated new parcelling activities in the Americas. This activity was severely affected by sudden tariff changes, leading to temporarily lower-than-expected activity on dedicated trade lanes.

In the regulatory environment, we observed sudden reversals of a previously clear decarbonisation path ahead of us. But despite the delay in reaching an international agreement and implementing global rules for carbon-emission-reduction incentives, we progressed with our projects and prepared to take delivery of three dual-fuel, methanol-enabled Kamsarmax bulk carriers in 2026 and 2027.

Excluding one-off factors and other non-operational circumstances influencing our financial net results of 2025, our business continues to grow and generate reasonable returns in an increasingly volatile global environment.

In 2026, we will continue our ambitious drive to grow our business and deliver sustainable results over the business cycles.

Martin Sato
CEO

Kristian Mørch
Chairman of the Board of Directors


Management's review

RESULTS AND HIGHLIGHTS

Lauritzen Bulkers’ net result for 2025 was USD -5.6 million compared to USD 17.9 million in 2024. The result included profit from the sale of a partly owned vessel in a joint venture of USD 3.5 million (2024: USD 17.6m), and unrealised value adjustments of freight derivatives and fuel hedging instruments of USD -2m (2024: USD 14m), recognised in revenue and running costs, respectively.

The result was negatively impacted by a one-off tax adjustment and a write-down on goodwill related to the acquisition of parcelling activities, where established trades were reduced due to US tariffs implemented in 2025.

In a year of multiple challenges, Lauritzen Bulkers delivered positive and improved results, as measured by the net result before unrealised hedging from its core trading and operator business, and expanded its activity volume while increasing the average margin.

At year-end 2025, shareholders’ equity amounted to USD 127 million (USD 119 million at year-end 2024).
In connection with a group restructure, the equity was impacted by a group contribution of USD 13.4m of the company Lauritzen NexGen Shipping A/S. The subsidiary owns three low-emission Kamsarmax new buildings for delivery in 2026/2027. The subsidiary had a minor impact on the 2025 results.

Cash and cash equivalents stood at USD 52.8 (USD 54.4 million at year-end 2024).

The result for 2025 was lower than the initially expected result in the 2024 annual report. When disregarding vessel gains, write-down of goodwill, and unrealised value adjustments of hedging instruments, the result for 2025 shows an improvement compared to 2024.

Business model
Lauritzen Bulkers’ business model remained, during 2025, centred on being a short-term freight trader, vessel operator, and active owner in global dry bulk shipping. Our core activity is in the handysize market segment, where we handle the transportation of a variety of cargoes, primarily agricultural products and construction materials. In 2025, the position within the ultramax segment increased as part of the long-term fleet and freight trading activities. Due to the new subsidiary, Lauritzen NexGen Shipping A/S, Lauritzen Bulkers will within 1-2 years also be present in the Kamsarmax segment.

More than 250 clients were serviced during 2025, and the top ten accounted for less than 20% of Lauritzen Bulkers’ revenue in 2025.

Strategy update
In 2025, the ongoing optimisation of systems and processes further enhanced profitability while mitigating market and operational risk. The short-term trading model demonstrated its effectiveness, resulting in improved margins per vessel day, supported by our long-term and asset-backed positions.

Our efforts in 2025 to pursue growth focused on strengthening relationships with customers, suppliers, and partners.

In 2026, the long-term strategy will be revisited, with a special focus on how to further grow the fleet while balancing risk.

Business performance
Lauritzen Bulkers, including the subsidiary in Singapore, performed 36,520 ship days in 2025 (in 2024, 31,900 ship days), corresponding to an average activity of 100 vessels with an average margin (contribution margin after vessel hire or OPEX) of USD/day 2,065 (in 2024, USD/day 1,454).


Management's review

During 2025, the shares in a 50/50 owned joint venture owning a vessel were sold. During the year, nine vessels were delivered on long-term charter, recognised in the financial statement as right-of-use assets, of which three were long-term chartered newbuildings with purchase options. Three long-term chartered vessels were redelivered.

At year-end, our fleet remained unchanged and included six fully owned vessels. The value of the owned vessels was estimated at USD 132 million by two independent shipbrokers in December 2025.

AFTER YEAR-END EVENTS

No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.

OUTLOOK FOR 2026

Lauritzen Bulkers expects a net result of USD 5-15 million in 2026. The expected net result is sensitive to changes in dry bulk market rates, currency, and interest rate fluctuations. Effects from any further sales of assets may also impact the result.

RISK MANAGEMENT

Our approach to risk management remained unchanged in 2025 compared to 2024. For Lauritzen Bulkers, it is a strategic choice to dedicate substantial resources and manpower to risk management. Management and the Board of Directors receive frequent, granular reporting on actual risk exposure and utilisation of mandates. On an annual basis, an Enterprise Risk Management review is conducted. Findings and recommended actions are discussed and approved by the Board of Directors.

Commercial risk
Our business generates economic value by accepting commercial risk. Our primary focus is on taking short- and medium-term positions and exposures by accepting commercial commitments to own and charter-in tonnage, carry cargo, or, similarly, by using derivatives (FFAs). Volatility in market levels, base margins, and vessel values, as well as geographical imbalances in demand and supply, are the underlying factors of commercial risk.

Commercial risk management is supported via our portfolio management system, which tracks the forward value of cargoes, positions, hedging, and realised values. The system allows us to constantly monitor how our business operates within the assigned risk mandates.

Operational risk
The realisation of the economic value of the accepted risk depends on our ability to execute the commitment and remain abreast of the operational risks involved: safe loading of cargo, proper carriage at sea, and safe delivery in port.

Safety is a constant top priority for us, first and foremost because of the human consequences of injuries or casualties. Regardless of whether we are vessel owners or operators, we have a strong focus on safety surrounding the carriage of cargoes. Proper carriage is important to ensure the safety of crews, vessels, and cargoes. Our risk tolerance related to operational issues, such as fleet management and safety, is zero.

Safety procedures are implemented to ensure compliance with the highest industry standards. We provide vessel masters with cargo documentation and guidance on how to treat the cargo while on board. We ensure a high level of know-how among our operators through regular training sessions and the employment of port captains specialising in the safe handling of cargoes. Reviewing and learning from past incidents to work constantly for even better risk mitigation is an important element of our approach.


Management's review

The management of operational risk also considers risk related to piracy and entry into or transit through high-risk areas. Identifying and managing such risks is paramount to us. We follow the BMP5 recommendations with regard to safety and prevention of piracy, and before entering high-risk areas, separate risk evaluations are undertaken together with external experts to establish necessary precautions. These guidelines are integrated into our Security Policy for ships in high-risk areas. We experienced no piracy attacks in 2025.

Our business is highly dependent on stable IT systems and electronic communication. We address IT and cyber risk through the implementation of industry best practices and check these against the Critical Security Controls (CIS) framework. Vulnerability checks are conducted regularly. Internal cybersecurity training sessions occur regularly to increase the awareness and readiness against potential cyberattacks.

Risk related to the impact of environmental regulations
The evolving regulatory agenda designed to incentivise the shipping industry to transition to green shipping adds complexity to our risk management. Failing to address these requirements has severe economic consequences and can eventually hamper our business opportunities and profitability. We support the green shipping ambition, and we deploy substantial resources across our organisation to ensure awareness and compliance.

Sanctions risk
Violation of sanctions can likewise have severe consequences for our business, and the risk of violation is unacceptable. Our sanction risk management strategy is comprised of pre-fixture control to ensure that companies with any ties to targeted countries are screened every time new business is entered into, and post-fixture monitoring of clients’ sanction status until the employment is completed. Our framework to mitigate sanction risk also includes monitoring of tonnage by way of vessel movement screening tools.

Credit risk
Our framework for managing the sanction risk of clients is also linked to our assessment of credit risk related to our clients. Credit risk related to our exposure with clients is managed by systematic identification, assessment, and monitoring of clients’ creditworthiness. A maximum credit risk limit is set for each counterparty.

Bunker risk and emission cost risk
Cargo contract earnings can be heavily influenced by price volatility on the fuel (bunkers), and we secure the cost of the bunker consumption when a forward commitment is accepted, or if a bunker adjustment factor is not included in the cargo contract. A similar approach is applied to our management of emission cost risk and exposure in relation to emissions during voyages in the EU.

Financial risk
Management of financial risk concerns liquidity risk (payment obligations), interest rate risk, and currency risk.

Our liquidity risk management entails the daily projection of cash flow movements, supplemented with forecasts on a weekly and a monthly horizon, as well as for multi-year periods for planning purposes.

The owned fleet is financed in a secured loan facility with maturity in 2027. Interest on the loan facility is based on a floating rate. The interest rate risk on the floating rate is partially hedged using interest rate swaps.

Currency risk related to cash flows in non-USD currencies is partially hedged to USD based on an expected flow on a rolling 12-month basis.


Management's review

RESPONSIBILITY

The business model of Lauritzen Bulkers is described in the Results and Highlights section, cf. paragraph “Business model”, on page 8.

In 2025, the regulatory landscape for sustainability reporting established by the EU underwent significant changes, and as a consequence, Lauritzen Bulkers does not fall within the scope of the Corporate Sustainability Reporting Directive (CSRD) going forward.

While we remain supportive of strengthened sustainability regulations, this development provided an opportunity to refocus our efforts. We continue to prioritise transparency where it creates value and are currently assessing the potential for reporting in accordance with the Voluntary Sustainability Reporting Standards for SMEs (VSME).

As part of our preparations for potential reporting under the CSRD, we conducted a Double Materiality Assessment (DMA) to identify our material sustainability topics and the associated impacts, risks, and opportunities. This process incorporated insights from both internal and external stakeholders through interviews with employees and relevant industry organisations, ensuring a comprehensive understanding of our sustainability context. To further strengthen our management of sustainability-related risks, we have integrated climate-related risks into our enterprise risk map. This ensures that climate considerations form an integral part of our overall risk management framework.

Building on the material sustainability matters, the related impacts, risks, and opportunities, as well as the identified climate risks, we developed a dedicated ESG strategy in 2025. The strategy, which was approved by the Board of Directors, sets out ambition levels, targets, and key initiatives. Grounded in the results of the DMA, the strategy focuses on addressing and reducing negative impacts across our operations and heightening our resilience toward sustainability issues.

In 2025, we also initiated work on our transition plan to support the delivery of these strategic targets. In terms of decarbonisation, our emissions-reduction target aligns with the International Maritime Organisation’s (IMO) trajectory, aiming for a 40% reduction in carbon intensity by 2030. The IMO’s target is designed to align with the objectives of the Paris Agreement.

Exposure to coal and oil-related activities
Lauritzen Bulkers’ fleet operations remain dependent on conventional fossil fuels, which continue to represent the primary energy source for our vessels. As part of this dependency, our operating costs are influenced by fluctuations in global fuel prices. As part of our transition efforts, we initiated biofuel testing in collaboration with our technical managers in 2024, enabling us to build internal knowledge on safe handling, bunkering procedures, and operational performance.

This knowledge helped us in 2025, when we burned a total of around 470mt of biofuel on board several vessels. Although this represents a modest share of our total fuel consumption, it reflects a positive upward trend in the adoption of lower‑carbon fuels. For our owned vessels, we have adopted a principle of using biofuel whenever operationally and commercially feasible.

Our vessels transport a diverse range of cargoes. In 2025, coal‑related products accounted for approximately 11% of total cargoes carried. We recognise that these activities are linked to fossil‑fuel value chains and therefore constitute part of our exposure to coal, oil, and gas-related business activities.

Policies
Lauritzen Bulkers has established a set of policies designed to address the impacts and risks identified. We maintain policies covering Environment and Climate, Human Resources, Gifts, Entertainment and Hospitality, Whistleblowers, as well as Sanctions and Compliance. These policies form the foundation for the behaviour and decision making of employees across the organisation. All policies are reviewed annually by the Board of Directors.


Management's review

In recent years, we have further strengthened our policy framework through the introduction of a Code of Conduct – Corporate Responsibility Policy and a Supplier Code of Conduct. These support our efforts to promote responsible business practices throughout our value chain and ensure alignment with our expectations on human rights, environmental protection, anti corruption, and ethical conduct.

Environment
In 2025, we continued to strengthen our efforts to comply with environmental and climate-related regulations and to reduce the negative impacts associated with the shipping industry. In 2026, our work will reflect our ongoing commitment to operating responsibly and contributing to a more sustainable maritime environment.

Climate change mitigation
Lauritzen Bulkers recognises its contribution to greenhouse gas emissions due to the combustion of fossil fuels on board the vessels.

During our enterprise risk management process, we have identified relevant climate-related risks, which are outlined below:

Climate physical risks
- Acute risk: Increasingly frequent extreme weather events, which affect routing as well as port operations.
- Chronic risks: Long-term shifts in climate patterns such as rising water levels or increasing temperatures, which affect port accessibility as well as operations.

Climate transition risks
- Policy and legal: Risk of non-compliance with new regulations or changes to existing ones.
- Technology: Technological advances and costs associated with obtaining low-carbon technology.
- Market and reputation: Risk of inability to meet requirements from customers or change in their demand.

Lauritzen Bulkers has adopted the IMO’s decarbonisation targets as the foundation for our climate ambitions. In line with this, our climate focus is directed towards reducing carbon intensity rather than absolute emissions, reflecting the nature of global shipping activity and transport demand.

Consistent with the IMO’s objectives, Lauritzen Bulkers aims to achieve a reduction of at least 40% in CO₂ emissions per transport work by 2030. We further commit to contributing to the industry’s long term trajectory toward net zero greenhouse gas emissions by 2050.

To support the climate targets set out in our ESG strategy, Lauritzen Bulkers has initiated the development of a transition plan. The plan outlines the key levers and actions required to progress toward our decarbonisation ambitions. At this stage, two primary decarbonisation levers have been identified, namely energy efficiency and energy harvesting.

Energy efficiency covers operational and technical improvements across our fleet, including enhanced weather routing, speed optimisation, and selected retrofitting initiatives. Energy harvesting focuses primarily on fuel switching, such as the use of biofuels. These levers represent the short and medium term measures available with current technologies, while actions required for long term decarbonisation will depend on further technological and regulatory developments within the maritime industry.

In 2025, we obtained Environmental Ship Index (ESI) scores for our owned vessels. The ESI recognises ships that perform beyond existing IMO air emission standards, supporting greater transparency and incentivising continuous improvement.

Moreover, we have installed onboard water-filtration stations and provided the crew with reusable steel water bottles, reducing the use of plastic bottles significantly.


Management's review

EEOI
In 2025, we reduced our Energy Efficiency Operating Indicator (EEOI) from 12.7 in 2024 to 10.5 across all vessel types. Looking specifically at Handysize, we reduced our EEOI by 9% from 11.5 in 2024 to 10.4 in 2025. This improvement is primarily driven by the continued renewal of our fleet, our activity expansion in the Ultramax segment, and operational speed reductions following the implementation of the EEXI framework. The EEOI is measured in grams of CO₂ per tonne mile.

GHG accounting
In 2025, we experienced an increase in total Scope 1 emissions due to an increase in activity and hence higher bunker consumption. Scope 1 entails the emissions from the combustion of bunkers on board our controlled fleet, i.e. not including tonnage chartered out, as well as the emissions released by company cars.

It is calculated by applying the corresponding emission factors to the respective fuel types. The emissions, accounted for under Scope 2, were reduced on a year-to-year basis. Reasons for this are the slightly reduced consumption as well as updated emission factors. Scope 2 measures the electricity consumption in the offices of Lauritzen Bulkers.

We are currently reporting Scope 2 emissions using the location-based approach. Smaller offices with less than 3 people have been excluded.

Regulations
2025 was characterised by notable developments in the regulatory landscape. The International Maritime Organization (IMO) postponed its decision on the Net Zero Framework, including the Global Fuel Standard (GFS). Despite the delay in implementing the measures required to meet the IMO’s long term decarbonisation ambitions, the targets themselves remain unchanged.

Lauritzen Bulkers remains committed to contributing to these objectives and will closely monitor regulatory progress throughout 2026.

Fuel EU
As of 1 January 2025, the FuelEU Maritime Regulation entered into full application across the shipping industry. Ahead of its implementation, Lauritzen Bulkers invested in internal training and engaged closely with relevant stakeholders to ensure that our systems, processes, and operational routines can meet the regulatory requirements.


Management's review

To comply with regulatory requirements, we apply the principle of using biofuels on EU‑related voyages for our owned vessels whenever operationally feasible. As a result of this approach, we have begun to see vessels generating a surplus balance.

EU ETS
In 2025, Lauritzen Bulkers fully integrated EU ETS requirements into our daily operational workflows. Regarding 2026, we have prepared our systems and processes for the final stage of the regulation’s phase-in period, which will include the full compliance level as well as the incorporation of nitrous oxide (N₂O) and methane (CH₄) into the scheme.

In parallel, we continue to monitor regulatory developments in other jurisdictions, including the evolution of, for example, the UK Emissions Trading Scheme (UK ETS), to ensure that we remain compliant and operationally prepared across all relevant markets.

Pollution of Air
Next to GHG emissions, we acknowledge the impact Lauritzen Bulkers has on air quality through the combustion of fossil fuels, which releases air pollutants. These include sulphur oxides (SOx), nitrogen oxides (NOx), particulate matter (PM), black carbon (BC), carbon oxides (CO), and nonmethane volatile organic compounds (NMVOCs).

Lauritzen Bulkers’ ESG strategy includes commitment to reducing the overall emission intensity of our operations. As fuel consumption is the primary source of air emissions from vessel activities, any initiative that improves fuel efficiency directly supports the reduction of atmospheric pollutants. Our ongoing efforts to lower fuel consumption therefore contribute to the mitigation of air emissions associated with maritime transport.

Lauritzen Bulkers complies with applicable industry regulations on air emissions and continuously monitors regulatory developments, including the expansion of Emission Control Areas (ECAs). As part of our transition plan, several decarbonisation measures, which we have identified, such as energy-efficiency operational improvements as well as fuel-saving retrofitting initiatives, also contribute to reducing air pollutants, due to unnecessary bunker consumption being minimised.

Moreover, in collaboration with our technical manager, crew members receive ongoing training, including procedures to prevent incidents such as oil spills. Lauritzen Bulkers has not reported any oil spills from its owned vessels in 2025.

The increased activity level resulted in higher bunker consumption in 2025 compared with previous years, which in turn contributed to a year on year rise in air pollutant emissions.

Biodiversity
Maritime transportation inevitably affects marine ecosystems, and Lauritzen Bulkers recognises its responsibility to minimise biodiversity-related impacts, focusing on reducing the spread of invasive species. The IMO has introduced a range of regulations aimed at mitigating these effects, and while the quantification of Lauritzen Bulkers’ specific biodiversity footprint remains challenging, we remain and aim at staying fully compliant with the existing and upcoming relevant regulatory requirements.


Management's review

This includes adherence to regulations concerning Ballast Water Management, as well as guidance from IMO on biofouling. Throughout 2024 and 2025, all owned vessels underwent scheduled drydocking, during which LB worked closely with our technical managers to evaluate and select suitable antifouling coating solutions. Two vessels were treated with silicone based coatings, while four vessels received coatings using Nano Acrylate Technology.

These coatings were selected for their effectiveness in minimising biofouling and enhancing overall hull efficiency.

In addition, our owned vessels are equipped with functioning ballast water treatment systems, ensuring compliance with regulatory requirements and helping to limit the transfer of non native organisms between marine environments.

We also monitor emerging developments related to underwater radiated noise and operational routing guidance, including Particularly Sensitive Sea Areas or other nautical chart initiatives currently under development. These initiatives support our ongoing efforts to understand and mitigate potential biodiversity impacts associated with maritime operations.

With the current knowledge at hand, none of the offices LB is renting are located in a protected area.

Social
Lauritzen Bulkers aims to be an attractive employer by providing a safe, inclusive, and supportive workplace that enables employees to thrive and realise their full potential. We remain committed to fostering a working environment that promotes development, engagement, and well being across all our global locations. As part of our continued focus on employee well-being, we intend to conduct another engagement survey in 2026 to gain deeper insight into workplace satisfaction, employee wellbeing as well as diversity and inclusion.

Diversity
Lauritzen Bulkers trusts that an inclusive and diverse working environment is an integral part of being a responsible organisation. We believe that every employee is entitled to a working environment that promotes dignity, equality, and respect for all. As a participant in a traditionally male dominated industry, Lauritzen Bulkers recognises the potential negative impacts that limited diversity and gender imbalance can have on both our culture and long term performance.

We also recognise that workplace harassment can create an unhealthy environment and have a detrimental effect on employees’ well being.

To address the identified diversity challenges, Lauritzen Bulkers has established a target of achieving a 42% representation of the underrepresented gender by year end 2025. As of year end 2025, the overall gender distribution remained unchanged from 2024, with the underrepresented gender accounting for 40% of the workforce.

Our onshore organisation continued to reflect an international profile, comprising employees from 22 different nationalities worldwide.


Management's review

Note: Diversity / nationality / age figures cover onshore staff

Engagement & Training
Our employees are at the core of our business, and their dedication is essential to our continued success. We strive to provide a work environment that enables all employees to perform at their full potential and support them in their personal and professional development.

We acknowledge that a lack of sufficient training can have an actual negative impact on our own operations, affecting employee engagement, performance, and long term retention.

At year-end 2025, Lauritzen Bulkers reported a headcount of 109 employees across six offices worldwide, in addition to 127 crew members serving on board our owned vessels.

In 2025, we welcomed 13 new colleagues across our global offices. As part of our commitment to nurture talent, we currently have 7 employees being employed for educational purposes, contributing to the development of future industry professionals and strengthening our internal talent pipeline. All employees have a bi-annual developmental talk with their manager to identify growth opportunities.

Health and safety
Protecting the health and safety of our employees and all workers across our value chain, including the crews serving on our vessels, remains a fundamental priority for Lauritzen Bulkers, given the inherently labour intensive nature of maritime transportation.

A strong commitment to health and safety not only reduces the likelihood of harmful incidents but also reinforces our long term operational resilience. Safety considerations are integrated into our daily operations and decision‑making processes, and we maintain a strong focus on ensuring safe working environments both in our offices and at sea. As such, Lauritzen Bulkers is aiming at having zero incidents on board our vessels as well as in the offices.

To achieve this, our technical manager ensures that our crew members, who are employed through a third-party provider, are in compliance with international standards and mandatory training requirements. In 2025, we hosted a seminar for our officers, during which a range of operational topics were discussed, including safety procedures and best practices.

Ongoing training and the systematic learning from past incidents contributed to strong safety performance in 2025, with a Lost Time Injury Frequency (LTIF) of zero and no major marine casualties recorded on our owned vessels.


Management's review

While office based employees are exposed to significantly lower safety risks, we remain attentive to potential incidents that may arise. One incident was reported and all established procedures were followed to ensure the case was managed appropriately and in accordance with our internal guidelines. In 2025, we offered first aid training to staff across all offices. Additionally, we continued the roll out of our “unlimited B dage” initiative, providing enhanced flexibility to employees with young children and supporting overall well being.

Note: LTIF concerns seafarers.

Human rights
Lauritzen Bulkers is committed to upholding human rights across all our operations. Our approach is anchored in internationally recognised frameworks, including the UN Guiding Principles on Business and Human Rights, the International Bill of Human Rights, the Ten Principles of the United Nations Global Compact (UNGC), and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work.

Going forward, we will further strengthen our efforts in this area. We will continue to educate our staff on human-rights topics and enhance awareness across the organisation. To support this work, we are exploring the inclusion of human rights related risks in our risk assessment tools, such as our country overview.

Our Code of Conduct – Corporate Responsibility Policy sets clear expectations and requirements for all employees and business partners on issues such as child labour, forced labour, human trafficking, non discrimination, and occupational health and safety.

To support accountability and responsible business conduct, we maintain a whistleblower channel enabling both employees and external stakeholders to report potential violations confidentially and without fear of retaliation.

In 2025, no confirmed incidents related to human rights violations were reported.

Governance
Lauritzen Bulkers is committed to maintaining a high standard of ethical business conduct as the foundation of our operations. We strive to conduct our business responsibly and with integrity across all activities and geographies. Our corporate policies, Code of Conduct – Corporate Responsibility Policy, and organisational values and procedures form an integral part of this commitment and guide the behaviour of employees and partners throughout the company.

We believe that a strong corporate culture is essential to ensuring that employees are aligned around a shared purpose and strategy. Without a clear direction, there is a risk of misalignment and reduced engagement. To counteract this potential negative impact, LB is committed to adhering to its internal policies and maintaining high standards of ethical conduct across the organisation. Training plays a central role in supporting this commitment.

All newly hired employees participate in a training session conducted by our Legal department to ensure a clear understanding of our corporate policies, expected behaviours, and compliance requirements.

Board of Directors
Business ethics are embedded in our governance structure. The Board of Directors serves as the company’s ultimate governing body and provides oversight of our strategic direction and corporate conduct. It also holds the overall responsibility for oversight of sustainability matters at Lauritzen Bulkers.


Management's review

This, among others, includes approving the company’s ESG strategy, setting ambition levels and associated targets, and monitoring progress over time. While the executive management team holds the responsibility for implementing the ESG strategy, the company’s incentive schemes are not linked to sustainability or ESG related performance metrics.

As part of the Board of Directors’ governance function, the Board reviews and approves all corporate policies on an annual basis, including those related to environmental, social, and governance topics. The Board collectively brings deep sector specific knowledge from the maritime industry, complemented by broader strategic, commercial, and governance experience from other industries.

To promote broader representation at the leadership level, Lauritzen Bulkers has established a target of achieving a 25% share of the underrepresented gender on the Board of Directors by the end of 2026, as well as a 36% share of the underrepresented gender at the management level at end-year 2025.

Corruption and Bribery
Corruption and bribery remain persistent risks within the global maritime industry, and insufficient prevention measures can undermine the progress made in combating these practices. Corruption not only undermines responsible business conduct but can also compromise the well being and safety of our crew.

Lauritzen Bulkers maintains a firm commitment to preventing corruption in all its forms and upholds a strict zero tolerance approach.

To strengthen prevention of corruption and bribery, we aim at training 100% of our critical staff in anti corruption practices and relevant internal policies. This includes both seafarers and land based employees, whose roles expose them to heightened risk. For seafarers, training is mainly facilitated through our technical manager.

In 2025, we organised an annual crew seminar with participation from senior management. At the seminar, corruption risks were addressed, and crew members were re informed about relevant policies and procedures, including expectations regarding compliance and reporting. Critical land-based employees also receive training on a regular basis.

All new hires are introduced to the full suite of company policies as part of their onboarding, including the Code of Conduct – Corporate Responsibility Policy as well as the Gifts, Entertainment, and Hospitality Policy.

For the identification and documentation of potential incidents, Lauritzen Bulkers targets the recording of all unfounded requests that come to our attention. This process is supported through our engagement with the Maritime Anti Corruption Network (MACN), whose reporting platform enables the systematic registration of such requests.


Management's review

Crew members and critical shore based staff are trained in the appropriate reporting procedures to ensure timely and accurate documentation whenever a request arises.

In 2025, we encountered two unfound requests made on our own vessels. Both incidents were reported following our procedures. No fines were given for violations of anti-corruption and anti-bribery laws.

We will continue to uphold and strengthen our anti-corruption efforts. In 2026, we plan to deliver refresher training for employees in critical roles to ensure continued awareness of compliance responsibilities. Newly hired employees will also remain subject to business conduct and anti-corruption training as part of their onboarding process. In addition, we will maintain our efforts to report any unfounded requests to MACN to support collective action against corruption in the maritime industry.

Whistleblower
Lauritzen Bulkers operates an established whistleblower channel that provides a secure and anonymous avenue for employees, both ashore and at sea, as well as external stakeholders to raise concerns. The channel supports the reporting of suspected misconduct, including issues related to human rights, labour conditions, harassment, corruption, and bribery.

Throughout 2025, no cases were reported through our whistleblower system. Crew members are also able to raise concerns through our technical management channels. In 2025, one case was reported through this channel. The matter was jointly reviewed with our technical manager, and an action plan was implemented to ensure effective follow-up.

Data ethics
In 2025, Lauritzen Bulkers adopted an IT Security Policy, outlining the principles and practices that ensure the confidentiality, integrity, and availability of information systems across the organisation.

Considering the nature of the business, our services are directed toward business clients, meaning we do not engage in personalised or segmented data use involving individual consumers. Commercial agreements are typically negotiated directly and, on a case by case basis, further reducing the need for extensive data processing.

The data we collect primarily consists of macro level information, such as commodity prices, regional economic indicators, trade statistics, vessel supply and demand patterns, and vessel tracking data. These datasets are sourced from publicly available channels and are used purely for analytical purposes.

Their role is to support informed commercial decision-making, particularly in assessing market risks and determining the pricing of our services.


Income statement 1 January - 31 December

20

(TUSD)

Note

2025

2024

Revenue

1

601,343

577,018

Other operating income

2

1,400

19,028

Direct expenses

- 522,773

- 511,609

Other external expenses

- 9,396

- 10,176

Gross profit 70,574 74,261

Staff expenses

3

- 22,145

- 19,827

Amortisation, depreciation and impairment losses of intangible assets and property, plant and equipment

2 , 4

- 46,678

- 25,987

Profit/loss before financial income and expenses 1,751 28,447

Income from investments in subsidiaries

5

- 2,504

- 978

Income from investments in associates

2 , 6

3,518

156

Financial income

7

3,764

2,887

Financial expenses

8

- 10,024

- 10,696

Profit/loss before tax - 3,495 19,816

Tax on profit/loss for the year

9

- 2,086

- 1,915

Net profit/loss for the year		10		- 5,581		17,901


Balance sheet 31 December

21

Assets

(TUSD)

Note

2025

2024

Goodwill

0

Intangible assets		11		0		0

Other fixtures and fittings, tools and equipment

1,382

Vessels

100,575

104,160

Right-of-use assets

71,377

50,738

Property, plant and equipment		12		173,334		156,280

Investments in subsidiaries

13

32,333

12,545

Investments in associates

14

97

7,273

Deposits

15

405

378

Fixed asset investments 32,835 20,196

Fixed assets 206,169 176,476

Bunkers and other inventory

9,594

10,371

Inventories 9,594 10,371

Trade receivables

7,386

6,518

Other receivables

16

2,843

3,316

Deferred tax asset

17

0

136

Prepayments

18

5,802

6,123

Receivables 16,031 16,093

Cash at bank and in hand

52,799

54,415

Current assets 78,424 80,879

Assets 284,593 257,355


Balance sheet 31 December

22

Liabilities and equity

(TUSD)

Note

2025

2024

Share capital

19

57

Retained earnings

126,797

118,986

Equity 126,854 119,043

Credit institutions

56,718

62,323

Lease obligations

41,004

18,914

Long-term debt		20		97,722		81,237

Credit institutions

20

5,604

Lease obligations

20

30,619

32,005

Trade payables

15,716

10,665

Payables to group enterprises

1,197

2,656

Corporation tax

1,282

1,722

Other payables

16

5,599

3,981

Deferred income

21

0

442

Short-term debt 60,017 57,075

Debt 157,739 138,312

Liabilities and equity 284,593 257,355

Contingent assets, liabilities and other financial obligations

22

Related parties

23

Subsequent events

24

Accounting Policies

25


Statement of changes in equity

23

(TUSD)

Share capital

Retained earnings

Total

Equity at 1 January	57	118,986	119,043
Contribution from group	0	13,392	13,392
Net profit/loss for the year	0	- 5,581	- 5,581
Equity at 31 December	57	126,797	126,854


Notes to the Financial Statements

24

1.

Revenue

(TUSD)

2025

2024

Geographical segments

Globally

601,343

577,018

601,343 577,018

Business segments

Freight revenue

394,219

310,720

COA revenue

57,807

25,053

Time charter revenue

149,317

241,245

601,343 577,018

2.

Special items

(TUSD)

2025

2024

Gain on sale of vessels (Other operating income)

0

17,605

Goodwill Impairment

-2,442

0

Gain on sale of vessels in associated entities

3,503

0

1,061 17,605

3.

Staff expenses

(TUSD)

2025

2024

Wages and salaries

20,641

18,688

Pensions

1,067

1,000

Other social security expenses

425

139

Other staff expenses

12

0

22,145 19,827

Including remuneration to the Executive Board and Board of Directors 942 1,417

Average number of employees 69 66


Notes to the Financial Statements

25

4.

Amortisation, depreciation and impairment losses of intangible assets and property, plant and equipment

(TUSD)

2025

2024

Amortisation of intangible assets

3,382

0

Depreciation of property, plant and equipment

43,296

25,987

46,678 25,987

5.

Income from investments in subsidiaries

(TUSD)

2025

2024

Share of profits of subsidiaries

477

0

Share of losses of subsidiaries

-2,981

-967

Loss on sale of companies

0

-11

-2,504 -978

6.

Income from investments in associates

(TUSD)

2025

2024

Share of profits of associates

3,518

156

3,518 156

7.

Financial income

(TUSD)

2025

2024

Interest from group enterprises

0

925

Other financial income

3,764

1,962

3,764 2,887

8.

Financial expenses

(TUSD)

2025

2024

Interest to group enterprises

0

3

Other financial expenses

9,729

10,041

Exchange adjustments, expenses

295

652

10,024 10,696


Notes to the Financial Statements

26

9.

Income tax expense

(TUSD)

2025

2024

Current tax for the year

1,287

1,722

Deferred tax for the year

136

648

Adjustment of tax concerning previous years

663

- 455

2,086 1,915

10.

Profit allocation

(TUSD)

2025

2024

Retained earnings

- 5,581

17,901

-5,581 17,901

11.

Intangible fixed assets

(TUSD)

Goodwill

Cost at 1 January		0
Additions for the year		3,382
Cost at 31 December		3,382

Impairment losses and amortisation at 1 January		0
Amortisation for the year		3,382
Impairment losses and amortisation at 31 December		3,382

Carrying amount at 31 December		0

Amortised over		3 years


Notes to the Financial Statements

27

12.

Property, plant and equipment

(TUSD)

Other fixtures and fittings, tools and equipment

Vessels

Right-of-use assets

Cost at 1 January	10,468	112,509	125,740
Additions for the year	0	1,725	58,625
Disposals for the year	0	0	- 66,208
Cost at 31 December	10,468	114,234	118,157

Impairment losses and depreciation at 1 January	9,086	8,349	75,002
Depreciation for the year	0	5,310	37,986
Reversal of impairment and depreciation of sold assets	0	0	- 66,208
Impairment losses and depreciation at 31 December	9,086	13,659	46,780

Carrying amount at 31 December	1,382	100,575	71,377

13.

Investments in subsidiaries

(TUSD)

2025

2024

Cost at 1 January

248,693

299,156

Additions for the year

22,292

1

Disposals for the year

0

- 50,464

Cost at 31 December 270,985 248,693

Value adjustments at 1 January

- 236,148

- 244,910

Disposals for the year

0

9,729

Net profit/loss for the year

- 2,504

- 967

Value adjustments at 31 December - 238,652 - 236,148

Carrying amount at 31 December 32,333 12,545

Investments in subsidiaries are specified as follows:

Name

Place of registered office

Share capital

Ownership

Lauritzen Bulkers Singapore Pte. Ltd.

Singapore

TUSD 86,000

100 %

J. Lauritzen (USA) Inc.

USA

TUSD 1

100 %

Lauritzen Bulkers Poland LLC

Poland

TPLN 5

100 %

Lauritzen NexGen Shipping A/S

Denmark

TUSD 58

100 %

Lauritzen Bulkers Canada Ltd.

Canada

CAD 1

100 %


Notes to the Financial Statements

28

14.

Investments in associates

(TUSD)

2025

2024

Cost at 1 January

8,237

8,154

Additions for the year

0

83

Disposals for the year

- 8,154

0

Cost at 31 December 83 8,237

Value adjustments at 1 January

- 964

- 1,120

Disposals for the year

- 2,540

0

Net profit/loss for the year

3,518

156

Value adjustments at 31 December 14 - 964

Carrying amount at 31 December 97 7,273

Investments in associates are specified as follows:

Name

Place of registered office

Share capital

Ownership

DeaL Energy A/S

Denmark

TUSD 78

50 %

15.

Other fixed asset investments

(TUSD)

Deposits

Cost at 1 January		378
Additions for the year		27
Cost at 31 December		405

Carrying amount at 31 December		405

16.

Derivative financial instruments

Derivative financial instruments contracts in the form of forward exchange contracts, interest rate swaps and futures have been concluded. At the balance sheet date, the fair value of derivative financial instruments amounts to:

(TUSD)

2025

2024

Assets

350

2,500

Liabilities

96

623


Notes to the Financial Statements

16.

Derivative financial instruments (continued)

Changes in fair value are recognized as follows in the income statement:
- Interest rate Swaps and currency Swaps: financial items
- EUA and oil contracs: direct expenses
- FFA's: revenue

The contracts are as follows:

Hedge Accounting not Applied:
- Interest rate swaps, with a nominal value of TUSD 28,800 and a duration of 21 months.
- Currency: USD/DKK, with a nominal value of TUSD 10,500 and a duration of 0-11 months.
- EUA, FFA and oil contracts with a duration of 0-36 months.

Hedge Accounting Applied:
-No contracts.

Value adjustment, income statement

Fair value at
31 December

Interest rate Swaps (Hedge accounting not applied)

-96

Currency: USD/DKK (Hedge accounting not applied)

146

EUA, FFA's and oil contracts (Hedge accounting not applied)

204

17.

Deferred tax asset

(TUSD)

2025

2024

Deferred tax asset at 1 January

136

784

Amounts recognised in the income statement for the year

-136

-648

Deferred tax asset at 31 December 0 136

18.

Prepayments

Prepayments comprise prepaid expenses concerning charter, insurance premiums, etc.

19.

Share capital

The share capital consists of 400,002 shares of a nominal value of DKK 1. No shares carry any special rights.


Notes to the Financial Statements

30

20.

Long-term debt

Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt.

The debt falls due for payment as specified below:

(TUSD)

2025

2024

Credit institutions

After 5 years

0

Between 1 and 5 years

56,718

62,323

Long-term part 56,718 62,323

Other short-term debt to credit institutions

5,604

62,322 67,927

Lease obligations

After 5 years

0

Between 1 and 5 years

41,004

18,914

Long-term part 41,004 18,914

Within 1 year

30,619

32,005

71,623 50,919

21.

Deferred income

Deferred income consists of payments received in respect of income in subsequent years.

22.

Contingent assets, liabilities and other financial obligations

Charges and security

The Company has issued an owner’s mortgage of USD 186m creating a charge on vessels with a carrying amount of USD 100,575k at 31 December 2025. The owner’s mortgage is deposited as security for debt to credit institutions which amount to USD 62,323k at 31 December 2025.

Other contingent liabilities

The Company has agreed to charter-in seven newbuild vessels on two to five-year time-charters. The lease obligations for the seven vessels will be a total USDm 115 for the minimum duration of the leases. Purchase options are included on the seven vessels. The time-chartered vessels are planned to deliver during 2026-2029, with three vessels in 2026, one in 2027, one in 2028 and two in 2029.


Notes to the Financial Statements

22.

Contingent assets, liabilities and other financial obligations (continued)

The Company is jointly taxed with the Danish subsidiaries of the Lauritzen Foundation with respect to Danish corporate taxation and global top-up taxation (“Pillar II”-taxation). The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes or “Pillar II”-taxes and withholding taxes may increase the Company’s liability.

In 2005 the Danish based companies of the J. Lauritzen Group, including Lauritzen Bulkers, entered the Danish tonnage taxation system, the adoption of which is binding until at least 2034. Lauritzen Bulkers does not expect to exit the tonnage taxation and thus no deferred tax provision has been made on the assets or liabilities effected by the Danish tonnage taxation system. If, however, Lauritzen Bulkers were to leave the Danish tonnage taxation system there could be a deferred tax liability of up to a maximum of USD 8.5m.

23.

Related parties and disclosure of consolidated financial statements

Basis

Controlling interest

Lauritzen Foundation

Ultimate parent company

J. Lauritzen A/S

Parent company

Transactions

The Company's intercompany transactions for the year:

Income: 1,594,476 USD
Costs: 3,509,650 USD
Group contribution received: 13,392,264 USD
Group contribution given: 8,900,000 USD

Consolidated Financial Statements

The Company is included in the following Group Annual Reports:

Name

Place of registered office

Lauritzen Fonden Holding ApS

Tranegårdsvej 20, DK-2900 Hellerup

J. Lauritzen A/S

Store Kongensgade 132, 2, DK-1264 København K

The Group Annual Report of J. Lauritzen A/S and Lauritzen Fonden Holding ApS may be obtained at the following address:

https://datacvr.virk.dk/


Notes to the Financial Statements

24.

Subsequent events

No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.


Notes to the Financial Statements

25.

Accounting policies

The Annual Report of Lauritzen Bulkers 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 USD'000. Applied US Dollar exchange rate on the 31 December 2025 is 635.27 (2024: 714.29).

Fee to Auditors
With 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.

Consolidated financial statements

With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements of J. Lauritzen A/S, the Company has not prepared consolidated financial statements.

Cash flow statement

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 J. Lauritzen A/S, the Company has not prepared a cash flow statement.

Recognition and measurement

Revenues 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.

Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably.

Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.

Business combinations

Pooling of interests

Intragroup business combinations are accounted for under the pooling-of-interests method. Under this method, the two enterprises are combined at carrying amounts, and no differences are identified. Any consideration which exceeds the carrying amount of the acquired enterprise is recognised directly in equity. The pooling-of-interests method is applied at the date of acquisition, and comparative figures have not been restated.

Leases

The Company uses IFRS 16 when measuring and recognizing leases.


Notes to the Financial Statements

25.

Accounting policies (continued)

Right of use assets are arising from lease agreements with a duration of more than 12 months. Lauritzen Bulkers have lease contracts on vessels and an office building. The lease contracts are recognised as right-of-use assets and corresponding lease liabilities, which are measured as the present value of the lease payments at initial recognition. A service element corresponding to the OPEX element on a similar vessel is excluded from the lease at initial recognition.

The lease expenses are recognised as OPEX, depreciation of the right of use asset and interest expenses. The right-of-use assets are depreciated on a straight-line basis over the lease term. The cash flow related to repayment of the lease obligation is classified as cash flow from financing activities and interest expenses are classified as cash flow from operating activities

Definitions:
• Leases: A firm period above 12 months, with no redelivery options prior to the firm period and with full control of the asset. All leases have been assessed, and low value leased are excluded.
• Discount rates: The discount rate is calculated as a weighted average of the secured and unsecured borrowing rate for a like to like asset. The discount rate is calculated in nominal terms as the cash flows are also in nominal terms based on a 60/40 loan ratio.
• Service element: The lease commitment is reduced by the service element that has been estimated as the average vessel operating cost of a similar asset on market terms.

Time charter agreements are typically made for fixed periods but may include extension- and purchase options. Options are included in the recognition if the Company is reasonably certain to exercise the option. If the Company exercises an option which was not previously included, the lease liability is reassessed and adjusted against the right-of-use asset.

Translation policies

USD is used as the presentation currency. All other currencies are regarded as foreign currencies.

Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences 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. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity.

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

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, see below.


Notes to the Financial Statements

25.

Accounting policies (continued)

Hedge accounting

Changes 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 the fair value reserve 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.

Segment information on revenue

Information on business segments and geographical segments is based on the Company’s risks and returns and its internal financial reporting system. Business segments are regarded as the primary segments.

Income statement

Revenue

The Group has chosen IFRS 15 as interpretation for revenue recognition.

Revenue consist of three types of contracts with customers; spot contracts with carriage of a specific quantity of cargo in a single voyage, Contract of Affreightment (COA) with carriage of a certain quantity of cargo with multiple voyages over a specified period of time (together freight income), and time-charter contracts of vessels. Each voyage is recognized as a performance obligation no matter if it is part of a spot contract or a COA.

Revenue comprises the present value of services rendered and net of discounts. Revenue is recognised in the income statement for the financial year as earned.

All freight income and voyage costs are recognised as the freight services are rendered (percentage of completion). The percentage of 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. According to this method, freight income and related costs are recognised in the income statement according to the entered charter parties from the vessel’s load date to the delivery of the cargo (discharge). The voyage begins on the date when the cargo is loaded, and the voyage ends at the date of the discharge (load to discharge). This applies to all spot transports and transports under Contracts of Affreightment (COAs).

Costs directly attributable to relocating the vessel to the load port under the contract are capitalised to the extent that they are recoverable.

Demurrage is recognised if the claim is considered probable.


Notes to the Financial Statements

25.

Accounting policies (continued)

Direct expenses

Direct expenses covers vessels running costs include hire of chartered vessels under 12 months, bunker oil, port costs, agent’s commissions and other voyage related costs. Furthermore, vessels running costs include fair value changes on financial bunkers contracts used to hedge future bunkers purchases. Hedge accounting is not applied for these transactions.

Vessels running costs also includes maintenance and repairs, insurance of hulls and machinery, consumption of lubricants and supplies etc. Furthermore, a part of the lease payments on time charters is considered a service element and recognised as OPEX in accordance with IFRS 16 Leases.

Other external expenses

Other external costs include sales costs and administrative expenses include land-based activities, and maintenance of equipment. Furthermore, sales costs, marketing costs and administrative expenses are included.

Staff expenses

Staff expenses comprise wages and salaries as well as payroll expenses.

Amortisation, depreciation and impairment losses

Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of property, plant and equipment.

Other operating income and expenses

Other 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 property, plant and equipment.

Income from investments in subsidiaries and associates

The 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

Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the on-account taxation scheme.

Tax on profit/loss for the year

Tax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.

The Group is subject to the Danish rules on compulsory joint taxation, and is jointly taxed with subsidiaries of the Lauritzen Fonden. In addition the Group is subject to the global top-up taxation (“Pillar II”-taxation).

Shipping activities in Denmark are taxed according to the Danish Tonnage Tax Scheme on the basis of the net tonnage (vessels), which the Danish group entities in question have at their disposal, and according to general tax regulations for net financial income and other activities.


Notes to the Financial Statements

25.

Accounting policies (continued)

Balance sheet

Intangible fixed assets

Goodwill

Goodwill is amortised on a straight-line basis over the estimated useful life of 3 years, determined on the basis of Management’s experience with the individual business areas.

Property, plant and equipment

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.

Interest expenses on loans contracted directly for financing the construction of property, plant and equipment are recognised in cost over the construction period.

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:

Vessels

25 years

Docking

2,5-5 years

Other fixtures and fittings, tools and equipment

5-10 years

The fixed assets’ residual values are determined at nil.

Depreciation period and residual value are reassessed annually.

Impairment of fixed assets

Management monitors continuously, on a portfolio basis, the carrying value of tangible non-current assets (owned vessels and right-of-use vessels) in order to determine, whether there are any indications of impairment in excess of the amount provided for by normal depreciations and whether previous impairments should be reversed.

An impairment test is conducted if there is an indication that the carrying amount of an asset or a cashgenerating unit (CGU) exceeds the expected future cash flows from the asset. If the carrying amount exceeds the recoverable amount, the asset is written down to the lower recoverable amount. The recoverable amount of the asset is determined as the higher of the net selling price and the value-inuse. If a recoverable amount for the individual assets cannot be determined, the smallest group of assets for which it is possible to determine the recoverable amount (cash-generating unit) is analysed for impairment.

Management's assessment of indication of impairment on owned vessels and leased vessels is based on the that the Group has one CGU: Bulk carriers (owned and right-of-use vessels). An impairment loss is recognised whenever the carrying amount of cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. Impairment losses of assets within a CGU are allocated to the carrying amount of the assets in the CGU on a pro rata basis to the higher of fair value less cost to sell and value in use. Reversal of previous impairments is only recognised if there has been a change in the assumptions used to determine the recoverable amount since the last impairment test was carried out.


Notes to the Financial Statements

25.

Accounting policies (continued)

Other investments
Other investments comprise investments in unlisted securities in which the Company holds below 20% of the voting rights and does not exercise significant influence. Other investments are measured at fair value. The fair value is made up at the market value at the balance sheet date at a value made up using generally recognised valuation principles if the securities are unlisted. If the fair value cannot be reliably measured, cost is used as an alternative.

Investments in subsidiaries and associates

Investments 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

Other fixed asset investments consist of rental deposits, receivables from group enterprises and associates with is due after one year.

Inventories

Inventories and Bunkers are measured at the lower of cost under the FIFO method and net realisable value.

Receivables

The Company has chosen IFRS 9 as interpretation for impairment of financial receivables.

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables are included in Trade receivables and Other receivables in the statement of financial position. Trade receivables and Other receivables are stated at amortised cost. Trade and other receivables are measured using the Expected Credit Loss method, and expected losses are recognised in the profit and loss.

Receivables with no objective indication of individual impairment are assessed for objective indication of impairment on a portfolio basis. The portfolios are primarily based on the debtors' registered offices and credit rating in accordance with the Company's and the Group's credit risk management policy. The objective indicators used in relation to portfolios are determined based on historical loss experience.

Write-downs are calculated as the difference between the carrying amount of receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate.

Prepayments

Prepayments comprise prepaid expenses concerning time charter, insurance premiums, etc.


Notes to the Financial Statements

25.

Accounting policies (continued)

Equity

Reserve for net revaluation according to the equity method. Net revaluation of investments in subsidiaries and associates/joint ventures is recognised in the net revaluation reserve according to the equity method. The reserve may be eliminated in case of losses, realisation of investments or a change in accounting estimates. The reserve cannot be recognised at a negative amount.

Dividend
Dividend distribution proposed by Management for the year is disclosed as a separate equity item.

Deferred tax assets and liabilities

Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised in respect of temporary differences concerning goodwill not deductible for tax purposes and other items - apart from business acquisitions - where temporary differences have arisen at the time of acquisition without affecting the profit for the year or the taxable income.

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. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.

Deferred tax assets, including the tax base of tax loss carry-forwards, 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.

Deferred tax assets and liabilities are offset within the same legal tax entity.

Current tax receivables and liabilities

Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously.

Financial liabilities

Loans, such as loans from credit institutions, are recognised initially at the proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost; the difference between the proceeds and the nominal value is recognised as an interest expense in the income statement over the loan period.

Mortgage loans are measured at amortised cost, which for cash loans corresponds to the remaining loan. Amortised cost of debenture loans corresponds to the remaining loan calculated as the underlying cash value of the loan at the date of raising the loan adjusted for depreciation of the price adjustment of the loan made over the term of the loan at the date of raising the loan.

Other debts are measured at amortised cost, substantially corresponding to nominal value.

Deferred income

Deferred income comprises payments received in respect of income in subsequent years.


Notes to the Financial Statements

25.

Accounting policies (continued)

Financial Highlights

Explanation of financial ratios

Profit margin

Profit/loss of primary operations x 100 / Revenue

Return on assets

Profit/loss of primary operations x 100 / Total assets at year end

Solvency ratio

Equity at year end x 100 / Total assets at year end

Return on equity

Net profit for the year x 100 / Average equity