Atlantic Navigation Singapore : Annual Report 2021

ANNUAL REPORT 2021

TOGETHER

WE

OVERCOME

RESOLVE RESILIENCE

CONTENTS

01Corporate Profile

02Chairman's Statement

04CEO's Statement

07Board of Directors

09Executive Officers

10Group Financial Highlights

11Vessel Fleet List

12Significant Development Milestones

15HSE Description

16Group Structure

17Corporate Governance Report

37Directors' Statement

42Independent Auditor's Report

46Consolidated Statement of

Comprehensive Income

48Balance Sheets

49Statements of Changes in Equity

51Consolidated Cash Flow Statement

52Notes to the Financial Statements

107Statistics of Shareholdings

109Notice 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.

CORPORATE PROFILE

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 commenced in the United Arab Emirates ("UAE") 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.

We manage our operations mainly in the Middle East 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.

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 under Investment in Joint Operation) comprising of lift-boats (a.k.a. jack-up barges), mid- sized DP2 vessels, various AHTs, maintenance utility vessels, as well as a tugboat, crew boat and work utility vessel. 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.

The Group's vessels and service offering 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 Hamriyah Free Zone as well as Dubai Maritime City with access to dry-docking facilities.

PROJECT WORK

We 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.

Since the completion of US$45.2 million decommissioning of offshore and onshore facilities project in first quarter of 2020, the Group has successfully completed another project contract in December 2021 involving the chartering of our vessel complemented with substantive project management including managing outsourced services (i.e. operating of Remote Operated Vehicle, survey equipment, gangway) cumulating to a packaged geo-physical service to an international Engineering Procurement 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.

We are a pre-qualified marine service provider to Middle Eastern National Oil Company ("MENOC") and oil majors such as Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), Qatar Gas and Qatar Petroleum, and independent oil companies such as Masirah Oil, as well as international offshore EPC contractors such as Saipem, McDermott, Subsea 7 and NPCC.

Atlantic Navigation Holdings (Singapore) Limited Annual Report 2021

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CHAIRMAN'S STATEMENT

Mr Kum Soh Har, Michael,

Non-Executive

Non-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") 2021.

FY2021 was a year full of challenges for the Group. The impact of the COVID-19 pandemic with the emergence of new variants resulted in restrictive travel movements and lockdown, which continued to disrupt the offshore operation activities in FY2021. Accordingly, the reported revenue declined by 32.0% in FY2021 (US$43.8 million) when compared to FY2020 (US$64.4 million) on the back of fleet utilisation achieved of 73.7% in FY2021 versus 80.7% in FY2020. The Group registered a net loss after tax of US$13.2 million including impairment charges recognised on certain vessels of US$8.0 million in FY2021 compared to net loss after tax of US$5.5 million including impairment charges of US$5.8 million in FY2020.

With the lifting of the restrictive travel movements in the Middle East, oil and gas offshore activities are not disruptive, resulting in higher demand for rig, marine vessel and barge support services. As an update, our fleet utilisation had improved from 76.7% in 3Q2021 to 84.0% in 4Q2021.

Going forward, I am cautiously optimistic that the offshore oil and gas marine logistics services are on a recovery path with an increase in offshore activities being noted. Oil price has been trading on the promising direction in FY2021. In early FY2022, oil price has been on the upward trend, hovering above US$100 per barrel since March 2022. Nonetheless, other challenges and uncertainties remain for FY2022 due to the on-goingRussia-Ukraine conflict.

On this note, I would like to thank management, all employees and ship crew who have shown their commitment to us despite challenges.

02Atlantic Navigation Holdings (Singapore) Limited Annual Report 2021

CHAIRMAN'S STATEMENT

On behalf of the Board, I would like to express my utmost gratitude to our bankers for their continued trust and support of the Group's financial needs throughout the year. We are also tremendously grateful to our customers, business partners and suppliers for their relentless support to enable the Group to smoothly execute its contracts and projects.

Lastly, I thank all shareholders for your patience and trust placed on the Group. The Group will continue to remain vigilant to overcome challenges, chart out its new phase of development to improve its performance and operating cash flows, and ultimately enhance shareholder value in the years ahead.

Yours faithfully,

Mr Kum Soh Har, Michael

Non-ExecutiveNon-Independent Chairman

Atlantic Navigation Holdings (Singapore) Limited Annual Report 2021

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