SYNNE SYRRIST

Mrs. Syrrist has work experience as an independent consultant

for Norwegian companies and as financial analyst in Elcon

Securities ASA and First Securities ASA. She has also an

extensive non-executive experience from both listed and private

companies and is currently among others a member of the

boards of Awilco Drilling Plc, Integrated Wind Solutions ASA,

Mr. Steve Christy has 38 years’ experience in shipping and

energy markets. He has spent the past 7 years heading up and

working with Navig8’s internal research team. This included

analysis of various shipping sectors and giving external

presentations to clients, investors and potential investors. Prior

to joining Navig8 in 2014 Mr. Christy held various positions

within Gibson Shipbrokers (director), KBC and Petroleum

Economics Ltd. (director), mainly focusing on research in the

shipping and energy markets. Mr. Christy is a British citizen and

positions in the Awilco group of companies. Mr. Nygaard has a

BA Honours in Finance from Strathclyde University and an MSc

in Shipping, Trade & Finance from CASS Business School. Mr.

Nygaard is a Norwegian citizen. Mr. Nygaard isa member of the

Remuneration Committee.

Operating income for the year amounted to NOK 8.0 million

(NOK 5.7 million) and administration expenses NOK 25.8 million

(NOK 20.6 million).

Net finance income amounted to NOK 3.4 million (NOK 5.4

million).

Loss for the period was NOK 14.4 million (NOK 247,9 million).

The Board of Directors propose that the loss for the period of

NOK 14.4 million for the Parent Company is covered by retained

earnings and the Board will therefore ask the General Meeting

scheduled for 24th May, 2022 for a power of attorney to declare

dividend or other means to return capital to shareholders

of a value of up to USD 7 million during 2022 when there is

reasonable earnings visibility for same.

GOING CONCERN ASSUMPTION

The consolidated financial statements of the Group, and the

parent company financial statements of Awilco LNG ASA,

have been prepared on a going concern basis pursuant to the

Norwegian Accounting Act § 3-3a.

Shipping market conditions have historically been volatile and

consequently the financial results may vary significantly from

year to year. The risk factors in the LNG shipping market can

be divided into the following main components: market risk,

operational risk and financial risk.

Market risk relates to the supply of LNG vessels and the

demand for LNG transportation. In the past there have been

2021 and at December 31, 2021 the Group had cash and cash

equivalents of USD 23.6 million and was in compliance with all

derivatives were entered into.

The Group is exposed to credit risk from its operating

activities through freight income trade receivables and from

its financing activities, including deposits with banks. The

Group aims to do business with creditworthy counterparties

only. Charter hire is normally received monthly in advance,

effectively reducing the potential exposure to credit risk. Bank

deposits are only deposited with internationally recognised

financial institutions with a solid credit rating.

cash-settled plans is dependent on the final intrinsic value of

the awards. Social security tax liability is recognised on the

intrinsic value of the cash-settled share-based payments.

PENSIONS

The Group is required to provide a pension plan towards its

onshore employees, and the Group has implemented a defined

contribution plan. The plan, which is fully funded, complies

The preparation of financial statements requires management

to make estimates, judgments and assumptions that affect

the amounts reported in the financial statements and

accompanying notes. Management bases its estimates

and judgments on historical experience and on various

other factors that are believed to be reasonable under the

circumstances, the results of which form the basis for making

liabilities within the next financial year are discussed below.

CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING

POLICIES

In general management has to apply judgement in the process

of applying the Group’s accounting policies, in addition to

items involving estimates described below, in the process of

preparing the financial statements.

Management has applied significant estimates and

assumptions mainly relating to the following:

the end of the vessels’ useful life. Estimates may change

due to changes in scrap value, technological development,

competition and environmental and legal requirements.

Management reviews the future useful lives of each significant

component and the residual values of the vessels annually,

taking into consideration the above-mentioned factors and the

Basic earnings per share are calculated by dividing profit/(loss) for the year attributable to ordinary equity holders by the weighted

average number of ordinary shares outstanding during the year.

Diluted earnings per share are calculated by dividing the profit/(loss) for the year attributable to ordinary equity holders by the weighted

average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be

issued on the conversion of all potentially dilutive ordinary shares to ordinary shares. The Company did not have any potentially dilutive

ordinary shares as per 31 December 2021 or 31 December 2020.

AS are subject to ordinary corporation tax in Norway.

Profit/(loss) for year attributable to ordinary equity holders (KUSD)

Weighted average number of shares outstanding, basic and diluted

Basic/diluted earnings per share (USD)

Gain/loss account

Net pension assets

Currency effects on long term debt

Tax loss carry forward

Not recognised deferred tax assets (basis)

Tax rate