Maersk Oil Trading And Investments A/S

Management's review

Management’s Review Development during the financial year Maersk Oil Trading and Investments A/S’ result was a profit after tax of USD 134m in 2023 compared to a profit of USD 134m in 2022. The result is in line with 2022, there is slight decrease in revenue and operating income which is partly offset with decrease in operating cost and other external cost. The decrease is due to reduced market volatility and price reductions in 2023. Net financial items for 2023 (USD 50m) is in line with 2022 (USD 49m). Total assets decreased to USD 2,445m from USD 2,638m mainly driven by decrease in intangible assets and investments in subsidiaries. The intangible asset decreased as HBE volumes have drastically decreased due to the Dutch government cutting the amount of HBEs that we can generate from a single ton of fuel by 20%. The investment in subsidiaries decreased mainly due to distribution of dividend. The profit before financial items for the year is USD 33 million and considered below the expectation for 2023, which was in the range of USD 50-150 million. The primary reason for the dip is due to reduced market volatility and price reductions in 2023. Expectations The company's outlook for 2024 will be in line with 2023, as no material difference is expected in revenues and operating activities of the company, thus for 2024 a profit before financial items in the range USD 30-100 million is expected. Measurement uncertainties The preparation of the financial statements requires management to make estimates and judgements on an ongoing basis and to form assumptions that affect the reported amounts. Management forms its estimates and judgements based on historical experience, independent advice, external data points as well as on in-house specialists and on other factors believed to be reasonable under the circumstances. Measurement uncertainties relates mainly to the determination of the fair value of investments in unquoted shares. Risks The Company is exposed to a variety of financial risks with oil price risks being the most material risk component. Other risks include currency risks, interest rate risks, credit risks and liquidity risks. The company is influenced by fluctuations in oil prices as the Company when entering oil price hedging contracts undertakes oil price hedging for A.P. Moller – Maersk businesses. The Company’s policy is to mitigate oil price risks by entering into commodity derivative agreements. The overall exposure limit is set in the risk policy, defining a maximum net open position. The company has exposure to financial and commercial counterparties. To minimise the credit risk, financial vetting is undertaken for all major counterparties and financial institutions, adequate security is required for commercial counterparties, and credit limits are set for financial institutions. Events after balance sheet date No significant events have occurred after the balance sheet date up through the date of this report which would influence the evaluation of this Annual Report.

Description of significant activities of entity

Main activities The purpose of Maersk Oil Trading and Investments A/S is to hold investments in companies, primarily within oil trading in Europe, Asia and USA and Maersk agencies in Europe, Africa and Asia are included in subsidiaries portfolio. The Company also undertakes and holds investments in different venture capital companies, all with businesses related to logistics. Maersk Oil Trading and Investments A/S oversees purchasing bunkers and lubricants, monitoring oil price risk and concluding oil price hedging contracts for companies in the A.P. Moller – Maersk group. Maersk Oil Trading purchases and sells bunkers and lubricants as agents as well as own sourcing. Only own sourcing transactions are included in revenue and expenses.