Dated 9th May 2024

COMMERCIAL OF INVESTING IN A 10 ~ 15 KT DWT OIL TANKER.

Invest in a 10 to 15 KT DWT vessel (Ship) of age less than 15 years, preferably Japanese or Korean build in
the range of USD 9.5 to 10 Million.
The vessel to be put on TIME CHARTER initially for a minimum period of 5 Years so as to recover the value
at risk (VAR) and then continue to utilize in SPOT till her age and commercial permits.
The vessel will be classed with IACS and covered under the International Group of Protection and
Indemnity Clubs and a good Hull and Machinery Insurer.

BASIC INFORMATION

Age of Vessel in Years 14 Years

DWT / LTD 10,000 4500
Value in USD 10,000,000
Scrap Value at USD 400/LDT 3,570,000
Debt 60% 6,000,000
Equity 40% 4,000,000
Loan Duration 5 Years 1825 days
Principal Repayment in USD 3288 per day
Operating Life in Years 10 years
Utilization (Including DD) 95% 347 day
Avg. Freight rate for 10 year 13,800 per day
Avg. Operating for 10 Years 4,750 per day
Tonnage Tax in USD 55 Per day
Misc. Expenses in USD 328 per day
Dry Dock in USD 822 per day
Insurance in USD 493 Per day
Rate of Interest 10.0% P/A

INTEREST AT THE RATE OF 10% PA, PAYABLE EVERY SIX MONTHS ON REDUCING PRINCIPAL FOR 5 YRS

All Figs in USD 1st year 2nd Year 3rd Year 4th Year 5th year
Principle amount each year 6000000 4800000 3600000 2400000 1200000
1st half Principle repayment 600000 600000 600000 600000 600000
Balance Principle amount 5400000 4200000 3000000 1800000 600000
2nd half Principle repayment 600000 600000 600000 600000 600000
Balance Principle amount 4800000 3600000 2400000 1200000 0
1st Half Interet paid 270000 210000 150000 90000 30000
2nd Half interst paid 240000 180000 120000 60000 0
Total Interst paid per year 510000 390000 270000 150000 30000
Per day Interest amount 1397 1068 740 411 82
 PROJECTION OF EXPENSE AND EARNINGS OVER A PERIOD OF 10 YEARS

Year 1 2 3 4 5
CHARTER HIRE 13,000 4,507,750 13,000 4,507,750 13,500 4,681,125 13,500 4,681,125 13,500 4,681,125

LESS EXPENSES PER DAY PER ANNUM PER DAY PER ANNUM PER DAY PER ANNUM PER DAY PER ANNUM PER DAY PER ANNUM
OPEX 4,500 1,560,375 4,500 1,560,375
4,500 1,560,375 4,500 1,560,375 4,500 1,560,375
Dry Dock Vsl is already DDed and will not need to be DD for next 2 yrs 712 260,000 712 260,000 712 130,000
Tonnage 55 20,000 55 20,000 55 20,000 55 20,000 55 20,000
Interest Cost 1,397 510,000 1,068 390,000 740 270,000 411 150,000 82 30,000
Insurance 493 180,000 493 180,000 493 180,000 493 180,000 493 180,000
Misc. Expenses 328 119,629 328 119,629 328 119,629 328 119,629 328 119,629
Total Expense 6,773 2,390,004 6,444 2,270,004 6,827 2,410,004 6,499 2,290,004 6,170 2,040,004

Net Profit 5,802 2,117,746 6,131 2,237,746 6,222 2,271,121 6,551 2,391,121 7,236 2,641,121
Less Principal
repayment of Loan 3,288 1,200,000 3,288 1,200,000 3,288 1,200,000 3,288 1,200,000 3,288 1,200,000
Net Profit after
Principal Repayment 2,514 917,746 2,843 1,037,746 2,935 1,071,121 3,263 1,191,121 3,948 1,441,121
Annual ROI 22.94% 25.94% 26.78% 29.78% 36.03%
ROI Average for 10 years 48.84%
Add Value of vessel 24,658 9,000,000 21,918 8,000,000 19,178 7,000,000 16,438 6,000,000 9,781 3,570,000

Net Cash Flow 9,917,746 9,955,493 10,026,614 10,217,735 9,228,856

Year 6 7 8 9 10
CHARTER HIRE 14,000 4,854,500 14,000 4,854,500 14,500 5,027,875 14,500 5,027,875 14,500 5,027,875

LESS EXPENSES PER DAY PER ANNUM PER DAY PER ANNUM PER DAY PER ANNUM PER DAY PER ANNUM PER DAY PER ANNUM
OPEX 5,000 1,733,750 5,000 1,733,750 5,000 1,733,750 5,000 1,733,750 5,000 1,733,750
Dry Dock 712 260,000 712 260,000 712 130,000 NO DRY DOCK IN LAST 2 YEAR
Tonnage 55 20,000 55 20,000 55 20,000 55 20,000 55 20,000
Interest Cost - - - - - - - - - -
Insurance 493 180,000 493 180,000 493 180,000 493 180,000 493 180,000
Misc. Expenses 328 119,629 328 119,629 328 119,629 328 119,629 328 119,629
Total Expense 6,588 2,313,379 6,588 2,313,379 6,588 2,183,379 5,876 2,053,379 5,876 2,053,379

Net Profit 6,962 2,541,121 6,962 2,541,121 7,793 2,844,496 8,149 2,974,496 8,149 2,974,496
Less Principal
repayment of Loan - - - - - - - - - -
Net Profit after
Principal Repayment 6,962 2,541,121 6,962 2,541,121 7,793 2,844,496 8,149 2,974,496 8,149 2,974,496
Annual ROI 63.53% 63.53% 71.11% 74.36% 74.36%
ROI Avg for 10 years
Add Value of vessel 9,781 3,570,000 9,781 3,570,000 9,781 3,570,000 9,781 3,570,000 9,781 3,570,000

Net Cash Flow 11,769,978 14,311,099 17,155,595 20,130,091 23,104,588

NET PROFIT IN 10 Yrs 19534587.5

Asset value in 10 Yrs 3,570,000
Total return in 10 Yrs 23,104,588
Return on an investment of 4,000,000 After 10 Years 23,104,588
KEY POINTS TO NOTE

• The annual revenue is based on the freight earned in 347 days per year, however the expenses
are for 365 days a year.

• The cash flow is positive every year.

• In a period of 10 years the vessel will be dry-docked only three times. Hence after the 8th year
the DD cost is not considered.

• The Principle repayment will be done every month along with the interest. However for ease of
calculation and projections we are should Principle and interest being paid every 6 months.
• The principle will be returned in 10 instalment of 6 months each.

• The net value of vessel every year is further depreciated by 10%, till it reached its scrap value in
in 5 year. However, in 5 years the vessel will be about 20 years old and will still have a good
market value. But being conservative we have reduced the value to scrap price in 5 years.

The NET return on our equity of USD 4 million in five years will be USD 23.1 Million including
the scrap value of USD 3.57 M (calculated at USD 850 / LDT and assuming the LDT of the vessel to be
4200)

If we buy two or more Sister ship, the OPEX will reduce and we can trade 2 Ships on Time Charter and 2
Ships on Spot charter to earn a higher return.