Saudi Arabia Tax Appeal and Settlement Proceedings

As most recently disclosed in note 8 of the Company's Financial Statements for the year ended 31 December 2024, a subsidiary of the Group received in 2021 a tax assessment from the Saudi Zakat, Tax and Customs Authority ("ZATCA") for an amount of US$9.2 million (including delay fines) related to the transfer pricing of an inter-group bareboat agreement for the financial years ending 31 December 2017, 31 December 2018 and 31 December 2019. The Group, supported by its external tax advisers, filed an appeal with the Tax Violations and Disputes Appellate Committee ("TVDAC") against the assessment raised by ZATCA followed by a settlement application with the Alternative Dispute Resolution Committee ("ADRC") and multiple settlement proposals.

On 12 May 2025, the Company received notification that its latest settlement proposal had been rejected by the ADRC. In addition, a Court hearing which had been scheduled for 15 May 2025, was brought forward to 12 May 2025, at which the Court delivered its judgment. Whilst the written judgment has not yet been received by the Company, the Company understands that its appeal has been denied and that no further appeal from the judgment is possible. The total amount awarded under the judgment against the Group is yet to be communicated to us and management will work on obtaining a waiver of the penalties.

As outlined in the 2024 Financial Statements, the Group had recorded appropriate provisions, reflecting the Directors then current best estimate of the outflows in line with IFRIC 23. The difference between the amount awarded and the amount provided for will be reflected on our financial statements.

Adjusted EBITDA guidance for 2025 remains in the range of US$ 100 - 108 million. As for 2026, whilst the Company still closely monitors the global economic news, it is still targeting an EBITDA in the range of USD 105-115 million.

The Group's net leverage ratio is currently 1.79x. The Directors believe that the impact of the judgment may result in a modest delay in achieving the Group's target leverage of 1.5x, dependent on the overall performance of the Group's business.

MAR