Rex International Announces Deconsolidation of Lime Petroleum Holding Group Financials Amid Board Restructuring

Key Highlights

• Board Control Change:  Rex International Holding Limited (&ldquo Rex&rdquo ) has announced a significant change in the board composition of Lime Petroleum Holding AS (&ldquo LPH&rdquo ) and Lime Petroleum AS (&ldquo LPA&rdquo ). The majority of directors on the new boards are now independent third parties, and Rex no longer holds any director representation on the boards of LPH and LPA.
• Ownership Unchanged:  Despite the board changes, Rex&rsquo s effective ownership of LPH remains unchanged at 89.74%. This means Rex still indirectly owns the vast majority of LPH shares.
• Deconsolidation Decision:  Due to the loss of board control, Rex will deconsolidate the financial statements of the LPH Group from its own group financials, in accordance with Singapore Financial Reporting Standards (International) SFRS(I) 10. This decision was made following the recommendation of Rex&rsquo s Audit Committee and is effective from 10 April 2026.
• Financial Impact:  The deconsolidation will be reflected in Rex&rsquo s half-yearly results for the six months ending 30 June 2026. Pro forma financial effects have been illustrated based on the audited figures for the year ended 31 December 2025 (FY2025).

Detailed Financial Implications

• Loss for the Year:  Rex&rsquo s consolidated loss for FY2025 decreases dramatically from  US\$152.7 million  to  US\$22.96 million.
• Loss Per Share:  Loss per share narrows from  10.23 US cents  to  0.27 US cents.
• Net Asset Value (NAV):  NAV shifts from negative  US\$94.43 million  to positive  US\$38.18 million.
• NAV Per Share:  NAV per share improves from negative  7.25 US cents  to positive  2.93 US cents.

Investor and Shareholder Considerations

• Price Sensitivity:  The deconsolidation results in substantially improved financial metrics for Rex, including lower loss and positive NAV, which could be viewed favorably by investors and potentially impact share price.
• Governance and Control:  The loss of board representation in LPH and LPA means Rex no longer exercises control over LPH Group, which marks a significant shift in the company&rsquo s relationship with its major asset. This may raise questions about future strategy and influence over LPH operations.
• No Change in Ownership:  Rex&rsquo s indirect stake remains substantial however, the loss of control means Rex will account for LPH as an investment rather than a subsidiary, affecting future financial disclosures and possibly the perception of Rex&rsquo s asset base.
• Reporting Changes:  Investors should expect different accounting treatment for LPH going forward, which may affect Rex&rsquo s reported earnings and balance sheet strength.

Timeline and Next Steps

Conclusion