Havila Shipping ASA: First quarter 2020 accounts

Summary

The sharp fall in oil price and the Covid-19 virus have reduced the activity in the markets where the vessels are operated.
Reduced demand for vessels, will have negative impact on the revenues going forward.
The weakening of Norwegian Kroner has resulted in a significant unrealized currency loss related to financing, but increases the income from contracts in foreign currencies.
The impairment test of vessels has resulted in no impairment in first quarter, but significant reduction in the excess value compared to book value for most of the vessels.
The interest rate level has fallen and will result in lower interest expenses than expected as soon as the debt restructuring has been implemented.

• Havila Shipping ASA achieved an operating income before depreciation of NOK 70.5 million in Q1 2020, compared with NOK 34.3 million in Q1 2019.
• Total operating income was NOK 208.9 million in Q1 2020, compared with NOK 148.5 million in Q1 2019.
• The group had as of 31/03/20 23 vessels operated from Fosnavåg, six for external owners.
• The group had 3 AHTS vessels laid up at the end of Q1 2020.
• The fleet utilization Q1 2020 was 79 % exclusive vessels in lay-up.

Result for 1 quarter 2020

• Total operating income amounted to NOK 208.9 million (NOK 148.5 million).
• Total operating expenses were NOK 138.4 million, whereof MNOK 15.8 is provision for loss on trade receivables. Ordinary operating expenses amounts to MNOK 122.6 (NOK 114.3 million).
• The operating profit before depreciation was NOK 70.5 million (NOK 34.3 million).
• Depreciation was NOK 86.9 million (NOK 79.9 million).
• Net financial items were NOK -215.6 million (NOK -45.3 million), whereof unrealized agio loss was NOK 160.0 million (unrealized agio gain NOK 8.6 million).
• The profit before tax was NOK -231.7 million (NOK -91.9 million).
  
  

Balance and liquidity per 31/03/20

The book value of the fleet is NOK 2,894 million.

Total current assets amounted to NOK 408.3 million on 31/03/20, whereof bank deposits were NOK 86.8 million (of this NOK 1.0 million restricted).
On 31/03/19, total current assets amounted to NOK 302.9 million, whereof bank deposits amounted to NOK 68.1 million (of this NOK 1.0 million restricted).
Net cash flow from operations was in Q1 2020 NOK 9.9 million (NOK 5.0 million).
Cash flow from investing activities was NOK -15.3 million (NOK -14.1 million).
Payment of loan instalments and lease liabilities constitute a net change from financing activities of NOK –5.6 million (NOK -7.9 million).
Total interest-bearing debt per 31/03/20 is NOK 4, 417.4 million. Of interest-bearing debt, 20.9 % are loans in USD, while the remaining loans are in NOK. As of 31/03/20, all secured debt are classified as short term debt.

Fleet

Havila Shipping ASA operates 23 vessels,

14 PSV
- Four owned externally
- One owned 50% and not consolidated
5 AHTS
3 Subsea
1 RRV (bareboat)

Employees

Havila Shipping ASA had per 31/03/20 463 employees on the company’s vessels and 35 employees in the administration.

Contacts:

CEO Njål Sævik, +47 909 35 722

CFO Arne Johan Dale, +47 909 87 706

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

• HAVI Q1 2020