Havila Shipping ASA: Third quarter 2021 accounts

Summary

Freight revenues increased by NOK 8.9 million in the third quarter compared with the previous quarter, mainly due to higher rates for the group’s AHTS vessels.

An agreement with the lenders entered into in 2020 clarifies the company’s obligations to the lenders for the period until 2024. The agreement does not prevent the company’s fleet from being reduced as a result of the sale of vessels with lower revenues than operating costs for the individual vessel. Four vessels in lay-up were circulated for sale in the third quarter at the request of lenders in accordance with the provisions of the restructuring agreement. One vessel has been transferred to a new owner after the balance sheet date.

• Havila Shipping ASA achieved an operating income before depreciation of NOK 53.7 million in Q3 2021, compared with NOK 36.4 million in Q3 2020.

• Total operating income was NOK 154.8 million in Q3 2021, compared with NOK 188.7 million in Q3 2020.

• The group had as of 30/09/21 23 vessels operated from Fosnavåg, six for external owners.

• The group had 3 AHTS and 3 PSV vessels laid up at the end of Q3 2021.

• One PSV vessel was sold in November 2021.

• The fleet utilization Q3 2021 was 85 % exclusive vessels in lay-up.

Result for 3 quarter 2021

• Total operating income amounted to NOK 154.8 million (NOK 188.7 million).

• Total operating expenses were NOK 101.1 million (NOK 152.3 million whereof NOK 48.7 million was change of loss on receivables). Ordinary operating expenses were NOK 101.1 million (NOK 103.6 million).

• Operating profit before depreciation was NOK 53.7 million (NOK 36.4 million).

• Depreciation was NOK 62.1 million (NOK 87.4 million).

• Impairment charge of fixed assets was NOK 25.5 million (NOK 0 million).

• Net financial items were NOK - 23.6 million (NOK 68.0 million), whereof unrealized agio loss was NOK 20.1 million (unrealized agio gain NOK 19.6 million), and value adjustment of debt was NOK - 4.9 million (NOK 47.9 mllion).

• The profit before tax was NOK - 58.0 million (NOK 16.9 million).

Result year to date 2021

• Total operating income amounted to NOK 400.6 million (NOK 598.5 million).

• Total operating expenses were NOK 276.9 million whereof NOK - 24.5 million is change of loss on trade receivables (NOK 451.1 million whereof NOK 101.4 million is change of loss on trade receivables). Ordinary operating expenses amounts to NOK 301.3 million (NOK 349.7 million).

• The operating profit before depreciation was NOK 123.7 million (NOK 147.4 million).

• Depreciation was NOK 183.8 million (NOK 261.9 million).

• Impairment charge of fixed assets was NOK 25.5 million (NOK 521.0 million).

• Net financial items were NOK - 30.6 million (NOK 1,878.5 million), whereof unrealized agio loss was NOK 17.8 million (unrealized agio loss NOK 61.2 million) and value adjustment of debt NOK - 6.0 million (NOK 2,064.4 million related to the implementation effects of the restructuring agreement with the company’s lenders).

• The profit before tax was NOK -116.9 million (NOK 1,243.1 million).

Balance and liquidity per 30/09/21

Total current assets amounted to NOK 288.8 million on 30/09/21, whereof bank deposits were NOK 83.8 million (of this NOK 0.5 million restricted withholding tax and NOK 3.4 restricted cash related to interest and instalment payments). On 30/09/20, total current assets amounted to NOK 295.0 million, whereof bank deposits amounted to NOK 139.5 million (of this NOK 1.2 million restricted withholding tax).

Net cash flow from operations was in 2021 NOK 77.3 million (NOK 94.1 million). Cash flow from investing activities was NOK -26.4 million (NOK -33.1 million). Payment of loan instalments and lease liabilities constituted a net change from financing activities of NOK -73.4 million (NOK - 27.6 million whereof NOK 100.0 million was raising a convertible shareholder loan).

As of 30/09/21, the book value of the fleet is NOK 1,684 million.

Total long-term loan debt recognized in the balance sheet was per 30/09/21 NOK 1,726.5 million, of which interest-bearing debt amounts to NOK 1,635.2 million and non-interest-bearing debt NOK 91.3 million. As of 30/09/21, nominal value of interest-bearing debt was NOK 2,640.0 million, and nominal value of non-interest-bearing debt was NOK 1,455.4 million. Of nominal interest-bearing debt 15.9 % are loans in USD, while the remaining loans are in NOK. Secured debt are classified as long-term debt, except from known instalments which is classified as short term debt.

Fleet

Havila Shipping ASA operates 23 vessels,

14 PSV (whereof one was sold in November 2021)

- Four owned externally

- One owned 50% and not consolidated

5 AHTS

3 Subsea (one hired out on bareboat contract)

1 RRV (bareboat)

Employees

Havila Shipping ASA had per 30/09/21 411 employees on the company’s vessels and 16 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

• HAVIQ321