Havila Shipping ASA: Third quarter 2022 accounts

Summary

The market for the company’s vessels in the third quarter has been better in all segments than the corresponding period in 2021. Revenues and profit are significantly affected by the sale of vessels.

Agreement with lenders entered into in 2020 clarifies the company’s obligations towards the lenders for the period until 2024. Five vessels that have been in lay-up, of which 3 AHTS and 2 PSV, have been sold. Of these, 3 vessels were delivered to new owners in the second quarter, one vessel was delivered in the third quarter and one vessel was delivered in October. Another vessel has been agreed to be sold and is expected to be delivered to the new owner around the turn of the year.

Havila Shipping ASA achieved an operating income before depreciation of NOK 105.2 million in Q3 2022, compared with NOK 53.7 million in Q3 2021.

Total operating income was NOK 217.4 million in Q3 2022, compared with NOK 154.8 million in Q3 2021.

The group had as of 30/09/22 18 vessels operated from Fosnavåg, six for external owners.

The fleet utilization Q3 2022 was 88 % exclusive vessels in lay-up.

Result for 3 quarter 2022

• Total operating income amounted to NOK 217.4 million, whereof NOK 17.2 million is gain on sale of fixed assets (NOK 154.8 million).
• Total operating expenses were NOK 112.2 million (NOK 101.1 million). 
• Operating profit before depreciation was NOK 105.2 million (NOK 53.7 million).
• Depreciation was NOK 42.9 million (NOK 52.6 million).
• Impairment charge of fixed assets was NOK 0 million (NOK 25,5 million).
• Net financial items were NOK - 103.8 million (NOK - 34.6 million), whereof unrealized agio loss was NOK 64.9 million (unrealized agio loss NOK 20.1 million), and value adjustment of debt was NOK - 38.1 million (NOK - 15.8 million).
• The profit before tax was NOK - 48.6 million (NOK - 59.5 million).

Result year to date 2022

• Total operating income amounted to NOK 652.6 million (NOK 400.6 million).
• Total operating expenses were NOK 305.5 million whereof NOK - 20.8 million is reimbursement of costs from the banks for the vessels in lay-up. This reimbursement is divided between NOK 7.1 million on crew expenses, NOK 9.0 million on vessel expenses and NOK 4.7 million on other operating expenses. (NOK 276.9 million whereof NOK - 24.5 million is change of loss on trade receivables). Ordinary operating expenses amounts to NOK 326.3 million (NOK 301.3 million).
• The operating profit before depreciation was NOK 241.9 million (NOK 70.0 million).
• Depreciation was NOK 146.0 million (NOK 155.3 million).
• Impairment charge of fixed assets was NOK 0 million (NOK 25.5 million).
• Net financial items were NOK - 222.1 million (NOK - 113.2 million), whereof unrealized agio loss was NOK 149.2 million (unrealized agio loss NOK 17.8 million) and value adjustment of debt NOK - 67.8 million (NOK - 88.7 million).
• The profit before tax was NOK - 31.2 million (NOK - 171.0 million).

Balance and liquidity per 30/09/22

Total current assets amounted to NOK 695.3 million on 30/09/22, whereof bank deposits were NOK 215.7 million (whereof NOK 74.7 million restricted cash related to withholding tax, interest and instalment payments and deposit in connection with sale of vessel). On 30/09/21, total current assets amounted to NOK 288.8 million, whereof bank deposits amounted to NOK 83.8 million (of this NOK 3.9 million restricted cash related to withholding tax and interest and instalment payments).

Net cash flow from operations was per 30/09/22 NOK 200.3 million (NOK 77.3 million). Cash flow from investing activities was NOK 3.4 million (NOK - 26.4 million). Payment of loan instalments and lease liabilities constituted a net change from financing activities of NOK - 92.9 million (NOK - 73.4 million).

As of 30/09/22, the book value of the fleet is NOK 999 million. In 2021, the company carried out new impairment assessments on 31.12.19 and 30.06.20 following orders from Finanstilsynet. The effects of the changes are shown in note 7.

Total long-term loan debt recognized in the balance sheet was per 30/09/22 NOK 1,452.6 million, of which interest-bearing debt amounts to NOK 1,359.3 million and non-interest-bearing debt NOK 93.3 million. As of 30/09/22, nominal value of interest-bearing debt was NOK 1,994.3 million, and nominal value of non-interest-bearing debt was NOK 1,664.7 million. Of nominal interest-bearing debt 21.5 % 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 today 17 vessels,

• 11 PSV
  • Four owned externally
  • One owned 50% and not consolidated
• 2 AHTS
• 3 Subsea (one hired out on bareboat contract)
• 1 RRV (bareboat)

Employees

Havila Shipping ASA had per 30/09/22 399 employees on the company’s vessels and 15 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 Q322