Havila Kystruten AS: Third quarter 2025 accounts
Summary Q3 2025
Havila Kystruten (HKY) continued its strong trajectory into the third quarter of 2025, delivering robust operational performance and a significant increase in earnings. The Group reported a positive EBITDA of MNOK 283, compared to MNOK 128 in Q3 2024 and a substantial sequential improvement from MNOK 79 recorded in Q2 2025.
Revenue Growth and Operational Performance
Operational top-line growth continued its positive trajectory, with operational revenues reaching MNOK 416, an increase of 13% year-over-year. Adjusted for accounting effects, the operational revenue growth was about 20% year-over-year. The growth in operating revenues was driven by solid demand, with a 5% increase in passenger nights and a 17% rise in the average cabin rate (ACR).
Occupancy across the fleet improved to 80% (up from 78%), while the cabin factor increased from 1.86 to 1.89. Operational efficiency across the fleet was very high, with 100% uptime recorded during the quarter, and the southbound route demonstrated particularly strong performance following targeted initiatives. Onboard sales increased by 7% year-over-year.
Government contract revenue increased during the quarter, due to recognition of a compensation adjustment of MNOK 146 out of a total of MNOK 161. Of this amount, MNOK 103 relates to prior years, while MNOK 43 pertains to the first three quarters of 2025. The adjustment follows a completed review of the calculation basis for the coastal route contract with the Ministry of Transport and Statistics Norway. The remaining MNOK 15 of the announced adjustment will be recorded in Q4 2025. Following the review, projected contract revenue for 2026 has been revised to MNOK 426, reflecting a positive adjustment of MNOK 60 compared to earlier expectations.
Cost Structure and Expense Drivers
Total operating expenses increased by 9% compared to Q3 2024. The largest percentage increase was in Cost of Goods Sold (COGS), which rose by 20% as a direct consequence of the growth in passenger numbers. Payroll and other personnel expenses increased by 5%, driven by higher seasonal staffing and general wage growth.
Other operating expenses increased by 9%, primarily due to advisory and legal fees related to the refinancing process, as well as higher maintenance costs. Bunker and port fees increased by 8%, mainly due to higher bunker costs—both from logistical costs caused by a shutdown of the LNG production facility Melkøya in Hammerfest and from a 20% increase in CO₂ tax on LNG fuel vs. last year.
Financing and Capital Structure
In July 2025, the Company executed an amendment agreement related to its secured bond. Following this amendment, the new principal amount was MEUR 326, including fees, accrued interest, and the call premium on the original bond. As a result, the Company’s reported book equity stood at a negative MNOK 1 232 at the end of September 2025. However, when considering the market value of the vessels, the value-adjusted equity is estimated positive MNOK 2,783.
Sustainability and Efficiency
HKY continues to make strides in its sustainability efforts. The Group successfully reduced CO₂ emissions by 38% in the quarter compared to the 2017 Coastal Route baseline. Furthermore, the Company achieved its ambitious goal of reducing food waste to less than 75 grams per guest per day, with the actual third-quarter result reaching 60 grams.
Employees
Havila Kystruten had a total of 575 permanent employees as of September 30, 2025, of which 518 were seafarers and 57 in the administration.
Subsequent events and trading outlook
On 7 November 2025, the Company completed a reverse stock split to support a more robust price formation in its shares. The split consolidated 50 existing shares with a nominal value of NOK 1.00 into one share with a nominal value of NOK 50.00, following approval by the extraordinary general meeting.
On November 18th, the Company entered a comprehensive refinancing of its outstanding debt totalling MEUR 456. The transaction was closed on 24 November 2025. The structure provides the Company with a 15-year financing with Havila Holding AS, providing stability and flexibility to the Company, while also containing flexibility for potential refinancing during the facility period. The facility is divided into a senior tranche of MEUR 250, a senior tranche of MUSD 105 and a junior tranche of MEUR 116. It is structured as a financial lease matching both the revenue streams of the Company and the residual value of the vessels (see Note 11 for details).
As of today, 72% of the capacity for 2025 is booked, which corresponds to 96% of the annual target for cabin nights. Occupancy for the fourth quarter is currently at 69%, with more than one month remaining in the quarter.
For 2026, 44% of capacity is already booked - about 5% higher than at the same time last year - following a successful sales and marketing campaign in the fall. These early bookings provide a basis for expectations of continued top-line growth and improved EBITDA margins next year.
The market for travel to Norway continues to grow, and Havila Kystruten’s modern, environmentally friendly fleet has been well received—evidenced by multiple international awards. The Company’s strong sustainability profile provides a clear competitive advantage, supporting both price increases and higher occupancy.
With a more experienced organization and ongoing improvements to digital sales channels, the focus remains on increasing direct bookings, which historically yield higher prices closer to departure. The Company will continue to actively balance occupancy and pricing to optimize margins throughout the year.
Efforts to boost onboard sales will continue throughout the year and into 2026, with targeted pricing strategies and product promotions aimed at increasing revenue from ancillary services and guest experiences.
The strategy of offering shorter trips is well established and under further development. During the summer season, sales of shorter voyages increased by over 40%, confirming strong market interest. This segment shows significant potential for boosting occupancy and attracting a broader customer base with a lower average age—particularly among travellers with high willingness to pay. Targeted marketing and commercial initiatives have been implemented to capitalize on this opportunity.
Contacts:
Chief Executive Officer: Bent Martini,
Chief Financial Officer: Aleksander Røynesdal, 114
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