Havila Shipping ASA: Third quarter 2020 accounts

Summary

The sharp fall in oil prices and the outbreak of the Covid-19 virus in the first quarter have reduced activity in the market in where the vessel operates. Reduced demand for vessels has a negative effect on the company. The market outlook was reassessed in the second quarter and led to a write-down of the value for most vessels. The assessments were maintained in the third quarter.

The agreement on restructuring of the company’s debt was implemented on 30/06/20 and clarifies the company’s obligations to lenders for the period until 2024. The calculated effect of the agreements means that book equity is positive at the end of 2nd quarter. The implementation effect of the agreement was incorporated in the accounts for the second quarter. Financial expenses in the accounts consist of a change in the calculated present value of estimated debt service for the vessels during the agreement period.

Havila Shipping ASA achieved an operating income before depreciation of NOK 36.4 million in Q3 2020, compared with NOK 92.9 million in Q3 2019.

Total operating income was NOK 188.7 million in Q3 2020, compared with NOK 211.5 million in Q3 2019.

The group had as of 30/09/20 23 vessels operated from Fosnavåg, six for external owners.

The group had 3 AHTS and 4 PSV vessels laid up at the end of Q3 2020.

The fleet utilization Q3 2020 was 87 % exclusive vessels in lay-up.

Result for 3 quarter 2020.

• Total operating income amounted to NOK 188.7 million (NOK 211.5 million).
• Total operating expenses were NOK 152.3 million whereof NOK 48.7 million is provision for loss on receivables. Ordinary operating expenses amounts to NOK 103.6 million (NOK 118.6 million).
• Operating profit before depreciation was NOK 36.4 million (NOK 92.9 million).
• Depreciation was NOK 87.4 million (NOK 81.2 million).
• Net financial items were NOK 68.0 million (NOK -110.7 million), whereof unrealized agio gain was NOK 19.6 million (unrealized agio loss NOK 51.7 million), and value adjustment of debt was NOK 47.9 million (NOK 0).
• The profit before tax was NOK 16.9 million (NOK -100.0 million).

Result year to date

• Total operating income amounted to NOK 598.5 million (NOK 551.3 million).
• Total operating expenses were NOK 451.1 million whereof NOK 101.4 million is provision for loss on receivables. Ordinary operating expenses amounts to NOK 349.7 million (NOK 348.6 million).
• The operating profit before depreciation was NOK 147.4 million (NOK 202.7 million).
• Depreciation was NOK 261.9 million (NOK 241.3 million).
• Impairment charge of fixed assets was NOK 521.0 million (NOK 0).
• Net financial items were NOK 1,878.5 million (NOK -208.0 million), whereof unrealized agio loss was NOK 61.2 million (unrealized agio loss NOK 35.6 million) and value adjustment of debt related to the implementation effects of the restructuring agreement with the company’s lenders was NOK 2,064.4 million (NOK 0).
• The profit before tax was NOK 1,243.1 million (NOK -249.4 million).

Balance and liquidity per 30/09/20

Total current assets amounted to NOK 295.0 million on 30/09/20, whereof bank deposits were NOK 139.5 million (of this NOK 1.2 million restricted withholding tax). On 30/09/19, total current assets amounted to NOK 379.6 million, whereof bank deposits amounted to NOK 92.5 million (of this NOK 0.8 million restricted).

Net cash flow from operations was year to date NOK 94.1 million (NOK 43.1 million). Cash flow from investing activities was NOK -33.1 million (NOK -17.9 million). Payment of loan instalments and lease liabilities, and raising a covertible shareholder loan constitute a net change from financing activities of NOK -27.6 million (NOK -18.2 million).

The book value of the fleet is NOK 2,230 million after impairment charge of NOK 521 million in the 2nd quarter.

Total long-term debt recognized in the balance sheet was per 30/09/20 NOK 2,069.9 million, of which interest-bearing debt amounts to NOK 1,922.4 million and non interest-bearing debt NOK 147.5 million.

As of 30/09/20, nominal value of interest-bearing debt was NOK 2,948.8 million, and nominal value of non interest-bearing debt was NOK 1,233.6 million. Of nominal interest-bearing debt 21.4 % 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

-                     Four owned externally

-                     One owned 50% and not consolidated

•                      5 AHTS

•                      3 Subsea

•                      1 RRV (bareboat)

Employees

Havila Shipping ASA had per 30/09/20 377 employees on the company’s vessels and 33 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

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