Havila Kystruten AS: Fourth quarter 2024 accounts

Summary

Following several challenging years marked by external factors impacting both the delivery and financing of its new, environmentally friendly coastal cruise ships, 2024 represents the first full year of operation for all four of Havila Kystruten AS's vessels along the Norwegian coast. In its first year of full operation, the fleet achieved excellent operational uptime, reaching 100% in the fourth quarter and 98% for the year. This reflects a well-prepared crew, an efficient onshore organization, and positive collaboration with customers and partners along the coast. Collectively, these elements form the foundation for the company's value creation for shareholders, travellers, and the communities it serves.

Fourth-quarter revenue totalled NOK 403 million, a substantial increase from NOK 249 million in the same period of 2023.  

Total 2024 revenue reached NOK 1,529 million, up from NOK 764 million the previous year. Fourth-quarter EBITDA reached NOK 50 million, a significant improvement from negative NOK 33 million in Q4 2023. For the full year, EBITDA was NOK 219 million, significally up from NOK negative 180 million in 2023.

These financial results reflect the company's ongoing start-up phase. Key performance indicators (KPIs) demonstrated steady improvement throughout the year, adjusted for seasonal variations. Occupancy rose to 78% in the fourth quarter of 2024, compared to 63% in the same period of 2023, with a full-year average of 73%, up from 65% the previous year.

Average cabin revenue (ACR) showed solid growth, reflecting the completion of previously low-price bookings from 2023 and earlier, and the company's ability to increase underlying price levels. Average cabin revenue increased from NOK 2,650 to NOK 3,800 in the quarter, and from NOK 3,300 to NOK 4,300 for the full year.

Onboard sales per guest night continued to grow. The full-year average was NOK 710, a marked improvement from NOK 670 in 2023. Fourth-quarter 2024 was somewhat impacted by adverse weather conditions, with average sales per guest night at NOK 640, compared to NOK 650 in Q4 2023. Cabin factor (passengers per cabin) also increased, reaching 1.85 in the fourth quarter compared to 1.75 the previous year, and 1.82 for the full year versus 1.74 in 2023.

Fourth-quarter operating expenses were NOK 352 million, up from NOK 283 million in the same period of the prior year. Total 2024 operating expenses were NOK 1,310 million, compared to NOK 944 million in 2023. Operating expenses primarily consist of fixed costs. The delivery of the final two vessels in Q3 2023 have impacted cost levels, while higher occupancy, increased onboard activity, and annual wage adjustments contributed to the overall cost increase. Variable costs are mainly related to fuel (LNG). Currently, the company does not hedge LNG prices but has a built-in annual adjustment mechanism within its contract with the government.

Currency fluctuations, particularly between the Norwegian krone and the euro, impact both results and the balance sheet, resulting in unrealized currency losses for the quarter and the year, negatively affecting equity. Adjusted for vessel values, including broker valuations and estimated newbuild costs of just under EUR 700 million, the company's adjusted equity remains significantly positive estimated at NOK 3,751 million.

Fourth-quarter CO2 emissions were reduced by 33% compared to Kystruten's 2017 reference figures, exceeding the concession requirements, which stipulate a 25% reduction. Utilizing LNG as fuel eliminates particulate emissions. The company maintained its target of reducing food waste to below 75 grams per guest day, with a fourth-quarter result of 70 grams.

Future Development

Demand for travel to Norway is growing, and Havila Kystruten's modern and environmentally friendly ships have gained wide recognition and won several international awards. The company's sustainable profile strengthens its growth potential, with opportunities for both further price increases and higher occupancy. Havila Kystruten is actively working towards achieving climate-neutral operation by 2028 and is exploring opportunities to profitably integrate biogas as fuel in the coming years.

The company aims to increase revenue through its digital sales platforms and direct bookings, which have historically yielded higher prices closer to departure. This strategy balances price and occupancy throughout the year to maximize margins.

As of February 2025, 53% of capacity is already booked for the year, and the target for 2025 is an occupancy rate exceeding 75%. Bookings between northbound and southbound routes are currently more balanced than in 2024, enabling more efficient operational planning and optimization of the high season, where the northbound route is particularly popular.

Average cabin revenue is expected to increase by 20–30% in 2025, driven by price adjustments and the phasing out of previous low-price bookings. The price adjustments are possible due to the low starting point, where it was crucial to build occupancy during the start-up phase. In addition, we see an increased willingness to pay for travel with ships that deliver on sustainable operations, with reduced emissions, onboard quietness, a unique and award-winning food concept, spacious cabins, and the generally ample space onboard in the common areas.

Havila Voyages offer of shorter trips, often combined with activities before and after boarding, attracts a younger clientele. The average age of travellers in 2024 was 54 years, significantly lower than the historical average for the coastal route. This focus on shorter trips opens up new commercial opportunities, as travellers in this group have a higher willingness to pay. The younger customer group also has higher demands for onboard activities, giving the company opportunities to implement measures to increase onboard sales. Through targeted pricing strategies and product improvements, the company will increase revenue from onboard services and experiences.

Employees

Havila Kystruten had a total of 542 permanent employees as of December 31, 2024, of which 488 were seafarers and 54 in administration.

Contacts:

Chief Executive Officer: Bent Martini,

Chief Financial Officer: Aleksander Røynesdal,  114

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