Havila Shipping ASA: Fourth quarter 2023 accounts

Summary

• The fright revenues in the fourth quarter were NOK 148 million, an increase of NOK 5 million compared to the corresponding period last year.
• Three vessels were sold and delivered to the new owner after the lenders demanded that the vessels be sold in accordance with the current restructuring agreement.
• Freight revenues is reduced by NOK 22 million compared to the third quarter. Operating expenses were NOK 89 million in the fourth quarter, a reduction compared to the fourth quarter last year and the previous quarter of NOK 33 million and NOK 30 million, respectively.
• Havila Shipping ASA achieved an operating income before depreciation of NOK 73 million in Q4 2023, compared with NOK 50 million in Q4 2022.
• Based on the market development, income expectations have increased, and have resulted in the reversal of previous write-downs on vessels with NOK 400 million in the fourth quarter against NOK 226 million in the corresponding period last year.
• Value adjustment of the debt in the fourth quarter amounts to NOK 479 million compared to NOK 389 million in the corresponding period last year.
• Profit before tax was NOK - 29 million in Q4 2023, compared with NOK - 81 million in Q4 2022.
• The group had as of 31/12/23 14 vessels operated from Fosnavåg, six for external owners.
• The fleet utilization in Q4 2023 was 93 %.

• Debt to credit institutions falls due on 31 December 2024. The debt with associated conversion rights is classified as short-term debt per 31/12/23.
• The company has received offer for refinancing which the company can choose to use to refinance the debt at the end of the agreement period.

Result for 4 quarter 2023

• Total operating income amounted to NOK 162.2 million whereof NOK 5.8 million was gain on sale of fixed assets (NOK 171.9 million whereof NOK 22.1 million was gain on sale of fixed assets).
• Total operating expenses were NOK 89.3 million (NOK 121.5 million).
• Operating profit before depreciation was NOK 72.9 million (NOK 50.4 million).
• Depreciation was NOK 24.2 million (NOK 37.7 million).
• Reversal of impairment charge of fixed assets was NOK 400,0 million (NOK 226.0 million).
• Net financial items were NOK - 478.8 million (NOK - 323.0 million) whereof unrealized agio gain NOK 65.3 million (unrealized agio gain NOK 72.6 million), and value adjustment of debt was NOK - 478.7 million (NOK - 388.7 million).
• The profit before tax was NOK - 28.7 million (NOK - 80.5 million).

Result 2023

• Total operating income were NOK 919.2 million (NOK 824.4 million).
• Total operating expenses were NOK 431.2 million (NOK 427.0 million whereof NOK - 21.2 million s 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 9.1 million on vessel expenses and NOK 5.0 million on other operating expenses. Ordinary operating expenses amounts to NOK 448.3 million).
• The operating profit before depreciation was NOK 488.1 million (NOK 397.4 million).
• Depreciation was NOK 131.6 million (NOK 183.7 million).
• Reversal of impairment charges of fixed assets were NOK 865.0 million (NOK 226.0 million).
• Net financial items were NOK - 1,105.3 million (NOK - 545.1 million), whereof unrealized agio gain was NOK 65.5 million (unrealized agio loss NOK 76.6 million) and value adjustment of debt NOK - 1,080.8 million (NOK - 456.5 million).
• The profit before tax was NOK 113.1 million (NOK - 111.8 million).

Balance and liquidity per 31/12/23
Total current assets amounted to NOK 280.4 million on 31/12/23, whereof bank deposits were NOK 97.7 million (whereof NOK 10,4 million restricted cash related to withholding tax). On 31/12/22, total current assets amounted to NOK 768.9 million, whereof bank deposits amounted to NOK 147.4 million (of this NOK 70.8 million restricted cash related to withholding tax, interest and instalment payments and deposit in connection with sale of vessel).

Net cash flow from operations was per 31/12/23 NOK 88.7 million (NOK 216.8 million). Cash flow from investing activities was NOK - 12.5 million (NOK - 22.2 million). Payment of loan instalments and lease liabilities constituted a net change from financing activities of NOK - 127.6 million (NOK - 144.9 million).

As of 31/12/23, the book value of the fleet is NOK 1,077 million.

All long-term loan debt is recognized as short-term debt in the balance sheet per 31/12/23. The current liabilities of long-term debt of NOK 1,234.0 consist of interest-bearing debt of NOK 590.8 million and non-interest-bearing debt NOK 392.8 million, as well as convertible liquidity loan of NOK 250.0 million and accrued interests of NOK 0.4 million. As of 31/12/23, nominal value of interest-bearing debt was NOK 568.3 million, and nominal value of non-interest-bearing debt was NOK 1,333.4 million. All nominal interest-bearing debt is in NOK.

Fleet
Havila Shipping ASA operates today 14 vessels,

10 PSV
- Four owned externally
- One owned 50% and not consolidated
3 Subsea
- One owned externally
- One hired out on bareboat contract
1 RRV (bareboat)

Employees
Havila Shipping ASA had per 31/12/23 262 employees on the company's vessels and 14 employees in the administration.

Contacts:
Chief Executive Officer Njål Sævik, [phone]
Chief Financial Officer Arne Johan Dale, [phone]

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act