Havila Shipping ASA: Fourt quarter 2022 report/2022 Preliminary report

28 Feb 2023 14:37 CET

Summary
The market for the company's vessels has been variable in the fourth quarter.
The company has been exposed to a limited extent in the spot market. Income and
profit are affected to a significant extent by the sale of vessels, and reversed
write-downs of vessels. Reversed write-downs result from increased income
estimates and also result in an increased debt value.

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 the fourth quarter.
Another vessel has been agreed sold, and was delivered to the new owner in
January 2023. The vessel is per 31/12/22 classified as assets held for sale.
After the maximum reversal of historical impairment charges, the book amount is
lower than the sales value. The debt is recognized at fair value, which is
approximately equal to the sales value. As a result of the debt associated with
this vessel being valued at fair value as of 31/12/22, while the book value of
the vessel is limited to the original depreciation plan, the group will have
negative equity at the end of 2022. The group's equity became positive again
when a significant gain on sale of assets is booked upon delivery of the vessel
in January 2023.

Havila Shipping ASA achieved an operating income before depreciation of NOK
50.4 million in Q4 2022, compared with NOK 36.4 million in Q4 2021.

* Total operating income was NOK 171.9 million in Q4 2022, compared with NOK
144.9 million in Q4 2021.
* The group had as of 31/12/22 17 vessels operated from Fosnavåg, six for
external owners.
* The fleet utilization in Q4 2022 was 89 %.

Result for 4 quarter 2022

* Total operating income amounted to NOK 171.9 million, whereof NOK 22.1
million is gain on sale of fixed assets (NOK 144.9 million).
* Total operating expenses were NOK 121.5 million (NOK 108.5 million).
* Operating profit before depreciation was NOK 50.4 million (NOK 36.4
million).
* Depreciation was NOK 37.7 million (NOK 48.3 million).
* Reversal of impairment charge of fixed assets was NOK 226.0 million (NOK
260.8 million).
* Net financial items were NOK - 323.0 million (NOK - 11.5 million), whereof
unrealized agio gain was NOK 72.6 million (unrealized agio loss NOK 3.7
million), and value adjustment of debt was NOK - 388.7 million (NOK - 13.4
million).
* The profit before tax was NOK - 80.5 million (NOK 65.7 million).

Result 2022

* Total operating income amounted to NOK 824.4 million (NOK 545.5 million).
* Total operating expenses were NOK 427.0 million whereof NOK - 21.2 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 395.7 million whereof NOK - 24.5 million is change of loss on trade
receivables). Ordinary operating expenses amounts to NOK 448.3 million (NOK
409.8 million).
* The operating profit before depreciation was NOK 397.4 million (NOK 160.1
million).
* Depreciation was NOK 183.7 million (NOK 203.6 million).
* Reversal of impairment charge of fixed assets was NOK 226.0 million (NOK
235.3 million).
* Net financial items were NOK - 545.1 million (NOK - 124.7 million), whereof
unrealized agio loss was NOK 76.6 million (unrealized agio loss NOK 21.5
million) and value adjustment of debt NOK - 456.5 million (NOK - 102.1
million).
* The profit before tax was NOK - 111.8 million (NOK 65.8 million).

Balance and liquidity per 31/12/22
Total current assets amounted to NOK 698.3 million on 31/12/22, whereof bank
deposits were NOK 147.4 million (whereof NOK 70.8 million restricted cash
related to withholding tax, interest and instalment payments and deposit in
connection with sale of vessel). On 31/12/21, total current assets amounted to
NOK 245.2 million, whereof bank deposits amounted to NOK 100.9 million (of this
NOK 5.4 million restricted cash related to withholding tax).

Net cash flow from operations was per 31/12/22 NOK 229.7 million (NOK 126.5
million). Cash flow from investing activities was NOK - 35.2 million (NOK -
34.2 million). Payment of loan instalments and lease liabilities constituted a
net change from financing activities of NOK - 144.9 million (NOK - 98.2
million).

As of 31/12/22, the book value of the fleet is NOK 1,140 million.

Total long-term loan debt recognized in the balance sheet was per 31/12/22 NOK
1,677.7 million, of which interest-bearing debt amounts to NOK 1,578.6 million
and non-interest-bearing debt NOK 99.1 million. As of 31/12/22, nominal value of
interest-bearing debt was NOK 1,781.0 million, and nominal value of non-
interest-bearing debt was NOK 1,657.1 million. Of nominal interest-bearing debt
29.5 % 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 owned externally
- One hired out on bareboat contract
1 RRV (bareboat)

Employees

Havila Shipping ASA had per 31/12/22 382 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

More information:
Access the news on Oslo Bors NewsWeb site

583873_HAVI Q422.pdf