Havila Kystruten AS: First quarter 2024 accounts

30 May 2024 18:14 CEST

Summary

The company has now completed its second quarter all four ships in full
operation, and the positive development in operations continues. Revenues
amounted to MNOK 293 in the first quarter of 2024, an increase of 17 % compared
to the last quarter of 2023. The revenue growth is driven by a higher occupancy
rate, 68 % compared to 60 % in the previous quarter, as well as a higher average
cabin rate (ACR) of NOK 3 900 compared to NOK 3 100 in the last quarter of
2023. Occupancy and average cabin price are also higher than in the first
quarter of 2023. Contract revenues are CPI-adjusted relative to 2023.

The company simultaneously sees good potential for further increases in ACR, as
realized prices are still influenced by ticket sales from previous years. In
cases of cancellations, guests had to be rebooked at the same price, and for
larger groups, the realized price was lower to build the brand and a base
occupancy. However, trips sold through own channels shortly before departure
achieve significantly better prices.

Operating costs amounted to MNOK 310 in the first quarter and mainly consist of
ordinary operating costs for four ships. Some of these costs are tied to the
number of passengers, while the largest cost items are not significantly
affected by occupancy. Higher occupancy has led to an increase in both wage
costs and cost of goods, which together are MNOK 28 higher than in the last
quarter of last year. Wage costs are also affected by the training of personnel
for the main season as well as slightly higher absenteeism in the winter months.
LNG costs were MNOK 15 higher in the first quarter compared to the last quarter
of last year, due to additional costs for securing prices in the market.

EBITDA was negative at MNOK 17.5, an improvement of MNOK 16 compared to the
fourth quarter of last year (negative MNOK 33.2).

The result and the balance sheet are significantly affected by fluctuations in
exchange rates, especially the value of the Norwegian kroner against the euro,
which creates unrealized foreign exchange loss since the ship financing is in
euros.

The fleet's operational uptime was 99.5 % for the first quarter. The reduction
in CO2 emissions compared to the reference year 2017 was 36 %. The company's
goal of less than 75 grams of food waste per guest night was achieved in the
first quarter (68 grams).

Based on a good trend in booking numbers, with 66 % of capacity sold for 2024 in
total by the end of May, an average occupancy rate just under 80 % is expected
for 2024.

In April 2024, the company completed a refinancing of Series B of the bond loan
from HPS Investment Partners. Series B consists of MEUR 50 with maturity in
October 2024. The company considered various options within the scope of the
loan agreement with HPS and decided that taking up equivalent financing from
Havila Holding AS was the preferred solution for the company and shareholders.
The shareholder loan runs until July 2028. The company has also secured a credit
facility of MNOK 200 from Havila Holding AS. The credit facility provides the
company with increased financial flexibility to manage seasonal liquidity
fluctuations and has a term until January 2027.

Results for the first quarter of 2024

* Revenue totalled MNOK 293, of which MNOK 97 was revenue from the Ministry of
Transport.
* Total operating costs consisted of MNOK 42 in cost of goods sold, MNOK 103
in salary costs, and MNOK 165 in other operating costs.
* Operating profit before depreciation was MNOK - 17,5.
* Depreciation was MNOK 40.
* Net financial items were MNOK - 301.
* Profit before tax was MNOK - 358.

Balance sheet and liquidity as of 31.03.2024

* Total fixed assets were MNOK 4 307, of which ships accounted for MNOK 4 246.
* Current assets were MNOK 384, of which cash and cash equivalents accounted
for MNOK 192, of which MNOK 8.9 are restricted funds for tax deductions.
* The carrying amount of long-term debt was MNOK 3 304, of which debt to
financial institutions amounted to MNOK 3 011.
* Total current liabilities were MNOK 1 280, of which the current part of the
non-current debt amounted to MNOK 698.
* Net cash flow from operating activities was MNOK 141. Other accrued items
are mainly related to advance payments for future voyages.
* Net cash flow from investing activities was MNOK - 11.
* Net cash flow from financing activities was MNOK 89.

Employees

Havila Kystruten had a total of 507 permanent employees as of March 31, 2024, of
which 463 were seafarers and 44 were in administration.

Contacts:

Chief Executive Officer: Bent Martini, +47 905 99 650

Chief Financial Officer: Aleksander Røynesdal, +47 413 18 114

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

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