Havila Kystruten AS: First quarter 2025 accounts

27 May 2025 23:48 CEST

Summary
Havila Kystruten delivered further improvements in both revenue and
profitability in the first quarter of 2025. The company reported a strengthened
operating result (EBITDA), primarily driven by top-line growth.

In Q1 2025, Havila Kystruten generated revenues of MNOK 350, an increase of 20%
from MNOK 293 in the same period last year. The growth was mainly due to a 35%
increase in average cabin revenue (ACR), which rose from NOK 3,350 to NOK
4,600. Onboard sales per guest night remained stable compared to last year,
despite expected growth. More challenging weather than normal resulted in
cancelled excursions, thus negatively impacting onboard sales.

The occupancy rate ended at 61%, down from 68% in Q1 2024. The decline was due
to an unusually high occupancy last year, partly because of rebooked guests
following previous cancellations, but with lower ACR. However, it is worth
noting a better balance in booking between northbound and southbound routes in
2025, due to several successful initiatives. The cabin factor (guests per cabin)
increased from 1.77 to 1.86.

Operating costs in the first quarter amounted to MNOK 339, up from MNOK 310 in
the same period last year. Wage costs increased by MNOK 11, driven by general
wage growth and strengthening of the organization. Wage costs are expected to
stabilize going forward. Other operating expenses increased by MNOK 15, mainly
due to higher sales and marketing costs as well as generally increased operating
expenses, including maintenance. Fuel costs (LNG) were MNOK 10 higher than
expected, due to low LNG stocks in Europe during the winter. These costs are
expected to decline in coming quarters based on forward market pricing.

The first quarter of 2025 resulted in an EBITDA of MNOK 11, a significant
improvement from negative MNOK 18 in the same period in 2024, underlying the
positive trajectory for the company.

The company's results and balance sheet continue to be affected by currency
fluctuations, particularly between NOK and EUR, which in the first quarter led
to an unrealized foreign exchange gain. The company's value-adjusted equity is
solidly positive at MNOK 3,419, based on market-adjusted vessel values using
external broker assessments and indicative newbuild costs totaling MEUR 692.

Operational efficiency in the fleet was very high during the quarter, with 100%
operational uptime, excluding weather related cancellations. At the same time,
Havila Kystruten continued its targeted sustainability efforts. CO? emissions
were reduced by 35% compared to the baseline figures from Coastal Route in
2017. The company also achieved its ambitious target to reduce food waste to
under 75 grams per guest night, with an actual result of 68 grams in the first
quarter.

The company has initiated preparations to refinance its existing secured debt
and has engaged advisors to identify a suitable long-term solution tailored to
both the company's situation and the secured debt market. This preparatory work
has resulted in some increased administrative costs in the first quarter.

Trading outlook
As of today, 61% of capacity for 2025 is booked, corresponding to approximately
81% of the annual target for cabin nights. Occupancy for Q2 2025 currently
stands at 73% with one month remaining in the quarter, compared to 69% in the
same period last year. A more balanced distribution between northbound and
southbound routes has increased flexibility and enabled more sales closer to
departure. At the same time, campaigns for Q4 started later than last year,
which is expected to contribute to increased annual occupancy.

For 2026, 21% of capacity is already booked at significantly higher average
prices (ACR) than for 2025. Early bookings provide a basis for expectations of
continued top-line growth and improved EBITDA margins.

The market for travel to Norway is growing. Havila Kystruten's modern and
environmentally friendly fleet has been well received, as documented by several
international awards. The company's sustainability profile provides a clear
competitive advantage that strengthens opportunities for price increases and
higher occupancy.

With an increasingly experienced organization and continuous improvements in
digital sales channels, the focus is on increasing direct bookings, which
historically have yielded higher prices closer to departure. The company will
actively balance occupancy and price to maximize margins throughout the year.

Measures to increase onboard sales are ongoing, with targeted pricing and
product promotion initiatives aimed at increasing revenue from ancillary
services and experiences.

The strategy of shorter trips is established and under development. There is
considered significant potential for increased occupancy and a broader customer
base with a lower average age than historically, especially in segments with
high willingness to pay. Targeted marketing and commercial initiatives have been
implemented to realize this potential.

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

647738_HKY Q1 2025 Report.pdf
647738_HKY Q1 2025 Result Presentation.pdf