Havila Kystruten AS: First quarter 2026 accounts

28 May 2026 20:56 CEST

Havila Kystruten (HKY) delivered a robust operational performance in the first
quarter of 2026 and a significant increase in earnings. The Group reported a
positive EBITDA of MNOK 30, compared to MNOK 11 in Q1 2025, representing a 167%
improvement year-over-year. The EBITDA margin improved to 8%, up from 3% in the
same period last year. The Q1 2025 comparison figures include a one-off
accounting adjustment of MNOK 15 related to provisions for the option year of
the coastal route contract, which positively impacted revenues in Q1 2025.

Revenue growth and operational performance
Total operating revenues reached MNOK 391 in Q1 2026, an increase of 12% year-
over-year. Ticket revenue grew 16% to MNOK 222, driven by strong demand and a
4% increase in ACR to NOK 4,800. Onboard revenue grew 14% in gross terms to MNOK
63. Onboard revenue per passenger night increased by 3% to NOK 740; the
underlying growth in spend per guest is higher, as a significant portion of the
passenger growth has come from interior cabins where spend per guest is somewhat
lower.

Occupancy across the fleet improved significantly to 72% (up from 61% in Q1
2025), while the cabin factor increased from 1.86 to 1.87, reflecting a 17%
increase in passenger nights to 84,300. Operational efficiency across the fleet
was very high, with 100% uptime recorded during the quarter.

Contractual revenues for the quarter amounted to MNOK 103, up 3% year-over-year.
The annual projected contract revenue for 2026 stands at MNOK 426, reflecting a
positive adjustment of MNOK 60 compared to earlier expectations following the
completed review of the calculation basis with the Ministry of Transport and
Statistics Norway.

Cost structure and expense drivers
Total operating expenses increased by 7% year-over-year to MNOK 362. The largest
percentage increase was in Cost of Goods Sold (COGS), which rose by 20% to MNOK
52, as a direct consequence of the growth in passenger volumes. Crew payroll
increased by 12%, driven by higher activity levels and general wage growth.
Admin payroll rose by 17%, reflecting normal wage growth and the scaling of the
organisation during 2025, where the Company invested particularly in sales,
marketing and hotel operations to build the commercial capabilities that are now
delivering results.

Admin opex increased by 24% and hotel opex by 20%, driven by higher marketing
spend, payment processing fees, and onboard product investments. Vessel opex
(excluding LNG, NOx and power) increased by 5%. LNG, NOx and power costs
decreased by 24% year-over-year to MNOK 59, driven by lower spot prices on
energy in Q1 2026 as well as the effect of the improved LNG procurement
agreement entered into last year.

Financing and capital structure
Following the refinancing completed in November 2025, the Company's debt
structure consists of long-term facilities totalling MEUR 456 with Havila Vessel
Owning AS, a subsidiary of the majority shareholder Havila Holding AS. The
financing is intended as a stable long-term platform that can be optimised as
operational results allow, with an option for refinancing in 2028. The Company's
reported book equity stood at negative MNOK 1,276 at the end of March 2026.
However, when considering the market value of the vessels, the value-adjusted
equity is estimated at positive MNOK 2,301.

Sustainability and efficiency
HKY continues to make strides in its sustainability efforts. The Group
successfully reduced CO2 emissions by 37% in the quarter compared to the 2017
Coastal Route baseline. Furthermore, the Company continued its work on reducing
food waste, with the first-quarter result reaching 77 grams per guest per day.

Employees
Havila Kystruten had a total of 588 permanent employees as of March 31, 2026, of
which 519 were seafarers and 69 in the administration.

Subsequent events and trading outlook
From 1 March 2026, the Norwegian Government implemented a reduced CO2 tax rate
on fuel for ships covered by the EU ETS, eliminating the double burden of both
CO2 tax and quota costs for domestic shipping. A refund for January and February
2026 has been proposed, and the Company expects the authorities to also
introduce a refund scheme for 2024 and 2025. This is treated as a contingent
asset and has not been recognised in the balance sheet. See Note 12 for further
details.

Booking momentum entering the second quarter is strong. For 2026, approximately
69% of total capacity is already booked as of May, corresponding to around 90%
of the annual target for cabin nights and approximately 15% higher than at the
same point last year. The Company targets an ACR increase of more than 10% in
2026, supported by ongoing price adjustments across markets.

The operating environment is shaped by several external factors. Geopolitical
tensions, particularly in the Middle East, are contributing to higher energy
costs. The Company expects elevated bunker costs in Q2, with an estimated 70% of
increased costs expected to be recovered through indexation of the government
contract, albeit with a 1-2 year time lag. A strengthening Norwegian krone
reduces the purchasing power of international travellers and, all else equal,
makes Norway a more expensive destination for cruise travellers. The Company's
customer base, predominantly upper-middle-class travellers with strong spending
capacity, is less sensitive to such effects than the broader market. Prices are
continuously adjusted across markets in line with currency developments to
protect revenue per available cabin.

Norway is expected to remain an attractive and safe travel destination, and
Havila Kystruten's modern, environmentally friendly fleet continues to be well
received-evidenced by multiple international awards. The Company will continue
to prioritise direct bookings and actively balance occupancy and pricing to
optimise margins. The shorter-trips segment continues to show significant
potential, with sales up over 40% in summer 2025, attracting a younger customer
base with high willingness to pay.

Contacts:
Chief Executive Officer: Bent Martini, +47 905 99 650
Chief Financial Officer: Aleksander Røynesdal, +47 413 18 114

More information:
Access the news on Oslo Bors NewsWeb site

674823_HKY Q1 2026 Result Presentation.pdf
674823_HKY Q1 2026 Report.pdf