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Havila Shipping Rushes Ahead: New Contracts Worth NOK 350 Million

Published Apr 16, 2012 10:12 AM by The Maritime Executive

Havila Shipping ASA continues its momentum in 2012. The offshore suppliers, listed on the Oslo stock exchange, publishes contracts with Total E&P UK and Norske Shell with a combined value of MNOK 350. 

The contracts underline the positive development for Havila Shipping ASA, with a combined value of NOK 350 million, bringing the total new contracts in 2012 up to NOK 1 billion thus far into 2012.

Njål Sævik, CEO of Havila Shipping ASA, says that the company now, with these new contracts, have close to full contract coverage for the whole of the PSV fleet in 2012.

Objective reached
”Our objective has been to secure full contract coverage for our PSV fleet for this year by the end of April. We have now reached that target. In total, we are looking at good, profitable contracts. This strengthens our  position going forward, and I feel even more confident that 2012 will be a good year for Havila Shipping,” says Sævik.

The contract with Total is for the PSV Havila Commander, built in 2010 at Hellesøy Verft. The contract period is five years, with two optional periods each of one year. Commencement is this April. Shell Norge has declared a one year option for Havila Borg, built in 2009 at Havyard Tomrefjord.

Triple the share price
Havila Shipping ASA was the winner among the offshore shipping companies at the Oslo Exchange in March, and number four in general, up more than 36 %.

Analysts looking at the values in the company have concluded that the underlying values are much higher than reflected by today’s share prices. At the end of play yesterday the share stood at NOK 44. Analysts conclude that the underlying values should justify a share price around NOK 120 – almost triple today’s prices.

With the PSV fleet on fixed contracts for the duration of 2012, there is room to be sanguine with regards to the fleet of new anchor handling vessels.

PSV Havila Commander, built in 2010 at Hellesøy Verft.

“We have three new, large anchor handling vessels (AHTS) in the spot marked. With today’s market prospects, and the market we expect for the spring and summer, we think it is sensible to keep them in the spot market. We believe that we will see a significant tightening of this market over the coming months, with good prospects for us as a result of that,” says Njål Sævik, CEO of Havila Shipping ASA and chairman of the Norwegian Shipowner’s Associations Offshore Group.

Following an extensive new-building programme over several years, Havila’s fleet is now the most modern among the larger Norwegian offshore companies.

Njål Sævik now has a stated objective of increasing the profitability of the fleet. The company is working towards a rapid return to a position where dividends can be paid to the shareholders. The rush of new contracts means this objective is increasingly within reach.