Strong Quarterly Result for Havila Shipping

Increasingly better: The Fosnavåg-based shipping company Havila Shipping ASA achieved a result for the first quarter 2014 of 42 M NOK before taxes, 65 M NOK better than the same period last year. This is the fourth positive quarter in a row for the company which is listed on the Oslo Stock Exchange [ticker: HAVI]. 

These four quarters add up to a total of 150 M NOK i profits before taxes. The tax issue which arose at the end of 2013 meant that dividends could not be paid for 2013, but with a strong start to 2014, Chief Executive Officer of Havila Shipping, Njål Sævik, is optimistic that the company will be back in a position where dividends can be paid. 

”This past year I have had a strong ambition to bring Havila Shipping back in a position where we can pay dividends to our shareholders. This result brings us closer to that aim,” Sævik emphasizes. 

The company has very good contract coverage, and an order reserve of 5.4 BN NOK inclusive of options. The fixed term contracts alone will cover the company operations and interest costs for 2014, and Havila Shipping now has three anchor handling vessels (AHTS) and one supply vessel (PSV) in the spot market. 

Following a very ambitious new-building-program which lasted until December 2012, Njål Sævik has been clear that the focus is now on the company operations, while at the same time working on reducing the cost of the company’s debt. 

Total income for Q1 2014 was 378 M NOK, compared to 330 M NOK in 2013. The operating result was 178 M NOK, compared to 136 M NOK for 2013. The operating margin was 47 per cent compared to 41 per cent last year, and fleet utilization was 94 per cent compared to 88 per cent for the corresponding period last year. 

”I am pleased with the results we deliver. Hard, systematic work over a long period is now paying off. So far, 2014 show signs of being a good year,” says CEO Njål Sævik. 
 
THESE ARE THE CONTRACTS TO DATE: 
•         24 February 2014: Havila Mars 1 year and Havila Clipper 3 months with Statoil.
•         23 October 2013: Havila Subsea and Havila Fortune 155 M NOK 
•         20 August 2013: Havila Faith and Havila Borg for 350 M NOK.
•         23 April 2013: Havila Harmony and Havila Phoenix: 425 M NOK
•         Havila Phoenix 7 year contract with Deepocean with options of 4 x 1 year
•         Havila Subsea extended contract with Subsea 7 
•         Havila Mars and Havila Mercury with Statoil for respectively 3 years and 3 x 1 year option, and 1 year and 1 year option 
•         Havila Clipper and  Havila Crusader with Statoil for 4 months plus 4 x 1 month options and 6 months plus 2 x 3 months options
•         Havila Princess with Petrobras for 4 years with option of further 4 years 
•         Havila Troll extended with Statoil until 2015; Havila Crusader extended with Statoil i for 3 months