Havila Shipping - Second quarter accounts

Thursday, 30. July 2009 08:30
Good result - despite weak market

RESULTS FOR 2nd QUARTER 2009

Summary
* Havila Shipping ASA achieved a result before tax of NOK
114.2m in Q2 2009, compared with NOK 14m in Q2 last year. Year to
date, the profit before tax was NOK 278.6m. In the first half year
of 2008 profit before tax was NOK 328.8m, whereof NOK 311.8m was
profit from sale of assets.
* Net financial items include unrealised agio on currency
positions and forward rate contracts of NOK 42.3m and NOK 143.4m
for 2nd quarter and year to date, respectively.
* Total income in Q2 2009 ended at NOK 249.6m, compared
to NOK 158.2m in Q2 2008. Year to date total income ended at NOK
461.8m. In the first half year of 2008, total income was NOK
611.2m, whereof NOK 311.8m was profit from sale of assets.
* The Group had 17 vessels in operation per 30/06/2009.
This includes Havila Mars and Havila Mercury that was sold and
leased back in Q1 2008, three vessels that are operated by the
joint venture company Posh Havila Pte Ltd in Singapore and one
vessel that is owned by Havship DA.

The spot market for offshore service vessels was weak during second
quarter, but actual day rates increased at the end of the quarter.
Of owned vessels the company had one PSV and one AHTS vessel in the
spot marked during the quarter. The PSV vessel was on hire at
acceptable rates most of the quarter. The AHTS vessel was also partly
offhire 30 during the quarter The day rates has been fluctuating, but
highest at the end of June.

The company's financial figures and comparative figures are prepared
in accordance with IFRS regulations.

Q2 2009 results
Total income for Q2 2009 amounted to NOK 249.6m (NOK 158.2m).

Total operating expenses for Q2 2009 were NOK 114.3m (NOK 95.6m).
Increased operating expenses this quarter compared to previous
quarter, are mainly related to one more vessel in operation. The
subsea vessel, Havila Phoenix, was delivered in the beginning of
March, and has been operating on a contract in Mexico the whole
quarter.

The operating profit after depreciation (EBIT) in the period was NOK
102.6m (NOK 38.6 m).

Net financial income in the period amounts to NOK 8.2m (NOK -24.6m).
Net financial items are positive in the period due to unrealised agio
on loans in foreign exchange.

The profit before tax for the period was NOK 114.2m (NOK 14m).

Results 1st half-year 2009
Total operating income the first half-year of 2009 ended at NOK
461.8m (NOK 611.2m whereof NOK 311.8m was profit from sale of
assets).

Total operating expenses of NOK 215.1m (NOK 173.5m) include leaseback
expenses for Havila Mercury/Mars of NOK 53.9m (NOK 50.3m).

Net financial income in the period amounted to NOK 86.5m (NOK
-62.4m).

Profit before tax for first half-year was NOK 278.6m (NOK 328.8m).

Balance and liquidity per 30/06/09
Based on the estimates of several independent brokers dated 30/06/09,
the fleet had a market value of NOK 3 947m at the end of June. This
is equivalent to a value per share of NOK 140. The book value of the
fleet excluding new buildings is NOK 3 105m. Book equity per share is
NOK 88. Capitalized advance payments on new buildings total NOK
891.5m and NOK 923.6m on 30/06/09 and 31/12/08, respectively.

Total current assets amount to NOK 594.9m on 30/06/09, whereof bank
deposits are NOK 278.8m (of this NOK 19.9m restricted).
On 31/12/08, total current assets amount to NOK 1 060.8m, whereof
bank deposits are NOK 698.2m (of this NOK 391.5m restricted). Net
cash flow from operations per 30/06/09 was NOK 92m (NOK 63.5m). There
was a negative cash flow from investing activities in year-to- date
2009 of NOK 982m. This primarily relates to delivery of vessels.
Raising and repayment of loans and sale of own shares constitute a
net change from financing activities of NOK 387.7m (NOK -95.3m).

Total long-term interest-bearing debt at 30/06/2009 is NOK 2 615.8m.
This includes bond loans of NOK 450.0m. Of this, 11% is
loan in USD, while the remainder is nominated in NOK. Next year's
repayment of debt is classified as current liability in conformity
with IFRS, and amounts to NOK 170.5m. Interest- bearing short term
debt amounts to NOK 100m. Non-current liabilities relating to
deferred tax in connection with the transition to the new shipping
tax regime, is recognised at NOK 41.6m. "Environment fund" of NOK
25.7 mill is included in equity as of 30 June 2009.

Market
The market for offshore service vessels was weak during second
quarter, with low day rates, but the rates were increasing at the end
of the quarter. The fleet utilisation of the company fleet operated
from Norway has been 95% in the second quarter. The company expects
that the activity will be higher in third quarter of 2009. It is
expected that the rate level will be fluctuating Increased subsea
activity, will in the long term result in an increased demand for
vessels specially designed for such operations. Strict requirements
for tonnage quality, emissions and technical competence will be key
factors in the period ahead.

Financing
In June the company entered into agreements with banks for financing
of Havila Herøy and Havila Fanø. The financing assumes participation
from GIEK who will handle the issue in third quarter. The company
also got pledge for financing of POSH Virtue. Provided participation
from GIEK the company now has obtained financing of all vessels for
delivery during 2009 and 2010.

Fleet
Per today, Havila Shipping ASA operates 19 vessels and has further 6
vessels under construction. Four of the vessels are operated by the
joint-venture company in Singapore, Posh Havila Pte. Ltd and two of
the vessels are owned by companies outside the Group, Havship DA and
Havship DA II.

The fleet comprises:

Segment/segment Existing fleet/Dagens
flåte New builds/nybygg

PSV
7 2
AHTS

8 2

SubSea
2 2

Rescue/Beredskap
2 -

Employees
Havila Shipping ASA has around 330 maritime employees and 25
administrative staff at the office in Fosnavåg.


This announcement was originally distributed by Hugin. The issuer is
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