Havila Kystruten AS

Earnings Release • Feb 28, 2024

Havila Kystruten AS: Fourth quarter 2023 accounts

Havila Kystruten AS: Fourth quarter 2023 accounts

Summary

The company has completed its first quarter with full operation of all four

ships. Revenue in the fourth quarter was MNOK 249. Due to late clarification on

the delivery of the last two ships, the revenue side is somewhat lower than if

the pre-sale had started earlier.

The last quarter of 2023 ended with an average fleet occupancy of 60%, an

average cabin rate (ACR) of NOK 3,100 and a utilization rate of 1.8 per cabin.

Occupancy and average price per cabin are higher than the fourth quarter of

2022, but are somewhat lower than the third quarter due to lower demand in the

autumn and winter months. EBITDA was negative by MNOK 33.2 in the fourth quarter

and MNOK 179 for the full year.

Operating costs amounted to MNOK 283 in the fourth quarter and are mainly

ordinary operating costs for operating four ships. Some of the operating costs

are related to the number of passengers, while the largest cost items are not

significantly affected by occupancy.

MNOK 18 relates to extraordinary marketing costs to secure the pre-sale of the

last two ships for the last quarter of 2023 and the first quarter of 2024.

LNG costs have also been somewhat higher in the period due to additional costs

for securing prices in the market. Profit and loss and balance sheet are

significantly affected by fluctuations in exchange rates, especially the value

of the Norwegian krone against the euro since ship financing is in euros.

The fleet's operational uptime was 99.2% for the fourth quarter and 99.5% for

the year as a whole. The company's target of less than 75g food waste per guest

day was achieved for both the fourth quarter (60g) and the year as a whole

(54g).

The company looks forward to 2024, which will be the company's first year with

all four ships in operation. Interest in Havila Kystruten is steadily increasing

both domestically and internationally, and the company is receiving positive

feedback on the product and concept. Based on a good trend in booking figures,

of which 65% are sold for the first quarter and over 55% for 2024 in total, an

average occupancy of just under 80% is expected for 2024.

In February 2024, the company secured a refinancing of a loan maturity of MEUR

50 in October 2024 by raising corresponding financing from Havila Holding AS,

which runs until after the maturity of MEUR 255 in July 2026. A credit facility

of MNOK 200 has also been made available, which gives the company financial

flexibility to handle seasonal liquidity fluctuations.

Results for the fourth quarter of 2023

?             Revenue totaled MNOK 249, of which MNOK 82 was revenue from the

Ministry of Transport and Communications.

?             Operating costs consisted of MNOK 38 in cost of goods sold, MNOK

86 in salary costs, and MNOK 159 in other operating costs.

?             Operating profit before depreciation was MNOK - 33.

?             Depreciation was MNOK 54.

?             Net financial items were MNOK - 195.

?             Profit before tax was MNOK - 282.

Results for 2023

?             Revenue totaled MNOK 764, of which MNOK 216 was revenue from the

Ministry of Transport and Communications.

?             Operating costs consisted of MNOK 106 in cost of goods sold, MNOK

282 in salary costs, and MNOK 556 in other operating costs. LNG, port costs, and

sales and marketing are the largest cost items within other operating costs, but

costs for legal advisors are also significant until August.

?             Operating profit before depreciation was MNOK - 180.

?             Depreciation was MNOK 137.

?             Net financial items were MNOK - 546, of which MNOK 35 is

unrealized exchange rate loss on financing.

?             Profit before tax was MNOK - 863.

Balance sheet and liquidity as of 31.12.2023

?             Total fixed assets were MNOK 4,337, of which ships accounted for

MNOK 4,274, intangible assets accounted for MNOK 38, right-of-use of leased

equipment accounted for MNOK 20 and operating equipment accounted for MNOK 5.

?             Current assets were MNOK 425, of which cash and cash equivalents

accounted for MNOK 150, of which MNOK 10 are restricted funds for tax

deductions.

?             Net cash flow from operating activities was MNOK -566. Cash flow

from investing activities was MNOK -682. Net cash flow from financing activities

was MNOK 1,095.

?             The carrying amount of long-term debt was MNOK 3,124. Of the ship

financing, MNOK 582 was short-term as of December 31, 2023. An agreement has now

been made for refinancing so that the debt will again be long-term upon

completion.

?             Total current liabilities were MNOK 1,161, of which the main items

are trade payables, debt to credit institutions as mentioned above and advances

from customers.

Employees

Havila Kystruten had a total of 481 permanent employees as of December

31, 2023, of which 438 were seafarers and 43 were in administration.

Contacts:

Chief Executive Officer Bent Martini, +47 905 99 650

Chief Financial Officer Arne Johan Dale, +47 909 87 706