Havila Shipping ASA

Earnings Release • Feb 26, 2021

Havila Shipping ASA: Fourth quarter 2020 Accounts / Preliminary Accounts 2020

Havila Shipping ASA: Fourth quarter 2020 Accounts / Preliminary Accounts 2020

Summary

The sharp fall in oil prices and the outbreak of the Covid-19 virus in the first

quarter reduced the activity in the market in where the vessel operates. Despite

an increase in oil prices, there is still low demand for vessels. The market

situation has led to a further impairment charge of the value of the company's

vessels in the fourth quarter.

The agreement on restructuring of the company's debt was implemented on

30/06/20 and clarifies the company's obligations to lenders for the period until

2024. The calculated effect of the agreements means that book equity is positive

at the end of 2nd quarter. The implementation effect of the agreement was

incorporated in the accounts for the second quarter.

Financial expenses in the accounts consist of a change in the calculated present

value of estimated debt service for the vessels during the agreement period.

* Havila Shipping ASA achieved an operating income before depreciation of NOK

32.8 million in Q4 2020, compared with NOK 43.6 million in Q4 2019.

* Total operating income was NOK 107.1 million in Q4 2020, compared with NOK

195.8 million in Q4 2019.

* The group had as of 31/12/20 23 vessels operated from Fosnavåg, six for

external owners.

* The group had 3 AHTS and 4 PSV vessels laid up at the end of Q4 2020.

* The fleet utilization Q4 2020 was 81 % exclusive vessels in lay-up.

Result for 4 quarter 2020

* Total operating income amounted to NOK 107.1 million (NOK 195.8 million).

* Total operating expenses were NOK 74.3 million whereof NOK - 28.3 million is

provision for loss on receivables (NOK 152.2 million whereof NOK 30.7

million is provision for loss on receivables). Ordinary operating expenses

were NOK 102.6 million (NOK 121.4 million).

* Operating profit before depreciation was NOK 74.3 million (NOK 43.6

million).

* Depreciation was NOK 88.8 million (NOK 82.2 million).

* Impairment charge of fixed assets was NOK 262 million (NOK 0).

* Net financial items were NOK 234.0 million (NOK -32.1 million), whereof

unrealized agio gain was NOK 73.5 million (unrealized agio gain NOK 29.1

million), and value adjustment of debt was NOK 170.1 million (NOK 0).

* The profit before tax was NOK -73.1 million (NOK -71.5 million).

Result 2020

* Total operating income amounted to NOK 705.7 million (NOK 747.1 million).

* Total operating expenses were NOK 452.3 million whereof NOK 73.2 million is

provision for loss on receivables (NOK 500.8 million whereof NOK 30.7

million is provision for loss on receivables). Ordinary operating expenses

amounts to NOK 452.3 million (NOK 470.1 million).

* The operating profit before depreciation was NOK 180.2 million (NOK 246.3

million).

* Depreciation was NOK 350.8 million (NOK 323.5 million).

* Impairment charge of fixed assets was NOK 783.0 million (NOK 0).

* Net financial items were NOK 2,112.5 million (NOK -240.1 million), whereof

unrealized agio gain was NOK 12.2 million (unrealized agio loss NOK 6.5

million) and value adjustment of debt related to the implementation effects

of the restructuring agreement with the company's lenders was NOK 2,234.5

million (NOK 0).

* The profit before tax was NOK 1,169.1 million (NOK -320.9 million).

Balance and liquidity per 31/12/20

Total current assets amounted to NOK 272.4 million on 31/12/20, whereof bank

deposits were NOK 106.5 million (of this NOK 5.0 million restricted withholding

tax). On 31/12/19, total current assets amounted to NOK 372.9 million, whereof

bank deposits amounted to NOK 101.0 million (of this NOK 4.9 million

restricted).

Net cash flow from operations was in 2020 NOK 134.5 million (NOK 95.0 million).

Cash flow from investing activities was NOK -52.1 million (NOK -55.7 million).

Payment of loan instalments and lease liabilities, and raising a covertible

shareholder loan constitute a net change from financing activities of NOK -60.3

million (NOK -22.5 million).

The book value of the fleet is NOK 1,906 million after impairment charge of NOK

783 million in 2020.

Total long-term debt recognized in the balance sheet was per 31/12/20 NOK

1,802.0 million, of which interest-bearing debt amounts to NOK 1,711.5 million

and non interest-bearing debt NOK 90.4 million.

As of 31/12/20, nominal value of interest-bearing debt was NOK 2,818.8 million,

and nominal value of non interest-bearing debt was NOK 1,278.2 million. Of

nominal interest-bearing debt 15.9 % are loans in USD, while the remaining loans

are in NOK. Secured debt are classified as long term debt, except from known

instalments which is classified as short term debt.

Fleet

Havila Shipping ASA operates 23 vessels,

14 PSV

- Four owned externally

- One owned 50% and not consolidated

5 AHTS

3 Subsea

1 RRV (bareboat)

Contacts:

CEO Njål Sævik, +47 909 35 722

CFO Arne Johan Dale, +47 909 87 706

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act