Havila Shipping ASA

Interim / Quarterly Report • Aug 25, 2020

Havila Shipping ASA: Second quarter 2020 accounts

Havila Shipping ASA: Second quarter 2020 accounts

Summary

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

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

Reduced demand for vessels has a negative effect on the company and a

reassessment of the market outlook has resulted in a write-down of the value of

most vessels.

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.

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

40.6 million in Q2 2020, compared with NOK 75.5 million in Q2 2019.

* Total operating income was NOK 201.0 million in Q2 2020, compared with NOK

191.3 million in Q2 2019.

* The group had as of 30/06/20 23 vessels operated from Fosnavåg, six for

external owners.

* The group had 3 AHTS and 2 PSV vessels laid up at the end of Q2 2020.

* The fleet utilization Q2 2020 was 88 % exclusive vessels in lay-up.

Result for 2 quarter 2020

* Total operating income amounted to NOK 201.0 million (NOK 191.3 million).

* Total operating expenses were NOK 160.4 million whereof NOK 37.0 million is

provision for loss on trade receivables. Ordinary operating expenses amounts

to NOK 123.4 million (NOK 115.7 million).

* Operating profit before depreciation was NOK 40.6 million (NOK 75.5

million).

* Depreciation was NOK 87.6 million (NOK 80.2 million).

* Impairment charge of fixed assets was NOK 521.0 million (NOK 0).

* Net financial items were NOK 2,026.1 million (NOK -52.0 million), whereof

unrealized agio gain was NOK 79.1 million (unrealized agio gain NOK 7.4

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

of the restructuring agreement with the company's lenders was NOK 2,016.6

million (NOK 0)

* The profit before tax was NOK 1,457.9 million (NOK -57.5 million).

Result for 1st half of 2020

* Total operating income amounted to NOK 409.9 million (NOK 339.8 million).

* Total operating expenses were NOK 298.8 million whereof NOK 52.8 million is

provision for loss on trade receivables. Ordinary operating expenses amounts

to NOK 246.0 million (NOK 230.0 million).

* The operating profit before depreciation was NOK 111.1 million (NOK 109.8

million).

* Depreciation was NOK 174.5 million (NOK 160.0 million).

* Impairment charge of fixed assets was NOK 521.0 million (NOK 0).

* Net financial items were NOK 1,810.5 million (NOK -97.2 million), whereof

unrealized agio loss was NOK 80.9 million (unrealized agio gain NOK 16.1

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

of the restructuring agreement with the company's lenders was NOK 2,016.6

million (NOK 0).

* The profit before tax was NOK 1,226.0 million (NOK -149.3 million).

Balance and liquidity per 30/06/20

Total current assets amounted to NOK 473.7 million on 30/06/20, whereof bank

deposits were NOK 239.1 million (of this NOK 3.5 million restricted withholding

tax and NOK 86.9 restricted cash related to interest and installment payments).

On 30/06/19, total current assets amounted to NOK 345.2 million, whereof bank

deposits amounted to NOK 100.4 million (of this NOK 3.2 million restricted).

Net cash flow from operations was year to date NOK 61.5 million (NOK 47.3

million). Cash flow from investing activities was NOK -13.5 million (NOK -19.0

million). Payment of loan instalments and lease liabilities, and raising a

convertible shareholder loan constitute a net change from financing activities

of NOK 85.5 million (NOK -12.9 million).

The book value of the fleet is NOK 2,291 million after impairment charge of NOK

521 million in the 2nd quarter. Total long-term debt recognized in the balance

sheet was per 30/06/20 NOK 2,188.9 million, of which interest-bearing debt

amounts to NOK 2,017.2 million and non interest-bearing debt NOK 171.7 million.

As of 30/06/20, nominal value of interest-bearing debt was NOK 3,034.9 million,

and nominal value of non interest-bearing debt was NOK 1,187.7 million. Of

nominal interest-bearing debt 21.9 % 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)

Employees

Havila Shipping ASA had per 30/06/20 440 employees on the company's vessels and

34 employees in the administration.

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