Havila Shipping ASA

Earnings Release • Aug 17, 2016

Havila Shipping ASA : Second quarter 2016 accounts

Havila Shipping ASA : Second quarter 2016 accounts

Summary

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

111 million in Q2 2016, compared with NOK 203 million in Q2 2015.

* Total operating income was NOK 260 million in Q2 2016, compared with NOK

408 million in Q2 2015.

* The group had 28 vessels in operation as of 30/06/2016. 24 vessels are

operated from Fosnavåg, one for external owner. Four of the vessels are

operated by the 50 % owned company in Singapore, Posh Havila Pte Ltd.

* At the end of second quarter 2016 100 of vessels normally operated in the

North Sea laid up.

* Today, the Group has 6 vessels laid up, of this 3 PSV, 2 AHTS and 1 subsea

vessel. The fleet utilization was 71 % in Q2 2016, 90 % exclusive lay up

vessels.

Result for 2 quarter 2016

* Total operating income amounted to NOK 260.2 million (NOK 408.2 million).

* Total operating expenses were NOK 149.6 million (NOK 205.1 million).

* The operating profit before depreciation was NOK 110.6 million (NOK 203.0

million).

* Depreciation was NOK 81.1 million (NOK 83.6 million).

* Net financial items were NOK -111.7 million (NOK -55.3 million) of which

unrealized agio loss was NOK 3.8 million ( unrealized agio gain NOK 36.9

million).

* The profit before tax was NOK -86.8 million (NOK 59.4 million).

Result for 1st half of 2016

* Total operating income amounted to NOK 595.1 million (NOK 826.8million).

* Total operating expenses were NOK 336.0 million (NOK 423.4 million).

* The operating profit before depreciation was NOK 259.1 million (NOK 403.4

million).

* Depreciation was NOK 162.8 million (NOK 164.4million).

* Net financial items were NOK -142.4 million (NOK -230.3 million) of which

unrealized agio gain was NOK 50.1 million (Unrealized agio loss NOK 41,1

million).

* The profit before tax was NOK -57.1 million (NOK -1.2 million).

Balance and liquidity per 30/06/16

Based on the estimates of brokers dated 31/12/15, the fleet had a market value

of NOK 7,445.6 million at the end of June. The values of vessels where the

broker estimates are in foreign currencies are recalculated using exchange rates

as used for balance sheet items.  The book value of the fleet is NOK 5,683.7

million, after write-downs of NOK 1,388 million in Q4 15. Book equity per share

is NOK 15.

Total current assets amounted to NOK 712.7 million on 30/06/16, whereof bank

deposits were NOK 359.4 million (of this NOK 9.7 million restricted). On

30/06/15, total current assets amounted to NOK 791.9 million, whereof bank

deposits amounted to NOK 319.5 million (of this NOK 4.0 million restricted).

Net cash flow from operations per 30/06/16 was NOK 185.8 million (NOK 391.6

million). Cash flow from investing activities was NOK -8.8 million (NOK -64.3

million). Payment of installments, constitute a net change from financing

activities of NOK -14.1 million (NOK-166.7 million).

Total interest-bearing debt per 30/06/16 is NOK 5 589.6 million. This includes

unsecured loans of NOK 950 million. Of interest-bearing debt, 16.1 % is loan in

USD, while the remainder is nominated in NOK. Both bank loans and bond loans are

classified as current liabilities as of 30/06/16, as the company is in break

with covenants and there are no unconditional right to postpone

the settlement of the liability minimum one year after the reporting period.

Q2 report attached

Contacts:

CEO Njål Sævik, +47 909 35 722

CFO Arne Johan Dale, +47 909 87 706

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#2035487]