Havila Shipping ASA

Earnings Release • May 10, 2016

Havila Shipping ASA : First Quarter 2016 accounts

Havila Shipping ASA : First Quarter 2016 accounts

Summary

Havila Shipping ASA achieved an operating income before depreciation of NOK 149

million in Q1 2016, compared with NOK 200 million in Q1 2015. Total operating

income was NOK 335 million in Q1 2016, compared with NOK 419 million in Q1

2015.  The group had 28 vessels in operation as of 31/03/2016. 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.

The spot market for offshore vessels was also during first quarter characterized

by supply exceeding demand. For PSV vessels the achived dayrates have as an

average been lower than operating expenses. AHTS vessels operated have as an

average achieved higher dayrates than in first quarter 2015. At the end of first

quarter 2016 104 of vessels normally operated in the North Sea laid up.

At the beginning of the year the company had two AHTS vessels laid up. From

January one subsea vessels vas laid up, but is offered on tenders. In February

one PSV and from April another PSV laid up.

The fleet utilization was 78 % in Q1 2016, 90 % exclusive laid up vessels.

Result for 1 quarter 2016

· Total operating income amounted to NOK 334.9 million (NOK 418.6 million).

· Total operating expenses were NOK 186.3 million (NOK 218.3 million).

· The operating profit before depreciation was NOK 148.5 million (NOK 200.3

million).

· Depreciation was NOK 81.7 million (NOK 80.6 million).

· Net financial items were NOK 30.6 million (NOK 175.0 million) of which

unrealized agio gain was NOK 58.8 million (unrealized agio loss NOK 78.0

million).

· The profit before tax was NOK 29.7 million (NOK -60.7 million).

Balance and liquidity per 31/03/16

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

of NOK 7,486.5 million at the end of March. 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 5,758.5

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

is NOK 18. Total current assets amounted to NOK 651.9 million on 31/03/16,

whereof bank deposits were NOK 274.2 million (of this NOK 7.3 million

restricted). On 31/03/15, total current assets amounted to NOK 841.9 million,

whereof bank deposits amounted to NOK 377.5 million (of this NOK 8.6 million

restricted).

Net cash flow from operations per 31/03/16 was NOK 93.7 million (NOK 74.3

million). Cash flow from investing activities was NOK -3.5 million (NOK -40.1

million). Payment of installments, repayment of loans, and loan drawn,

constitute a net change from financing activities of NOK - 14.1 million (NOK

-8.7 million).

Total interest-bearing debt per 31/03/16 is NOK 5 575.4 million. This includes

unsecured loans of NOK 950 million. Of interest-bearing debt, 16.5 % is loan in

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

classified as current liabilities as of 31/03/16, 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.

Fleet

Per today, Havila Shipping ASA operates 28 vessels,

· 15 PSV (1 owned external and 1 are 50 % owned)

· 9 AHTS ( 4 of which are operated by Posh in Singapore)

· 3 Subsea

· 1 RRV (bareboat)

Employees

Havila Shipping ASA has around 625 maritime employees and 46 administrative

staff.

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#2010987]