Havila Shipping ASA

Earnings Release • Oct 21, 2015

Havila Shipping ASA : Third quarter 2015 accounts

Havila Shipping ASA : Third quarter 2015 accounts

Summary

Havila Shipping ASA achieved an operating income before depreciation of NOK 178

million in Q3 2015, compared with NOK 305 million in Q3 2014.

Total operating income was NOK 378 million in Q3 2015, compared with NOK 520

million in Q3 2014.

The group had 28 vessels in operation as of 30/09/2015. 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 during the third quarter was characterized

by supply far exceeding demand. The consequence of low utilization and low rates

is that many vessels have achieved revenues lower than operating expenses. The

market weakened further during the quarter. The company has operated four AHTS

vessels in this market and due to the market conditions, it is decided to lay up

two of the vessels.

The fleet utilization was 92 % in Q3 2015.

Result for 3 quarter 2015

* Total operating income amounted to NOK 377.7 million (NOK 519.6million).

* Total operating expenses were NOK 199.8 million (NOK 214.6 million).

* The operating profit before depreciation was NOK 177.9 million (NOK 305.1

million).

* Depreciation was NOK 82.9 million (NOK 69.6 million).

* Net financial items were NOK -153.1 million (NOK -138.4 million) of which

unrealized agio was NOK -67.5 million (NOK -35.0 million).

* The profit before tax was NOK -72.3 million (NOK 72.2 million).

Result year to date

* Total operating income amounted to NOK 1,204.5 million (NOK 1,300.4

million).

* Total operating expenses were NOK 623.3 million (NOK 612.0 million).

* The operating profit before depreciation was NOK 581.3 million (NOK 688.4

million).

* Depreciation was NOK 247.3 million (NOK 197.2 million).

* Net financial items were NOK -383.4 million (NOK -333.2 million) of which

unrealized agio  was NOK- 108.6 million (NOK -44,9 million).

The profit before tax was NOK -66.5 million (NOK 158.9 million).

Balance and liquidity per 30/09/15

Based on the estimates of brokers dated 30/06/15, the fleet had a market value

of NOK 8,083.2 million at the end of September. The value of vessels where the

broker estimates are in foreign currencies are recalculated using exchange rates

as used for balance sheet items.  This is equivalent to a value per share of NOK

90. The book value of the fleet is NOK 7,290.1 million. Book equity per share is

NOK 64.

Total current assets amounted to NOK 779.0 million on 30/09/15, whereof bank

deposits were NOK 310.3 million (of this NOK 1.0 million restricted). On

30/09/14, total current assets amounted to NOK 869.1 million, whereof bank

deposits amounted to NOK 340.2 million (of this NOK 2.0 million restricted).

Net cash flow from operations per 30/09/15 was NOK 285.6 million (NOK 173.4

million). Cash flow from investing activities was NOK -73.3 million (NOK -193.2

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

constitute a net change from financing activities of NOK -255.4 million (NOK

-45.3 million).

Total interest-bearing debt per 30/09/15 is NOK 5,779.5 million. This includes

unsecured loans of NOK 950 million. Of interest-bearing debt, 16.9 % is loan in

USD, while the remainder is nominated in NOK. Next year's repayment of debt is

classified as current liability in conformity with IFRS, and amounts to NOK

1,329.0 million.

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#1960224]