Havila Shipping ASA

Earnings Release • Oct 22, 2014

Havila Shipping ASA 3 rd Quarter 2014 accounts

22.10.14

CEO Njål Sævik CFO Arne Johan Dale

Highlights

• Third quarter: The best ever
• North sea spot market better for AHTS vessels than expected particularly from August
• Some contracts beating the market average
• AHTS spot market quarterly average the best since early 2009
• Total income MNOK 519
• Adjusted EBITDA MNOK 273
• Year to date better than last year
• Adjusted EBITDA increased by MNOK 112
• Bottom line doubled
• Contract coverage increased
• Dividend capacity realistic for the year
• Four years option declared by Petrobras for vessel operating in Brazil
• Contract coverage good
• 2014 Q4: 87%
• 2015: 79% (83% opt. included )

Summary of facts and figures Q3

	Freight income	497
	Total income	519
	EBITDA (adjusted)	273
	EBITDA margin	53 %

Utilization 94,8% Time charter fleet

	Q3 14	Mill NOK		Q3 13	Mill NOK
	Freight income	497		Freight income	398
	Total income	519		Total income	401
	EBITDA (adjusted)	273		EBITDA (adjusted)	215
	EBITDA margin	53 %		EBITDA margin	53 %

Utilization 93,7% Time charter fleet

Summary of facts and figures YTD

	Freight income	1 266
	Total income	1 300
	EBITDA (adjusted)	652
	EBITDA margin	50 %

Utilization 93,7% Time charter fleet

	YTD 14	Mill NOK		YTD 13	Mill NOK
	Freight income	1 266		Freight income	1 076
	Total income	1 300		Total income	1 099
	EBITDA (adjusted)	652		EBITDA (adjusted)	532
	EBITDA margin	50 %		EBITDA margin	49 %

Utilization 91,8% Time charter fleet

Figures

Main figures

NOK mill	Q3 2014		Q2 2014		Q1 2014		Q4 2013		Q3 2013
Income and gains	519,6		402,3		378,5		360,2		401.5
EBITDA (Adjusted)	273,2	52,6%	190,2	47,3%	177,9	47,0%	171,3	47,6%	214.5	53.4%
Pre tax result	92,6	17,8%	24,4	6,1%	41,8	11,0%	4,3	1,2%	75.8	18.9%

Q3 14: Income includes tax items amounting to MNOK 18

Financial expenses includes unrealised FX losses of MNOK 40 (YTD)

FX exchange rates

Weaker NOK: Gives unrealized FX losses but increases future income

FX effects increases both income and expenses

Interest bearing debt

NOK millions	Q3 14	Q2 14	Q1 14	Q4 13	Q3 13	Q2 13	Q1 13
Long term debt	4 836	4 890	5 416	4 827	5 341	5 184	5 371
Next years instalments	1 106	1 104	652	1 106	698	923	730
Total	5 942	5 994	6 068	5 933	6 038	6 107	6 101
Bank Deposit/Other interest-bearing assets-344		-351	-536	-407	-398	-441	-385
Net	5 598	5 643	5 533	5 527	5 640	5 665	5 716
2
1,8
1,6
1,4
				3M NIBOR

Reconstruction of Havila Phoenix for the Deepocean contract increased debt during second quarter

Modern fleet

Value adjusted fleet age: 6 years, 1 month Market value

	Fleet value:	BNOK	8.1
	Not including Havila Troll
	Booked value
	Fleet value:	BNOK	7.5
	Excess value:	BNOK	0.6
Long term financing
	Secured :	BNOK	4.8
	Unsecured:	BNOK	1.2
Excess value		BNOK	2.1

Calculation date: 21.10.14

Years Months Weeks Days

6 1 1 6

Debt to Market value

Debt to market value reduced since fourth quarter 2012

Q3 14: Excess value increased by MNOK 56

Quarterly income

Foreign WHT and net income tax of MNOK 18 included in Q3 numbers

Quarterly vessel expenses

Total opex fourth quarter: MNOK 214 included hire of equipment amounting to MNOK 12 FX excange rates increases opex

Operating profit from segments

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14

AHTS: Spot market utilization and rates | PSV: Term contracts improvement

Segment development

AHTS spot market changes the picture of earnings

Contractual coverage

Fleet utilization

High – and stable

Q4 2014: 87% Firm 2015: 79% firm / 83% options included

Contract backlog

Backlog including options BNOK 6.0

Cover expenses for 2015 – Options included also for 2016

Key figures

MARKET ADJUSTED VALUE PER SHARE

Assets

Investments in vessels increased during Q2 by reconstruction of Havila Phoenix

Equity and liability

Q314: Short term debt – bond maturity of MNOK 300 in December 14 refinanced

Summing up

Vessels in Spot Market in Q3

AHTS

• Havila Venus
• Havila Jupiter
• Havila Neptune

PSV

• Havila Crusader

Market comments

Subsea

Covered for 2015

AHTS

• Volatile Spot market
• Fourth quarter started good PSV
• Still tender activity

This is Havila Shipping ASA

• Head-office in Fosnavåg, Norway
• Offices in
  • Rio
  • Labuan
  • Aberdeen
• Partnership with POSH in Singapore
• A fleet of 27 vessels
• 800 offshore staff
• 46 onshore
• Strong operating track record
• A qualified organisation focusing on human resources and solid seamanship

Segments	Current Fleet
PSV	14
AHTS	9
SubSea	3
Rescue vessels	1

Largest shareholders

Shareholder	Address	Shares	Interest
Havila Holding AS	FOSNAVÅG	15 227 130	50,5 %
Odin Offshore	OSLO	2 566 878	8,5 %
Pareto Aksje Norge	OSLO	1 710 881	5,7 %
Torghatten ASA	BRØNNØYSUND	1 223 100	4,1 %
The Northern Trust Co.	Storbritannia	916 292	3,0 %
Pareto Aktiv	OSLO	680 615	2,3 %
Jeki Private Limited	Singapore	500 000	1,7 %
Carvallo International Ltd	Singapore	394 726	1,3 %
Pareto Verdi Vpf	OSLO	342 060	1,1 %
Martin Waaland	KLEPPE	309 000	1,0 %
Hustadlitt AS	MOLDE	252 000	0,8 %
Morten Erga	KLEPPE	250 000	0,8 %
Arthur Sævik	FOSNAVÅG	215 809	0,7 %
Bakkely Invest AS	ULSTEINVIK	214 800	0,7 %
KS Artus	FOSNAVÅG	203 800	0,7 %
Spilka International AS	ÅLESUND	200 000	0,7 %
Pacific Carriers Ltd	Singapore	185 926	0,6 %
Verdipapirfondet DNB	OSLO	180 000	0,6 %
Loma Invest AS	OSLO	167 900	0,6 %
MP Pensjon PK	OSLO	164 370	0,5 %
20 LARGEST		25 905 287	85,8 %
OTHER		4 274 312	14,2 %
Total number of shares		30 179 599	100,0 %

20 largest reduced from 90% to 85% during 2013

Summary

• Third quarter the best ever
• Full 2015 opex and interest expenses covered by contracts options included also for 2016
• Continuing low interest rate
• No unfinanced capex / No new-builds
• Refinancing of 2015 bank balloons and bond maturity in progress to be done
• A goal to pay dividend for the year
• www.havilashipping.no

Q4 / Preliminary

Will be released on 29th January 2015