Havila Shipping ASA

Earnings Release • Apr 30, 2014

Havila Shipping ASA 1 st Quarter 2014 accounts

30.04.14

CEO Njål Sævik CFO Arne Johan Dale

Highlights

Lengthening of Havila Phoenix finalized – ready to serve DeepOcean

Minister of Trade and Industry visiting Havila Jupiter

The CEO of Havila Shipping, Njål Sævik explained to Minister of Trade and Industry , Monica Mæland why the company has to reflag vessels to other national flags. CEO Sturla Henriksen, Norwegian Shipowners' Association was also present when the Minister visited Havila Jupiter 29th April 2014. Picture from Sysla.no Picture: Rune Nielsen

Highlights

• First quarter result is good
• Pre-tax profit MNOK 42
• Good start of the year 2014
• First quarter MNOK 65 better than first quarter last year
• Dividend capacity realistic for the year
• Bank financing achieved to repay bond loans
• Bond spread considerably lower than only a few months ago
• Contract coverage for 2014 is good
• Important vessels on long term charter

Summary of facts and figures Q1

	Freight income	372
	Total income	378
	EBITDA (adjusted)	178
	EBITDA margin	47 %

Utilization 93,4% Time charter fleet

	Q1 14	Mill NOK		Q1 13	Mill NOK
	Freight income	372		Freight income	317
	Total income	378		Total income	330
	EBITDA (adjusted)	178		EBITDA (adjusted)	136
	EBITDA margin	47 %		EBITDA margin	41 %

Utilization 88,3% Time charter fleet

15% increased income: Segments improving

Figures

Main figures

NOK mill	Q1 2014		Q4 2013		Q3 2013		Q2 2013		Q1 2013
Income and gains	378,5		360,2		401.5		367.1		330.4
EBITDA	177,9	47,0%	171,3	47,6%	214.5	53.4%	182.8	49.8%	135.6	41.0%
Pre tax result	41,8	11,0%	4,3	1,2%	75.8	18.9%	33.0	9.0%	-19.6	-5.9%

First quarter: Average reference rate 19 bps lower than first quarter 2013

Interest bearing debt

NOK millions	Q1 14	Q4 13	Q3 13	Q2 13	Q1 13	Q4 12
Long term debt	5 416	4 827	5 341	5 184	5 371	5 525
Next years instalments	652	1 106	698	923	730	736
Total	6 068	5 933	6 038	6 107	6 101	6 261
Interest-bearing financial fixed assets	-4	-4	-5	-5	0	0
Interest-bearing current assets			-4	-4	-4	-4
Bank Deposit	-532	-403	-390	-433	-382	-497
Net	5 533	5 527	5 640	5 665	5 716	5 761

Refinancing agreements for all 2014 bond maturity signed during first quarter

Modern fleet

Value adjusted fleet age: 5 years, 8 month Market value

	Fleet value:	BNOK	8.3
	Not including Havila Troll
	Booked value
	Fleet value:	BNOK	7.5
Excess value:		BNOK	0.8
	Long term financing
	Secured :	BNOK	4.9
	Unsecured:	BNOK	1.1
	Excess value	BNOK	2.3

Fleet age still of the lowest

Calculation date: 30.04.14

Years Months Weeks Days 5 7 4 1

Debt to Market value

3M NIBOR average Interest rates turning up:

• Q1 13: 1.87%
• Q2 13: 1.77%
• Q3 13: 1.71%
• Q4 13: 1.67%

Q1 14: 1.68%

Debt to market value reduced both in actual and relative terms

Quarterly income

2012: 28 vessels From 2013: 27 vessels

11

Quarterly vessel expenses

Opex level in line with guidance: New guidance MNOK 200 quarterly

Operating profit from segments

Q1: Both PSV and AHTS considerably better than one year ago

Segment development

PSV and AHTS increases its part of the business as a result of contracts, utilization and rates

Contractual coverage

Fleet utilization (time charter fleet)

Fleet utilization

High – and stable

78% Firm contracts for 2014: Options included 81%

Contract backlog

Backlog including options BNOK 5.4 – Cover expenses for 2014

Key figures

Assets

Q1: Increased cash balance -> repayment of note issue 2nd April

Equity and liability

Q114: Short term debt reduced following the financing agreements

Summing up

Vessels in Spot Market in Q2

AHTS

• Havila Venus
• Havila Jupiter
• Havila Neptune

PSV

• Havila Crusader
• Havila Fortune (end May)
• Havila Clipper (?)

Market comments

Demand in place

Subsea

High activity

AHTS

• Volatile Spot market
• Lower volatility during summer months
• Vessels leaving the spot-market

PSV

High activity

This is Havila Shipping ASA

• Head-office in Fosnavåg, Norway
• Offices in
  • Rio
  • Labuan
  • Aberdeen
• Partnership with PACC Offshore in Singapore
• A fleet of 27 vessels
• 800 offshore staff
• 42 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	2 042 500	6,8 %
Pareto Aksje Norge	OSLO	1 721 981	5,7 %
Torghatten ASA	BRØNNØYSUND	1 223 100	4,1 %
The Northern Trust Co.	Storbritannia	916 000	3,0 %
Pareto Aktiv	OSLO	696 615	2,3 %
Odin Maritim	OSLO	524 378	1,7 %
Jeki Private Limited	Singapore	500 000	1,7 %
Carvallo International Ltd	Singapore	394 726	1,3 %
Pareto Verdi Vpf	OSLO	319 560	1,1 %
Martin Waaland	KLEPPE	256 000	0,8 %
Hustadlitt AS	MOLDE	252 000	0,8 %
Arthur Sævik	FOSNAVÅG	215 809	0,7 %
Bakkely Invest AS	ULSTEINVIK	214 800	0,7 %
KS Artus	FOSNAVÅG	203 800	0,7 %
Pacific Carriers Ltd	Singapore	185 926	0,6 %
MF Moore LP	U.S.A.	180 000	0,6 %
Verdipapirfondet DNB	OSLO	180 000	0,6 %
Loma Invest AS	OSLO	165 600	0,5 %
MP Pensjon	OSLO	164 370	0,5 %
20 LARGEST		25 584 295	84,8 %
OTHER		4 595 304	15,2 %
Total number of shares		30 179 599	100,0 %

20 largest reduced from 90% to 85% during 2013

Summary

• 2014 has started good
• Main indicators gives positive expectations for the year 2014.
• Already covered full year opex and interest expenses
• Continuing low interest rate
• No unfinanced capex / No new-builds
• No refinancing issues
• Closing in on dividend
• www.havilashipping.no

Q2

Will be released on 22nd July 2014