Havila Kystruten AS

Earnings Release • Aug 28, 2025

Havila Kystruten AS: Second quarter 2025 accounts

Havila Kystruten AS: Second quarter 2025 accounts

Summary

Havila Kystruten continues its positive trajectory, delivering strong

operational performance and positive EBITDA in Q2 2025, driven primarily by top-

line growth. The Company reported total revenues of MNOK 416, with operational

revenue up 22% year-over year.

This growth was fuelled by an 18% increase in passenger nights and a 20% rise in

average cabin rate (ACR). Occupancy improved to 74% (from 69%), and the cabin

factor rose from 1.78 to 1.88. The southbound route showed particularly strong

performance due to targeted initiatives. Onboard sales increased by 12% year-

over-year. Q2 2024 results was partly impacted by Havila Pollux being out of

service for two roundtrips due to maintenance/dry-docking.

Operating expenses remained stable compared to Q1 2025 but increased 8% versus

Q2 2024, mainly due to higher activity and general cost inflation. The largest

increase (17%) was in cost of goods sold, directly linked to passenger growth.

Administrative costs rose due to the ongoing refinancing process and related

advisory fees.

EBITDA reached MNOK 79, up 35% from Q2 2024 and significantly higher than MNOK

11 in Q1 2025.

The Company's profit and balance sheet have been significantly impacted by

currency fluctuations, especially between the NOK and the EUR. In the second

quarter, this resulted in a net foreign exchange loss of MNOK 141, compared to a

net gain of MNOK 129 in the previous quarter and MNOK 78 in the same period last

year. This affects the book equity, which stood at a negative MNOK 661 at the

end of June 2025. When accounting for the ships' market value, the value-

adjusted equity is positive MNOK 3,132.

Operational efficiency across the fleet was very high during the quarter, with

100% uptime. At the same time, Havila Kystruten continued its focused

sustainability efforts. CO2 emissions were reduced by 38% compared to the 2017

Coastal Route baseline. The Company also achieved its ambitious target of

reducing food waste to less than 75 grams per guest per day, with an actual

result of 57 grams in the second quarter.

Employees

Havila Kystruten had a total of 560 permanent employees as of June 30, 2025, of

which 498 were seafarers and 62 in the administration.

Subsequent events and trading outlook

In July, the Company amended its secured bond, extending maturity to January

2027 and reducing the interest rate to 6.5% for the first five months. The new

terms enhance financial flexibility, with a revised principal of MEUR 326. HKY

is actively pursuing longer-term financing options to support growth and prepare

for the upcoming government tender (see Note 11 for details).

In August, the Company renegotiated its LNG procurement agreement, introducing a

dual-supplier model with one-third of volumes sourced from Northern Norway

through 2030. The new structure is expected to reduce annual fuel costs by over

10% from Q4 2025 and improve supply flexibility.

As of today, 66% of the capacity for 2025 has been booked, which corresponds to

88% of the annual target for cabin nights. Occupancy for the third quarter is

currently at 80%, with more than one month remaining in the quarter. The balance

between the northbound and southbound routes continues to improve, which

increases flexibility and enables more sales closer to the departure date.

For 2026, 28% of capacity is already booked at significantly higher average

prices (ACR) than for 2025. Early bookings provide a basis for expectations of

continued top-line growth and improved EBITDA margins.

The market for travel to Norway continues to grow, and Havila Kystruten's

modern, environmentally friendly fleet has been well received-evidenced by

multiple international awards. The Company's strong sustainability profile

provides a clear competitive advantage, supporting both price increases and

higher occupancy.

With a more experienced organization and ongoing improvements to digital sales

channels, the focus remains on increasing direct bookings, which historically

yield higher prices closer to departure. The Company will continue to actively

balance occupancy and pricing to optimize margins throughout the year.

Efforts to increase onboard sales are ongoing, with targeted pricing strategies

and product promotions aimed at increasing revenue from ancillary services and

guest experiences. The strategy of offering shorter trips is now established and

under further development. During the summer season, sales of shorter voyages

increased by over 40%, confirming strong market interest. This segment shows

significant potential for optimized revenues and attracting a broader customer

base with a lower average age-particularly among travellers with high

willingness to pay. Targeted marketing and commercial initiatives have been

implemented to capitalize on this opportunity.

Contacts:

Chief Executive Officer: Bent Martini, +47 905 99 650

Chief Financial Officer: Aleksander Røynesdal, +47 413 18 114

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act