Havila Shipping ASA

Earnings Release • Oct 21, 2015

Highlights

• Havila Troll extended for one year with Statoil
• Decided lay up of two AHTS vessels
• Havila Mars
• Havila Neptune
• Cost reductions from 4th quarter

• Full effect from 2016

• FX high influence on numbers

• Unrealized losses gives loss on bottom line
• Refinancing activities
• Work in progress

Summary of facts and figures Q3

	Freight income	392
	Total income	378
	EBITDA (adjusted)	194
	EBITDA margin	49 %

Utilization 90.2% Time charter fleet

	Q3 15	Mill NOK	Q3 14		Mill NOK
	Freight income	392		Freight income	497
	Total income	378		Total income	519
	EBITDA (adjusted)	194		EBITDA (adjusted)	273
	EBITDA margin	49 %		EBITDA margin	53 %

Utilization 93.4% Time charter fleet

Summary of facts and figures YTD

	YTD 15	Mill NOK		YTD 14	Mill NOK
	Freight income	1 188		Freight income	1 266
	Total income	1 204		Total income	1 300
	EBITDA (adjusted)	572		EBITDA (adjusted)	652
	EBITDA margin	48 %		EBITDA margin	40 %

Utilization 90.7% Time charter fleet

	Freight income	1 266
	Total income	1 300
	EBITDA (adjusted)	652
	EBITDA margin	40 %

Utilization 93.7% Time charter fleet

Figures

FX exchange rates

Weaker NOK: Gives unrealized FX losses but increases future income

FX effects increases both income and expenses

Q3: NOK weakening against USD, EUR & GBP

Main figures

NOK mill		Q3 2015		Q2 2015		Q1 2015		Q4 2014		Q3 2014		Q2 2014		Q1 2014
Income
and gains	377,7		408,2		418,6		390.4		519.6		402.3		378.5
EBITDA
(Adjusted)	193,8	51,%3	191,2	46,8%	187,8	44,9%	217.9	55.8%	273.2	52.6%	200,6	49.9%	177.9	47.0%
Pre tax		-				-		-
result	-65,3	17,2%	59,4	14,5%	- 60,6	14,5%	-119.2	30.5%	92.6	17.8%	24.4	6.1%	41.8	11.0%

Q3: FX effects on P&L account:

Income reduced by unrealized value change of forward contracts: MNOK 16 Financial expenses increased by unrealized loss: MNOK 67

Interest bearing debt

3M NIBOR average
------------------	--

• Q1 13: 1.87%
• Q2 13: 1.77%
• Q3 13: 1.71%
• Q4 13: 1.67%
• Q1 14: 1.68%
• Q2 14: 1.79%
• Q3 14: 1.71%
• Q4 14: 1.61%
• Q1 15: 1.38%
• Q2 15: 1,43%
• Q3 15: 1,20%

amount.

Q115: MNOK +78 Q215: MNOK - 35 Q315: MNOK + 67

2015: MNOK =110

	NOK millions	Q3 15	Q2 15	Q1 15	Q4 14	Q3 14	Q2 14	Q1 14	Q4 13	Q3 13	Q2 13
3M NIBOR average
Interest rates down 0,23%	Long term debt	4 399	4 880	4 944	5 012	4 836	4 890	5 416	4 827	5 341	5 184
 Q1 13: 1.87%	Next year's instalments	1 329	876	991	899	1 106	1 104	652	1 106	698	923
 Q2 13: 1.77%	Short term debt	5 2	5 1	6 1	1 1
 Q3 13: 1.71%	Total	5 7 7 9	5 8 0 7	5 9 9 7	5 9 2 2	5 9 4 2	5 9 9 4	6 0 6 8	5 9 3 3	6 0 3 8	6 1 0 7
 Q4 13: 1.67%
 Q1 14: 1.68%	Bank Deposit/Other interest-bearing
 Q2 14: 1.79%	assets	-310	-326	-384	-357	-344	-351	-536	-407	-398	-441
 Q3 14: 1.71%
 Q4 14: 1.61%	Net	5 4 6 9	5 4 8 1	5 6 1 3	5 5 6 5	5 5 9 8	5 6 4 3	5 5 3 3	5 5 2 7	5 6 4 0	5 6 6 5

Modern fleet

	Value adjusted fleet age: 7 years, 1 month
	Market value

	Fleet value:	BNOK	8.1
	Not including Havila Troll
Booked value
	Fleet value:	BNOK	7.3
Excess value: BNOK 0.8
	Long term financing
	Secured :	BNOK	4.8
	Unsecured:	BNOK	1.0
	Excess value	BNOK	2.3

Calculation date:		20.10.15
Years	Months	Weeks	Days
7	1	1	3

Fleet values adjusted by USD effect for 5 vessels

Quarterly income

Quarterly vessel expenses

Cost cutting starts to show effect

Operating profit from segments

AHTS: Spot market utilization and rates | PSV: Term contracts improvement | Subsea: FX and additional sale

Contractual coverage

Spot vessels to low

2016: 70% firm / 77% options included

Contract backlog

Backlog excluding options BNOK 3.3:

Calculated on FX rates at end September

Key figures

Assets

Assets stable: BNOK 8.2 – operating vessels 90% of total assets

Equity and liability

Short term debt increased following bond maturity in Q3 2016

Summing up

Market Q4 15

Spot Vessels

• AHTS
• Havila Venus
• Havila Jupiter
• Lay up
• Havila Mars (Oct)
• Havila Neptune (Nov)
• PSV
• None
• Market
• Challenging market
• Possible effect of lay ups

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 (+ one under management))
• 800 offshore staff
• 46 onshore
• Strong operating track record
• A qualified organisation focusing on human resources and solid seamanship

Segments	Current Fleet
PSV	14 + 1 (ext owner)
AHTS	9
SubSea	3
Rescue vessels	1

Largest shareholders

Shareholder	Address	Shares	Interest
Havila Holding AS	FOSNAVÅG	15 379 717	51,0 %
Odin Offshore	OSLO	2 229 323	7,4 %
Pareto Aksje Norge	OSLO	1 977 055	6,6 %
Torghatten ASA	BRØNNØYSUND	1 223 100	4,1 %
The Northern Trust Co.	Storbritannia	916 292	3,0 %
Jeki Private Limited	Singapore	500 000	1,7 %
Carvallo International Ltd	Singapore	394 726	1,3 %
Morten Erga	KLEPPE	375 000	1,2 %
Spilka International AS	ÅLESUND	300 000	1,0 %
Pareto AS	OSLO	258 000	0,9 %
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 %
Olav Magne Tveitå	HORNNES	153 196	0,5 %
Bernhd Brekke AS	TRONDHEIM	150 000	0,5 %
MP Pensjon	OSLO	146 170	0,5 %
Dnb Nor Bank ASA	BERGEN	110 000	0,4 %
Nordnet Bank AB	Sverige	106 938	0,4 %
Venadis AS	KOPERVIK	104 903	0,3 %
20 LARGEST		25 144 755	83,3 %
OTHER		5 034 844	16,7 %
Total number of shares		30 179 599	100,0 %

Summary

• Third quarter acceptable challenging market
• Focusing on keeping vessels working
• Firm contracts signed
• Financing activities ongoing
• High contract coverage for 2016
• Interest rate level reduces financing expenses
• No capex / No new-builds
• www.havilashipping.no

Q4 / 2015 Preliminary accounts

Will be released on 26st January 2016