Havila Shipping ASA

Earnings Release • Feb 29, 2016

Havila Shipping ASA : Fourth quarter 2015 accounts/Preliminary Accounts 2015

Havila Shipping ASA : Fourth quarter 2015 accounts/Preliminary Accounts 2015

General information

The interim accounts are prepared in accordance with IAS 34 Interim Financial

Reporting and are unaudited. The report should be read together with the annual

report for 2014. Figures in parentheses relate to corresponding periods for

Summary

Havila Shipping ASA achieved an operating income before depreciation of NOK 167

million in Q4 2015, compared with NOK 166 million in Q4 2014.

Total operating income was NOK 362 million in Q4 2015, compared with NOK 390

million in Q4 2014.

Write down of vessel values and accrued maintenance values of total NOK 1 388

million was made in Q4 2015.

The group had 28 vessels in operation as of 31/12/2015. 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 was also during fourth quarter

characterized by supply exceeding demand. More than thirthy vessels was laid up

during the quarter.  At the end of 2015 around 100 vessels normally operating in

thi North Sea were laid up. The company operated four AHTS vessels in this

market, and due to the market conditions two of the vessels has been laid-up

during the quarter. In December there were some contracts where acceptable

dayrates were achived.

The fleet utilization was 90 % in Q4 2015.

Result for 4 quarter 2015

* Total operating income amounted to NOK 362.3 million (NOK 390.4 million). As

a result of the cancellation and the risk of further cancellation,  for

vessels operating in Brazil revenues in the fourth quarter decreased by NOK

38.9 million related to income amounts previsously spread over the

contractual period.

* Total operating expenses were NOK 195.1 million (NOK 224.3 million).

* The operating profit before depreciation was NOK 167.1 million (NOK 166.1

million).

* Depreciation was NOK 79.9 million (NOK 71.5 million).

* Write-down of fixed assets was NOK 1 388.3 million.

* Net financial items were NOK 127.9 million (NOK 216.3 million) of which

unrealized agio loss was NOK 39.4 million (NOK 119.7 million).

* The profit before tax was NOK - 1 442.5 million (NOK -119.2 million).

Result 2015

* Total operating income amounted to NOK 1 566.8 million (NOK 1 690.8

million).

* Total operating expenses were NOK 818.4 million (NOK 836.3 million).

* The operating profit before depreciation was NOK 748.4 million (NOK 854.5

million).

* Depreciation was NOK 327.1 million (NOK 268.7 million).

* Write  down of fixed assets was NOK 1 388.3 million.

* Net financial items were NOK 511.3 million (NOK 549.5 million) of which

unrealized agio  loss was NOK 148.0  million (NOK 165.0 million).

* The profit before tax was NOK - 1 508.9 million (NOK 39.6 million).

Balance and liquidity per 31/12/15

Based on the estimates of brokers dated 31/12/15, the fleet had a market value

of NOK 7 486.5 million at the end of December. The values of vessels where the

broker estimates are in foreign currencies are recalculated using exchange rates

as used for balance sheet items.  The book value of the fleet is NOK 5 835.0

million. Book equity per share is NOK 17.

Total current assets amounted to NOK 615.1 million on 31/12/15, whereof bank

deposits were NOK 204.6 million (of this NOK 7.3 million restricted). On

31/12/14, total current assets amounted to NOK 816.2 million, whereof bank

deposits amounted to NOK 350.8 million (of this NOK 22.8 million restricted).

Net cash flow from operations per 31/12/15 was NOK 361.7 million (NOK 376.2

million). Cash flow from investing activities was NOK -83.9 million (NOK -219.0

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

constitute a net change from financing activities of NOK - 431.1 million (NOK

-219.2 million).

Total interest-bearing debt per 31/12/15 is NOK 5 640.4 million. This includes

unsecured loans of NOK 950 million. Of interest-bearing debt, 17.5 % is loan in

USD, while the remainder is nominated in NOK. Both bank loans and bond loans are

classified as current liabilities as of 31/12/15 according to the IFRS

regulations.

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#1990211]