Hunter Group ASA

Earnings Release • Aug 30, 2019

Hunter Group ASA -  Second Quarter Results 2019

Hunter Group ASA -  Second Quarter Results 2019

Highlights

Financial highlights

Net profit from continuing operations came in at USD 1,101t in Q2 2019 compared

to USD -443t in Q2 2018. The net profit in Q2 is mainly attributable to

financial income.

Total operating expenses from continuing operations was reduced from USD 709t in

Q2 2018 to USD 133t in Q2 2019.

Key events in Q2 2019

Post-delivery bank financing came in place. USD 420m of bank financing secured

from a syndicate of leading international shipping banks. The loan will finance

approximately 60% of the construction cost with available draw at delivery of

each vessel. Key terms: 275bps margin, 16 years repayment profile, 5-year tenor.

Successfully completed private placement, raising gross proceeds of

approximately NOK 695 million through the allocation of 190,454,000 shares at a

subscription price of NOK 3.65 per share. As of the date of this report, the

company has 575,362,013 shares outstanding.

Negotiated earlier delivery of newbuilds. New delivery dates for the first four

vessels are: H.No. 5455 16/9-2019, H.No 5456 27/9-2019, H.No. 5457 31/10-2019

and H.No. 5460 31/10-2019.

OSM Ship Management selected as technical manager for all the Company's

Newbuildings post-delivery.

The Company has received a bid from a third-party buyer for two of its

Newbuldings at an en-bloc sales price of USD 196m (USD 98m per vessel). As of 17

June 2019, the Company signed a Memorandum of Agreement with Far Eastern buyers

to sell one of the Company's vessels at a price of USD 98m. As security for the

correct fulfillment of the MoA the Buyers have agreed to pay a deposit equal to

20% of the purchase price. The vessel will be delivered to the Buyers on October

31st 2019 which will also be the closing date for the transaction. The sale of

the vessel will generate a USD 37.6m positive cash flow effect. Furthermore, the

Company is still in advanced discussions regarding the sale of a second vessel.

Hunter Group assigned Mr. Lars M. Brynildsrud as CFO of the Company as from 12

August 2019. Mr. Brynildsrud has more than six years of investment banking

experience and has been involved in a wide range of shipping and offshore

related capital market transactions.

Naming Ceremony completed on August 20th for Hunter Atla (H.No. 5455), Hunter

Saga (H.No. 5456) and Hunter Laga (H.No. 5460).

The Company has agreed to enter into a binding term sheet for a 5-year sale-and

-leaseback agreement with a large leasing company at highly attractive terms.

The Board is of the opinion that the agreement is beneficial to all shareholders

as it retains maximum flexibility for the Company and eliminates the need for

any additional equity in order for the company to take delivery of all vessels

in the newbuilding program.  Consequently, the Company has cancelled the senior

secured term loan announced on May 22nd, 2019.

Contact: Lars Brynildsrud CFO +47 932 60 882 lb@huntergroup.no