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Havila Shipping - 3Q Results 2006   1.11.2006 09:51:24
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 Havila Shipping - 3Q 2006.pdf

RESULTS AT 30.09.2006




·         Havila Shipping ASA achieved a profit before tax of NOK 78,1 mill in 3rd quarter of 2006.

·         Operating revenues in 3rd quarter increased to NOK 179,1 mill, from NOK 165,5 mill in 2nd quarter of 2005.

·         EBITDA margin was 63% in 3rd quarter of 2006

·         The company has liquid assets of NOK 553,9 mill at 30.09.2006.

·         Total income ended at NOK 475 mill per 30.09.2006. This is an increase of NOK 101 mill compared to 30.09.2005.  Profit before tax amounted to NOK 162,2 mill per 30.09. 2006


A very strong spot market in all offshore service segments led to all time high charter rates and high utilisation of the fleet throughout this period. Havila Shipping ASA expects still high activities in all segments, but variations due to the season will influence both activity and charter rates during the winter.


Havila Shipping ASA takes part in a newbuilding program of 6 vessels in Norway and 6 vessels in China. All of which delivery take place during 2007 and 2008.


The Group's accounting figures for 2006 and comparable figures for 2005 have been prepared in accordance with IFRS accounting principle.


Result, 3rd quarter 2006


The profit before tax amounted to NOK 78,1 mill in the 3rd quarter of 2006, against NOK 86,2 mill (included a profit from sale of vessels of NOK 26,8 mill) in the 3rd quarter of 2005.


Operating revenues amounted to NOK 179,1 mill for the 3rd quarter, compared to NOK 176,1 mill (included a profit from sale of vessels of NOK 26,8 mill) for the 3rd quarter of 2005. The operating result before depreciation (EBITDA) was NOK 113,2 mill in 3rd quarter 2006. The operating result (EBIT) including depreciation was NOK 88,3 mill, against NOK 97,7 mill in 2005.


Net financial expenses amounted to NOK 10,1 mill. Unrealised currency loss relating to a currency loan in USD is NOK 6 mill. The result from associated companies is NOK 15 mill, of which NOK 13 mill is related to sale of 30% owned KS Havila Fortune. Interest expenses in the 3rd quarter of 2006 were NOK 18,8 mill, compared to NOK 10,4 mill in 3rd quarter of 2005.


Results at 30.09.2006


Profit before tax is NOK 184 mill at 30.09. 2006, compared with NOK 134,9 mill at 30.09. 2005.


Operating revenue is NOK 475,1 mill compared with NOK 374,2 mill at 30.9 2005. Operating profit before depreciation (EBITDA) is NOK 278 mill in this period. Comparable figures for 2005 are NOK 208,1 mill. Results of Financial Items are NOK 20,4 mill in this period, compared to NOK 28,1 mill in 2005. Financial items include 30.09.06 an unrealised gain on currency loan USD of NOK 6,8 mill.


Tax has been estimated to NOK 21,7 mill in the period, compared to NOK 37,7 mill at 30.09.2005. One of the ship-owning companies in the group has been taxed according to the Norwegian rules on taxation of shipping companies.


Profit after tax is NOK 162,2 mill in the period, compared with NOK 97,1 mill at 30.09.2005. The increase in profit is mainly due to increased activity and higher charter rates for the companies' vessels.


Liquid Assets and Balance Sheet


The Group has liquid assets of NOK 553,9 mill at 30.09.06.

Net Cash Flow from operating activities is NOK 200,8 mill at 30.09.2006. Investments in the period are NOK 308,3 mill, mainly due to the purchase of Havila Fortress and prepayment on newbuildings contracts.

Net Cash Flow from financial activities amounts to NOK 134,8 mill and relates to raising and repaying of loans, share capital issue of NOK 80 mill, and distribution to the shareholder of NOK 32 mill.


Based on independent broker-estimates, the fleet has a market value of NOK 2 147 mill. Net book value of the fleet is NOK 1 715 mill. Prepayments on new-building contracts have been booked 30.09.2006 at NOK 185,6 mill, of which NOK 139,5 mill has been paid in 2006.


The Group's interest bearing debt at 30.09.2006 was NOK 1 558 mill including a listed bond loan on NOK 250 mill. Next year repayment of debt is classified as current liability according to IFRS accounting rules, and amounts to NOK 87,7 mill. Long term debt is divided into approx. 10% USD and 90% NOK.




The market for all types of offshore vessels has been very good throughout the summer. The charter rates have been historically high. Havila Shipping ASA expects still increased rig activities and high activity within the oil exploitation and the sub-sea related services. Going forward, this will lead to increased demand for all types of offshore vessels, but season variation will influence on the activity and the charter rates during the winter.




The vessel Havila Fortune, of which Havila Shipping ASA owned 30 %, was sold in July to BOA Offshore AS. The PSV vessel of the UT 706 type, was built in 1992. In the period February 2005 to September 2005, Havila Shipping ASA owned the vessel 100 %.


Havila Shipping ASA entered 19.10.06 into a Heads of Agreement with the Ocean Mainport Group regarding sale of the British stand- by fleet. 8 vessels are included in this transaction, which will be completed before the year-end. The Group owns after this 9 vessels, and has in total 4, 100% owned, and 8 partly owned vessels under construction. The Vessels are split between 1 Sub Sea construction, 10 AHTS, 8 PSV and 2 Rescue/Recovery vessels. The Group entered into an agreement in June with Havyard Leirvik for the building of a large SubSea Construction Vessel. Through the establishment of a 50% Joint Venture Company, Pacc Havila Ltd. in Singapore, the group get access to 6 AHTS vessels which are under construction in China. The vessels will be delivered during 2008.


The Fleet operates today on Norwegian, Danish and British sector of the North Sea.


Company and Shareholder Situation


The Group has at 30.09.2006 23 employees in the administration including approx 420 sea- farers. The administration is divided between the head office in Fosnavåg with 13 employees, and the office in Aberdeen with 10 employees.


Havila Shipping ASA has been listed on Oslo Stock Exchange since May 2005. The Company's market value is 30.09.06 NOK 1 053 mill based on a market price of NOK 66 per share. Share Capital at 30.09.06 is NOK 399 000 000 divided on 15 960 000 shares with a nominal value of NOK 25,-. Havila Shipping ASA has one share class, of which each share carries one vote at the general meeting. The Company had at 20.10.06 1105 share holders. Havila AS owns 50,32 % of the company.


The board of Havila Shipping ASA

31 October 2006