Havila Shipping ASA 3 rd Quarter 2015 CEO Njål Sævik CFO Arne Johan Dale 21.10.15
Highlights Havila Troll extended for one year with Statoil Decided lay up of two AHTS vessels Havila Mars Havila Neptune Cost reductions from 4 th quarter Full effect from 2016 FX high influence on numbers Unrealized losses gives loss on bottom line Refinancing activities Work in progress 2
Summary of facts and figures Q3 Q3 15 Mill NOK Q3 14 Mill NOK Freight income 392 Total income 378 EBITDA (adjusted) 194 EBITDA margin 49 % Freight income 497 Total income 519 EBITDA (adjusted) 273 EBITDA margin 53 % Utilization 90.2% Time charter fleet Utilization 93.4% Time charter fleet 3
Summary of facts and figures YTD YTD 15 Mill NOK YTD 14 Mill NOK Freight income 1 188 Total income 1 204 EBITDA (adjusted) 572 EBITDA margin 48 % Freight income 1 266 Total income 1 300 EBITDA (adjusted) 652 EBITDA margin 40 % Utilization 90.7% Time charter fleet Utilization 93.7% Time charter fleet 4
Figures
FX exchange rates 13,0000 12,5000 12,0000 11,5000 11,0000 10,5000 10,0000 9,5000 9,0000 8,5000 8,0000 7,5000 7,0000 6,5000 6,0000 5,5000 5,0000 D12 F13 A13 J13 A13 O13 D13 F14 A14 J14 A14 O14 D14 F15 A15 J15 A15 USD GBP EUR Weaker NOK: Gives unrealized FX losses but increases future income FX effects increases both income and expenses Q3: NOK weakening against USD, EUR & GBP 6
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% 600 500 400 300 200 100 520 378 273 235 194 95 Q3 15 Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 INCOME EBITDA (adj.) EBIT 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 7
Interest bearing debt 3M NIBOR average Interest rates down 0,23% 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% NOK millions Q3 15 Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 Long term debt 4 399 4 880 4 944 5 012 4 836 4 890 5 416 4 827 5 341 5 184 Next year's instalments 1 329 876 991 899 1 106 1 104 652 1 106 698 923 Short term debt 52 51 61 11 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 Bank Deposit/Other interestbearing assets 310 326 384 357 344 351 536 407 398 441 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 Stronger USD has increased Long term debt by MNOK 292 compared to initial amount. Q115: MNOK +78 Q215: MNOK 35 Q315: MNOK + 67 2015: MNOK =110 Q3 15 Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 Q1 13 Q4 12 Existing Reconstruction FX effekts 8
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 Building year 88 % 5 % 7 % 19962000 2001 2006 2007 2011 9
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 357 354 361 341 330 367 401 360 379 402 390 419 408 378 520 Quarterly income 600 500 400 300 200 100 Foreign WHT of MNOK 18 included 2012: 28 vessels From 2013: 27 vessels 10
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Quarterly vessel expenses 250,0 225,0 200,0 175,0 150,0 125,0 36,9 36,8 20,5 17,9 46,0 41,1 37,5 20,4 41,1 9,6 26,5 29,7 9,2 9,6 10,0 10,3 13,3 25,5 18,1 18,9 25,9 24,7 40,2 40,8 41,2 43,7 46,0 21,3 19,5 26,1 18,9 45,4 45,0 18,9 24,8 32,8 25,6 47,4 42,2 21,6 22,5 37,3 23,9 21,2 37,5 100,0 75,0 50,0 113,4 122,3 112,8 104,5 115,3 117,2 120,1 114,2 110,9 118,8 122,1 125,2 125,7 123,8 117,2 25,0 Crew Vessel Other Hire Cost cutting starts to show effect 11
6 6 5 5 4 6 6 18 6 15 16 16 17 22 19 17 27 46 55 57 51 54 57 64 63 66 78 80 86 85 91 94 88 99 144 Operating profit from segments 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 10 PSV AHTS AHTS Asia RRV SubSea Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 AHTS: Spot market utilization and rates PSV: Term contracts improvement Subsea: FX and additional sale 12
Q1 15 Q2 15 Q3 15 Q4 15 2015 2016 2017 2018 2019 11% 29% 13% 45% 70% 85% 85% 27% 28% 7% Contractual coverage Fleet utilization (time charter fleet) Contract coverage 20152019 Q4 11: 92% Q1 12: 94% Q2 12: 93% Q3 12: 93% Q4 12: 90% Q1 13: 88% Q2 13: 94% Q3 13: 93% Q4 13: 91% Q1 14: 93% Q2 14: 93% Q3 14: 95% Q4 14: 94% Q1 15: 92% Q2 15: 90% Q3 15: 90% Fleet utilization 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 Quarterly average Annual average Quarterly options Annual options Spot vessels to low 2016: 70% firm / 77% options included 13
Q1 15 Q2 15 Q3 15 Q4 15 2015 2016 2017 2018 2019 From 2020 419 408 378 388 287 289 429 744 259 1 225 518 764 487 96 Contract backlog 1 800 1 600 1 400 1 200 1 000 800 600 1205 388 400 200 YTD Annual backlog Annual option Quarterly backlog Quarterly option Backlog excluding options BNOK 3.3: Calculated on FX rates at end September 14
Q113 Q313 Q114 Q314 Q115 Q315 Key figures EBITDA % VALUE PER SHARE EARNINGS PER SHARE 60% 100 4,00 98 97 97 95 98 95 95 95 3,00 55% 92 2,40 2,22 53% 90 90 53% 89 87 2,00 1,78 51% 50% 85 1,23 50% 50% 0,87 1,00 48% 0,56 80 47% 47% 47% 45% 45% 75 71 70 41% 40% 66 67 69 67 6869 (1,00) 67 67 (0,95) 65 65 64 (2,00) (1,70) 60 (2,16) 35% (2,40) 55 (3,00) 30% 50 (4,00) (5,00) (4,09) BOOKED EQUITY PER SHARE MARKET ADJUSTED VALUE PER SHARE 15
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 7 552 7 539 7 525 7 504 7 489 7 555 7 507 7 472 7 431 7 367 7 294 Assets 9 000 8 000 7 000 6 000 831 814 841 742 967 831 869 821 842 792 779 100 % 90 % 80 % 70 % 5 000 60 % 4 000 3 000 50 % 40 % 30 % 2 000 20 % 1 000 10 % 0 % Vessels Other Current Vessels Other Current Assets stable: BNOK 8.2 operating vessels 90% of total assets 16
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 1 989 2 008 2 075 2 022 2 058 2 075 2 148 2 021 1 956 2 012 1 934 5 557 5 286 5 443 4 958 5 545 5 021 4 974 5 140 5 072 5 010 4 543 984 1 151 940 1 364 937 1 378 1 357 1 217 1 328 1 224 1 685 Equity and liability 9 000 100 % 8 000 90 % 7 000 80 % 6 000 70 % 5 000 4 000 60 % 50 % 40 % 3 000 30 % 2 000 20 % 1 000 10 % 0 % Equity Long term debt Short term liability Equity Long term debt Short term liability Short term debt increased following bond maturity in Q3 2016 17
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 19
This is Havila Shipping ASA Headoffice 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 PSV AHTS 9 SubSea 3 Rescue vessels 1 Current Fleet 14 + 1 (ext owner) 20
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 % 21
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 newbuilds www.havilashipping.no Q4 / 2015 Preliminary accounts Will be released on 26 st January 2016 22