Havila Shipping (HAVI) Q2 2024 earnings summary

Executive summary

• Q2 2024 freight revenues were NOK 146.0 million, down NOK 49.1 million year-over-year but up NOK 29.3 million sequentially; average rates improved from the previous quarter.

• Operating expenses in Q2 2024 were NOK 74.5 million, a reduction of NOK 33.0 million year-over-year and NOK 6.7 million sequentially.

• Operating income before depreciation was NOK 78.4 million in Q2 2024, compared to NOK 98.4 million in Q2 2023.

• Profit before tax for Q2 2024 was NOK 4.0 million, up from a loss of NOK 5.4 million in Q2 2023.

• Fleet utilization in Q2 2024 was 97%.

Financial highlights

• Total operating income for Q2 2024: NOK 152.9 million (Q2 2023: NOK 206.0 million).

• Total operating expenses for Q2 2024: NOK 74.5 million (Q2 2023: NOK 107.5 million).

• Depreciation in Q2 2024: NOK 35.9 million (Q2 2023: NOK 35.4 million).

• Net financial items in Q2 2024: NOK -196.0 million, mainly due to a NOK -193.3 million value adjustment of debt.

• For H1 2024, total operating income was NOK 279.0 million (H1 2023: NOK 581.0 million, including NOK 209.2 million gain on asset sales).

Outlook and guidance

• The company has received a refinancing offer that can be used at the end of the current agreement period.

• Debt to credit institutions falls due on 31 December 2024, with potential for lenders to convert debt to equity or extend the agreement by one year.

• The restructuring agreement requires a minimum cash position of NOK 50 million and aims to maintain NOK 175 million liquidity.