Havila Shipping ASA - First quarter reporting

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Apr 2009

Havila Shipping ASA achieved a result before tax of NOK 164.4m in Q1 2009, compared with NOK 314.8m in Q1 last year, whereof NOK 311.8m was profit from sale of assets. •              Net financial items include unrealized agio on currency positions and forward rate contracts of NOK 101.1m for 1st  quarter.
•              Total income in Q1 2009 ended at NOK 212.2m, compared to NOK 453.1m in Q1 2008, whereof NOK 311.8m was profit from sale of assets.
•              The Group had 16 vessels in operation per 31/03/2009. This includes Havila Mars and Havila Mercury that was sold and leased back in Q1 2008, two vessels that are operated by the joint venture company Posh Havila Pte Ltd in Singapore and one vessel that are owned by HavShip DA. One vessel, Havila Phoenix, was delivered in Q1 2009 and are operating on a contract in Mexico.
The spot market for offshore service vessels was weak during first quarter with a lot of vessels offhire resulting in low dayrates for the vessels working.  The company had one PSV and one AHTS vessel in the spot marked during the quarter.  The PSV vessel worked at acceptable dayrates up to Marsh when the vessel left the market for 3 weeks docking and 10 years classification.  The AHTS vessel was offhire 23 days during the quarter and some of the accepted dayrates was at a level close the operating expenses for the vessel.
The company's financial figures and comparative figures are prepared in accordance with IFRS regulations.
Q1 2009 results
Total income for Q1 2009 amounted to NOK 212.2m (NOK 453.1m included profit from sale of assets of NOK 311.8m).  
Total operating expenses of NOK 100.8m (NOK 77.9m) includes leaseback expenses for Havila Mercury/Mars for Q1 in 2009 and 2008 of NOK 26.8m and NOK 23.2 mill, respectively. 
The operating profit after depreciation (EBIT) in the period was NOK 83.3m (NOK 352.5 m).
Net financial income in the period amounts to NOK 78.3m (NOK -37.7m). Net financial items are positive in the period due to unrealised agio on loans in foreign exchange and decreased foreign exchange rates for currencies where future income are fixed by forward agreements.
The profit before tax for the period was NOK 164.4m (NOK 314.8m).
Balance and liquidity per 31/03/09
Based on the estimates of several independent brokers dated 31/12/08, the fleet had a market value of NOK 4 230m at the end of March. This is equivalent to a value per share of NOK 159. The book value of the fleet excluding new buildings is NOK 2 960m. Capitalized advance payments on new buildings total NOK 857.4m and NOK 923.6m on 31/03/09 and 31/12/08, respectively. 
Total current assets amount to NOK 567.3m on 31/03/09, whereof bank deposits are NOK 267.6m. On 31/12/08, total current assets amount to NOK 1 060.8m, whereof bank deposits was NOK 698.2m (of this NOK 391.5m restricted). Net cash flow from operations per 31/03/09 was NOK 46.3m (NOK 2.7m). There was a negative cash flow from investing activities in Q1 2009 of NOK 667.6m. This primarily relates to delivery of vessels. Raising and repayment of loans constitutes a net change from financing activities of NOK 114.7m (NOK 194.3m).
Total long-term interest-bearing debt at 31/03/2009 is NOK 2 560.2m. This includes bond loans of NOK 450.0m. Of this, 27% is loan in USD, while the remainder is nominated in NOK. Next year's repayment of debt is classified as current liability in conformity with IFRS, and amounts to NOK 158.1m. Non-current liabilities relating to deferred tax and environmental liability in connection with the transition to the new shipping tax regime, is recognised at NOK 41.6m. "Environment fund" of NOK 25.7 mill is included in equity as of 31 March 2009.

Source: Havila Shipping