Havila Shipping ASA: Q1 2017 accounts

Summary



The financial restructuring of the group was executed on 28 February 2017.



The subsequent offering was executed on 30 March 2017. Effects of the



restructuring:



· Increase in equity of NOK 1,548 million.



- For detailed information see equity statement.



· Reduction in debt to secured and unsecured creditors



of total NOK 1, 285 million.



· Reduction in other short term debt NOK 356 million.



· Reduction in cash of NOK 112 million.



Havila Shipping ASA achieved an operating income before depreciation of



NOK 21 million in Q1 2017, compared with NOK 149 million in Q1 2016.



Total operating income was NOK 145 million in Q1 2017, compared with



NOK 335 million in Q1 2016.



The group had 26 vessels in operation as of 31/03/2017. 23 vessels are



operated from Fosnavåg, one for external owner. Three vessels are operated



by the 50 % owned company in Singapore, Posh Havila Pte Ltd. As a part



of the restructuring, these vessels will be sold and the company winded up.



One of the Posh-vessels was sold in April 2017.



The Group had 9 vessels laid up at the beginning of first quarter, of this



5 PSV, 3 AHTS and 1 subsea vessel. In addition is one of the subsea vessel



marketed for work after ended contract. The subsea vessel which has been



laid-up since 1 January 2016, has got a 3 year contract and is after stay at



yard and mobilization now operating. In addition is one AHTS vessel taken















out of lay-up at the end of the quarter, and one PSV vessel is taken out of



lay-up in April.



The fleet utilization was 41 % in Q1 2017, 63 % exclusive lay up



vessels.



The financial restructuring of the group



Main elements of the restructuring which was mainly executed on 28



February 2017:



· NOK 77.0 million of new equity, NOK 41.2 million of "Anti-Dilution



Protection loan" and NOK 46.2 million of convertible shareholder



loan.



· Secured creditors have converted NOK 135.0 million of accrued



 interests to shares.



· Subsequent offering of NOK 30 million.



· Unsecured debt amounting to NOK 950 million and accrued unpaid



interest related to the debt were repaid in full by 15% cash payment



and certain warrants.



· Vessels are divided into core and non-core vessels, where non-core



vessels will be disposed for sale.



· Estimated loss on sale of the seven non-core vessels in addition to the vessel
which was sold before year-end is NOK 322.3 million,



and were booked as reduction of the relevant debt and increase of



equity accordingly at implementation of the restructuring.



Reduced amortisation obligations for the next four years. Minimum



fixed amortisation is reduced to approximate NOK 67 million for the



period 2017-2019. Total amortisation is limited to 50% of net cash



flow from cash flow positive vessels.



· Suspended financial covenants save for minimum cash of NOK 50



million.



· Others terms as stated in the term sheet.



Costs related to restructuring in Q1 17 are NOK 33.4 million (NOK 6.6



million Q1 16) whereof NOK 5.6 million (NOK 1.4 million) are classified as



operating expenses and NOK 27.7 million (NOK 5.2 million) are classified



as financial expenses.



For detailed information it is referred to the Stock Exchange Release



regarding the financial restructuring available at the homepage



www.havilashipping.no.



















Result for 1 quarter 2017



· Total operating income amounted to NOK 144.7 million (NOK 334.9 million).



· Total operating expenses were NOK 123.5 million (NOK 186.3 million).



· The operating profit before depreciation was NOK 21.2 million



(NOK 148.5 million).



· Depreciation was NOK 83.3 million (NOK 81.7 million).



· Net financial items were NOK 808.8 million (NOK -30.6 million) of which



redemption of debt to discount was NOK 883.9 million and unrealized agio



gain was NOK 8.3 million (unrealized agio gain NOK 54.8 million).



· The profit before tax was NOK 747.5 million (NOK 29.7 million).



· Exclusive restructuring elements the profit before tax was



NOK -103.5 million (NOK -50.5 million Q1 16).















Balance and liquidity per 31/03/17



The book value of the fleet is NOK 4, 523.4 million. Book equity per share



is NOK 0.40.



Total current assets amounted to NOK 763.4 million on 31/03/17, whereof



bank deposits were NOK 448.3 million (of this NOK 5.5 million restricted).



On 31/03/16, total current assets amounted to NOK 274.2 million, whereof



bank deposits amounted to NOK 204.6 million (of this NOK 7.3 million



restricted).



Net cash flow from operations per 31/03/17 was NOK -89,9 million (NOK



94.0 million). Cash flow from investing activities was NOK -9.3 million (NOK



-3.8 million). Recoverment of convertible shareholder loans, net issues,



repayment loan and payment of installments constitute a net change from



financing activities of NOK -4.0 million (NOK -14.1 million).



Total interest-bearing debt per 31/03/17 is NOK 4, 300 million. Of
interestbearing



debt, 20.7 % is loan in USD, while the remainder is nominated



in NOK. Secured debt are classified as long term debt following the



implementation of the restructuring, except from first year installment is



classified as short term debt.







Contacts:



CEO Njål Sævik + 47 909 35 722



CFO Arne Johan Dale +47 909 87 706
























This information is subject to the disclosure requirements pursuant to section
5 -12 of the Norwegian Securities Trading Act.