The growth in revenues is due to both higher occupancy (69% versus 62% last year) and increased average cabin revenue (pre-sales) of NOK 5,200 compared to NOK 4,500 in the second quarter of 2023. Occupancy and average cabin income also increased in the first half of the year compared to last year. Contract revenues are CPI-adjusted relative to 2023.

Operating expenses were NOK 311 million in the second quarter, mainly related to ordinary operating costs for four vessels. Some costs are dependent on passenger volume, but the largest items are not significantly affected by occupancy.

EBITDA was positive at NOK 58 million in the second quarter, up from a negative NOK 15 million in the same period last year. For the first half-year, EBITDA was NOK 41 million, compared to negative NOK 111 million last year.

The result and the balance sheet are significantly affected by fluctuations in exchange rates, especially the value of the Norwegian kroner against the euro, which creates unrealized foreign exchange loss since the ship financing is in euros. Unrealized exchange rate losses have also affected the book equity. However, when adjusting for broker valuations of the ships and considering that the second-hand market for the vessels operates in foreign currency, the value-adjusted equity is significantly positive.

The fleet's operational uptime was 94% in the second quarter. CO2 emissions were 36% lower compared to the reference figures from the Coastal Route in 2017. The company met its goal of less than 75 grams of food waste per guest night in the second quarter with a result of 70 grams.

As of August, 70% of the capacity for 2024 has been sold, and expectations for the year are slightly adjusted. High-season sales started late for the last two vessels, and higher-than-expected cancellations in group allotments have been challenging to re-sell at short notice. The company has therefore implemented stricter conditions for group allocations going forward. An average occupancy of about 75% is expected for 2024.

Outlook

The outlook for continued positive development is promising. The ships have been very well received by both passengers and the coastal population, and the company expects that the modern and environmentally friendly vessels, along with a strengthened brand will contribute to increased demand moving forward.

The strategy of offering shorter trips opens up new and exciting commercial opportunities aimed at travellers with a higher willingness to pay - opportunities that the company is actively working to develop. In particular, Havila see potential to increase occupancy and passenger numbers on the southbound route from Kirkenes to Bergen, which traditionally has lower occupancy compared to the northbound route from Bergen to Kirkenes.

The company is also well-positioned for further revenue growth through increased prices. Prices realized so far in 2024 have been partially influenced by ticket sales from previous years, where rebookings due to cancellations have been made at the original price, as well as campaigns with lower prices for larger groups to build the brand and secure a base level of occupancy during the startup phase. However, digital sales through the company's own channels close to the departure date have achieved significantly higher prices, and the company is seeing continuous growth in direct bookings through its own channels.

Results for the second quarter of 2024

- Revenue totalled NOK 369 million, of which NOK 97 million was revenue from the Ministry of
Transport.
- Total operating costs consisted of NOK 42 million in cost of goods sold, NOK 103 million in salary costs, and NOK 166 million in other operating costs.
- Operating profit before depreciation was NOK 58 million.
- Depreciation was NOK 62 million.
- Net financial items were NOK – 96 million.
- Profit before tax was NOK – 99 million.

Balance sheet and liquidity as of 30.06.2024

- Total fixed assets were NOK 4,260 million, of which ships accounted for NOK 4,200 million.
At the end of the period, the average broker value for the ships was estimated at EUR 704 million.
- Current assets were NOK 497 million, of which cash and cash equivalents accounted for
NOK 280 million, of which NOK 5 million are restricted funds for tax deductions.
- The carrying amount of long-term debt was NOK 4,083 million, of which debt to
financial institutions amounted to NOK 2,982 million.
- Book equity was NOK 8 million. The value adjusted equity, based on shipbrokers' valuations, is significantly higher.
- Total current liabilities were NOK 667 million.
- Net cash flow from operating activities was NOK 28 million. Other accrued items are mainly related to advance payments for future voyages.
- Net cash flow from investing activities was NOK – 13 million.
- Net cash flow from financing activities was NOK 74 million.

Employees

Havila Kystruten had a total of 533 permanent employees as of 31 March 2024, of
which 482 were seafarers and 51 were in administration.

© Shippax