Havila Shipping: Subsea Vessel Contracts Paying Off (Norway)

Havila Shipping ASA delivers a strong third quarter. Pre-tax result is NOK 21.1 million. The positive third quarter result brings the offshore company into black for the year to date with a positive result before tax of NOK 6.8 million, an improvement of around NOK 90 million on the third quarter 2011.

Several options have been declared over the past few days, emphasising that the Fosnavåg-based offshore company is on the right course.

Havila Shipping ASA had a total income of NOK 1 071.9 million for the first three quarters of 2012, compared to NOK 999.9 million for the same period 2011, an increase of NOK 80 million. Adjusted for the sale of a vessel in 2011, the total difference was NOK 134 million.

Commenting on the results for the third quarter, CEO Njål Sævik says he is fairly satisfied, but that they still have some way to go before the company delivers results with which he is completely happy.

”Our efforts securing contracts for our PSVs and Subsea-vessels are paying off. We are not, however, completely happy with the situation for the AHTSs’ in the spot market, but at the same time, it is in this segment we expect to see the biggest improvements to results going forward,” he says.

Independent analysts value the Havila fleet at around NOK 7.72 billion, which would equal a value-adjusted equity per share of NOK 125. Today’s share price is around NOK 30 – in other words less than a fourth of this.

”Through improving our debt structure for the long term, we are increasing our options. Our aim going forward is to increase the profitability of the fleet we have now – a North Sea fleet with a value-adjusted age of just over 4 years. We increase this by one new-build in the 4th quarter, a PSV which will go straight into a 5 year contract with Statoil,” says CEO Njål Sævik.

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Press Release , November 05, 2012