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    Havila Shipping expecting further growth - share price could double claims CEO

    Company News // May 11, 2012

    Havila Shipping in Norway achieved an EBITDA of NKr 140 million, compared to NKr 90 million in the first quarter of 2011.

    The operating margin was 33 per cent, compared to 18 per cent in the same period last year. Profit before tax has improved considerably, from a loss of NKr 25 million in 2011 to minus NKr 3.5 million in 2012.

    Njål Sævik, CEO of Havila Shipping, said the company was ready to reap the benefits following a few years of heavy investments, which has seen Havila Shipping build up what it believes is the most modern fleet among the larger Norwegian offshore companies.

    ”Our results are continuously improving. There is a noticeable increase from one month to the next in the demand for our new and modern ships,” he said.

    The average age of Havila Shipping’s North Sea fleet is less than three years.

    Havila Shipping’s new fleet of large subsea vessels had an operating margin of 62 per cent. The 13-strong fleet of PSVs had an operating margin of 34 per cent. 

    The company has also built up large fleet of newly-built anchor handlers (AHTS). For the moment being, this is not the most profitable part of the fleet, said Havila, but this is expected to change soon.

    The company has three of these vessels strategically placed in the North Sea spot market, a market which the analytics all agree with continue to increase over the coming months and years.

    ”We believe that our strategy of keeping these vessels in the spot market will prove to be a right move, going forward. I notice that the market analysts seem to share my opinion on this,” said Mr Sævik.

    Havila Shipping was also one of the big winners when it comes to new, lucrative contracts awarded in 2012. Combined, the shipping company has entered into contracts worth NKr 1 billion. All of the company’s PSVs are on contracts for the duration of 2012.

    "Despite the recent hike in the Havila Shipping share price, independent analysis suggests that Havila Shipping's shares are under-priced and that one can expect today’s share price of around NKr 50 to double," said the company. "The underlying values justify a share price of NKr 120."

    ”We expect 2012 to be a good year for Havila. My objective is to get the company back into a position where our shareholders will receive dividends,” Mr Sævik said.


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