Positive Financial Overview for Havila Kystruten AS
Havila Kystruten continues to show promising growth, achieving its first positive operating result (EBITDA) in the second quarter of 2024.
Revenue Growth and Performance Metrics
In the second quarter of 2024, the company reported revenues of MNOK 369, a significant rise from MNOK 172 during the same period last year. For the first half of the year, revenues reached MNOK 662, up from MNOK 289 the previous year. When adjusted for the increase in the number of vessels, this translates to a revenue growth of 7% for the second quarter and 15% for the first half of the year. It's worth noting that Havila Pollux was out of service for two round trips due to technical difficulties, but the revenue loss from this was largely mitigated by the company’s loss of hire insurance.
This revenue growth is attributed to higher occupancy rates, achieving 69% compared to 62% last year, and an increase in average cabin revenue (pre-sales), which rose to NOK 5,200 from NOK 4,500 in the second quarter of 2023. Similar trends were observed in the first half of the year, with contract revenues adjusted for CPI relative to the previous year.
Operating Expenses and EBITDA Performance
Operating expenses for the second quarter totaled MNOK 311, primarily related to the regular operating costs of four vessels. While some expenses fluctuate with passenger volume, the major costs are not significantly affected by occupancy levels.
The positive EBITDA for the second quarter was recorded at MNOK 58, a notable improvement from the negative MNOK 15 in the same period last year. For the first half of the year, EBITDA was MNOK 41, compared to a negative MNOK 111 last year.
Impact of Exchange Rates and Equity Positioning
Fluctuations in exchange rates, particularly the Norwegian krone against the euro, have significantly impacted both the results and the balance sheet, resulting in unrealized foreign exchange losses related to ship financing in euros. These unrealized losses have also affected book equity. However, after adjusting for broker valuations of the vessels and considering the foreign currency-focused second-hand market, the value-adjusted equity remains robustly positive.
In the second quarter, the fleet achieved an operational uptime of 94%, and CO2 emissions were reduced by 36% compared to the reference figures from the Coastal Route in 2017. The company also successfully maintained its target of less than 75 grams of food waste per guest night, achieving a result of 70 grams in the second quarter.
Outlook for 2024
The company is optimistic about its future, expecting continued positive growth. Feedback from passengers and the coastal community has been overwhelmingly positive. The expectation is that the modern, eco-friendly vessels, combined with a stronger brand, will drive increased demand moving forward.
Strategically, the focus on offering shorter trips is opening up new commercial opportunities aimed at travelers willing to pay a premium, which the company is actively pursuing. There is considerable potential for increased occupancy and passenger numbers along the southbound route from Kirkenes to Bergen, which has historically seen lower occupancy rates compared to the northbound route.
The company's strategy for further revenue growth through increased pricing is also noteworthy. Prices achieved thus far in 2024 have been influenced by ticket sales from previous years. Rebookings due to cancellations have been processed at original prices, alongside promotional campaigns aimed at larger groups to enhance brand visibility and establish a stable occupancy base during the startup phase. Notably, digital sales through the company’s own channels close to departure dates have shown significantly higher prices, and direct bookings have been steadily increasing.
Second Quarter 2024 Results Summary
- Revenue totaled MNOK 369, which includes MNOK 97 from the Ministry of Transport.
- Total operating costs included MNOK 42 in cost of goods sold, MNOK 103 in salary costs, and MNOK 166 in other operating expenditures.
- Operating profit before depreciation was MNOK 58.
- Depreciation costs amounted to MNOK 62.
- Net financial items were reported at MNOK -96.
- Profit before tax was recorded at MNOK -99.
Balance Sheet and Liquidity as of Mid-Year 2024
- Total fixed assets reached MNOK 4,260, with ships accounting for MNOK 4,200, and the average broker value for the ships estimated at 704 million euros.
- Current assets totaled MNOK 497, with cash and cash equivalents making up MNOK 280, including MNOK 5 in restricted funds for tax deductions.
- The carrying amount of long-term debt was MNOK 4,083, with financial institution debt totaling MNOK 2,982.
- Book equity was MNOK 8, while value-adjusted equity based on shipbrokers' valuations is significantly higher.
- Total current liabilities amounted to MNOK 667.
- Net cash flow from operating activities was MNOK 28, with other accrued items mainly related to advance payments for upcoming voyages.
- Net cash flow from investing activities was MNOK -13.
- Net cash flow from financing activities totaled MNOK 74.
Employee Overview
As of the end of the first quarter, Havila Kystruten employed a total of 533 permanent staff, including 482 in seafaring roles and 51 in administrative positions.
Contacts
Chief Executive Officer: Bent Martini, +47 905 99 650
Chief Financial Officer: Aleksander Røynesdal, +47 413 18 114
Frequently Asked Questions
What are the key highlights of Havila Kystruten's Q2 2024 report?
The report highlights strong revenue growth, reaching MNOK 369 in Q2 2024, along with a positive EBITDA of MNOK 58.
How did the company perform compared to the previous year?
Havila Kystruten experienced substantial growth compared to last year, with revenues increasing from MNOK 172 to MNOK 369 in Q2.
What factors contributed to the revenue increase?
The revenue increase was driven by higher occupancy rates and increased average revenue per cabin, along with effective insurance coverage during vessel downtime.
What is the company's outlook for the rest of 2024?
Havila Kystruten is optimistic about continued growth, focusing on boosting demand through modern vessels and shorter trip offerings.
How many employees does Havila Kystruten have?
According to the latest report, Havila Kystruten employs 533 permanent staff, with 482 working as seafarers.
