Havila Shipping ASA Reports Q2 2024 Financial Performance
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Havila Shipping ASA: Overview of Q2 2024 Financial Results
Havila Shipping ASA has announced its financial results for the second quarter of 2024, showcasing both challenges and opportunities within its operations. The report indicates that freight revenues reached NOK 146.0 million, marking a decline of NOK 49.1 million compared to the same period in the previous year. However, there was a notable improvement of NOK 29.3 million over the preceding quarter.
Analysis of Revenue and Expenses
The average rate this quarter surpasses that of the previous quarter. Operating expenses amounted to NOK 74.5 million, reflecting a decrease compared to both Q2 2023 and Q1 2024, with reductions of NOK 33.0 million and NOK 6.7 million respectively. In terms of profitability, the operating income before depreciation was NOK 78.4 million in Q2 2024, dropping from NOK 98.4 million during the same quarter in the prior year.
Impairment Reversals and Debt Adjustments
The financial results also highlight a reversal of previously recorded impairment charges totaling NOK 154.0 million in the second quarter. Moreover, a substantial debt value adjustment was reported at NOK -193.3 million, a significant increase from NOK -67.0 million in Q2 2023. The profit before tax for the quarter amounted to NOK 4.0 million, a positive change from NOK -5.4 million noted in the prior year.
Fleet Operations and Utilization
As of the end of June 2024, Havila Shipping ASA operated a fleet of 14 vessels from Fosnavåg, with six of these being operated for external owners. The fleet utilization rate stood impressively at 97%, demonstrating robust operational efficiency amidst market fluctuations.
Debt Management Strategies
Looking at the company's debt situation, the debt owed to credit institutions is due to mature by 31 December 2024. Notably, the debt associated with conversion rights is classified as short-term debt as of June 30, 2024. The company has also completed an earnings test covering the period from July 1 to June 30, which gives lenders the option to increase interest-bearing debt by NOK 180.0 million at the conclusion of the year-end settlement.
Financial Performance for the First Half of 2024
In summarizing the results of the first half of 2024, total operating income was reported at NOK 279.0 million, a significant decrease from NOK 581.0 million in the same period of the previous year, which included NOK 209.2 million from asset sales. Total operating expenses for the first half reached NOK 155.8 million, down from NOK 222.8 million.
Net Earnings and Asset Value
In terms of net financial items, there was a reported value adjustment of debt totaling NOK -199.5 million, contributing to a profit before tax of NOK 4.2 million, a decrease from NOK 112.9 million in H1 2023. As of June 30, 2024, the book value of the fleet is estimated at NOK 1,186 million.
Current Financial Position
On June 30, 2024, Havila Shipping ASA reported total current assets of NOK 301.0 million, including bank deposits of NOK 166.0 million, with NOK 8.7 million noted as restricted cash. This reflects a decrease in total current assets compared to NOK 312.7. million on the same date last year.
Cash Flow Insights
Net cash flow from operations demonstrated a positive shift to NOK 139.8 million, compared to NOK -42.9 million during the previous period. Additionally, the company experienced cash flow from investing activities at NOK -10.7 million, alongside financing activities resulting in a net change of NOK -62.7 million.
Fleet Composition and Workforce
Havila Shipping ASA operates a diversified fleet of 14 vessels, including 10 Platform Supply Vessels (PSV) and three Subsea vessels, along with one RRV (bareboat). The employee count as of June 30, 2024, stood at 242 for crew members on vessels and 14 in administrative roles, underpinning the company's commitment to delivering quality service.
Company Contact Information
For further inquiries, please reach out to Chief Executive Officer Njål Sævik at +47 909 35 722 or Chief Financial Officer Arne Johan Dale at +47 909 87 706.
Frequently Asked Questions
What were the total freight revenues for Q2 2024?
Total freight revenues for the second quarter of 2024 were NOK 146.0 million.
How much did the operating expenses decrease compared to last year?
Operating expenses decreased by NOK 33.0 million compared to Q2 2023.
What was the fleet utilization rate for Q2 2024?
The fleet utilization rate stood at an impressive 97% for Q2 2024.
What is the book value of the fleet as of June 30, 2024?
The book value of the fleet is NOK 1,186 million.
How many employees does Havila Shipping ASA have?
Havila Shipping ASA employed 242 crew members on vessels and 14 in administration as of June 30, 2024.
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