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Havila Shipping's downturn continued in second quarter

Norway's Havila Shipping continues to struggle in the dire market for offshore vessels in the North Sea. The company has reactivated vessels and expects improvement in 2019.

Photo: Havila

Family-owned Havila Shipping is still scrambling in the North Sea market for offshore vessels.

The carrier lost NOK 133 million (USD 15.9 million) in the second quarter, a worsening from the NOK 105 million deficit in the same quarter of 2017, shows a brief press release concerning the report.

While the bottom line dived, Havila's revenue increased slightly to NOK 146 million against NOK 139 million in the second quarter of last year.

The higher revenue is attributed first and foremost to the fact that two vessels were reactivated during the period and again contributed to the business, while earnings through 2017 were unusually high as several vessels were divested of and created one-off earnings.

Despite the large deficit in a weak market, Havila's management, headed by CEO Njål Sævik, expects that the company's finances are strong enough for continued operations.

"These calculations are based on a continued weak market in 2017 and 2018 with an improvement in 2019 and thereafter," writes Havila in the report.

Havila Shipping operates a fleet of 23 vessels divided between 14 PSV vessels, five AHTS vessels, 3 subsea vessels and an RRV (rescue and recovery vessel.)

English Edit: Lena Rutkowski

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