Havila Shipping has returned to profit after sealing a refinancing agreement with banks and bondholders in dire offshore vessel markets.
The Norwegian shipowner pushed $420m of maturity and some repayments out to 2024 in June as the Saevik family maintained control through the issuing of a new convertible loan.
In the second quarter, Havila accounted for a NOK 2bn ($223m) gain due to the adjustment in the value of its borrowings.
This left net profit at NOK 1.46bn to 30 June, against a NOK 57.5m loss in the same period of 2019.
Six-month earnings hit NOK 1.22bn, while second-quarter revenue was up at NOK 201m, versus NOK 191m the year before.
The shipowner's book equity is now positive.
"The sharp fall in oil prices and the outbreak of the Covid-19 virus in the first quarter have reduced activity in the markets where the vessels operate," Havila said.
Havila takes impairment hit
The weaker demand for ships caused it to write down the value of most of the fleet, which knocked NOK 521m off the bottom line in the form of an impairment.
Havila has 23 vessels operating from Fosnavag, six of which are managed for other owners.
Three anchor-handling tug supply ships and two platform supply vessels were laid up at the end of the quarter.
Fleet utilisation was 88%, excluding the stacked ships.
Operating costs were NOK 160.4m, of which NOK 37m was a provision for a loss on trade receivables.
The company has bank deposits totalling NOK 239.1m, while the book value of the fleet is NOK 2.29bn. Long-term debt stands at NOK 2.18bn.
