Havila Kystruten AS: Second quarter 2025 accounts

Core Viewpoint - Havila Kystruten is experiencing strong operational performance and positive EBITDA in Q2 2025, primarily driven by revenue growth and increased passenger activity [1][3]. Financial Performance - The company reported total revenues of MNOK 416, with operational revenue increasing by 22% year-over-year [1]. - EBITDA reached MNOK 79, up 35% from Q2 2024 and significantly higher than MNOK 11 in Q1 2025 [3]. Operational Metrics - Passenger nights increased by 18%, and the average cabin rate (ACR) rose by 20% [2]. - Occupancy improved to 74% from 69%, and the cabin factor increased from 1.78 to 1.88 [2]. - Onboard sales grew by 12% year-over-year [2]. Cost Structure - Operating expenses increased by 8% compared to Q2 2024, mainly due to higher activity and general cost inflation [3]. - The largest increase in costs was a 17% rise in the cost of goods sold, linked to passenger growth [3]. Currency Impact - The company faced a net foreign exchange loss of MNOK 141 in Q2 2025, compared to a net gain of MNOK 129 in the previous quarter [4]. - Book equity stood at a negative MNOK 661 at the end of June 2025, but value-adjusted equity was positive at MNOK 3,132 when accounting for the ships' market value [4]. Sustainability Efforts - CO2 emissions were reduced by 38% compared to the 2017 Coastal Route baseline [5]. - The company achieved a target of reducing food waste to less than 75 grams per guest per day, with an actual result of 57 grams in Q2 [5]. Employee Overview - As of June 30, 2025, the company had a total of 560 permanent employees, including 498 seafarers and 62 in administration [6]. Strategic Developments - In July, the company amended its secured bond, extending maturity to January 2027 and reducing the interest rate to 6.5% for the first five months [7]. - In August, the company renegotiated its LNG procurement agreement, introducing a dual-supplier model expected to reduce annual fuel costs by over 10% from Q4 2025 [8]. Booking and Market Outlook - As of now, 66% of the capacity for 2025 has been booked, corresponding to 88% of the annual target for cabin nights [9]. - For 2026, 28% of capacity is already booked at significantly higher average prices than for 2025, indicating expectations of continued top-line growth [10]. Competitive Position - The market for travel to Norway is growing, and Havila Kystruten's modern, environmentally friendly fleet has received multiple international awards, providing a competitive advantage [11]. - The company aims to increase direct bookings, which historically yield higher prices closer to departure [12]. Revenue Enhancement Strategies - Efforts to increase onboard sales are ongoing, with targeted pricing strategies and product promotions [13]. - Sales of shorter voyages increased by over 40% during the summer season, indicating strong market interest and potential for optimized revenues [14].