Havila Shipping ASA - First quarter reporting

Good Result - despite week market

Summary
*             Havila Shipping ASA achieved a result before tax of NOK
  164.4m in Q1 2009, compared with NOK 314.8m in Q1 last year,
  whereof NOK 311.8m was profit from sale of assets.
*             Net financial items include unrealized agio on currency
  positions and forward rate contracts of NOK 101.1m for 1st
   quarter.
*             Total income in Q1 2009 ended at NOK 212.2m, compared
  to NOK 453.1m in Q1 2008, whereof NOK 311.8m was profit from sale
  of assets.
*             The Group had 16 vessels in operation per 31/03/2009.
  This includes Havila Mars and Havila Mercury that was sold and
  leased back in Q1 2008, two vessels that are operated by the joint
  venture company Posh Havila Pte Ltd in Singapore and one vessel
  that are owned by HavShip DA. One vessel, Havila Phoenix, was
  delivered in Q1 2009 and are operating on a contract in Mexico.


The spot market for  offshore service vessels  was weak during  first
quarter with a lot of vessels  offhire resulting in low dayrates  for
the vessels working.  The company had one PSV and one AHTS vessel  in
the spot  marked  during  the  quarter.  The  PSV  vessel  worked  at
acceptable dayrates up to Marsh when the vessel left the market for 3
weeks docking  and  10 years  classification.   The AHTS  vessel  was
offhire 23 days during the quarter and some of the accepted  dayrates
was at a level close the operating expenses for the vessel.

The company's financial figures and comparative figures are  prepared
in accordance with IFRS regulations.

Q1 2009 results
Total income for Q1 2009 amounted to NOK 212.2m (NOK 453.1m  included
profit from sale of assets of NOK 311.8m).

Total operating expenses of NOK 100.8m (NOK 77.9m) includes leaseback
expenses for Havila Mercury/Mars for Q1 in 2009 and 2008 of NOK 26.8m
and NOK 23.2 mill, respectively.

The operating profit after depreciation (EBIT) in the period was  NOK
83.3m (NOK 352.5 m).

Net financial income in the period amounts to NOK 78.3m (NOK -37.7m).
Net financial items are positive in the period due to unrealised agio
on loans in foreign exchange and decreased foreign exchange rates for
currencies where future income are fixed by forward agreements.

The profit before tax for the period was NOK 164.4m (NOK 314.8m).


Balance and liquidity per 31/03/09
Based on the estimates of several independent brokers dated 31/12/08,
the fleet had a market value of NOK 4 230m at the end of March.  This
is equivalent to a value per share of NOK 159. The book value of  the
fleet excluding  new buildings  is NOK  2 960m.  Capitalized  advance
payments on new buildings total NOK 857.4m and NOK 923.6m on 31/03/09
and 31/12/08, respectively.

Total current assets amount to  NOK 567.3m on 31/03/09, whereof  bank
deposits are NOK 267.6m. On 31/12/08, total current assets amount  to
NOK 1  060.8m, whereof  bank deposits  was NOK  698.2m (of  this  NOK
391.5m restricted). Net  cash flow from  operations per 31/03/09  was
NOK 46.3m (NOK 2.7m). There was  a negative cash flow from  investing
activities in  Q1  2009 of  NOK  667.6m. This  primarily  relates  to
delivery of vessels. Raising and repayment of loans constitutes a net
change from financing activities of NOK 114.7m (NOK 194.3m).

Total long-term interest-bearing debt at 31/03/2009 is NOK  2 560.2m.
This includes bond loans of NOK 450.0m. Of this, 27% is loan in  USD,
while the remainder  is nominated  in NOK. Next  year's repayment  of
debt is classified as current liability in conformity with IFRS,  and
amounts to NOK 158.1m.  Non-current liabilities relating to  deferred
tax and environmental liability in connection with the transition  to
the new shipping tax regime, is recognised at NOK 41.6m. "Environment
fund" of NOK 25.7 mill is included in equity as of 31 March 2009.