Norway Ship traffic

Havila Voyages bolsters finances and booking figures

1 min read

Apr 26, 2024 7:47:47 AM

Successful refinancing and a surge in occupancy bode well for the future of Norwegian shipping giant Havila Voyages

Competing head-to-head with Hurtigruten along the vital postal ship route connecting Bergen to Kirkenes, Havila Voyages has taken significant steps to enhance its financial standing. In the final quarter of 2023, the company successfully refinanced a secured bond worth €50 million through the issuance of a new unsecured bond.

Backing this move, Havila Holding, the parent company, issued a bond valued at €56 million to retire the existing credit facility and further extended a revolving credit line of approximately €17 million. These strategic maneuvers aim to provide Havila Voyages with the agility needed to navigate through the seasonal ebbs and flows of the fjord cruise business.

CEO Brent Martini underscores the significance of these actions in bolstering liquidity and fortifying the company's balance sheet. Since its inception in 2019, Havila Voyages has weathered a slew of challenges, including the tumult of the COVID-19 pandemic, shipyard insolvencies, sanctions impacting the Russian ship financier GTLK, construction setbacks due to seismic events in Turkey, and bureaucratic hurdles. The successful refinancing positions the company to trim costs and zero in on optimizing the operational efficiency of its fleet.

Encouragingly, Havila Voyages has witnessed an upward trajectory in booking numbers, with occupancy rates for the first quarter reaching 68 percent—a notable eight percent increase from the preceding quarter. Impressively, 63 percent of the available capacity for the current year has already been booked, and projections suggest an average occupancy rate of nearly 80 percent for the entire season. Martini expresses satisfaction with these results, particularly as Havila Voyages carves out its niche as a fresh contender on a postal ship route traditionally monopolized by Hurtigruten. He also highlights the uptick in repeat business and the burgeoning recognition across diverse markets.

Also rival Hurtigruten is charting a course toward stability and growth.