Havila Kystruten Narrows Losses but Faces Cost Headwinds Ahead
Havila Kystruten reported improved Q2 results on Friday, August 29, 2025, showing narrower losses and rising passenger volumes, but management warned that fuel and electrification costs and outstanding debt will keep margins under pressure. The presentation and subsequent Q&A signaled a cautious outlook, highlighting reliance on government support and a multi-year transition to lower emissions as critical to long-term viability.
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Havila Kystruten AS said Friday that second-quarter revenue rose sharply and losses moderated, yet the coastal ferry operator cautioned investors that higher energy costs and heavy capital spending for electrification will restrain profitability into 2026. Management delivered the results in a presentation on August 29, followed by a detailed Q&A session with analysts and investors.
The company reported Q2 2025 revenue of NOK 890 million, an 18 percent increase year-over-year, driven by a 22 percent jump in passenger trips to roughly 310,000. Adjusted EBITDA loss narrowed to NOK 120 million from a NOK 220 million loss a year earlier, while the net loss for the quarter came in at NOK 150 million, an improvement from NOK 300 million in Q2 2024. "We are making meaningful operational progress and returning customers to the coastal service," management said in the prepared remarks, emphasizing higher occupancy rates and improved schedule reliability.
Despite the operational momentum, executives highlighted two immediate pressures. Fuel and energy costs rose 12 percent versus the prior quarter, as higher maritime fuel prices and rising electricity tariffs increased operating expenses. At the same time, Havila is accelerating a program of battery retrofits and shore-power installations, raising full-year capex guidance to NOK 450 million. "The investments are necessary to meet Norway's green shipping targets, but they tighten near-term liquidity," the company said during the Q&A.
Havila reported net interest-bearing debt of NOK 2.8 billion at quarter-end and said it has liquidity extending into the next 12 months under existing credit lines. Management reiterated a target to reach adjusted EBITDA break-even by late 2026, contingent on steady demand, controlled fuel costs, and continued state support. The presentation underscored the company's dependence on public subsidies and investment grants linked to Norway’s electrification policy, noting that policy clarity from Oslo is "decisive" for fleet upgrades.
The market response was muted. Shares in the Oslo market slipped about 3 percent in intraday trading on the earnings release as investors weighed the improved top-line performance against the heavier capex load and debt profile. Analysts at a major Nordic brokerage described the results as "operationally encouraging but financially constrained," citing the company’s sensitivity to carbon pricing and electricity markets now tied into the EU ETS framework for maritime operations.
Longer-term, Havila’s story mirrors broader trends in maritime transport: rising demand for greener coastal travel juxtaposed with the high upfront costs of decarbonization. Norway’s incentives and tighter emissions rules are reshaping capital allocation across the sector, benefitting operators that can secure grants and manage balance-sheet risk. For Havila, the next two quarters will be pivotal: sustaining passenger growth while navigating fuel volatility and delivering on battery and shore-power projects that could determine whether improved operations translate into durable profitability.