Norway’s Havila Kystruten delivered strong operational performance and positive EBITDA in the second quarter of this year, driven primarily by growth.
The company reported total revenues of NOK416 mill, with operational revenue up 22% year-on-year.
This growth was driven by an 18% increase in passenger nights and a 20% rise in average cabin rate (ACR). Occupancy improved to 74% (from 69%), and the cabin factor rose from 1.78 to 1.88.
The southbound (Kirkenes to Bergen) route showed particularly strong performance, due to targeted initiatives. On board sales increased by 12% year-on-year.
However, the 2Q25 results were partly impacted by ‘Havila Pollux’ being out of service for two round trips, due to maintenance/drydocking.
Operating expenses remained stable, compared to 1Q25 but increased 8% versus 2Q24, mainly due to higher activity and general cost inflation.
The largest revenue increase (17%) was in the cost of goods sold, directly linked to passenger growth.
Administrative costs also rose, due to the ongoing refinancing process and related advisory fees.
EBITDA reached NOK79 mill in 2Q25, up 35% from 2Q24 and significantly higher than NOK11 mill recorded in 1Q25.
Havila’s profit and balance sheet were significantly impacted by currency fluctuations, especially between the NOK and the euro.
In 2Q25, this resulted in a net foreign exchange loss of NOK141 mill, compared to a net gain of NOK129 mill in the previous quarter and NOK78 mill in the same period last year.
This affected the book equity, which stood at a negative NOK661 mill at the end of June, 2025. When accounting for the ships’ market value, the value-adjusted equity was a positive NOK3,132 mill.
Operational efficiency across the fleet was very high during the quarter, with 100% uptime.
At the same time, Havila Kystruten continued its focused sustainability efforts. For example, CO2 emissions were reduced by 38%, compared to the 2017 Coastal Route baseline.
The company also achieved its target of reducing food waste to less than 75 grams per guest per day, with an actual result of 57 grams in 2Q25.
Subsequently, in July, Havila amended its secured bond, extending maturity to January, 2027 and reducing the interest rate to 6.5% for the first five months.
The new terms enhance financial flexibility, with a revised principal of €326 mill. Havila said it was actively pursuing longer-term financing options to support growth and prepare for a forthcoming government tender.
Last month, the company renegotiated its LNG procurement agreement, introducing a dual-supplier model with one-third of volumes sourced from Northern Norway through 2030.
This new structure is expected to reduce annual fuel costs by over 10% from 4Q25 and improve supply flexibility.
Some 66% of the capacity for 2025 hadbeen booked, which corresponded to 88% of the annual target for cabin nights. Occupancy for the third quarter was currently at 80%, with more than one month remaining in the quarter.
The balance between the northbound and southbound routes continued to improve, which increased flexibility and enabled more sales closer to the departure date.
For 2026, 28% of capacity is already booked at significantly higher average prices (ACR) than for this year.
Early bookings provide a basis for expectations of continued top-line growth and improved EBITDA margins.
The market for travel to Norway continues to grow. The company’s strong sustainability profile provides a clear competitive advantage, supporting both price increases and higher occupancy, it claimed
With a more experienced organisation and ongoing improvements to digital sales channels, the focus remained on increasing direct bookings, which historically yield higher prices closer to departure.
The company said it will continue to actively balance occupancy and pricing to optimise margins throughout the year.
Efforts to increase on board sales are also ongoing, with targeted pricing strategies and product promotions aimed at increasing revenue from ancillary services and guest experiences.
A strategy of offering shorter trips is now established and under further development. During the summer season, sales of shorter voyages
increased by over 40%, confirming strong market interest.
This segment showed significant potential for optimised revenues and attracting a broader customer base with a lower average age – particularly among travellers with high willingness to pay.
Targeted marketing and commercial initiatives have been implemented to capitalise on this opportunity, the company concluded.
