Himalaya Shipping Ltd. (HSHP) Announces its Preliminary Results for the Three and Six Months Ended June 30, 2024
Hamilton, Bermuda, August 16, 2024
Himalaya Shipping Ltd. (“Himalaya,” “Himalaya Shipping” or the “Company”) announces preliminary unaudited results for the three and six months ended June 30, 2024.
Highlights for the Second Quarter of 2024
- Successful delivery and commencement of operations of the remaining three 210,000 dwt Newcastlemax dual fuel newbuildings in the second quarter of 2024, ordered from New Times Shipyard, resulting in a total delivered fleet of 12 vessels.
- Total operating revenues of $31.2 million, which is an average time charter equivalent (“TCE”) earnings of approximately $34,600 per day, gross. Average Baltic 5TC Capesize Index was $23,482 per day.
- Net income of $6.9 million and Adjusted EBITDA of $24.0 million for the second quarter of 2024.
- Conversion of index linked charters on Mount Blanc and Mount Neblina to fixed charters from May 1, 2024 to June 30, 2024 at an average rate of $37,275 per day. The vessels will continue to earn scrubber premium according to the terms of their existing time charter agreements.
- Draw down of financing on the three delivered vessels by sale leaseback facilities provided by CCB Financial Leasing Company Limited (“CCBFL”), totaling $147.6 million.
- Declaration and payment of cash distributions for March and April 2024 of $0.03 and $0.04 per common share, respectively.
- Declaration of cash distributions for May 2024 of $0.04 per common share, which was paid in July 2024.
Subsequent events
- Conversion of index linked charters on Mount Blanc and Mount Neblina to fixed charters from July 1, 2024 to July 31, 2024 at an average of $35,000 per day. The vessels will continue to earn scrubber premium according to the terms of their existing time charter agreements.
- Declaration of cash distributions for June and July 2024 of $0.05 and $0.06 per common share, respectively.
Contracted CEO, Herman Billung commented:
“All of our 12 ships have been successfully delivered from New Times Shipyard and are now generating revenue. We are pleased with the performance of the fleet and the relationship we are experiencing with our four reputable counterparties. Out of our 12 vessels, 10 are exposed to the spot market earning on average a premium of 42.25% to the Baltic 5TC (BCI) index.
In the first half of 2024, the Baltic 5TC Capesize index averaged $23,482 per day compared to $12,249 in the same period last year. This represents the second strongest first half we have witnessed in a decade, only behind 2021, and reflects a well-balanced market and a solid fundamental for an upward cycle that potentially could last for years to come.
The Company has continued its strategy with paying monthly distributions to its shareholders. With limited need for capital investments, we expect that a sizeable amount of free cash-flow can be paid to the shareholders. On August 8, 2024, we declared cash distributions of $0.06 per share, and if our positive market outlook materializes there may be an upside on these payments.”
Questions should be directed to:
Herman Billung: Contracted CEO, +47918 31590