Himalaya Shipping Ltd. (HSHP) - Results for the third quarter of 2023

Hamilton, Bermuda, November 15, 2023

Himalaya Shipping Limited (“Himalaya”, “Himalaya Shipping” or the “Company”) announces preliminary unaudited results for the quarter ended September 30, 2023.

Highlights for the quarter ended September 30, 2023

• Successful delivery and commencement of operations of two additional 210,000 dwt Newcastlemax dual fuel newbuildings ordered from New Times Shipyard (“NTS”), resulting in a total delivered fleet of six vessels, with six additional vessels to be delivered in 2024.
• Total operating revenues of $10.2 million, which is an average time charter equivalent (“TCE”) earnings of approximately $22,300 per day, gross. 
• EBITDA of $6.1 million for the quarter ended September 30, 2023.
• Execution of financing on the two delivered vessels by sale leaseback facilities provided by CCB Financial Leasing Company Limited (“CCBFL”) totaling $98.6 million.
• Settlement of installment payments on three of our newbuilding vessels totaling $20.7 million financed by pre-delivery financing with CCBFL.
• LNG bunkering on three vessels since July 2023.

Subsequent events

• Secured time charter agreements for the three remaining uncontracted vessels for 24 months' time charters with an evergreen structure to commence in the first half of 2024. These vessels will earn an index-linked rate, reflecting a significant premium to the Baltic 5TC index (BCI). With this, the Company has secured employment of the entire fleet.
• Extended time charters for six of our vessels by an additional year, until the end of 2026.

Contracted CEO, Herman Billung commented:

“We are very pleased with the reception of our fleet among major commodity, trading and logistics companies. The entire fleet has now been fixed out to four different counterparties, one vessel on fixed time charter and the remaining eleven vessels fixed on index linked charters which will earn on average a premium of 42.25% to the Baltic 5TC index. We are of the opinion that the index linked charters represent one of the highest premiums in our industry. Further, we strongly believe that the recent execution of the extension of time charters on six of our vessels until the end of 2026, is evidence of the strong quality of our fleet and our strong track record for the operations of our ships thus far.

We expect that our simple structure, with index linked charters earning a significant premium, low G&A costs and financing with seven-year fixed bareboat rates, positions us well to deliver solid returns to our shareholders.

We have no intention to invest in new capacity, which will enable us to return most of the cash generated after debt service to our shareholders.”