Hamilton, Bermuda, March 6, 2024
Commercial update:
In February 2024, Himalaya Shipping Limited ("Himalaya," or the "Company")
achieved average time charter equivalent ("TCE") earnings of approximately
US$30,000 per day, gross[1]. The Company's six vessels trading on a fixed time
charter earned US$28,300 per day, gross, including average daily scrubber and
LNG benefits on five vessels of approximately US$3,100 per day. The Company's
three vessels trading on index-linked time charters earned approximately
US$33,300 per day, gross, including average daily scrubber and LNG benefits of
approximately US$2,000 per day.
The Baltic 5TC Capesize Index averaged US$21,557 during February 2024.
The Company has agreed to convert the index linked charter to a fixed charter
rate for Mount Etna from April 1, 2024 to December 31, 2024 at US$40,810 per day
plus scrubber premium according to the terms of its existing time charter
agreement. The average cash-break even is approximately US$24,600 per vessel per
day, meaning that Mount Etna should generate US$4.4 million of free cash-flow to
equity (assuming US$2,500 per day of scrubber benefit) for the remainder of the
year.
Currently, Himalaya has 8 vessels trading on index linked charters. Once all
vessels are delivered, which are expected to be by June 2024, Himalaya will have
11 vessels on index linked charters which can be converted to the prevailing FFA
market rates in similar fashion as Mount Etna. One ship is fixed on a fixed time
-charter rate.
Following the conversion of the time charter for Mount Etna, the Company will
have the following average rates fixed for vessels that were previously on index
linked charters:
March 2024: 5 vessels at an average of US$24,852 per day,
gross
April to June 2024: 3 vessels at an average of US$31,514 per day, gross
July to December 2024: 1 vessel at US$40,810 per day, gross
In addition, two vessels will continue to earn a fixed scrubber premium of
US$2,500 per day in March 2024. The remaining vessels will continue to earn
scrubber premium according to the terms of their respective existing time
charter agreements.
Cash distribution:
The Board has approved a cash distribution of US$0.03 per share for February
2024. The distribution will be made from the Company's Contributed Surplus
account which consists of previously paid in share premium transferred from the
Company's Share Premium account.
Note to shareholders registered in Euronext VPS, the Norwegian Central Security
Depository:
Due to implementation of the Central Securities Depository Regulation (CSDR) in
Norway, please note the information regarding the payment date for the shares
registered in Euronext VPS below.
Key information:
Distribution amount: US$0.03 per share
Declared currency: US$. Distributions payable to shares registered with Euronext
VPS will be paid out in NOK with fixing date on April 5, 2024.
Date of approval: March 5, 2024
Last day including right: March 15, 2024
Ex-date: March 18, 2024
Record date: March 19, 2024
Payment date: On or about April 5, 2024.
Due to the implementation of CSDR in Norway, distributions payable on shares
registered with Euronext VPS is expected to be distributed to Euronext VPS
shareholders on or about April 10, 2024.
This information is published in accordance with the requirements of the
Continuing Obligations.
For further queries, please contact:
Herman Billung, Contracted CEO
Telephone +47918 31590
About Himalaya Shipping Ltd.:
Himalaya Shipping Ltd. is an independent bulk carrier company, incorporated in
Bermuda. Himalaya Shipping has nine vessels in operation and three Newcastlemax
dry bulk vessels under construction at New Times Shipyard in China. The
remaining newbuildings are expected to be delivered by Q2 2024.
Forward Looking Statements:
This announcement includes forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements include
statements relating to the expected delivery date of our remaining newbuildings
under construction and other non-historical statements. These forward-looking
statements are based on current expectations or beliefs, and are subject to
uncertainty and changes in circumstances. These forward-looking statements are
subject to a number of risks and uncertainties, which could cause the actual
results to differ materially from those indicated in such forward-looking
statements. Such risks include risks relating to the delivery of our remaining
newbuild vessels including the timing thereof and other risks, including those
set forth under the heading "Risk Factors" in our Registration Statement on Form
F-1/A filed with the U.S. Securities and Exchange Commission. Except as
required by law, we undertake no obligation to update these forward-looking
statements, whether as a result of new information, future events, or otherwise.
Appendix A - Reconciliation of Non-U.S. GAAP Measures
Time Charter Equivalent ('TCE") Earnings, gross
The following table sets forth a reconciliation of time charter revenues to the
average TCE earnings, gross (unaudited) for the period presented:
(In millions of U.S. For the one-month period ended February 29, 2024
dollars except per day
data)
Time charter revenues $ 7.5
Address commission $ 0.3
Operating revenues, $ 7.8
gross
Fleet operational days 261
Average TCE Earnings, $ 30,000
gross
[1] Average TCE earnings is a non-U.S. GAAP measure of the average daily revenue
performance of a vessel. Average TCE earnings, gross, when used by the Company,
means time charter revenues and voyage charter revenues adding back address
commissions, and divided by operational days. Our management believes average
TCE earnings can provide additional meaningful information for investors to
analyze our fleets' daily income performance. Our calculation of such figure
may not be comparable to that reported by other companies. Please see Appendix A
for reconciliation of this measure to the nearest U.S. GAAP measure.