Himalaya Shipping Ltd. · OSL:HSHP
Himalaya Shipping — Q4 2023 Earnings Presentation
15 slides from Himalaya Shipping's earnings presentation, Feb 15, 2024
Slide 1: Himalaya Shipping Ltd. - Q4 2023 Results Presentation
Himalaya Shipping Ltd. - Q4 2023 Results Presentation 15 February 2024 1
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements This results presentation and any related discussions contain forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not reflect historical facts and may be identified by wor
Slide 3: Highlights
Highlights Q4 2023 Highlights: • All delivered vessels generated total operating revenues of $18.3 million, an average time charter equivalent earnings of approximately US$34,400/day, gross. • Net income of $4.5 million and EBITDA of $13.4 million for the quarter ended December 31, 2023. • Secured t
Slide 4: Key Financials Q4 2023
Key Financials Q4 2023 Income statement Comments US$ millions, except per share data Q4 2023 Q3 2023 Variance • Increase in operating revenues of $8.1 million in Q4 2023, due to 6 vessels operating for the full quarter and increase in average Operating revenues 18.3 10.2 8.1 time charter equivalent
Slide 5: Key Financials Q4 2023
Key Financials Q4 2023 Balance Sheet Summary Comments • Net cash generated by operating activities in Q4 2023 of $8.4 December 31, September 30, million. US$ millions Variance 2023 2023 • Net cash used in investing activities in Q4 2023 was $28.9 million, primarily consisting of $20.7 million used f
Slide 6: Contract overview
Contract overview HIMALAYA HIMALAYA Himalaya Shipping SHIPPING Fleet Status Report | exit | Und at a 3 a4 at @ a3 | a4 a a 3 as Dual Fuel Newcastlemax 2027 at a2 a3 Mount Norefjell 2023 DF Newcastlemax Mount ka 2023 DF Newcastlemax Mount Etna 2023 DF Newcastlemax Mount Blanc 2023 DF Newcasttemax Mou
Slide 7: Strong demand
Strong demand Capesize tonne-mile demand growth of 4% in 2023 Capesize tonne-mile demand growth of 10.8% in January 2024 Capesize Panamax Supramax Handysize Capesize Panamax Supramax Handysize Source: Arrow Shipbroker 7
Slide 8: Strong demand outlook
Strong demand outlook Significant iron ore production growth in Incremental iron ore production Required ships if transported to China1 the Atlantic basin (MT/year) from these 2 projects 100 160 145 90 140 80 35 120 70 100 96 60 50 80 40 60 30 60 40 20 20 10 0 0 MT iron ore Required ships Current Or
Slide 9: Strongest start to the year since 2010
Strongest start to the year since 2010 Baltic 5TC index rate YTD average rate $20k/day up 167% Y/Y 9
Slide 10: The right timing: low orderbook
The right timing 25 year low orderbook Significant reduction in yard capacity 450 350 400 (59%) 350 300 300 250 Active Shipyards, Total 250 200 200 150 150 Orderbook 100 5.7% of fleet 100 50 50 0 2000 2003 2006 2009 2012 2015 2018 2021 0 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 Capesize fle
Slide 11: Significant replacement needs
Significant replacement needs Capesize+ fleet by delivery year in # ships 60% of the fleet >20 years by 2033 350 Vessels built between Vessels built post-2016 # ships turning % of fleet Vessels built before 20093 Year 2009 and 20153 unaffected by 20303 20 years >20 years 300 Current 60 3% 306 ships
Slide 12: The right ships
The right ships 43% more CO2 efficient than a standard Capesize1 Dual fuel gives flexibility CO2 pr day (mT) (43%) 138 Himalaya have fuel flexibility – can run on LNG, HFO or VLSFO CO2 78 Current LNG prices (12 Feb 2024) quoted by Affinity Shipbrokers as the cheapest fuel option LNG bunkering 180k d
Slide 13: The right ships
The right ships Fuel flexibility unlocking premium potential vs. conventional vessels $/day 28 024 4 858 4 212 16 200 2 754 2022 average 17% larger cargo intake 26% lower laden fuel ~30% scrubber earnings ~70% potential3 when Capesize Index1 consumption premium potential2 reflecting theoretical size
Slide 14: The right financing
The right financing Estimated cash break-even of a fully delivered basis Last upcycle Capesize rates vs. est. equivalent cash break-even 1 year Capesize timecharter rates 2003 – 2010, ($/day) Value of ship (average purchase price) $m 71.6 Oct 2008 Financing (average debt financing)1 " 63.1 200,000 1
Slide 15: Illustrative free cash-flow per share
Illustrative free cash-flow per share1 $/FCF per share2 based on BCI5 Index rates $/share FCF per year 5.7 4.9 4.2 3.5 2.8 2.1 1.4 0.7 0.0 15,100 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 BCI5 Index rate 1) This information has been prepared for illustrative purposes only and does not