Himalaya Shipping Ltd. · OSL:HSHP
Himalaya Shipping — Q1 2024 Earnings Presentation
17 slides from Himalaya Shipping's earnings presentation, May 23, 2024
Slide 1: Himalaya Shipping Ltd. Q1 2024 Results Presentation
1 Himalaya Shipping Ltd. Q1 2024 Results Presentation 23 May 2024
Slide 2: Disclaimer: Forward Looking Statements
2 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 w
Slide 3: Highlights
3 Highlights Q1 2024 Highlights: • Total operating revenues of $23.6 million, an average time charter equivalent earnings of approximately US$30,600/day, gross. • Net income of $2.5 million and adjusted EBITDA of $16.8 million for the quarter ended March 31, 2024. • Successful delivery and commencem
Slide 4: Key Financials Q1 2024 Income statement
4 Key Financials Q1 2024 Income statement Comments US$ millions, except per share data Q1 2024 Q4 2023 Variance Operating revenues 23.6 18.3 5.3 Vessel operating expenses (4.9) (3.6) (1.3) Voyage expenses and commission (0.4) (0.2) (0.2) General and administrative expenses (1.5) (1.1) (0.4) Deprecia
Slide 5: Key Financials Q1 2024 Balance Sheet Summary
5 Key Financials Q1 2024 Balance Sheet Summary Comments US$ millions March 31, 2024 December 31, 2023 Variance Cash and cash equivalents 25.7 25.6 0.1 Vessels and equipment 647.7 428.6 219.1 Newbuildings 67.1 132.6 (65.5) Total assets 748.6 599.2 149.4 Short-term and long-term debt 583.3 439.5 143.8
Slide 6: Fleet status report – May 2024 Chartering position
6 Fleet status report – May 2024 Chartering position
Slide 7: Baltic 5TC index rate: strongest start since 2010
7 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 J F M A M J J A S O N D 2015-23 max-min range 2015-23 average 2024 2023 Baltic 5TC index rate Strongest start to the year since 2010 YTD average rate $23k/day up 110% Y/Y
Slide 8: Global seaborne trade volume tonne-miles
8 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Iron ore Coal Grains Minor Bulk Strong demand Tonne-mile demand historically outpaced volume growth Solid demand YTD up 11% Source: Clarksons Shipping Intelligence Network (https://sin.cla
Slide 9: Capesize shipping – a growth market
9 Capesize shipping – a growth market Simandou Guinea iron ore project Potentially requires 170 capesize Source: Clarksons A long-haul trade 6 30 78 110 110 110 9 46 121 170 170 170 - 20 40 60 80 100 120 140 160 180 - 20 40 60 80 100 120 140 160 180 200 C ap es M ill io n to nn es Simfer WCS Capesiz
Slide 10: China – iron ore and coal imports gaining traction
10 China – iron ore and coal imports gaining traction China iron ore imports (MT/month) China coal imports (MT/month) 0.0 20.0 40.0 60.0 80.0 100.0 120.0 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 17 20 18 20 19 20 20 20 21 20 22 20 23 0.0 5.0 10.0 15.0 20.0 25.0 30.0
Slide 11: Limited supply of new ships
11 0 50 100 150 200 250 300 350 400 450 2000 2003 2006 2009 2012 2015 2018 2021 2024 Capesize fleet mDWT Capesize orderbook mDWT 0 50 100 150 200 250 300 350 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 Ac tiv e Sh ip ya rd s, T ot al No. Active Shipyards, Global 20,000+ dwt Limited supply of n
Slide 12: Significant replacement needs
12 Significant replacement needs Capesize+ fleet by delivery year in # ships Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) 60% of the fleet >20 years by 2033 Year # ships turning 20 years % of fleet >20 years Current 77 4% 2024 22 1% 2025 47 7% 2026 58 10% 2027 56 13%
Slide 13: Aging fleet means less productivity
13 Aging fleet means less productivity Speed trending down – inefficient ships slowing down most More capacity going into dock Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/), ABG Sundal Collier 1.0% 1.0% 1.4% 1.6% 1.5% 1.3% 1.2% 1.6% 1.8% 1.7% 0.0% 0.2% 0.4% 0.6% 0.8% 1
Slide 14: Himalaya have the right ships
14 Himalaya have the right ships 43% more CO2 efficient than a standard Capesize1 1. When running on LNG, basis 43 mT pr day fuel consumption and 3.2 CO2 pr mT for a 180k dwt 2014/15 built Capesize vessel and 28 mT pr day fuel consumption and 2.8 CO2 pr mT for a Himalaya newbuild. Source: Bloomberg
Slide 15: Fuel flexibility unlocking premium potential vs. conventional vessels
15 1. 2023 average of the 5 T/C Routes for Baltic Capesize Index of $16,363. 2. Scrubber benefit based on VLSFO – HSFO spread of $150 basis Singapore bunkering for average March 2024. 3. Premium achieved will depend on the terms Himalaya Shipping is able to achieve in contracts entered into, includi
Slide 16: Himalaya have the right financing
16 Value of ship (average purchase price) $m 71.6 Financing (average debt financing)1 " 63.1 Loan to purchase price % 88% Fixed bareboat day-rate2 $/day 16,567 Scrubber financing3 $/day 841 Estimated Opex " 6,400 Estimated SG&A " 732 Estimated cash break-even " 24,540 Estimated scrubber benefit when
Slide 17: Solid cash return potential
17 1. This information has been prepared for illustrative purposes only and does not represent the Company’s forecast. It is based, among other things, on industry data, internal data and estimates of the Company and is inherently subject to risk and uncertainties. Actual results may differ material