Himalaya Shipping Ltd. · OSL:HSHP
Himalaya Shipping — Investor Presentation (March 2023)
23 slides from Himalaya Shipping's investor presentation, March 2023
Slide 1: Himalaya Shipping - Investor presentation
Himalaya Shipping - Investor presentation March 2023 1
Slide 2: Disclaimer and Important Information
Disclaimer and Important Information THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES REFERRED TO HEREIN IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO
Slide 3: Investment highlights
Investment highlights 12x modern dual-fuel Newcastlemaxes – 210k DWT capacity for delivery 1 2023/2024 Proven earnings premium of 40-42%2 versus conventional vessels offering 2 attractive cash flow yield where free cash flow above estimated cash breakeven is to be paid out to shareholders 3 Ships re
Slide 4: I. Introduction to Himalaya Shipping
I. Introduction to Himalaya Shipping II. Market conditions III. Earnings & yield IV.Appendix 4
Slide 5: Himalaya Shipping at a glance – green with premium earnings potential
Himalaya Shipping at a glance – green with premium earnings potential Green newbuild Currently listed on 7 / 12 vessels chartered- Attractive cash flow yield Strong shareholder programme at New Euronext Expand with out on fixed or index- with intention to support and Times Shipyard newbuild financin
Slide 6: Strong sponsor – In-depth industry knowledge and capital markets track record
Strong sponsor – In-depth industry knowledge and capital markets track record Magni Partners – Sponsor1 Magni Partners, Company founded by sole shareholder Tor Olav Trøim, is invested in the Magni board member Bjorn Isaksen – member - Tor Olav Trøim – COB3 Tor Olav Trøim – COB3 following relevant gr
Slide 7: Attractive fleet with delivery from Mar-23 to Aug-24
Attractive fleet with delivery from Mar-23 to Aug-24 43% more CO2 efficient than a standard Capesize4 Fleet overview CO2 pr day (mT) Price1,2 Estimated Ship Yard Size (DWTk) Ship type ($m) delivery date3 Mount Norefjell 70.2 NTS 210 DF Newcastlemax Mar-23 (43%) Mount Ita 70.2 NTS 210 DF Newcastlemax
Slide 8: II. Market conditions
I. Introduction to Himalaya Shipping II. Market conditions III. Earnings & yield IV.Appendix 8
Slide 9: Favourable supply dynamics (1/4) - Capesize orderbook at record low levels
Favourable supply dynamics (1/4) - Capesize orderbook at record low levels Capesize orderbook to fleet ratio at 6.2% 140% 450 400 120% 118,4% 350 100% Capesize orderbook to fleet % 300 Capesize fleet DWTm 80% 250 60% 200 Record low Capesize orderbook providing new supply visibility 150 40% 100 20% 5
Slide 10: Favourable supply dynamics (2/4) – Shipyard capacity is limited
Favourable supply dynamics (2/4) – Shipyard capacity is limited Limited yard capacity available for Capesize vessels Number of active shipyards at all time low Current yard lead-time of 3.6 years – highest since 2009 300 6 Limited Capesize yard slots available with 350 delivery before 2025/2026, pro
Slide 11: Favourable supply dynamics (3/4) – Regulations to impact fleet efficiency
Favourable supply dynamics (3/4) – Regulations to impact fleet efficiency Slow steaming seen as a likely consequence of EEXI & CII Reduced sailing speed decreases the effective fleet supply It may be challenging for older IMO EEXI vessels to increase speed in a & CII 11,9 strengthening market due to
Slide 12: Favourable supply dynamics (4/4) - Capesize fleet is getting older
Favourable supply dynamics (4/4) - Capesize fleet is getting older 67% of Capesize vessels likely facing non-compliance by 2030 due to EEXI & CII Older vessels (non-eco) at risk Cum. scrapping Vessels built between Vessels built post-2016 # vessels Vessels built before 20093 candidates 2009 and 2015
Slide 13: Favourable demand dynamics – Dry bulk a multi-decade growth story
Favourable demand dynamics – Dry bulk a multi-decade growth story Tonne-mile demand historically outpaced volume growth Himalaya vessels expected to sail greater distances Global seaborne trade volume (billion tonne-miles) 35 000 3.8% Tonnes (CAGR 2000 – 2022) 30 000 4.0% Tonne-mile (CAGR 2000 – 202
Slide 14: Resilient market supported by favourable supply & demand outlook
Resilient market supported by favourable supply & demand outlook Resilient market despite challenges Larger vessels could benefit from attractive demand drivers Capesize index day rates dropped from ~$33k/day The Chinese re-opening story average in 2021 to $16k/day average in 2022 because of… • The
Slide 15: III. Earnings & yield
I. Introduction to Himalaya Shipping II. Market conditions III.Earnings & yield IV.Appendix 15
Slide 16: Size, fuel consumption and fuel flexibility key attractions of Himalaya fleet
Size, fuel consumption and fuel flexibility key attractions of Himalaya fleet Fuel flexibility unlocking premium potential vs. conventional vessels $/day 28 024 4 858 4 212 16 200 2 754 2022 average 17% larger cargo intake 26% lower laden fuel ~30% scrubber earnings ~70% potential when 3 Capesize In
Slide 17: Higher fuel spreads favour fuel-efficient vessels
Higher fuel spreads favour fuel-efficient vessels LNG expected to be at a discount to VLSFO by 2026 Savings3 driven by fuel spreads ($k per day/per vessel) $/tonne, calorific value adjusted1,2 LNG savings Scrubber savings 3 000 LNG @ HSFO preferred fuel LNG @ discount Every $50 per tonne increase in
Slide 18: Estimated Capesize cash break-even equivalent of ~$13,900/day
Estimated Capesize cash break-even equivalent of ~$13,900/day Estimated cash break-even of a fully delivered basis Last upcycle Capesize rates vs. est. equivalent cash break-even 1 year Capesize timecharter rates 2003 – 2010, ($/day) Value of ship (average purchase price) $m 71.6 Oct 2008 Financing
Slide 19: IV. Appendix
I. Introduction to Himalaya Shipping II. Market conditions III. Earnings & yield IV. Appendix 19
Slide 20: Experienced management and board
Experienced management and board Management Board members Herman Billung Georgina Sousa Contracted CEO Chairwoman • Assumed the role as CEO of 2020 Bulkers February 1, 2022 and subsequently was • Served as a Director on our Board of Directors since June 2, 2021 contracted as the CEO of Himalaya Ship
Slide 21: Overview of legal structure
Overview of legal structure Himalaya Shipping Ltd. Bermuda 100% ownership in all entities below MOUNT NOREFJELL INC. MOUNT BANDEIRA INC. MOUNT ITA INC. MOUNT HUA INC. (fka Lhotse Inc.) (fka Yangra Inc.) (fka Makalu Inc.) (fka Dablam Inc.) MOUNT ETNA INC. MOUNT ELBRUS INC. MOUNT BLANC INC. MOUNT DENA
Slide 22: Financials
Financials Financial statement as of 31.12.2022 (In USDm, unless stated otherwise) Year ended December 31, 2022 Period from March 17 to December 31,2021 Operating expenses General and administrative expenses (2.0) (1.0) Total operating expenses (2.0) (1.0) Operating loss (2.0) (1.0) Interest expense
Slide 23: Balance sheet
Balance sheet Balance sheet statement as of 31.12.2022 (In USDm, unless stated otherwise) December 31, 2022 December 31, 2021 (In USDm, unless stated otherwise) December 31, 2022 December 31, 2021 Liabilities and shareholders equity Assets Current liabilities Current portion of long-term debt 7.0 -
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