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
1 Himalaya Shipping Ltd. - Q4 2023 Results Presentation 15 February 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 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 $13.4 million for the quarter ended December 31, 2023. • Secured
Slide 4: Key Financials Q4 2023 Income statement
4 Key Financials Q4 2023 Income statement Comments VarianceQ3 2023Q4 2023US$ millions, except per share data 8.110.218.3 Operating revenues (0.6)(3.0)(3.6)Vessel operating expenses -(0.2)(0.2) Voyage expenses and commission (0.2)(0.9)(1.1) General and administrative expenses (0.4)(3.2)(3.6) Deprecia
Slide 5: Key Financials Q4 2023 Balance Sheet Summary
5 Key Financials Q4 2023 Balance Sheet Summary Comments VarianceSeptember 30, 2023 December 31, 2023US$ millions 12.812.825.6Cash and cash equivalents (3.7)432.3428.6Vessels and equipment 23.8108.8132.6Newbuildings 44.0560.4604.4Total assets 17.6421.9439.5Long-term debt 26.8132.6159.4Total equity •
Slide 6: Contract overview
Contract overview HIMALAYA Himalaya Shipping SHIPPING Fleet Status Report Dual Fuel Newcastiemax Hout Nore 2023 DF Newcaslemax 20,000 Nour ka 2023 OF Newcastlemax Mount Ena 2023 DF Newcastlemax Mourt lane 2023 DF Newcastemax Mount Materhom 2023. DF Neweastlemax inde Mort Nebina 2023 DF Neweastlemax
Slide 7: Strong demand
7 Strong demand Capesize tonne-mile demand growth of 4% in 2023 Capesize tonne-mile demand growth of 10.8% in January 2024 Source: Arrow Shipbroker Capesize Panamax Supramax Handysize Capesize Panamax Supramax Handysize
Slide 8: Strong demand outlook
8 Strong demand outlook Significant iron ore production growth in the Atlantic basin Required ships if transported to China1 1) Assuming 180k tonnes pr ship – 100 days round voyage with iron ore discharge in China Incremental iron ore production (MT/year) from these 2 projects 60 35 0 10 20 30 40 50
Slide 9: Baltic 5TC index rate
9 Baltic 5TC index rate Strongest start to the year since 2010 YTD average rate $20k/day up 167% Y/Y
Slide 10: The right timing
10 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 The right timing 25 year low orderbook Significant reduction in yard capacity Source: Clarksons Shipping Intelligence Network (https://sin.clarks
Slide 11: Significant replacement needs
11 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 % of fleet >20 years # ships turning 20 yearsYear 3%60Current 5%402024 7%472025 10%582026 13%562027 15%452028 2
Slide 12: The right ships
12 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 and Company es
Slide 13: The right ships: fuel flexibility unlocking premium potential
13 1. 2022 average of the 5 T/C Routes for Baltic Capesize Index of $16,177. 2. Scrubber benefit based on VLSFO – HSFO spread of $236 basis Singapore bunkering for average January 2023. 3. Premium achieved will depend on the terms Himalaya Shipping is able to achieve in contracts entered into, inclu
Slide 14: The right financing
14 71.6$mValue of ship (average purchase price) 63.1 "Financing (average debt financing)1 88%%Loan to purchase price 16,567 $/dayFixed bareboat day-rate2 841 $/dayScrubber financing3 6,400"Estimated Opex 732"Estimated SG&A 24,540"Estimated cash break-even (3,100)$/dayEstimated scrubber benefit when
Slide 15: Illustrative free cash-flow per share
15 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