Himalaya Shipping Ltd. · OSL:HSHP
Himalaya Shipping — Q2 2024 Earnings Presentation
15 slides from Himalaya Shipping's earnings presentation, Aug 16, 2024
Slide 1: Himalaya Shipping Ltd. Q2 2024 Results Presentation
1 Himalaya Shipping Ltd. Q2 2024 Results Presentation 16 August 2024
Slide 2: Disclaimer: Forward Looking Statements
2 DISCLAIMER Forward Looking Statements This results presentation and any related discussions, including any related written or oral statements made by us, contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties
Slide 3: Highlights
3 Highlights Q2 2024 Highlights: • Generated total operating revenues of $31.2 million, an average time charter equivalent earnings of approximately US$34,600/day, gross. • Net income of $6.9 million and adjusted EBITDA of $24.0 million for the quarter ended June 30, 2024. • Successful delivery and
Slide 4: Key Financials Q2 2024 Income Statement
4 Key Financials Q2 2024 Income statement Comments US$ millions, except per share data Q2 2024 Q1 2024 Variance Operating revenues 31.2 23.6 7.6 Vessel operating expenses (5.6) (4.9) (0.7) Voyage expenses and commission (0.3) (0.4) 0.1 General and administrative expenses (1.3) (1.5) 0.2 Depreciation
Slide 5: Key Financials Q2 2024 Balance Sheet Summary
5 Key Financials Q2 2024 Balance Sheet Summary Comments US$ millions June 30, 2024 March 31, 2024 Variance Cash and cash equivalents 21.9 25.7 3.8 Vessels and equipment 867.7 647.7 220.0 Newbuildings -- 67.1 (67.1) Total assets 897.3 748.6 148.7 Short-term and long-term debt 725.5 583.3 142.2 Total
Slide 6: Fleet status report – Current Chartering position
6 Source: Company Data Fleet status report – Current Chartering position
Slide 7: Strong start to the year and strong seasonality ahead
7 Strong start to the year and strong seasonality ahead Baltic 5TC Index Baltic 5TC Index Seasonality Source: Clarksons Shipping Intelligence Index -13% -23% -11% -13% -5% -6% -4% -2% 11% 26% 21% 21% -30% -20% -10% 0% 10% 20% 30% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Capesize Earnings Seas
Slide 8: Demand has been growing; Capesize supply/demand dynamics favorable
8 7.40% 1.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Container LNG LPG Capesize Total Dry Bulk Car Carriers Tankers H 1 2 02 4 y/ y G ro w th Tonne-mile demand Fleet growth 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 Gra
Slide 9: Significant iron ore volumes coming – driving tonne-mile demand
9 Significant iron ore volumes coming – driving tonne-mile demand Addition iron ore volumes in Atlantic basin (MT/y) – 3x longer than from Australia Source: Clarksons, Rio Tinto, Vale, Himalaya Shipping. 1) Assumed 170MT pr year carried on 210k DWT Newcastlemaxes (95% fully loaded). Each ship able t
Slide 10: Limited supply of new ships
10 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 Limited supply of new ships 25-year low orderbook Highly supportive Order Book to Fleet Ratio Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/)
Slide 11: Significant replacement needs
11 0 50 100 150 200 250 300 350 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 Delivered Newbuildings Significant replacement needs Capesize+ fleet by delivery year in # ships Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) 60%
Slide 12: Himalaya have the right ships - gives premium rates
12 Himalaya have the right ships - gives premium rates The youngest fleet – Firmly positioned for distributions Solid Premium to Index Source: Bloomberg, Clarksons Shipping Intelligence Index - Owned fleets only - Fleet age adjusted for Newbuilding orders The 11 “index ships” fixed on average at 42.
Slide 13: Ordered at the right time – financed long-term at fixed price
13 Ordered at the right time – financed long-term at fixed price Modest leverage Financing fixed for 7 years gives attractive break-even Source; Himalaya Shipping. Clarksons. Debt based on $725.5m total debt net of deferred financing costs. Based on Company estimated average debt financing for 12 ve
Slide 14: Capital discipline
14 1) Drew Holdings Limited holds 30.7% of the Company’s common shares as of June 30, 2024. Capital discipline Alignment between shareholders and management – board and significant shareholder own ~1/3 of the equity1 No reinvestment plans – youngest fleet in the industry means limited capital needs
Slide 15: Solid dividend capacity
15 Solid dividend capacity Illustrative FCF $ per share based on Capesize index rate 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 i