Himalaya Shipping Ltd. · OSL:HSHP
Himalaya Shipping — Q3 2024 Earnings Presentation
20 slides from Himalaya Shipping's earnings presentation, Nov 7, 2024
Slide 1: Himalaya Shipping – Q3 2024 Investor Presentation
Himalaya Shipping – Q3 2024 Investor Presentation 7 November 2024 1
Slide 2: Forward looking statements
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. Forward-loo
Slide 3: Highlights
Highlights Q3 2024 Highlights: • All delivered vessels generated total operating revenues of $39.2 million, an average time charter equivalent earnings of approximately US$36,800/day, gross. • Net income of $10.7 million and adjusted EBITDA of $31.0 million for the quarter ended September 30, 2024.
Slide 4: Financial update
Financial update 4
Slide 5: Key Financials Q3 2024
Key Financials Q3 2024 Income statement Comments US$ millions, except per share data Q3 2024 Q2 2024 Variance • Increase in operating revenues of $8.0 million in Q3 2024, due to full quarter operations of all 12 vessels. Average TCE earnings, Operating revenues 39.2 31.2 8.0 gross of approx. US$36,8
Slide 6: Key Financials Q3 2024 – Balance Sheet Summary
Key Financials Q3 2024 Balance Sheet Summary Comments • Net cash generated by operating activities in Q3 2024 of $16.5 September 30, million. US$ millions June 30, 2024 Variance 2024 • Net cash used in investing activities in Q3 2024 was $0.1 million, primarily relating to the acquisition of 40% equ
Slide 7: Key Financials YTD Q3 2024
Key Financials YTD Q3 2024 Income statement Comments US$ millions, except per share data YTD Q3 2024 • Operating revenues of $94.0 million on all delivered vessels. Average TCE earnings, gross of approx. US$34,300/day. Operating revenues 94.0 • Vessel operating expenses of $17.1 million. Average ves
Slide 8: Company update
Company update 8
Slide 9: Chartering position
Chartering position Fleet status report – Current Source: Company Data 9
Slide 10: Growth in earnings and dividends into an improving market
Growth in earnings and dividends into an improving market EBITDA pr Q ($m) Dividend pr month ($c/share) 12 EBITDA 35.0 10 31.0 10 30.0 25.0 24.0 8 7 20.0 6 6 16.8 5 15.0 13.4 4 4 4 3 3 10.0 6.1 2 5.0 1 0.0 0 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24
Slide 11: Ordered at the right time – financed long-term at fixed price
Ordered at the right time – financed long-term at fixed price Modest leverage Financing fixed for 7 years gives attractive break-even $95m Fixed bareboat day-rate2 $/day 16,567 $71.6m Scrubber financing3 $/day 841 Estimated Opex " 6,400 64% LTV $60.4m Estimated SG&A " 732 Estimated cash break-even "
Slide 12: Solid dividend capacity
Solid dividend capacity Illustrative FCF $ per share based on Capesize index rate 5.3 4.6 3.9 3.2 2.6 1.9 1.2 0.5 0.0 16,300 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 1. This information has been prepared for illustrative purposes only and does not represent the Company’s forecast. It
Slide 13: Capital discipline
Capital discipline Attractive cash-break even of ~$16k/day on Capesize index equivalent Full alignment between shareholders and management – board and sponsors own ~1/3 of the equity No reinvestment plans – youngest fleet in the industry means limited capital needs Cash flow from operation targets t
Slide 14: Market update
Market update 14
Slide 15: Strong start to the year and strong seasonality ahead
Strong start to the year and strong seasonality ahead Baltic 5TC Index Baltic 5TC Index Seasonality Capesize Earnings Seasonality (2000-Present) 90,000 Average quarterly deviation vs. yearly average 30% 80,000 26% 70,000 20% 60,000 YTD average rate $24k/day up 71% Y/Y 10% 50,000 4% 40,000 0% 30,000
Slide 16: Significant iron ore volumes coming – driving tonne-mile demand
Significant iron ore volumes coming – driving tonne-mile demand Addition iron ore volumes in Atlantic basin (MT/y) – 3x longer than from Australia Required # ships 150% > orderbook1 Simandou project – Guinea Start-up 2025 – full volumes 2028 Vale capacity increases by 2026 232 136 # of Ships for the
Slide 17: Limited supply of new ships
Limited supply of new ships 25-year low orderbook Highly supportive OB/Fleet Ratio 450 54% 400 350 41% 300 32% 250 200 22% 20% 150 Orderbook 7.2% of fleet 100 12% 10% 9% 7.2% 50 0 2000 2003 2006 2009 2012 2015 2018 2021 2024 Capesize fleet mDWT Capesize orderbook mDWT Source: Clarksons Shipping Inte
Slide 18: Significant replacement needs
Significant replacement needs Capesize+ fleet by delivery year in # ships 60% of the fleet >20 years by 2033 350 Vessels built # ships turning % of fleet Vessels built post-2016 Vessels built before 20093 between 2009 and Year 20153 unaffected by 20303 20 years >20 years 300 2024 99 5% 305 ships – 1
Slide 19: Mandatory dry docking to increase in 2025
Mandatory dry docking to increase in 2025 Drydock data implies up to 2-3% further supply restrictions fleet-wide over the next 3 years Dry dock requirement Average capesize fleet age: 2,000,000.00 1,800,000.00 1,600,000.00 1,400,000.00 1,200,000.00 DWT days 1,000,000.00 800,000.00 600,000.00 400,000
Slide 20: Thank you
Thank you 20
Himalaya Shipping Ltd. Common Shares — Q3 2024 Earnings Presentation on 6ix