Himalaya Shipping Ltd. · OSL:HSHP
Himalaya Shipping — Q4 2024 Earnings Presentation
23 slides from Himalaya Shipping's earnings presentation, Feb 20, 2025
Slide 1: Himalaya Shipping – Q4 2024 Investor Presentation
1 Himalaya Shipping – Q4 2024 Investor Presentation February 2025
Slide 2: Forward looking statements
2 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-l
Slide 3: Highlights
3 Highlights Q4 2024 Highlights: • All delivered vessels generated total operating revenues of $29.6 million, an average time charter equivalent earnings of approximately US$27,800/day, gross. • Net income of $1.0 million and Adjusted EBITDA of $21.3 million for the quarter ended December 31, 2024.
Slide 4: Financial Update
4 Financial Update
Slide 5: Key Financials Q4 2024 Income statement
5 Key Financials Q4 2024 Income statement Comments • Operating revenues of $29.6 million in Q4 2024, a decrease of $9.6 million in comparison to the prior quarter. Decrease mainly due to the decrease in BCI rates in Q4 2024. Average TCE, gross of approximately US$27,800 per day in Q4 2024 versus US$
Slide 6: Key Financials Q4 2024 Balance Sheet Summary
6 Key Financials Q4 2024 Balance Sheet Summary Comments • Net cash generated by operating activities in Q4 2024 was $10.5 million. • Net cash used in financing activities in Q4 2024 was $12.6 million consisting of loan repayments of $6.5 million and cash distributions paid of $6.1 million; • Minimum
Slide 7: Key Financials YTD 2024 Income statement
7 Key Financials YTD Q 2024 Income statement Comments • Operating revenues of $123.6 million on all delivered vessels. Average time charter equivalent earnings of approx. US$32,500/day, gross. • Vessel operating expenses of $23.8 million. Average vessel operating expenses of approx. $6,100/day per v
Slide 8: 8 Company update
8 Company update
Slide 9: Fleet status report – Current Chartering position
9 Source: Company Data Fleet status report – Current Chartering position Mount Norefjell 2023 DF Newcastlemax Mount Ita 2023 DF Newcastlemax Mount Etna 2023 DF Newcastlemax Mount Blanc 2023 DF Newcastlemax Mount Matterhorn 2023 DF Newcastlemax Mont Neblina 2023 DF Newcastlemax Mount Bandeira 2024 DF
Slide 10: Proven Outperformance through Large and Modern Tonnage
10 Proven Outperformance through Large and Modern Tonnage HSHP – DPS in % of EPS ratio HSHP TCE vs Peers and Index Source: Fearnleys, Company Data, Shipping Intelligence Peers: GOGL, SBLK, SHIP, GNK, 2020 (reported Cape/Newcastlemax TCE) 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2q23 3q23 4q2
Slide 11: Ordered at the right time – financed the right way
11 4.77 9.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 63 92 Current Broker Qoute Ordered at the right time – financed the right way The value case The financing case *Assumed current best case financing cost **After full repayment of scrubber financing by Q1 2026 NAV/Broker Qoutes fro
Slide 12: Solid dividend capacity
12 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
Slide 13: Capital discipline
13 Capital discipline 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 to be distributed in monthly dividends 12 consecutive monthly divid
Slide 14: Market update
14 Market update
Slide 15: 2024 total growth healthy – Capesize market correction in Q4
15 900 950 1000 1050 1100 1150 1200 1250 1300 1350 1400 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2022 2023 2024 2024 total growth healthy – Capesize market correction in q4 Capesize Daily Billion Tonne-mile Development (30dms*) Capesize ton-miles grew 3.1% from 2023 *30-day moving sum Source
Slide 16: Average start to the year, strong seasonality ahead
16 Average start to the year, strong seasonality ahead Baltic 5TC Index Tonnage balance at seasonal low Source: Clarksons Shipping Intelligence Index 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 US D p er D ay 2015-24 max-min range 2015-24 average 2024 202
Slide 17: Bauxite market continue to flourish
17 Bauxite market continue to flourish - Increasingly important for Capesize Capesize Fleet Carrying Coal/Bauxite (% of fleet)China Imported Bauxite Port Inventories (Mt) vs. Prices China Bauxite Imports (Mt/week) Source: Arrow, Bloomberg 0.0 1.0 2.0 3.0 4.0 M ill io ns 0% 2% 4% 6% 8% 10% 12% 14% 16
Slide 18: Significant iron ore volumes coming – driving tonne-mile demand
18 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
Slide 19: China import dependency rising
19 China import dependency rising China Iron Ore import dependency China Coal fired power plant capacity Source: Arrow, Bloomberg, DNB China Coal import dependency 0 200 400 600 800 1000 1200 1400 1600 China Operational Coal Capacity Approved & under Construction G W +30% Imports Domestic production
Slide 20: Limited supply of new ships
20 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 OB/Fleet Ratio Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) Orderbook 7
Slide 21: The supply situation
21 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 The supply situation Capesize+ fleet by delivery year in # ships Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) 60% of the fl
Slide 22: Mandatory dry docking to increase in 2025
22 Mandatory dry docking to increase in 2025 Capesize average age Supply constraints Source: Clarksons, Maritime Analytics Fleet age development includes current Orderbook, assumes no scrapping Off hire due to increase from docking schedule % off hire • ~50% y/y increase in estimated offshire days d
Slide 23: Thank you
23 Thank you