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
Himalaya Shipping Ltd. Q2 2024 Results Presentation 16 August 2024 1
Slide 2: Disclaimer: Forward Looking Statements
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
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 $24.0 million for the quarter ended June 30, 2024. • Successful delivery and co
Slide 4: Key Financials Q2 2024
Key Financials Q2 2024 Income statement Comments US$ millions, except per share data Q2 2024 Q1 2024 Variance • Increase in operating revenues of $7.6 million in Q2 2024, due to additional 3 vessels delivered in Q2 2024. Average TCE, gross of Operating revenues 31.2 23.6 7.6 approx. US$34,600/day in
Slide 5: Key Financials Q2 2024
Key Financials Q2 2024 Balance Sheet Summary Comments • Net cash generated by operating activities in Q2 2024 of $17.6 million. US$ millions June 30, 2024 March 31, 2024 Variance • Net cash used in investing activities in Q2 2024 was $159.4 million, primarily relating to the final instalment on the
Slide 6: Chartering position
Chartering position Fleet status report – Current Source: Company Data 6
Slide 7: 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 90,000 Capesize Earnings Seasonality (1990-Present) Average Monthly deviation vs. yearly average 80,000 30% 26% 70,000 21% 21% 20% YTD average rate 60,000 $23k/day up 90% Y/Y 10% 11% 50,000 40,000 0%
Slide 8: Demand has been growing
Demand has been growing Tonne-mile demand historically outpaced volume growth Capesize have favorable supply/demand dynamics Global seaborne trade volume (billion tonne-miles) 30.0% 35,000 3.9% Tonnes (CAGR 2000 – 2023) 25.0% 30,000 4.2% Tonne-mile (CAGR 2000 – 2023) 20.0% H1 2024 y/y Growth 25,000
Slide 9: 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 50% > orderbook1 Simandou project – Guinea Start-up 2025 – full volumes 2028 Vale capacity increases by 2026 232 136 # of Ships for thes
Slide 10: Limited supply of new ships
Limited supply of new ships 25-year low orderbook Highly supportive Order Book to 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 Sh
Slide 11: 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 Current 77 4% 305 ships
Slide 12: Himalaya have the right ships - gives premium rates
Himalaya have the right ships - gives premium rates The youngest fleet – Firmly positioned for distributions Solid Premium to Index 15.6 Q2 reported Time-Charter income $/day 14.8 40,000 12.9 34,600 12.3 12.4 35,000 10.8 Youngest fleet 30,000 Dual Fuel LNG enables HSHP to run on 7.9 LNG/HFO/VLSFO gi
Slide 13: 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 14: Capital discipline
Capital discipline Attractive cash-break even of ~$16k/day on Capesize index equivalent 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 Cash flow from operatio
Slide 15: Solid dividend capacity
Solid dividend capacity Illustrative FCF $ per share based on Capesize index rate 250,000 5.3 200,000 4.6 3.9 150,000 3.2 2.6 100,000 1.9 50,000 1.2 0.5 0 2003 2004 2005 2006 2007 2008 2009 0.0 Capesize index rate CBE 16,300 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 1. This information