Himalaya Shipping Ltd. · OSL:HSHP
Himalaya Shipping — Pareto Conference September 2024
15 slides from Himalaya Shipping's conference presentation, September 2024
Slide 1: Himalaya Shipping Ltd. Investor presentation
Himalaya Shipping Ltd. Investor presentation Sept 1
Slide 2: Disclaimer: Forward Looking Statements
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 wor
Slide 3: Chartering position
Chartering position Fleet status report – Current Source: Company Data 3
Slide 4: 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) 7 24,0 6 5 16,8 4 4 13,4 3 3 6,1 1 Q3 23 Q4 23 Q1 24 Q2 24 feb.24 mar.24 apr.24 mai.24 jun.24 jul.24 aug.24 sep.24 4
Slide 5: 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% 60 000 YTD average rate $24k/day 11% 50 000 up 100% Y/Y 10% 40 000 0%
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: Chinese Iron ore stockpiles – No drama!
Chinese Iron ore stockpiles – No drama! Iron ore stockpiles currently around 150Mt (All time high 161 Mt in 2017/18), BUT.. Steel production is significantly higher now than in 2017/18 – only natural with higher stockpiles! Iron ore stocks are on about the long term And when you look at average stoc
Slide 13: 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 14: In addition, the aging fleet will need to drydock..
In addition, the aging fleet will need to drydock.. Drydock data shows 3,2 % further impact on utilization from 2025-2027! «Many small streams makes a large river» Average time/days spent at Average capesize fleet drydock shipyard by age: age: • As we move closer to the end of the decade, the drydoc
Slide 15: 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