Himalaya Shipping Ltd. (HSHP) Announces its Preliminary Results for the Quarter Ended March 31, 2024

Hamilton, Bermuda, May 23, 2024

Himalaya Shipping Ltd. (“Himalaya,” “Himalaya Shipping” or the “Company”) announces preliminary unaudited results for the quarter ended March 31, 2024.

Highlights for the quarter ended March 31, 2024

• Total operating revenues of $23.6 million, which is an average time charter equivalent (“TCE”) earnings of approximately $30,600 per day, gross.  Average Baltic 5TC Capesize Index was US$24,286 per day.
• Net income of $2.5 million and Adjusted EBITDA of $16.8 million for the quarter ended March 31, 2024.
• Converted index linked charters to fixed rate charter for three vessels for varying periods from February 1, 2024 to December 31, 2024.
• Draw down of financing on the three delivered vessels by sale leaseback facilities provided by Jiangsu Financial Leasing Co. Limited (“Jiangsu”) and CCB Financial Leasing Company Limited (“CCBFL”), totaling $98.6 million and $49.2 million, respectively. 
• Declaration and payment of cash distribution for January 2024 of $0.01 per common share.
• Declaration of cash distribution for February 2024 of $0.03 per common share, which was paid in April 2024.

Subsequent events

• Successful delivery and commencement of operations in April 2024 of one additional 210,000 dwt Newcastlemax dual fuel newbuilding, Mount Denali, ordered from New Times Shipyard (“NTS”), resulting in a total delivered fleet of ten vessels, with two additional vessels expected to be delivered in June 2024. Mount Denali has been delivered to a major commodity trading company for an initial charter term until December 31, 2026, with an evergreen structure thereafter, and will earn time charter revenue based on an index linked rate plus scrubber premium.
• Conversion of index linked charters on Mount Blanc and Mount Neblina to fixed charters from May 1, 2024 to June 30, 2024 at an average rate of $37,275 per day. The vessels will continue to earn scrubber premium according to the terms of their existing time charter agreements.
• Declaration of cash distribution for March and April 2024 of $0.03 and $0.04 per common share, respectively.

Contracted CEO, Herman Billung commented:

“We are proud of the rapid development of the Company. By the end of June, upon the delivery of our remaining two newbuilds, we are expected to have a sailing fleet of twelve state of the art vessels representing the youngest and most fuel-efficient dry bulk fleet on the water today. All vessels have been employed by reputable counterparties, with the index linked charters earning on average a premium of 42.25% to the Baltic 5TC (BCI) index.

In line with the Company’s strategy to ensure capital discipline and return excess cash flow after debt service and working capital requirements to our shareholders, during the first quarter of 2024, the Company declared its first cash distributions and hopes that these distributions can continue to increase with improving market conditions.”

Questions should be directed to:

Herman Billung: Contracted CEO, +4791831590