Himalaya Shipping (HSHP) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating revenues reached $39.2 million, with net income of $10.7 million and adjusted EBITDA of $31 million, driven by full deployment and high utilization of all 12 vessels.

• Acquisition of 40% of 2020 Bulkers Management AS for $3.2 million to align management functions; no further M&A planned.

• Cash distributions declared for May–October 2024, increasing from $0.04 to $0.10 per share, with $0.43 per share paid year-to-date, reflecting a robust dividend policy.

Financial highlights

• Operating revenues increased by $8 million quarter-over-quarter due to full operation of all vessels.

• Net income rose to $10.7 million in Q3 2024 from $6.9 million in Q2 2024; adjusted EBITDA increased by $7 million to $31 million.

• Cash and cash equivalents stood at $21.5 million as of September 30, 2024.

• Total equity increased to $160.2 million, while total debt decreased to $719.7 million due to repayments.

• Year-to-date (nine months) operating revenues were $94 million, with net income of $20 million and adjusted EBITDA of $71.8 million.

Outlook and guidance

• Management expects continued upside for Capesize rates into 2025, supported by strong ton-mile growth, limited fleet supply, and significant drydocking requirements.

• Q1 is typically weak, but strong bauxite exports from Guinea and current indicators may support rates and reduce seasonality.

• Dividend capacity remains solid, with a focus on distributing free cash flow monthly and no reinvestment plans due to a young fleet.