Himalaya Shipping (HSHP) Q3 2025 earnings summary

Executive summary

• Net profit of $9.5 million and EBITDA of $29.3 million for Q3 2025, with TCE earnings of $35,600 per day, outperforming the Baltic Capesize Index.

• Six vessels converted to fixed-rate charters at an average of $36,300 per day until end of 2025; four at $35,300 (Aug–Sep) and four at $38,500 (Oct–Dec).

• Declared total cash distributions of $0.24 per share for Q3 2025 and $0.07 for October.

• Fleet of 12 modern Newcastlemaxes with dual fuel LNG, all on long-term index-linked contracts with conversion options.

• 100% spot market exposure from 2026 to capture anticipated market strength.

Financial highlights

• Operating revenues were $37.9 million for Q3 2025, down from $39.2 million in Q3 2024.

• Net profit of $9.5 million and EPS of $0.21 for Q3 2025, down from $10.6 million and $0.24 in Q3 2024.

• Operating profit was $22 million, EBITDA $29.3 million, and cash flow from operations $18.3 million for Q3 2025.

• Vessel operating expenses rose to $7 million, mainly due to higher spares and maintenance costs.

• Cash and cash equivalents stood at $26.4 million at quarter end.

Outlook and guidance

• Expectation of strong market in 2026 and 2027, with full spot exposure to benefit from potential upside.

• Management remains optimistic about future rate environment and will lock in fixed rates if forward curve is attractive.

• Achieved TCE earnings for October 2025 of $36,800 per day, gross.

• Not expected to fall within the scope of Bermuda's new 15% corporate income tax in the near future due to revenue thresholds.

• Illustrative free cash flow per share increases significantly with higher Capesize index rates, supporting strong dividend capacity.