Himalaya Shipping (HSHP) Q4 2024 earnings summary

Executive summary

• Q4 2024 operating revenues were $29.6 million, with net income of $1 million and adjusted EBITDA of $21.3 million; all 12 delivered vessels contributed to results.

• Net income for 2024 reached $21.0 million, up from $1.5 million in 2023, driven by fleet expansion and higher time charter revenues.

• Cash distributions declared for Q4 and early 2025 totaled $0.15 per share, with additional monthly dividends throughout 2024.

• Entered a new time charter for Mount Norefjell at a premium to the Baltic 5TC index.

• Twelve Newcastlemax vessels in operation as of December 31, 2024, all equipped with dual fuel LNG technology.

Financial highlights

• Q4 2024 operating revenues were $29.6 million, down $9.6 million from Q3 due to lower BCI rates; average TCE was $27,800/day versus $36,800/day in Q3.

• Net income for Q4 was $1 million, a decrease of $9.7 million from the prior quarter; full year net income was $21.0 million.

• Adjusted EBITDA for Q4 was $21.3 million, down $9.7 million sequentially; full year adjusted EBITDA was $93.1 million.

• Net cash from operations in Q4 was $10.5 million; net cash used in financing was $12.6 million.

• Cash and cash equivalents at year-end 2024 were $19.4 million, down from $25.6 million at year-end 2023.

Outlook and guidance

• Management expects the Capesize and Newcastlemax market to improve, supported by increased bauxite and iron ore exports and a tight supply outlook.

• Cash break-even TCE is estimated at $24,600/day; Capesize equivalent break-even at ~$16,000/day, below the BCI average of $22,000 over the last four years.

• No reinvestment plans due to the young fleet; focus remains on distributing operational cash flow as monthly dividends.

• Management expects sufficient resources to meet obligations for the next 12 months, supported by $19.4 million in cash and a $10 million undrawn revolving credit facility.

• FFA market contango offers potential for higher earnings if the physical market strengthens.