Hamilton, Bermuda, August 8, 2025
Himalaya Shipping Ltd. (“Himalaya,” “Himalaya Shipping” or the “Company”) announces preliminary unaudited results for the three and six months ended June 30, 2025.
Highlights for the Second Quarter of 2025
- Net income of $1.1 million and EBITDA[1] of $20.9 million for the quarter ended June 30, 2025.
- Achieved average daily time charter equivalent (“TCE”) earnings of approximately $28,400 per day, gross[2].
- Commencement of Lars-Christian Svensen as contracted CEO and appointment of Vidar Hasund as contracted CFO on April 1, 2025.
- In April 2025, the Board approved a grant of 200,000 share options to key human resources.
- On June 3, 2025, the Company successfully completed the uplisting from Euronext Expand to Euronext Oslo Børs.
- Declared cash distributions of $0.025, $0.03 and $0.05 per common share for April, May and June 2025, respectively.
Subsequent events
- Converted the index-linked time charters for four vessels to fixed rate time charters at an average rate of approximately US$35,300 per day, gross, from August 1, 2025 to September 30, 2025.
- Achieved average daily TCE earnings for July 2025 of appproximately $32,700 per day, gross.
- Declared a cash distribution $0.04 per common share for July 2025.
Contracted CEO, Lars-Christian Svensen commented:
“During the second quarter of 2025, the Baltic Capesize Index (BCI) averaged $18,681 per day, while the Himalaya fleet achieved average TCE earnings of around $28,400 per day over the same period. This performance underscores the strong capabilities and potential of our vessels, as well as the solid commercial execution to date. Of our 12 vessels, 10 were active in the spot market, earning an average premium of 42.2% over the Baltic 5TC (BCI) index (excluding scrubber benefits).
In the second quarter of 2025, the Baltic 5TC Capesize index averaged $18,681 per day, compared to $22,665 during the same period in the previous year. Despite a slow start to the year, particularly due to two major typhoons that disrupted iron ore exports from Australia in February 2025, the market has since rebounded. This recovery has been driven by a 27% year-on-year increase in global bauxite shipments in the first half of 2025, totaling 126 million MT, along with a 4% increase in iron ore exports from Brazil, totaling 195 million MT. Broken down by the three big commodities, we experienced a ton mile development of 1.5% decrease in iron ore, a 14% decrease in coal, offset by a 27% increase in bauxite. With a low order book and the emergence of more tonne-mile intensive trades, such as the Simandou project in Guinea expected to commence in November 2025, we anticipate a well-balanced market and a strong foundation for a potentially prolonged upward cycle.
The market continues to face US tariffs and trade war uncertainties, however, these have not directly impacted the Capesize and Newcastlemax segments, with less than 2% of exports of the total large size drybulk trades affected and no material impact on imports.
The Company has maintained its strategy of making monthly distributions to its shareholders. Given the limited need for capital expenditures, we expect a significant portion of free cash flow to be paid to shareholders. On August 7, 2025, we declared a cash distribution of $0.04 per share. If our positive market outlook materializes, there may be a potential to increase distributions.”
[1] The Company uses certain financial information calculated on a basis other than in accordance with accounting principles generally accepted in the United States (US GAAP) including average daily TCE earnings, gross and EBITDA. EBITDA as presented above represents our net income (loss) plus depreciation of vessels and equipment; total financial expenses, net; and income tax expense. Please refer to the appendix of this report for a reconciliation of this non-GAAP financial measure to the most directly comparable financial measure prepared in accordance with US GAAP.
[2] Average daily TCE earnings, gross, as presented above, represents time charter revenues and voyage charter revenues adding back address commissions and divided by fleet operational days. Please refer to the appendix of this release for a reconciliation of this non-GAAP measure to the most directly comparable financial measures prepared in accordance with US GAAP.
About Himalaya Shipping Ltd.
Himalaya Shipping Ltd. is an independent bulk carrier company, incorporated in Bermuda. Himalaya Shipping has twelve vessels in operation.
August 8, 2025
The Board of Directors
Himalaya Shipping Ltd.
Hamilton, Bermuda