Himalaya Shipping Posts $34.9K/Day TCE in Dec, Takes 3 New Ships
Ticker: HSHP · Form: 6-K · Filed: Jan 12, 2024 · CIK: 1959455
Complexity: simple
Sentiment: bullish
Topics: commercial-update, fleet-expansion, time-charter, shipping
TL;DR
**Himalaya Shipping crushed December earnings with $34.9K/day TCE and added three new ships, locking in fixed charters.**
AI Summary
Himalaya Shipping Ltd. (HSHP) reported strong commercial performance in December 2023, achieving average time charter equivalent (TCE) earnings of approximately US$34,900 per day, significantly above its estimated cash break-even TCE of US$24,500 per day. This includes US$2,300 per day from scrubber and LNG benefits. The company also announced the successful delivery of three new 210,000 dwt Newcastlemax dual fuel vessels from New Times Shipyard, bringing its total fleet of six vessels to operate on fixed time charters. This matters to investors because the high TCE earnings and new vessel deliveries indicate strong operational efficiency and potential for increased revenue, while the fixed time charters provide predictable income streams.
Why It Matters
This filing shows Himalaya Shipping is generating strong revenue above its break-even point and expanding its fleet with new, efficient vessels, which could lead to higher profits and shareholder value.
Risk Assessment
Risk Level: low — The company's TCE earnings significantly exceed its cash break-even, and all six vessels are on fixed time charters, providing stable and predictable revenue streams.
Analyst Insight
A smart investor would view this as a positive update, indicating strong operational performance and revenue stability. It might be a good time to consider holding or initiating a position, especially given the fixed time charters and new vessel deliveries.
Key Numbers
- $34,900 — average time charter equivalent (TCE) earnings per day (achieved by Himalaya Shipping Ltd. in December 2023)
- $2,300 — average daily scrubber and LNG benefits (included in the December 2023 TCE earnings)
- $24,500 — estimated cash break-even TCE per day (for Himalaya Shipping Ltd.)
- $37,333 — average Baltic 5TC Capesize Index (during December 2023)
- 3 — number of new 210,000 dwt Newcastlemax dual fuel newbuildings (successfully delivered to Himalaya Shipping Ltd.)
- 6 — total number of vessels (all trading on fixed time charters for Himalaya Shipping Ltd.)
Key Players & Entities
- Himalaya Shipping Ltd. (company) — the registrant and reporting company
- Herman Billung (person) — Chief Executive Officer of Himalaya Shipping Ltd.
- New Times Shipyard (company) — shipyard that delivered three new vessels to Himalaya Shipping Ltd.
- Mount Bandeira (company) — one of the newly delivered vessels
Forward-Looking Statements
- Himalaya Shipping Ltd. will report strong Q4 2023 earnings due to high TCE rates. (Himalaya Shipping Ltd.) — high confidence, target: Q4 2023 earnings report
- The company's revenue stability will improve with all vessels on fixed time charters. (Himalaya Shipping Ltd.) — high confidence, target: next 12 months
- The newly delivered vessels will contribute positively to the company's overall capacity and earnings. (Himalaya Shipping Ltd.) — high confidence, target: Q1 2024
FAQ
What were Himalaya Shipping Ltd.'s average time charter equivalent (TCE) earnings per day in December 2023?
Himalaya Shipping Ltd. achieved average time charter equivalent (TCE) earnings of approximately US$34,900 per day, gross, in December 2023.
How much did scrubber and LNG benefits contribute to the daily TCE earnings in December 2023?
Scrubber and LNG benefits contributed approximately US$2,300 per day to the average daily TCE earnings in December 2023.
What is Himalaya Shipping Ltd.'s estimated cash break-even TCE per day?
The Company's cash break-even TCE is estimated to be approximately US$24,500 per day.
How many new 210,000 dwt Newcastlemax dual fuel newbuildings did Himalaya Shipping Ltd. take delivery of?
Himalaya Shipping Ltd. successfully took delivery of three 210,000 dwt Newcastlemax dual fuel newbuildings from New Times Shipyard.
What is the current status of all of Himalaya Shipping Ltd.'s vessels regarding their charters?
Following the conversion of index-linked time charters to fixed time charters, all of the Company's six vessels were trading on fixed time charters as of January 12, 2024.
Filing Stats: 160 words · 1 min read · ~1 pages · Grade level 10.7 · Accepted 2024-01-12 06:06:18
Filing Documents
- hsltdpressrelease6-kjan122.htm (6-K) — 17KB
- hsltdpressreleaseex991jan1.htm (EX-99.1) — 15KB
- 0001959455-24-000002.txt ( ) — 32KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Himalaya Shipping Ltd. By s Herman Billung Name Herman Billung Title Chief Executive Officer Date January 12, 2024