Himalaya Shipping Ltd. Overview
Himalaya Shipping is a single-asset-class, pure-play owner of the youngest and among the most fuel-efficient Newcastlemax fleets on the water: twelve ~210,000 dwt LNG dual-fuel vessels with scrubbers, built in 2023–2024 for long-haul iron ore and bauxite trades between the Atlantic/Australia and China. The company is a Trøim-group vehicle structured for maximum operating leverage and maximum shareholder payout: it has almost no staff, outsources commercial, technical and corporate functions under contracts, finances the fleet entirely through ~USD 700 M of Chinese sale-and-leaseback capital, and charters nearly all ships on index-linked time charters that historically earn a substantial premium to the Baltic Capesize Index, with optional conversion to fixed rates. Excess cash is returned monthly via distributions from contributed surplus (33 consecutive months through September 2026). The equity is therefore a high-beta, high-yield instrument on Capesize freight, offset by high leverage (~62% LTV at end-2025) and full exposure to China-centric bulk demand.
What the company does
Himalaya Shipping owns and operates twelve Newcastlemax dry bulk carriers and provides seaborne transportation of major bulk commodities — principally iron ore and bauxite, with coal as a secondary cargo — on long-haul routes chosen by its charterers. According to the 20-F for FY2025, the company's key trades are Brazil–China and Australia–China, and its customers are major commodity trading houses, commodity/energy-transition companies and multi-modal transport/logistics companies.
Company's own description (paraphrased from 20-F FY2025 and SEC business summary)
The company describes itself as an independent dry bulk carrier company that owns and operates a fleet of Newcastlemax vessels in the large dry bulk segment. It employs vessels through index-linked and fixed time charters, outsources technical ship management, crewing, maintenance and safety services to third-party ship managers, and receives commercial and corporate management through a contracted management company (2020 Bulkers Management AS). Financing arrangements — sale-and-leaseback contracts with three Chinese leasing houses and a small revolving credit facility from its largest shareholder — support vessel ownership.
Business model
| Element | Description |
|---|---|
| Asset base | 12 identical-class Newcastlemaxes; average all-in purchase price disclosed at fleet ordering of approx. USD 71.6 M per vessel including variation orders, address commissions and scrubbers (company statement reported by LNG Prime, 2023) |
| Revenue model | 100% vessel service revenue (time charter hire). No product, subscription or licensing revenue. Revenue recognized as time charter revenue (with minor voyage charter revenue) |
| Pricing mechanism | Predominantly index-linked time charters: hire = Baltic 5TC Capesize index (or 180k-based 5TC) × premium factor, plus scrubber-benefit and LNG-benefit sharing; conversion rights to fixed rates set off the FFA curve by agreement with charterer |
| Fixed-rate overlay | Periodic conversions of selected ships to fixed rates for defined windows (e.g., four ships at ~USD 27,700/day for Q1 2026; four ships at ~USD 56,500/day for June 2026; two ships at ~USD 51,200/day for Aug 1 – Dec 31, 2026) |
| Cost structure | Vessel opex ~USD 6,400–6,800/day/vessel (Q1 2025 / Q1 2026); G&A ~USD 5 M/year; depreciation ~USD 29 M/year; lease interest ~USD 50 M/year |
| Breakeven | All-in cash breakeven equivalent to the Baltic Capesize Index of approx. USD 17,300/day (CEO, Q1 2026 call) |
| Capital allocation | Monthly cash distributions out of the Contributed Surplus account; no buybacks to date; SGM on Aug 10, 2026 transferred USD 28.5 M from share premium to contributed surplus to sustain distribution capacity |
| Financing | Sale-and-leaseback with AVIC International Leasing (4 vessels), CCB Financial Leasing (6 vessels) and Jiangsu Financial Leasing (2 vessels, refinanced from CCBFL); total committed USD 758.4 M; Drew Holdings RCF USD 10 M (undrawn at March 5, 2026) |
Value chain position
Himalaya sits in the "tonnage provider" layer of the iron ore/bauxite logistics chain: miners (Vale, Rio Tinto, BHP, Fortescue, Guinea bauxite exporters, Simandou consortium) and commodity traders charter tonnage either directly or via operators; Himalaya provides vessels on time charter, with the charterer bearing voyage costs (bunkers, port costs) and Himalaya bearing vessel operating costs and capital costs. Because the fleet is dual-fuel and scrubber-fitted, Himalaya captures part of the fuel-cost advantage through benefit-sharing clauses (e.g., scrubber benefit of ~USD 2,300–2,600/day in August–September 2026 commercial updates).
Customer types and end-markets
| Customer type | Examples disclosed / reported | End-market exposure |
|---|---|---|
| Major commodity trading companies | "Major commodity trading company" (Mount Denali charter to Dec 31, 2026 with evergreen structure, offshore-energy.biz April 2024); Koch reported as charterer of one vessel on fixed rate (TradeWinds headline) | Iron ore, bauxite, coal flows into China |
| Japanese shipping/logistics majors | "Major Japanese counterpart" — first vessel Mount Norefjell, 2-yr TC at USD 30,000/day from March 2023 | Japanese industrial supply chains, long-haul bulk |
| Commodity and energy-transition companies | Named generically in company descriptions | Iron ore (steel), bauxite (aluminium) |
Independent characterization
Himalaya is best understood as a listed, leveraged, index-tracking Capesize freight instrument with a technology premium. Its distinctive features versus peers are: (i) fleet homogeneity and youth (100% 2023–2024 builds), which enables premium earnings — management claims an average 48% premium to the BCI since inception and 25% versus peers (Q1 2026 call); (ii) an extremely low fixed-cost corporate layer (G&A ~3.7% of FY2025 revenue); (iii) full balance sheet commitment to Chinese leasing capital with "hell-and-high-water" bareboat obligations; and (iv) a payout policy that distributes most free cash monthly. The combination produces strong upside participation in Capesize booms (Q2 2026 TCE USD 50,600/day; September 2026 USD 65,800/day) but thin equity cushions in downturns (FY2025 Q1 net loss of USD 6.4 M at TCE USD 21,100/day).
Strategy
Stated strategy (themes from 20-F FY2025 and 2026 earnings calls, paraphrased)
| Theme | Substance |
|---|---|
| Index-linked employment with conversion optionality | Charter most vessels on long-term index-linked contracts to capture upside, while converting to fixed rates when the FFA curve offers value |
| Premium earnings from technology | Leverage the fleet's intake, speed/consumption and dual-fuel/scrubber capability to earn premiums (claimed 48% over BCI since inception) |
| Low breakeven and lean G&A | All-in cash breakeven ~USD 17,300/day BCI-equivalent; G&A ~USD 5 M/yr; transparent model |
| Maximum shareholder distributions | Monthly cash distributions from contributed surplus; replenishment via share-premium reduction (USD 28.5 M, Aug 2026) |
| Environmental leadership | Top-1% emission rating claim; LNG capability for regulatory tailwinds (EU ETS, FuelEU, IMO) |
| Accretive growth optionality | CEO states the company is always looking for accretive opportunities, but no fleet expansion announced; 2025 placement release stated no further significant investment plans |
Strategic initiatives (last 24 months)
| Date | Initiative | Status / target |
|---|---|---|
| Aug 2024 | Acquisition of 40% of 2020 Bulkers Management AS | Completed |
| Sep 2024 – Apr 2025 | CEO succession (Billung → Svensen) | Completed |
| Mar 2025 | USD 15 M private placement to attract a strategic shareholder | Completed |
| 2025–2026 | Program of charter conversions to fixed rates to manage volatility | Ongoing (four ships Q1 2026; four ships June 2026; two ships Aug–Dec 2026) |
| 2025–2026 | Renewal of maturing charters at "significant premiums" (Mount Elbrus, Mount Ita, Mount Matterhorn, Mount Emai) | Executed |
| Apr 1, 2026 | Increase stake in 2020 Bulkers Management to 54% (control of management platform after 2020 Bulkers Ltd. fleet sale) | Completed |
| 2,026 | Planned vessel modifications (20-F reference) — in context of Port Hedland three-auxiliary-engine requirement | Status not disclosed |
| Aug 2026 | Share premium reduction USD 28.5 M to contributed surplus to fund distributions | Approved (97.99%) |
Sustainability/ESG commitments: No formal quantified emissions-reduction target was located; ESG positioning rests on fleet specification. Cost programs: none announced. Medium-term financial targets / guidance: Himalaya does not issue numeric earnings guidance; it provides monthly TCE disclosures, breakeven (USD 17,300/day), and market outlook commentary (strong H2 2026 expected; too early to fix Q1 2027 with forward curve ~USD 25,500/day for Q1 2027 and ~USD 29,500/day for full-year 2027 per Q2 2026 call).
Products & Services
Himalaya has a single "product": time-chartered Newcastlemax vessel capacity. The catalog is therefore presented vessel by vessel. All vessels are ~210,000 dwt (first vessels marketed as 208,000 dwt), LNG dual-fuel, scrubber-fitted, ECO-hull design, built by New Times Shipbuilding, Jingjiang, China.
Fleet register
| Vessel | Delivery | Financing (lessor) | Latest disclosed employment | Source |
|---|---|---|---|---|
| Mount Norefjell | Mar 2023 | AVIC (vessels 1–4) | Initial 2-yr TC at USD 30,000/day with major Japanese counterpart; converted to fixed rate Apr 1 – Dec 31, 2025 | LNG Prime |
| Mount Ita | Mar 2023 | AVIC | New index-linked TC for 11–14 months at significant premium to Baltic 5TC (Q4 2025 / Q1 2026) | Q4 2025 release |
| Mount Etna | Apr 13, 2023 | AVIC | Index-linked TC (terms not separately disclosed recently) | Offshore Energy |
| Mount Blanc | May 31, 2023 | AVIC | Minimum 24-month index-linked TC with evergreen structure at premium to standard Capesize | Offshore Energy |
| Mount Matterhorn | Jul 2023 (guided) | CCBFL / Jiangsu (vessels 5–8; hulls 0120839–40 refinanced to Jiangsu) | New index-linked TC 12–14 months at significant premium (Q1 2026) | Q1 2026 call |
| Mount Neblina | 2,023 | CCBFL / Jiangsu | Index-linked TC | Offshore Energy |
| Mount Bandeira | 2023–2024 | CCBFL / Jiangsu | Index-linked TC | roic.ai fleet list |
| Mount Hua | 2023–2024 | CCBFL / Jiangsu | Converted to fixed rate Apr 1 – Dec 31, 2025 | LNG Prime |
| Mount Elbrus | 2,024 | CCBFL (vessels 9–12) | New TC fixed at USD 30,000/day to Jun 30, 2026, thereafter index-linked at premium, evergreen | Q4 2025 release |
| Mount Denali | Apr 22, 2024 | CCBFL | TC to major commodity trader until Dec 31, 2026, evergreen thereafter; scrubber/LNG benefit sharing; FFA-based conversion rights | Offshore Energy |
| Mount Aconcagua | Jun 2024 | CCBFL | Index-linked TC | roic.ai |
| Mount Emai (also written "Mount Emei") | Jun 2024 | CCBFL | New index-linked TC 12–14 months at significant premium (Q2 2026) | Q2 2026 release |
Note: Exact vessel-to-lessor mapping for vessels 5–12 and exact delivery months for Mount Neblina, Mount Bandeira, Mount Hua and Mount Elbrus were not located in the sources reviewed; the batch mapping above follows the 20-F definitions (AVIC = hulls 0120833–36; CCBFL = six of hulls 0120837–44; Jiangsu = hulls 0120839–40).
Technical capabilities (fleet-wide)
| Capability | Detail | Commercial relevance |
|---|---|---|
| LNG dual-fuel main engine | Can burn LNG or conventional fuel; positioned for future fuels | LNG benefit sharing with charterers; lower CO2 intensity; FuelEU / EU ETS positioning |
| Exhaust gas scrubbers | Installed on all 12 | Scrubber benefit captured (≈USD 2,300–2,600/day in Aug–Sep 2026) |
| Nitrogen abatement systems | Reported on fleet | Tier III / NOx compliance |
| ECO hull, speed/consumption design, extra cargo intake | Company attributes earnings premium to extra intake and speed/consumption profile | Average 48% premium to BCI since inception (company claim) |
| Emission rating | Company claims top 1% emission rating among large bulkers | Charterer preference; RightShip vetting |
| Auxiliary engines | Fleet did not meet new Port Hedland requirement of three diesel auxiliary engines (late 2025); 20-F references planned vessel modifications | Temporarily excludes one major Australian load port |
Charter product types
| Product | Description | Pricing model |
|---|---|---|
| Index-linked time charter | Core product; 11–24+ months with evergreen extensions | Baltic 5TC × premium + scrubber/LNG sharing |
| Fixed-rate conversion | Optional, by agreement, priced off FFA curve | Fixed USD/day for defined window |
| Fixed-rate time charter | Initial charters (e.g., USD 30,000/day) | Fixed USD/day |
| Voyage charter | Minor/incidental | Freight per ton |
Financial Narrative
The company was incorporated in March 2021 and had no operating vessels until March 2023; FY2021–FY2022 therefore represent the newbuilding/pre-operating phase. All figures USD, U.S. GAAP.
Income statement: notes and sources
Sources: 20-F FY2025 results table (FY2024–FY2025); equibles.com standardization of SEC filings (FY2022–FY2023); roic.ai (EPS FY2022–FY2023). FY2024 voyage expenses per 20-F FY2025.
Margins and growth (%)
Revenue CAGR FY2023–FY2025: ~89.6% (calc.), driven entirely by fleet ramp-up from 2 to 12 vessels. On a fully-delivered basis (FY2024→FY2025) growth was 6.7%, reflecting higher TCE in H2 2025 offset by a weak Q1 2025.
Commentary. FY2023 is a partial year (deliveries March 2023 onward) with thin net profit as interest on leaseback debt ramped faster than earnings. FY2024 was the first full-fleet year (last deliveries June 2024) and produced a step-change in EBITDA to USD 93.2 M. FY2025 revenue rose 7% but net income fell 16% to USD 17.7 M because vessel opex rose 18% (crew, spares, service fees, insurance), depreciation rose 10% (full-year effect of 2024 deliveries) and financial expenses rose 11% (full-year interest on the last three vessels). The intra-year profile in 2025 was highly back-end loaded: a USD 6.4 M loss in Q1 2025 (TCE USD 21,100/day) gave way to USD 13.5 M profit in Q4 (TCE USD 39,600/day). H1 2026 (net income USD 29.6 M) already exceeds FY2025 in full, the clearest inflection in the company's history.
H1 2026 vs H1 2025: notes and sources
Source: Q1 and Q2 2026 releases/calls (sums calc.).
Balance sheet
Sources: Q4 2025 and Q4 2024 interim financial statements (FY2023–FY2025); Stockopedia/Fintel (Capital IQ) for FY2021–FY2022; gross debt USD 700.6 M and LTV 62% per Q4 2025 earnings summary (Quartr); non-current carrying debt per AlphaQuery. Gross debt for earlier years was not located as a single disclosed figure; total liabilities are almost entirely leaseback debt.
Post-balance-sheet: Outstanding leaseback balance ~USD 694 M at Q1 2026 and ~USD 688 M at Q2 2026; cash USD 24.5 M (Q1 2026) and USD 34.8 M (Q2 2026); minimum cash requirement under the leasebacks USD 12.3 M; total equity USD 155.8 M at March 31, 2026 (StockTaper).
Commentary. The balance sheet is a pure function of the newbuilding program: assets expanded from USD 95 M to USD 880 M in three years, funded ~82% by leaseback liabilities. Equity has been held roughly flat (~USD 155–162 M) because the company distributes earnings as fast as it generates them and has raised only modest equity (IPO USD 44.8 M gross, 2025 placement USD 15 M). Deleveraging is purely amortization-driven (~USD 6–7 M per quarter in 2025–2026). Working capital oscillates around zero. There is no goodwill.
Cash flow
Sources: FY2025 OCF USD 51.7 M (20-F/AlphaQuery); FY2024 OCF implied from equibles (FY2025 −7.5% YoY); FY2024 investing outflow USD 313.3 M per 9M 2024 interim statements (final three deliveries, no further capex in Q4 2024 assumed — flagged); FY2025 financing outflow USD 38.7 M and distributions paid USD 26.9 M per AlphaQuery; net change in cash calc. from balance sheet. FY2025 financing outflow is consistent with USD 14.8 M placement proceeds less USD 26.9 M distributions less ~USD 26.6 M scheduled lease principal (calc.). Pre-2024 cash-flow detail not located.
Commentary. FY2025 was the first year of positive free cash flow (USD 51.7 M; capex nil). Cash conversion from EBITDA was ~53% in FY2025 because ~USD 50 M of interest is paid in cash. Q2 2026 OCF of USD 34.2 M in a single quarter (vs USD 8.3 M a year earlier) demonstrates the extreme operating leverage of the model.
Key ratios
Cash conversion cycle: not meaningful (time-charter hire is paid in advance, ~15-day cycles; no inventory) — not publicly disclosed.
Commentary. Returns on assets are structurally low at mid-cycle rates (2–3% ROA) because the fleet was built at peak-ish newbuilding prices (~USD 71.6 M/vessel) and financed expensively (interest ~USD 50 M on ~USD 700 M ≈ 7% effective). Interest coverage of ~1.3x EBIT is thin in a normal market; on H1 2026 run-rate EBITDA (USD 137 M annualized) net debt/EBITDA falls to ~4.9x and EBIT coverage rises to ~4x (calc.). The equity story therefore depends heavily on the freight cycle staying above the USD 17,300/day breakeven.
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Results by Segment and Segment Margins & Growth (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Dry bulk segment revenue (USD Mn) | 36.7 | 123.6 | 131.9 |
Segment operating income (USD Mn) | 14.6 | 66.7 | 68.2 |
Segment pre-tax income (USD Mn) | 1.5 | 21.1 | 17.7 |
Segment operating margin (%) | 39.8 | 54.0 | 51.7 |
Revenue YoY growth (%) | — | 236.8 | 6.7 |
Share of total revenue (%) | 100 | 100 | 100 |
Results by Segment and Per-Share Data
| Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|---|
Operating revenue (USD Mn) | 22.0 | 29.9 | 37.9 | 42.1 | 33.6 | 53.7 |
Operating profit (USD Mn) | 6.5 | 13.6 | 22.0 | 26.0 | 17.2 | 36.7 |
EBITDA (USD Mn) | 13.8 | 20.9 | 29.7 | 33.3 | 24.5 | 44.0 |
Net income (USD Mn) | -6.4 | 1.1 | 9.5 | 13.5 | 5.0 | 24.6 |
EPS basic (USD) | -0.14 | 0.02 | 0.21 | 0.29 | 0.11 | 0.52 |
Average TCE gross (USD per day) | 21,100 | 28,400 | — | 39,600 | 32,300 | 50,600 |
Group Entities
| Entity | Role | Ownership |
|---|---|---|
Himalaya Shipping Ltd. (Bermuda) | Listed holding company | Public; Drew Holdings ~25% |
12 vessel-owning / bareboat-chartering subsidiaries (Liberia), e.g., Mount Norefjell Inc., Mount Denali Inc. | Hold bareboat-charter interest in each vessel under sale-leaseback | 100% |
2020 Bulkers Management AS (Norway) | Contracted commercial/corporate manager; employs contracted CEO, CFO, COO | 54% from Apr 1, 2026 (40% from Aug 2024); remainder 2020 Bulkers Ltd. and Bruton Limited (equity-method accounted at USD 0.4 M, end-2025) |
Lessor SPVs (AVIC, CCBFL, Jiangsu) | Legal owners of vessels; bareboat lessors | Third-party |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total operating revenue (USD Mn) | 0 | 0 | 36.7 | 123.6 | 131.9 |
Vessel operating expenses (USD Mn) | 0 | 0 | 8.6 | 23.8 | 28.0 |
Voyage expenses and commissions (USD Mn) | — | 0 | — | 1.6 | 1.6 |
Gross profit — revenue less vessel opex (USD Mn) | 0 | 0 | 28.1 | 99.8 | 103.9 |
General and administrative (USD Mn) | — | 1.97 | 3.8 | 5.0 | 4.9 |
Depreciation (USD Mn) | 0 | 0 | 9.1 | 26.5 | 29.2 |
Operating income (USD Mn) | — | -1.97 | 14.6 | 66.7 | 68.2 |
EBITDA (USD Mn) | — | -1.97 | 23.7 | 93.2 | 97.4 |
Interest expense (USD Mn) | — | 0 | 13.6 | 46.6 | 51.4 |
Total financial expenses net (USD Mn) | — | 0.02 | -13.1 | -45.6 | -50.5 |
Pre-tax income (USD Mn) | — | -1.95 | 1.5 | 21.1 | 17.7 |
Income tax (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Net income (USD Mn) | — | -1.95 | 1.5 | 21.1 | 17.7 |
EPS basic (USD) | — | -0.06 | 0.04 | 0.48 | 0.38 |
EPS diluted (USD) | — | — | — | 0.48 | 0.38 |
Distributions declared per share (USD, approx.) | 0 | 0 | 0 | — | — |
Margin Analysis (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Gross margin (%) | 76.6 | 80.7 | 78.8 |
Operating margin (%) | 39.8 | 54.0 | 51.7 |
EBITDA margin (%) | 64.6 | 75.4 | 73.8 |
Net margin (%) | 4.1 | 17.1 | 13.4 |
Revenue growth YoY (%) | — | 236.8 | 6.7 |
Income Statement
| Metric | H1 2025 | H1 2026 |
|---|---|---|
Operating revenue (USD Mn) | 51.9 | 87.3 |
EBITDA (USD Mn) | 34.7 | 68.5 |
Operating profit (USD Mn) | 20.1 | 53.9 |
Net income (USD Mn) | -5.3 | 29.6 |
Cash flow from operations (USD Mn) | 8.6 | 44.0 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 95.2 | 178.0 | 599.2 | 880.1 | 863.9 |
Cash and equivalents (USD Mn) | 11.3 | 0.3 | 25.6 | 19.4 | 32.4 |
Total current assets (USD Mn) | 11.3 | 1.7 | 32.8 | 26.8 | 39.7 |
Vessels and newbuildings net (USD Mn) | 83.5 | 176.0 | 561.0 | 853.0 | 823.8 |
Total current liabilities (USD Mn) | 0.8 | 26.0 | 25.3 | 35.8 | 36.6 |
Working capital (USD Mn) | 10.5 | -24.3 | 7.5 | -9.0 | 3.1 |
Total liabilities (USD Mn) | 3.3 | 87.5 | 445.0 | 725.4 | 702.2 |
Gross debt — sale-leaseback (USD Mn) | — | — | — | — | 700.6 |
Long-term debt non-current carrying (USD Mn) | — | — | — | — | 665.6 |
Net debt — gross debt less cash (USD Mn) | — | — | — | — | 668.2 |
Shareholders' equity (USD Mn) | 91.9 | 90.3 | 154.2 | 154.7 | 161.7 |
Goodwill and intangibles (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (USD Mn) | — | — | — | 55.9 | 51.7 |
Capital expenditure (USD Mn) | — | — | — | 313.3 | 0 |
Free cash flow (USD Mn) | — | — | — | -257.4 | 51.7 |
Distributions paid (USD Mn) | 0 | 0 | 0 | — | 26.9 |
Share buybacks (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Net change in cash (USD Mn) | — | -11.0 | 25.3 | -6.2 | 13.0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
ROE (%) calc. avg equity | 1.2 | 13.7 | 11.2 |
ROA (%) calc. avg assets | 0.4 | 2.9 | 2.0 |
ROIC (%) calc. EBIT over equity plus net debt | — | — | 8.2 |
Current ratio (x) | 1.30 | 0.75 | 1.08 |
Gross debt to equity (x) | — | — | 4.33 |
Net debt to EBITDA (x) | — | — | 6.9 |
Interest coverage EBIT over interest (x) | 1.07 | 1.43 | 1.33 |
EBITDA over interest (x) | 1.74 | 2.00 | 1.89 |
Asset turnover (x) | 0.09 | 0.17 | 0.15 |
Loan-to-value (%) company-reported | — | — | 62 |
Revenue by Region
| Region | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Worldwide — not split (USD Mn) | 36.7 | 123.6 | 131.9 |
Trade / Region Details
| Trade / region | Direction | Drivers (company commentary, Q1–Q2 2026 calls) |
|---|---|---|
West Africa (Guinea) → China, bauxite | Fastest-growing | Guinea bauxite volumes +23% YoY in Q1 2026; bauxite ~20% of Capesize/Newcastlemax cargo |
West Africa (Simandou) → China, iron ore | Emerging | First ore November 2025; target 120 Mt/yr exports |
Brazil → China, iron ore | Flat to slightly down | Brazilian iron ore exports −1% YoY Q1 2026; potential Vale capacity growth |
Australia → China, iron ore | Growing modestly, access constrained | Australian volumes +4% YoY Q1 2026; Port Hedland access lost for Himalaya fleet late 2025 |
Atlantic overall | Tight | Management describes a "structurally short Atlantic" supporting rates |
Valuation Snapshot
| Metric | Value | Source |
|---|---|---|
Last reference close | 17.92 (Oct 9, 2026); 17.88 (Oct 13, 2026) | AAII |
52-week range | 7.37 – 19.55 | Yahoo Finance |
Price at start of 2026 | 9.11 | MarketBeat |
YTD 2026 price change | ~+97% | MarketBeat |
1-year total return | ~+159% to +160% | Yahoo Finance; TheStreet |
Since NYSE IPO (USD 5.80, Mar 2023) | ~+209% price only (calc.) | IPO price per Euronext release |
3-year return | Not compiled (Oct 2023 reference price not located) | — |
5-year return | Not applicable (NYSE listing only since Mar 2023) | — |
Market capitalization (USD Mn) | 845 | Price × shares |
Enterprise value (USD Mn) | ~1,498 | Mkt cap + ~688 leaseback debt (Q2 2026) − 34.8 cash |
TTM revenue (USD Mn) | 167.3 | Q3 2025 – Q2 2026 |
TTM EBITDA (USD Mn) | 131.5 | Q3 2025 – Q2 2026 |
TTM net income (USD Mn) | 52.6 | Q3 2025 – Q2 2026 |
P/E TTM (x) | ~16 | Consistent with aggregator 15.8–16.5x (EPS TTM USD 1.12–1.13) |
EV/EBITDA TTM (x) | ~11.4 | — |
EV/Sales TTM (x) | ~9.0 | — |
P/B (x) | ~5.4 | Equity USD 155.8 M at Mar 31, 2026 (book value understates vessel market values) |
Forward distribution yield | ~18–19% | September 2026 distribution USD 0.28 annualized (USD 3.36) |
Capital Markets
| Item | Detail |
|---|---|
Consensus rating | "Buy" (MarketBeat, October 2026) |
Mean 1-year target | USD 16.90 (Yahoo Finance) — below current price |
Recent rating action | Clarksons upgraded to Buy (Aug 20, 2026, per MarketBeat) |
Q2 2026 vs consensus | EPS USD 0.52 vs USD 0.54 estimate; revenue USD 53 M vs ~USD 52.8 M estimate (AllInvestView) |
Buyback authorization | None disclosed |
Credit ratings (Moody's / S&P / Fitch) | Not rated (no public debt) |
Debt instruments | Sale-and-leaseback bareboat charters with AVIC, CCBFL, Jiangsu (USD 758.4 M originally); Drew RCF USD 10 M |
Outstanding leaseback balance | ~USD 700 M (Dec 2025); ~USD 694 M (Mar 2026); ~USD 688 M (Jun 2026) |
Annual lease payments | ~USD 72.6 M (principal + interest), per 20-F |
Distribution per Share by Period
| Period | Distribution per share (USD) | Source |
|---|---|---|
Oct 2025 | 0.07 | Q4 2025 release |
Nov 2025 | 0.10 | Q4 2025 release |
Dec 2025 | 0.13 | Q4 2025 release |
Q1 2026 total (Jan–Mar) | 0.18 | Q1 2026 call |
Apr 2026 | 0.15 | Q1/Q2 2026 releases |
May 2026 | 0.22 | Q2 2026 release |
Jun 2026 | 0.22 | Q2 2026 release |
Jul 2026 | 0.22 | Q2 2026 release |
Aug 2026 | 0.25 | August commercial update |
Sep 2026 | 0.28 | September commercial update |
Per-Share Data and Capital Markets Data
| Metric | FY2024 | FY2025 |
|---|---|---|
Sum of monthly NOK amounts by ex-date (NOK per share) | 5.13 | 5.78 |
Distributions paid in cash (USD Mn) | — | 26.9 |
Analyst Conclusions
Management guidance and commentary
Himalaya provides no numeric earnings guidance. Management expects a strong H2 2026, kept 10 of 12 ships exposed to the spot market as of August 2026, and judged it too early to lock in Q1 2027 coverage with the Q1 2027 forward at ~USD 25,500/day and calendar 2027 at ~USD 29,500/day. Two vessels are fixed at ~USD 51,200/day through December 31, 2026. Monthly TCE for Q3 2026 was USD 51,200 (July), USD 57,700 (August) and USD 65,800 (September), a simple average of ~USD 58,200/day (calc.) versus USD 50,600/day in Q2 2026, implying Q3 2026 (reporting Nov 11, 2026) should be the strongest quarter in the company's history.
Consensus expectations
The mean target of USD 16.90 sits below the current price, suggesting the sell-side has not fully re-marked for the Q3 rate spike or views current levels as cyclical peak.
Bull case
| # | Argument | Grounding |
|---|---|---|
| B1 | Earnings power at current rates is far above the market's mid-cycle assumptions | Q3 2026 TCE ~USD 58,200/day vs breakeven ~USD 17,300/day; Q2 2026 EPS USD 0.52 at USD 50,600/day |
| B2 | Structural Capesize tightness persists into 2027–2028 | Order book ~14%, shipyards −60% vs 2008, ~30% of fleet >20 years by 2030, Simandou/bauxite ton-mile growth |
| B3 | Distribution yield and deleveraging compound returns | Forward yield ~18–19%; leaseback principal falling ~USD 6–7 M/quarter; vessel values high |
Bear case
| # | Argument | Grounding |
|---|---|---|
| R1 | Freight mean-reversion against a leveraged balance sheet | FFA 2027 ~USD 29,500/day and Q1 2027 ~USD 25,500/day — well below Q3 2026 levels; FY2025 EBIT/interest only 1.33x |
| R2 | Chinese-built-ship policy and port-access risks | Section 301 fee suspension expires ~Nov 10, 2026; Port Hedland exclusion |
| R3 | Governance and structure discount | ~25% sponsor control; contracted, shared management; Chinese lessor hell-and-high-water obligations and restricted subsidiary cash |
Catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable |
|---|---|
| Monthly | TCE updates and distribution declarations (October 2026 update due mid-November) |
| Nov 10, 2026 | Expiry of the one-year U.S.–China port fee suspension — renewal or reinstatement |
| Nov 11, 2026 | Q3 2026 results — likely record |
| Q4 2026 – Q1 2027 | Decision on fixing Q1 2027 coverage; seasonal Chinese New Year weakness |
| 2026–2027 | Charter renewals (Mount Denali charter runs to Dec 31, 2026 with evergreen structure) |
| 2026–2027 | Any vessel modification to regain Port Hedland access |
| Feb 11, 2027 | Q4/FY2026 results |
| Ongoing | Simandou ramp, Guinea bauxite volumes, China steel output, drydock congestion, vessel values, any fleet expansion or refinancing of leasebacks |
Concluding analyst verdict
Himalaya Shipping has executed its founding thesis with unusual precision: it ordered twelve top-specification dual-fuel Newcastlemaxes in 2021, took delivery on schedule between March 2023 and June 2024, listed in New York, and since then has run a low-overhead, high-payout model whose economics are now being tested in a genuinely strong Capesize market. The numbers in 2026 are compelling: H1 2026 net income of USD 29.6 million already exceeds all of FY2025, Q3 TCE is tracking near USD 58,000/day, and the September distribution of USD 0.28 annualizes to an 18–19% yield. Management's claimed earnings premium to the Baltic index appears credible on the reported data (Q2 2026 TCE USD 50,600/day against a Baltic 5TC 180 average of USD 36,303/day).
The counterweights are structural rather than operational. Leverage is high (62% LTV and ~USD 688 million of leaseback debt against ~USD 156–162 million of book equity), interest consumes roughly half of mid-cycle EBITDA, and the company's China-built, two-auxiliary-engine fleet carries specific policy and port-access risks that peers with older Japanese or Korean tonnage do not. The equity has more than doubled in a year and trades above the mean sell-side target, at ~11x trailing EV/EBITDA and roughly 5x book, so much of the cyclical upswing is in the price. The forward curve for 2027 sits roughly half of September 2026 spot earnings.
Our synthesis: HSHP is a high-quality, transparent, but high-beta instrument on Capesize freight. Fundamental momentum into the November 11 results is strong; the risk/reward from here hinges on whether 2027 rates hold well above the current forward curve and on the outcome of the U.S.–China port-fee suspension expiring around November 10, 2026.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Prior roles / background | Education / age | Compensation |
|---|---|---|---|---|---|
Lars-Christian Svensen | Contracted Chief Executive Officer | CEO since Apr 1, 2025; CCO Sep 1, 2024 – Mar 31, 2025 | CCO then CEO, Golden Ocean Management AS (2020–2024); Western Bulk 2009–2020 (Head of Arabian Gulf in Singapore, President in Seattle, SVP in Oslo); Project Analyst, Petredec (Singapore) 2008–09; shipbroker, Cmarine Services 2007–08. Also CEO of 2020 Bulkers Ltd. | Age ~38 (Simply Wall St); education not disclosed in sources reviewed | Not individually disclosed (paid via management agreement) |
Vidar Hasund | Contracted Chief Financial Officer | Since Apr 1, 2025 | CFO of 2020 Bulkers Ltd. | — | Not individually disclosed |
Christian Dahll | Contracted Chief Operating Officer | ~2024 onward (per Simply Wall St) | — | — | Not individually disclosed |
Herman Billung | Senior Advisor to the Board (former Contracted CEO, inception – Mar 31, 2025) | Stepped down at retirement age 67 | Long-time CEO of 2020 Bulkers and Himalaya | Age 67 at 2025 transition | — |
“—” = not publicly disclosed.
Board of Directors
| Director | Role | Background (as available) | Notes |
|---|---|---|---|
Bjørn Isaksen | Chairman | Background not detailed in sources reviewed | Exercised 150,000 options at USD 6.70 (Apr 9, 2026); sold 300,000 shares to Drew at NOK 127.96; holds 300,000 shares plus 200,000 under forward purchase agreement with Drew |
Carl E. Steen | Director | Also a long-standing director of Golar LNG (appointed January 2015) | Re-elected 2024, 2025, 2026 |
Jehan Mawjee | Director | Bermuda-based director (background not detailed in sources reviewed) | Re-elected 2024–2026 |
Mi Hong Yoon | Director and company contact / secretary | Bermuda corporate administration professional | Company contact person on 20-F |
Alexandra Kate Blankenship | Director | — | Elected May 21, 2025 |
Georgina E. Sousa | Former director | — | Retired May 21, 2025 |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
Sep 1, 2024 | Svensen appointed CCO | Succession planning for Billung's retirement |
Apr 1, 2025 | Svensen CEO; Hasund CFO; Billung to Senior Advisor | Planned six-month handover |
May 21, 2025 | Blankenship joins, Sousa retires | Board refresh |
Major Shareholders
| Holder | Shares | Stake (%) | Source / date |
|---|---|---|---|
Drew Holdings Ltd. (Tor Olav Trøim / Drew Trust) | 11,790,000 | 24.99 | Company shareholding notification, Sep 2026 |
Tor Olav Trøim (aggregate, per aggregator) | 13,590,549 | 29.1 | Simply Wall St (date of snapshot uncertain; may include forward/related holdings) |
FMR LLC (Fidelity) | 2,032,642 | 4.36 | Simply Wall St |
Affinity Shipholdings I LLP | 1,902,318 | 4.08 | Simply Wall St |
Hosking Partners LLP | 1,894,425 | 4.06 | Simply Wall St |
BlackRock, Inc. | 1,732,615 | 3.71 | Simply Wall St |
Global Value Investment Corp. | 718,609 | 1.54 | Simply Wall St |
Bjørn Isaksen (Chairman) | 450,000 → 300,000 direct plus 200,000 forward | ~1.0 | Simply Wall St; Apr 9, 2026 notification |
State Street Global Advisors | 398,235 | 0.85 | Simply Wall St |
JPMorgan Chase & Co. | 329,323 | 0.71 | Simply Wall St |
Geode Capital Management | 327,419 | 0.70 | Simply Wall St |
The Goldman Sachs Group | 239,742 | 0.51 | Simply Wall St |
Competitive Landscape
Key Competitors
| Competitor | Listing | Positioning vs Himalaya | Verified data point |
|---|---|---|---|
Seanergy Maritime Holdings | NASDAQ: SHIP | Pure-play Capesize, older fleet, index-linked strategy with FFA hedging, fleet renewal toward Capesize/Newcastlemax | FY2025 net revenue USD 158.1 M; net income USD 21.2 M; adj. EBITDA USD 81.7 M; FY2025 TCE ~USD 20,937/day; LTV ~43% |
CMB.TECH (incl. Bocimar dry bulk) | NYSE / Euronext Brussels / Oslo: CMBT | Diversified (tankers, dry bulk, containers, chemicals) with large Newcastlemax/Capesize fleet and ammonia-fuel newbuild program; absorbed Golden Ocean in 2025 (background knowledge) | FY2025 profit USD 139.1 M; contract backlog USD 3.05 B; Q4 2025 Newcastlemax spot avg USD 27,614/day |
Golden Ocean Group | Formerly NASDAQ/Oslo: GOGL (merged into CMB.TECH, 2025 — background knowledge) | Historically largest listed Capesize owner; Svensen's former employer | Standalone data no longer reported |
Star Bulk Carriers | NASDAQ: SBLK | Diversified large-fleet dry bulk owner with Capesize/Newcastlemax exposure | — |
Genco Shipping & Trading | NYSE: GNK | U.S.-listed diversified dry bulk with major-bulk (Capesize) segment | — |
Safe Bulkers Investments | NYSE: SB | Diversified dry bulk, newbuild-heavy, with Capesizes | — |
Diana Shipping | NYSE: DSX | Diversified dry bulk incl. Newcastlemax/Capesize, period-charter model | — |
C Transport Maritime / Bocimar / Berge Bulk / COSCO Bulk | Private / state-owned | Large Capesize/VLOC operators competing for same cargoes | Not publicly comparable |
2020 Bulkers Ltd. | Oslo: 2020 | Sister Trøim-group Newcastlemax owner; sold its entire fleet in 2025–2026 | Exited ship ownership (20-F FY2025) |
Peer Comparison FY2025
| Metric | Himalaya Shipping | Seanergy Maritime | CMB.TECH |
|---|---|---|---|
Revenue (USD Mn) | 131.9 | 158.1 | — |
Net income (USD Mn) | 17.7 | 21.2 | 139.1 |
EBITDA (USD Mn) | 97.4 | 81.7 | — |
EBITDA margin (%) | 73.8 | 51.7 | — |
Net margin (%) | 13.4 | 13.4 | — |
Average TCE (USD per day) | — | 20,937 | — |
R&D intensity (%) | 0 | — | — |
LTV (%) | 62 | 43 | — |
Competitive Advantages & Vulnerabilities
| Advantages | Vulnerabilities |
|---|---|
Youngest homogeneous dual-fuel Newcastlemax fleet; claimed 48% earnings premium to BCI since inception | Leverage: ~62% LTV, ~USD 50 M annual interest; thin coverage at mid-cycle |
Very low G&A (~USD 5 M) and transparent model | Single asset class, single segment — no diversification |
Scrubber + LNG benefit sharing captures fuel spreads | Chinese-built fleet exposed to U.S. Section 301 port fees (suspended to ~Nov 2026) |
Index-linked contracts with conversion options give flexible upside capture | Port Hedland exclusion (auxiliary engine requirement) |
Strong sponsor (Trøim/Drew) with RCF backstop | Dependence on contracted management shared with other entities; key-person concentration |
Shipyard capacity constraints limit new supply (order book ~14% of fleet) | Leaseback structures restrict subsidiary distributions (minimum cash, three months' hire) |
