Himalaya Shipping

Earnings Release • Nov 7, 2024

Himalaya Shipping Ltd. (HSHP) Announces its Preliminary Results for the Three and Nine Months Ended September 30, 2024

Himalaya Shipping Ltd. (HSHP) Announces its Preliminary Results for the Three and Nine Months Ended September 30, 2024

Hamilton, Bermuda, November 7, 2024

Himalaya Shipping Ltd. ("Himalaya," "Himalaya Shipping" or the "Company")

announces preliminary unaudited results for the three and nine months ended

September 30, 2024.

Highlights for the Third Quarter of 2024

.          Total operating revenues of $39.2 million, which is an average time

charter equivalent ("TCE") earnings of approximately $36,800 per day, gross[1].

Average Baltic 5TC Capesize Index was $24,909 per day.

.          Net income of $10.7 million and Adjusted EBITDA[2] of $31.0 million

for the third quarter of 2024.

.          Conversion of index linked charters on Mount Blanc and Mount Neblina

to fixed charters from July 1, 2024 to July 31, 2024 and on Mount Blanc, Mount

Neblina and Mount Hua from September 1, 2024 to September 30, 2024.

.          Acquisition of 40% of the shares of 2020 Bulkers Management AS, the

company providing key management services to Himalaya Shipping, to fully align

the management functions with Himalaya Shipping.

.          Payment of cash distributions for May, June, July and August 2024 of

$0.04, $0.05, $0.06 and $0.07 per common share, respectively.

Subsequent Events

.         Conversion of Mount Etna back to index linked rates from October 1,

.          Declaration and payment of cash distribution for September 2024 of

$0.10 per common share in October 2024. Declaration of cash distribution for

October 2024 of $0.04 per common share in November 2024.

.          Execution of an addendum to the Drew revolving credit facility of up

to $10 million, extending the timeframe to drawdown from the facility to

December 31, 2025 and the latest repayment date to December 31, 2026.

Contracted CEO, Herman Billung commented:

"2024 started strong with the Baltic Capesize index at $23,970 per day for the

first 9 months. This is almost double the level from 2023 at $12,628 per day.

Himalaya has had most of its fleet operating in this improving spot market, with

11 of 12 ships currently on index related charters. Due to Himalaya's superior

fleet profile, we are earning on average 42% premium to the Baltic Capesize

index when trading in the spot market.

In the most recent weeks, the market has experienced a counter seasonal set

back. This was driven by a lower Panamax sentiment attacking traditional

Capesize coal trades, and a fiscal stimulus package from China that disappointed

some market watchers. However, with limited supply of large bulk carriers

entering the marketplace in the coming years and an aging fleet, we expect

utilization and rates to improve going forward. Ton mile demand is up by 5.4% in

the first three quarters of 2024 compared to the same period last year. We

expect this to continue, driven by more iron ore production in the Atlantic

Basin, with 120 mt of new production capacity coming in Guinea and 50 mt in

Brazil.

The Company has continued paying monthly distributions to its shareholders. In

aggregate, we have declared cash distributions of $0.43 per share for the nine

months ended September 30, 2024. The cash distributions will fluctuate with dry

bulk market developments. Substantially all earnings above cash break-even of

approximately $16,000 per day (Capesize equivalent rate) are expected to be paid

back to shareholders."

[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 TCE earnings, gross and Adjusted EBITDA.

Average 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.

[2] Adjusted 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

measures prepared in accordance with US GAAP.