Himalaya Shipping

Earnings Release • Feb 15, 2024

Himalaya Shipping Limited Announces its Preliminary Results for the Quarter Ended December 31, 2023

Himalaya Shipping Limited Announces its Preliminary Results for the Quarter Ended December 31, 2023

Hamilton, Bermuda, February 15, 2024

Himalaya Shipping Limited ("Himalaya," "Himalaya Shipping" or the "Company")

announces preliminary unaudited results for the quarter ended December 31, 2023.

Highlights for the quarter ended December 31, 2023

- Total operating revenues of $18.3 million, which is an average time charter

equivalent ("TCE") earnings of approximately $34,400 per day, gross.  Average

Baltic 5TC Capesize Index was US$28,128 per day.

- Net income of $4.6 million and EBITDA of $13.4 million for the quarter ended

December 31, 2023.

- Secured time charter agreements for the three remaining uncontracted vessels

for 24 months' time charters with an evergreen structure to commence in the

first half of 2024, at an index-linked rate reflecting a significant premium to

the Baltic 5TC index (BCI). With these charters, the Company has secured

employment of the entire fleet.

- Extended index linked time charters for six of our vessels by an additional

year, until the end of 2026.

- Converted index linked charters to fixed rate charter for five vessels for

varying periods from December 1, 2023 to March 31, 2024 at the following average

rates: $33,417 for five vessels in December 2023; $25,465 for five vessels in

January 2024; $23,508 for three vessels in February 2024; and $23,508 for three

vessels in March 2024. Two vessels will earn a fixed scrubber premium of $2,500

per day from December 1, 2023, to March 31, 2024. The remaining three vessels

will continue to earn scrubber premium according to the terms of the existing

time charter agreements.

- Settlement of installment payments on three of our newbuilding vessels

totaling $20.7 million financed by pre-delivery financing with CCB Financial

Leasing Company Limited ("CCBFL").

- Completion of the private placement of new shares at a price of $5.64 per

share, raising net proceeds of approximately $17.0 million.

Subsequent events

- Successful delivery and commencement of operations of three additional 210,000

dwt Newcastlemax dual fuel newbuildings ordered from New Times Shipyard ("NTS"),

resulting in a total delivered fleet of nine vessels, with three additional

vessels to be delivered in 2024.

- Execution of financing on the three delivered vessels by sale leaseback

facilities provided by Jiangsu Financial Leasing Co. Limited ("Jiangsu") and

CCBFL, totaling $98.6 million and $49.3 million, respectively.

- Conversion of index linked charters on Mount Bandeira and Mount Hua to fixed

charters from February 1, 2024 to June 30, 2024 at an average rate of $26,866.

They will continue to earn scrubber premium according to the terms of their

existing time charter agreements.

- Declaration of cash distribution for January 2024 of $0.01 per common share.

Contracted CEO, Herman Billung commented:

"We currently have nine vessels sailing, with the remaining three vessels

expected to be delivered shortly. With this, the Company has developed into a

fully operating company, offering one of the most modern and fuel-efficient

fleets in the dry bulk industry. All vessels have been employed by reputable

counterparties, with the index linked charters earning on average a premium of

42.25% to the Baltic 5TC index. We believe this is one of the highest premiums

in the industry, showing the attractiveness of our fleet.

The strategy of Himalaya Shipping remains consistent with a focus on capital

discipline, and returning most of the cash generated after debt service to our

shareholders. Our simple structure, low G&A costs and the right financing should

position the Company to deliver solid returns."

Questions should be directed to:

Herman Billung: Contracted CEO, +4791831590