Himalaya Shipping Ltd. (HSHIP) - Time charters for two vessels

Hamilton, Bermuda - 7 October 2022

Himalaya Shipping is pleased to announce it has entered into time charter agreements for two vessels with one of the major commodity companies, a company also committed to energy transition.

The vessels will commence a 32-38 month time charter, plus option for 11-13 month, upon delivery from New Times Shipyard and will earn an index linked rate, reflecting a significant premium to the Baltic 5TC index.

The time charters also include a profit sharing of any economic benefit derived from operating the vessel's scrubber or running on LNG, as well as certain rights to convert the time charters to fixed rates based on the prevailing FFA curve from time to time.

"The first charter agreements agreed on our vessels shows the attractiveness of our design and fuel consumption. The premium to the Baltic 5TC index we are earning is to our knowledge a new record for the class of vessels we own. Based on current Capesize spot index rate, the premium to index and the scrubber benefit, today the vessels are estimated to generate time charter equivalent earnings of approximately US$35,000. The Capesize equivalent cash breakeven is estimated at approximately US$14,000 per day when all vessels are delivered. We are in advanced discussions about securing further employment for our fleet." says Herman Billung, contracted CEO of Himalaya Shipping.

About Himalaya Shipping Ltd.: 
Himalaya Shipping Ltd. is an independent bulk carrier company, incorporated in Bermuda. Himalaya Shipping has ordered 12 LNG dual fuel Newcastlemax dry bulk carriers with delivery between Q2 2023 and Q4 2024. 

Himalaya Shipping Ltd. press release