Himalaya Shipping Ltd. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Himalaya Shipping reported a net profit of $24.6 million and EBITDA of $44 million for Q2 2026.
- Time charter equivalent earnings for the quarter were approximately $50,600 per day, up from $28,400 in Q2 2025.
- Operating revenues were $53.7 million in Q2 2026, compared to $29.9 million in Q2 2025.
- Operating profit was $36.7 million, up from $13.6 million in Q2 2025.
- Earnings per share were $0.52 in Q2 2026 versus $0.02 in Q2 2025.
- Vessel operating expenses were $7.1 million, unchanged from the prior year, with average OpEx per day per vessel at $6,500.
- General and administrative expenses increased to $1.9 million due to consolidation of Peak Maritime Management.
- Interest expenses decreased by $0.4 million due to lower average loan principal from repayments.
- Cash and cash equivalents were $34.8 million at quarter end, with sale leaseback financing outstanding at approximately $688 million, down from $694 million at Q1 end.
- Cash flow from operations was $34.2 million, compared to $8.3 million in Q2 2025.
- Total cash distributions for April, May, and June 2026 were $0.59 per share.
- Subsequent to the quarter, July 2026 time charter equivalent earnings were about $51,200 per day, with a declared cash distribution of $0.22 for the month.
- New time charter agreements were entered for Mount MI (12-14 months) and Mount Aconcagua (16-18 months), both at significant premiums to the Baltic Capesize index.
- Several vessels were converted from index linked to fixed rate contracts at average rates of $56,500 and $51,200 per day for specified periods.
- The fleet consists of 12 modern Newcastle Max vessels with dual fuel LNG, ranking in the top 1% emission rating for large bulk carriers.
- The company has paid 31 consecutive monthly dividends, with Q2 2026 dividends totaling $0.59.
- Ten out of 12 ships are exposed to the spot market to capture expected strong market conditions in the second half of 2026.
- Himalaya Shipping's fleet has traded at an average 48% premium to the Baltic Capesize index and 25% premium to peers over the last three years.
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Transcript
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Welcome to Himalaya Shipping Q2 2026 conference call. For the first part of this call, all participants will be in a listen only mode. Afterwards, there will be a question and answer session. To ask a question during the Q&A, please press 5 star on your telephone keypad. To withdraw your question, you may do so by pressing 5 star again. This call is being recorded. I will now hand it over to CEO, Lars Svensen.
Please begin. Thank you, operator.
Welcome to the Q2 2026 conference call for Himalaya Shipping. My name is Lars Svensen, and I will be joined here today by our CFO, Vidar Hasund. Before we start the presentation, I would like to remind you that we will be discussing matters that are forward-looking. These assumptions reflect the company's current views regarding future events and are subject to risks and uncertainties. Actual results may differ materially from those anticipated. I will now continue with the highlights of the quarter. We reported a net profit of $24.6 million and an EBITDA of $44 million. The time charter equivalent earnings for the quarter was approximately $50,600 per day. We entered into a new index time charter agreement for the Mount Emai for a period of 12 to 14 months at a significant premium to the prevailing index.
We also converted four of our vessels from index to fixed rate contracts for the month of June at an average of $56,500 per day. Cash distributions for the quarter totaled $0.59. In subsequent events, we achieved time charter equivalent earnings for July 2026 of about $51,200 per day, and we declared a cash distribution of $0.22 for the month. We also entered into a new time charter agreement for the Mount Aconcagua for a period of 16 to 18 months at an index-linked rate, also at a significant premium to the Baltic Capesize Index. Lastly, we converted two of our vessels from index links to fixed rates from 1st of August until 31st of December at an average rate of $51,200 per day. With that, I will now pass the word to Vidar.
Thank you, Lars Svensen. Himalaya Shipping reports a net profit of $24.6 million in earnings per share of $0.52 for Q2 2026 compared to a net profit of $1.1 million in earnings per share of $0.02 for Q2 2025. Operating profit was $36.7 million and EBITDA was $44 million for the quarter, compared to operating profit of $13.6 million and EBITDA of $20.9 million for the same period last year. Operating revenues were $53.7 million for Q2 2026, compared to $29.9 million for the same quarter in 2025. The increase in revenues is due to higher time charter equivalent earnings achieved, which is up from $28,400 in Q2 2025 to $50,600 in Q2 2026. Vessel operating expenses were $7.1 million in Q2 2026 and unchanged from the same period last year. The average OPEX per day per vessel was $6,500.
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