Himalaya Shipping (NYSE:HSHP) reported third-quarter net profit of $33.3 million, more than triple its year-earlier result, as higher charter earnings lifted revenue and cash flow.
The dry bulk shipping company earned $0.71 per share, compared with $9.5 million, or $0.21 per share, in the third quarter of 2025, Chief Financial Officer Vidar Hasund said. Operating revenue rose to $62.6 million from $37.9 million, driven by an increase in average time charter equivalent earnings to approximately $58,400 per day from $35,600.
Operating profit climbed to $45.4 million from $22 million, while EBITDA rose to $52.7 million from $29.3 million. Cash flow from operations was $43.8 million, compared with $18.3 million a year earlier.
Charter Rates and Shareholder Distributions
During the quarter, Himalaya converted four vessels from index-linked contracts to fixed rates. Two were fixed at $51,200 per day from Aug. 1 through Dec. 31, 2026, and two at $53,000 per day from Sept. 1, 2026, through March 31, 2027, Chief Executive Officer Lars-Christian Svensen said.
The company also agreed to a 16- to 18-month index-linked charter for Mount Aconcagua at what Svensen described as a significant premium to the Baltic Capesize Index. After the quarter, it entered new index-linked time charter agreements for two more vessels, with a minimum period to Oct. 1, 2027, and a three-year evergreen structure thereafter.
Himalaya declared cash distributions totaling $0.75 per share for July, August and September. For October, the company reported time charter equivalent earnings of approximately $50,900 per day and declared a $0.20 dividend for the month.
Svensen said eight of the company’s 12 vessels were exposed to the spot market. Asked about first-quarter coverage, he said two vessels would be fixed at well over $50,000 per day and that management saw no immediate need to add more fixed-rate cover, although it would consider doing so if it saw value on the forward curve.
Costs and Financing
Vessel operating expenses increased by $0.5 million year over year to $7.5 million, reflecting greater requirements for stores, spares and consumables, as well as other cost increases, Hasund said. Average daily operating expenses were $6,800 per vessel. General and administrative expenses rose to $1.5 million from $1.1 million, reflecting the consolidation of Peak Maritime Management AS.
Himalaya ended the quarter with $39.7 million in cash and cash equivalents, including a $12.3 million minimum cash requirement under its sale-leaseback financing. The outstanding financing balance fell to approximately $681 million from about $688 million at the end of the second quarter following scheduled repayments.
Asked about refinancing, Hasund said the company’s loan-to-value ratio was approximately 57% based on broker valuations, and that its fixed bareboat rate implied an interest rate just below 7%. He said the company evaluates financing options regularly but is happy with its existing arrangements, adding that a refinancing would not typically offer as favorable a profile.
Market Outlook
Svensen said strong Chinese seaborne iron ore imports and growing bauxite and iron ore flows from Guinea were supporting the Capesize and Newcastlemax markets. He said bauxite accounted for 17% of cargo transported on those vessel types, while third-quarter ton-mile demand increased 1.6% year over year.
The CEO said Guinea’s Simandou iron ore mine was scheduled to export 25 million metric tons by the end of 2026, with 60 million expected in 2027 and 90 million in 2028. He described the project as a long-term source of demand for seaborne transport and said more than 90% of its current volumes were going to China.
Svensen also pointed to constraints on vessel supply, saying the Capesize order book represented 18% of the existing fleet and that Newcastlemax newbuildings at reputable shipyards were available no earlier than 2029. He estimated that around 20% of the combined Capesize and Newcastlemax fleet would compete for dry-dock space in 2027 as vessels undergo required surveys.
About Himalaya Shipping (NYSE:HSHP)
Himalaya Shipping Ltd. is a dry bulk shipping company incorporated in Bermuda. It owns and operates Newcastlemax vessels, large bulk carriers designed to transport commodities such as iron ore, coal and grain. The company’s fleet is equipped with dual-fuel engines that can run on liquefied natural gas as well as conventional marine fuel. Its vessels serve international bulk shipping routes, carrying cargo between major commodity-producing and consuming regions. Himalaya Shipping began building its fleet in the early 2020s and became a publicly traded company in 2023.
