Himalaya Shipping Ltd.

Himalaya Shipping reported Q2 2026 net profit of $24.6 million and EPS of $0.52, compared with net profit of $1.1 million and EPS of $0.02 in Q2 2025. Operating revenues were $53.7 million versus $29.9 million last year; operating profit was $36.7 million versus $13.6 million; and EBITDA was $44 million versus $20.9 million. Time charter equivalent earnings improved to about $50,600 per day from $28,400 per day in Q2 2025. Vessel operating expenses were $7.1 million, unchanged year over year, and interest expense was $12.4 million, down $0.4 million year over year. Cash and cash equivalents were $34.8 million, with a minimum cash requirement of $12.3 million, and the sale-leaseback balance was about $688 million, down from about $694 million at the end of Q1. The company declared total cash distributions of $0.59 per share for April through June; after quarter-end, it reported July TCE of about $51,200 per day and declared a $0.22 cash distribution for that month. No formal next-quarter or full-year financial guidance was provided beyond commentary that the second half of 2026 should remain strong.

Lars-Christian Svensen emphasized that the company is benefiting from a structurally tighter Capesize/Newcastlemax market and from its strategy of keeping most vessels on index-linked contracts with optionality to switch to fixed rates. He highlighted that 10 of 12 ships are exposed to the spot market and said the company believes the second half of the year has more upside. His tone was constructive and confident, but he also said it is still too early to lock in first-quarter 2027 coverage.

Vidar Hasund focused on the quarter’s financial step-up: revenue of $53.7 million, EBITDA of $44 million, operating profit of $36.7 million, and net profit of $24.6 million. He noted that TCE rose to about $50,600 per day, vessel opex stayed flat at $7.1 million, and interest expense eased to $12.4 million due to lower average loan principal from repayments. He also pointed to liquidity of $34.8 million, a minimum cash requirement of $12.3 million, and a sale-leaseback balance of about $688 million, with quarterly cash distributions totaling $0.59 per share.

Analysts asked about first-quarter 2027 exposure and whether the company should start hedging given Simandou, coal seasonality, and potential Brazil weather effects. Management replied that Q1 is becoming more correlated with the rest of the year, the 2027 curve at around $29,500 versus Q1 at $25,500 does not look wide enough to rush into coverage, and they prefer to wait because the second half still has more upside. In a second question, management was asked why the secondhand asset market has been quiet despite strong spot rates; they answered that prices are flat but still high, and said higher freight rates would be needed for the next meaningful step up in asset values.