6-K
Himalaya Shipping Ltd. (HSHP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2025
Commission File Number 001-41676
Himalaya Shipping Ltd.
(Exact name of Registrant as specified in its charter)
Not applicable
(Translation of Registrant’s name into English)
S. E. Pearman Building
2nd floor, 9 Par-la-Ville Road
Hamilton HM 11
Bermuda
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Exhibits.
| Exhibit | Description |
|---|---|
| 99.1 | Himalaya Shipping Ltd. Earnings Release for the Second Quarter of 2025 |
| 99.2 | Himalaya Shipping Ltd. Results Presentation for the Second Quarter of 2025 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Himalaya Shipping Ltd. | ||
|---|---|---|
| By: | /s/ Lars-Christian Svensen | |
| Name: | Lars-Christian Svensen | |
| Title: | Chief Executive Officer | |
| Date: August 8, 2025 |
Document
Himalaya Shipping Ltd. (HSHP) Announces its Preliminary Results for the Three and Six Months Ended June 30, 2025
Hamilton, Bermuda, August 8, 2025
Himalaya Shipping Ltd. (“Himalaya,” “Himalaya Shipping” or the “Company”) announces preliminary unaudited results for the three and six months ended June 30, 2025.
Highlights for the Second Quarter of 2025
•Net income of $1.1 million and EBITDA1 of $20.9 million for the quarter ended June 30, 2025.
•Achieved average daily time charter equivalent (“TCE”) earnings of approximately $28,400 per day, gross2.
•Commencement of Lars-Christian Svensen as contracted CEO and appointment of Vidar Hasund as contracted CFO on April 1, 2025.
•In April 2025, the Board approved a grant of 200,000 share options to key human resources.
•On June 3, 2025, the Company successfully completed the uplisting from Euronext Expand to Euronext Oslo Børs.
•Declared cash distributions of $0.025, $0.03 and $0.05 per common share for April, May and June 2025, respectively.
Subsequent events
•Converted the index-linked time charters for four vessels to fixed rate time charters at an average rate of approximately US$35,300 per day, gross, from August 1, 2025 to September 30, 2025.
•Achieved average daily TCE earnings for July 2025 of appproximately $32,700 per day, gross.
•Declared a cash distribution $0.04 per common share for July 2025.
Contracted CEO, Lars-Christian Svensen commented:
“During the second quarter of 2025, the Baltic Capesize Index (BCI) averaged $18,681 per day, while the Himalaya fleet achieved average TCE earnings of around $28,400 per day over the same period. This performance underscores the strong capabilities and potential of our vessels, as well as the solid commercial execution to date. Of our 12 vessels, 10 were active in the spot market, earning an average premium of 42.2% over the Baltic 5TC (BCI) index (excluding scrubber benefits).
In the second quarter of 2025, the Baltic 5TC Capesize index averaged $18,681 per day, compared to $22,665 during the same period in the previous year. Despite a slow start to the year, particularly due to two major typhoons that disrupted iron ore exports from Australia in February 2025, the market has since rebounded. This recovery has been driven by a 27% year-on-year increase in global bauxite shipments in the first half of 2025, totaling 126 million MT, along with a 4% increase in iron ore exports from Brazil, totaling 195 million MT. Broken down by the three big commodities, we experienced a ton mile development of 1.5% decrease in iron ore, a 14% decrease in coal, offset by a 27% increase in bauxite. With a low order book and the emergence of more tonne-mile intensive trades, such as the Simandou project in Guinea expected to commence in November 2025, we anticipate a well-balanced market and a strong foundation for a potentially prolonged upward cycle.
The market continues to face US tariffs and trade war uncertainties, however, these have not directly impacted the Capesize and Newcastlemax segments, with less than 2% of exports of the total large size drybulk trades affected and no material impact on imports.
1 The Company uses certain financial information calculated on a basis other than in accordance with accounting principles generally accepted in the United States (US GAAP) including average daily TCE earnings, gross and EBITDA. EBITDA as presented above represents our net income (loss) plus depreciation of vessels and equipment; total financial expenses, net; and income tax expense. Please refer to the appendix of this report for a reconciliation of this non-GAAP financial measure to the most directly comparable financial measure prepared in accordance with US GAAP.
2 Average daily TCE earnings, gross, as presented above, represents time charter revenues and voyage charter revenues adding back address commissions and divided by fleet operational days. Please refer to the appendix of this release for a reconciliation of this non-GAAP measure to the most directly comparable financial measures prepared in accordance with US GAAP.
The Company has maintained its strategy of making monthly distributions to its shareholders. Given the limited need for capital expenditures, we expect a significant portion of free cash flow to be paid to shareholders. On August 7, 2025, we declared a cash distribution of $0.04 per share. If our positive market outlook materializes, there may be a potential to increase distributions.”
Management discussion and analysis
Consolidated Statements of Operations
Three months ended June 30, 2025:
| (in $ millions) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change ($) | Change (%) | |
|---|---|---|---|---|---|
| Total operating revenues | 29.9 | 31.2 | (1.3) | (4) | % |
| Vessel operating expenses | (7.1) | (5.6) | (1.5) | 27 | % |
| Voyage expenses | (0.4) | (0.3) | (0.1) | 33 | % |
| General and administrative expenses | (1.5) | (1.3) | (0.2) | 15 | % |
| Depreciation | (7.3) | (6.5) | (0.8) | 12 | % |
| Total operating expenses | (16.3) | (13.7) | (2.6) | 19 | % |
| Operating income | 13.6 | 17.5 | (3.9) | (22) | % |
| Total financial expenses, net | (12.5) | (10.6) | (1.9) | 18 | % |
| Net income | 1.1 | 6.9 | (5.8) | (84) | % |
| EBITDA | 20.9 | 24.0 | (3.1) | (13) | % |
Total operating revenues for the three months ended June 30, 2025 were $29.9 million, a $1.3 million decrease compared to the three months ended June 30, 2024. The decrease is mainly a result of the lower average Baltic 5TC Capesize Index of $18,681/day in the three months ended June 30, 2025, compared to $22,665/day in the same period in 2024. Average TCE earnings, gross, decreased from $34,600/day in the three months ended June 30, 2024 to $28,400/day in the three months ended June 30, 2025. This decrease was partially offset by the increase in the number of operating days in the three months ended June 30, 2025 to 1,092 days from 935 days in the three months ended June 30, 2024, as a result of the delivery and commencement of operations of the final three of the 12 vessels in our fleet (which we refer to as “ our remaining three vessels”) partway through the three months ended June 30, 2024.
Vessel operating expenses for the three months ended June 30, 2025 was $7.1 million, a $1.5 million increase compared to the three months ended June 30, 2024. The increase is mainly a result of the delivery and commencement of operations of the remaining three vessels, Mount Denali, Mount Aconcagua and Mount Emai, on April 19, June 6 and June 13, 2024, respectively. The Company achieved average vessel operating cost per day3 of $6,500 for the three months ended June 30, 2025, compared to $6,000 in the three months ended June 30, 2024.
Depreciation for the three months ended June 30, 2025 was $7.3 million, a $0.8 million increase compared to the three months ended June 30, 2024. The increase is mainly a result of the delivery and commencement of operations of the remaining three vessels partway through the three months ended June 30, 2024.
3 Average vessel operating cost per day is calculated by dividing vessel operating expenses in the period by the number of calendar days in the period.
Total financial expenses for the three months ended June 30, 2025 was $12.5 million, a $1.9 million increase compared to the three months ended June 30, 2024. This is mainly due to the increase in interest expense as a result of the increase in outstanding debt following the delivery of the remaining three vessels partway through the three months ended June 30, 2024, and cessation of interest capitalization on assets ready for their intended use.
Six months ended June 30, 2025:
| (in $ thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change ($) | Change (%) | |
|---|---|---|---|---|---|
| Total operating revenues | 51.9 | 54.8 | (2.9) | (5) | % |
| Vessel operating expenses | (14.0) | (10.5) | (3.5) | 33 | % |
| Voyage expenses | (0.5) | (0.7) | 0.2 | (29) | % |
| General and administrative expenses | (2.6) | (2.7) | 0.1 | (4) | % |
| Depreciation | (14.6) | (11.9) | (2.7) | 23 | % |
| Total operating expenses | (31.7) | (25.8) | (5.9) | 23 | % |
| Operating income | 20.2 | 29.0 | (8.8) | (30) | % |
| Total financial expenses, net | (25.5) | (19.6) | (5.9) | 30 | % |
| Net income | (5.3) | 9.4 | (14.7) | (156) | % |
| EBITDA | 34.8 | 40.9 | (6.1) | (15) | % |
Total operating revenues for the six months ended June 30, 2025 were $51.9 million, a $2.9 million decrease compared to the six months ended June 30, 2024. The decrease is mainly a result of the lower Average Baltic 5TC Capesize Index of $15,794/day in the six months ended June 30, 2025 compared to $23,482/day in the same period in 2024. Average TCE earnings, gross decreased from $32,800/day in the six months ended June 30, 2024 to $24,800/day in the six months ended June 30, 2025. This decrease was partially offset by the increase in the number of operating days in the six months ended June 30, 2025 to 2,172 days from 1,733 days in the six months ended June 30, 2024.
Vessel operating expenses for the six months ended June 30, 2025 was $14.0 million, a $3.5 million increase compared to the six months ended June 30, 2024. The increase is mainly a result of the delivery and commencement of operations of the remaining six vessels in the six months ended June 30, 2024. The Company achieved average vessel operating cost per day of $6,400 for the six months ended June 30, 2025 compared to $6,100 in the six months ended June 30, 2024.
Depreciation for the six months ended June 30, 2025 was $14.6 million, a $2.7 million increase compared to the six months ended June 30, 2024. The increase is mainly a result of the delivery and commencement of operations of the remaining six vessels in the six months ended June 30, 2024.
Total financial expenses for the six months ended June 30, 2025 was $25.5 million, a $5.9 million increase compared to the six months ended June 30, 2024. This is mainly due to the increase in interest expense as a result of the increase in average balance of outstanding debt following the delivery of vessels in the six months ended June 30, 2024.
Consolidated Balance Sheets
Vessels and equipment as of June 30, 2025 was $838.4 million, a $14.6 million decrease compared to $853.0 million as of December 31, 2024. The decrease is due to vessel depreciation in the six months ended June 30, 2025.
Total debt as of June 30, 2025 was $701.2 million, a $12.7 million decrease compared to $713.9 million as of December 31, 2024. The decrease is primarily due to the repayments of principal on the sale and leaseback facilities of $14.0 million during the period, partly offset by amortization of deferred finance costs of $1.3 million.
Consolidated Statements of Cash Flows
Three months ended June 30, 2025
Net cash provided by operating activities was $8.3 million, compared to $17.6 million in the three months ended June 30, 2024. The decrease is primarily due to the decline in time charter revenues and associated cash receipts, an increase in vessel operating expenses and the timing of working capital movements. Included within net cash provided by operating activities in the three months ended June 30, 2025 are interest payments (net of capitalized interest) of $13.7 million compared to $9.6 million in the three months ended June 30, 2024.
Net cash used in investing activities was nil, compared to $159.4 million in the three months ended June 30, 2024, which consisted of installment payments and costs related to the delivery of Mount Denali, Mount Aconcagua and Mount Emai.
Net cash used in financing activities was $10.6 million, compared to $138.0 million net cash provided by financing activities in the three months ended June 30, 2024. Net cash used in financing activities in the three months ended June 30, 2025 primarily consisted of repayments on the sale and leaseback financings of $7.4 million and payments of cash distributions of $3.2 million. Net cash provided by financing activities in the three months ended June 30, 2024 primarily consisted of $147.7 million in draw downs under the sale and leaseback financing arrangements, partly offset by repayments on the sale and leaseback financings of $4.9 million, payment of deferred financing costs of $0.4 million and cash distributions of $4.4 million.
Six months ended June 30, 2025
Net cash provided by operating activities was $8.6 million, compared to $28.8 million in the six months ended June 30, 2024. The decrease is primarily due to the decline in time charter revenues and associated cash receipts, an increase in vessel operating expenses and the timing of working capital movements. Included within net cash provided by operating activities in the six months ended June 30, 2025 are interest payments (net of capitalized interest) of $26.2 million, compared to $15.2 million in the six months ended June 30, 2024.
Net cash used in investing activities was nil, compared to $313.2 million in the six months ended June 30, 2024, which consisted of installment payments and costs related to the delivery of Mount Bandeira, Mount Hua, Mount Elbrus, Mount Denali, Mount Aconcagua and Mount Emai.
Net cash used in financing activities was $3.3 million, compared to $280.8 million net cash provided by financing activities in the six months ended June 30, 2024. Net cash used in financing activities in the six months ended June 30, 2025 consisted of repayments on the sale and leaseback financings of $14.0 million and the revolving credit facility with Drew Holdings Ltd. (the “Drew facility”) of $6.0 million, and payments of cash distributions of $4.1 million, offset by net proceeds of $14.8 million from the private placement conducted in March 2025 and draw downs from the Drew facility of $6.0 million. Net cash provided by financing activities in the six months ended June 30, 2024 primarily consisted of $295.5 million drawn down from the sale and leaseback financing arrangements, slightly offset by repayments on the sale and leaseback financings of $8.3 million, payment of deferred financing costs of $1.6 million and payments of cash distributions of $4.8 million.
Liquidity and financing
The Company had cash and cash equivalents of $24.7 million as of June 30, 2025 and $10.0 million available to drawdown under the Drew Facility.
As of June 30, 2025, cash and cash equivalents included $12.3 million which the Company is required to maintain as minimum cash balance for all eight vessels under the sale and leaseback arrangements with CCB Financial Leasing Company Limited (“CCBFL”) and Jiangsu Financial Leasing Co. Ltd.
All of our vessels have been financed by Chinese leasing houses at a fixed bareboat rate with a maturity of seven years from the delivery of each vessel. This gives the Company a fixed financing cost for our vessels until the maturity of their respective leases.
Repayments on the financing for the installation of the scrubbers is expected to conclude by the first quarter of 2026. After repayment of the scrubber financing, the Company’s cash break-even will be reduced by approximately $800 per day. The Company's cash breakeven is currently $24,900 per day.
Commercial update
In the second quarter of 2025, the Company achieved average TCE earnings, gross of approximately $28,400 per day, including average daily scrubber benefits of approximately $1,200 per day. This is equivalent to a 52% premium to the Capesize index.
In addition, in the second quarter of 2025, the Company’s vessels trading on index-linked time charters earned approximately $27,700 per day, gross, including average daily scrubber benefits. Following the conversion of the index-linked time charters to fixed rate time charters for two vessels in the second quarter of 2025, the Company’s vessels trading on fixed rate time charters earned approximately $32,200 per day, gross, including average daily scrubber benefits.
The Baltic 5TC Capesize Index averaged $18,681 per day in the second quarter of 2025.
Fleet status
The table below sets forth information about our fleet and charters.
| Vessel name | Built | Type | 2026 | 2027 | 2028 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||
| Mount Norefjell | 2023 | DF Newcastlemax | 32,0001 | Index | |||||||||||||
| Mount Ita | 2023 | DF Newcastlemax | Index | ||||||||||||||
| Mount Etna | 2023 | DF Newcastlemax | 2 | Index3 | |||||||||||||
| Mount Blanc | 2023 | DF Newcastlemax | 2 | Index3 | |||||||||||||
| Mount Matterhorn | 2023 | DF Newcastlemax | Index | ||||||||||||||
| Mont Neblina | 2023 | DF Newcastlemax | 2 | Index3 | |||||||||||||
| Mount Bandeira | 2024 | DF Newcastlemax | Index3 | ||||||||||||||
| Mount Hua | 2024 | DF Newcastlemax | 31,5001 | Index3 | |||||||||||||
| Mount Elbrus | 2024 | DF Newcastlemax | Index | ||||||||||||||
| Mount Denali | 2024 | DF Newcastlemax | 2 | Index3 | |||||||||||||
| Mount Aconcagua | 2024 | DF Newcastlemax | Index | ||||||||||||||
| Mount Emai | 2024 | DF Newcastlemax | Index |
All values are in US Dollars.
| Option | Available |
|---|
1 These vessels will continue to earn scrubber premium according to the terms of the existing time charter agreements
2 Index
3 Evergreen structure
4 $35,350 plus scrubber premium according to the terms of the existing time charter agreement
5 $35,145 plus scrubber premium according to the terms of the existing time charter agreement
6 $35,392 plus scrubber premium according to the terms of the existing time charter agreement
Market commentary
The Baltic 5TC Capesize index as of August 7, 2025 stands at $26,576 having averaged $17,079 year to date, a decrease from $23,666 during the same period in 2024.
Demand in the first half of 2025 was driven by strong shipmen ts of iron ore from Brazil and global bauxite exports, with volumes increasing by 7 million MT and 27 million MT year-on-year, respectively.
Overall, Capesize shipments remain flat year-on-year in the second quarter 2025, compared to the same period last year.
Imports to China continue to drive the Capesize market. Chinese imports on Capesize tonnage were 355 million MT in the second quarter of 2025, up by 3.5% compared to the 343 million MT during the same period in 2024.
Growth in vessel supply for large bulk carriers is still expected to be moderate in the coming years with expected Capesize deliveries of 4 million dwt (or 1 % of existing fleet) for the remainder of 2025, 11 million dwt (or 2.7 % of existing fleet) in 2026, 9.7 million dwt (or 2.4% of existing fleet) for 2027 and 6.4 million dwt (or 1.6% of existing fleet) after 2027.
Following a few recent domestic Chinese orders for Newcastlemax vessels, available newbuilding berths with delivery before the second half of 2028 are expected to be limited. Current newbuilding costs for a dual-fuel Newcastlemax in China are believed to be approximately $90 million.
We see potential upside to the future development in the Capesize market from current levels in the event of continued strong and increased exports of iron ore and bauxite from Brazil and West Africa. The Simandou project in Guinea is reported to be advancing at a good pace, with the first shipment reported to be expected in 2025 with a reported 30-month ramp-up to 60 million tonnes per annum for phase 1, and a reported additional 60 million tonnes per annum for phase 2. In addition, Vale has reported that it is targeting a 50 million tonnes per annum increase in capacity by 2026 from Vargem Grande, Capanema and S11D mine.
Key downside risks to the Capesize market include the risk of a continued economic slowdown in China, as well as the risk of heightened geopolitical tensions. Continued weakness in the Chinese property sector also represents an ongoing risk to Chinese steel demand.
Capesize fleet development
The global Capesize fleet stands at 404 million dwt as of July 30, 2025, up from 399 million dwt in August 2024. The current orderbook for Capesize dry bulk vessels currently stands at 8.9% of the existing fleet, up from 8% in 2024.
5.2 million dwt has been ordered so far in 2025, compared to 12.6 million dwt during the same period in 2024. 0.65 million dwt has been scrapped so far in 2025, compared to 0.53 million dwt during the same period in 2024.
Operational update
In the second quarter of 2025, our fleet had 1,092 operational days, and a utilization rate of 99.9% of our delivered vessels.
Outlook
Approximately 150 large bulk carriers are due for delivery prior to 2028 and we anticipate a significant number of vessels to be due for dry docking in the coming years. For comparison, more than 675 Capesize vessels which were delivered between 2010 and 2012 are due for their third special survey in the coming years, which potentially also implies steel renewals. According to Clarksons, more than 52% of the fleet will be older than 15 years by 2027.
Demand volume growth is expected to be moderate, but the sourcing of raw materials in the Atlantic basin to demand in the Far East is expected to continue to support longer sailing distances. The potential 160 mt per year incremental iron ore supply from Guinea and Brazil could, if all ends up in China and displaces domestically produced iron ore, mean demand for approximately 250 incremental Capesize equivalent ships.
In our view, Himalaya Shipping continues to have one of the most modern Newcastlemax fleets in the world. The dual fuel LNG capability of our vessels means that when a vessel is running on LNG, the CO2 emissions are more than halved compared to a standard Capesize index ship. Our modern fleet should be well positioned to take advantage of the regulatory challenges facing a majority of the Capesize fleet.
We believe that Himalaya’s structure, with index linked charters currently earning on average a 42.3% premium to the Baltic 5TC (BCI) index plus scrubber benefits, low G&A costs and financing with seven-year fixed bareboat rates (from the delivery of each vessel), positions us well to continue delivering solid returns to our shareholders in the coming years in what we believe will be an improving spot market.
Forward looking statements
This press release and any related discussions contain forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not reflect historical facts and may be identified by words such as “aim”, “believe,” “assuming,” “anticipate,” “could”, “expect”, “intend,” “estimate,” “forecast,” “project,” “likely to”, “plan,” “potential,” “will,” “may,” “should,” “potential” or other similar expressions and include statements about plans, objectives, goals, strategies, future events or performance, including outlook, prospects, statements about the benefits of our vessels, including reduced emissions when running on LNG, the terms of our charters and chartering activity including the information under “Fleet status”, dry bulk industry trends and market outlook, including market conditions and activity levels in the industry, including our anticipation of a well-balanced market and a strong foundation for a potentially prolonged upward cycle, the expectation that our structure positions us well to continue delivering solid returns to our shareholders in the coming years in what we believe will be an improving spot market, expected demand for vessels and expected drivers of demand including projects and expected output of projects and timing and expected additional shipping capacity resulting from projects such as those in Guinea and underlying assumptions, utilization of the global fleet and our fleet, expected trends in the global fleet including expected supply of new vessels in the coming years and expected cost of newbuilds, our breakeven point, statements about our capital strategy, dividend objectives and free cash flow distribution, expectations and plans, including a potential to increase distributions, expected limited need for capital expenditures and expectation of a significant portion of free cash flow to be paid to shareholders, statements made in the sections above entitled “Market commentary,” and “Outlook,” including expected trends in vessel supply and trends in the global fleet, expected drydocking, and other non-historical statements. These forward-looking statements are not statements of historical fact and are based upon current estimates, expectations, beliefs, and various assumptions, many of which are based, in turn, upon further assumptions, and a number of such assumptions are beyond our control and are difficult to predict. These statements involve significant risks, uncertainties, contingencies and factors that are difficult or impossible to predict and are beyond our control, and that may cause our actual results, performance or achievements to be materially different from what is expressed, implied or forecasted in such forward-looking statements including:
•general economic, political and business conditions;
•general dry bulk market conditions, including fluctuations in charter hire rates and vessel values;
•charter rates, operating days for our fleet and our ability to achieve charter rates above our break-even rate;
•changes in demand in the dry bulk shipping industry, including the market for our vessels;
•demand for the products our vessels carry and the status of projects, and timing and number of production of projects that produce iron ore and other products we ship;
•changes in the supply of dry bulk vessels;
•our ability to successfully re-employ our dry bulk vessels at the end of their current charters and the terms of future charters;
•changes in our operating expenses, including fuel or bunker prices, dry docking and insurance costs;
•compliance with, and our liabilities under, governmental, tax, environmental and safety laws and regulations;
•changes in governmental regulation, tax and trade matters and actions taken by regulatory authorities;
•potential disruption of shipping routes due to accidents, hostilities or political events;
•our ability to refinance our debt as it falls due;
•fluctuations in foreign currency exchange rates;
•potential conflicts of interest involving members of our board and management and our significant shareholder;
•the risk of a continued economic slowdown in China and continued weakness in the Chinese property
sector and risks relating to Chinese steel demand;
•global economic and trade conditions, the impact of tariffs and trade wars, wars and geopolitical events
and the risk of heightened geopolitical tensions;
•the progress and outcome of projects in Guinea and Brazil, including timing of completion of such projects
and impact on the Capesize market;
•our ability to pay dividends and the amount of dividends we ultimately pay;
•risks related to climate change, including climate-change or greenhouse gas related legislation or regulations and the impact on our business from climate-change related physical changes or changes in weather patterns, and the potential impact of new regulations relating to climate change, as well as the impact of the foregoing on the performance of our vessels;
•other factors that may affect our financial condition, liquidity and results of operations; and
•other risks described under "Item 3. Key Information - D. Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission on March 26, 2025.
You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Himalaya Shipping undertakes no and expressly disclaims any obligation to update publicly any forward-looking statements after the date of this press release whether as a result of new information, future events or otherwise, except as required by law.
About Himalaya Shipping Ltd.
Himalaya Shipping Ltd. is an independent bulk carrier company, incorporated in Bermuda. Himalaya Shipping has twelve vessels in operation.
Responsibility statement
We confirm that, to the best of our knowledge, the interim condensed consolidated financial statements for the first half of 2025, which have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) give a true and fair view of the Company’s consolidated assets, liabilities, financial position and results of operations. To the best of our knowledge, the interim report for the first half year of 2025 includes a fair review of the information required under the Norwegian Securities Trading Act section 5-6 fourth paragraph.
August 8, 2025
The Board of Directors
Himalaya Shipping Ltd.
Hamilton, Bermuda
Bjorn Isaksen (Chairman of the Board)
Carl Erik Steen (Director)
Alexandra Kate Blankenship (Director)
Jehan Mawjee (Director)
Mi Hong Yoon (Director)
Questions should be directed to:
Lars-Christian Svensen: Contracted CEO, +47476 38756
APPENDIX
UNAUDITED NON GAAP MEASURES AND RECONCILIATIONS
Average TCE earnings is a non-U.S. GAAP measure of the average daily revenue performance of a vessel. Set forth below is a reconciliation of average TCE earnings to total operating revenues for the periods presented.
| In millions, except per day and number of days | Three months ended | Six months ended | |||||
|---|---|---|---|---|---|---|---|
| June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||
| Total operating revenues | 29.9 | 31.2 | 51.9 | 54.8 | |||
| Add: Address commissions | 1.1 | 1.1 | 1.9 | 2.0 | |||
| Total operating revenues, gross | 31.0 | 32.3 | 53.8 | 56.8 | |||
| Fleet operational days | 1,092 | 935 | 2,172 | 1,733 | |||
| Average TCE earnings | 28,400 | 34,600 | 24,800 | 32,800 |
All values are in US Dollars.
We present EBITDA because we believe this measure increases comparability of total business performance from period to period and against the performance of other companies. Set forth below is a reconciliation of EBITDA to net income for the periods presented.
| Three months ended | Six months ended | |||
|---|---|---|---|---|
| In $ millions | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 |
| Net income (loss) | 1.1 | 6.9 | (5.3) | 9.4 |
| Depreciation | 7.3 | 6.5 | 14.6 | 11.9 |
| Total financial expenses, net | 12.5 | 10.6 | 25.5 | 19.6 |
| Income tax | — | — | — | — |
| EBITDA | 20.9 | 24.0 | 34.8 | 40.9 |
Non-GAAP financial measures may not be comparable to similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under U.S. GAAP.
INTERIM FINANCIAL INFORMATION
SECOND QUARTER 2025
Himalaya Shipping Ltd.
Unaudited Consolidated Statements of Operations
(In $ millions except share and per share data)
| Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | |
|---|---|---|---|---|
| Operating revenues | ||||
| Time charter revenues | 29.9 | 31.2 | 51.9 | 54.8 |
| Total operating revenues | 29.9 | 31.2 | 51.9 | 54.8 |
| Operating expenses | ||||
| Vessel operating expenses | (7.1) | (5.6) | (14.0) | (10.5) |
| Voyage expenses and commissions | (0.4) | (0.3) | (0.5) | (0.7) |
| General and administrative expenses | (1.5) | (1.3) | (2.6) | (2.7) |
| Depreciation | (7.3) | (6.5) | (14.6) | (11.9) |
| Total operating expenses | (16.3) | (13.7) | (31.7) | (25.8) |
| Operating income | 13.6 | 17.5 | 20.2 | 29.0 |
| Income (loss) from equity method investments | — | — | — | — |
| Financial income (expenses), net | ||||
| Interest income | 0.3 | 0.4 | 0.4 | 0.6 |
| Interest expense, net of amounts capitalized | (12.8) | (11.0) | (25.9) | (20.2) |
| Total financial expenses, net | (12.5) | (10.6) | (25.5) | (19.6) |
| Net income (loss) before income tax | 1.1 | 6.9 | (5.3) | 9.4 |
| Income tax (expense) / credit | — | — | — | — |
| Net income (loss) attributable to shareholders of Himalaya Shipping Ltd. | 1.1 | 6.9 | (5.3) | 9.4 |
| Total comprehensive income (loss) attributable to shareholders of Himalaya Shipping Ltd. | 1.1 | 6.9 | (5.3) | 9.4 |
| Basic and diluted earnings (loss) per share | 0.02 | 0.16 | (0.12) | 0.21 |
Himalaya Shipping Ltd.
Unaudited Consolidated Balance Sheets
(In $ millions except share and per share data)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 24.7 | 19.4 |
| Trade receivables | 0.4 | 1.2 |
| Prepaid expenses and other current assets | 8.0 | 6.2 |
| Total current assets | 33.1 | 26.8 |
| Non-current assets | ||
| Equity method investments | 0.4 | 0.3 |
| Vessels and equipment, net | 838.4 | 853.0 |
| Total non-current assets | 838.8 | 853.3 |
| Total assets | 871.9 | 880.1 |
| LIABILITIES AND SHAREHOLDER’S EQUITY | ||
| Current liabilities | ||
| Current portion of long-term debt | 23.7 | 24.3 |
| Trade payables | 2.0 | 0.8 |
| Accrued expenses | 6.3 | 7.2 |
| Other current liabilities | 3.0 | 3.5 |
| Total current liabilities | 35.0 | 35.8 |
| Non-current liabilities | ||
| Long-term debt | 677.6 | 689.6 |
| Total non-current liabilities | 677.6 | 689.6 |
| Total liabilities | 712.6 | 725.4 |
| Shareholders’ Equity | ||
| Common shares of par value $1.00 per share: authorized 140,010,000 (2024: 140,010,000) shares, issued and outstanding 46,550,000 (2024: 43,900,000) shares | 46.6 | 43.9 |
| Additional paid-in capital | 26.7 | 14.4 |
| Contributed surplus | 71.7 | 76.8 |
| Retained earnings | 14.3 | 19.6 |
| Total shareholders’ equity | 159.3 | 154.7 |
| Total liabilities and shareholders’ equity | 871.9 | 880.1 |
Himalaya Shipping Ltd.
Unaudited Consolidated Statements of Cash Flows
(In $ millions except share and per share data)
| Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | |
|---|---|---|---|---|
| Cash Flows from Operating Activities | ||||
| Net income (loss) | 1.1 | 6.9 | (5.3) | 9.4 |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
| Non-cash compensation expense related to stock options | 0.1 | 0.1 | 0.1 | 0.2 |
| Depreciation of vessels | 7.3 | 6.5 | 14.6 | 11.9 |
| Amortization of deferred finance charges | 0.6 | 0.6 | 1.3 | 1.1 |
| Equity in net income on equity method investment | — | — | — | — |
| Change in assets and liabilities: | ||||
| Accounts receivable | 0.3 | 0.3 | 0.8 | (0.2) |
| Accounts payable | — | (0.1) | 1.2 | (0.5) |
| Accrued expenses | (1.5) | 1.3 | (1.8) | 4.9 |
| Prepaid expenses and other current assets | (0.6) | 0.2 | (1.8) | (0.1) |
| Other current liabilities | 1.0 | 1.8 | (0.5) | 2.1 |
| Net cash provided by operating activities | 8.3 | 17.6 | 8.6 | 28.8 |
| Cash Flows from Investing Activities | ||||
| Additions to newbuildings | — | (159.4) | — | (313.2) |
| Net cash used in investing activities | — | (159.4) | — | (313.2) |
| Cash Flows from Financing Activities | ||||
| Proceeds from issuance of common shares, net of paid issuance costs | — | — | 14.8 | — |
| Proceeds from issuance of long-term and short-term debt (net of deferred finance charges paid to lender) | — | 147.7 | — | 295.5 |
| Other deferred finance charges paid | — | (0.4) | — | (1.6) |
| Repayment of long-term and short-term debt | (7.4) | (4.9) | (20.0) | (8.3) |
| Drawdown of short-term debt | — | — | 6.0 | — |
| Payment of cash distributions | (3.2) | (4.4) | (4.1) | (4.8) |
| Net cash (used in) provided by financing activities | (10.6) | 138.0 | (3.3) | 280.8 |
| Net (decrease) increase in cash and cash equivalents | (2.3) | (3.8) | 5.3 | (3.6) |
| Cash and cash equivalents at the beginning of the period | 27.0 | 25.7 | 19.4 | 25.5 |
| Cash and cash equivalents at the end of the period | 24.7 | 21.9 | 24.7 | 21.9 |
| Supplementary disclosure of cash flow information | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 |
| Interest paid, net of capitalized interest | (13.7) | (9.6) | (26.2) | (15.2) |
Himalaya Shipping Ltd.
Unaudited Consolidated Statements of Changes in Shareholders' Equity
(In $ millions except share and per share data)
| Number of outstanding shares | Common shares | Additional paid in capital | Contributed surplus | Retained earnings/ (Accumulated deficit) | Total equity | |
|---|---|---|---|---|---|---|
| Balance as of December 31, 2023 | 43,900,000 | 43.9 | 111.8 | — | (1.5) | 154.2 |
| Transfer to contributed surplus | — | (97.9) | 97.9 | — | — | |
| Share based compensation | — | 0.1 | — | — | 0.1 | |
| Cash distributions to shareholders | — | — | (1.8) | — | (1.8) | |
| Total comprehensive income | — | — | — | 2.5 | 2.5 | |
| Balance as at March 31, 2024 | 43,900,000 | 43.9 | 14.0 | 96.1 | 1.0 | 155.0 |
| Share based compensations | — | 0.1 | — | — | 0.1 | |
| Cash distributions to shareholders | — | — | (4.8) | — | (4.8) | |
| Total comprehensive income | — | — | — | 6.9 | 6.9 | |
| Balance as of June 30, 2024 | 43,900,000 | 43.9 | 14.1 | 91.3 | 7.9 | 157.2 |
| Number of outstanding shares | Common shares | Additional paid in capital | Contributed surplus | Retained earnings | Total equity | |
| Balance as of December 31, 2024 | 43,900,000 | 43.9 | 14.4 | 76.8 | 19.6 | 154.7 |
| Issue of shares | 2,650,000 | 2.7 | 12.4 | — | — | 15.1 |
| Equity issuance costs | — | (0.3) | — | — | (0.3) | |
| Share based compensation | — | 0.1 | — | — | 0.1 | |
| Cash distributions to shareholders | — | — | (0.7) | — | (0.7) | |
| Total comprehensive income | — | — | — | (6.4) | (6.4) | |
| Balance as at March 31, 2025 | 46,550,000 | 46.6 | 26.6 | 76.1 | 13.2 | 162.5 |
| Share based compensations | — | 0.1 | — | — | 0.1 | |
| Cash distributions to shareholders | — | — | (4.4) | — | (4.4) | |
| Total comprehensive income | — | — | — | 1.1 | 1.1 | |
| Balance as of June 30, 2025 | 46,550,000 | 46.6 | 26.7 | 71.7 | 14.3 | 159.3 |
himalayashippingltdq2202
1 Himalaya Shipping – Q2 2025 Results Presentation 8 August 2025
2 Forward looking statements This results presentation and any related discussions, including any related written or oral statements made by us, contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties. Forward-looking statements are statements that do not reflect historical facts and may be identified by words such as “aim”, “believe,” “assuming,” “anticipate,” “could”, “expect”, “intend,” “estimate,” “forecast,” “project,” “likely to,” “due to,” “plan,” “potential,” “will,” “may,” “should,” "indicative," "illustrative," "potential" or other similar expressions and include statements about plans, objectives, goals, strategies, future events or performance, including outlook, prospects, expected cash break-even, illustrative free cash flow per share and earnings potential based on different scenarios and assumptions, the terms of our charters and chartering activity, dry bulk industry trends and market outlook, including market conditions and activity levels in the industry, expected demand for vessels and expected drivers of demand including projects and underlying assumptions, the information under “Fleet status report” and “The supply situation,” vessel orders and order book, expected trends regarding iron ore demand, expected trends on emission pricing, mandatory dry docking trends and impacts on expected supply of dry bulk vessels and yard capacity, including the information under “Mandatory dry docking to increase in 2025,” statements about our dividend objective and plans, and other non-historical statements. These forward-looking statements are not statements of historical fact and are based upon current estimates, expectations, beliefs, and various assumptions, many of which are based, in turn, upon further assumptions, and a number of such assumptions are beyond our control and are difficult to predict. These statements involve significant risks, uncertainties, contingencies and factors that are difficult or impossible to predict and are beyond our control, and that may cause our actual results, performance or achievements to be materially different from what is expressed, implied or forecasted in such forward-looking statements. Numerous factors, risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed, implied or forecasted in the forward-looking statements include but are not limited to: general economic, political and business conditions; general dry bulk market conditions, including fluctuations in charter hire rates and vessel values; charter rates, operating days for our fleet and our ability to achieve charter rates above our break-even rate; changes in demand in the dry bulk shipping industry, including the market for our vessels; demand for the products our vessels carry and the status of projects, and timing and number of production of projects that produce iron ore and other products we ship; changes in the supply of dry bulk vessels; our ability to successfully re-employ our dry bulk vessels at the end of their current charters and the terms of future charters; changes in our operating expenses, including fuel or bunker prices, dry docking and insurance costs; compliance with, and our liabilities under governmental, tax, environmental and safety laws and regulations; changes in governmental regulation, tax and trade matters and actions taken by regulatory authorities; potential disruption of shipping routes due to accidents, hostilities or political events; our ability to refinance our debt as it falls due; fluctuations in foreign currency exchange rates; potential conflicts of interest involving members of our board and management and our significant shareholder; the risk of a continued economic slowdown in China and continued weakness in the Chinese property sector and risks relating to Chinese steel demand; global economic and trade conditions, the impact of tariffs and trade wars, wars and geopolitical events and the risk of heightened geopolitical tensions; the progress and outcome of projects in Guinea and Brazil, including timing of completion of such projects and impact on the Capesize market; our ability to pay dividends and the amount of dividends we ultimately pay; risks related to climate change, including climate- change or greenhouse gas related legislation or regulations and the impact on our business from climate-change related physical changes or changes in weather patterns, and the potential impact of new regulations relating to climate change, as well as the impact of the foregoing on the performance of our vessels; other factors that may affect our financial condition, liquidity and results of operations; and other risks described under “Item 3. Key Information — D. Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission on March 26, 2025. The foregoing factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement included in this report should not be construed as exhaustive. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this investor presentation. Except as required by law, Himalaya Shipping undertakes no obligation to update publicly any forward-looking statements after the date of this investor presentation, whether as a result of new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains certain selected financial measures on a basis other than U.S. generally accepted accounting principles (“GAAP”), including EBITDA, average TCE earnings, gross, and illustrative free cash flow. EBITDA represents our net income plus depreciation of vessels and equipment; total financial expenses, net; and income tax expense. EBITDA is presented here because the Company believes this measure increases comparability of total business performance from period to period and against the performance of other companies. Average TCE earnings, gross, as presented here, represents time charter revenues and voyage charter revenues adding back address commissions and divided by operational days. Average TCE earnings, gross, is presented here because the Company believes this measure provides additional meaningful information for investors to analyse our fleets’ daily income performance. For a reconciliation of EBITDA and average TCE earnings, gross, to the most directly comparable financial measures prepared in accordance with US GAAP, please see the section of our preliminary results for the quarter ended June 30, 2025, Appendix entitled “Unaudited Non-GAAP Measures And Reconciliations”. For a discussion of illustrative free cash flow, see slide 11 including the footnotes thereto. We are unable to prepare a reconciliation of illustrative free cash flow without unreasonable efforts.
3 Highlights Q2 2025 Highlights: • Net profit of $1.1 million and EBITDA of $20.9 million for the quarter ended June 30, 2025. • Achieved time charter equivalent earnings of approximately $28,400 per day, gross. • Commencement of Lars-Christian Svensen as contracted CEO and appointment of Vidar Hasund as contracted CFO on April 1, 2025. • In April 2025, the Board approved a grant of 200,000 share options to key human resources. • On June 3, 2025, the Company successfully completed the uplisting from Euronext Expand to Euronext Oslo Børs. • Declared cash distributions of $0.025, $0.03 and $0.05 per common share for April, May and June 2025, respectively. Subsequent Events: • Converted the index-linked time charters for four vessels to fixed rate time charters at an average rate of approximately US$35,300 per day, gross, from August 1, 2025, to September 30, 2025. • Achieved time charter equivalent earnings for July 2025 of approximately $32,700 per day, gross. • Declared a cash distribution of $0.04 per share for July 2025.
4 Financial Update
5 Key Financials Q2 2025 Income statement Comments US$ millions, except per share data Q2 2025 Q2 2024 Variance Operating revenues 29.9 31.2 (1.3) Vessel operating expenses (7.1) (5.6) (1.5) Voyage expenses and commission (0.4) (0.3) (0.1) General and administrative expenses (1.5) (1.3) (0.2) Depreciation (7.3) (6.5) (0.8) Total operating expenses (16.3) (13.7) (2.6) Operating profit 13.6 17.5 (3.9) Interest expense (12.8) (11.0) (1.8) Other financial items 0.3 0.4 (0.1) Total financial expense, net (12.5) (10.6) (1.9) Tax expense - - - Net (loss) income 1.1 6.9 (5.8) Earnings (loss) per share 0.02 0.16 EBITDA 20.9 24.0 (3.1) • Operating revenues decreased $1.3 million compared to Q2 2024 due to reduced average TCE, gross, from approx. US$34,600/day in Q2 2024 to US$28,400/day in Q2 2025, mainly offset by more operational days, 1,092 in Q2 2025 vs 935 in Q2 2024, due to vessel deliveries in 2024. • Vessel operating expenses increased by $1.5 million compared to Q2 2024 primarily due to more operational days in Q2 2025. • General and administrative expenses increased by $0.2 million compared to Q2 2024 primarily due to fees in connection with the transfer from Euronext Expand to Euronext Oslo Bors. • Interest expense increased by $1.8 million due to draw downs on the sale leaseback financing in connection with vessel deliveries during 2024.
6 Key Financials Q2 2025 Balance Sheet Summary Comments US$ millions June 30, 2025 March 31, 2025 Variance Cash and cash equivalents 24.7 27.0 (2.3) Vessels and equipment 838.4 845.7 (7.3) Total assets 871.9 881.1 (9.2) Short-term and long-term debt 701.3 707.9 (6.6) Total equity 159.3 162.5 (3.2) • Cash of $24.7 million as of June 30, 2025 including minimum cash balance required under the sale leaseback financing of $12.3 million. • Total debt, gross, was $714.0 million as of June 30, 2025 ($701.3 million net of deferred loan costs) down from $721.3 million as of March 31, 2025 ($707.9 million net of deferred loan costs). • Cash flow from operations of 8.3 million in Q2 2025 • Total cash distributions of $0.105 per share declared for April, May and June 2025.
7 Company update
8 Source: Company Data Fleet status report – Current Chartering position Mount Norefjell 2023 DF Newcastlemax Mount Ita 2023 DF Newcastlemax Mount Etna 2023 DF Newcastlemax Mount Blanc 2023 DF Newcastlemax Mount Matterhorn 2023 DF Newcastlemax Mont Neblina 2023 DF Newcastlemax Mount Bandeira 2024 DF Newcastlemax Mount Hua 2024 DF Newcastlemax Mount Elbrus 2024 DF Newcastlemax Mount Denali 2024 DF Newcastlemax Mount Acancagua 2024 DF Newcastlemax Mount Emai 2024 DF Newcastlemax Himalaya Shipping Fleet Status Report Vessel Name Built Type 2025 2026 32,000* Index Dual Fuel Newcastlemax 2027 Q3 Q4Q4Q2 Q3 Q4 Index Q1 Q2 35,350* Index Index Q1 Q2 Q3 35,350* Index 34,650* Index Index Index31,500* Index Index Index 35,400* Index OptionAvailable Evergreen * + Scrubber
9 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2q23 3q23 4q23 1q24 2q24 3q24 4q24 1q25 2q25 US D P er D ay Baltic 5TC average Average Peer HSHP Proven Outperformance through Large and Modern Tonnage HSHP TCE vs Peers and Index Source: Fearnleys, Company Data, Shipping Intelligence Peers: GOGL, SBLK, SHIP, GNK, 2020 (reported Cape/Newcastlemax TCE) HSHP avg. premium vs. index ~49% HSHP avg. Premium vs. Peers ~25%
10 38,100 -7,100 2,500 -2,600 -6,800 17,300 -6 800 BCI180 Nuke premium LNG EU ETS FuelEU IMO CO2 Himalaya US D/ Da y 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Fuel / CO2 cost: C2 - Tubarao - Rotterdam 2028 [USD/Day] - 208K DWT adjusted Himalaya Shipping DF vessels to capitalize on emission pricing Himalaya vs. Capesize index (BCI 180) vessel3 x GHG taxes coming into effect • EU ETS - active 2024 • CO2 tax on fuel emission • FuelEU - active 2025 • Carbon intensity tax on fuel • IMO Global - expected 2028 • Carbon intensity tax on fuel • Significant and progressive penalty for shipping • Himalaya vessels estimated to offer 50% savings on the example route compared to a Baltic Index Cape - Fuel prices used (MT): Platts Rotterdam avg July 2025. EUA cost 75 EUR. - EU CO2 Tax: Surplus balance from FuelEU on LNG is calculated with value equaling penalty. Potential saving of >$20k/day sailing on this route vs Capesize index ship
11 1. This information has been prepared for illustrative purposes only and does not represent the Company’s forecast. It is based, among other things, on industry data, internal data and estimates of the Company and is inherently subject to risk and uncertainties. Actual results may differ materially from the assumptions and circumstances reflected in the above illustrative financial information. 2. Assumes BCI5 Index rates + 42% premium (less 5%) commission) + $1,600 in scrubber benefit less $24,900/d in cash breakeven x 12 ships, divided on 46,550,000 shares outstanding Illustrative FCF $ per share based on Capesize index rate Solid dividend capacity 0.0 0.4 1.0 1.6 2.3 2.9 3.5 4.2 4.8 17,206 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 FCF in $ pr share/year
12 Capital allocation Full alignment between shareholders and management – board and sponsors own ~1/3 of the equity No reinvestment plans – youngest fleet in the industry means limited capital needs Free cash flow after debt service targets to be distributed in monthly dividends 19 consecutive monthly cash distributions Cash-break even of ~$17k/day on Capesize index equivalent vs BCI average 21k last four years
13 Market update
14 950 1000 1050 1100 1150 1200 1250 1300 1350 2022 2023 2024 2025 Capesize tonne-miles Capesize Daily Billion Ton-mile Development (30dms*) Cape tonne-mile development year on year Q2 *30-day moving sum Source: Arrow Tonne-mile Growth Q1 2025 Q2 2025 Q2 ‘25 vs 3 year average Y/Y Capesize -3.0% -1.2% +3.2% • Bauxite +27% • Iron ore +1% • Coal -14% • China imports +3% y-o-y • Iron ore exports from Brazil +4% y-o-y
15 75% 77% 75% 73% 71% 75% 72% 70% 68% 69% 69% 0% 1% 3% 4% 6% 7% 7% 9% 11% 12% 16% 24% 21% 21% 22% 22% 18% 20% 20% 20% 18% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Iron ore Bauxite Coal Other Bauxite market continue to flourish - Increasingly important for Capesize Capesize Fleet – Tonnemile Demand Split, Bauxite > Coal 0.0 5.0 10.0 15.0 20.0 25.0 M ill io ns 5 6 6 7 7 8 8 M ill io ns China Bauxite Imports (Mt/month) China Alumina Production (mt/Month) Source: Arrow, Bloomberg, MySteel
16 Iron ore Brazil iron ore exports – Solid YTD as we move into the historical high-season Source: Shipping Intelligence Network 15 20 25 30 35 40 45 January February March April May June July August September October November December M ill io n to nn es Brazil iron ore exports million MT / month 2020 2021 2022 2023 2024 2025
17 100 110 120 130 140 150 160 170 1 6 11 16 21 26 31 36 41 46 51 M t China - Imported IO Inventories High/Low -'18-Present Avg. -'18-Present 2024 2025 Iron ore demand China iron ore imports – Remain solid China iron ore inventories set for seasonal rebound Source: Orderbook to Fleet Ratio as of May 2025, Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) 70.0 80.0 90.0 100.0 110.0 120.0 M ill io n to nn es China seabourne iron ore imports million MT / month 2021 2022 2023 2024 2025
18 Long-term Iron Ore Demand Source: Fearnleys, MySteel, Bloomberg, WoodMac Iron Ore Cost Curve (wet cash cost/tonne) China Imported Inventories – Brazil share and tonne miles rising China Domestic Iron Ore Production (~62% fe) 0% 10% 20% 30% 40% 50% 0 50 100 150 200 43/2013 47/2015 47/2017 50/2019 51/2021 52/2023 % s ou rc ed fr om B ra zil To ta l P or t I nv en to rie s (0 00 's to nn es ) Brazilian Sourced IO Australian Sourced IO Implied Other Sourced IO Brazil % 15 16 17 18 19 20 21 22 23 24 25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec M t/ M ot nh 2023 2024 2025 China Domestic IO production down 3% y/y in 2024 China Domestic IO production down 3% y/y in 2025 YTD 0% 20% 40% 60% 80% 100% 0% 5% 10% 15% 20% 25% 30% 35% 40% 0-25 25-35 35-45 45-55 55-65 65-75 75-85 85-95 >95 C um ul at iv e To ta l ( % ) % o f T ot al P ro du ct io n IO Price – USD/tonne China ROW Brazil Auz Cumulative Total
19 60 60 15 15 20 170 WCM Simfer Vargem Capanema S11D Total Significant iron ore volumes coming – driving ton-mile demand Addition iron ore volumes in Atlantic basin (MT/y) – 3x longer than from Australia Source: Clarksons, Rio Tinto, Vale, Himalaya Shipping. 1) Assumed 170MT pr year carried on 180k DWT Newcastlemaxes (95% fully loaded). Each ship able to do 3.65 round voyages pr year Required # ships > orderbook1 272 165 Ships required Cape+ orderbook Simandou project – Guinea Start-up Nov 2025–full volumes 2027 Vale capacity increases by 2026
20 0 50 100 150 200 250 300 350 400 450 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 20 25 M ill io n D W T Nominal orderbook vs existing fleet Orderbook Capesize fleet DWT 43.5 % 40.7 % 30.7 % 30.2 % 20.5 % 20.1 % 15.1 % 12.4 % 11.0 % 8.9 % Limited supply of new ships Historically low orderbook Highly supportive OB/Fleet Ratio Source: Orderbook to Fleet Ratio as of May 2025, Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) Orderbook 8.9% of fleet
21 0 50 100 150 200 250 300 350 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 Delivered OB The supply situation Capesize+ fleet by delivery year in # ships Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) *Inclusive of current Orderbook ~60% of the fleet >20 years by 2034* Year # ships turning 20 years # of Vessels Delivered % of fleet >20 years (inc. OB) 2025 47 39 7% 2026 58 52 10% 2027 56 44 12% 2028 45 29 14% 2029 110 1 19% 2030 212 0 29% 2031 251 0 40% 2032 214 0 50% 2033 103 0 55% 2034 94 0 59% Vessels built before 20093 Vessels built between 2009 and 2015 Vessels built post-2016 unaffected by 20303 300 ships – 14% 1,072 ships – 49% 826 ships – 37% Unlikely to be able to build significant capacity before 2028
22 0.6 % 0.9 % 1.3 % 1.4 % 2023 2024 2025e 2026e 0% 5% 10% 15% 20% 25% 30% 35% 0 2 4 6 8 10 12 14 16 18 1993 2002 2011 2020 2029 % o f F le et C ap es iz e Fl ee t A ge % of fleet >20yrs old Avg. Age (Years) Mandatory dry docking to increase in 2025 Capesize average age Supply constraints Source: Clarksons, Maritime Analytics Fleet age development includes current Orderbook, assumes no scrapping Off hire due to increase from docking schedule % off hire • ~50% y/y increase in estimated offshire days due to DD in ’25 • 2010 was a big delivery year - hence over 10% of the fleet will engage in 15 year SS in 2025 (23% of the cape fleet will need dry dock in total) • With an aging fleet forced to drydock or be scrapped, this will be an additional positive impact on cape/newc freight rates • The large number of dry dockings in 2025 may lead to yard congestion
23 Thank you