Himalaya Shipping (HSHP) Q2 2025 Earnings Call August 08, 2025 09:00 AM ET Speaker0Hello, and welcome to Himalaya Shipping Q2 twenty twenty five Presentation.Speaker1Session.Speaker0This call is being recorded. I'll now turn the call over to CEO, Lars Christian Svendsen. Please begin.Speaker2Thank you, operator. Welcome to the Q2 twenty twenty five conference call for Himalaya Shipping. My name is Lars Christian Svensson, and I'm joined here today by our CFO, Widar Hasen. Before we begin the presentation, I ...

Financial Performance - The company reported a net profit of $1.1 million and an EBITDA of $20.9 million for Q2 2025[9] - Time charter equivalent (TCE) earnings were approximately $28,400 per day, gross, for Q2 2025 and $32,700 per day, gross, for July 2025[9] - Operating revenues decreased by $1.3 million compared to Q2 2024, from $31.2 million to $29.9 million, due to reduced average TCE, offset by more operational days[12, 14] - Vessel operating expenses increased by $1.5 million compared to Q2 2024, primarily due to more operational days[14] - Interest expense increased by $1.8 million due to draw downs on sale leaseback financing[14] Balance Sheet and Cash Flow - Cash and cash equivalents totaled $24.7 million as of June 30, 2025, including a minimum cash balance of $12.3 million[17] - Total debt was $714.0 million, or $701.3 million net of deferred loan costs, as of June 30, 2025[17] - Cash flow from operations was $8.3 million in Q2 2025[17] - Total cash distributions of $0.105 per share were declared for April, May, and June 2025[17] Market Dynamics - Year-on-year Capesize tonne-mile development decreased by 1.2% in Q2 2025, but increased by 3.2% compared to the 3-year average[35] - China's iron ore imports remain solid, and inventories are set for a seasonal rebound[45] - The orderbook represents 8.9% of the existing Capesize fleet, indicating a historically low orderbook[55]

Fleet Operations - The company operates a fleet of 12 Newcastlemax dry bulk vessels, which are currently in operation[27]. - Himalaya Shipping Ltd. operates twelve Newcastlemax dry bulk vessels, each with a capacity of 210,000 dead weight tons (dwt) equipped with dual fuel LNG technology[220]. Financial Performance - The consolidated financial statements include operations for the years ended December 31, 2024, 2023, and 2022[31]. - Average Time Charter Equivalent (TCE) earnings are a key non-GAAP measure used to assess financial performance, reflecting daily revenue performance of vessels[34]. - The company emphasizes the importance of Adjusted EBITDA, which is calculated by adjusting net income for various expenses, to enhance comparability of performance[34]. Risks and Challenges - The company faces risks related to liquidity, charter rates, and operational costs, which could materially affect financial results[53]. - The shipping industry is subject to inherent operational risks that may not be fully covered by insurance[53]. - The company relies on a limited number of significant customers for a large portion of its revenues, which poses a risk to financial stability[53]. - Changes in international trade policies and geopolitical tensions, particularly with China, may adversely impact the company's operations[53]. - The company may require additional capital in the future, which may not be available on favorable terms[53]. - The volatility of charter hire rates for dry bulk vessels may lead to rates decreasing below cash break-even levels[53]. - Rising crew costs and inflationary pressures could adversely affect the company's operating results and cash flows[59]. - The company is subject to counterparty risks, which could lead to significant losses if counterparties fail to meet their obligations[60]. - The loss of significant customers could adversely affect the company's revenues and financial condition[64]. - The company may face litigation that could have a material adverse effect on its business and financial condition if not resolved favorably[65]. - A significant decrease in cash generated from operations or inability to secure new financing could materially impact the company's ability to meet obligations and continue operations[56]. - The company faces risks related to its dependence on 2020 Bulkers Management for key management services, which could impact operations[99]. - The dry bulk shipping industry is cyclical, with charter hire rates and spot rates being highly volatile, potentially affecting profitability[110]. - Global financial market volatility, exacerbated by geopolitical conflicts, may negatively affect the company's financial condition and access to financing[118]. - The company faces risks from significant contraction, deleveraging, and reduced liquidity in U.S. and European credit markets, which may adversely affect its business and financial condition[121]. - Heightened international trade tensions, particularly with China, could lead to increased trade protectionism, adversely impacting shipping demand and operational results[122]. - The ongoing war in Ukraine and sanctions on Russia have increased uncertainties in U.S.-China relations, potentially reducing trade and investments between these major economies[124]. - A decrease in China's imports and exports could materially affect the company's business, especially given its reliance on key trades from Brazil and Australia to China[125]. - Political instability and global public health threats, such as pandemics, could disrupt the seaborne transportation industry and adversely impact the company's operations[126]. - Acts of piracy continue to pose risks to the company's operations, particularly in regions like the South China Sea and the Gulf of Guinea, potentially leading to increased insurance premiums and crew costs[166]. - The company may face monetary fines or penalties if its vessels operate in sanctioned jurisdictions, adversely affecting its reputation and market for common shares[167]. - The regulatory landscape is rapidly changing, and non-compliance with sanctions could negatively impact the company's access to capital markets and result in administrative penalties[169]. Financial Obligations - The company relies on cash generated from operations, cash on hand, and borrowings under the Drew Holdings Revolving Credit Facility to meet operating expenses and service indebtedness[55]. - Annual lease payments to Leasing Providers amount to approximately $72.6 million, which must be met to avoid default[102]. - As of December 31, 2024, the company had cash and cash equivalents of $19.4 million and a Credit Facility of up to $10 million, with $6 million drawn as of March 20, 2025[106]. - The company has entered into Sale Leaseback Agreements totaling $758.4 million for financing dry bulk carriers[100]. Regulatory and Compliance - The company is subject to complex environmental regulations that could increase operational costs and affect the resale value of its vessels[139]. - Compliance with Rightship rating standards may require significant investments to ensure vessels meet seaworthiness criteria, impacting operational costs[146]. - Failure to maintain class certification or pass required surveys could render vessels unemployable and uninsurable, adversely affecting revenue and profitability[147]. - The EU Emissions Trading System (EU ETS) will apply to the entire fleet starting January 1, 2024, requiring compliance with carbon emissions regulations[155]. - By 2026, shipping companies must surrender 100% of verified carbon emissions allowances under the EU ETS, leading to increased administrative costs[155]. - The International Maritime Organization (IMO) aims to reduce carbon intensity from ships by at least 40% by 2030 and total annual greenhouse gas emissions by at least 50% by 2050 compared to 2008 levels[163]. - The Carbon Border Adjustment Mechanism (CBAM) may impose additional costs on operations related to carbon emissions from imported goods[156]. - Increased scrutiny on environmental, social, and governance (ESG) matters may hinder access to capital and affect the company's reputation and financial condition[151]. - Compliance with evolving ESG disclosure requirements may incur significant costs and operational challenges[158]. - Climate change may lead to increased frequency of severe weather events, disrupting operations and impacting financial performance[161]. - Long-term economic consequences of climate change could reduce demand for coal, a primary cargo for dry bulk vessels, adversely affecting business operations[165]. Shareholder and Corporate Governance - As of March 21, 2025, Drew Holdings owns 29.0% of the company's shares, giving it significant influence over key transactions and corporate governance[197]. - The company is authorized to issue up to 140,010,000 common shares, with 46,550,000 shares outstanding as of March 21, 2025[189]. - The company may incur additional costs due to compliance with U.S. and Norwegian reporting requirements following its IPO in March 2023, which could impact financial resources[192]. - The company is not currently required to file an auditor attestation report on internal controls but must include a management report in its annual Form 20-F[196]. - Future sales of common shares by major shareholders could adversely affect the market price of the company's shares[190]. - The company may face challenges in maintaining adequate internal controls over financial reporting, which could lead to regulatory scrutiny and impact investor confidence[196]. - The concentration of ownership by Drew Holdings may delay or prevent a change of control, potentially affecting shareholder value[197]. - The company has anti-takeover provisions in its Bye-laws that may discourage third-party acquisitions without Board consent, potentially limiting shareholder ability to obtain a premium for their shares[211]. - The company’s Bye-laws allow the Board of Directors to issue preference shares without shareholder approval, and to amalgamate or merge with another company with a simple majority vote[213]. - If the company loses its foreign private issuer status, regulatory and compliance costs under U.S. securities laws would significantly increase, requiring more detailed reporting[218]. Market Conditions - The Baltic Capesize Index (BCI) showed significant volatility, ranging from $2,246 to $54,584 per day between 2023 and 2024[111]. - Spot rates for dry bulk vessels were volatile in 2022 and 2023, with a rate of $22,139 per day recorded on March 20, 2025[112]. - Seasonal fluctuations in demand, particularly in the Capesize segment, may adversely affect the company's financial condition, especially during the Chinese New Year[175]. - High fuel prices, which ranged from $68 to $93 per barrel in 2024, may impact the company's profits, despite its vessels being equipped with fuel-saving technologies[176]. - The market values of dry bulk vessels have experienced high volatility, which could lead to impairment losses and affect the company's ability to secure financing[133]. - An oversupply of dry bulk vessel capacity may result in reduced charter rates and profitability, impacting the company's financial performance[137]. Operational Risks - The company relies on information technology systems for operations, and any significant interruption or failure could adversely affect business and financial condition[80]. - The company has not integrated artificial intelligence technologies into its business but may consider it in the future[84]. - The company depends on its Ship Managers to hire and retain key personnel, and any loss of these individuals could adversely affect business prospects[95]. - The contracted Chief Executive Officer does not devote all of his time to the company, which may hinder operational success[97]. - The risk of flooding in dry bulk vessels could lead to significant losses if not adequately managed, impacting the company's financial condition[179]. - Unexpected dry docking costs and delays may arise from vessel damage, adversely affecting the company's revenue and financial health[181]. - The smuggling of contraband onto vessels could result in governmental claims against the company, negatively impacting its operations[183]. - The arrest or attachment of vessels due to maritime liens could interrupt cash flows and require significant payments to resolve, adversely affecting the company's financial condition[185].

Financial Performance - Total operating revenues for Q1 2024 reached $23.6 million, a significant increase of $22.1 million or 1535% compared to $1.4 million in Q1 2023[24]. - Net income for Q1 2024 was $2.5 million, a turnaround from a net loss of $23,000 in Q1 2023, representing an increase of $2.5 million[25]. - Adjusted EBITDA for Q1 2024 was $16.8 million, an increase of $16.2 million or 2496% compared to $649,000 in Q1 2023[37]. - Operating profit for the three months ended March 31, 2024, was $11.4 million, compared to $257,000 for the same period in 2023, indicating a significant improvement[63]. - Net income attributable to shareholders for the three months ended March 31, 2024, was $2.5 million, compared to a net loss of $23,000 in the same period of 2023[63]. - Time charter revenues for the three months ended March 31, 2024, were $23,581,000, a significant increase from $1,442,000 in the same period in 2023[95]. - The company reported basic and diluted earnings per share of $0.06 for the three months ended March 31, 2024, compared to no earnings per share in the same period of 2023[63]. - For the three months ended March 31, 2024, the company reported a net income of $2,492,000 compared to a net loss of $23,000 for the same period in 2023, resulting in basic and diluted earnings per share of $0.06[92]. Cash and Debt Management - Cash and cash equivalents as of March 31, 2024, totaled $25.7 million, a substantial increase from $981,000 at the end of Q1 2023[49]. - Cash flows from operating activities for the three months ended March 31, 2024, were $11.2 million, up from $2.6 million in the same period of 2023[68]. - Net cash used in investing activities for the three months ended March 31, 2024, was $153.8 million, compared to $130.8 million for the same period in 2023[67]. - Net cash provided by financing activities for the three months ended March 31, 2024, was $142.8 million, compared to $129.0 million in the same period of 2023[67]. - As of March 31, 2024, the company had principal debt outstanding of $598.0 million, reflecting the financing of new vessels and leaseback arrangements[44]. - Long-term debt as of March 31, 2024, was $560.9 million, up from $419.7 million as of December 31, 2023[66]. - The total debt, net of deferred finance charges, increased to $583.3 million as of March 31, 2024, up from $439.5 million as of December 31, 2023[105]. - The total long-term debt, gross, as of March 31, 2024, is $598.0 million, with a repayment schedule extending to 2028 and beyond[107]. Operational Highlights - The average daily time charter equivalent (TCE) earnings increased by 9% to $30,600/day in Q1 2024, compared to $28,200/day in Q1 2023[27]. - Vessel operating expenses surged to $4.9 million in Q1 2024, up from $252,000 in Q1 2023, reflecting an increase of 1856% due to the higher number of vessels in operation[24]. - The company took delivery of the newbuilding vessel Mount Denali in April 2024, expanding its fleet to 12 vessels[20]. - The company has agreements to acquire three dual-fueled Newcastlemax dry bulk vessels, with one delivered in April 2024 and the remaining expected by June 2024[72]. - The carrying value of newbuildings as of March 31, 2024, was $67,116,000, down from $132,646,000 at the end of 2023[97]. - The carrying value of vessels and equipment financed by AVIC is $279.7 million as of March 31, 2024[113]. Shareholder Returns - The company declared dividends of $0.03 per common share in March and April 2024, totaling $1.3 million each, and $0.04 per common share in May 2024, totaling $1.8 million[22]. - The weighted average number of shares outstanding increased to 43,900,000 as of March 31, 2024, from 32,152,857 in the same period in 2023[92]. - Cash distributions of $0.01 per share for January 2024 and $0.03 per share for February 2024 were approved and paid in March and April 2024, respectively[144][145]. Regulatory and Compliance - The company has received assurance from the Bermuda Minister of Finance that it will be exempt from taxation until March 31, 2035, despite the enactment of the Corporate Income Tax Act[85][88]. - The company is currently reviewing the impact of the recently issued ASU 2023-07 on its annual consolidated financial statements and disclosures[79]. - The company has performed stress testing on its forecasted cash positions and believes it will meet its obligations for the next 12 months[75]. - The company has only one reportable segment, and performance is measured based on consolidated net income[84]. Financing Arrangements - The company entered into a $15.0 million Revolving Credit Facility with Drew in December 2022, drawing $1.0 million which was fully repaid in 2023[123]. - An addendum to the Drew facility was executed on December 18, 2023, reducing the maximum amount from $15.0 million to $10.0 million and extending the maturity to December 31, 2025[125]. - As of March 31, 2024, the Company has $10.0 million available to draw down from the amended facility[126]. - The average bareboat rate per day for the sale and leaseback arrangements is $16,567[122]. - The company has entered into sale and leaseback arrangements with AVIC, CCBFL, and Jiangsu for multiple newbuildings, with financing terms including fixed interest rates and purchase options[109][114][119].

Company Information - Himalaya Shipping Ltd. filed its annual report on Form 20-F for the year ended December 31, 2023[4] - The company is headquartered in Hamilton, Bermuda[1] - Herman Billung serves as the Chief Executive Officer of Himalaya Shipping Ltd.[7] Filing Details - The report was submitted to the U.S. Securities and Exchange Commission on March 27, 2024[4] - The filing indicates compliance with the Securities Exchange Act of 1934[6]

Company Operations - Himalaya Shipping Ltd. operates 12 Newcastlemax dry bulk vessels, with six delivered in 2023 and three more expected by Q2 2024[26]. - The company has nine vessels in operation, all delivered after 2022, with agreements to acquire three additional vessels estimated for delivery in 2024[56]. - The company has three newbuilding dry bulk carriers under construction, with delivery estimated in the second quarter of 2024, facing risks of delays and cost overruns[63]. - The company has chartered out 11 vessels on index-linked charters, with five converted to fixed rate charters for periods ranging from 4 to 9 months[65]. - The company’s vessels are equipped with dual fuel LNG technology, which is expected to help mitigate fuel consumption costs in the future[179]. Financial Performance - The company reported consolidated financial statements in U.S. dollars for the years ended December 31, 2023, and 2022[30]. - Average Time Charter Equivalent (TCE) earnings are a key non-GAAP measure used to assess daily revenue performance of vessels[33]. - The company is largely dependent on cash generated from operations, cash on hand, and borrowings under Financing Arrangements to meet operating expenses and service indebtedness[54]. - The time charter market is highly competitive, and fluctuations in spot market charter hire rates may significantly impact the company's profitability[58]. - A significant decrease in the market values of the company's vessels could lead to impairment losses, adversely affecting its ability to obtain additional financing[53]. Risks and Challenges - The company is subject to various risks, including changes in demand in the dry bulk shipping industry and fluctuations in foreign currency exchange rates[39]. - Rising crew costs and inflation could adversely affect the company's results of operations due to increased demand for crew and upward pressure on wages[60]. - The company is subject to counterparty risks related to various contracts, including charter parties and newbuilding contracts, which could lead to significant losses if counterparties fail to meet their obligations[61]. - Liquidity risk could impair the company's ability to fund operations and jeopardize its financial condition and growth prospects[54]. - The company may face litigation that could have a material adverse effect on its business and financial condition if not resolved favorably[67]. Market Conditions - The company anticipates trends in the dry bulk shipping industry, including fluctuations in charter hire rates and vessel values[38]. - The dry bulk shipping industry is cyclical, with charter hire rates potentially decreasing below cash break-even rates, adversely affecting business operations and financial condition[111]. - Political instability and international conflicts, such as the war in Ukraine and tensions between the U.S. and China, could negatively impact the shipping industry and the company's financial results[120][127]. - The availability of financing for new vessels and shipping activities has become more difficult due to increased interest rates and tighter lending standards in the credit markets[122]. - The ongoing military conflict in Israel and Gaza could materially and adversely affect the company's business operations[132]. Regulatory and Compliance - The company is subject to data privacy laws, including the GDPR, with potential fines up to 4% of worldwide turnover or €20 million for non-compliance[88]. - Compliance with the Bermuda Economic Substance Act is required, and failure to comply could result in financial penalties and adverse effects on the company's operations[83]. - The company may incur additional costs related to climate-related disclosures as mandated by the SEC, impacting financial performance[163]. - The company is required to report sustainability and ESG-related information under the Corporate Sustainability Reporting Directive (CSRD) starting January 1, 2025, which will involve significant time and costs[160]. - The company may face reputational damage and financial penalties if found in violation of sanctions laws when operating in sanctioned jurisdictions[169]. Shareholder Information - The company has 43,900,000 common shares outstanding as of March 20, 2024, out of an authorized share capital of 140,010,000 common shares[191]. - The largest shareholder, Drew Holdings, owns 31.5% of the company's shares, which may limit other shareholders' influence over key transactions[203]. - The company completed its initial public offering (IPO) in the U.S. in April 2023, issuing 7,720,000 common shares at an offering price of $5.80 per share, followed by an additional 910,000 shares in May 2023[219]. - As an "emerging growth company," the company is subject to reduced disclosure requirements and may not be required to comply with certain auditor attestation requirements[222]. - The company may incur expenses that reduce cash available for dividends, impacting shareholder returns[210].

Financial Performance - Total operating revenues for the nine months ended September 30, 2023, were $18.4 million, a 100% increase compared to the same period in 2022[22]. - Net loss for the nine months ended September 30, 2023, was $3.1 million, an increase of $1.7 million from the prior year[23]. - EBITDA increased by $11.7 million to $10.3 million for the nine months ended September 30, 2023, compared to a loss of $1.4 million in the same period in 2022[35]. - The company reported a net loss attributable to shareholders of $1.95 million for the three months ended September 30, 2023, compared to a loss of $0.44 million for the same period in 2022[69]. - For the three months ended September 30, 2023, the net loss was $1,954,000 compared to a net loss of $437,000 for the same period in 2022, representing a significant increase in losses[113]. - Basic and diluted loss per share for the three months ended September 30, 2023, was $(0.05), compared to $(0.01) for the same period in 2022[112]. Revenue and Earnings - The average daily time charter equivalent (TCE) earnings were $23,400 per day, with the fleet operating for a total of 817 days[23]. - The company reported total operating revenues of $10.2 million for the three months ended September 30, 2023, and $18.4 million for the nine months ended September 30, 2023, with time charter revenues contributing significantly[69]. - Time charter revenues for the three months ended September 30, 2023, amounted to $10,241,000, with index-linked charters contributing $7.6 million[115]. Expenses - Vessel operating expenses increased by $5.0 million or 100%, with an average vessel operating expense per day of $6,100[26]. - General and administrative expenses rose by $1.3 million or 82%, primarily due to increased administrative costs following the IPO[29]. - Interest expense for the three months ended September 30, 2023, was $6,944,000, a substantial increase from $571,000 in the same period of 2022[114]. - Interest paid, net of capitalized interest, amounted to $3.2 million for the three months ended September 30, 2023[76]. Cash Flow and Liquidity - Net cash used in operating activities increased by $1.2 million to $1.9 million for the nine months ended September 30, 2023, compared to $0.8 million for the same period in 2022, primarily due to working capital movements[56]. - Net cash used in investing activities was $384.1 million for the nine months ended September 30, 2023, a significant increase of 506% compared to $63.4 million for the same period in 2022[55]. - Net cash provided by financing activities surged to $398.6 million for the nine months ended September 30, 2023, representing a 633% increase from $54.4 million in the same period of 2022[55]. - Cash and cash equivalents at the end of the period were $12.8 million, up from $1.5 million at the end of September 2022[74]. - The company has a $15.0 million revolving credit facility available until December 31, 2023, with an interest rate of LIBOR plus a margin of 8% per annum[51]. Debt and Financing - As of September 30, 2023, the company had principal debt outstanding of $436.3 million[38]. - Total debt as of September 30, 2023, is $421.854 million, a significant increase from $67.440 million as of December 31, 2022, representing a growth of approximately 525%[125]. - Long-term debt, net of deferred finance charges, stands at $405.189 million as of September 30, 2023, compared to $60.437 million at the end of 2022, indicating an increase of about 572%[125]. - The company has drawn $200 million in financing for scheduled delivery installments of newbuildings in the nine months ended September 30, 2023, compared to $47.2 million in the same period of 2022[131]. Assets and Equity - As of September 30, 2023, total assets increased to $560.4 million from $177.8 million as of December 31, 2022, representing a growth of 215%[72]. - Total shareholders' equity increased to $132.6 million as of September 30, 2023, compared to $90.3 million at the end of 2022, reflecting a growth of 47%[72]. - The total carrying value of newbuildings as of September 30, 2023, was $108,767,000, down from $176,145,000 at the end of 2022[118]. Shareholder Information - The company completed its IPO in April 2023, raising gross proceeds of $50.0 million, which are being used for vessel acquisitions and working capital[37]. - The company issued 8,630,000 common shares at $5.80 per share in April 2023, generating net proceeds of $44.9 million to alleviate concerns over its ability to continue as a going concern[59]. - As of September 30, 2023, Drew holds 30.85% of the Company's outstanding common shares, while Affinity holds 8.13%[151][157]. Commitments and Contracts - The company has outstanding commitments under six newbuilding contracts totaling $331.474 million, with $316.5 million to be funded by CCBFL and Jiangsu[150]. - The company has six vessels in operation and agreements to acquire six additional dual-fueled Newcastlemax dry bulk vessels, expected to be delivered by July 2024[81]. - The company has drawn $367.3 million on sale leaseback financing in the nine months ended September 30, 2023, compared to $74.9 million in the same period of 2022[120].

Financial Performance - Total operating revenues for the six months ended June 30, 2023, were $8.2 million, a 100% increase compared to $0 in the same period in 2022[23] - EBITDA improved by $5.2 million to $4.2 million for the six months ended June 30, 2023, compared to a loss of $1.0 million in the same period in 2022[36] - The company reported a net loss attributable to shareholders of $1.1 million for the six months ended June 30, 2023, compared to a loss of $1.0 million in the same period in 2022[69] - The company reported a net loss of $1.1 million for the three months ended June 30, 2023, compared to a net loss of $0.6 million for the same period in 2022[74] - For the three months ended June 30, 2023, the net loss was $1.1 million, compared to a net loss of $0.6 million for the same period in 2022, reflecting an increase in losses of approximately 83.3%[113] - Basic and diluted loss per share for the three months ended June 30, 2023, was $(0.03), consistent with the loss per share for the same period in 2022[112] Revenue and Expenses - Time charter revenue increased by $8.2 million or 100%, with vessels earning an average daily time charter equivalent (TCE) of $25,700/day over 330 operational days[24][26] - Vessel operating expenses rose by $2.0 million or 100%, with an average vessel operating expense of $6,200 per day for the six months ended June 30, 2023[28] - General and administrative expenses increased by $0.8 million or 80%, primarily due to higher administrative costs following the company's IPO[30] - Time charter revenues for the six months ended June 30, 2023, amounted to $8.2 million, with $4.8 million generated from index-linked charters[115] - Interest expense for the three months ended June 30, 2023, was $4.7 million, significantly higher than $0.3 million for the same period in 2022, indicating a substantial increase in financing costs[114] Capital and Financing Activities - The company completed its IPO in April 2023, raising gross proceeds of $50.0 million, with net proceeds of $44.9 million used for corporate purposes[38] - The company raised $44.9 million in net proceeds from its IPO in April 2023, issuing 8,630,000 common shares at $5.80 per share[60] - The company drew $20.6 million in financing for scheduled pre-delivery installments, compared to $6.8 million in 2022, with a balance of $41.2 million as of June 30, 2023[49] - The company has drawn $247.6 million in sale leaseback financing for newbuildings in the six months ended June 30, 2023, compared to $74.9 million in the same period of 2022, indicating a significant increase in financing activities[121] - The company drew $200.0 million in the six months ended June 30, 2023, compared to $27.2 million in 2022, to pay scheduled delivery installments for newbuildings[131] Assets and Liabilities - As of June 30, 2023, total assets increased to $459.8 million from $177.8 million as of December 31, 2022, representing a growth of 158%[72] - Cash and cash equivalents rose to $24.2 million from $0.3 million, a significant increase of 8,033%[76] - Total liabilities increased to $325.4 million from $87.5 million, marking a rise of 271%[72] - Shareholders' equity improved to $134.4 million from $90.3 million, an increase of 49%[72] - As of June 30, 2023, total debt net of deferred finance charges increased to $305.9 million from $67.5 million as of December 31, 2022, reflecting a significant rise in long-term debt[125] Fleet and Operations - The company took delivery of the fifth newbuilding vessel, "Mount Matterhorn," in July 2023, expanding its fleet to five operational vessels[19] - LNG bunkering operations were successfully completed for the vessels "Mount Norefjell" and "Mount Matterhorn" in July 2023[20] - The company has agreements to acquire eight dual-fueled Newcastlemax dry bulk vessels, expected to be delivered by July 2024[81] - The company has eight vessels under construction, with a total cost of $19.2 million for the installation of exhaust gas cleaning systems[147] - The remaining contracted installments payable on delivery to New Times Shipyard as of June 30, 2023, are approximately $441.5 million, highlighting ongoing commitments for newbuildings[122] Financing Arrangements - The company has entered into sale leaseback financing arrangements with AVIC and CCBFL for its newbuildings, with significant financing amounts secured for vessel acquisitions[41][47] - The average bareboat rate per day under sale leaseback arrangements is $16,567, with payments made quarterly in advance or arrears depending on the arrangement[52] - The carrying value of newbuildings financed by CCBFL increased to $101.1 million as of June 30, 2023, from $91.3 million as of December 31, 2022[49] - The carrying value of vessels and equipment financed by AVIC was $286.8 million as of June 30, 2023, with a balance under the facility of $250.8 million[131] - The first purchase option for vessels under sale leaseback agreements is set at $56.9 million in year 3, declining to $47.2 million after year 7[127] Corporate Governance and Agreements - The Corporate Support Agreement with Magni includes compensation of $2.7 million for services provided, fully paid following the delivery of the first four vessels in the six-month period ended June 30, 2023[153] - Affinity holds 10.3% of the Company's outstanding common shares and acts as a broker for the twelve newbuilding contracts without any consideration paid from the Company[154] - The authorized share capital of the Company is $140,010,000, represented by 140,010,000 authorized common shares[156] - The company has received assurance from the Bermuda Minister of Finance for tax exemption on income and capital gains until March 31, 2035, providing a favorable tax environment for operations[109]