Himalaya Shipping .(US:HSHP)2023-11-15 21:26Financial 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].