Himalaya Shipping .(US:HSHP)2024-05-23 10:58Financial 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].