Financial Data and Key Metrics Changes - The company reported a net profit of $13.5 million for Q4 2025, compared to a net income of $1.1 million for Q4 2024, representing a significant increase [5] - EBITDA for Q4 2025 was $33.3 million, up from $21.3 million in Q4 2024 [5] - Operating revenues increased to $42.1 million in Q4 2025 from $29.6 million in Q4 2024, driven by higher time charter equivalent earnings [5] - Time charter equivalent earnings rose from $27,800 per day in Q4 2024 to $39,600 per day in Q4 2025 [5] - Cash distributions for the quarter totaled $0.30 per share [7] Business Line Data and Key Metrics Changes - The company converted index-linked time charters for 4 vessels to fixed rates at an average of $27,700 per day for the period from January 1 to March 31, 2026 [2] - A new time charter agreement for the Mount Elbrus was established at a fixed rate of $30,000 per day until June 30, 2026, with a subsequent conversion to an index-linked rate [3] Market Data and Key Metrics Changes - The Capesize and Newcastlemax market experienced the best start since 2010, attributed to large iron ore export volumes from Brazil and favorable weather conditions [10][11] - Year-over-year iron ore exports from Brazil and Australia increased by 18% and 9% respectively in Q4 [12] - The ton-mile for Capesize increased by 9% year-over-year, driven by a 21% increase in bauxite from Guinea and a 12% increase in iron ore trades [11] Company Strategy and Development Direction - The preferred commercial strategy is to charter out the majority of vessels on index-linked charters to capture market upside [8] - The company aims to maintain flexibility in converting to fixed rates when advantageous, with a focus on maximizing fleet performance [9] - The fleet of 12 modern Newcastlemaxes is positioned in the top 1% emission rating for large bulk dry carriers, emphasizing sustainability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural changes in the Capesize and Newcastlemax trades, which could drive market growth [11] - The company noted that the current low order book and aging fleet present favorable supply dynamics for the next few years [16] - There is a clear visibility of supply for the next 3-4 years, making it challenging to add significant dry bulk capacity [16] Other Important Information - Cash and cash equivalents stood at $32.4 million at the end of Q4 2025, with a minimum cash requirement of $12.3 million under sale leaseback financing [6] - The outstanding balance on sale leaseback financing was approximately $700 million, down from $707 million at the end of Q3 2025 [6] Q&A Session Summary Question: Pricing power for upcoming renewals and average premium expectations - Management indicated that historically, higher premiums are easier to achieve in lower market conditions, and they are trying to time vessel renewals to capture better premiums in high markets [19][20] Question: Transition to new Capesize benchmark - Management confirmed that they will continue using the old index for now, as it is still linked to current FFAs, but acknowledged that changes may occur over time [21]

Financial Data and Key Metrics Changes - The company reported a net profit of $13.5 million for Q4 2025, compared to a net income of $1.1 million for Q4 2024, representing a significant increase [5] - EBITDA for Q4 2025 was $33.3 million, up from $21.3 million in Q4 2024 [5] - Operating revenues increased to $42.1 million in Q4 2025 from $29.6 million in Q4 2024, driven by higher time charter equivalent earnings [5] - Time charter equivalent earnings rose from $27,800 per day in Q4 2024 to $39,600 per day in Q4 2025 [5] - Cash distributions for the quarter totaled $0.30 per share [7] Business Line Data and Key Metrics Changes - The company converted index-linked time charters for 4 vessels to fixed rates at an average of $27,700 per day for the period from January 1 to March 31, 2026 [2] - A new time charter agreement for the Mount Elbrus was established at a fixed rate of $30,000 per day until June 30, 2026, with a subsequent conversion to an index-linked rate [3] Market Data and Key Metrics Changes - The Capesize market experienced a strong start in 2026, attributed to increased iron ore export volumes from Brazil and a lack of significant weather disruptions [11] - Year-over-year iron ore exports from Brazil and Australia increased by 18% and 9% respectively in Q4 2025 [12] - The ton-mile for Capesize vessels increased by 9% year-over-year, driven by a 21% increase in bauxite from Guinea and a 12% increase in iron ore trades [11] Company Strategy and Development Direction - The company aims to charter out the majority of its vessels on index-linked charters to capture market upside and maintain flexibility [8] - The fleet has traded at an average of 48% premium to the Baltic Capesize Index since inception, indicating strong commercial performance [9] - The company maintains a clear capital allocation structure and has achieved 27 consecutive monthly dividends [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural changes in the Capesize and Newcastlemax trades, which could drive market growth [11] - The company noted that the current Capesize and Newcastlemax fleet is aging, with 50% built between 2009 and 2015, leading to a favorable supply dynamic for the next few years [16] Other Important Information - Cash and cash equivalents stood at $32.4 million at the end of Q4 2025, with a minimum cash requirement of $12.3 million under sale leaseback financing [6] - The outstanding balance on sale leaseback financing decreased to approximately $700 million, down from $707 million in the previous quarter [6] Q&A Session Summary Question: Pricing power for upcoming renewals and average premium expectations - Management acknowledged that premiums tend to be higher in softer markets, and while they expect some discount in a $30,000-$40,000 market, they aim to time vessel renewals strategically [19][20] Question: Transition to new Capesize benchmark - Management confirmed that they will continue using the old index for now, as it is still linked to current FFAs, but acknowledged that a transition to new indexes will occur over time [21]

Himalaya Shipping (NYSE:HSHP) Q4 2025 Earnings call February 10, 2026 09:00 AM ET Speaker2Hello and welcome to Himalaya Shipping Q4 for 2025 conference call. For the first part of this call, all participants are in a listen-only mode. Afterwards there'll be a question-and-answer session. To ask a question during the Q&A, please press 5-star on your telephone keypad. This call is being recorded. I'll now turn the call over to CEO Lars-Christian Svensen. Please begin.Speaker1Thank you, operator. Welcome to th ...