HSHP

Welcome to Himalaya Shipping Q2 2026 conference call. For the first part of this call, all participants will be in a listen only mode. Afterwards, there will be a question and answer session. To ask a question during the Q&A, please press five star on your telephone keypad. To withdraw your question, you may do so by pressing five star again. This call is being recorded. I will now hand it over to CEO, Lars-Christian Svensen. Please begin.

Thank you, operator. Welcome to the Q2 2026 conference call for Himalaya Shipping. My name is Lars-Christian Svensen, and I will be joined here today by our CFO, Vidar Hasund. Before we start the presentation, I would like to remind you that we will be discussing matters that are forward-looking. These assumptions reflect the company's current views regarding future events and are subject to risks and uncertainties. Actual results may differ materially from those anticipated. I will now continue with the highlights of the quarter. We reported a net profit of $24.6 million and an EBITDA of $44 million. The time charter equivalent earnings for the quarter was approximately $50,600 per day. We entered into a new index time charter agreement for the Mount Emai for a period of 12-14 months at a significant premium to the prevailing index.

We also converted four of our vessels from index to fixed rate contracts for the month of June at an average of $56,500 per day. Cash distributions for the quarter totaled $0.59. In subsequent events, we achieved time charter equivalent earnings for July 2026 of about $51,200 per day, and we declared a cash distribution of $0.22 for the month. We also entered into a new time charter agreement for the Mount Aconcagua for a period of 16-18 months at an index-linked rate, also at a significant premium to the Baltic Capesize Index. Lastly, we converted two of our vessels from index links to fixed rates from 1st of August until 31st of December at an average rate of $51,200 per day. With that, I will now pass the word to Vidar.

Thank you, Lars-Christian. Himalaya Shipping reports a net profit of $24.6 million in earnings per share of $0.52 for Q2 2026 compared to a net profit of $1.1 million in earnings per share of $0.02 for Q2 2025. Operating profit was $36.7 million and EBITDA was $44 million for the quarter, compared to operating profit of $13.6 million and EBITDA of $20.9 million for the same period last year. Operating revenues were $53.7 million for Q2 2026, compared to $29.9 million for the same quarter in 2025. The increase in revenues is due to higher time charter equivalent earnings achieved, which is up from $28,400 in Q2 2025 to $50,600 in Q2 2026. Vessel operating expenses were $7.1 million in Q2 2026 and unchanged from the same period last year. The average OpEx per day per vessel was $6,500.

G&A for the fourth quarter was $1.9 million compared to $1.5 million in Q2 2025. The increase is due to consolidation of Peak Maritime Management AS, which was previously named 2020 Bulkers Management AS. Interest expense was $12.4 million in Q2 2026, which is a $0.4 million decrease compared to the same period in 2025 due to a lower average loan principal outstanding in Q2 2026 as a result of loan repayments. Cash and cash equivalents were $34.8 million at the end of the quarter. Minimum cash requirement under our sale-leaseback financing is $12.3 million. Outstanding balance on the sale-leaseback financing was approximately $688 million at the end of the second quarter, down from approximately $694 million at the end of the first quarter, reflecting scheduled repayments. Cash flow from operations was $34.2 million for the second quarter, compared to $8.3 million for the same period in 2025.

Himalaya Shipping has declared total cash distributions to shareholders of $0.59 per share for the months of April, May, and June 2026. That completes the financial section, and back to you, Lars-Christian.

Thank you, Vidar. Before I will guide you through our market section, here are some company updates. Our fleet of 12 modern Newcastlemaxes with dual-fuel LNG is in the top 1% emission rating for large bulk carriers. The attractive financing, combined with a very clear capital allocation structure, has led to 31 monthly consecutive dividends. In Q2 2026, this amounts to $0.59. Most of our fleet is fixed out on long-term index-linked contracts with conversion options, and the all-in cash breakeven equivalent to the Baltic Capesize Index is about $17,500 per day. Every time you see the Baltic Capesize Index above $17,500, Himalaya Shipping is making money. Our preferred commercial strategy is still to charter the majority of our vessels out on index-linked charters.

That allows us to capture the upside at each given market rise and also gives us good flexibility to convert to fixed rates with our solid counterparts when we see value on the forward FFA curve. Currently, 10 out of our 12 ships are exposed to the spot market to capture what we believe will be a continued strong second half of the year. To illustrate our fleet and commercial performance, we have the last three years traded at an average 48% premium to the Baltic Capesize Index and a 25% premium to peers. This is achieved by extra cargo intake on our vessels and top-tier speed and consumption design on our fleet. We always strive to have as many tools as possible to navigate this volatile market so that we can turn our position quickly from long to short, or vice versa, should we see a clear trend.

Here you can see our dividend capacity based on various rate scenarios for a standard Capesize vessel. When the Baltic Capesize Index trades around today's levels at about $40,000 per day, the company will yield about 18%. When we see moves around the $60,000 per day range, we will produce a yield of around 34%. When we see $100,000 per day on the Baltic Capesize Index, Himalaya Shipping will yield close to 65% on the current share price. Now let's have a look at the market. Q1 started out with the best Capesize and Newcastlemax market registered in 10 years. Q2 did not want to fare any worse, and we have had the best Q2 on record in 16 years.

Iron ore exports are at an all-time high for the season, and the continued flows from Guinea with Bauxite, and now also Iron Ore, has been key drivers to maintain momentum. The structural ton-mile change in the Capesize and Newcastlemax trades over the last few years has proven capable of lifting the floor of the market to a new level. Ton-mile in Q2 for Capesize and Newcastlemax increased 4.9% year-over-year. The bauxite volumes from Guinea contributed a 7.7% increase year-over-year, and the global iron ore trades assisted with a 2% increase. In the current geopolitical landscape, coal has now also returned to Capesize and Newcastlemax trades with a 15% ton-mile increase year-over-year.

Looking at the pure export data year-over-year, Iron Ore exports from Brazil was up 4%, and Australian iron ore volumes were up 5% in Q2 on the back of fewer weather-related logistical interruptions and solid demand from China. As discussed in the previous slide, we saw the global iron ore exports are continuing to increase. To put this in perspective, the Chinese seaborne iron ore imports hit an all-time high for Q2, as you can see on the top right graph. This again emphasizes the Chinese hunger for high-grade iron ore, which can be found outside the country's borders. In addition, the Chinese imported iron ore inventories are down from the peak and below the 12-month average in the same period.

As we have discussed in previous reports, the domestic iron ore content is reported to be around 15%, but the imported volumes from Brazil and Guinea contains an iron ore content of mid to high 60%. This has led to a slowdown in domestic Chinese production, and higher grade iron ore from overseas still remains a preference. The unsung Capesize hero, Bauxite, is continuing to impress. After record bauxite output from Guinea in 2025, new export records have been registered so far in 2026, which you can see from the left graph. In conjunction with the increasing volumes departing the country, you can also see that the bauxite is taking over more market share from the other commodities and is now responsible for 18% of the total cargo transported on Capes and Newcastlemaxes.

This plays directly into the structural ton-mile story that we see unfolding and that we believe will be a driver for years to come. The Simandou mine is now up and running, and the first iron ore volumes from this mine commenced in November in 2025. Target remains at 120 million tons of exported high-grade iron ore per annum to the market. As you can observe from the right graph, export volumes have caught momentum in 2026. A 15-20 million ton projected contribution in the first year of operation has so far created further tightness in the Atlantic Basin. We are also monitoring closely the capacity increase from Vale, which can add strength to an already focused Atlantic Basin to boost ton-mile further. We have seen from other segments that order books can increase quickly.

However, in Capesize and Newcastlemax, this has been a slower moving operation. We currently observe a 16% order book of the total existing Capesize fleet. The active shipyards are still preferring to build tankers, LNG carriers, container, and car carriers to maximize profit margins. As a comparison to other shipping segments, you can see from the right graph that a Capesize order book to fleet ratio is still the most compelling in the large shipping space. In addition to the low order book, the current Capesize and Newcastlemax fleet is aging fast. Around 46% of the total fleet was built between 2009 and 2015. That means that 26% of the fleet will be over 20 years of age in 2030.

As of now, we have visibility on the supply for the next two years, making it difficult to add any meaningful large dry bulk capacity in time to deal with the rapidly aging fleet and the additional strong vessel demand from the market. We continue to see a significant increase in dry docks due to mandatory special surveys required on merchant vessels every five years. 12% of the entire Capesize fleet was delivered in 2011 and will have to undergo 15-year special surveys in 2026. There will be five and 10-year special surveys as well, meaning around 24% of the total Capesize and Newcastlemax fleet will be competing for dry dock space this year. We estimate a total of 1.7% additional off-hire on the total fleet due to dry docks alone in 2026, not factoring in potential congestion and waiting time.

So far, though, only 30% of the scheduled dry docks for 2026 has been completed, which means that about 70% of the required vessels will seek dry dock before year-end, which could further tighten the Newcastlemax market. Thank you very much. With that, I will now pass the word back to the operator and welcome any questions you might have.

Thank you. We will now start the Q&A session. If you wish to ask a question, please press five star on your telephone keypad. To withdraw your question, you may do so by pressing five star again. There will be a brief pause while questions are being registered. Our first question will be from the line of Even Kolsgaard from Clarksons Securities. Please go ahead. Your line will now be unmuted.

Hi. Thank you for taking my question. I think you have a compelling story for the second half of the year. But I have a question related to the first quarter of next year. Because if you just look at, you have the Simandou mine obviously wrapping up. You have the exceptional coal trade, at least for the second quarter. And if you look at the first quarter for coal shipments this year, it was pretty weak. I guess you have some upside there as well in the first quarter of 2027. And then on top of that, you have the potential effect from El Niño and potential drier Brazil and even better shipments from Brazil. How do you think about the first quarter of 2027?

We saw you took some coverage for the second half of this year, but at what point could you consider taking coverage for the first quarter of next year? Thank you.

Thank you for the question. I think as we saw this year, Q1 has become more correlated to the other quarters than we have seen in the past, much as you mentioned, the bauxite volumes and now also the Simandou volumes coming on stream. So we think the market as an all overall when it comes to the quarters will be more balanced than what it has been in the past. When the timing is right to lock in Q1 or not, that depends. But if you see now the value of the whole curve for 2027 is around $29,500, and Q1 trading at $25,500, the spread is not daunting at all. For now, we would like to ride it a little bit longer. The timing is always difficult to call. The second half, we think has more legs to go.

We also think the Q1 contract will move up in time. Right now it is too early to cover, in our opinion.

Got it. Just on the asset side, because the spot market is obviously super strong, time charter rates ended up. But in the second-hand market, there has been very few transactions and values, at least broker values, have remained fairly flat. How do you see the asset market today? Why is there so little or few transactions, and where do you think the next transaction price will be compared to today?

Challenging question, but asset prices, they albeit flat, they have been flat at a very high level. We do not think asset prices will come off anytime soon. Of course, to take the next leap up from where we are now, it also requires higher freight rates than what we see. Right now we see market trading around $40,000, and I will not be surprised that you see asset prices moving higher if the second half performs the way we think it will.

Okay. Thank you for your answers. That is all from me.

Thank you very much.

Thanks, Even. As a reminder, if you wish to ask a question, please press five star on your telephone keypad. We will have a brief pause while questions are being registered. As we have no questions in the queue, I will hand it back to Lars-Christian Svensen for closing remarks.

Thank you all very much for dialing in, and we hope to address you again in a quarter's time, and hopefully the market has improved even further. Have a nice day. Thank you.

Welcome to Himalaya Shipping Q1 2026 Financial Results presentation. Today's call is being recorded. If you have any objections, please disconnect at this time. For the first part of this call, all participants will be in a listen only mode. Afterwards, there will be a question-and-answer session. I'll now turn the call over to CEO, Lars-Christian Svensen. Please begin.

Thank you, Operator. Welcome to the Q1 2026 Conference Call for Himalaya Shipping. My name is Lars-Christian Svensen, and I will be joined here today by our CFO, Vidar Hasund. Before we start the presentation, I would like to remind you that we will be discussing matters that are forward-looking. These assumptions reflect the company's current views regarding future events and are subject to risks and uncertainties. Actual results may differ materially from those anticipated. I will now continue with the highlights of the quarter.

We reported a net profit of $5 million and an EBITDA of $24.5 million. The Time Charter Equivalent earnings for the quarter was approximately $32,300 per day. We entered into new index time charter agreements for both the Mount Ita and the Mount Matterhorn for a period of 11 months to 14 months and 12 months to 14 months, respectively, at significant premiums to the prevailing indices.

Cash distributions for the quarter totaled $0.18. The company also entered into contract to acquire an additional 4,200 shares in 2020 Bulkers Management AS from 2020 Bulkers Ltd. for NOK 1.1 million, which will be effective on April 1st, 2026, increasing our total ownership from 40% to 54%.

In subsequent events, we achieved Time Charter Equivalent earnings for April 2026 of about $41,600 per day, and we declared a cash distribution of $0.15 for the same month. We also entered into a new Time Charter Agreement for the Mount Emei for a period of 12 months to 14 months at an index-linked rate, also at a significant premium to the Baltic Capesize Index. With that, I will now pass the word to Vidar.

Thank you, Lars-Christian. Himalaya Shipping reports a net profit of $5 million, and earnings per share of $0.11 for Q1 2026, compared to a net loss of $6.4 million and loss per share of $0.14 for Q1 2025. Operating profit was $17.2 million and EBITDA was $24.5 million for the quarter, compared to operating profit of $6.5 million and EBITDA of $13.8 million for the same period last year. Operating revenues were $33.6 million for Q1 2026, compared to $22 million for the same quarter in 2025.

The increase in revenues is due to higher Time Charter Equivalent earnings achieved, which is up from $21,100 in Q1 2025 to $32,300 in Q1 2026. Vessel operating expenses were $7.4 million in Q1 2026, compared to $6.9 million in Q1 2025. The increase is primarily due to higher costs for crew spares, service fees and insurance costs.

The average OPEX per day was $6,800 compared to $6,400 per day during Q1 2025. G&A for the fourth quarter was $1.2 million compared to $1.1 million in Q1 2025. Interest expense were $12.4 million in Q1 2026, which is a $0.7 million decrease compared to the same period in 2025 due to a lower average loan principal outstanding in Q1 2026 as a result of loan repayments.

Cash and cash equivalents were $24.5 million at the end of the quarter. Our minimum cash requirement under our sale leaseback financing is $12.3 million. Outstanding balance on the sale leaseback financing was approximately $694 million at the end of the first quarter, down from approximately $701 million at the end of 2025, reflecting scheduled repayments. Cash flow from operations was $9.8 million for the first quarter, compared to $0.3 million for the same period in 2025.

Himalaya Shipping have declared total cash distributions to shareholders of $0.18 per share for the months of January, February and March 2026. That completes the financial section. Back to you, Lars-Christian.

Thank you, Vidar. Before I will guide you through our market section, here are some company updates. Our Fleet of 12 modern Newcastlemax with dual-fuel LNG is in the top 1% emission rating for large bulk carriers. The attractive financing, combined with a very clear capital allocation structure, has led to 28 monthly consecutive dividends.

In Q1 2026, this amount to $0.18. Most of our fleet is fixed out on long-term index-linked contracts with conversion options, and the all-in cash breakeven equivalent to the Baltic Capesize Index is about $17,300 per day. i.e., every time you see the Baltic Capesize Index above $17,300, Himalaya Shipping is turning a profit. Our preferred commercial strategy is still to charter out the majority of our vessels on index-linked charters.

That allows us to capture the upside at each given market rise and also gives us good flexibility to convert fixed rates with solid counterparts when we see value on the forward FFA curve. Currently, 11 out of our 12 ships are exposed to the spot market to capture what we believe will be a continued strong year ahead.

To illustrate our fleet and commercial performance, you can see on this slide that since inception, the Himalaya vessels have traded to an average 48% premium to the Baltic Capesize Index and a 25% premium to peers. This is achieved by the extra cargo intake on our vessels and top-tier speed and consumption design on our fleet.

We always strive to have as many tools as possible to navigate this volatile market so that we can turn our position quickly from long to short or vice versa should we see a clear trend. Here you can see our dividend capacity based on various rate scenarios for a standard Capesize vessel. When the Baltic Capesize Index trades around today's levels, $40,000 a day, the company will yield about 18%.

When we see moves to around the $50,000 per day range, we will produce a yield of around 28%. When we see $60,000 per day on the Baltic Capesize Index, Himalaya will yield close to 35% on the current share price. Now let's have a look at the market. We had the best start to the Capesize in Newcastlemax market this year since 2010.

Much of this can be credited to the large bauxite volumes exported from Guinea, slowdown in speed on the overall fleet, and global port waiting time has also increased. We believe that the structural ton-mile change in the Capesize Newcastlemax trades can drive this market further, as we will be discussing in the following slides. Ton-mile in Q1 for Capesize increased 4.3% year-over-year. We can yet again thank the increased bauxite volumes from Guinea, which contributed a 23% increase year-over-year and a 4.8% increase from global iron ore trades. Year-over-year iron ore exports from Brazil was down 1%. Australian iron ore volumes were up 4% in Q1. As discussed in the previous slide, we saw the global iron ore exports are continuing to increase.

Albeit a flat quarter compared to last year from Brazil, the Chinese seaborne iron ore imports are up, which again emphasized the Chinese hunger for high-grade iron ore, which can be found outside the country's borders. The Chinese imported iron ore inventories are down from the peak, and we keenly observed from the bottom right graph that inventories correlate well with the increased Chinese iron ore consumption over the last few years.

As we have discussed in previous reports, the domestic Chinese Fe content is reported to be around 20%, but the imported volumes from Brazil and Guinea contains an Fe content of mid to high 60s. This has led to a slowdown in domestic Chinese production, and higher-grade iron ore from overseas still remains a preference. We have discussed the bauxite trade extensively in several quarterly presentations, and for good reason.

After a record bauxite output from Guinea in 2025, new export records have been registered so far in 2026, which you can see from the left graph. In conjunction with the increasing volumes departing the country, you can also see that the bauxite is taking over more market share from the other commodities and is now responsible for 20% of the total cargo transported on Capes and Newcastlemaxes.

This plays directly into the structural ton-mile story that we see unfolding at the moment. The Simandou mine is now up and running, and the first iron ore volumes from this mine commenced in November 2025. Target remains at 120 million tons of exported high-grade iron ore per annum to the market.

As you can observe from the right graph, export volumes have caught momentum over the last few weeks, which indicates that the mine to vessel logistics are improving and further growth can be expected. We're also monitoring closely the capacity increase from Vale, which can add further strength to an already export-focused Atlantic basin to boost ton-mile further.

We have seen from other segments that order books can increase quickly. However, in Capesize and Newcastlemax, this has been a slow-moving operation. We keenly observe a 14% order book of the total existing Capesize fleet. Active shipyards are down 60% from the peak of 2008, making it challenging to build any fleet capacity that could distort the favorable supply dynamics over the next few years.

As a comparison to other shipping segments, you can see from the right graph that the Capesize order book to fleet ratio is still the most compelling in the large shipping space. In addition to the low order book, the current Capesize and Newcastlemax fleet is aging fast.

Around 46% of the total fleet was built between 2009 and 2015. That means that close to 30% of the fleet will be over 20 years of age in 2030. As it looks now, we have visibility on the supply for the next two years, making it difficult to add any meaningful large dry bulk capacity in time to deal with the rapidly aging fleet. We continue to see a significant increase in dry docks due to mandatory special surveys required on merchant vessels every five years.

12% of the entire Capesize fleet was delivered in 2011 and will have to undergo 15-year special surveys in 2026. There will be five and 10-year special surveys as well, meaning around 24% of the total Capesize and Newcastlemax fleet will be competing for dry dock space this year. We estimate a total of 1.7% additional off-hire on the total fleet due to dry docks alone in 2026, not factoring in potential congestion and waiting time. Thank you. I will now pass the word back to the operator and welcome any questions you might have.

Thank you. If you do wish to ask a question, please press five star on your telephone keypad. To withdraw your question, you may do so by pressing five star again. We will have a brief pause while questions are being registered. The first question is from the line of Eirik Kolskår from Clarksons Securities. Please go ahead. Your line will now be unmuted.

Thank you. My first question is towards the market outlook.

We do sound more optimistic than the broader market. Earlier today you reported calling this the start of a supercycle. Looking at the FFA curve and consensus, they are assuming lower rates than your view implies. Where do you think the market is getting it wrong? What do you see as the main drivers that take rates higher from where it is today?

Hi there. Well, if you look at the current FFA curve, then specifically Q3 and Q4, that has remained fairly stable over the last few months. At the same time, we've seen the tightness in Atlantic, which has also been a big contributor to the current high levels that we have. I don't think we've seen that fully priced yet in the forward curve.

Based on the volumes that we see, especially encouraging to see that the Simandou volumes are coming upstream and the very strong bauxite volumes we're seeing in Q1. Also, the structurally short Atlantic that we have now compared to three, four years ago, where we had more backhaul business from the Pacific into the Atlantic, which we don't really see much of anymore.

This structurally short Atlantic with more volumes coming on from Atlantic and out Pacific, we think that will have a positive effect on the future market as well. Which is naturally reflected in the fact that we have 11 out of our 12 ships in the spot market.

Yeah. Given that market outlook, you also have a share now that is trading well above the NAV today based on current broker values, which also gives you currency for potential acquisitions. Given your outlook and your stock as a potential currency, is fleet expansion something that you are considering?

We are always trying to make a creative business for the shareholders and also to try and grow the company. One of the reasons why we trade above our NAV, we have a very simple and transparent model. The investors know what they're buying. We have solid counterparts, and also we have a low G&A. I think it's a combination of many things. We're always going to be on the lookout to make the company more interesting for our shareholders.

Thank you. That's all from me.

Thank you.

Let me just remind you that if you do wish to ask a question, please press five star on your telephone keypad. It appears that we do not have any further questions at this time, so I'll hand it back to the speakers. Please go ahead.

Thank you very much for listening in, and we look forward to speak to you again the next quarter. Thank you very much.

Thank you.

Hello 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 five star on your telephone keypad. This call is being recorded. I'll now turn the call over to CEO Lars-Christian Svensen. Please begin.

Thank you, operator. Welcome to the Q4 2025 conference call for Himalaya Shipping. My name is Lars-Christian Svensen, and I will be joined here today by our CFO Vidar Hasund. Before we start the presentation, I would like to remind you that we will be discussing matters that are forward-looking. These assumptions reflect the company's current views regarding future events and are subject to risks and uncertainties. Actual results may differ materially from those anticipated. I will now continue with the highlights of the quarter. We reported a net profit of $13.5 million and an EBITDA of $33.3 million. The gross time charter equivalent earnings for the quarter was approximately $39,600 per day. We converted index-linked time charters for 4 vessels to fixed rate at an average rate of approximately $27,700 per day from January 1 to March 31, 2026.

We entered into a new time charter agreement for the Mount Elbrus until June 30, 2026 at a fixed rate of $30,000 per day, which thereafter will be converted into an index-linked rate reflecting a significant premium to the Baltic 5TC Index. We also executed a time charter agreement for the Mount Ita for a period of 11 to 14 months at an index-linked rate. This one also had a premium to the Baltic 5TC Index. Cash distributions for the quarter totaled $0.30. In subsequent events, we achieved time charter equivalent earnings for January 2026 of about $32,400 per day, and this morning we declared a dividend of $0.06 for the month.

In February this year, the company entered into an agreement with 2020 Bulkers Ltd. to purchase an additional 4,200 shares for a total ownership of 54% in 2020 Bulkers Management AS for NOK 1.1 million, which will be effective on April 1, 2026. With that, I will now pass the word to Vidar.

Thank you, Lars-Christian. Himalaya Shipping reports a net profit of $13.5 million and earnings per share of $0.29 for Q4 2025, compared to a net income of $1.1 million and earnings per share of $0.02 for Q4 2024. Operating profit was $26 million and EBITDA was $33.3 million for the quarter, compared to operating profit of $14 million and EBITDA of $21.3 million for the same period last year. Operating revenues were $42.1 million for Q4 2025, compared to $29.6 million for the same quarter in 2024. The increase in revenues is due to higher time charter equivalent earnings achieved, which is up from $27,800 in Q4 2024 to $39,600 in Q4 2025. Vessel operating expenses were $7 million in Q4 2025, compared to $6.8 million in Q4 2024. The increase is primarily due to higher costs for spares, consumables, and service fees.

The average OpEx per day was $6,400, compared to $6,200 per day during Q4 2024. G&A for the Q4 was $1.2 million, compared to $1 million in Q4 2024. The increase is primarily due to increased management fees and payroll accruals, partly offset by reduced costs for D&O insurance. Interest expense was $12.7 million in Q4 2025, which is a $0.4 million decrease compared to the same period in 2024 due to a lower average loan principal outstanding as a result of loan repayments. Cash and cash equivalents were $32.4 million at the end of the quarter. Minimum cash requirement under our sale leaseback financing is $12.3 million. Outstanding balance on the sale leaseback financing was approximately $700 million at the end of the Q4, down from $707 million at the end of the Q3, reflecting scheduled repayments.

Cash flow from operations was $24.8 million for the Q4. Himalaya Shipping have declared total cash distribution to shareholders of $0.30 per share for the months of October, November, and December 2025. That completes the financial section, and back to you, Lars-Christian.

Thank you, Vidar. Before I will guide you through our market section, here are some company updates. Our preferred commercial strategy is still to charter out the majority of our vessels on index-linked charters. That allows us to capture the upside at each given market rise and also gives us good flexibility to convert to fixed rates with our solid counterparts when we see value on the forward FFA curve. Currently, five out of our 12 ships will be on fixed rates until 31 March 2025, and thereafter we will have 11 out of 12 vessels exposed to the spot market to capture what we believe will be a strong year ahead.

To illustrate our fleet and commercial performance, you can see on this slide that since inception, the Himalaya vessels have traded to an average 48% premium to the Baltic Capesize Index and a 25% premium to peers. This is achieved by extra cargo intake on our vessels and top-tier speed and consumption design on our fleet. We always strive to have as many tools in our toolbox as possible so that we can turn our position quickly from long to short or vice versa when we see opportunities arise. Here you can see our unique dividend capacity based on various rate scenarios for a standard Capesize vessel. When the Baltic Capesize Index moves to $35,000 per day, the company will yield about 22%. When we see moves around the $40,000 per day range, we will produce a yield of around 28%.

When we see $55,000 per day on the Baltic Capesize Index, Himalaya will yield close to 50% on today's share price. Our fleet of 12 modern Newcastlemaxes with dual fuel LNG is in the top 1% emission rating for all large bulk dry carriers. The attractive financing, combined with a very clear capital allocation structure, has led to 27 monthly consecutive dividends. In Q4 2025, this amounted to $0.30. Most of our fleet is fixed out on long-term index-linked contracts with conversion options, and the all-in cash break-even equivalent to the Baltic Capesize Index is about $17,400 per day. i.e., every time you see the Baltic Capesize Index above $17,400 per day, Himalaya Shipping will make money. Now, let's have a look at the market. We have had the best start to the Capesize and Newcastlemax market this year since 2010.

Much of this can be credited to large iron ore export volumes from Brazil due to a warmer and less rainy January than history dictates. In addition, we have avoided large typhoons in Australia, which we experienced around this time in 2025, which has provided a steady supply of iron ore so far in 2026. Although we are pleased to see the short-term spikes, we also believe that the structural change in the Capesize and Newcastlemax trades can drive this market higher, which will be discussed in the following slides. Ton-mile in Q4 for Capesize increased 9% year-over-year thanks to a 21% increase in bauxite from Guinea and a 12% increase from the iron ore trades.

Year-over-year iron ore exports from Brazil and Australia was up 18% and 9% respectively in Q4, and bauxite from Guinea again surpassed expectations with a 30% year-over-year increase. As discussed in the previous slide, we saw the global iron ore exports set a new standard in 2025, especially with a strong Q4 from Brazil, which again emphasized the Chinese hunger for high-grade iron ore. The highest-grade iron ore comes from Brazil and Guinea, which explains the increase in ton miles. As a result, the Chinese imported iron ore inventories increased throughout 2025, but we keenly observed from the bottom right graph that even though the inventories are up, this correlates well with the increased Chinese consumption over the last few years.

As we have discussed in previous reports, the domestic Chinese Fe content is reported to be around 20%, but the imported volumes from Brazil and Guinea contain Fe content in the mid- to high 60s. This has led to a slowdown in domestic Chinese production, and high-grade iron ore from overseas still remains preferable and profitable. The Simandou mine is now up and running, and the first iron ore volumes from this mine commenced in November 2025. Over a 24-month ramp-up phase, the mine is targeting 120 million tons of high-grade iron ore per annum to the market. With the additional Vale capacity increased by 2026, we expect a total of 170 million tons of high-grade iron ore from the Atlantic, most of which will be exported to China. As you can see from the right graph, comparing these volumes to the low order book, the supply story strengthens further.

We have discussed the bauxite trade extensively in several quarterly presentations, and for good reason. After a record bauxite output from Guinea in 2025, new export records have been registered so far in 2026, which you can see from the left graph. In conjunction with the increasing volumes departing the country, you can also see the bauxite is taking over more and more share from the other commodities and is now responsible for 16% of the total cargo transported on capes and Newcastlemaxes. This plays directly into the structural ton-mile story that we see unfolding at the moment. We have seen from other segments that order books can increase quickly. However, in Capesize and Newcastlemax, this has been a slow-moving operation. We are at a 25-year record low, standing at 12% of the total existing Capesize fleet.

Active shipyards are down 60% from the peak of 2008, making it challenging to build any fleet capacity that could distort the favorable supply dynamics over the next few years. As a comparison to the other shipping segments, you can see from the right graph that Capesize order book to fleet ratio is by far the most favorable. In addition to the low order book, the current Capesize and Newcastlemax fleet is aging fast. Around 50% of the total fleet was built between 2009 and 2015, and close to 30% of the fleet will be over 20 years of age in 2030. As it looks now, we have clear visibility of supply for the next 3-4 years, making it difficult to add any meaningful large dry bulk capacity in time to deal with a rapidly aging fleet.

We continue to see a significant increase in dry docks due to mandatory special survey required on merchant vessels every five years. Vessels delivered in 2011 account for 12% of the total Capesize fleet and will need to undergo their 15-year special survey in 2026. Additionally, there will be five- and 10-year special surveys, meaning around 28% of the total Capesize and Newcastlemax fleet will be competing for dry dock space this year. We estimate a total of 1.4% additional off-hire on the total fleet due to dry docks alone in 2026, not factoring in potential congestion and waiting time. Thank you, and I will now pass the word back to the operator and we welcome any questions you might have.

Thank you. We'll now start the Q&A session. If you wish to ask a question, please press five-star on your telephone keypad. To withdraw your question, you may do so by pressing five-star again. There'll be a brief pause while questions are being registered. The first question will be from Ivan Kolskov from Clarkson Securities. Please go ahead, your line will now be unmuted.

Thank you. So I have a few questions on the commercial side as it comes to your time charter agreements. So you mentioned before that it's easier to get high premiums when rates are soft. And I can see in your presentation that your average premium has gone down from 42% to 41%. So could you talk about the pricing power you're seeing for upcoming renewals and for 2027? What do you think the average premium will be for your whole fleet?

Yeah, thank you for the question, and you are absolutely right. Historically, in the Capesize market, when you see markets down in around $10,000 range, it's much more convenient for us to get a big premium from our charterers simply because it's easier for them to navigate the volatile FFA markets. So when the market is low, our premiums are higher. When we then sit and renegotiate new agreements in a $30,000, $40,000 market, that means that the charterers are not able to pay the exact same premium, but with a small discount. We're not talking dramatic reductions, but obviously, if we could extend the entire fleet between the contracts in a very low market, we would definitely prefer to do so. We're trying now to time the vessels we have in high markets. We try to renew them in a shorter duration period of time so that we're able to see if we can beat the premium further down the line.

Got it. As it comes to the actual index, will it stick to the old one or will you transfer to the new Capesize benchmark?

For now, we're sticking to the old one as the FFAs are currently traded on that as well, and all our vessels are linked to the old index. So for now, it's business as usual. But obviously, this will be a dynamic change over time as it will become more and more common to link it all with the new indexes. But the premiums will then be a simple mathematical formula which we will adhere to achieve about the same upside in the end.

Okay, thank you. That's all from me.

Thank you.

Thank you, Ivan. As a reminder, if you wish to ask a question, please press a five-star on your telephone keypad. We'll have a brief pause while questions are being registered. As we have no one line up for questions, I will hand it back to the speakers for any closing remarks.

Thank you very much for taking the time to listen to us today, and hopefully, we'll hear you hear more from us in the next quarter. Thank you so much.

Thank you.