Himalaya Shipping posts $33.3 million net income in third quarter of 2026
Key Facts
Himalaya Shipping announced on November 10 preliminary, unaudited results for the three and nine months ended September 30, 2026, reporting net income of $33.3 million and EBITDA of $52.7 million in the third quarter. Operating revenue was $62.6 million, compared with $37.9 million in the same period a year earlier. The company attributed the increase to a rise in average gross daily time charter equivalent (TCE) earnings to about $58,400, from about $35,600 a year earlier. Time charter revenue was $62.2 million in the quarter. The company’s vessels earned an average rate above the Baltic 5TC 180 Capesize index, which recorded $41,369 per day over the same period.
Operating profit rose to $45.4 million in the third quarter, from $22.0 million in the corresponding period of 2025, while earnings per share were $0.71, compared with $0.21. The Baltic 5TC 180 Capesize index averaged about $41,369 per day, compared with $36,303 in the second quarter of 2026. Across its fleet, the company said its 12 vessels achieved average gross daily TCE earnings of about $58,400 during the quarter. Operating data showed 1,104 vessel operating days and a utilization rate of 99.7% in the three months ended September 30. These figures show the fleet’s operating returns alongside improved market rates during the period.
In explaining the change in shipping activity, the company said bauxite tonne-miles rose 26.6% year over year in the third quarter, while coal tonne-miles declined 9.8%. Interest expense also fell by $0.5 million compared with the third quarter of 2025, which the company attributed to a lower average principal balance on outstanding loans following quarterly repayments. Cash and cash equivalents stood at $39.7 million on September 30, with $10 million available to draw under the Drew facility. Management said the current cash break-even point is $24,600 per vessel per day. These figures provide a picture of cash flows, liquidity and the daily revenue needed to cover the break-even point, alongside operating performance in the quarter.
The company had converted index-linked time charter contracts for two vessels to fixed rates averaging about $51,200 per day for the period from August 1 through December 31, 2026. It also entered into a new index-linked time charter agreement for the Mount Aconcagua for 16 to 18 months, which it said includes a significant premium to the Baltic 5TC 180 Capesize index. On November 3, it announced two time charter agreements for vessels with its current charterer, with minimum terms through October 1, 2027, followed by a three-year automatic renewal structure. These contracts provide details on arrangements for operating the company’s vessels in coming periods, while index-linked rates remain tied to movements in the index. The company did not specify a financial value for the new agreements in its earnings announcement.
For October, Himalaya Shipping said average gross TCE earnings were about $50,900 per day and announced a cash distribution of $0.20 per share for the month. This monthly return followed the third-quarter performance, but relates to October and is not included in results for the months ended September 30. The company’s shares, which trade under the ticker HSHP, closed at $15.93 on November 10. The company scheduled a call to discuss results for November 11 at 9:00 a.m. Eastern Time, corresponding to 3:00 p.m. Central European Time. Its next quarterly report is scheduled for February 10, 2027, for the fourth quarter of 2026.