LNG-powered bulker owner Himalaya Shipping achieved average time charter equivalent earnings of about $30,000 per day in February.
Tor Olav Trøim’s Himalaya said in a commercial update that the company’s six vessels trading on a fixed time charter earned $28,300 per day, gross, including average daily scrubber and LNG benefits on five vessels of about $3,100 per day.
Moreover, the company’s three vessels trading on index-linked time charters earned about $33,300 per day, gross, including average daily scrubber and LNG benefits of about $2,000 per day.
The Baltic 5TC Capesize Index averaged $21,557 during February 2024.
In January, Himalaya achieved average time charter equivalent earnings of about $28,400 per day.
Charter converted
Himalaya took delivery in January of three 210,000-dwt Newcastlemax LNG dual fuel newbuildings from China’s New Times Shipyard.
Following these deliveries, the company now welcomed 9 of twelve vessels from New Times.
The company said in the update it has agreed to convert the index linked charter to a fixed charter rate for Mount Etna from April 1, 2024 to December 31, 2024 at $40,810 per day plus scrubber premium according to the terms of its existing time charter agreement.
Also, the average cash-break even is about $24,600 per vessel per day, meaning that Mount Etna should generate $4.4 million of free cash-flow to equity (assuming US$2,500 per day of scrubber benefit) for the remainder of the year, it said.
Currently, Himalaya has 8 vessels trading on index linked charters.
Once all vessels are delivered, which are expected to be by June 2024, Himalaya will have 11 vessels on index linked charters which can be converted to the prevailing FFA market rates in similar fashion as Mount Etna, it said.
One ship is fixed on a fixed time-charter rate.
Himalaya said its board has approved a cash distribution of $0.03 per share for January.
