Himalaya Shipping Ltd. Common Shares

Welcome to Himalaya Shipping Q1 2025 results presentation conference call. For the first part of this call, all participants are in a listen-only mode. Afterwards, there will be a question and answer session. To ask a question, please press 5 star on your telephone keypad. This call is being recorded. And I will now turn the call over to CEO Lars Christian Svensson. Please begin.

Thank you, Operator. Welcome to the Q1 2025 conference call for Himalaya Shipping. My name is Lars Christian Svensson, and I will be joined here today by our CFO, Vidar Hasun. 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 loss of $6.2 million and an adjusted EBITDA of $13.8 million. The gross time charter equivalent earnings for the quarter was approximately $21,100. We also entered into a new time charter agreement on the Mount Norifjell for 14 to 38 months at a Baltic index rate higher than the average premium on our current charters. The same vessel, Mount Norifjell and the Mount Huak, was later in the quarter converted from index link time charges to fixed rates from 1st of April until 31st December 2025 at $32,000 and $31,500 gross respectively. The company also completed the private placement of approximately $15 million, issuing 2.65 million new shares at 60.5 Norwegian krones per share. Total cash distributions for the quarter total 5 cents per share for the months of January to March. In subsequent events, we achieved a time chart equivalent for April 2025 of approximately $25,800 per day gross. We also declared a dividend of 2.5 cents per share for the month of April. Last but not least, we have on the 20th May applied for an uplisting from Euronext Expand to Euronext Oslo Burrs, which is the main stock exchange in Oslo. This should further increase the liquidity in our share, also with larger funds and investors. And with that, I will pass the word to Vidar.

Thank you, Lars Christian. Himalaya Shipping reports a net loss of $6.4 million and a loss per share of 14 cents for the first quarter of 2025, compared to a net income of $2.5 million and earnings per share of 6 cents for the first quarter of 2024. Operating income was $6.5 million and adjusted EBITDA was $13.8 million for Q1 2025 compared to operating income of $11.4 million and adjusted EBITDA of $16.8 million for Q1 2024. Operating revenues were $22 million for Q1 2025 compared to $23.6 million in Q1 2024. The reduction in revenues is due to lower time charter equivalent earnings achieved, which is down from $30,600 per day in Q1 2024 to $21,100 per day in Q1 2025. This is mainly offset by 282 more operational days in Q1 2025 as a result of the last vessel deliveries during 2024. Vessel operating expenses were $6.9 million in Q1 2025 compared to $4.9 million in Q1 2024. The increase is due to higher average operating expenses per ship per day of approximately $6,400 in Q1 2025 compared to $6,200 in Q1 2024 as well as a full fleet in operation during Q1 2025. G&A for the first quarter was $1.1 million compared to $1.5 million in Q1 2024. The decrease is primarily due to reduced bonus accruals. Interest expense for $30 million in the first quarter reflecting an annualized fixed interest rate of approximately 7% on the sale leaseback financing, which matures seven years from each vessel delivery. The interest expense in Q1 2025 increased compared to Q1 2024 due to drawdowns on the sale-leaseback financing in connection with vessel deliveries during 2024. Cash and cash equivalents were $27 million at the end of the quarter. Our minimum cash requirement under our sale-leaseback financing is $12.3 million. Gross total debt was $721.3 million as of March 31st, 2025, down from $727.9 million as of December 31st, 2024, reflecting bearable payments on the sale leaseback financing. Shareholder's equity was $162.5 million at the end of the quarter. The company raised gross proceeds of approximately $50 million from the private placement completed in March 2025. Cash flow from operations was $0.3 million for the first quarter. The company have declared total cash distribution to shareholders of $0.05 per share for the months of January, February and March 2025. That completes the financial section. And now back to you, Lars Christian.