LNG-powered bulker owner Himalaya Shipping achieved average time charter equivalent earnings of about $28,400 per day in January.
Tor Olav Trøim’s Himalaya said in a commercial update that the company’s six vessels trading on a fixed time charter earned $28,600 per day, gross, including average daily scrubber and LNG benefits on five vessels of about $2,800 per day.
Moreover, the company’s three vessels trading on index-linked time charters earned about $28,000 per day, gross, including average daily scrubber and LNG benefits of about $3,000 per day.
The index linked vessels were delivered to their respective charterers to start their time charters between the 8th and the 15th of January, Himalaya said.
Himalaya said the company’s cash break-even TCE is estimated to be about $24,600 per day.
The Baltic 5TC Capesize Index averaged $20,565 during January 2024.
In December, Himalaya achieved average time charter equivalent earnings of about $34,900 per day.
In January, Himalaya took delivery 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.
Himalaya’s three newest vessels are Mount Bandeira, Mount Hua, and Mount Elbrus
The firm said in the update that it has agreed to convert its index linked charters to fixed rate time charters for Mount Bandeira and Mount Hua from February 1 to June 30, 2024.
Following the conversion of the charters for these two vessels, the company will have five vessels trading on a fixed time charter of $24,852 per day, gross, in February and March, while two vessels will earn an average of $26,866 per day, gross, from April to June.
In addition, two vessels will continue to earn a fixed scrubber premium of $2,500 per day from February 1 to March 31.
The remaining three vessels will continue to earn scrubber premium according to the terms of their existing time charter agreements.
Himalaya said its board has approved a cash distribution of $0.01 per share for January.