HSHP · Himalaya Shipping Ltd.

Himalaya Shipping Ltd.'s annual report for 2025 presents a mixed financial performance, with revenue growth offset by increased expenses. The increase in total operating revenues to $131.9 million, up from $123.6 million in 2024, was primarily driven by the full-year operation of six vessels delivered in the first half of 2024, resulting in 4,380 operational days compared to 3,941 days in the prior year. However, this revenue growth was partially offset by a decrease in average daily Time Charter Equivalent earnings to $31,233 from $32,504, reflecting lower average Baltic 5TC Capesize Index rates. The company's net income decreased to $17.7 million from $21.1 million, mainly due to a $4.8 million increase in interest expense following the delivery of the remaining vessels and the cessation of interest capitalization. EBITDA, a non-GAAP measure, increased to $97.4 million from $93.2 million, indicating improved operational cash generation before financing and depreciation costs. The company maintained a cash position of $32.4 million as of December 31, 2025, and continued its shareholder return policy with $0.57 per share in distributions for 2025. The report extensively details the company's risk profile, highlighting vulnerabilities to charter rate volatility, customer concentration, regulatory changes, and geopolitical tensions that could impact future performance.