Himalaya Shipping Strengthens Eco-Friendly Fleet, Anticipates Increased Dividends

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  • Himalaya Shipping takes delivery of Mount Aconcagua, their eleventh LNG-powered bulker, solidifying their eco-friendly fleet and positioning them for financial growth.
  • The company expects to return excess cash flow to shareholders through dividend increases.

Himalaya Shipping, a leader in LNG-powered vessels, has bolstered its commitment to sustainability with the addition of Mount Aconcagua, their eleventh LNG-powered Newcastlemax bulk carrier. This latest vessel brings them closer to their goal of a twelve-ship eco-friendly fleet.

Expanding Eco-Friendly Fleet

The Mount Aconcagua joins ten other LNG-powered vessels in Himalaya’s fleet, solidifying its position as a leader in sustainable shipping practices. The final vessel, the Mount Emai, is expected later this month, marking the completion of their ambitious fleet expansion plan.

Lucrative Charter Agreement

The Mount Aconcagua is secured by a major Japanese shipping company on a profitable time charter with a potential extension. This agreement offers a premium rate compared to standard vessels, profit sharing for using cleaner fuels, and the flexibility to convert to a fixed rate based on market conditions.

Strong Financial Performance

Himalaya’s existing LNG bulkers achieved an impressive average daily time charter equivalent of $35,700 in May 2024, reflecting the strong demand for these eco-friendly vessels. With the addition of Mount Aconcagua and potentially rising market rates, the company anticipates further improvement in cash flow.

Potential Dividend Increase

CEO Herman Billung expressed optimism about the company’s financial future. He anticipates increased cash flow with the completion of the fleet and potentially favorable market conditions. This could pave the way for returning excess profits to shareholders through increased dividends.

Himalaya Shipping’s commitment to sustainability and focus on operational efficiency position them for continued success. The addition of Mount Aconcagua strengthens its eco-friendly fleet and contributes to a promising financial outlook, potentially leading to increased shareholder returns.

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Source: LNG Prime

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