Oslo-listed Himalaya Shipping is expecting record earnings from the first two of 12 new bulkers it has chartered out.
The company’s debut deal for its newcastlemax newbuildings in China will see the duo fixed to a major commodity company over 32 to 38 months.
The deals come with options for another 11 to 13 months.
Himalaya did not name the charterer, but said its partner is “committed to the energy transition”.
The series of LNG dual-fuel bulk carriers are due from New Times Shipyard in 2023 and 2024.
The first two have been fixed on an index-linked rate, reflecting a significant premium to the Baltic Exchange’s 5TC capesize index, Himalaya said.
The time charters also include profit sharing of any economic benefit derived from operating the vessels’ scrubbers or running on LNG.
Himalaya has the right to convert the contracts to fixed rates based on the prevailing forward freight agreement curve from time to time.
“The first charter agreements agreed on our vessels shows the attractiveness of our design and fuel consumption. The premium to the Baltic 5TC index we are earning is to our knowledge a new record for the class of vessels we own,” said chief executive Herman Billung.
He added that based on current capesize spot index rates, the premium to the index and the scrubber benefit, the vessels would be generating $35,000 per day if they were operating now.
Well above breakeven
The 5TC index was up 13.8% on Wednesday to $21,175 per day.
Himalaya’s capesize equivalent cash breakeven is estimated at $14,000 per day when all vessels are delivered.
“We are in advanced discussions about securing further employment for our fleet,” Billung said.
In June, the shipowner said it was happy to bide its time fixing the new ships in anticipation of rising rates.
The company aims to charter out its vessels to large dry bulk operators, commodity traders and other end-users.
Himalaya decided in August to fit scrubbers to the fleet, without any slippage of delivery dates.
