Norwegian owner Himalaya Shipping has revealed Chinese lease financing deals for its two newest bulkers.
The Oslo and New York-listed company said the 208,500-dwt Mount Matterhorn and Mount Neblina were delivered from New Times Shipyard in China in the third quarter, bringing the fleet to six vessels.
A further six are due in 2024.
Himalaya entered into sale-and-leaseback facilities for the dual-fuel newcastlemaxes totalling $98.6m with CCB Financial Leasing (CCBFL).
It also made instalment payments on three other newbuildings totalling $20.7m. These are funded through pre-delivery financing with CCBFL.
Himalaya chief executive Herman Billung said: “We are very pleased with the reception of our fleet among major commodity, trading and logistics companies.
“The entire fleet has now been fixed out to four different counterparties, one vessel on fixed time charter and the remaining 11 vessels fixed on index-linked charters which will earn on average a premium of 42.25% to the Baltic 5TC index.”
Billung pointed to a simple structure. Index-linked charters are earning a significant premium, and low administrative costs and financing with seven-year fixed bareboat rates are positioning Himalaya well to deliver solid returns, he argues.
“We have no intention to invest in new capacity, which will enable us to return most of the cash generated after debt service to our shareholders,” he added.
Average time charter equivalent earnings were $22,300 per day between July and September.
The net loss for the third quarter was $1.95m, with revenue at $10.2m. Ebitda was $6.1m.
There were no comparative figures for last year.
Fearnley Securities said earnings per share came in slightly below estimates on the back of higher interest expenses.