Norway’s Himalaya Shipping intends to pay out more cash to shareholders as it takes delivery of its final newbuilding.
The Oslo and New York-listed company said in an update on Friday that it has taken over operation of the 11th in a series of 12 dual-fuel newcastlemaxes from New Times Shipyard in China.
The final 210,000-dwt ship will be delivered this month.
The Mount Aconcagua will begin a charter of at least two years with a major Japanese shipping company on an index-linked rate at a significant premium to a standard capesize, according to Himalaya.
“It is the expectation of the company that with the delivery of our last ship later in June and if market conditions continue to improve, the company should benefit from increased cash flow,” said chief executive Herman Billung.
“And with no further investment plans, it is the intention of the company to return excess cash flow to shareholders through increasing dividends.”
The board has approved a cash distribution of $0.04 per share for May.
Last month, Himalaya’s average time charter equivalent earnings were $35,700 per day, including daily scrubber and LNG fuel benefits on nine vessels of $2,600 per day.
The six bulkers trading on fixed time charters earned $35,800 per day, with the quartet on index-linked deals managing $35,700.
The Baltic Exchange’s capesize index averaged $23,424 per day during May.
Heading into the third quarter, Himalaya will have one vessel on a fixed rate until March 2025 and one of its index-linked time charters converted to a fixed rate of $40,810 until the end of 2024.
The shipowner remained profitable in the opening three months of 2024.
Net earnings hit $2.5m, down from $4.6m in the first quarter of last year.
