Scaling the mountain - HSHP

Himalaya Shipping (HSHP) - Mentioned this new dry bulk shipping player elsewhere several months ago. Seem to be modeled after another Newcastlemax-only shipping play, 2020 Bulkers, But with a twist. HSHP’s vessels are dual-fueled with LNG as one of the their fuels.
First newbuild delivered in April 2023, and subsequently, five additional vessels have delivered.

HSHP’s major backers are entities related to Tor Olav Troim, Fredriksen’s former side kick. Company CEO is Herman Bilung, another former Fredriksen C-suite person (one time CEO of Golden Ocean). Board also has a couple of former Fredriksen associates.

H1 2023 report

  • ~$72M per vessel (slide 9)
  • Vessels financed via Sale & Leaseback deals
  • Thin on capital. Might need additional offering to cover the last few vessels (assuming they have lease financing arranged for other vessels)
  • $24,360 daily (slide 12) is not exactly a low bar for cash break-even.

Consistent with the perspective of major backer Tor Olav Troim, HSHP is not exactly a low risk play