Himalaya Shipping NYSE: HSHP reported second-quarter 2026 net profit of $24.6 million, or $0.52 per share, as higher charter rates lifted revenue and operating cash flow. The result compared with net profit of $1.1 million, or $0.02 per share, in the same quarter of 2025.
CEO Lars-Christian Svensen said the company generated EBITDA of $44 million during the quarter and achieved time-charter-equivalent, or TCE, earnings of approximately $50,600 per day. The company declared cash distributions totaling $0.59 per share for April, May and June.
Revenue and cash flow increased with charter rates
CFO Vidar Hasund said operating revenue rose to $53.7 million in the second quarter from $29.9 million a year earlier. The increase reflected TCE earnings rising from $28,400 per day in the second quarter of 2025 to $50,600 per day in the latest period.
Operating profit reached $36.7 million, compared with $13.6 million a year earlier, while EBITDA increased from $20.9 million to $44 million. Cash flow from operations was $34.2 million, versus $8.3 million in the prior-year quarter.
Vessel operating expenses were unchanged year over year at $7.1 million, representing average daily operating expenses of $6,500 per vessel. Interest expense declined by $0.4 million to $12.4 million, which Hasund attributed to a lower average loan principal following debt repayments.
At quarter-end, Himalaya Shipping had $34.8 million in cash and cash equivalents, compared with a minimum cash requirement of $12.3 million under its sale-leaseback financing. The outstanding balance on that financing was approximately $688 million, down from about $694 million at the end of the first quarter due to scheduled repayments.
Chartering activity and fleet positioning
Svensen said the company entered an index-linked charter agreement for the Mount Emai for 12 to 14 months at what he described as a significant premium to the prevailing index. During June, Himalaya Shipping also converted four vessels from index-linked arrangements to fixed-rate contracts at an average rate of $56,500 per day.
After the quarter, the company achieved TCE earnings of approximately $51,200 per day for July and declared a monthly cash distribution of $0.22 per share. It also chartered the Mount Aconcagua for 16 to 18 months at an index-linked rate at a significant premium to the Baltic Capesize Index, Svensen said.
Additionally, the company converted two vessels from index-linked contracts to fixed rates from Aug. 1 through Dec. 31 at an average rate of $51,200 per day.
Himalaya Shipping operates a fleet of 12 dual-fuel LNG Newcastlemax vessels. Svensen said 10 of the 12 ships were exposed to the spot market as of the call, as the company seeks to participate in what it expects to be a strong second half of 2026. The company’s all-in cash breakeven, expressed against the Baltic Capesize Index, is about $17,500 per day, he said.
The CEO said the company’s preferred approach remains to charter most of its fleet on long-term, index-linked contracts while retaining the ability to convert contracts to fixed rates when management sees value in the forward freight agreement curve.
Management cites demand, trade routes and fleet constraints
Svensen characterized the first half as exceptionally strong for Capesize and Newcastlemax shipping, saying the first quarter was the best registered in 10 years and the second quarter was the strongest in 16 years.
He said Capesize and Newcastlemax ton-mile demand increased 4.9% year over year in the second quarter. Guinea bauxite volumes contributed a 7.7% increase, global iron ore trade added 2%, and coal ton-miles rose 15%, according to Svensen.
Brazilian iron ore exports increased 4% year over year in the quarter, while Australian volumes rose 5%, supported by fewer weather-related logistical interruptions and demand from China, he said. Svensen also said Chinese seaborne iron ore imports reached an all-time second-quarter high and that imported iron ore inventories in China were below their 12-month average.
Guinea’s bauxite exports continued to set records in 2026, Svensen said, with bauxite now accounting for 18% of cargo transported on Capesize and Newcastlemax vessels. He also pointed to production from Guinea’s Simandou mine, where initial iron ore shipments began in November 2025. The mine is targeting 120 million tons of annual high-grade iron ore exports, while management said its first-year contribution is projected at 15 million to 20 million tons.
Outlook and freight-market comments
Svensen said the company sees a 16% order book relative to the existing Capesize fleet and believes shipyards continue to favor construction of tankers, LNG carriers, container ships and car carriers. He also noted that 46% of the existing Capesize fleet was built between 2009 and 2015, with 26% expected to be more than 20 years old by 2030.
Management expects dry-docking requirements to add further supply constraints. Svensen said about 24% of the Capesize and Newcastlemax fleet will require five-, 10- or 15-year special surveys in 2026. The company estimates dry docks alone could result in 1.7% additional off-hire across the fleet this year, excluding potential congestion and waiting times. Only about 30% of scheduled 2026 dry docks had been completed so far, he said.
In response to an analyst question about 2027 charter coverage, Svensen said management believes quarterly shipping markets may become more balanced as bauxite and Simandou iron ore volumes increase. He said the company considered it too early to lock in first-quarter 2027 coverage, noting that the 2027 forward curve was around $29,500 per day and the first quarter was trading around $25,500 per day.
On vessel values, Svensen said asset prices had remained flat at high levels and that he did not expect them to decline soon. He added that higher freight rates could support a further increase in vessel values if the second half performs as management expects.
About Himalaya Shipping (NYSE:HSHP)
Himalaya Shipping Ltd. provides dry bulk shipping services worldwide. The company operates a fleet of vessels. It serves major commodity trading, commodity and energy transition, and multi-modal transport companies. Himalaya Shipping Ltd. was incorporated in 2021 and is based in Hamilton, Bermuda.
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