Himalaya Shipping (NYSE: HSHP) nine-month profit jumps to $62.9 million, debt still heavy

What happened

Himalaya Shipping Ltd. (NYSE: HSHP) earned $62.9 million in the nine months ended Sept. 30, up from $4.2 million a year earlier. Higher daily charter earnings drove the gain, not more sailing days.

Revenue reached $149.8 million, up $60.0 million. Average gross TCE earnings were $47,200 a day, against $28,400 a year earlier. Fleet operational days were 3,276 in both periods. The average Baltic 5TC 180 Capesize Index rose to $33,578 a day from $18,851.

Costs barely moved. Total operating expenses rose $3.0 million to $50.6 million. Net financial expenses fell $1.7 million to $36.3 million as quarterly repayments cut the average loan principal.

Operating cash flow was $87.8 million, up from $27.0 million. The filing credits mainly the $58.7 million rise in net income and $2.1 million of working-capital timing.

Key numbers

Metric	Latest	Change	Source
Net income, nine months	$62.9 million	from $4.2 million, +1,397.6%	SEC 6-K
Total operating revenues, nine months	$149.8 million	from $89.8 million, +66.8%	SEC 6-K
Average TCE earnings, gross, per day	$47,200	from $28,400, +66.2%	SEC 6-K
Net cash from operating activities, nine months	$87.8 million	from $27.0 million, +225.2%	SEC 6-K
Principal debt outstanding, Sept. 30, 2026	$681.1 million		SEC 6-K
Cash and cash equivalents, Sept. 30	$39.7 million	from $26.4 million, +50.4%	SEC 6-K

Read more: Himalaya Shipping (HSHP) company research

Why it matters

OptimistFi has argued that Himalaya Shipping works only if its ships earn strong rates long enough to turn capacity into cash before debt and the cycle take it back. The nine months show that cash arriving, and shareholders are receiving much of it.

Distributions to shareholders used $64.4 million and sale-and-leaseback repayments used $19.5 million. The company paid $0.69 per share ($32.5 million) in the third quarter and $0.28 ($13.2 million) in October. It declared $0.20 ($9.4 million) in November.

Leverage has not gone away. Principal debt stood at $681.1 million on Sept. 30. Of that, $6.6 million is due in the rest of 2026 and $20.4 million in the first nine months of 2027. Of $39.7 million in cash, $12.3 million must be kept as a minimum under the leasing arrangements.

The company says its liquidity depends substantially on vessel trading in a cyclical dry bulk market. It expects rates to stay volatile. The results strengthen the cash-generation half of the case and leave the leverage half untouched.

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What's next

The $10 million revolving credit facility with Drew Holdings Ltd. allows drawings only until Dec. 31, 2026. Any amount drawn must be repaid by Dec. 31, 2027.

The next quarterly report will show whether daily earnings hold near this year's levels once that facility stops accepting new drawings. A drop would test the payouts and lease repayments described above.

More from OptimistFi

• HSHP stock: research and coverage of Himalaya Shipping
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