Tor Olav Troim-backed Himalaya Shipping has sealed time charter deals with one of the major commodity companies for two newcastlemax dry bulk carriers currently under construction in China.
The Oslo-listed company has 12 LNG dual-fuel ships set to deliver from New Times Shipyard between the second quarter of 2023 and the fourth quarter of 2024.
The two expected newbuilds have been fixed for 32 to 38 months, with options attached for another 11 to 13 months at an index-linked rate with a significant premium to the Baltic 5TC index.
The time charters also include a profit sharing of any economic benefit derived from operating the vessel´s scrubber or running on LNG, as well as certain rights to convert the time charters to fixed rates.
Based on the current capesize spot index rate, the premium to index and the scrubber benefit, the ships are estimated to generate time charter equivalent earnings of approximately $35,000.
“The first charter agreements agreed on our vessels shows the attractiveness of our design and fuel consumption. The premium to the Baltic 5TC index we are earning is to our knowledge a new record for the class of vessels we own, said Herman Billung, contracted CEO of Himalaya Shipping, adding that the company is also in advanced talks to secure further employment for its fleet.
In February this year, Himalaya Shipping completed the sale and leaseback deal for the first four newbuildings, which was followed by credit approval for the last eight ships. The financing covered the remaining installments to the shipyard and secured “attractive financing” for seven years from delivery, with purchase options at certain dates in the future.
