Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2024 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-41676 |
Entity Registrant Name | Himalaya Shipping Ltd. |
Entity Central Index Key | 0001959455 |
Amendment Flag | false |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Document Period End Date | Jun. 30, 2024 |
Current Fiscal Year End Date | --12-31 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating revenues | ||||
Time charter revenues | $ 31,202 | $ 6,732 | $ 54,783 | $ 8,174 |
Total operating revenues | 31,202 | 6,732 | 54,783 | 8,174 |
Operating expenses | ||||
Vessel operating expenses | (5,610) | (1,784) | (10,538) | (2,036) |
Voyage expenses and commissions | (346) | (143) | (680) | (153) |
General and administrative expenses | (1,261) | (1,283) | (2,733) | (1,814) |
Depreciation and amortization | (6,469) | (1,965) | (11,899) | (2,357) |
Total operating expenses | (13,686) | (5,175) | (25,850) | (6,360) |
Operating income | 17,516 | 1,557 | 28,933 | 1,814 |
Financial income (expenses), net | ||||
Interest income | 393 | 248 | 585 | 258 |
Interest expense, net of amounts capitalized | (11,037) | (2,587) | (20,169) | (2,885) |
Other financial income (expenses), net | (9) | (333) | 6 | (325) |
Total financial expenses, net | (10,653) | (2,672) | (19,578) | (2,952) |
Net income (loss) before income tax | 6,863 | (1,115) | 9,355 | (1,138) |
Income tax (expense) / credit | 0 | 0 | 0 | 0 |
Net income (loss) attributable to shareholders of Himalaya Shipping Ltd. | 6,863 | (1,115) | 9,355 | (1,138) |
Total comprehensive income (loss) attributable to shareholders of Himalaya Shipping Ltd. | $ 6,863 | $ (1,115) | $ 9,355 | $ (1,138) |
Basic earnings (loss) per share (in USD per share) | $ 0.16 | $ (0.03) | $ 0.21 | $ (0.03) |
Diluted earnings (loss) per share (in USD per share) | $ 0.16 | $ (0.03) | $ 0.21 | $ (0.03) |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 21,946 | $ 25,553 |
Trade receivables | 1,034 | 811 |
Prepaid expenses and other current assets | 6,551 | 6,443 |
Total current assets | 29,531 | 32,807 |
Non-current assets | ||
Other non-current assets | 0 | 5,136 |
Total non-current assets | 867,721 | 566,399 |
Total assets | 897,252 | 599,206 |
Current liabilities | ||
Current portion of long-term debt | 23,467 | 19,795 |
Trade payables | 1,977 | 1,693 |
Accrued expenses | 9,222 | 2,531 |
Other current liabilities | 3,357 | 1,281 |
Total current liabilities | 38,023 | 25,300 |
Non-current liabilities | ||
Long-term debt | 701,984 | 419,701 |
Total non-current liabilities | 701,984 | 419,701 |
Total liabilities | 740,007 | 445,001 |
Commitment and contingencies | ||
Shareholders’ Equity | ||
Common shares of par value $1.00 per share: authorized 140,010,000 (2023: 140,010,000) shares, issued and outstanding 43,900,000 (2023: 43,900,000) shares | 43,900 | 43,900 |
Additional paid-in capital | 14,182 | 111,788 |
Contributed surplus | 91,291 | 0 |
Retained earnings/(accumulated deficit) | 7,872 | (1,483) |
Total shareholders’ equity | 157,245 | 154,205 |
Total liabilities and shareholders’ equity | 897,252 | 599,206 |
Newbuildings | ||
Non-current assets | ||
Newbuildings and vessels and equipment, net | 0 | 132,646 |
Vessels and equipment, net | ||
Non-current assets | ||
Newbuildings and vessels and equipment, net | $ 867,721 | $ 428,617 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | |||
Common stock, par value per share (in USD per share) | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 140,010,000 | 140,010,000 | |
Common stock, shares issued (in shares) | 43,900,000 | 43,900,000 | 40,782,857 |
Common stock, shares outstanding (in shares) | 43,900,000 | 43,900,000 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities | ||||
Net income (loss) | $ 6,863 | $ (1,115) | $ 9,355 | $ (1,138) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Non-cash compensation expense related to stock options | 144 | 112 | 270 | 253 |
Depreciation of vessels | 6,469 | 1,965 | 11,899 | 2,357 |
Amortization of deferred finance charges | 581 | 566 | 1,087 | 686 |
Change in assets and liabilities: | ||||
Accounts receivable | 261 | (272) | (222) | (301) |
Amounts due to/from related parties | 0 | (2,695) | 0 | (2,696) |
Accounts payable | (78) | (1,728) | (472) | 583 |
Accrued expenses | 1,345 | (350) | 4,934 | 266 |
Other current and non-current assets | 232 | (888) | (108) | (3,434) |
Other current liabilities | 1,829 | (1,668) | 2,076 | (81) |
Net cash provided by (used in) operating activities | 17,646 | (6,073) | 28,819 | (3,505) |
Cash Flows from Investing Activities | ||||
Additions to newbuildings | (159,408) | (125,770) | (313,221) | (256,585) |
Net cash used in investing activities | (159,408) | (125,770) | (313,221) | (256,585) |
Cash Flows from Financing Activities | ||||
Proceeds from issuance of common shares, net of paid issuance costs | 0 | 46,195 | 0 | 46,195 |
Proceeds from issuance of long-term and short-term debt (net of deferred finance charges paid to lender) | 147,650 | 119,796 | 295,500 | 251,669 |
Other deferred finance charges paid | (410) | (1,033) | (1,558) | (1,753) |
Proceeds from issuance of long-term debt from related party | 0 | 0 | 0 | 1,020 |
Repayment of long-term debt from related party | 0 | 0 | 0 | (2,020) |
Repayment of long-term debt | (4,869) | (2,364) | (8,318) | (3,552) |
Repayment of short-term debt | 0 | (7,500) | 0 | (7,500) |
Payment of cash distributions | (4,390) | 0 | (4,829) | 0 |
Net cash provided by financing activities | 137,981 | 155,094 | 280,795 | 284,059 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (3,781) | 23,251 | (3,607) | 23,969 |
Cash, cash equivalents and restricted cash at the beginning of the period | 25,727 | 981 | 25,553 | 263 |
Cash, cash equivalents and restricted cash at the end of the period | 21,946 | 24,232 | 21,946 | 24,232 |
Supplementary disclosure of cash flow information | ||||
Non-cash additions in respect of newbuildings | 0 | (13,783) | 0 | (13,783) |
Issuance of liabilities for newbuilding installments | 0 | 13,783 | 0 | 13,783 |
Interest paid, net of capitalized interest | $ (9,579) | $ (2,799) | $ (15,219) | $ (4,265) |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share capital | Additional paid in capital | Contributed surplus | Retained earnings/(Accumulated deficit) |
Outstanding shares at beginning of period (in shares) at Dec. 31, 2022 | 32,152,857 | ||||
Equity at beginning of period at Dec. 31, 2022 | $ 90,327 | $ 32,153 | $ 61,171 | $ 0 | $ (2,997) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 141 | 141 | |||
Total comprehensive (loss) income | (23) | (23) | |||
Outstanding shares at end of period (in shares) at Mar. 31, 2023 | 32,152,857 | ||||
Equity at end of period at Mar. 31, 2023 | 90,445 | $ 32,153 | 61,312 | 0 | (3,020) |
Outstanding shares at beginning of period (in shares) at Dec. 31, 2022 | 32,152,857 | ||||
Equity at beginning of period at Dec. 31, 2022 | 90,327 | $ 32,153 | 61,171 | 0 | (2,997) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total comprehensive (loss) income | (1,138) | ||||
Outstanding shares at end of period (in shares) at Jun. 30, 2023 | 40,782,857 | ||||
Equity at end of period at Jun. 30, 2023 | 134,414 | $ 40,783 | 97,766 | 0 | (4,135) |
Outstanding shares at beginning of period (in shares) at Mar. 31, 2023 | 32,152,857 | ||||
Equity at beginning of period at Mar. 31, 2023 | 90,445 | $ 32,153 | 61,312 | 0 | (3,020) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares (in shares) | 8,630,000 | ||||
Issuance of common shares | 50,054 | $ 8,630 | 41,424 | ||
Equity issuance costs | (5,082) | (5,082) | |||
Share-based compensation | 112 | 112 | |||
Total comprehensive (loss) income | (1,115) | (1,115) | |||
Outstanding shares at end of period (in shares) at Jun. 30, 2023 | 40,782,857 | ||||
Equity at end of period at Jun. 30, 2023 | $ 134,414 | $ 40,783 | 97,766 | 0 | (4,135) |
Outstanding shares at beginning of period (in shares) at Dec. 31, 2023 | 43,900,000 | 43,900,000 | |||
Equity at beginning of period at Dec. 31, 2023 | $ 154,205 | $ 43,900 | 111,788 | 0 | (1,483) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Transfer to contributed surplus | 0 | (97,876) | 97,876 | ||
Share-based compensation | 126 | 126 | |||
Cash distributions to shareholders | (1,756) | (1,756) | |||
Total comprehensive (loss) income | 2,492 | 2,492 | |||
Outstanding shares at end of period (in shares) at Mar. 31, 2024 | 43,900,000 | ||||
Equity at end of period at Mar. 31, 2024 | $ 155,067 | $ 43,900 | 14,038 | 96,120 | 1,009 |
Outstanding shares at beginning of period (in shares) at Dec. 31, 2023 | 43,900,000 | 43,900,000 | |||
Equity at beginning of period at Dec. 31, 2023 | $ 154,205 | $ 43,900 | 111,788 | 0 | (1,483) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total comprehensive (loss) income | $ 9,355 | ||||
Outstanding shares at end of period (in shares) at Jun. 30, 2024 | 43,900,000 | 43,900,000 | |||
Equity at end of period at Jun. 30, 2024 | $ 157,245 | $ 43,900 | 14,182 | 91,291 | 7,872 |
Outstanding shares at beginning of period (in shares) at Mar. 31, 2024 | 43,900,000 | ||||
Equity at beginning of period at Mar. 31, 2024 | 155,067 | $ 43,900 | 14,038 | 96,120 | 1,009 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 144 | 144 | |||
Cash distributions to shareholders | (4,829) | (4,829) | |||
Total comprehensive (loss) income | $ 6,863 | 6,863 | |||
Outstanding shares at end of period (in shares) at Jun. 30, 2024 | 43,900,000 | 43,900,000 | |||
Equity at end of period at Jun. 30, 2024 | $ 157,245 | $ 43,900 | $ 14,182 | $ 91,291 | $ 7,872 |
General Information
General Information | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | General Information Himalaya Shipping Ltd. was incorporated in Bermuda on March 17, 2021. We are listed on the New York Stock Exchange under the ticker HSHP and the Euronext Expand, operated by the Oslo Stock Exchange, under the ticker HSHP. Himalaya Shipping Ltd. was founded for the purpose of owning high-quality Newcastlemax dry bulk vessels, each with capacity in the range of 210,000 dead weight tonnes (“dwt”) which are equipped with the latest generation dual fuel LNG technology. As of June 30, 2024, we have a total of twelve vessels in operation. The Company has entered into sale and leaseback financing arrangements for its vessels which are described in Note 13. As used herein, and unless otherwise required by the context, the term “Himalaya Shipping” refers to Himalaya Shipping Ltd. and the terms “Company”, “we”, “Group”, “our” and words of similar import refer to Himalaya Shipping and its consolidated companies. The use herein of such terms as “group”, “organization”, “we”, “us”, “our” and “its” or references to specific entities, is not intended to be a precise description of corporate relationships. Going Concern The unaudited consolidated financial statements have been prepared on a going concern basis. As of June 30, 2024, the Company has cash and cash equivalents of $21.9 million. In addition, the Company has $10.0 million available to drawdown under the Drew revolving credit facility. |
Basis of Preparation and Accoun
Basis of Preparation and Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Accounting Policies | Basis of Preparation and Accounting Policies Basis of preparation The unaudited consolidated financial statements are stated in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited consolidated financial statements do not include all of the disclosures required under U.S. GAAP in the annual consolidated financial statements and should be read in conjunction with our audited annual financial statements for the year ended December 31, 2023, which are included in our Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 27, 2024. The Unaudited Consolidated Balance Sheet data for December 31, 2023 was derived from our audited annual financial statements. The amounts are presented in thousands of United States dollars ("U.S. dollar" or "$"), unless otherwise stated. The financial statements have been prepared on a going concern basis and in management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2024, and its results of operations and cash flows for the three and six months ended June 30, 2024 and 2023. Significant accounting policies The accounting policies adopted in the preparation of the Unaudited Consolidated Financial Statements for the six months ended June 30, 2024 are consistent with those followed in preparation of our annual audited consolidated financial statements for the year ended December 31, 2023. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of new accounting standards In November 2023, the FASB issued ASU 2023-07 (Topic 280 Segment Reporting): Improvements to Reportable Segment Disclosures requiring disclosure of incremental segment information for all public entities to enable investors to develop more decision-useful financial analyses, such as: 1. On an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM); 2. On an annual and interim basis, other segment items by reportable segment with a description of its composition; 3. All annual disclosures about a reportable segment’s profit or loss and assets required by Topic 280 in interim periods; 4. One or more additional measures of segment profit if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and making decisions on how to allocate resources. However, the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements should be at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed); 5. The title and position of the CODM and how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and making decisions about how to allocate resources; 6. For an entity with a single reportable segment, all the disclosures required by the amendments and all existing segment disclosures under Topic 280. ASU 2023-07 will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this update are required to be applied retrospectively to all periods presented in the financial statements, unless it is impracticable. There was no impact resulting from these amendments on our unaudited consolidated financial statements and no material impact on our related disclosures as presented in this interim set of accounts for the three and six months ended June 30, 2024. Accounting pronouncements that have been issued but not yet adopted The following table provides a brief description of other recent accounting standards that have been issued but not yet adopted as of June 30, 2024: Standard Description Date of adoption Expected Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2023-6 Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative The amendments represent changes to clarify or improve disclosure and presentation requirements of a variety of Topics. Amendments allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the Codification with the SEC’s regulations. The date on which SEC removes related disclosure or two years later Under evaluation ASU 2023-9 Income Taxes (Topic 740) - Improvements to Income Tax Disclosures The amendments improve the transparency of income tax disclosures by requiring annual disclosure of (1) specific categories in the rate reconciliation; and (2) additional information for reconciling items if the effect of those reconciling items is equal to or greater than 5% .of the resulting amount by multiplying pretax income (or loss) by the applicable statutory income tax rate. An entity is also required to provide the nature, effect and underlying causes of the reconciling items, and the judgment used in categorizing them, if not otherwise evident. The amendments also improve the comparability and effectiveness of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with SEC Regulation S-X 210.4-08(h), Rules of General Application—General Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that are no longer considered relevant or cost beneficial. January 1, 2025 Under evaluation ASU 2024-02 Codification Improvements - Amendments to Remove References to the Concepts Statements. The amendments remove references to various Concepts Statements that were either (i) extraneous and not required to understand or apply the guidance, or (ii) used in prior statements to provide guidance in certain topics. January 1, 2025 Under evaluation The FASB have issued further updates not included above as we do not believe that these are applicable to the Company |
Segment
Segment | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment | Segment Our chief operating decision maker, or the CODM, being our Board of Directors, measures performance based on our overall return to shareholders based on consolidated net income. The CODM does not review a measure of operating result at a lower level than the consolidated Group and we only have one reportable segment. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Bermuda Himalaya Shipping Ltd. is incorporated in Bermuda. Under current Bermuda law, the Company is not required to pay taxes in Bermuda on either income or capital gains. Himalaya Shipping Ltd. has received written assurance from the Minister of Finance in Bermuda that, in the event of any such taxes being imposed, the Company will be exempted from taxation until March 31, 2035. On December 27, 2023, Bermuda enacted the Corporate Income Tax Act (the “CIT Act”). Entities subject to tax under the CIT Act are the Bermuda constituent entities of multi-national groups. A multi-national group is defined under the CIT Act as a group with entities in more than one jurisdiction with consolidated revenues of at least €750 million for two out of the last four fiscal years. If Bermuda constituent entities of a multi-national group are subject to tax under the CIT Act, for taxable years beginning on or after January 1, 2025, Bermuda will impose a 15% corporate income tax, as determined in accordance with and subject to the adjustments set out in the CIT Act (including in respect of foreign tax credits applicable to the Bermuda constituent entities). While we have a tax-exempt status in Bermuda until March 31, 2035, Bermuda specifically provided that the CIT Act applies notwithstanding any assurance given pursuant to the Exempted Undertakings Tax Protection Act 1966 (the “EUTP Act”). Based on a number of operational, economic and regulatory assumptions, we do not expect to have consolidated revenue sufficient for us to fall within scope of the CIT Act in the near future. We will monitor the developments on the Bermuda internal regulations with regards to the CIT Act implementation. To the extent our consolidated revenue is sufficient for us to be within the CIT Act thresholds, we may be subject to taxation in Bermuda. Liberia The vessel owning companies are not subject to tax on international shipping income. United Kingdom Taxable income in the United Kingdom is generated by our UK subsidiary. The statutory tax rate in the United Kingdom as of June 30, 2024 was 25%. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic earnings (loss) per share (“EPS”) is based on the weighted average number of shares outstanding during the period. Dilutive impact of the assumed conversion of potentially dilutive instruments which are 735,000 share options outstanding as at June 30, 2024 is shown as follows: (in $ thousands except share and per share data) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Basic earnings (loss) per share 0.16 (0.03) 0.21 (0.03) Diluted earnings (loss) per share 0.16 (0.03) 0.21 (0.03) Net income (loss) 6,863 (1,115) 9,355 (1,138) Issued common shares at the end of the period 43,900,000 40,782,857 43,900,000 40,782,857 Weighted average number of shares outstanding for the period, basic 43,900,000 40,123,516 43,900,000 36,160,205 Dilutive impact of share options 17,309 — 8,654 — Weighted average number of shares outstanding for the period, diluted 43,917,309 40,123,516 43,908,654 36,160,205 |
Interest Expense
Interest Expense | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Interest Expense | Interest Expense (in $ thousands ) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Interest expense, gross 11,719 4,716 22,125 6,726 Capitalized interest on newbuildings (682) (2,129) (1,956) (3,841) Interest expense, net 11,037 2,587 20,169 2,885 |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Operating Leases | Operating Leases Rental income The components of operating lease income are as follows: (in $ thousands ) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Time charter revenues 31,202 6,732 54,783 8,174 Time charter revenues on our index-linked charters were $14.8 million and $23.4 million in the three and six months ended June 30, 2024, respectively, and $4.1 million and $4.8 million in the three and six months ended June 30, 2023, respectively. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other current assets | Prepaid expenses and other current assets June 30, 2024 December 31, 2023 (in $ thousands) Prepaid interest (1) 2,403 2,410 Other prepaid expenses (2) 2,057 997 Inventory 1,289 634 Other current assets (3) 802 2,402 Total 6,551 6,443 (1) Prepaid interest pertains to interest paid in advance for “Mount Norefjell”, “Mount Ita”, “Mount Etna” and “Mount Blanc”. Bareboat payments on the lease for these vessels were paid in advance. (2) Other prepaid expenses are comprised primarily of prepaid operating expenses and cash advance to crew for delivered vessels. (3) |
Newbuildings
Newbuildings | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Newbuildings | Newbuildings The table below sets forth the carrying value of our newbuildings: June 30, 2024 December 31, 2023 (in $ thousands) Opening balance 132,646 176,145 Installment payments (1) 310,773 378,305 Capitalized interest 1,956 7,805 Other capitalized costs (2) 5,628 8,126 Reclassification to Vessels and equipment (3) (451,003) (437,735) Total — 132,646 (1) Installment payments in the six months ended June 30, 2024 include $310.8 million for the fifth and sixth installments net of address commissions to New Times Shipyard for newbuildings “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai”. Of this amount, $5.1 million relating to the sixth installments for “Mount Bandeira” and “Mount Hua” was paid in December 2023 in advance of their deliveries in January 2024 and were presented as “Other non-current assets” on the consolidated balance sheet as of December 31, 2023. The Company drew down $295.5 million on the sale and leaseback financing to fund these installments and the installment payments were made by CCBFL and Jiangsu (as these terms are defined in Note 13) on behalf of the Company. (2) Other capitalized costs include direct costs associated with the supervision of our newbuilding program. (3) “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai” were delivered in the six months ended June 30, 2024 and their corresponding costs were reclassified to Vessels and equipment (see Note 11 - Vessels and Equipment, net). Vessels and Equipment (in $ thousands) Cost As of January 1, 2024 437,735 Additions 451,003 As of June 30, 2024 888,738 Vessel and Equipment (in $ thousands) Depreciation and Amortization As of January 1, 2024 (9,118) Charge for the period (11,899) As of June 30, 2024 (21,017) Net book value as of June 30, 2024 867,721 The table below presents the dates the vessels were delivered to the Company: Vessel Delivery Date Mount Norefjell March 2, 2023 Mount Ita March 9, 2023 Mount Etna April 13, 2023 Mount Blanc May 31, 2023 Mount Matterhorn July 13, 2023 Mount Neblina August 29, 2023 Mount Bandeira January 5, 2024 Mount Hua January 8, 2024 Mount Elbrus January 11, 2024 Mount Denali April 19, 2024 Mount Aconcagua June 6, 2024 Mount Emai June 13, 2024 During the six months ended June 30, 2024 , we considered whether indicators of impairment existed that could indicate that the carrying amounts of our vessels may not be recoverable as of |
Vessels and Equipment, net
Vessels and Equipment, net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Vessels and Equipment, net | Newbuildings The table below sets forth the carrying value of our newbuildings: June 30, 2024 December 31, 2023 (in $ thousands) Opening balance 132,646 176,145 Installment payments (1) 310,773 378,305 Capitalized interest 1,956 7,805 Other capitalized costs (2) 5,628 8,126 Reclassification to Vessels and equipment (3) (451,003) (437,735) Total — 132,646 (1) Installment payments in the six months ended June 30, 2024 include $310.8 million for the fifth and sixth installments net of address commissions to New Times Shipyard for newbuildings “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai”. Of this amount, $5.1 million relating to the sixth installments for “Mount Bandeira” and “Mount Hua” was paid in December 2023 in advance of their deliveries in January 2024 and were presented as “Other non-current assets” on the consolidated balance sheet as of December 31, 2023. The Company drew down $295.5 million on the sale and leaseback financing to fund these installments and the installment payments were made by CCBFL and Jiangsu (as these terms are defined in Note 13) on behalf of the Company. (2) Other capitalized costs include direct costs associated with the supervision of our newbuilding program. (3) “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai” were delivered in the six months ended June 30, 2024 and their corresponding costs were reclassified to Vessels and equipment (see Note 11 - Vessels and Equipment, net). Vessels and Equipment (in $ thousands) Cost As of January 1, 2024 437,735 Additions 451,003 As of June 30, 2024 888,738 Vessel and Equipment (in $ thousands) Depreciation and Amortization As of January 1, 2024 (9,118) Charge for the period (11,899) As of June 30, 2024 (21,017) Net book value as of June 30, 2024 867,721 The table below presents the dates the vessels were delivered to the Company: Vessel Delivery Date Mount Norefjell March 2, 2023 Mount Ita March 9, 2023 Mount Etna April 13, 2023 Mount Blanc May 31, 2023 Mount Matterhorn July 13, 2023 Mount Neblina August 29, 2023 Mount Bandeira January 5, 2024 Mount Hua January 8, 2024 Mount Elbrus January 11, 2024 Mount Denali April 19, 2024 Mount Aconcagua June 6, 2024 Mount Emai June 13, 2024 During the six months ended June 30, 2024 , we considered whether indicators of impairment existed that could indicate that the carrying amounts of our vessels may not be recoverable as of |
Accrued expenses
Accrued expenses | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses Accrued expenses comprise of: June 30, 2024 December 31, 2023 (in $ thousands) Accrued interest (1) 5,453 1,318 Cash distributions payable (2) 1,756 — Accrued operating expenses 1,525 724 Other accrued expenses (3) 488 489 Total 9,222 2,531 (1) Accrued interest pertains to unpaid interest on the sale and leaseback facilities for “Mount Bandeira”, “Mount Elbrus”, “Mount Hua”, “Mount Matterhorn”, “Mount Neblina”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai”. Bareboat payments on the lease for these vessels are paid in arrears. Six vessels were delivered in the six months ended June 30, 2024 which contributed to the increase in accrued interest at June 30, 2024. (2) In June 2024, the Board approved a cash distribution of $0.04 per share for May 2024 which was paid in July 2024. (3) |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt June 30, 2024 December 31, 2023 (in $ thousands) Total debt, net of deferred finance charges 725,451 439,496 Less: Current portion of long-term debt, net of deferred finance charges (23,467) (19,795) Long-term debt, net of deferred finance charges 701,984 419,701 June 30, 2024 December 31, 2023 (in $ thousands) Vessel financing (Mount Norefjell) 60,045 61,297 Vessel financing (Mount Ita) 60,050 61,302 Vessel financing (Mount Etna) 60,610 61,812 Vessel financing (Mount Blanc) 60,458 61,681 Vessel financing (Mount Matterhorn) 61,518 62,509 Vessel financing (Mount Neblina) 61,535 62,509 Vessel financing (Mount Hua) 62,525 13,683 Vessel financing (Mount Bandeira) 62,525 13,683 Vessel financing (Mount Elbrus) 62,525 13,783 Vessel financing (Mount Denali) 63,000 13,783 Vessel financing (Mount Aconcagua) 63,000 13,783 Vessel financing (Mount Emai) 63,000 13,783 Total debt, gross 740,791 453,608 Less: Deferred finance charges (15,340) (14,112) Total debt, net of deferred finance charges 725,451 439,496 The outstanding debt, gross of deferred finance charges, as of June 30, 2024, is repayable as follows: Year ending December 31 (in $ thousands) 2024 (remaining six months) 12,900 2025 (1) 26,913 2026 26,064 2027 27,539 2028 29,563 Thereafter 617,812 Total 740,791 Deferred finance charges (15,340) Total debt, net of deferred finance charges 725,451 (1) $13.2 million repayable in the six months ended June 30, 2025. AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements The Company has entered into sale and leaseback transactions accounted for as financing transactions. In February 2022, the Company entered into sale and leaseback arrangements with AVIC for the first four newbuildings “Mount Norefjell”, “Mount Ita”, “Mount Etna”, and “Mount Blanc” which have been delivered from New Times Shipyard. Pursuant to the lease financing, Himalaya Shipping received pre-delivery financing at a fixed interest rate of 5% per annum for the third and fourth pre-delivery installments ($6.8 million paid for each of the third and fourth installments). As security for the pre-delivery financing, the Company entered into an agreement to assign in favor of AVIC the first four newbuilding contracts and the related refund guarantees, as well as a parent company guarantee from the Company, share pledges over the related subsidiaries, and account pledges over the related subsidiaries’ bank accounts. Upon delivery of the relevant vessels from New Times Shipyard, the vessels were sold to companies owned and designated by AVIC. The vessels were delivered in 2023 and chartered back on seven-year bareboat charters which include purchase options each year from year 3 until the end of the bareboat period. The first purchase option in year 3 is at a price of $56.9 million and then declines to $47.2 million after year 7. In February 2023, the sale and leaseback agreements for the first four newbuildings were amended whereby AVIC agreed to finance 90% of the sixth installments on the newbuilding contracts or $2.2 million for each vessel relating to the cost of installing scrubbers on each vessel. This is repayable in advance in 12 quarterly installments of $180,000 for each vessel, together with interest calculated as: a) LIBOR plus a margin of 4.5% for the period until June 30, 2023; and b) Overnight SOFR plus a margin of 4.5% and credit adjustment spread of 0.26161% from July 1, 2023. Under the relevant financing agreements, payment of dividends or making of other distributions from each relevant subsidiary to the Company will only be allowed if immediately following such payment or distribution there will be maintained in the bank account an amount no less than the higher of (a) $3.6 million and (b) the aggregate of the bareboat rate under the facility and the operating expenses for the vessel that are payable within the next six months. The fixed price purchase options and a cash penalty of $25.0 million per vessel for not exercising any of the purchase options under the sale and leaseback transaction results in a failed sale and leaseback and the transaction is accounted for as a financing transaction. In the year ended December 31, 2023, the Company has drawn $200.0 million on the financing to pay scheduled delivery installments for the first four newbuildings. The carrying value of Vessels and equipment financed by AVIC is $277.2 million as of June 30, 2024. The amount outstanding under the facility was $241.2 million and $246.1 million as of June 30, 2024 and December 31, 2023, respectively. CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements In April 2022, the Company entered into sale and leaseback arrangements with CCBFL for newbuildings “Mount Matterhorn”, “Mount Neblina”, “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai” to be delivered from New Times Shipyard. Pursuant to the lease financing, CCBFL is to provide pre-delivery financing at a fixed interest rate of 5% per annum for the third and fourth pre-delivery installments ($6.8 million and $6.9 million, respectively) to be paid for each of the third and fourth installment for newbuildings “Mount Matterhorn”, “Mount Neblina”, “Mount Bandeira”, “Mount Hua” and “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai”. As security for the pre-delivery financing, the Company entered into an agreement to assign in favor of CCBFL the relevant newbuilding contracts and the related refund guarantees, as well as a parent company guarantee from the Company, share pledges over the related subsidiaries, and account pledges over the related subsidiaries’ bank accounts. Upon delivery of the relevant vessels from New Times Shipyard, the vessels were sold to companies owned and designated by CCBFL. The financing amount for each of the vessels is the lower of 90% of the newbuilding contract price and $63.0 million. The vessels were chartered back on seven-year bareboat charters which include purchase options each year from year 3 until the end of the bareboat period. The first purchase option in year 3 is $56.0 million declining to $46.0 million after year 7. The fixed price purchase options under the sale and leaseback transaction results in a failed sale and leaseback and the transaction is accounted for as a financing transaction. During the six months ended June 30, 2024, the Company drew $196.9 million (year ended December 31, 2023: $160.6 million) on the financing to pay scheduled delivery installments. The amount outstanding under the facility was $374.6 million and $180.2 million as of June 30, 2024 and December 31, 2023, respectively.The carrying value of newbuildings financed by CCBFL was $87.7 million as of December 31, 2023. The carrying value of vessels and equipment financed by CCBFL was $443.5 million and $146.5 million as of June 30, 2024 and December 31, 2023, respectively. After 180 days of the delivery of each newbuilding, each subsidiary under the CCBFL sale and leaseback arrangement is required to maintain a minimum cash balance equivalent to the bareboat hire payable within the next three months which amounts to approximately $1.5 million per vessel. As of June 30, 2024, the Company is required to maintain a total minimum cash balance of $3.0 million in the subsidiaries that lease “Mount Matterhorn” and “Mount Neblina,” which are included in cash and cash equivalents on the Unaudited Consolidated Balance Sheet as of June 30, 2024 as there are no legal restrictions on the bank account. Jiangsu Financial Leasing Co. Ltd (“Jiangsu”) – Sale and leaseback financing In December 2022, the Company, CCBFL and Jiangsu entered into novation and assignment agreements to transfer and assign all of CCBFL’s rights and obligations to Jiangsu under the corresponding sale and leaseback arrangements for newbuildings “Mount Bandeira” and “Mount Hua”. The novation was accounted for as a debt extinguishment. The transfer was effective in March 2023. The terms under the sale and leaseback arrangements remain unchanged. Upon delivery of the relevant vessels from New Times Shipyard in January 2024, the vessels were sold to companies owned and designated by Jiangsu and chartered back on seven-year bareboat charters, which include purchase options each year from year 3 until the end of the bareboat period. The first purchase option in year 3 is $56.0 million and declines to $46.0 million after year 7. The fixed price purchase options under the sale and leaseback transaction results in a failed sale and leaseback and the transaction is accounted for as a financing transaction. The Company drew down $98.6 million from Jiangsu for delivery installments on the “Mount Hua” and “Mount Bandeira” during the six months ended June 30, 2024 (year ended December 31, 2023: $27.4 million). The amount outstanding under the facility was $125.1 million and $27.4 million as of June 30, 2024 and December 31, 2023, respectively. The carrying value of vessels and equipment financed by Jiangsu was $147.0 million as of June 30, 2024. The bareboat rate per day under the sale and leaseback arrangements is fixed for the bareboat period and the average bareboat rate per day for the sale and leaseback arrangements with AVIC, CCBFL and Jiangsu is $16,567. Bareboat payments are paid quarterly in advance under the arrangement with AVIC and quarterly in arrears under the arrangements with CCBFL and Jiangsu. The Company has classified the estimated amortization of the bareboat payments due within twelve months from June 30, 2024 as “Current portion of long-term debt” on the “Consolidated Balance sheet.” Drew Holdings Limited. (“Drew”) – Revolving Credit facility In December 2022, the Company entered into a $15.0 million revolving credit facility agreement with Drew, who is a significant shareholder in the Company. The facility was available to the Company until December 31, 2023 and was repayable on December 31, 2024 at the latest. In December 2022, the Company drew $1.0 million on the revolving credit facility with Drew. This amount was fully repaid in the year ended December 31, 2023. Effective December 18, 2023, an addendum to the Drew revolving credit facility was executed, decreasing the maximum amount available under the facility from $15.0 million to $10.0 million, and extending the maturity of the facility from December 31, 2024 to December 31, 2025. In addition, the addendum extended the drawdown window to December 31, 2024 and aligned the interest rate with the Term Secured Overnight Financing Rate (“SOFR”). The amended facility bears interest for the applicable interest periods under the facility, at a rate of SOFR plus a margin of 8% p.a. As of June 30, 2024, the Company has $10.0 million available to draw down from this facility. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments We recognize our fair value estimates using a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on reliability of inputs used to determine fair values as follows: Level 1: Quoted market prices in active markets for identical assets and liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The carrying value and estimated fair value of our financial instruments as of June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 December 31, 2023 (in $ thousands) Hierarchy Fair Value Carrying Value Fair Value Carrying Value Assets Cash and cash equivalents (1) Level 1 21,946 21,946 25,553 25,553 Liabilities Current portion of long-term debt (2)(3) Level 2 26,119 26,119 21,234 21,234 Long-term debt (2)(3) Level 2 715,151 714,673 429,037 432,374 (1) All demand and time deposits and highly liquid, low risk investments with original maturities of three months or less at the date of purchase are considered equivalent to cash. Thus, carrying value is a reasonable estimate of fair value. (2) Fair value of current portion of long-term debt and long-term debt have been corroborated using discounted cash flow model and market interest rate as of June 30, 2024. (3) Our debt obligations are recorded at amortized cost in the Consolidated Balance Sheets. The amounts presented in the table are gross of deferred finance charges amounting to $15.3 million and $14.1 million as of June 30, 2024 and December 31, 2023, respectively. The carrying amounts of accounts receivable, funding to vessel managers, accounts payable and accrued expenses approximated their fair values as of June 30, 2024 and December 31, 2023 because of their near term maturity and are classified as Level 1 within the fair value hierarchy. There have been no transfers between different levels in the fair value hierarchy during the periods presented. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment and Contingencies | Commitments and Contingencies Assets pledged June 30, 2024 December 31, 2023 (in $ thousands) Book value of vessels secured against long-term loans 867,721 428,617 Book value of newbuildings secured against long-term loans — 132,646 Total 867,721 561,263 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Drew and Magni Partners (Bermuda) Ltd.(“Magni”) Drew is considered a related party due to its significant ownership in the Company and Magni is considered a related party as a result of being an affiliate of Drew. As of June 30, 2024, Drew holds 30.7% of the Company’s outstanding common shares. In March 2022, the Company entered into a $15.0 million revolving credit facility with Magni. The facility was unsecured and interest-bearing at a rate of LIBOR for the applicable interest periods under the facility, plus a margin of 8% p.a. The Magni revolving credit facility was available to the Company until December 31, 2023 and was to be repaid latest on December 31, 2024. In December 2022, the revolving credit facility was cancelled and a new revolving credit facility with Drew was entered into on the same terms. Effective December 18, 2023, an addendum to the Drew revolving credit facility was executed, decreasing the maximum amount available under the facility from $15.0 million to $10.0 million, and extending the maturity of the facility from December 31, 2024 to December 31, 2025. In addition, the addendum extended the drawdown window to December 31, 2024 and aligned the interest rate with the Term SOFR. The amended facility bears interest for the applicable interest periods under the facility, at a rate of SOFR plus a margin of 8% p.a. As of June 30, 2024, the Company has $10.0 million available to draw down from this facility. Corporate support agreement The Company’s incorporator and initial, sole shareholder, Magni has been the key initiator of the Himalaya project and has provided corporate and financial assistance throughout the process, including extensive assistance in connection with obtaining the financing for the installments to date as well as the private placements. The Company has entered into a corporate support agreement with Magni whereby Magni is compensated for its services to the Group since the inception of the Company, and for its key role in identifying and pursuing business opportunities for the Group (the “Corporate Support Agreement”). As Magni indirectly held a controlling interest at the time the Corporate Support Agreement was entered into, the Company has treated the Corporate Support Agreement as a related party agreement. Pursuant to the Corporate Support Agreement, Magni continued to support the Company’s business development through assisting with the pre-financing and post-financing of the Company’s newbuilding program, in finding employment for the vessels, in recruiting suitable individuals to the Company’s organization and with general high-level administrative support. The parties agreed in 2021 that compensation in the amount of $2.7 million which was to be paid by the Company to Magni in four equal tranches. The tranches were split equally on each of the first four newbuildings delivered from New Times Shipyard in 2023, so that $0.674 million was payable on each such delivery. Such amount equals the address commission received on the first four vessels, which was agreed with the yard before the project opened to external investors. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | Equity The authorized share capital of the Company as of June 30, 2024 and December 31, 2023 is $140,010,000 represented by 140,010,000 authorized common shares of par value $1.00 each. In January 2024, the shareholders, at a Special General Meeting, approved the transfer of $97.9 million to the Company’s Contributed Surplus Account from the Company's Share Premium account (Additional paid-in capital in the Company’s Consolidated Statement of Changes in Shareholder’s Equity). In February 2024, the Board approved a grant of 115,000 share options to key human resources and one director. The share options granted have a five-year term and cliff vest three years from the grant date. The exercise price is $8.00 per share and will be reduced by any dividends and cash distributions paid. The following cash distributions were declared in the six months ended June 30, 2024: Declaration date Amount per share (in $) Payment date February 2024 0.01 March 2024 March 2024 0.03 April 2024 April 2024 0.03 May 2024 May 2024 0.04 June 2024 June 2024 0.04 July 2024 The above cash distributions were made from the Company's Contributed Surplus account. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 8, 2024, the Board approved a cash distribution of $0.05 per share for shareholders of record as of July 19, 2024. On August 7, 2024, the Board approved a cash distribution of $0.06 per share for shareholders of record as of August 19, 2024. The distributions will be made from the Company's Contributed Surplus account. |
Basis of Preparation and Acco_2
Basis of Preparation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation The unaudited consolidated financial statements are stated in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited consolidated financial statements do not include all of the disclosures required under U.S. GAAP in the annual consolidated financial statements and should be read in conjunction with our audited annual financial statements for the year ended December 31, 2023, which are included in our Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 27, 2024. The Unaudited Consolidated Balance Sheet data for December 31, 2023 was derived from our audited annual financial statements. The amounts are presented in thousands of United States dollars ("U.S. dollar" or "$"), unless otherwise stated. The financial statements have been prepared on a going concern basis and in management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2024, and its results of operations and cash flows for the three and six months ended June 30, 2024 and 2023. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of new accounting standards In November 2023, the FASB issued ASU 2023-07 (Topic 280 Segment Reporting): Improvements to Reportable Segment Disclosures requiring disclosure of incremental segment information for all public entities to enable investors to develop more decision-useful financial analyses, such as: 1. On an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM); 2. On an annual and interim basis, other segment items by reportable segment with a description of its composition; 3. All annual disclosures about a reportable segment’s profit or loss and assets required by Topic 280 in interim periods; 4. One or more additional measures of segment profit if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and making decisions on how to allocate resources. However, the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements should be at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed); 5. The title and position of the CODM and how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and making decisions about how to allocate resources; 6. For an entity with a single reportable segment, all the disclosures required by the amendments and all existing segment disclosures under Topic 280. ASU 2023-07 will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this update are required to be applied retrospectively to all periods presented in the financial statements, unless it is impracticable. There was no impact resulting from these amendments on our unaudited consolidated financial statements and no material impact on our related disclosures as presented in this interim set of accounts for the three and six months ended June 30, 2024. Accounting pronouncements that have been issued but not yet adopted The following table provides a brief description of other recent accounting standards that have been issued but not yet adopted as of June 30, 2024: Standard Description Date of adoption Expected Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2023-6 Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative The amendments represent changes to clarify or improve disclosure and presentation requirements of a variety of Topics. Amendments allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the Codification with the SEC’s regulations. The date on which SEC removes related disclosure or two years later Under evaluation ASU 2023-9 Income Taxes (Topic 740) - Improvements to Income Tax Disclosures The amendments improve the transparency of income tax disclosures by requiring annual disclosure of (1) specific categories in the rate reconciliation; and (2) additional information for reconciling items if the effect of those reconciling items is equal to or greater than 5% .of the resulting amount by multiplying pretax income (or loss) by the applicable statutory income tax rate. An entity is also required to provide the nature, effect and underlying causes of the reconciling items, and the judgment used in categorizing them, if not otherwise evident. The amendments also improve the comparability and effectiveness of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with SEC Regulation S-X 210.4-08(h), Rules of General Application—General Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that are no longer considered relevant or cost beneficial. January 1, 2025 Under evaluation ASU 2024-02 Codification Improvements - Amendments to Remove References to the Concepts Statements. The amendments remove references to various Concepts Statements that were either (i) extraneous and not required to understand or apply the guidance, or (ii) used in prior statements to provide guidance in certain topics. January 1, 2025 Under evaluation The FASB have issued further updates not included above as we do not believe that these are applicable to the Company |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Description of other recent accounting standards that have been issued but not yet adopted | The following table provides a brief description of other recent accounting standards that have been issued but not yet adopted as of June 30, 2024: Standard Description Date of adoption Expected Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2023-6 Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative The amendments represent changes to clarify or improve disclosure and presentation requirements of a variety of Topics. Amendments allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the Codification with the SEC’s regulations. The date on which SEC removes related disclosure or two years later Under evaluation ASU 2023-9 Income Taxes (Topic 740) - Improvements to Income Tax Disclosures The amendments improve the transparency of income tax disclosures by requiring annual disclosure of (1) specific categories in the rate reconciliation; and (2) additional information for reconciling items if the effect of those reconciling items is equal to or greater than 5% .of the resulting amount by multiplying pretax income (or loss) by the applicable statutory income tax rate. An entity is also required to provide the nature, effect and underlying causes of the reconciling items, and the judgment used in categorizing them, if not otherwise evident. The amendments also improve the comparability and effectiveness of disclosures by (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with SEC Regulation S-X 210.4-08(h), Rules of General Application—General Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that are no longer considered relevant or cost beneficial. January 1, 2025 Under evaluation ASU 2024-02 Codification Improvements - Amendments to Remove References to the Concepts Statements. The amendments remove references to various Concepts Statements that were either (i) extraneous and not required to understand or apply the guidance, or (ii) used in prior statements to provide guidance in certain topics. January 1, 2025 Under evaluation |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of computation of earnings (loss) per share | The computation of basic earnings (loss) per share (“EPS”) is based on the weighted average number of shares outstanding during the period. Dilutive impact of the assumed conversion of potentially dilutive instruments which are 735,000 share options outstanding as at June 30, 2024 is shown as follows: (in $ thousands except share and per share data) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Basic earnings (loss) per share 0.16 (0.03) 0.21 (0.03) Diluted earnings (loss) per share 0.16 (0.03) 0.21 (0.03) Net income (loss) 6,863 (1,115) 9,355 (1,138) Issued common shares at the end of the period 43,900,000 40,782,857 43,900,000 40,782,857 Weighted average number of shares outstanding for the period, basic 43,900,000 40,123,516 43,900,000 36,160,205 Dilutive impact of share options 17,309 — 8,654 — Weighted average number of shares outstanding for the period, diluted 43,917,309 40,123,516 43,908,654 36,160,205 |
Interest Expense (Tables)
Interest Expense (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of interest expense | (in $ thousands ) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Interest expense, gross 11,719 4,716 22,125 6,726 Capitalized interest on newbuildings (682) (2,129) (1,956) (3,841) Interest expense, net 11,037 2,587 20,169 2,885 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Disclosure of components of operating lease income | The components of operating lease income are as follows: (in $ thousands ) Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 Time charter revenues 31,202 6,732 54,783 8,174 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | June 30, 2024 December 31, 2023 (in $ thousands) Prepaid interest (1) 2,403 2,410 Other prepaid expenses (2) 2,057 997 Inventory 1,289 634 Other current assets (3) 802 2,402 Total 6,551 6,443 (1) Prepaid interest pertains to interest paid in advance for “Mount Norefjell”, “Mount Ita”, “Mount Etna” and “Mount Blanc”. Bareboat payments on the lease for these vessels were paid in advance. (2) Other prepaid expenses are comprised primarily of prepaid operating expenses and cash advance to crew for delivered vessels. (3) |
Newbuildings (Tables)
Newbuildings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of newbuildings | The table below sets forth the carrying value of our newbuildings: June 30, 2024 December 31, 2023 (in $ thousands) Opening balance 132,646 176,145 Installment payments (1) 310,773 378,305 Capitalized interest 1,956 7,805 Other capitalized costs (2) 5,628 8,126 Reclassification to Vessels and equipment (3) (451,003) (437,735) Total — 132,646 (1) Installment payments in the six months ended June 30, 2024 include $310.8 million for the fifth and sixth installments net of address commissions to New Times Shipyard for newbuildings “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai”. Of this amount, $5.1 million relating to the sixth installments for “Mount Bandeira” and “Mount Hua” was paid in December 2023 in advance of their deliveries in January 2024 and were presented as “Other non-current assets” on the consolidated balance sheet as of December 31, 2023. The Company drew down $295.5 million on the sale and leaseback financing to fund these installments and the installment payments were made by CCBFL and Jiangsu (as these terms are defined in Note 13) on behalf of the Company. (2) Other capitalized costs include direct costs associated with the supervision of our newbuilding program. (3) “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai” were delivered in the six months ended June 30, 2024 and their corresponding costs were reclassified to Vessels and equipment (see Note 11 - Vessels and Equipment, net). Vessels and Equipment (in $ thousands) Cost As of January 1, 2024 437,735 Additions 451,003 As of June 30, 2024 888,738 Vessel and Equipment (in $ thousands) Depreciation and Amortization As of January 1, 2024 (9,118) Charge for the period (11,899) As of June 30, 2024 (21,017) Net book value as of June 30, 2024 867,721 |
Vessels and Equipment, net (Tab
Vessels and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Disclosure of vessels and equipment | The table below sets forth the carrying value of our newbuildings: June 30, 2024 December 31, 2023 (in $ thousands) Opening balance 132,646 176,145 Installment payments (1) 310,773 378,305 Capitalized interest 1,956 7,805 Other capitalized costs (2) 5,628 8,126 Reclassification to Vessels and equipment (3) (451,003) (437,735) Total — 132,646 (1) Installment payments in the six months ended June 30, 2024 include $310.8 million for the fifth and sixth installments net of address commissions to New Times Shipyard for newbuildings “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai”. Of this amount, $5.1 million relating to the sixth installments for “Mount Bandeira” and “Mount Hua” was paid in December 2023 in advance of their deliveries in January 2024 and were presented as “Other non-current assets” on the consolidated balance sheet as of December 31, 2023. The Company drew down $295.5 million on the sale and leaseback financing to fund these installments and the installment payments were made by CCBFL and Jiangsu (as these terms are defined in Note 13) on behalf of the Company. (2) Other capitalized costs include direct costs associated with the supervision of our newbuilding program. (3) “Mount Bandeira”, “Mount Hua”, “Mount Elbrus”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai” were delivered in the six months ended June 30, 2024 and their corresponding costs were reclassified to Vessels and equipment (see Note 11 - Vessels and Equipment, net). Vessels and Equipment (in $ thousands) Cost As of January 1, 2024 437,735 Additions 451,003 As of June 30, 2024 888,738 Vessel and Equipment (in $ thousands) Depreciation and Amortization As of January 1, 2024 (9,118) Charge for the period (11,899) As of June 30, 2024 (21,017) Net book value as of June 30, 2024 867,721 |
Schedule of delivery dates of vessels | The table below presents the dates the vessels were delivered to the Company: Vessel Delivery Date Mount Norefjell March 2, 2023 Mount Ita March 9, 2023 Mount Etna April 13, 2023 Mount Blanc May 31, 2023 Mount Matterhorn July 13, 2023 Mount Neblina August 29, 2023 Mount Bandeira January 5, 2024 Mount Hua January 8, 2024 Mount Elbrus January 11, 2024 Mount Denali April 19, 2024 Mount Aconcagua June 6, 2024 Mount Emai June 13, 2024 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Accrued expenses comprise of: June 30, 2024 December 31, 2023 (in $ thousands) Accrued interest (1) 5,453 1,318 Cash distributions payable (2) 1,756 — Accrued operating expenses 1,525 724 Other accrued expenses (3) 488 489 Total 9,222 2,531 (1) Accrued interest pertains to unpaid interest on the sale and leaseback facilities for “Mount Bandeira”, “Mount Elbrus”, “Mount Hua”, “Mount Matterhorn”, “Mount Neblina”, “Mount Denali”, “Mount Aconcagua” and “Mount Emai”. Bareboat payments on the lease for these vessels are paid in arrears. Six vessels were delivered in the six months ended June 30, 2024 which contributed to the increase in accrued interest at June 30, 2024. (2) In June 2024, the Board approved a cash distribution of $0.04 per share for May 2024 which was paid in July 2024. (3) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of debt | June 30, 2024 December 31, 2023 (in $ thousands) Total debt, net of deferred finance charges 725,451 439,496 Less: Current portion of long-term debt, net of deferred finance charges (23,467) (19,795) Long-term debt, net of deferred finance charges 701,984 419,701 |
Schedule of long-term debt instruments | June 30, 2024 December 31, 2023 (in $ thousands) Vessel financing (Mount Norefjell) 60,045 61,297 Vessel financing (Mount Ita) 60,050 61,302 Vessel financing (Mount Etna) 60,610 61,812 Vessel financing (Mount Blanc) 60,458 61,681 Vessel financing (Mount Matterhorn) 61,518 62,509 Vessel financing (Mount Neblina) 61,535 62,509 Vessel financing (Mount Hua) 62,525 13,683 Vessel financing (Mount Bandeira) 62,525 13,683 Vessel financing (Mount Elbrus) 62,525 13,783 Vessel financing (Mount Denali) 63,000 13,783 Vessel financing (Mount Aconcagua) 63,000 13,783 Vessel financing (Mount Emai) 63,000 13,783 Total debt, gross 740,791 453,608 Less: Deferred finance charges (15,340) (14,112) Total debt, net of deferred finance charges 725,451 439,496 |
Schedule of maturities of long-term debt | The outstanding debt, gross of deferred finance charges, as of June 30, 2024, is repayable as follows: Year ending December 31 (in $ thousands) 2024 (remaining six months) 12,900 2025 (1) 26,913 2026 26,064 2027 27,539 2028 29,563 Thereafter 617,812 Total 740,791 Deferred finance charges (15,340) Total debt, net of deferred finance charges 725,451 (1) $13.2 million repayable in the six months ended June 30, 2025. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and estimated fair value of financial instruments | The carrying value and estimated fair value of our financial instruments as of June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 December 31, 2023 (in $ thousands) Hierarchy Fair Value Carrying Value Fair Value Carrying Value Assets Cash and cash equivalents (1) Level 1 21,946 21,946 25,553 25,553 Liabilities Current portion of long-term debt (2)(3) Level 2 26,119 26,119 21,234 21,234 Long-term debt (2)(3) Level 2 715,151 714,673 429,037 432,374 (1) All demand and time deposits and highly liquid, low risk investments with original maturities of three months or less at the date of purchase are considered equivalent to cash. Thus, carrying value is a reasonable estimate of fair value. (2) Fair value of current portion of long-term debt and long-term debt have been corroborated using discounted cash flow model and market interest rate as of June 30, 2024. (3) Our debt obligations are recorded at amortized cost in the Consolidated Balance Sheets. The amounts presented in the table are gross of deferred finance charges amounting to $15.3 million and $14.1 million as of June 30, 2024 and December 31, 2023, respectively. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of assets pledged | Assets pledged June 30, 2024 December 31, 2023 (in $ thousands) Book value of vessels secured against long-term loans 867,721 428,617 Book value of newbuildings secured against long-term loans — 132,646 Total 867,721 561,263 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of cash distributions | The following cash distributions were declared in the six months ended June 30, 2024: Declaration date Amount per share (in $) Payment date February 2024 0.01 March 2024 March 2024 0.03 April 2024 April 2024 0.03 May 2024 May 2024 0.04 June 2024 June 2024 0.04 July 2024 |
General Information (Details)
General Information (Details) $ in Thousands | Jun. 30, 2024 USD ($) vessel T | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | ||
Dead weight tonnage of dry bulk vessels (in dwt) | T | 210,000 | |
Number of vessels owned | vessel | 12 | |
Cash and cash equivalents | $ 21,946 | $ 25,553 |
Drew Holdings Limited - Revolving credit facility | Line of credit | Related party | ||
Debt Instrument [Line Items] | ||
Credit facility, remaining borrowing capacity | $ 10,000 |
Segment (Details)
Segment (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of computation of earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |||||
Potentially dilutive securities included in computation of earnings (loss) per share (in shares) | 735,000 | ||||
Basic earnings (loss) per share (in USD per share) | $ 0.16 | $ (0.03) | $ 0.21 | $ (0.03) | |
Diluted earnings (loss) per share (in USD per share) | $ 0.16 | $ (0.03) | $ 0.21 | $ (0.03) | |
Net income (loss) | $ 6,863 | $ (1,115) | $ 9,355 | $ (1,138) | |
Issued common shares at the end of the period (in shares) | 43,900,000 | 40,782,857 | 43,900,000 | 40,782,857 | 43,900,000 |
Weighted average number of shares outstanding for the period, basic (in shares) | 43,900,000 | 40,123,516 | 43,900,000 | 36,160,205 | |
Dilutive impact of share options (in shares) | 17,309 | 0 | 8,654 | 0 | |
Weighted average number of shares outstanding for the period, diluted (in shares) | 43,917,309 | 40,123,516 | 43,908,654 | 36,160,205 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2023 shares | |
Earnings Per Share [Abstract] | |
Anti-dilutive instruments excluded from computation of earnings (loss) per share (in shares) | 620 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Interest expense, gross | $ 11,719 | $ 4,716 | $ 22,125 | $ 6,726 |
Capitalized interest on newbuildings | (682) | (2,129) | (1,956) | (3,841) |
Interest expense, net | $ 11,037 | $ 2,587 | $ 20,169 | $ 2,885 |
Operating Leases - Disclosure o
Operating Leases - Disclosure of components of operating lease income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Time charter revenues | $ 31,202 | $ 6,732 | $ 54,783 | $ 8,174 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Time charter revenues, index-linked charters | $ 14.8 | $ 4.1 | $ 23.4 | $ 4.8 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid interest | $ 2,403 | $ 2,410 |
Other prepaid expenses | 2,057 | 997 |
Inventory | 1,289 | 634 |
Other current assets | 802 | 2,402 |
Total | $ 6,551 | $ 6,443 |
Newbuildings (Details)
Newbuildings (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Movement in Property, Plant and Equipment [Roll Forward] | ||||||
Additions to newbuildings | $ 159,408 | $ 125,770 | $ 313,221 | $ 256,585 | ||
Newbuildings | ||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||
Property, Plant and Equipment, Net | 132,646 | $ 176,145 | $ 176,145 | |||
Installment payments | 310,773 | 378,305 | ||||
Capitalized interest | 1,956 | 7,805 | ||||
Other capitalized costs | 5,628 | 8,126 | ||||
Reclassification to Vessels and equipment | (451,003) | (437,735) | ||||
Property, Plant and Equipment, Net | $ 132,646 | $ 0 | 0 | $ 132,646 | ||
Vessel financing arrangement | Sale and leaseback facility | ||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||
Proceeds from issuance of long-term debt | 295,500 | |||||
Mount Bandeira, Mount Hua, Mount Elbrus, Mount Denali, Mount Aconcagua and Mount Emai | Newbuildings | ||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||
Installment payments | $ 310,800 | |||||
Mount Hua and Mount Bandeira | ||||||
Movement in Property, Plant and Equipment [Roll Forward] | ||||||
Additions to newbuildings | $ 5,100 |
Vessels and Equipment, net (Det
Vessels and Equipment, net (Details) - Vessels and Equipment - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Cost | ||
Beginning balance | $ 437,735 | |
Additions | 451,003 | |
Ending balance | 888,738 | $ 437,735 |
Depreciation and Amortization | ||
Beginning balance | (9,118) | |
Charge for the period | (11,899) | |
Ending balance | (21,017) | (9,118) |
Net book value | $ 867,721 | $ 428,617 |
Accrued expenses (Details)
Accrued expenses (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) vessel $ / shares | Dec. 31, 2023 USD ($) | |
Payables and Accruals [Abstract] | ||
Accrued interest | $ 5,453 | $ 1,318 |
Cash distributions payable | 1,756 | 0 |
Accrued operating expenses | 1,525 | 724 |
Other accrued expenses | 488 | 489 |
Total | $ 9,222 | $ 2,531 |
Number of vessels delivered | vessel | 6 | |
Dividends payable (in USD per share) | $ / shares | $ 0.04 |
Debt - Schedule of debt (Detail
Debt - Schedule of debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Total debt, net of deferred finance charges | $ 725,451 | $ 439,496 |
Less: Current portion of long-term debt, net of deferred finance charges | (23,467) | (19,795) |
Long-term debt, net of deferred finance charges | $ 701,984 | $ 419,701 |
Debt - Schedule of long-term de
Debt - Schedule of long-term debt instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total debt, gross | $ 740,791 | $ 453,608 |
Deferred finance charges | (15,340) | (14,112) |
Total debt, net of deferred finance charges | 725,451 | 439,496 |
Sale and leaseback facility | Vessel financing (Mount Norefjell) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 60,045 | 61,297 |
Sale and leaseback facility | Vessel financing (Mount Ita) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 60,050 | 61,302 |
Sale and leaseback facility | Vessel financing (Mount Etna) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 60,610 | 61,812 |
Sale and leaseback facility | Vessel financing (Mount Blanc) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 60,458 | 61,681 |
Sale and leaseback facility | Vessel financing (Mount Matterhorn) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 61,518 | 62,509 |
Sale and leaseback facility | Vessel financing (Mount Neblina) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 61,535 | 62,509 |
Sale and leaseback facility | Vessel financing (Mount Hua) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 62,525 | 13,683 |
Sale and leaseback facility | Vessel financing (Mount Bandeira) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 62,525 | 13,683 |
Sale and leaseback facility | Vessel financing (Mount Elbrus) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 62,525 | 13,783 |
Sale and leaseback facility | Vessel financing (Mount Denali) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 63,000 | 13,783 |
Sale and leaseback facility | Vessel financing (Mount Aconcagua) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 63,000 | 13,783 |
Sale and leaseback facility | Vessel financing (Mount Emai) | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 63,000 | $ 13,783 |
Debt - Schedule of maturities o
Debt - Schedule of maturities of long-term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
2024 (remaining six months) | $ 12,900 | |
2025 | 26,913 | |
2026 | 26,064 | |
2027 | 27,539 | |
2028 | 29,563 | |
Thereafter | 617,812 | |
Total | 740,791 | $ 453,608 |
Deferred finance charges | (15,340) | (14,112) |
Total debt, net of deferred finance charges | 725,451 | $ 439,496 |
Six months ended June 30, 2025 | $ 13,200 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Dec. 18, 2023 USD ($) | Feb. 28, 2023 USD ($) vessel installment | Dec. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Feb. 28, 2022 USD ($) vessel | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 725,451,000 | $ 725,451,000 | $ 439,496,000 | $ 439,496,000 | ||||||||
Proceeds from issuance of long-term debt from related party | 0 | $ 0 | 0 | $ 1,020,000 | ||||||||
AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed interest rate | 5% | |||||||||||
Sale leaseback transaction, lease term | 7 years | |||||||||||
Sale leaseback transaction, purchase option, year three | $ 56,900,000 | |||||||||||
Sale leaseback transaction, purchase option, after year seven | 47,200,000 | |||||||||||
Sale leaseback transaction, cash penalty | 25,000,000 | |||||||||||
Proceeds from issuance of long-term debt | 200,000,000 | |||||||||||
Long-term debt | 241,200,000 | 241,200,000 | $ 246,100,000 | 246,100,000 | ||||||||
AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, minimum cash balances required | $ 3,600,000 | |||||||||||
AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Sixth installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, installments, percentage | 90% | |||||||||||
Sale leaseback transaction, number of quarterly installments | installment | 12 | |||||||||||
Debt instrument, credit adjustment spread | 0.26161% | |||||||||||
AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Sixth installment | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable rate (as a percent) | 4.50% | |||||||||||
AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Sixth installment | Secured Overnight Financing Rate (SOFR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable rate (as a percent) | 4.50% | |||||||||||
CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements | Sale and leaseback facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed interest rate | 5% | |||||||||||
Sale leaseback transaction, lease term | 7 years | |||||||||||
Sale leaseback transaction, purchase option, year three | $ 56,000,000 | |||||||||||
Sale leaseback transaction, purchase option, after year seven | $ 46,000,000 | |||||||||||
Proceeds from issuance of long-term debt | 196,900,000 | 160,600,000 | ||||||||||
Long-term debt | 374,600,000 | 374,600,000 | $ 180,200,000 | 180,200,000 | ||||||||
Sale leaseback transaction, cash balances required, newbuilding delivery period | 180 days | |||||||||||
Sale leaseback transaction, cash balances required, period | 3 months | |||||||||||
CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Vessels and equipment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, net book value | 443,500,000 | 443,500,000 | 146,500,000 | 146,500,000 | ||||||||
CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Newbuildings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, net book value | 87,700,000 | 87,700,000 | ||||||||||
CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, minimum cash balances required | $ 1,500,000 | |||||||||||
CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, financing amount, percentage of newbuilding contract price | 90% | |||||||||||
Debt instrument, financing amount | $ 63,000,000 | |||||||||||
Jiangsu Financial Leasing Co. Ltd (“Jiangsu”) – Sale and leaseback financing arrangements | Sale and leaseback facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, lease term | 7 years | |||||||||||
Sale leaseback transaction, purchase option, year three | $ 56,000,000 | |||||||||||
Sale leaseback transaction, purchase option, after year seven | 46,000,000 | |||||||||||
Proceeds from issuance of long-term debt | 98,600,000 | 27,400,000 | ||||||||||
Long-term debt | 125,100,000 | 125,100,000 | $ 27,400,000 | $ 27,400,000 | ||||||||
AVIC, CCBFL And Jiangsu – Sale and leaseback financing arrangements | Sale and leaseback facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, average daily bareboat rate | 16,567 | 16,567 | ||||||||||
Drew Holdings Limited - Revolving credit facility | Line of credit | Related party | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Facility, amount available to drawdown | $ 10,000,000 | 15,000,000 | ||||||||||
Proceeds from issuance of long-term debt from related party | $ 1,000,000 | |||||||||||
Credit facility, remaining borrowing capacity | 10,000,000 | 10,000,000 | ||||||||||
Drew Holdings Limited - Revolving credit facility | Line of credit | Secured Overnight Financing Rate (SOFR) | Related party | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable rate (as a percent) | 8% | |||||||||||
Mount Norefjell, Mount Ita, Mount Etna and Mount Blanc | AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, number of vessels | vessel | 4 | 4 | ||||||||||
Mount Norefjell, Mount Ita, Mount Etna and Mount Blanc | AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Vessels and equipment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, net book value | 277,200,000 | 277,200,000 | ||||||||||
Mount Norefjell, Mount Ita, Mount Etna and Mount Blanc | AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Third installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, installment | $ 6,800,000 | |||||||||||
Mount Norefjell, Mount Ita, Mount Etna and Mount Blanc | AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Fourth installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, installment | $ 6,800,000 | |||||||||||
Mount Norefjell, Mount Ita, Mount Etna and Mount Blanc | AVIC International Leasing Co., Ltd. (“AVIC”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Sixth installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, installment | $ 2,200,000 | |||||||||||
Sale leaseback transaction, quarterly installment payment | $ 180,000 | |||||||||||
Mount Matterhorn, Mount Neblina, Mount Bandeira, Mount Hua, Mount Elbrus, Mount Denali, Mount Aconcagua and Mount Emai | CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Third installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, installment | 6,800,000 | |||||||||||
Mount Matterhorn, Mount Neblina, Mount Bandeira, Mount Hua, Mount Elbrus, Mount Denali, Mount Aconcagua and Mount Emai | CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Fourth installment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, installment | $ 6,900,000 | |||||||||||
Mount Matterhorn and Mount Neblina | CCB Financial Leasing Co., Ltd. (“CCBFL”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, minimum cash balances required | 3,000,000 | 3,000,000 | ||||||||||
Mount Hua and Mount Bandeira | Jiangsu Financial Leasing Co. Ltd (“Jiangsu”) – Sale and leaseback financing arrangements | Sale and leaseback facility | Vessels and equipment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale leaseback transaction, net book value | $ 147,000,000 | $ 147,000,000 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Liabilities | ||
Deferred finance charges | $ 15,340 | $ 14,112 |
Carrying Value | ||
Assets | ||
Cash and cash equivalents | 21,946 | 25,553 |
Liabilities | ||
Current portion of long-term debt | 26,119 | 21,234 |
Long-term debt | 714,673 | 432,374 |
Level 1 | Fair Value | ||
Assets | ||
Cash and cash equivalents | 21,946 | 25,553 |
Level 2 | Fair Value | ||
Liabilities | ||
Current portion of long-term debt | 26,119 | 21,234 |
Long-term debt | $ 715,151 | $ 429,037 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Vessels and Equipment | |||
Other Commitments [Line Items] | |||
Vessels and newbuildings | $ 867,721 | $ 428,617 | |
Newbuildings | |||
Other Commitments [Line Items] | |||
Vessels and newbuildings | 0 | 132,646 | $ 176,145 |
Asset pledged | |||
Other Commitments [Line Items] | |||
Vessels and newbuildings | 867,721 | 561,263 | |
Asset pledged | Vessels and Equipment | |||
Other Commitments [Line Items] | |||
Vessels and newbuildings | 867,721 | 428,617 | |
Asset pledged | Newbuildings | |||
Other Commitments [Line Items] | |||
Vessels and newbuildings | $ 0 | $ 132,646 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 18, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) vessel | Dec. 31, 2023 USD ($) vessel | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) vessel tranche | |
Related Party Transaction [Line Items] | ||||||
Number of vessels delivered | vessel | 6 | |||||
Mount Norefjell, Mount Ita, Mount Etna and Mount Blanc | ||||||
Related Party Transaction [Line Items] | ||||||
Number of vessels delivered | vessel | 4 | |||||
Magni Partners Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts paid to related party | $ 2,700 | |||||
Related party | Line of credit | Drew Holdings Limited - Revolving credit facility | ||||||
Related Party Transaction [Line Items] | ||||||
Facility, amount available to drawdown | $ 10,000 | $ 15,000 | ||||
Credit facility, remaining borrowing capacity | $ 10,000 | |||||
Related party | Line of credit | Secured Overnight Financing Rate (SOFR) | Drew Holdings Limited - Revolving credit facility | ||||||
Related Party Transaction [Line Items] | ||||||
Variable rate (as a percent) | 8% | |||||
Related party | Drew Holdings Limited | Himalaya Shipping Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Common shares held (as a percent) | 30.70% | |||||
Affiliated entity | Line of credit | Magni Partners Limited - Revolving credit facility | ||||||
Related Party Transaction [Line Items] | ||||||
Facility, amount available to drawdown | $ 15,000 | |||||
Affiliated entity | Line of credit | London Interbank Offered Rate (LIBOR) | Magni Partners Limited - Revolving credit facility | ||||||
Related Party Transaction [Line Items] | ||||||
Variable rate (as a percent) | 8% | |||||
Affiliated entity | Magni Partners Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable | $ 2,700 | |||||
Accounts payables, number of equal tranches | tranche | 4 | |||||
Accounts payables, number of vessels to be delivered | vessel | 4 | |||||
Amounts to be paid for each delivery | $ 674 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 1 Months Ended | 3 Months Ended | |||
Feb. 29, 2024 director $ / shares shares | Jan. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Common stock, value authorized | $ 140,010,000 | $ 140,010,000 | |||
Common stock, shares authorized (in shares) | shares | 140,010,000 | 140,010,000 | |||
Common stock, par value per share (in USD per share) | $ / shares | $ 1 | $ 1 | |||
Increase (decrease) in equity through transfer | $ 0 | ||||
Employee Stock Option | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share options granted (in shares) | shares | 115,000 | ||||
Number of director received grant share options | director | 1 | ||||
Term (in years) | 5 years | ||||
Cliff vesting period (in years) | 3 years | ||||
Exercise price (in USD per share) | $ / shares | $ 8 | ||||
Additional paid in capital | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Increase (decrease) in equity through transfer | $ (97,900,000) | (97,876,000) | |||
Contributed surplus | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Increase (decrease) in equity through transfer | $ 97,900,000 | $ 97,876,000 |
Equity - Schedule of cash distr
Equity - Schedule of cash distributions (Details) - $ / shares | 1 Months Ended | ||||
Jun. 30, 2024 | May 31, 2024 | Apr. 30, 2024 | Mar. 31, 2024 | Feb. 29, 2024 | |
Equity [Abstract] | |||||
Cash dividend declared (in USD per share) | $ 0.04 | $ 0.04 | $ 0.03 | $ 0.03 | $ 0.01 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 1 Months Ended | ||||||
Aug. 07, 2024 | Jul. 08, 2024 | Jun. 30, 2024 | May 31, 2024 | Apr. 30, 2024 | Mar. 31, 2024 | Feb. 29, 2024 | |
Subsequent Event [Line Items] | |||||||
Cash dividend declared (in USD per share) | $ 0.04 | $ 0.04 | $ 0.03 | $ 0.03 | $ 0.01 | ||
Subsequent event | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividend declared (in USD per share) | $ 0.06 | $ 0.05 |