Himalaya Shipping combines a premium LNG Newcastlemax fleet, $17,300 index-equivalent break-even, and 17%+ forward yield with substantial dry-bulk cycle upside.
Overview
Himalaya Shipping Ltd. (HSHP) is a Bermuda-incorporated dry bulk carrier operating a fully delivered fleet of twelve dual-fuel LNG Newcastlemax vessels, each approximately 210,000 DWT. The company charters primarily to institutional commodity trading and mining counterparties under index-linked contracts tied to the Baltic Capesize Index, retaining substantial spot-market upside. **Its youngest-in-class, top-1% emission-rated fleet earns an average 48% premium to the BCI and approximately 25% more than direct peers.** Q1 2026 operating revenue rose 52.7% year over year to $33.6 million, EBITDA increased 77.5% to $24.5 million, and net income recovered to $5.0 million, or $0.11 per share, from a $6.4 million loss in Q1 2025. Forward commercial momentum was stronger, with gross TCE rates of approximately $41,600 per day in April, $57,200 in May, and $52,900 in June 2026. Monthly distributions rose to $0.22 per share in May and June, implying an annualized forward yield above 17% at the $15.37 mid-July price. The five-year probability-weighted price is $27.42, supported by Simandou, bauxite growth, constrained fleet supply, and a high cash pass-through model, although leverage and Chinese demand remain material risks.