Herman Billung, CEO in 2020 Bulkers, CEO/CFO Himalaya
Bermuda-based Himalaya Shipping, a dry bulk owner, said on Monday that it has entered into time charter agreements for two vessels with a major commodity trading company.
The vessels will begin a 24-month time charter with an evergreen structure upon delivery from New Times Shipyard in the first half of 2024.
The ships will earn an index linked rate, reflecting a “significant premium” to the Baltic 5TC index, and a profit sharing of any economic benefit derived from operating the vessel´s scrubber or running on LNG, as well as certain rights to convert the time charters to fixed rates based on the prevailing FFA curve from time to time.
The chief executive officer Herman Billung of Himalaya Shipping notes that the company has fixed one of its vessels on fixed time charter, and the ten vessels fixed on index linked charter will on average earn a premium of 42% to the Baltic 5TC.
“We are pleased that our vessels are achieving market high premiums. Our simple structure, with index linked charters earning a significant premium, low G&A cost and financing with 7-year fixed bareboat rates puts us in a good position to deliver solid returns to our shareholders,” noted Herman Billung contracted CEO of Himalaya Shipping.
The bulker owner Himalaya has ordered twelve LNG dual fuel newcastlemax dry bulk carriers, six of them delivered already this year, whilst the remaining six are expected to be delivered by the third quarter of 2024.
