Summary of HSHP Q2 2026 Earnings Call

1Key Financial Results and Metrics

Net Profit: $24.6 million, significantly up from $1.1 million in Q2 2025.

EBITDA: $44 million, compared to $20.9 million in the same quarter last year.

Earnings Per Share: $0.52, up from $0.02 in Q2 2025.

Operating Revenue: $53.7 million, an increase from $29.9 million year-over-year.

Time Charter Equivalent Earnings: Approximately $50,600 per day, up from $28,400 in Q2 2025.

Cash Distributions: Totaled $0.59 per share for Q2 2026.

Cash Flow from Operations: $34.2 million, compared to $8.3 million in Q2 2025.

Cash and Cash Equivalents: $34.8 million at quarter-end.

2Strategic Updates and Business Highlights

Entered a new index time charter agreement for the Mount Emai at a premium to the prevailing index.

Converted four vessels from index to fixed-rate contracts at an average of $56,500 per day.

Continued focus on long-term index-linked contracts, with 10 out of 12 vessels exposed to the spot market.

Fleet consists of 12 modern Newcastlemax vessels with top-tier emissions ratings.

Achieved 31 consecutive monthly dividends, reflecting strong capital allocation.

3Forward Guidance and Outlook

July 2026 time charter equivalent earnings projected at about $51,200 per day.

Anticipation of a strong second half of 2026, with potential for continued high demand driven by iron ore and bauxite exports.

Management remains cautious about locking in rates for Q1 2027, preferring to wait for potential market improvements.

4Bad News, Challenges, or Points of Concern

The company faces potential volatility in the market, with a need to navigate changing conditions.

Concerns about the aging fleet, with 46% built between 2009 and 2015 and a significant portion requiring dry dock inspections, which could impact availability.

The current geopolitical landscape and external factors, such as El Niño, could influence shipping volumes and market dynamics.

5Notable Q&A Insights

Management acknowledged the correlation of Q1 performance with other quarters, suggesting a more balanced market moving forward.

There is a cautious approach to covering Q1 2027 contracts due to current pricing spreads.

Asset prices remain flat at high levels, with expectations that they could rise if freight rates improve in the second half of the year. Overall, HSHP reported strong financial results for Q2 2026, driven by increased revenues and strategic fleet management. The outlook remains positive, although there are challenges related to fleet aging and market volatility.