Diana Shipping, Inc. Q3 FY2024 earnings call

• Market conditions: Capesize vessels maintained strength with higher returns, while smaller segments weakened; secured period deployments for nine vessels with higher rates than previous fixtures.
• Company snapshot: Operates a fleet of 38 dry bulk vessels, 7 mortgage-free, average age 11 years, total deadweight capacity ~4.2 million tons; anticipates delivery of two methanol dual-fuel newbuilding Kamsarmax vessels in late 2027 and early 2028.
• Financings: Issued $150 million senior unsecured bonds, signed term loan facilities, refinanced debt; raised $25.5 million through warrant exercises.
• Chartering: Secured favorable time charters for nine vessels with weighted average daily rates higher than previous fixtures.
• Dividend: Declared a quarterly cash dividend of $0.01 per common share for Q3 2024.
• ESG: Committed to eco-friendly technologies, transparency in emission data, equity diversity, and investing in people.

Diana Shipping Inc. had time charter revenues decrease from $62.1 million in Q3 2023 to $57.5 million in Q3 2024. Net income was $3.7 million compared to $7.4 million in the same period in 2023. Cash and cash equivalents were $186.8 million as of September 30th. Fleet utilization reached 99.7% in the nine-month period of 2024. The company's net debt stands at 7% of market value. Total secured revenues as of November 19th were approximately $135.3 million.

• Anticipates delivery of two methanol dual-fuel newbuilding Kamsarmax dry bulk vessels at the end of 2027 and early 2028.
• Fleet utilization was 99.7% in the 2024 nine-month period.
• Breakeven TCE estimated at ~$16,765 for 2024 if FFA rates hold; close to breakeven in 2025 with current FFA rates.

• Market disconnect between Capesize and smaller segments due to steady flow of Kamsarmax and Ultramax newbuildings.
• Geopolitical developments like Red Sea rerouting impacting Suez Canal transits.
• Chinese economic struggles and property sector affecting demand.
• New environmental regulations driving ships to scrap yards.

Q: Provide an update on the minority investment in four CS vessels, including delivery timeline, potential CAPEX, and employment.

A: Total commitment on those vessels is €50 million, around €33 million has been paid, with the remaining €15 million to be paid soon. Delivery of the first vessel is scheduled for September 2025, with another vessel every three months. Preference is to enter long-term employment.

Q: Talk about capital allocation priorities, fleet renewal, deleveraging, shareholder returns, and share repurchase.

A: The company is disciplined and will act at the appropriate time in the cycle. Renewal of the fleet will happen when appropriate, and share repurchase can occur at the appropriate time. The balance sheet supports the ability to do these things, but specific details on asset allocation and exact repurchase plans are not provided.