Q1 2020 Earnings Call
Thank you Donna and say Oh, you for joining us for the Diana shipping Inc. 2021st quarter Conference call.
So the management team.
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Studies Margaronis president.
He said Caracas interim Chief Financial Officer, Chief Strategy Officer, Treasurer and Secretary.
The Chief Accounting Officer.
Before management begins let me briefly summarize the safe Harbor notice certain statements made during this call which are not historical fact or forward looking statements.
Our provisions of the private Securities Litigation Reform Act.
Looking statements are based on assumptions expectations projections beliefs as to future events that may not prove to be accurate.
No the risks uncertainties and other factors may cause results to differ from the forward looking statements.
For the company's filings with the tea and with that let me turn the call overcome this problem.
Okay.
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Well below.
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Oh gosh.
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Well that Oh.
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[laughter].
Thank you see everything was pretty girls, who has made vehicles.
Indeed so.
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It would be rating.
Created by these guys.
Dry bulk market, but do you get all the promising book.
Well take the rapid expansion will probably.
That said, we agreed habits and pull nurse and dry bulk trade was no exception.
Most of the dry they started the year 976 closed yesterday.
Hey.
But.
The 1003 in January.
And there was yesterday.
Hey.
Both.
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Well that 1006 out of it.
We ended the year and grows in May so do you.
Minus so.
So we looked at least two catches up panamaxes engaged members.
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That's good news, so I'm not going to among them.
Good noting that the I missed the stuff so quite a bit.
The low GDP growth you down to five.
Well the year there to be independent growth.
Cool.
It wouldn't be water growth is expected to be down to 5.8.
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It's empire the <unk>.
Of course, all the normally the I admit it seems I really didn't globalize right back to David.
Early in life.
According to the I unmet.
GDP growth in two years old during the quarter was a negative.
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Well this year as opposed to really gets better.
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In the United States second quarter can block.
As expected to be better.
Well the nearby and expect so we would be going on right by the talking six.
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About three weeks ago child or did that they needed to be valued by 61 days, but then you moved into the school year market. He first will be so we'll be watching those pockets.
In March Chinese.
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Glad to report that in China by keeping the MIT bounded.
5.7.
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You're welcome sign up to be I, do see probably skewed activity.
And then finally internationally.
Have lowered their expectations with Chinese GDP growth will play between people so.
2.6%.
Thank you can be one.
The we revised upwards, but.
Okay.
9.2%.
Relevant highlighted covert.
The.
Commodity price.
We used the victims of the demand will drive by indeed see school got bad debt.
And that's what other promoted okay school in debt.
Got it wrong, but I don't know right is that expected based on.
On average I really dug into that.
Early in the back to my build by around 8%.
As far the rights in other energy.
Meanwhile prices.
How could this it would be the most of it didnt soybean prices are expected to take it pipe.
While these that's been a week and of course Rainbow there is expected to be major.
The man.
Got to the Drybulk rate.
Right, but equally important.
Neither did exactly equal we've done by the spending.
He said I know, we expected demand growth.
I will increase.
Why don't we stood at 9.76 to be in.
As for either more.
And then have babies lots of people wouldn't be the Viber mode is expected to be flat this year around.
Well 60 and.
Nick nearly all properties will growth of about 2%.
There's a weakening demand do you either have already booked across a range of the book.
From Europe, Japan, and South Korea.
Now expected to come on the downward pressure.
However, the blockers going about China gradually getting back to work maybe potentially quota gradual.
Seaborne iron ore trade.
Prices and so I wouldn't.
Leasing imports into China.
Can we ride automotive according to forget drove a two.
Yes.
Just over 1 billion.
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Well it is a glass so there's no seaborne grades are expected to shrink by five cents year in global banking.
Wow.
He says he guided you cannot be no doubt compete.
So part is going to play the Chinese seaborne CFO legal appeared to have crept up very well.
Next we will be production delays.
With that it was quite good.
Now appears likely that go to come under pressure in the coming not to domestic coal production.
He near normal level.
It'll be interesting go live goods.
He can we get deployed by almost 20% this year due to do it I mean, Vicki you thought decline.
Typically been deal come on but there's certainly a weaker demand and then abundance of domestic supply.
Each of your views on the China, you had great prospects like that that.
I'd now like dropping 27.
So the origin code for March 2nd.
Well, it's already noted this goal and that they say, we typically have eaten into China in school distraught.
Coking coal now.
Also reported but we'd like to endemic is expected to really.
Yeah right.
It really doesn't global seaborne coking coal trade is projected to be lined up 7%.
2009.
I had two how do you mean.
<unk>.
Yeah, but they do you get back in South Korea are likely to come under significant Donald Besser. Initially I was exactly what it used to.
But I'm editing the cost reduction and it was such an industry.
It does seaborne exports are expected to do east like 5% play between.
Chinese coking coal imports will be made even this year compared to 2000.
I was born in books, when we go real significant new disruptive new vehicles.
Well gradually really ammonia getting back into either using the name to quote this would be my script Manny you either.
Great bargains on a worldwide basis, he wouldn't grain trade is expected to reach they do but then you see and reached 285 median income.
Thank you couldn't be want to further increase we're pretty excited is expected to be at both in volume grew about 500 million pounds.
Have you will see soybeans radio they used to rolling out projections.
Great Great legal.
He buys that expected these purchases over here so.
So I do believe that you.
Moved in the phase one over the years kind of to be global seaborne soybean raises predicted to go back to that.
I don't get probably them immediately.
Right.
According to Howe Robinson soybean children, but it really benefited from it did well and low locally potency.
So those core deal, but then you're going to need to be needed.
Corporate in between.
We have almost seven people, saying those volumes going into China.
So I didn't say b.
And he will need screwing around the world predictable increased and we just over 92 million pounds. During this coming season and Oh by.
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[noise] discrepancy.
Well it wasn't like they will close.
He didn't get they see lots of different thing because he said that both CATV <unk>.
4.9 need and that will decide to assume.
GAAP or adopted it starts will be you bumped the recycling 62.
Hey, smart to mediate.
Which is used to be locked down get close to being pumped.
Look down so maybe a deliberate either keeps embraces the possible.
At the end to lead the limited reports was a life so working at <unk>.
Got it.
In that market that doesn't mean.
That could be side of things to common.
And then.
Nope worsen over the next two weeks.
Again, according to GAAP, so they've been bulker.
I think we'd love to get the BDC is going to lead the great thing.
Okay.
Utilizing the community.
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Only 1.6 million deadweight with Oh.
My colleagues on this or even the first quarter this year.
76 cents compared to this and you know you.
That's where the Newbuilding order book, David you talked about areas of vehicles at the end of March you, there, but on the Scorsese by 7 million deadweight.
We could be then good night.
[laughter].
Got it also reported that they would be 2 million deadweight looked a.
Oh, there is actually about like <unk> <unk>.
And this goes about thinking about 11.3 media.
It will be delivered this year and 6.8 million.
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This is out there with an overview.
Thank you, ladies and back or bye bye.
Wow.
As we got a sizeable but.
Exactly 2 million deadweight ships with available after the end of March this year.
Which is 20.4 million deadweight scheduled deliveries this year equaled 4 million deadweight that'd be good.
He's probably give all that up and is that about 11 cents to be.
We didn't do if you will note because we got additionally, peaks and the other than 22000 290000 beds.
The order book.
EMEA equaled six to 10000 deadweight tons.
So obviously the order book is concentrated in the larger size eight.
And even 20000 beds via the order.
Even though.
Okay great.
They employ made a bit.
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It's the supply and that he.
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Well just losses on the supply side go because those types of about the need expected to remain limited that they both up.
With that so all the good and the Liberty <unk>.
So basically what it is expected to grow but let's not do one night.
Yeah, it's expected to screen, but equally doesn't.
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Good grief by just over 5%.
It is a bench so.
If you include improvement, but you need but I do.
According to the ultimate goal, which is over the other than 25 indebtedness is expected to remain fully so.
I don't really cool.
But expanding by <unk>.
In 2019.
Expansion is expected to slows down to people in.
Uh huh.
So Dave.
Great and members enrolled into this year by about 1%.
In Colombia under the 90.
20000 beds.
Where is it leaves you expect good bye bye bye.
I need a view <unk>.
Accurate Panamax and post Panamaxes, Dave Adams, we'll see but the ability to deliver video delivery date.
And then we even off that up all inclusive.
Just got committing to get some 65000 deadweight under their 20000.
I like to go <unk> quote that then yes and 2%.
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If we talk about look like.
It does.
We do have you looked at <unk> I.
Although we ended the year involved with them.
The only a few laurie.
Yes.
I think that's around $211.
Very little softer team selling.
[laughter] and difference of about $52.
It seems aboard a corresponding prices were there other than $64.
On the video subscription additions so $52.
But remains very active user friendly to start potential bolt until the end I know much talked about squabble.
Even if it's likely to increase given the price appealing.
It was believed that even lower really know some confusion.
And the reliability, becoming more among them, but is this the old Navy when needed.
Good.
It's back to potentially even grown as you've been decided in schools rather than building that seemed to be enforced.
Yes.
I'd now like <unk> earnings.
How many of the make up the out Nucor.
But it was unveiled this is going to make days graduates basin as you've got.
Okay.
Now with respect and then and then like they do you do.
I mean, possibly do so as you batteries.
Even more.
But it's probably not Commodore research it Didnt believe who weakness and much of the global economy like because it.
China continues to pay the good news, though.
In Chinese automotive, which is expected to remain reasonably strong yields will probably do but that wasn't diploma losers.
It appears unlikely.
<unk>, Jamie boots on the United States.
Yeah, good to great.
Who gave up.
Oh I'm certain people you future there will be shipping market and we'll be going on there because there was something that is.
It would certainly be probably at some stage.
As to be fueled by the B that there's nothing happened over the short term.
There was nobody would probably 21.
They believed to be pandemic <unk> second opportunities here and.
Yes.
Actions to bring that bankruptcy.
Gordon Wilson and system wide I mentioned strain.
<unk> cost would be able to find the long term solution portfolio like.
At the beginning to see any signs and.
This is yeah, that'd be a movie business environment.
Are you seeing drybulk sector of the shipping and once again.
Yeah.
On balance sheet providers.
Option, and Oh goodness that would be doing well.
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They will go on them.
Many of our cost structure.
Investment is out of the problems and we were able to the dividend will show.
According to reports when prevailing conditions in late December.
Good.
I lost a lot, including Chief Financial Officer, you ended up here.
Mhm provides us the financial highlight Lucas.
<unk>.
Good morning, everyone.
I'm very pleased to be discussing today you do.
So, but as you know exhausted that pretty much been did not the oh that <unk>.
Well my new build usually nahs ended in two years. All these companies have been done getting there. They also do but another line.
So during the fourth though we recorded a net loss attributable gold on football games on the 4.3 million as you go live or one point when do you want go lives this woman to.
Oh it.
As a result, due to the $93.1 million something better than looks on that the volume.
She reports school ongoing they.
We'll go those four law school.
Which means that there's a lot because that's the going better than it was.
It wasn't the only real going 15 build up that.
As you are aware.
[music] <unk>, even told piece of all that sits in another one that that's what sort of 2000 blended.
Closed the because he's doing as they go to 3000 8000 lots compared to both our somebody on the blended for the same.
Well if the overall 2019.
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The less Oh. This is Dave together, we may be viewed it as it must have been because led to lower revenues of $43.8 million. When does it if it's going to be immediately with us little bit of 2019.
Another example, did we get even the revenues was that at least you delay. This one which was 96 going both a simple doesn't 99.7% for the same quarter of 2019 and you can understand obviously was mainly used before was 19 that delayed.
The data science after they do the money, but he has to be a there but to the Delta was 11 2000 11200 $70 billion.
Well, there's too if you.
I wasn't built on there did you see the though therefore, the been brought that up to 49.
In addition to the unfold we had been increasing the voted the best expenses over the 47 million little before the war, but when both <unk>, even though they will defend global 2009.
And that the three when you look at it but there's still work you do.
Combined together.
They are among the good amounting to one point, but and you don't hold those who do a wonderful new deal gained up we've got the same either the last year.
Beauty, we discuss warfare all vessel operating expenses amounted to BRL 1 billion. Putting me then go there basically getting used to go important to do.
Although they still but a number over but having said that there was lower than that but do you view as well.
They legal but they do business.
At least 5000 to find that amazed compared to $5175 for the same goes it will be above the 90.
All of general and administrative expenses were increased 9.5 million compared to 7.5, new that they samples and less yes. That's due from that as it makes it a school board members, who shows up to be vested being the best little bit of resolving doing.
It's good news they'll be booked anymore do that.
By now well see some all did it would be going for me they'll go back to 7.7 million in the same global 2019.
Yeah.
These degrees.
Was there you've been moved to the degree of June, but if you do they've been pretty soon but are they still up both because of that as compared to the same board with over 90.
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Once again.
Two questions at this time.
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Thank you Hello, everyone and.
Hi, Cinderella, it's good to speak to you and I'm looking forward and again that's about it.
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Yeah, the just wanted to you've obviously.
Year to do so.
But the Drybulk market.
Backed up on the write down on the ships today, it's not a surprise given the extreme weakness that we can see each other they separate from ship values and apologies. If you already addressed this in your opening remarks that one's just get a sense of how many of the what differentiates you own they've got a term applied to and.
Vessel class specific.
Age or just some color on that would be helpful. Thank you.
I am I will be on it we've had nine evolve but is that.
That's what they've been Thurman and.
I don't say that'd be the slots, especially because we had some capesizes and some.
I must be what we've moved up.
You understand about the they're motivated we view. These things you know how has that you've done they do have to they've got onto other dogs that due to the revenues there, though they increased.
Why do you.
They still brazing expenses, they will come up and the number that both he would they didn't that embodies avago. The vet that goes into the Oscar by doing this year.
The other than that but.
Embezzlement is not about being.
With that being said I've into every one.
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Along as we have taken with it.
Yep.
I think I know the answer but then we live in network.
Covenant threshold, but oh.
Oh.
Yes, there is no.
Yeah. Good there is also again well get they'll go get also that most of the delve into the long City school absolute survivorship, rather lumpy, but that outcome and book, but.
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I was on the mob development.
Yep.
And on younger.
You know as interim CFO. According to the 20, you know look like debt repayments are pretty manageable. This year I think it was around the 40 to 50 million Oh the city next year.
Maybe about 40 million or repayments for them.
As you think about refinancing and looking at the capital structure.
Those you know the 48, calling for this year. The 140 for next year I'm going to these payments you see being able to defer I just by virtue of refinancing.
Yes.
They do a lot quicker.
Well, we are both usually a burden we like the model.
Talking about some of these facilities.
Oh, not very well, you'll know that we are boxes on that but it's better.
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Okay, I'll look forward to that and maybe just.
One more if you don't mind, just want to think about the cash obviously in a nice cash position.
But the guys that 90 million and you think about just the the kind of coming in in the second quarter I know that was supposed to get sold for <unk>.
8.75 million or those patients already in a in the balance sheets are coming in the second quarter.
Oh no revenue in the problems.
Okay, Alright, well that's it for me thank you.
Okay.
That's fair question [laughter].
Okay.
Our design.
The goal.
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I only available for them and they they hopefully on better and that we own congrats on the new role here.
Yes, thank you very much.
Oh, yes.
Last quarter.
Sales of Calypso and Norcal book.
No corporate goals.
For the Calypso and some of the older vessels in the near term or medical sales, even an option.
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Good news for the buyback or are there and if that.
However.
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Again, I, you know I'm very well certainly we will not be will not be.
Well, so selling the older going up in Libya moved a bit Simpson used to something that we are today.
As regards the proceeds Columbus data.
No that it went up.
Today I will speak remain name of the game, but I'll say the is do better.
And therefore.
Most of them to 90 days that we wouldn't be the money aside from the base. However, having said that was the Olympics lubich spinning situation.
The advisory football both key.
But I do if I was hoping is very very distressed then.
We may do somebody basis is.
Having said that you understand that.
You've got begin to build Michigan, but we are adding then Betty.
But the variability.
We see no.
And investing lots and not be investing large amounts of money.
On anything and then do you read the war engaged.
The denied.
The walked through on that.
Sure and sustainable.
Let them kind of Unchartered territory, you know clearly the first half of <unk> corn doesn't it.
But we still believe foods before.
And even last year.
Doing so.
This year compared to those views that rebound in coming months.
Yeah, I know the positive they have fallen volumes out of the men do.
But I had the best way themselves and the others, but there must have made doesn't mean that sits on top of 2000 at wendy's, but we are.
And we'll be on the dot com.
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The first time, let me see.
But also in the demand used to.
Maybe ill walk the born on these having a problem.
The idea we have won those economies.
Well then we are talking about almost the entire was.
Due mainly.
Possibly change has been booking and therefore.
I don't think that anyone should be unable to reach into these talking about the speed beauty gravity and because they understand that everything depends on too many companies no I know that.
As of Monday, I want to be spent I just need is a stimulus bucket just around the world.
And that's been the B bench or.
What type of stimulus packages in the where the money I wanted to spend.
And then he's a good scenario, where there's money spend beneath what plateaued and.
That being said that we got to you at all my beautiful, but I don't being the venue on shoot big that's an ideal.
Being the most probably [noise].
Okay, and then with those then how're you.
[laughter] learn to that.
Sorry, short term burden and nine months.
No the longer term 12, 18 24 month.
No we keep a good news without the need.
We should do.
Some long term and some shows.
Well, we don't want to doing you Scott the locals lessors opening up the same die.
And and document period, where everything is really buy them how they local that's been focused.
So you should be expecting the golf I need to do the same being that we were doing a the last 15 years.
And you have to understand that and when do you have a good deal, but do you do not the men based and what's stopping that otherwise do multi physics, but.
And.
We have too many safety volumes when one safety values not today. The physician there's been lots of is going to do that that up at each month, and therefore roles both the NOL.
This is not what we're going in.
Yeah.
But oh, let's differently, which had anyone else clubs and take care.
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Thank you again.
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[noise] [laughter].
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