Q4 2021 Diana Shipping Inc Earnings Call
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Once again, ladies and gentlemen, we thank you for your patience and please continue to standby the Diana shipping conference call will begin shortly again, the Diana shipping conference call will begin shortly.
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Greetings and welcome to the Diana Shipping Inc. 2021 fourth quarter conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formula presentation. If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Please note. This conference is being recorded I will now turn the conference over to your host Investor Relations. Thank you you may begin.
Hilary Thanks to all of you for joining US let me remind you that.
Under the Safe Harbor notice, which you can see at the end of today's news release certain statements made during the call which are not historical fact are forward looking statements under the safe Harbor provisions of the private Securities Litigation Reform Act.
For a description of the risks and uncertainties and other factors.
Affecting these statements please refer to the Companys filings with the Securities and Exchange Commission.
And now without further Ado. It is my pleasure to turn the call over to MS. Semiramis, <unk> Chief Executive Officer.
Thank you Ed.
Good morning, ladies and gentlemen, and welcome to Diana Shipping Inc. Fourth quarter 2021 earnings call. My name is Sumit I missed <unk>, the company's CEO and it is an honor to have the opportunity to present to you today.
Joining me this morning on the call are Mr. Stacy Motors that only president of Diana shipping.
Instead of you on the Rockies, CFO and Chief strategy Officer Mr.
Let's first talk about the reform Chief operating officer, and MS money or is it the company's chief accounting officer.
Before I begin I kindly ask everyone to review the forward looking statements applicable to today's presentation, which can be found on page two of this presentation.
Okay.
Okay.
Yes.
This has been a financially strong year and a fantastic fourth quarter.
That's if conditions remained robust during the last quarter have contributed to making 2021, the best yes, dry bulk market since 2008.
Throughout last year, we took advantage of the favorable market conditions, and we were able to increase our profitability further strengthen our balance sheet reduce our cash flow breakeven points and looking positive cash flows which have allowed us to initiate what we believe to be a sustainable quarterly dividend.
Based on the current market conditions.
Now, let's turn to page four slide four I will.
We'd be here with you the company's snapshot as of today.
So this is a confirmation of the Oceanside spinoff, which resulted in the disposal of three of our older vessels and they're taking delivery of our recent acquisition the motor vessel no need us P. C last week, we find ourselves owning and operating 34 vessels in the water with a carrying capacity of approximately $4 4 million.
Deadweight tons.
For vessels of which remain on mortgage.
We expect our fleet to grow by one of the vessels by the end of this quarter. After we take delivery of our previously announced resale Newbuild Cape size acquisition, the motor vessel, Florida.
Our fleet utilization has remained at very high levels coming in at 99, 1% for the full year 2021, as compared to 97, 9% for 2020.
So I think two vessels in our fleet are managed in house by Diana shipping services and two vessels are managed by our 50 50 joint venture Diana Williamson management limited at the end of the fourth quarter, we employed 819.
Let's see I'm not sure.
Yes.
Moving on now onto slide five I will go over the highlights of the fourth quarter and recent developments.
More specifically in late November of last year, we completed the spin off transaction of Ocean, Paul Inc, which we believe rewarded and created value for our shareholders.
As previously disclosed Ocean power acquired three of our oldest vessels and began trading on the NASDAQ capital market as a separate and independent company.
In December we successfully concluded our tender offer and we purchased approximately 3.5 million common shares at a price of $4 $25 per share. We believe that this actually presents once again, a strong vote of confidence for the long term prospects of our company.
Also in December we agreed to purchase a modern Japanese built resale new building Capesize vessel the vessel will be named Florida, and we expect her to be delivered in late March.
This vessel is being built under very high standards with the latest environmental and technological specifications VSAT.
This acquisition is another step forward for the renewal of our fleet.
In January of this year, we received approval for the lifting of $125 million senior secured bonds in the Oslo stock exchange listing became effective in February .
Also in February we took delivery of our 2011 Japanese built <unk> vessel the motor vessel <unk>.
And she has already begun trading profitably in our fleet.
The strong profitability and positive cash flow generation in the fourth quarter has enabled us to be able to declare an increased cash dividend for the fourth quarter of 20 cents per share.
This is double the cash dividend paid last quarter and demonstrates our ability to pay a very attractive dividend under the current market conditions.
Our board will continue evaluating those conditions for the declaration of potential additional dividends for the quarters to come.
Lastly, our consistent chartering strategy has allowed us to have currently secured approximately $184 million of contracted revenues for full year 2022, with 62% contract coverage and $25 6 million U S dollars a protracted revenues.
For 2023 with 8% contracted coverage.
Yeah, Amit will provide later on a more detailed analysis of our cash flow generation potential based on the current market environment.
Turning now to the financial highlights of the fourth quarter of 2021 on slide six.
We find ourselves as of December 31st 2021, with a cash and cash equivalents position of $126 8 million U S dollars, including restricted cash as again $82 9 million U S dollars as of December 31st 2020.
Our debt net of deferred financing cost stood at $423 7 million U S dollars at the end of the fourth quarter of 2021 as against $423 million at the end of 'twenty 'twenty.
Our time charter revenues for the quarter for the fourth quarter of 2021 amounted to $68 8 million U S dollars as against $42 $7 million for the fourth quarter of 2020.
Lastly, our earnings per share for the fourth quarter of 2021 came in at 48 cents versus a loss of 10 cents per share for the same period of 2020.
Yeah, we go over these as well as the full year numbers in more detail further on in the presentation.
Moving onto slide seven we find the summary of all of our recent chartering activities.
Once again, consistent with our conservative and disciplined chartering strategy, we have taken advantage of the robust chartering market and have secured attractive time charters for 13 vessels of our fleet.
More specifically, we chartered five panamax to post panamax vessels at a weighted average daily rate of 21176 U S dollars and for our remaining average period of 348 days per vessel.
We have also chartered eight capesize vessels at a weighted average rate of 25000.
$38 per sorry.
Sorry, what did I say $25038 per day for our remaining average period of 369 days. It should be noted that the fourth quarter's fixtures, where have a significantly longer duration than the ones of the third quarter.
We intend to keep chartering our vessels in a similar way by staggering maturities locking in cash flows and positioning us in a manner that allows us to continue to participate in the market in a balanced way.
Yeah, Alex will provide more insight on this when he goes over our employment strategy in more detail.
Later on during the presentation.
And I now turn it over to him to go over the financials in more detail.
Yes.
Thank you.
I'm very pleased to be discussing today as always.
We view the IMAX theater operation on these jobs for the first quarter and the year end.
December 31st 2002, when do you want.
For the quarter ended December 31st 2021.
We recorded a net income attributed to common stockholders of $39 7 million.
That's a zero point 51.
Dollars per basic share or zero point 48 per diluted share.
This includes.
Of course, a $15 3 million gain from the spin off a portion part.
But zero point $18 per diluted share.
Our time charter revenues increased from $42 7 million in the fourth quarter of 2022.
It was $68 8 million in the fourth quarter of 2021.
Which is an increase of about 61%.
Although if you remember we have a <unk>.
As the number of vessels in our fleet.
Of course.
As a result of our chartering strategy and at the same time being.
And could easily chartering.
We could ease voyeurs expenses by eight by $800000 in the comp in the quarter compared to the $3 million for.
The same quarter in 2020.
And we had a gain on bankers of $2 8 million compared to $200000.
Of a loss.
What we had last year.
Our vessels operated.
<unk> expenses for the fourth quarter of 2021 decreased by about 19%.
$218 2 million compared to $22 4 million last year.
Of course, that's due to the fact that we have less vessels, but.
At the same time, we managed to decrease the better version.
Opex, which we're going to see that as laid it all out.
General and administrative expenses increased to $8 1 million compared to $7 million for the same quarter last year, mainly due to increased cost on the restricted stock awards and legal and audit fees that was.
Partly offset by decreased payroll of course.
Interest and finance cost increase in this quarter due to the increased interest resulting from increased average debt compared to the same quarter last year and increased amortization of financing fees, resulting from loan refinancings.
As mentioned above during the quarter the company completed the spin off a portion and.
And three subsidiaries owning three or for the older vessels of our fleet.
With this transaction the company was able to benefit from the increased market values of the vessels and realized a gain of $16 $3 million.
We could easily average age of the fleet and provide value to its shareholders by distributing the share so fortunate butler as a dividend.
Now if we look at the year end numbers for December 31st 2021, net income attributed to common stockholders amounted to 51 6 million.
That's zero 64 per basic share or zero 61 per diluted share, including the gain from the spinoff pension.
Hi, David.
The time charter revenues again increased to 214.
<unk> million dollars in 2021 compared to $69 $7 million last year for the same reasons that we explained earlier.
The voyage expenses decreased to five 6 million compared to $13 5 million in 2020.
Again this is due to a gain from bankers.
Compared to a loss that we had.
Last year of $3 7 million.
In total the general and administrative expenses decreased to 220 <unk>.
$29 2 million compared to $32 million in 2020.
Mainly due to the accelerated vesting of restricted shares of board members in 2020, and also due to decreased payroll costs and DNO insurance.
Interest and financing costs amounted to $20 2 million compared to $21 million last year due to decreased average debt in interest rates.
Of course.
A decrease was partly offset by increased amortization of financing.
Finance charges due to this year's loan refinancing.
If we move to the balance sheet date.
Data as of December 31st 2021, our cash and cash equivalent.
And the restricted cash increased to $126 8 million.
I have to mention here that the restricted amount on this number is only $16 5 million 165.
And compared to $82 9 million that we had in total.
In December 31st 2020.
Of course, that's me that's because of the increased cash from operations.
<unk> vessels and due to the refinancing agreements we enter into 2021.
Accordingly as of December 31st 2021, the long term debt of ours net of deferred financing costs amounted to $423 7 million compared to $420 3 million as of December 31st 2020.
Vessels net decrease to six.
$143 5 million compared to $716 2 million last year due to the sale of four.
Vessels of hours and the contribution of three vessels to wash impact.
Yeah.
Moving to the selected financial data.
As of December 31st 2020, we have agreed to sell three vessels, which were delivered to their new owners in the first quarter of 2021.
Additionally, in the first quarter of 2021, we agreed to sell the vessel in the US which was delivered to get owners in July 2021.
In addition in November 2021, we completed the spinoff of <unk> pilot with the contribution of three vessels.
The removal of these vessels from our fleet resulted in less ownership days during the reported quarter and year 2021 compared to the same periods last year.
Nevertheless fleet utilization for the fourth quarter of 2021 remained.
The same with the respective quarter of last year at 19, 6%.
The improvement of the market conditions in 2021 was shot with our daily time charter equivalent rate for the quarter of 2021 almost.
Compared to the fourth quarter last year and increased to 21354 from nine.
From $10 $940.
As I was saying earlier this year at the same time, we managed to reduce our daily operating expenses for the fourth quarter of 2021.
<unk> $5657 compared to 6000 zero 89 for the same quarter of 2020.
Which represents a decrease of approximately 7%.
The decrease is mainly due to decreased average crew costs.
Insurances and operating expenses.
In 2021 fleet utilization increased to 99, 1% compared to 97 nine.
In 2020.
And that is due to the fact that we had less off hire days in 2021.
2020.
The daily time charter equivalent rate in 2021 increased to 15759 compared to 10910 last year.
For the same reasons we explained.
We also managed to improve our daily operating expenses for the whole year was decreased by 3% compared to 5596 compared to $5 750 last year.
That decrease was mainly due.
Fact that we manage to have decreased expenses for spares and repairs and other operating expenses.
Moving to the debt amortization profile of ours, we have mentioned that in the past but.
If you remember we have concluded three loan refinancing agreements one with ABN amro for $91 million, which was concluded in May 2021 <unk>.
We refinanced five existing loans.
Another one would not be a $425 million bomb.
Concluded in June 2021 to refinance part of our 100 million dollar bonds, which we repurchase in <unk> 2021.
And this here.
Was the loan agreement with Nordea all of these agreements.
We have made with the purpose of extending the maturities of our loans to future periods.
We understand that this enhances the ability of the company do to pay dividend to our shareholders.
Okay.
As a result on the current debt amortization profile, we expect to pay the first balloon payment in the third quarter of 2023.
So it is clear to me and to the company.
Current debt amortization profile has strengthened the company's balance sheet and position in the market.
So the effect that I explained earlier.
Moving to the next slide you can see here our breakeven.
Which as of December 31st.
Our breakeven rate that Youll see that includes all of our expenses stood at $13 $991 per share.
Vessel per day.
Now if compare that if we compare that.
The average daily time charter rate that we expect to achieve from our time charter agreements already fixed until February .
22 of 2022, it is evident that the evidence that is expected from these agreements will cover our costs and the result to net income.
From operations.
As you can see here in this slide.
We have already fixed as we have said, we haven't fixed base of 38%.
For 2022.
The <unk> revenues that we have explained earlier these are $184 million.
And also you can see if you remember the last presentation of hours that the average contract duration have increased.
Talk a little bit over a year in the previous quarter. It was.
Below.
Here.
Moving to the next slide.
Yes.
You can see.
That the already fixed days.
They cover the.
The cash flow breakeven of ours.
And whatever else is going to be fixed for 2022.
Essentially is going to be.
Free cash flow.
You can see that on the slides that we have here if we assume that our vessels are not.
As the rates below.
Sure.
The FFA trades.
So.
With this in this slide it is.
For us.
It gives us.
Kind of assurances to believe that.
Our dividend capacity is going to be there for the 2022.
And.
Our board of directors.
During the next quarter and the quarter after that.
Further down the road.
We'll be able to declare.
A very nice dividend for our shareholders.
And with that I would like to pass the presentation to Stacy amount of that one is for the market overview as we do every quarter.
Space.
Thank you Jeremy.
One can certainly not criticize the dry hot market for not providing sufficient excitement over the last year or so to investors of shipping analyst shipping bankers and all involved in the sector of shipping approximately booming containment sector. The dry bulk sector certainly take second place as regard the.
Recent at least volatility among various sectors of shipping.
We would therefore like to start this last section of our presentation with two slides depicting the dry bulk indices versus the 12 month time charter rates of large buckets.
So in slide 17 and 18.
They help us to reconfirm, the much greater volatility affecting the spot market compared to the volatility we have witnessed over the last few quarters in the 12 month time charter rates for large bulk goods.
For example, the Cape size 12 month time charter rate moved from about $36000 a day in the early part of last October .
$224000 a day in January of this year.
In comparison the spot.
The Cape Index went from a high of 10 485 equivalent to about 87000 per day five PC average.
<unk> last year to a low seven go to in January of this year the equivalent of $5826 per day on the five PC average.
As Clarksons pointed out Capesize spot earnings averaged a mere $8000 per day during January and the first half of February .
Because always been known that spot trading large bulk carriers was noteworthy screen carpet, but we feel it is interesting to see this extreme volatility expressed in concrete numbers.
Because these oscillations environment fluctuations that Diana chartering strategy, which has been described several times in the past seeks to smooth out over time.
On the next slide 19.
We look at the main demand driver for the bulk shipping industry, which is global GDP growth.
Unfortunately, the IMF has been downsizing G.
<unk> growth estimates over the last few months for example world GDP is expected to increase four 4% this year down from the previous forecast of 5%.
Forecast is still at three 8% growth for 2023.
For China, the GDP growth forecast has come down to four 8% from five 6% for 2022 and stands at five 2% for 2023.
The United States. It is expect the economy is expected to grow by 4% this year down from five 2% estimate and two 6% in 2023.
As for the Euro area GDP growth is expected to come in at three 9% this year and two 5% for 2023.
According to Braemar <unk> cited several key reasons behind the latest downward revisions.
Firstly, the new COVID-19, very omicron.
With introduction of mobility restrictions and consequently, lower economic activity.
This has coincided with a period of high energy prices and continued supply chain disruptions, resulting in higher inflation than previously expected.
Lastly, the depressed Chinese real estate sector and slower recovery of private consumption has kept growth prospect.
Well these are bound to affect slightly the demand increase forecast for the transportation of dry bulk commodities.
More importantly, however, it's bringing my point about devoting the Ukraine may have a broad based negative impact on the dry bulk market with ports in the black Sea coating operations for an undetermined period of time.
<unk> already started to see some initial negative effects on trade in that area.
Turning to steel production. According to Maersk broker global production of steel reached 195 billion tons in 2021, which was up 4% from the prior year.
Chinese steel production dropped 3% last year, while according to bank here of course, the steel production outside China increased by 14% year on year in 2021.
According to Clarksons, given the existing restrictions in China, and crude steel output Chinese iron ore imports are.
I would expect it to remain under pressure this year.
Turning to iron ore on slide 19.
Worldwide basis iron ore imports are projected to increase by 1% this year and remained steady during 2023.
According to Clarksons Chinese seaborne iron ore imports are currently projected to decline by a further 1% in 2022 after dropping by 3% in 2021.
As regards coking coal.
Global coking coal trade is initially projected to grow to grow by around 4% in the full year 2022, as steel demand and production looks set to continue to grow steadily in key regions around the globe.
Growth of about 3% is projected for 2023.
For steam coal worldwide demand is currently projected by Clarksons to grow by 1% this year with lower economic growth and rising domestic production in China, where government policy seems to provide limited support for imports of this commodity.
Chinese seaborne thermal coal imports are initially projected to decline by 13% this year, even though as Clarksons point out. This outcome is by no means certain.
According to Commodore research are positive for coal imports in China that hydropower electricity production has continued to fall on a year on year basis.
However, electricity production from other renewable sources, such as wind power production solar and even nuclear energy has been increasing steadily.
In slides 19, and 20, we can look at the overall coal trade.
You mentioned that Howe Robinson.
We believe that with price pressure building up on all energy sources. During 2021 code prices of both thermal and coking coal went up dramatically.
After a decade of low prices and declining investment in the coal industry supply has tightened.
This was made worse by labor shortages heavy rains and limited access to heavy machinery, which made it impossible for miners to even maintain previous volumes of coal exports.
Even Europe , where coal consumption, because we strongly discourage for years increased its coal imports, which even at $261 per ton.
<unk> well below the equivalent gas prices.
This difference will widen even further in favor of code with the anticipated increase in gas prices following Russia's invasion of Ukraine.
Mainly exporters of cone worldwide in 2021, where Australia, with 31%, Indonesia, 28% and Russia, 15% of exports.
In view of the imminent trade sanctions fastest coal exports to Europe in the west as well as elsewhere in the world, We will probably have to be replaced by corn from other exporters, including South Africa.
Therefore, a combination of tight supply and high prices may According to Howe Robinson limit calls positive impact on the dry bulk trade in 2022.
Lets turn to grain imports now.
According to Clarksons. The overall global seaborne grain trade is projected to grow by about three 7% this year and by a further two 2% in 2023 and.
Uncertainty prevails due to several factors not least of which is the developing Ukraine, Russia situation.
In this respect it is interesting to note that according to Clarksons from the $542 million total grain exports are expected to be shipped in 2022.
<unk> 50 million tons.
I would expect it to come from Ukraine, and the further $46 6 million tons from Russia.
A conservative assumption would be that the large part of these exports will not happen and will be replaced with cargo from other exporting areas, mainly in north and South America.
During the first quarter of 2022, most of the soybean exports to China coming from North and South America will now come solely from the U S. Due to soybean crop damage caused by adverse weather conditions affecting primarily Brazil.
On slide 21, we can look at the dry bulk order book and supply side issues.
According to <unk> Costa in 2021, there were just 353 dry bulk carriers delivered with an aggregate capacity of $35 8 million deadweight.
This was down about 25% in deadweight terms compared to 2020 in.
In 2022, the expectation is for about 332 units of 2000 826 million deadweight to join the bulk carrier fleet after accounting for slippage and cancellations.
From these deliveries about 52 are expected to be capes, NVA, Lucy with a deadweight of about $10 5 million deadweight.
According to <unk>, the net fleet growth in 2021 came in at about 4% year on year.
Net fleet growth in 2022 is expected to be 2% with deferred a small increase of 1% to take place in 2023.
The order book for Capesize bulk carriers remains a modest according to Clarksons. There are $26 4 million deadweight of Capesize and post capes on order, representing 7% of the dry bulk fleet.
Yes.
Most of these ships will be delivered this year and next approximately $11 million deadweight each year. According to <unk> Costa net Cape in VLCC fleet growth. This year is expected to be approximately 2% and about the same in 2023.
There are $19 2 million deadweight worth of Panamaxes on order, which is about eight 1% of the total Panamax fleet.
About $9 3 million deadweight will be delivered this year and $10 and a $5 million in 2023.
The order book for smaller bulk because he's even lower giving a total bulk carrier fleet New building order book of $64 1 million deadweight equivalent to only six 8% of the total bulk carrier fleet.
Looking quickly at congestion as we will also mentioned later on congestion at ports around the world is keeping about 36% of the active fleet tied up waiting to load the discharge.
Two weeks ago congestion increased by 84 vessels in only one week and that was only at major Australian and South American loading ports as well as Chinese discharging ports.
We pre COVID-19 average from 2016 to 2019 stood at around 30% of the active fleet.
According to Clarksons now looking at the Green transition.
35% of vessels on order measured by <unk> set to use alternative fuels primarily LNG.
<unk> is dominant for new LPG carriers, while there have been several orders for methanol fuel container ships.
Although there remains a great deal of uncertainty over the timing and technology choices. The fueling transition is expected to be a key driver of fleet renewal and new building interest at shipyards over the coming years.
Diane is forthcoming addition to the fleet the Japanese new building Capesize vessel, Florida will be fueled by low sulfur fuel and powered by tier three main engine and auxiliary engines as regards.
Sulfur oxide emissions and nitrogen oxide emissions.
Turning to the outlook now for our industry, we agree with Commodore research that it is encouraging to see that in 2021 ordering activity stays there will below the highs seen in 2013 14, even at spot rates have been faring much better than they do today.
We also agree with Clarksons that the outlook for the dry bulk carrier market in 2022 remains positive even if full year earnings could fall short of 2021 is extremely healthy levels.
Cumulative user expressed by Commodore research and bulk carrier rates at least for this year.
<unk> predictions for lower growth this year come to pass it is likely that seasonality will certainly help boost the dry bulk market in the short and medium term, but there is no guarantee of 2022 as a whole will fare as well as last year.
Fundamentals appear fairly balanced with a projected two 5% growth in bulk carrier ton mile demand.
Against a projected fleet growth of two 1% for 2022 for next year supply expected to grow by between three 1%, depending on scrapping forecast slippage and other factors.
And as mentioned earlier on in this presentation exclude.
Excluding mid February close to their equity 36% of the total fleet and this might continue providing support going forward.
As usual future dry bulk carrier earnings will depend on developments in supply and demand.
These are particularly important now after the market has been through a period of fine balance between supply and demand for several quarters prior to 2021.
As a result of this period of stability.
Significant strength or weakness in rates surfaces, even with relatively minor changes in supply demand balance and this is what we have been witnessing in 2021 and the early part of this year.
At this point I will pass the call to our CEO again, samira as failures for a summary of the highlights of this presentation.
Thank you Stacy so before we open the call up to questions and answer session I would like to sum up what I believe to be the most important point.
The company has produced solid Fang has a strong balance sheet and continued to take advantage of the robust market, while maintaining a low cash flow breakeven point.
We remain committed to our disciplined and balanced strategy and its value is clearly demonstrated in appreciate that even more so under the current volatile geopolitical environment.
We are focused on finding creative ways to potentially grow and renew our fleet in a conservative manner.
And last but not least we are very pleased to be able to pay out a higher quarterly dividend and we aim to continue paying out future dividends should market conditions allow us.
Now I will turn it over to the operator to commence the Q&A session.
Thank you at this time, we'll be conducting a question and answer session.
Like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.
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One moment please poll for questions.
Our first question is from Randy given of Jefferies. Please proceed with your question.
18, Diana has it going.
Hi, Randy.
Hey.
I guess first question around the dividend and capital allocation there increasing it from 10 to 20.
Above our expectations there so what went into making that decision and how we balance further dividend payments with share repurchases in the coming quarters.
Okay.
Yeah.
I think the.
<unk>.
The decision can easily be seen based on our fixed income for 2022 and some of 2023.
In the current environment.
In the generation of free cash flow is such that.
Everyone can see that.
The ability to pay 20% this quarter and even something higher over the next quarter is.
Sure.
Is there easily.
Regards to the purchasing of the tender offer is buying back shares or doing something else with the mining of course that will depend on the.
The price of our stock and whether there is a clear value or we are clearly undervalued.
Still have that option to do a lot of things there but.
I personally strongly believes that.
The period has gone well.
The stock price will appreciate.
The price based on the yields that we are going to be providing that.
I think everyone can see that it is.
Yes.
Sustainable for the quarters to come.
So.
To respond to your question about the tender offerings.
I don't think that is going to be an option because.
I don't think that the.
Right.
The pricing of our stock is going to be shot.
Sure.
We're going to do it.
Got it okay.
Yes, I think in the long run that certainly knowing me knowing me for many years I've never very optimistic so whatever I'm, saying now you'll have to take into account.
Okay.
That's fair I guess just to clarify on the dividend.
You mentioned that it could be even higher in the coming quarters. So it's 20 <unk>.
Was there something special about this quarter or is it fair to expect as long as rates stay robust that 20% dividend.
It should be less expense to empty shelves is not derived from ramping special of this quarter.
There is not.
Alright notice well.
It sounds good.
Second question just looking at the fleet strategy clearly there has been a big uptick here in recent weeks on spot rates and the FFA curve.
Are you seeing the same moves in the time charter market and then with that is the plan just to continue to extend 10 to 16 months charters as vessels become available.
I'm going to I'm going to take that question at the beginning of been lifted is my answer as well but.
You understand that the more we go into better and better market something that is possible to have it. The more you will see us expanding the charter period is something that we have done in the past and if you noticed we have already increased the hedging.
Period of hours not been fantastic, but where we are over a year four we're hedging.
Our revenues for over a year.
Looking at what is happening around the world today.
I think once again our strategy demonstrates.
The value that we create for our shareholders.
And if someone was to be us what he was going to.
Preferred todays current environment to be either totally support our total fixed I seeing this.
As no brainer that.
They were going to say that we've referred the hedging strategy like Diana.
[music] lifted.
Yes, I mean, I think you've covered most of the.
So the other thing is that we are despite the volatility that we have seen in the for the last couple of days actually.
You mentioned the Ramsey the FFA curve is still pricing is pricing panamaxes and capes, let's say for the remainder of the year in the mid to high <unk> range and for 2023 in the high teens to low twenties, so basically the opportunities there to replicate the.
The fixtures that we've done recently in for over a year, maybe a year and a half maybe even higher.
2023 starts moving a little bit higher so I'd say, we're going to stay the course and do what we have been doing.
The course over the last quarter.
Got it.
Nicely done thanks, so much.
As usual thank you.
Yeah.
Yes.
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One moment, please while we poll for additional questions.
Okay.
Our next question is from Randy given of Jefferies. Please proceed with your question.
You can't get rid of it accurately I guess if no one else is asking questions I'll ask one more just around Russia, Ukraine, I think Stacy add some comments around it in terms of the coal trade, but if you could also give some commentary around grains and maybe other exports out of the region and may be the replacement of those cargoes.
From other regions into Western Europe , or just a little more context around what youre seeing so far obviously, it's early but anything you can share would be helpful.
Well to be honest, we have not heard of any cancelled cargoes up.
Up to now so theoretically.
If you look at the numbers as of this afternoon Greek time.
He has been very little effect.
In ships.
Loading.
Grains from the area in both Russia and.
The Ukraine.
Or coal.
One of Diana ships loading now in finishing later today a KOL cargo.
And.
We feel that this is going to leave without incident and on time after going to Anchorage early tomorrow, and then sell it.
So we can.
Apart from the.
Attached to some cargo ships that have been.
Publicized recently.
Rather than yesterday, both the characters straight MVC of Asaf.
Even though <unk> is officially closed the commercial traffic has not.
Being an area where ships.
Have been.
Being delayed in loading or discharging so the situation in Amman worthy toys.
Loading, which that the milestone this year vessel.
It completely stable and operations are running in a normal manner without any issues or changes.
So we can't answer your question. Unfortunately, because we have no data apart from three effects that have been reported to one bulk carriers the third ship.
Tanker, which is the Nomura Queen and the small.
The vessel Bulker of 2000 ton of tankers is reportedly thinking.
And the other ships were damaged.
And there has been some loss of life. So these are the reports that we have received through the P&I club in the war risk insurance about shipping in the area and these are confirmed reports.
So our master lease.
Using.
Our best endeavors in practice too.
Be aware and avoid entering temporarily dangerous areas periodically announced the approaches during Navy Navy driven.
But we haven't been advised of any yet.
So trade seems to be <unk>.
Going on as usual except for these three effects that we here, which are going to lead to of course the restrictions.
In approaching.
Some or most of these sports, but they have not yet been announced.
Randy you added on.
That usually.
This type of disruptions they working in the favor of.
Of the dry bulk market on shipping.
Shipping in general.
We have seen that in the past many times.
Yes.
Changes of routes and so on and so forth.
Sure a lot of disruptions and sanctions allocations, but alright. Thank you for the color certainly praying for peace.
Prevail, but we will talk soon that's it for me for real this time. Thank you.
Thank you.
<unk>.
There are no more questions at this time I will now turn the call back to management for closing remarks.
So thank you all for joining us today, and we look forward to talking to you again in our next financial results call. Thank you very much.
This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a great day.
Thank you.
[music].