Q1 2025 Diana Shipping Inc Earnings Call
[music].
Unknown Executive: Thank you for standing by ladies and gentlemen and welcome to the Diana Shipping Inc. conference call for the first quarter 2025 financial results. At this time all participants are in a listening only mode.
Thank you for standing by ladies and gentlemen, and welcome to the Diana Shipping Inc Conference call for the first quarter 2025 financial results.
At this time all participants are in a listen only mode.
Unknown Executive: There will be a presentation followed by a question and answer session, at which time if you would like to ask a question, you may do so by pressing star 1 on your telephone keypad. As a reminder, this conference is being recorded.
There'll be a presentation followed by question and answer session I wish com, if you'd like to ask a question you may do so by pressing star one on your telephone keypad.
As a reminder, this conference is being recorded.
Unknown Executive: It's now my pleasure to turn the call over to Ms. Semiramis Paliou. Please go ahead. Thank you.
Mr. Sameer: It's now my pleasure to turn the call over to Mr. Sameer almost probably you. Please go ahead.
Mr. Sameer: Yeah.
Mr. Sameer: Thank you.
Semiramis Paliou: A good morning ladies and gentlemen and welcome to Diana Shipping Inc first quarter 2025 financial results conference call.
Speaker Change: Good morning, ladies and gentlemen, and welcome to the Diana Shipping Inc. First quarter 2025 financial results conference call I'm familiar.
Semiramis Paliou: I'm Semiramis Paliou, the CEO of the company and it's my pleasure to present alongside our esteemed team Mr Stacy Margaronis, Director and President, Mr Ioannis Zafirakis, Director, Co-CFO and Chief Strategy Officer, Mr Lesteris Papatryphon, Director, Ms Maria Velez, Co-CFO. Before we begin, I'd like to remind everyone to review the forward-looking statements on page 4 of the accompanying presentation. After a record year for dry bulk volumes through 2024, the market seems to have taken a general breather. This can be attributed to the current global uncertainty, both economically as well as Even though industry segments which are tariff-sensitive, such as container vessels, are very volatile, the dry-batch market has been dull and uninspiring for far this year.
Speaker Change: The CEO of the company and it's my pleasure to present alongside RSV T. Mr space, among that only as director and President Mr. Any honest, that's Iraqis director co CFO and Chief strategy Officer.
Speaker Change: Mr. Let's say, let's talk about today's one director.
Speaker Change: There's money on there that co CFO.
Speaker Change: Before we begin I'd like to remind everyone to review the forward looking statements on page four of the accompanying presentation.
Speaker Change: Okay.
Speaker Change: After a record year for dry bulk volumes through 2024, the market seems to have taken general breather.
Speaker Change: This can be attributed to the current global uncertainty both economically as well.
Speaker Change: Even though industry segments, which has higher expenses in such as container vessels are very volatile dry bulk market that has been done.
Speaker Change: Firings, so far this year.
Semiramis Paliou: So far this year, sorry, except for a significant dip in February. The overall market levels are still historically healthy, but sentiment is clearly lacking, even though cargo volumes are stable compared to the same period in 2024. Nowhere is this more evident than in the new building market, where dry bulk vessel contracting so far this year has slumped to only 0.1% of the global fleet. Q1 was the second lowest quarterly contracting level on record, only Q3 2016 was lower, but the higher rates and asset prices were a fraction of today's levels back then. Unfortunately, scrapping remains at historically low levels, with only 16 vessels scrapped so far in 2025, for a measly 0.1% of the total.
Speaker Change: So far this year, sorry, except for a significant dip in February.
Speaker Change: The overall market levels are still at historically healthy, but sentiment is clearly lacking even though cargo volumes are stable compared to the same period in 2024.
Speaker Change: Nowhere is this more evident than in the new building market for dry bulk vessels contracting. So far this year has slumped to only 0.1% of the global fleet.
Speaker Change: Q1 was the second lowest quarterly contracting level on record only Q3, 2016 was lower but the higher rates and asset prices were at a fraction of today's level exactly.
Speaker Change: Unfortunately scrapping remains at historically low levels with only 16 vessels scrapped so far in 2025 for them easily 0.1% of the fleet.
Semiramis Paliou: Meanwhile, the forward curve has become flat for all sizes, however this has not stopped us from securing improved charter hires, especially in the Cape size segment.
Speaker Change: Meanwhile, the forward curve has become flat for all sizes.
Speaker Change: However, this has not stopped us from securing improved charter hires, especially in the Cape size segment.
Semiramis Paliou: Turning to slide five. Let's review our company snapshot as of today. Diana Shipping Inc., founded in 1972 and listed on the New York Stock Exchange since 2005, operates a fleet of 37 dry bulk vessels, six of which are mortgage-free. Our fleet has an average age of 11.6 years and a total deadweight capacity of approximately 4.1 million tons. We anticipate the delivery of two methanol-duo-fuel new-building Campermax dry-bulk vessels at the end of 2027 and early 2028 respectively. Fleet Utilization reached 99.6% for the first quarter of 2025 highlighting our effective vessel management strategy. As of the end of the first quarter, we employed 974 individuals at sea and the...
Speaker Change: Turning to slide five.
Let's review our company snapshot as of today.
Speaker Change: Diana Shipping Inc. Founded in 1972, unless it does a new York's up has changed since 2005 operates a fleet of 37 dry bulk vessels six of which are mortgage free.
Speaker Change: Our fleet has an average age of 11 six years and the filter deadweight capacity of approximately $4 1 million tonnes.
Speaker Change: We anticipate the delivery of two methanol do you owe two new building <unk> dry bulk vessels at the end of 2027 and early 2028, respectively.
Speaker Change: Fleet utilization reached 99, 6% for the first quarter of 2025.
Speaker Change: Highlighting our effective investment management strategy.
Speaker Change: As of the end of the first quarter, we employed 974 individuals that see in the store.
Semiramis Paliou: Financially, our net debt stands at 42% of market value, supported by $187.7 million in cash reserves as of quarter end, and total secured revenues of approximately $124 million as of May 22nd.
Speaker Change: Financially our net debt stands at 42% of market value supported by $197 7 million in cash reserves.
Speaker Change: Quarter end and total secured the revenues of approximately $124 million as of May 22.
Semiramis Paliou: Moving on to slide 6, let's go over the key highlights from the first quarter and recent developments. In February 2025, continuing the renewal and modernization of our fleet, we announced the sale of the water vessel Azmi for a purchase price of approximately US$11.9 million before commissioning. She was delivered to her new owners in March 13, 2021.
Speaker Change: Moving on to slide six.
Speaker Change: Let's go over the key highlights from the first quarter and recent developments.
Speaker Change: In February 2025, continuing the renewal and modernization of our fleet, we announced the sale of the motor vessel asked me for a purchase price of approximately $11 $9 million before commission.
Speaker Change: She was delivered to her new owners in March 13, 2025.
Semiramis Paliou: Furthermore, in March, we became a strategic partner with an 80% equity interest and invested in a newly established joint venture, Ecogas Holding AS. This joint venture has agreed to order two 7,500 cubic meters semi-refrigerated LPG new buildings, with an option for two additional vessels. Delivery of the first vessel is expected in the first quarter of 2027 and of the second vessel in the fourth quarter of 2027.
Speaker Change: Furthermore, in March we became a strategic partner with an 80% equity interest and invested in the newly established joint venture Echo got holding a fish.
Speaker Change: This joint venture has agreed to order to 7500 cubic meters semi refrigerated LPG new building.
Speaker Change: With an option for two additional vessels.
Delivery of the first vessel is expected in the first quarter of 2027, and the second vessel in the fourth quarter of 2027.
Semiramis Paliou: In April, we celebrated the company's 20-year anniversary of listing on the New York Stock Exchange with a closing bell ceremony and hosted an investor day in New York. The investor presentation is available on the company's website. As of May 22, the company has raised US$25.6 million from the exercise of 6,414,000 warrants under the ongoing warrants program to purchase common shares for cash. of Congress, $64.9 million could be raised under the scope of the program if all outstanding warrants are accepted. As of May 22, 2025, we have also secured 86.8 million U.S. dollars of contracted revenues for 66% of the remaining ownership days of the year 2025 and have secured 36.5 million U.S.
Speaker Change: In April we celebrated the company's 20 year anniversary of listing on the New York Stock exchange with a closing bell ceremony and hosted an Investor day in New York.
Speaker Change: The Investor presentation is available on the company's website.
Speaker Change: As of May 22nd the.
Speaker Change: The company has raised $25 6 million U S dollars from the exercise of 6 million 400, and 114 warrants under the ongoing warranty program to purchase common shares with cash.
Speaker Change: Of course, there is $64 9 million U S dollar could be raised under the scope of the program. If all outstanding warrants are exercised.
As of May 22, 2025, we have also secured $86 $8 million of contracted revenues for 66% of the remaining ownership days of the year 2025.
Speaker Change: And have secured $36 5 million U S dollars of contracted revenue for 13% of the ownership days of the year 2026.
Semiramis Paliou: dollars of contracted revenue for 13% of the ownership days of the year 2026.
Semiramis Paliou: Finally, we are pleased to declare a quarterly cash dividend of 1 cent per common share, totaling approximately 1.2 million USD. Slide 7 summarizes our recent chartering activities. Since our last earnings presentation, we have secured favorable time charters for 9 vessels. One Ultramax vessel at a weighted average daily rate of 14,000 for 232 days. Three Panamax, one post-Panamax, and one CancerMax vessel at a weighted average daily rate of 11,764. dollars for an average of 299 days. to Newcastle vessels at $24,272 for an average of 490 days.
Speaker Change: Finally, we are pleased to declare a quarterly cash dividend of one cents per common share totaling approximately $1 2 million here.
Speaker Change: Yeah.
Slide seven summarizes our recent chartering activity since our last earnings presentation. We have secured favorable time charters for nine vessels one altering my assessment at the weighted average daily rate of 14232 days.
Speaker Change: Three panamax, one post panamax and one cancer Macpherson at a weighted average daily rate of 11764.
Speaker Change: For an average of 299 days.
Speaker Change: Two new new class of vessels at 24272.
Speaker Change: <unk> dollars for an average of 490 days.
Speaker Change: Okay.
Semiramis Paliou: Slide 8 highlights our disciplined chartering strategy. We focus on staggered, medium to long-term charters to avoid clustered maturities, ensuring earnings visibility and resilience against market doubt.
Speaker Change: Slide eight highlights our disciplined chartering strategy, we focus on staggered medium to long term charters to avoid clusters mature these ensuring earnings visibility and resilience against market downturn.
Semiramis Paliou: Now I'll pass the floor to Maria for a more detailed financial analysis. Thank you, Semiramis.
Speaker Change: Now I'll pass the Florida, Florida somebody else for a more detailed financial analysis.
Speaker Change: Thank you Samira.
Speaker Change: Yeah.
Maria Velez: Okay, going to select nine. We can say that this first quarter of 2025 was a good quarter for Diana, despite the negative market dynamics in the dry bulk sector. Our time-charted revenues for the first quarter were 54.9 million, decreased by about 5% compared to the 57.6 million for the same quarter last year. This decrease was due to the decrease in the size of the fleet and an increase in dry dock dates rather than time charter rates, as the average time charter rate that our vessels were fixed in the quarter was better than that of the same quarter last year, which we will see later in the presentation.
Speaker Change: Okay going to slide nine.
Speaker Change: We can say that the first quarter of 2025 was a good quarter for Ghana, Despite the Vega different market dynamics in the dry bulk sector.
Speaker Change: I can start their revenues for the first quarter were $54 9 million decreased by about 5% compared to 57 6 billion for the same quarter last year.
Speaker Change: This decrease was due to the decrease in the size of the shape and increasing that I had the base and other than the time charter at H I G. I bet time charter at eight that our vessels were fixed in the fourth it was bad debt that was something that took over the same quarter last year with what we have seen later in the presentation.
Maria Velez: For the same reasons, our adjusted debt decreased to $23.3 million, compared to $24.9 million in the first quarter of 2024, a decrease of 6%. Our adjusted EBITDA is calculated by deducting from our operating income, depreciation and amortization of deferred charges and the gain on sale of equity. Our net income for the quarter increased to $3 million compared to $2.1 million for the same quarter in 2024, an increase that is mainly attributable to decreased interest and finance charges as a result of a combination of decreased average debt and decreased weighted average interest rate. Net income has also been affected by decreased losses from non-operating activities recorded at fair value.
Speaker Change: For the same reason is that the EBITDA has increased to 23.3 million compared to 24 9 million in the first quarter of 2000 and blame before a decrease of 6%.
Speaker Change: Our adjusted EBITDA is calculated by deducting from out of it anything income depreciation and amortization of deferred charges and the gain on sale of vessels.
Speaker Change: Our net income for the quarter increased two 3 million compared to 241 million for the same quarter in 2020 before any phase that is mainly I think if it was all going to be producing data. Some final target I think that the combination of a decrease that was debt and increased the weighted average I think that is today.
Speaker Change: Net income has also been affected by a decrease in losses from normal betas and David you said it got it got it that's have items.
Maria Velez: Earnings per common share diluted was 1 cent in the first quarter of 2025 and remained unchanged compared to the same quarter of 2024.
Speaker Change: And its like almost sad that you noted was the one saying that the first quarter of 2025, and they remained unchanged compared to the same quarter of 2024.
Maria Velez: On the balance sheet side, our cash includes cash on hand and advance, time deposits maturing in periods below three months included in cash and cash equivalents, deposits with maturities above three months excluded from cash and cash equivalents, and restrictive cash, non-current, serving as compensating cash balance to secure our loan facilities. On March 31, 2025, our cash decreased to $187.7 million, compared to $207.2 million as of December 31, 2024. In the quarter we generated positive operating cash flows which covered our breakeven costs which include operating costs and debt service but cash decreased due to the repurchase of our common shares in January 2025 in a tender offer under which we repurchased 11.4 million shares for 23 million.
Speaker Change: On the biologics side, Oh Gosh Scott.
Speaker Change: Gosh on high end up by time deposits maturing ingredients for all three months included in gas and Gothic way by that.
Speaker Change: It bothers with majority of these are both three months excluded from Katherine Gothic wave items and as predicted Scott no.
Speaker Change: Got it.
Speaker Change: I hope, it's saving cash balance was 61.
Speaker Change: Oh I see.
Speaker Change: On March 31st 2025, Oh gosh decreased to one positive 97.
Speaker Change: Seven medium.
Speaker Change: Faisel, so kind of in that 7.2 million as of December 31st 2024.
Speaker Change: In the quarter, we generated positive operating cash flows which covers our breakeven cost which includes operating Boston This Saturday, but decreased due to the repurchase of our home passed in January 2025, and then that also hit it on the week to week basis, 11 4 million shares.
Speaker Change: I spoke to NTT meal.
Maria Velez: Long-term debt and finance liabilities, net of deferred financial costs, decreased to 623.9 million as of March 31st, 2025 compared to 637.5 million as of December 31st, 2024, a decrease of around 2%, which reflects the static world area amortization of our indebtedness.
David: Hello, David.
David: Finding us liabilities net of deferred financing costs.
David: It is 265 and $23 9 million as of March 31st 2025, compared to 657 5 million until December 31st 2000, as Dwayne before a decrease of 2%, which reflects an aesthetic ordinary amortization of volume that.
Maria Velez: I'm going to slide 10. In this slide, we present to you the financial and other data which affected revenues, our time charter equivalent rate, and the daily operating expenses rate for the periods in review. The average number of vessels was 37.8 in the first quarter of 2025, compared to 39.7 vessels, average vessels, in the first quarter of 2024, and decreased due to the sale of the vessel Akpimi early in March this year, and the sale of two more vessels in the first and third quarters of 2024. This decrease in the size of the fleet is also reflected in the decreased ownership available and operating days of the fleet, which we use to calculate time-starter equivalent rates, daily opex, and utilization.
David: Going to slide 10.
David: In this slide we present as you look at fine Nashville, another data, which affected the revenues outside thought that if we've got it in the rate and the daily operating expenses today for the videos and what have you.
David: The average number of very favorable 67, eight in the first quarter of 2025 compared to $39 seven bad shape of expenses in the first quarter of 2024 and decreased due to the stay at home because they feel like screening and in March this year and they say, let's do more of.
David: This isn't the first effect, what they're supposed to 2024.
David: This decrease in the size of the fleet is also reflected in the decrease the ownership available and operating days of the fleet, which used to we used to calculate eight times thought that equivalent in a day daily Opex and utilization.
Maria Velez: Our time charter equivalent, which is defined as our revenues, less voyage expenses divided by the available days, was $15,739 per day for the first quarter of 2025, compared to $15,051 per day in the first quarter of 2024, an increase of 5%, reflecting the better rates of safety in the quarter compared to the same quarter last year. It is important to note that this increased time-sharter equivalent rate is the result of our consistent and disciplined commercial strategy rather than market conditions, a strategy that is designed to leverage market volatility, deliver a more resilient performance across cycles and stable earnings.
Speaker Change: Oh, Thanks Athletic waiver, we choose a defined although revenues less voyage expenses divided by the available days, what's the state thousand and $759 per day for the first quarter of 2025, well match of 15051, though less bad day in the first quarter.
Speaker Change: It is 2024 and an increase of 5%.
Speaker Change: It is connecting the bad debt as a shift in the quarter compared to the same quarter last year.
Speaker Change: It is important to note that this increase sign a thought that if we live in today is the result of our consistent and disciplined commercial strategy I know that the market conditions.
Speaker Change: But I didn't see that.
Speaker Change: Besides we love it it's market volatility do you leave it in the morning.
Speaker Change: Instead of four months like what else like us and stable earnings.
Maria Velez: Glitch utilization for the quarter also increased to 99.6% compared to 99.1% in the same quarter last year as a result of less of higher data. Vessel operating expenses decreased in absolute numbers by 4% due to the decrease in the average number of vessels, but the daily operating expenses increased by 2% to $5,866 per day compared to $5,775 per day during the same period in 2024. The company actively and consistently monitors its expenses and tries to maintain its costs at optimal levels without compromising the quality of its fleet and its operations.
Speaker Change: Its utilization for the quarter orphan could easily 99, 6% compared to 99, 1% in the same quarter last year.
Speaker Change: Is that uplift Sofia days.
Speaker Change: Let's say operating expenses decreased in absolute numbers by 4% due to the decrease is the average number of basis, but the daily operating expenses increased by 2% to $5866 per day compared to $5775 per day.
Speaker Change: During the same period in 2024.
Speaker Change: The company actively inconsistent game morning doses expanses and try to maintain at school adults in my language without compromising the quality of its feet and its operations.
Maria Velez: Slide 11 presents our current debt profile. This slide shows how the company has prudently and proactively designed its financing strategy, having a mix of variable and fixed-rate debt instruments. Variable-rate instruments consist of secured loan agreements, fixed-terms offer, plus a margin. Fixed-rate instruments consist of an unsecured bond, forced sale, and leaseback agreements at very favorable fixed rates. An interest rate swap, under which we receive the software and pay... We have a fixed annual debt amortization of $47.1 million without any maturity for balloons until 2029, when our bond becomes due. This steady amortization provides good visibility of our debt service costs, reduces debt in a predictable manner, allows better management of the company's liquidity, strengthens our balance sheet and reduces the company's credit risk profile.
Speaker Change: Slide 11 pretty thin.
Speaker Change: Oh, God and debt profile.
Speaker Change: Slide shows how the company has prudently and proactively designed it's fine nasty Disney having it makes a lot of weight in fixed rate debt instrument.
Speaker Change: My Dad boy named installments consist of secured loan agreements the fix that that sort of plus a margin fixed rate instruments consists of an unsecured bonds for sale and leaseback agreements are very in favor of more fix that age and it means that at todays swap under which we received their salt and basic.
Speaker Change: We have ethics thigh-high debt amortization of $47 1 million lawyers without any majority of people everybody want some did it in 2029, when our bond becomes due.
Speaker Change: They stayed down what they say is one provides too abusive behavior of all debt service cost because juices.
Speaker Change: Is that it uses debt in a predictable manner allows a better management of the company's liquidity strength and solid balance sheet and reduces the company's credit profile.
Maria Velez: As of March 31st 2025, in slide 12, you can see that our break-even rate was $16,218 per day. As of May 22nd 2025, we have fixed 66% of the ownership dates for the remainder of 2025 and expect to generate $86.8 million of revenues at an average time charted rate of $15,806 per day. For 2026, we have fixed 13% of the ownership date and expect to generate $36.5 million of revenues at an average time charter rate of $20,463 per day. On top of our contracted revenues, we have calculated the revenues that we could generate for the unfixed days of 2025 and 2026.
Speaker Change: I saw small sat besides 2025 in slide 12.
Speaker Change: Got to see that the all in breakeven at eight was 16000, so call that an 18 and doy our spin day.
Speaker Change: On May 22, 2025, we have fixed 66% of the ownership days for the remainder of 2025 and expect to generate 884.
Speaker Change: 8 million of revenues at an average time charter at eight O $15806 per day.
Speaker Change: 2026, what half expecting by signed over the ownership days and expect to generate a healthy $6 5 million of revenues are they never science out there eight of 20003 continents and $68 50.
Speaker Change: On the bulk of our contracted revenues would have got accumulated the avenues that we could send that aid for the Unfixed days of 2025 and 2026 by using the FSA at age presented in the slide.
Maria Velez: by using the SFA rates presented in this slide. Based on these assumptions, we have estimated that for the remainder of 2025 we could generate revenues of 123.6 million on aggregate at an average time charter rate of $14,911 per day. And for 2026, we could generate revenues of $190.7 million on aggregate at an average time charter rate of $14,118 per day. Although it appears that the estimated revenues may not be adequate to cover our break-even rate going forward, by taking into account that current FFA rates are not particularly strong due to negative market conditions in the dry bulk sector, increased volatility and uncertainty, we believe that through our chartering strategy, we could capture any market upside going forward by fixing investors at 1-year-time Saturday rates for short to medium-term periods.
Speaker Change: Based on these assumptions, we have estimated that's where the remainder of 2025 week was in there. They are having is a one covenant lenke city 0.6 medium well not going to get at another time thought that eight of 14009 covenant and $11 per day and for 2020.
Speaker Change: Six well generating revenues of one, having a and $94 $7 million well not going to get.
Speaker Change: I didn't have enough time thought that eight of 14001 patent and $18 per day.
Speaker Change: Although it appears that the estimated revenues may not be a big of it took all right I'll break even at eight going forward by taking into account that got it I have to say it AIDS are not particularly strong due to negative market conditions through the dry bulk sector.
Speaker Change: Crazy volatility and uncertainty we believe that through our child that he said I didn't think we could Scott sure any market upside going forward, but I think some investors had wanted to get that sat there at age for short to medium term videos.
Maria Velez: Also, we believe that the company is well-positioned, having strong balance sheet and predictable cash flows to navigate through the cycles even if market conditions do not improve.
Speaker Change: Also we believe that the company is well positioned having a strong balance sheet and for the victim, but gosh skills to navigate through the cycle, even if market conditions do not improve.
Maria Velez: and Sly Kirti. This slide presents our dividend payout since the third quarter of 2021, which has rewarded our shareholders with quarterly distributions of both cash and shares. Consistent with this payout, we have declared another dividend of 1 cent per share, increasing our cumulative dividend paid since 2021 to $2.67 per common share.
Speaker Change: And slide 15.
Speaker Change: This slide presents our dividend payout since the third quarter of 2021, which has rewarded our shareholders with quarterly distributions for both gas I'm sure.
Speaker Change: Consistent with these pay offs, we have declared another dividend of one says I have increasing off for me if David then phases since 2021 to $2 67 backbone sad.
Maria Velez: Thank you for listening to this presentation, and now I will pass the coin to Stacey, who will continue with the dry bulb market over here.
Speaker Change: Thank you for listening to this presentation and now I would also point to Stacy well work on Dania with it that I bought market overview.
Stacy Margaronis: Thank you, Maria, and welcome to the participants of this quarterly earnings call of Diana Shipping, Inc. Looking briefly at the market. It is troublesome to note that as if the market did not have enough factors creating volatility, such as geopolitical, economic uncertainty and supply issues, we now have the addition of tariffs and trade restrictions introduced by President Donald Trump between the U.S. and practically all its trading partners. The effect on spot and time charter rates has been generally negative so far. Sentiment has certainly taken a downturn as a result of such huge uncertainty about the future.
Speaker Change: Thank you Maria and welcome to the participants of this quarterly earnings call of Diana Shipping Inc.
Speaker Change: Looking briefly at the markets.
Speaker Change: This is a troublesome to note that as if the market did not have enough of factors, creating volatility such a geopolitical or economic.
Speaker Change: Certainty and supply issues, we now have the additional tariffs and.
Speaker Change: Trade restrictions introduced mapping has been done now from between the U S. In practically all its trading partner.
Speaker Change: The effect on the scope and time charter rates have been generally negative so Paul.
Speaker Change: Sentiment has certainly taken a downturn as a result of such huge uncertainty about the future.
Stacy Margaronis: As of May 27th, the 12-month time chart rates were K. stood at about $19,000 per day. for a scrubber fitted ship after reaching a high of $35,000 a day in March 2024. Cancer Max rates stood at $10,750 a day in May, with a high of US dollars $21,000 per day in March of last year. Similarly, Ultramax time charter rates have dropped from $19,500 a day in February of last year. to 11,400 per day only on the May 27th. Some recent good news on the tariffs front is the trade deal reached between the US and the UK, which even though leaves plenty of details to be agreed, provides for lower tariffs for steel and 10% tariffs for cars.
Speaker Change: As of May 27, the 12 month time charter rates for Capes.
Speaker Change: So thats about $19000 per day.
Speaker Change: For a scrubber fitted ship after reaching a high of $35000 a day in March 'twenty 'twenty four.
Speaker Change: Cancel rates stood at $10750 a day in May.
Speaker Change: Hi, or U S. Dollar 21000 per day in March of last year.
Speaker Change: Similarly, ultra Max time charter rates have dropped from 19 and a half thousand dollars a day in February of last year.
Speaker Change: To 11400 per day.
Speaker Change: Only on the May 27.
Speaker Change: Some recent good news on this front is a trade deal reached between the U S and the U K, which even though leaves plenty of details to be agreed provides for lower tariffs for speed and 10% Paris, who calls.
Stacy Margaronis: More recently, it appears that China and the U.S. are making progress on leaving behind them the ridiculously high tariffs announced a few weeks ago and are settling for tariffs of 51% on average for Chinese imports to the U.S. and 10% baseline Chinese tariffs on U.S. exports with an effective average of 32.6%.
Speaker Change: More recently it appears that China, and the U S are making progress I'm, leaving behind them. The ridiculously high tariffs announced a few weeks ago and that's settling for Daddy. So 51% on average for Chinese imports to the U S and 10% baseline Chinese tariffs on U S exports within effective.
Speaker Change: Got it.
Speaker Change: 32, 6%.
Stacy Margaronis: Moving to the next slide on our macroeconomic development. In view of recent tariff announcements and the risk of a trade war developing, the IMF has trimmed the 2025 growth rate estimates for China, India, the US and the Euro area by between 0.2 and 0.5 percent. So, based on these predictions, China is expected to grow by 4% this year and at the same rate in 2026. India is expected to show a GDP growth of 6.2% this year and 6.3% in 2026. In the US, the economy is expected to grow by 1.8% this year and by 1.7% in 2026.
Speaker Change: Moving to the next slide on the microeconomic developed himself.
Speaker Change: In view of recent 35 announcement and at the risk of a trade war is developing a.
Speaker Change: During the 2025 growth rate estimates with China, India. The U S in the euro area by between two and 5%.
Speaker Change: So based on these predictions China is expected to grow by 4% this year and.
Speaker Change: And at the same rate in 2026, India is expected to show a GDP growth of six 2% this year and six 3% in 2026.
Speaker Change: In the U S economy is expected to grow by one 8% this year and by one 7% in 2026.
Stacy Margaronis: Most importantly, though, world GDP growth is expected to be 2.8% this year and just 3% in 2026. Nevertheless, Chinese GDP grew by 5.4% during the first quarter of 2025, driven by robust consumer demand and increased industrial production. Escalating trade tensions with the US and headwinds in the property market create huge challenges going forward. Slight encouragement comes from the fact that revised measures announced in mid-April by the USTR reduce in scope the number of vessels and port calls that will be impacted versus the previous proposal. We need not go into greater detail in this short presentation, but we'll just mention that the effect on the Diana fleet and its charters of such measures in their current form will be relatively minor.
Speaker Change: Most importantly, though world GDP growth is expected to be 2.8% this year and just 3% in 'twenty 'twenty six.
Speaker Change: Nevertheless, Chinese GDP grew by five 4% during the first quarter of 2025.
Speaker Change: By a robust consumer demand and increased industrial production.
Speaker Change: Escalating trade tensions with the U S and headwinds in the property market creates huge challenges going forward.
Speaker Change: So that's encouragement comes from the fact that the revised measures announced in mid April by the USTR reduced in scope. The number of vessels in port calls that will be impacted versus the previous proposals we.
Speaker Change: We need not go into greater detail in this short presentation, but we'll just mentioned that'd be effects on the Diana fleet and its charter as such measures in their current form would be relatively minor.
Stacy Margaronis: Going for a brief now commodities update. According to Commodore Research, steel output at large and medium-sized steel mills in China is up 5% so far this year, while stockpiles of flat-end construction steel have been going down over the last two months. Indian steel production has also risen this year by about 9% on a year-on-year basis. However, there is considerable overall weakness on steel output outside of China and India, which is bound to create a headwind for the dry market. Global iron ore trade is expected to fall by 1% this year with Chinese demand dropping while steel production trends remain soft in most key economies outside China and India.
Speaker Change: Going to afford a brief now commodities updates.
Speaker Change: According to Commodore research steel output at large and medium sized steel mills in China is up 5%. So far this year, well stockpiles or flat and construction steel have been going down over the last two months.
Speaker Change: Indian steel production has also risen this year by about 9% on a year on year basis.
Speaker Change: However, there is considerable overall weakness on steel output outside of China, and India, which is bound to create a headwind for the dry bulk side of your markets.
Speaker Change: Global Iron ore trade is expected to fall by 1% this year with Chinese demand dropping while steel production trends remained soft in most key economies outside China and India.
Stacy Margaronis: World seaborne volumes are expected to drop to 1.57 billion tons and for 2026 shipments are expected to be flat compared to this year. Global seaborne coking coal trade is expected by Clarkson to decline by 1% this year, as macroeconomic headwinds put pressure on demand for steel in key economies. Chinese imports are expected to go down by 4% this year. Mainly due to softer Chinese demand, thermal coal shipments are expected by Clarksons to drop by 4% this year to just over 1 billion tons and drop by a further 2% in 2026. Chinese imports are expected to drop by 6% this year compared to 2024.
Speaker Change: [noise] World seaborne volumes are expected to drop to 1.57 billion tons and for 2026 ship and so I'd expect it to be flat compared to this year.
Speaker Change: Global seaborne coking coal trade is expected by Clarkson to decline by 1% this year as macroeconomic headwinds put pressure on demand for steel in key economies Chinese imports are expected to go down by 4% for this year.
Speaker Change: Mainly due to softer Chinese demand certainly coal shipments are expected by clarksons to drop by 4%. This year to just over 1 billion tonnes and drove by a further 2% in 2026.
Speaker Change: Chinese imports are expected to drop by 6% this year compared to 2024.
Stacy Margaronis: Again, due to softer Chinese demand, seaborne grain trade is expected to drop by 2% in the 2024-25 season. Strong stockpiling and high domestic output are cited as the main causes for this trend. In the coming trade year, starting next month, the trend is expected to reverse course. The USDA anticipates growth of between 4% and 6% for global corn, soybeans, and wheat exports. Growth in soybean exports will be led by Brazil, where exports of this commodity alone are expected to reach 112 million tons. According to Braemar, the greatest significance for shipping of these soybean projections would be first, the ever greater reliance on Brazil's port and supply chain infrastructure, plus, secondly, additional long-haul Panamax trade from Brazil to China, Taiwan and Vietnam.
Speaker Change: Again due to softer Chinese demand seaborne grain trade is expected to drop by 2% in the 'twenty 'twenty four 'twenty five season.
Speaker Change: Long stockpiling and high domestic output by the fact that those are the main causes for these trends.
Speaker Change: In becoming trade the year starting next month the trend is expected to reverse course, the USDA anticipates growth of between four and 6% for global corn, soybeans and wheat exports growth in soybean exports will be led by Brazil, what exports of this commodity alone not expected to reach you.
Speaker Change: 12 million tons.
Speaker Change: According to braemar be greater significance for shipping of the.
Speaker Change: Soybean projections would be first the ever greater reliance on Brazil support and supply chain infrastructure.
Speaker Change: Plus secondly, additional long haul panamax trade from Brazil to China, Taiwan and Vietnam.
Stacy Margaronis: Minor bulk trades are expected to remain stable this year and increase by 2% in 2026, reaching nearly 2.3 billion tons. Metals, such as bauxite, as well as minerals, such as cement, pet coke and aggregates, are anticipated to play a key role in achieving growth for shipments in this sector going forward.
Speaker Change: Minor bulk trades are expected to remain stable this year and increased by 2% in 2026, reaching nearly $2 3 billion tons.
Speaker Change: Metals, such as bauxite as well as minerals.
Speaker Change: Such as the human pet Coke in aggregate I.
Speaker Change: I would anticipate it to play a key role in achieving growth for shipments in this sector going forward.
Stacy Margaronis: Moving now to a slide on fleet development. Looking at the order book, this stood at the end of March this year at 107.2 million dead weight, representing 10.3% of the trading fleet. On the Handimax side, there were 28.6 million deadweight on order, equivalent to 11.5% of the fleet. On Panamax, Camshar Maxxes, the 35.9 million deadweight on order represents 13.3% of the And on Capes, the 32.1 million deadweight on the order book are equivalent to just 8% of the trading fleet of Capes. Deliveries this year are projected by Clarkson's to reach 38 million deadweight, followed by an increase to 42 million deadweight in 2026.
Speaker Change: Moving now to our slide on fleet development.
Speaker Change: Looking at the order book they stood at the end of March this year at $807 2 million deadweight, representing 10, 3% of the trading fleet.
Speaker Change: The handy Max side, there were $28 6 million deadweight on order equivalent to 11.5% of the fleet.
Speaker Change: Panamax comes to imax's, he's $35 9 million deadweight on order represent 13, 3% of the fleet depends on Capes with $32 1 million dead weight on the order book are equivalent to just 8% of the trading fleet of Capes.
Speaker Change: Deliveries. This year are projected by Clarksons to reach 38 million deadweight, followed by an increase to 42 million deadweight in 2026.
Stacy Margaronis: So far this year, the bulk carrier fleet has increased by 1.1% in deadweight terms, with 135 ships delivered with an aggregate of 9.3 million deadweights. Dry bulk contracting, as our CEO mentioned earlier, was very subdued during the first quarter of this year, with just 14 vessels of a combined 1.4 million deadweight reported orders, down 88% year-on-year on an annualized basis. As for demolitions, Clarksons expect these to reach 5.8 million deadweight this year and about 8.6 million in 2026. These figures will obviously depend on the state of the freight market for the rest of this year and sentiment based on anticipated future developments and earnings.
Speaker Change: So far this year the bulk carrier fleet has increased by 1.1% in deadweight terms with 135 ships delivered with an aggregate of $9 3 million deadweight.
Speaker Change: Dry bulk contracting.
Speaker Change: Our CEO mentioned earlier was very subdued during the first quarter of this year. We've just 14 vessels of a combined $1 4 million deadweight reported orders down 88% year on year on an annualized basis.
Speaker Change: As for demolition Clarksons expect visa to reach 5.8 million deadweight this year and about $8 six.
Speaker Change: In 2026. These figures will obviously depend on the state of the freight market for the rest of this year and sentiment based on anticipated future developments in Germany.
Stacy Margaronis: A quick look at asset values and how they have developed. According to Clarkson's, asset values in bulk shipping remain surprisingly robust compared to the end of 2024 levels in the face of relative weakness seen in current and projected earnings. New building CAPE resales are trading at around $76 million, about the same as the end of last year, while the price of a 10-year-old CAPE has gone up from $43 million at the end of last year to around $45 million this month. Cancer Max resale prices have come down slightly to $38.5 million since the end of last year.
Speaker Change: Okay.
Speaker Change: A quick look at asset values and how they have developed.
Speaker Change: According to Clarksons asset values in bulk shipping remained surprisingly robust compared to the end of 2024 levels in the face of relative weakness seen in current and projected earnings.
Speaker Change: Building K briefings are trading at around $76 million about the same as the end of last year, while the price of a 10 year old Cape has gone up from $43 million at the end of last year to around $45 million. This month.
Speaker Change: I'm, sorry, Mike resale prices have come down slightly to 38, and a half million since the end of last year 10 year old vessel values have remained steady at around 25 million.
Stacy Margaronis: Ten-year-old vessel values have remained steady at around $25 million. Prices for Ultramaxxis have remained steady according to clock sense on both the resale and 10-year-old vessel price level. Resales are at around $37 million and 10-year-old vessels are trading at around $23.5 million. On a 12-month basis, however, Prices have eased off by about 10% on average from the firm level seen around the middle of last year on the back of firm earnings and expectations.
Speaker Change: But actually as for ultra maxes that would remain steady according to clarksons on both the retail and 10 year old vessel price levels.
Speaker Change: Resales out of $3 7 million and 10 year old vessels are trading at around 23, and a half million dollars.
Speaker Change: On a 12 month basis however.
Speaker Change: Breakfast has it eased off by about 20% on average from the firm levels seen around the middle of last year on the back calls for earnings and expectations.
Stacy Margaronis: Let's look at the market outlook. The overall market outlook according to Clarkson's for 2025 is for a softer year than 2024 with a fleet expected to grow by a reasonably modest 3% on year but demand on track to fall this year due to several headwinds. However, even slower speeds, greater off-hire time due to special surveys and dry dockings, as well as pockets of port congestion, could not limit the downsides. Red Sea rerouting is expected to continue in 2025, with arrivals in the Gulf of Aden still 70% below 2023 level. On the demand side, seaborne dry bulk trade, according to Croxon's, is expected to drop by 1% this year, with a more modest decline of 0.4% projected in ton miles, supported by firm growth in long-haul bauxite shipments from Guinea, reduced market share for short-haul Indian iron ore shipments to China, and expectations for growth in South American grain exports promoted by fresh Chinese caps on U.S.
Speaker Change: Let's look at the market outlook now.
Speaker Change: The overall market outlook. According to Clarksons were 2025 sort of softer year than 2024 with the fleet is expected to grow by a reasonably modest 3% down year, but demand on track to fall. This year you have to separate it.
Speaker Change: However, even slower speeds greater off hire time youth, a special survey and dry docking as well as pockets of port congestion.
Speaker Change: Could not limit the downside.
Speaker Change: So let's see rerouting is expected to continue in 2025 with our rivals in the Gulf of Aden spend 70% below 2023 levels.
Speaker Change: On the demand side seaborne dry bulk trade. According to Clarksons is expected to drop by 1%. This year with a more modest decline of <unk>, 4% projected in ton miles supported by firm growth in long haul bauxite shipments from Guinea reduced market share for short haul Indian iron ore shoot.
Speaker Change: And then to China and expectations for growth in South American grain exports promoted by fresh Chinese tariffs on U S grain assuming of course these materialize.
Stacy Margaronis: grain. Assuming, of course, these material Commodore Research expressed some concern, which we share, as regards Chinese steam coal imports going forward. For as long as coal-derived electricity remains in contraction, which was 7% year-to-date, and domestic coal production continues to surge, it is obvious that Chinese coal imports will go down. This is not good news for the dry bulk carrier market if it continues for several quarters. Brehmer agree with this forecast and state that China's coal import requirements will do much to determine vessel demand across the Panamax and Supramax, Ultramax sectors. According to Commodore Research, there is no other trade.
Speaker Change: Commodore research expressed some concern, which we sure as regards Chinese steam coal imports going forward.
Speaker Change: For as long as coal derived electricity remains in contraction, which was 7% year to date.
Speaker Change: And domestic coal production continues to surge because he's obviously Chinese coal imports will go down.
Speaker Change: This is not good news for the dry bulk carrier market. If it continues for several quarters.
Speaker Change: But he might agree with this forecast and state that China's coal import requirements will do much to determine your vessel demand across the panamax and supermax sectors. According.
Speaker Change: According to Commodore research there is no other trades.
Stacy Margaronis: that can increase sufficiently to compensate a year-on-year contraction in global coal trade impact. Looking out to 2026, Clarkson's predict another year of softer earnings for bulk carriers with fleet projected to grow by 3% year on year and trade growth being determined by prevailing macroeconomic conditions at the time, which are not sufficiently positive to justify much optimism. However, we need to wait for more developments on the macroeconomic front, which will affect demand next year.
Speaker Change: That kind of increased sufficiently to compensate a year on year contraction in global coal trade import.
Speaker Change: Looking out to 2026 Clarksons predict another year of softer earnings for bulk carriers with fleet is projected to grow by 3% year on year and trade growth being determined by prevailing macroeconomic conditions at the time, which are not sufficiently positive to justify.
Speaker Change: Much optimism.
Speaker Change: However, we need to wait for more developed and so on the macroeconomic front, which will affect demand next year.
Stacy Margaronis: Turning to the last slide of this presentation. Analysts quoted in this short presentation mentioned several factors which they expect will influence the short and medium term future of the dry bulgaria market. who summarized the most important. On the positive side, they see strong Brazilian soybean as well as other grains, crop season. The commencement later this year of iron ore shipments from Simandou in Guinea. Revised measures announced in mid-April by the USTR, reducing the number of vessels and port calls that will be impacted by them. Red Sea rerouting expected to continue for the rest of the year.
Speaker Change: Turning to the last slide of this presentation.
Speaker Change: Analysts quoted are in this.
Speaker Change: A short presentation mentioned several factors, which they expect will influence.
Speaker Change: Short and medium term future of the dry bulk carrier market.
Speaker Change: To summarize the most important points on.
Speaker Change: On the positive side.
Speaker Change: They see strong Brazilian soybean as well as other grain crop season.
Speaker Change: The commencement later this year of iron ore shipments from Sema and do it in Guinea.
Speaker Change: Revised measures announced in mid April by the U S. You are reducing the number of vessels in port calls that will be impacted by them.
Speaker Change: Let's see rerouting you expect it to continue for the rest of the year.
Stacy Margaronis: Gradual resolution of conflicts affecting Ukraine and Israel leading to Reconstruct and finally lifting of sanctions against Syria, leading to the reconstruction of Syria itself. on the negative side. worldwide lower steel production outside India and China. protectionist measures with high tariffs leading to trade wars Bulgaria fleet growth, outpacing demand growth for 2025-26 except for the Cape sector. Large increases of hydropower output in India and China. anticipated long-term reduction in coal imports by China, and finally weaker world GDP growth if tariffs don't settle soon at reasonable levels.
Speaker Change: Gradual resolution of conflicts affecting Ukraine, and Israel, leading to.
Speaker Change: Reconstruction.
Speaker Change: And finally lifting of sanctions against Syria, leading to the reconstruction of theatre itself on.
Speaker Change: The negative side.
Speaker Change: Worldwide lower steel production outside of India and China.
Speaker Change: Protectionist measures with hindsight, it's leading to trade wars.
Speaker Change: Bulk carrier fleet growth outpacing demand growth for 'twenty to 'twenty, five 'twenty six except for the Cape sector.
Speaker Change: Large increases of hydropower output in India and China.
Speaker Change: Anticipated long term reduction in coal imports by China.
Speaker Change: And finally weaker world GDP growth is that as Don said the soon at reasonable levels.
Semiramis Paliou: On this note, I will pass the call to our CEO, Semiramis Paliou, to present the most important financial highlights on the first quarter of this year, as well as some takeaway points from this earnings. Thank you for your attention. Thank you, Stacy.
Speaker Change: On this note I will pass the call to our C. O sent me that means pardon me to present the.
Speaker Change: Most important financial highlights from the first quarter of this year as well as some takeaway points from this earnings call. Thank you for your attention.
Speaker Change: Thank you Stacy so before we conclude today's presentation I'd like to highlight our ongoing ESG initiatives.
Semiramis Paliou: So before we conclude today's presentation, I'd like to highlight our ongoing ESG initiative. So Diana Shipping Inc. is committed to promoting eco-friendly technologies and modernizing our fleet. Transparently sharing emission data to ensure accountability. and amongst other things, building on partnerships and collaborations to advance our sustainability goals.
Speaker Change: So Diana shipping Inc is committed to promoting eco friendly technologies and modernizing our fleet.
Speaker Change: Transparently sharing some data to ensure accountability.
Speaker Change: And amongst other things building on partnerships and collaborations to advance our sustainability goals.
Speaker Change: So moving onto slide 19 in summary, Diana Shipping Inc. Stands on a strong foundation built on over 50 years of industry experience and 20 years in the New York Stock Exchange.
Semiramis Paliou: In summary, Diana Shipping Inc. stands on a strong foundation built on over 50 years of industry experience and 20 years of the New York Stock Exchange. A seasoned management team adapts to addressing industry challenges. from a stakeholder relationship and a disciplined strategic approach. A Solid Balance Sheet with a Strong Cast Position and a Counter-Cyclical Mindset and ongoing fleet modernization efforts are focused on rewarding our shareholders when possible and a robust ESG strategy.
Speaker Change: Our seasoned management team adapt.
That's so addressing industry challenges.
Speaker Change: From a stakeholder relationships and the discipline strategic approach.
Speaker Change: Our solid balance sheet with a strong cash position and the counter cyclical mindset.
Speaker Change: And ongoing fleet modernization efforts are focused on rewarding our shareholders when possible and a robust ESG strategy.
Semiramis Paliou: So thank you for joining us today. We now look forward to addressing your questions during the Q&A session. Thank you.
Speaker Change: So thank you for joining us today.
Speaker Change: Look forward to addressing your questions during the Q&A session.
Unknown Executive: We'll now be conducting a question and answer session. If you'd like to be placed into the question queue, 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'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star 1. One moment please while we poll for questions.
Speaker Change: Thank you well now be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad.
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Speaker Change: It's using speaker equipment, it may be necessary to pick up your handset before pressing star one one.
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Speaker Change: We have reached the end of our question and answer session was to turn the floor back over to management for any further or closing comments.
Unknown Executive: I'd like to turn the floor back over to management for any further or closing comments.
Speaker Change: Okay.
Unknown Executive: Thank you very much for joining us today at the Diana First Quarter 2025 Financial Results. We look forward to presenting to you again in the next quarter. Thank you for joining. Thank you.
Speaker Change: Thank you very much for joining us today as it's Diana first quarter 2025 financial result.
Speaker Change: We look forward to presenting to you again in the next quarter. Thank you for joining.
Unknown Executive: That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.
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For your participation today.