• Time Charter Revenues: Decreased from USD62.1 million in Q3 2023 to USD57.5 million in Q3 2024.
• Net Income: USD3.7 million for Q3 2024, down from USD7.4 million in Q3 2023.
• Cash and Cash Equivalents: Increased to USD186.8 million as of September 30, 2024, from USD161 million on December 31, 2023.
• Long-term Debt: Reduced from USD642.8 million to USD627 million.
• Fleet Utilization: 99.7% for the nine months period of 2024.
• Secured Revenues: Approximately USD135.3 million as of November 19, 2024.
• Dividend: Declared a quarterly cash dividend of $0.01 per common share, totaling approximately USD1.3 million.
• Chartering Activity: Secured time charters for nine vessels with varying daily rates and durations.
• Net Debt to Market Value: 37% as of the end of September 2024.
• Operating Expenses: Increased to USD5,954 per day in Q3 2024 from USD5,321 per day in Q3 2023.

• Warning! GuruFocus has detected 6 Warning Signs with DSX.

Release Date: November 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Diana Shipping Inc (NYSE:DSX) successfully secured period employment for 9 vessels during the quarter, achieving an overall average rate higher than their previous fixtures.
• Fleet utilization reached 99.7% in the nine months period of 2024, highlighting effective vessel management.
• The company has a strong cash position with USD186.8 million in cash reserves.
• Diana Shipping Inc (NYSE:DSX) has no debt maturities until 2029, providing a favorable debt profile and cash flow stability.
• The company is committed to ESG initiatives, including fleet modernization and promoting eco-friendly technologies.

Negative Points

• Time charter revenues decreased by approximately USD5 million compared to the third quarter of 2023.
• Net income dropped to USD3.7 million from USD7.4 million in the same period last year.
• Operating expenses increased to $5,954 compared to $5,321 in the same period last year.
• The Chinese economy's struggles, particularly in the property sector, have led to a significant buildup of commodity inventories, impacting demand.
• The global dry bulk market faces headwinds with fleet growth outpacing demand, potentially leading to a slight easing of bulk carrier earnings in 2025.

Q & A Highlights

Q: Could you provide an update on your minority investment in CSOVs, including delivery expectations and employment plans? A: Our total commitment for these vessels is EUR50 million, with EUR33 million already paid. The first vessel is expected by September 2025, followed by the others every three months. We prefer long-term employment but have not secured any contracts yet. - Ioannis Zafirakis, CFO

Q: Can you discuss your capital allocation priorities, particularly regarding fleet renewal, deleveraging, and shareholder returns? Is there any interest in share repurchases given the current discount? A: We are disciplined in our approach and will act at the right time in the cycle. We have prepared the company to have the option to renew the fleet and repurchase shares when appropriate. However, specific asset allocation plans cannot be disclosed at this time. - Ioannis Zafirakis, CFO

Q: How do you plan to balance fleet renewal with maintaining a strong balance sheet? A: We have positioned the company to have the flexibility to renew the fleet while maintaining a strong balance sheet. This will be done at the appropriate time, ensuring we are prepared for various strategic options. - Ioannis Zafirakis, CFO

Q: What are your thoughts on the current market conditions and their impact on Diana Shipping's strategy? A: Geopolitical developments have significantly impacted the shipping industry. We are focusing on long-term charters and maintaining a strong cash position to navigate these challenges effectively. - Dave Van der Linden, Chief Commercial Officer

Q: Can you elaborate on your ESG initiatives and their importance to Diana Shipping? A: We are committed to promoting eco-friendly technologies, modernizing our fleet, and transparently sharing emission data. Our ESG strategy focuses on sustainability, diversity, and investing in our people. - Semiramis Paliou, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.