Earnings call transcript Q1 2023

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Operator

Hello, and welcome to the Diana Shipping Inc.

First Quarter 2023 Conference Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Ed Nebb, Investor Relations. Ed. ahead, go Please

Edward Nebb

from and of the everyone first Diana us presentation. introduce the call. Kevin, Executive Paliou, us who company Officer, quarter is and today With will call lead to for Shipping other today is thanks you, Semiramis who Chief executives to the joining conference management the Thank Inc. the XXXX begin

Semiramis Paliou

is Diana Semiramis ladies to Shipping Good present the a you, morning, and call. gentlemen, My welcome is earnings Ed. you to the name first Inc.’s have of to Paliou, quarter CEO to it company, XXXX Thank and today. the and opportunity pleasure great

and Ed of company’s Mr. I'm of Chief Mr. Ms. President Shipping Chief mentioned by our Mr. CFO Inc.; the Shipping; earlier, Eleftherios Papatrifon, Strategy Anastasios by Diana Maria Officer; Director Margaronis, Accounting esteemed team, Dede, Diana As Zafirakis, Officer. joined Ioannis

Before can X we forward-looking presentation. like to the would quarter first applicable today's remind found review to XXXX be to everyone begin, the accompanying I presentation, on which statements of Page

XXXX a for less company, despite in profitable conditions proven be prevailing QX our robust the quarter market. to has

free conditions amounting the has $X.XX have share. when We us per disciplined weakening earnings year of strategy, call, market continue us us to we for our are pleased with so. to and shareholders declare to guidance dividend In this aim the flows. Our from the distribution to chartering of quarter a rewarding do generate to the allow insulated largely company’s end line again, once positive the cash during allowed provided

fleet XX million of carrying of today. with water of overview provide vessels operate as in Slide deadweight capacity We an snapshot Turning the and will to X, X.X company's an I currently tons. approximately of own extended a the

the of first Our has for reaching remained consistently XXXX. quarter fleet XX.X% utilization high

first of we employed the shore at the X,XXX sea people the quarter. end and by Additionally,

delivered with we In and first we Also vessel Slide Aquarius. the Moving the concluded purchase new to signed to February, issued portion in vessel and for price highlights paid the $XX.XX review agreed the Melia February the for in vessels developments. motor February. on She Aliki in X to a deal aggregate recent cash of Inc. XXXX. Series Motor sell the August of her of with preferred to was vessel motor In new to owners January, delivery shares January, remainder we her $XX Melia owner the OceanPal D to and quarter motor the convertible was sell million. [indiscernible] an Ultramax in sale a of in price agreed XXXX million let's in by X, DSI vessel nine delivered

$XX Potomac price the to million. Nord Furthermore, delivered month, a the purchased completed same for we of $XX.X approximately million. same per financing procured Drammen named joint company the venture Bank. a we $X.XX declared for from the DSI of month, within the vessel and cash of the was motor a common later ownership we XXXX, purchase amounting in April. vessel February, from debt share quarter The in dividend vessel motor Also first Nordea to within And our

on company. of Form XX-F, Additionally, of on at is Report B our we a shares OceanPal Series Annual stock In we XXXX Inc. by preferred all website. the special convertible time announced held filed the which distribution available March,

up term two week, facilities. million loan we million two senior banks major Ship million to refinance drawn to been of loan a with signed European $XXX separate In term we has each. with term A/S, and loan facility Finance Last $XXX down existing April, sheets into entered developments. Moving two recent more $XX.X to Danish for secured which

the in approximately totaling dividend we shareholder. the a be announced shares each form cash of or of $XX DSX $X.XX per share today, common million quarterly election paid Lastly, at to of

May we for amounting to ownership of secured remaining contracted the approximately XXXX, XXXX $XXX.X days As of XX, revenues. XX% revenue have of million of

Additionally, representing of Ioannis days entire detailed ownership cash current $XX.X will available XXXX, revenues provide a XX% secured of for flow potential the we based for the of contracted approximately environment. have more market generation on analysis the our year. million

to X. financial of highlights Turning quarter Slide of On the the XXXX first

of we and position equivalent and As including time of $XXX.X cash deposits million held cash XXXX. March XX, compared restricted $XXX.X million, as XXXX cash December of XX, to a

including for the million December the the Our $XXX.X compared to at charter end of of in million costs at same amounted of financing XX, $XX.X for stood the net XXXX. end XXXX. at Time quarter $XXX.X to XXXX period $XX.X the XXXX quarter deferred to revenues debt, first compared million of first million

Lastly, Ioannis the per presentation. for for quarter earnings came compared at in XXXX numbers more share same share provide in XXXX. will in of the to period per these detailed analysis $X.XX our of later first the $X.XX a

to on X. Slide Moving

activity. our chartering a summary review recent Let's of

have chartering since implement to of We daily by in vessels days. we XXXX. of $XX,XXX average rate provide vessel last presentation charters To a nine detail, some charted time XXX a at continued remaining have for for disciplined securing Ultramax February strategy period profitable earnings our our one

vessel. to focusing efficiency. our vessel. $XX,XXX of in XXX the average to per in Capesize average staggered the Panamax post-Panamax Additionally, cash chartering and ourselves Kamsarmax days charted chartered intend period Furthermore, we and remaining of of manner, $XX,XXX in a we remaining flows have daily vessels rate a vessels two per balanced rate XXX and of continue an positioning vessels an three have locking daily two one and in with vessels, We with average market period on average way participate a

detailed floor analysis on Ioannis to provide financials. will of more the a I to pass now our

Ioannis Zafirakis

a quarter. Thank this you, think Semiramis. I All in all, has been good

charter $XX.X XXXX. $XX.X As at same to in we have compared said, revenues for the quarters quarter time the our million already million stood in

(ph) -- to quarter's charter conditions. almost days, operating expenses vessels. lower. number slide compared increased levels time An you of Of thousand mainly because per of similar [$XX,XXX] bit course, XX understand something for the at XXXX i.e. current number The this we market important is to showing at XX quarter. a daily day a was market for in where that the same of are operating the the is or year This point pinpoint is like the even ago little -- someone previous this or the rate

Moving number to Slide XX.

per slide said, for to important on is already same earnings diluted, the compared have shares $X.XX year. the as previous share have quarter year's this The managed point per common the we $X.XX previous to quarter, we of

Again, our kept XX. have number sheet very at Slide to balance a we healthy Moving condition.

the time the and be at cash $XXX.X at something. and debt million deposit to level and of cash the see can You total only plus equivalents $XXX

only leaves you If $XXX math, net the this point do company something debt million. position with of a the

Slide number XX.

the have have loan the and entire our amortization did XXXX. times, XXXX, successfully agreements we we very maturities million, last mentioned two another for for As the entire profile have $XXX important. loan is of agreements, account for million remaining the two many and one XXXX managed Taking not managing into to last one the the XXXX we $XX and

not our since being very management from for be have beginning this liabilities. with should of you that course, prudent the know we you Of news the

Slide number XX.

the composition, interest in can debt In of in each good others addition years fixed been that is come. various slide, rate with the unstable and each financial with demonstrated previous composition clearly also at hedge total to to it the amount some variable gives instruments, reasonable the position how looking a interest And rates for this debt environment.

XX. Slide number

been cost kept very Our levels. at also low breakeven has

approximately here talking $XX,XXX. are We

and charter time other talking about the at only $XX,XXX fixed for rate XXXX, XX% at Looking of the course, revenues for $XX,XXX day. days, of still XXXX, the for of remaining it per but is our we're

strategy slide, this depicts you already is the chartering specific have much the for that previous we at provides the looking exactly on of is -- best that reward the proven this strategy, mentioned same pretty which our are but essence revenues. that usual Slide bored slides. XXXX. risk XX, since is The numbers ratio our certain that graph A

if the cash million can May $XX surplus It of million are number we XX. the a on have XXXX. Slide Using point not side. $X.X flow and XXXX FFAs, looks XX high for as for course, something of

market Margaronis drybulk call will Anastasios Anastasios? And the to now, pass I the for outlook.

Anastasios Margaronis

me Thank the on as conference performance look well the Diana's and at welcome from to call participants QX the you, of this financial And Ioannis. outlook. industry

carrier to loading inquiry in I'd bulk like recent sector by bulk softer earnings earnings looking per weaker The sentiment. amid regions earnings range. developments. experienced are day, to all across Average bulk cargo size at limited around $XX,XXX key has carrier start recently and carrier down

$XX,XXX January was following and the at put help the which of the The year charter per per The stands peaked earnings around was moved yesterday Baltic route at XXX. year to Index $XX,XXX time on yesterday. perspective high this day. rate closed high day. XXX the trends, X,XXX five The we and closed time X,XXX earnings year X,XXX in market. a Index indices, Cape XXXX present the and at reached last Cape started TC XXXX observed Panamax into The was the X,XXX. average the XXXX XX Baltic XXXX high The X,XXX The for Looking closed X,XXX. yesterday $XX,XXX state on X,XXX Dry Baltic peaked TC and X,XXX. Index started $XX,XXX peaking average of The months’ per charter of the at X,XXX X,XXX at X X It with the and yesterday high at January at at Supramax us the at day. year at from XX stood five The at Index Baltic earnings day.

for $XX,XXX per around For per low day, day. rate Ultramaxes, a at while Panamaxes, the it is stands $XX,XXX

performed economy inflation, instability, this energy X.X% quarter world and up wild headwinds development. spending let's and the and XXXX. forecast and According the or U.S. create the bulk Chinese last and which Slide supportive, X.X% Clarksons, may -- to the have have were continuing the quarter consumption reasons earnings not conflict. GDP look to was Manufacturing XX, banking stability year, expected last market the by policy in system property from for well. prices, Now of as On to while this IMF, to a the these the the infrastructure at the can is Chinese X.X% grew we X. during published rather Russia-Ukraine monetary of explain Uncertainties latest macroeconomic in year grow behind X% include trajectory, indices. try by first According sector the which carrier by in GDP movements year. domestic

this New XX% three the construction year. first down of during spending months was

while For this X.X% to year, expected grow XXXX, is grow X.X% States and only by year next to year. United grow by Eurozone X.X% China's area in is XXXX, GDP by X.X% XXXX. in by by and is anticipated the The this to X.X% expected and X.X%

projected is renewal This X% trade look A this the Last grow pressure on the a to for in up now. The million least at conflict came at not global grain fresh on grain year, reduction XXth tons quick by be initiative the place May trades to Russia-Ukraine year, in exports from XX Black regulations. and appears including volume. May. now further, factors Sea seaborne of grain season by grain X. XXXX. X% seaborne put and and grain exports Ukraine these year is Ukraine reached that several It disrupted will agreement this the

XXXX, increase by grain X%. trade to is seaborne a expected world For further

this trade to year, X.X% this last to will million of As China seaborne its whole thermal expected coal increase coal grow expected to further a seaborne imports coking this reach Indonesia of XX% will are X% currently Thermal by coal, X%. X% while which are global import coal by increase transportation coal this are once expected currently regards by X%. tons. is about thermal to than exports tons. X.X% marginally by projected year. by year, Chinese expected coal grow trade again by probably tons. XXXX, coal drop to grow X.X% last to to to XXX coking global is exports is XXXX, projected to XXXX, XX XX% year India's imports while about grow XXX million year. also by projected expected to Clarksons is a is seaborne coking imports to million as In less coking In and follow by compared increase India year by around increase about coal,

by implemented, If is global Clarksons expected X% ore year projected ore July. a lowest in place cap this On the come government's iron level trade destocking. their to grow Chinese this on XXXX the could imports in this over back X.X% trade, the at to by production iron tons billion year. billion ore tons. imports X.X production to since sector. rest by is the at Research, on grow According iron steel all-important Chinese The concern around and to to decision of main helped sentiment stockpiles China improving are are the here steel Commodore the reduce the Chinese levels. Strong seaborne steel at ore has iron of last X.XXX

to and X% minor affected from the between demand it projected bulk for fertilizers, have Turning and minerals in trade. that minor trade or for The bulks, has them pressures the continue by seaborne responsible one way is been bulk commodities. metals and Clarksons, by parties Clarksons was. last marginal This bulkers macroeconomic are imports to year this ton would headwinds something in bright Ukraine. Furthermore, trade bauxite, well. global against expect by sanctions trade. Australia demand contracting such increase was X% and Agri this will mile China's without all mainly lower spot after as been have year According the actually in year bauxite XXXX. X.X% restrictions another warring Russia than other to the bulk for been weakness minor is Guinea, One of currently

end order XX looking Slide had overall at negative options birth entire on building bulker to at orders. to X% the about economic the to a place technology at According of Clarksons March. books The stood uncertainties new fleet have book owner's new and order and willingness at impact building of and the supply side. Uncertainty new high fueling building availability Turning prices shipyard. now limited

percentage Cape, year of spectrum an X.X% the for of For this X.X%. for Panamaxes was just Ordering has average across been Handymax and down this X%, by Ultramaxes, XX% bulk size carrier.

year car be to LNG will of late and orders XXXX buildings carriers, before containerships. carriers due not backlog ordering this delivered New the of

Clarksons, capacity year down this XX%. XXXX. and expected the development. Handymax just to and on port also a to this to grow fleet expected by grow by XXXX, supply X.X% index XX% Panamax and is about ago the X.X% is to anticipated X.X% by X.X% Cape and closer dropped XXXX-XXXX X.X% XX% the Panamax of grow and now The only Checking XXXX. in with year. globally of to about having congestion year side, Kamsarmax with in is According Clarksons April, next fleet from X.X% Still in about The Capesize fleet fleet dropped Ultramax in the year has average early to

transition. ships According of of Clarksons all order. XX tonnage the fueling is statistics to by at of look first total the which the and during this quick A of were published American Shipping, Bureau alternative quarter year, capable ordered fuel XX% types

with remained QX, in LNG popular container most XX interest primarily vessels, the ships which was in XX. were there While option methanol some orders,

premium readiness methanol by Some ordering the for payable notation. owners ships with fuel orders. to are very ships optionality LNG, ready ordering with extent these vessels or The of full directly ammonia few proportionate is

order equipped X% of will terms with This as will bio energy and fitted by in that energy modern the least index of world’s propeller tonnage, the ducts beginning of around end the Granular of EEXI, rather short technology. the on be ships among saving XX% some eco is XX% gross types fuel It book measures of be of Capital others. all technology, energy alternative term by at and is the be least be one the with [indiscernible], or the XX% XXXX will such bulk existing index. sort at of CII, fleet, enhancement, saving efficiency ship will carbon estimated result year, At intensity the IMO this ton

deadweight XX.X forecast this year look Clarksons million published dry at by for demolition demolition. bulk The for is tons. A quick

aging regulations While million stands $XXX next for for forecast candidate the ton and the to bulk deadweight, lightweight price is mainly benchmark into XX.X the due year, fleet The for at environmental come $XXX per to force. around displacement. scraping carrier

marginally order to this our demand earlier. XX estimate with in about fleet demand anticipated book outlook Improvement for backdrop ship mentioned grow XXXX We around water expected overall. industry. industry. of of a tonnage by the as broadly to year X.X% in agree of growth ton The X% appearing bulker low year are fundamentals the the against Finally, positive supply with for with supply Clarksons on earnings mile X.X% of stands near our

given more by grow emissions projected reduced slightly by with fact in could earlier, come market supply Furthermore, supply annum of fundamentals. slowing improve. on further the balanced pass, the estimated X% quarters, based total Earnings regulations potentially deliveries time. be mile about per these compliance and forecasts Ton for has with If mentioned Clarksons X%, few increased bulker X.X%, lower to forecasts an shortage last some while that could is capacity the XXXX, speeds less surplus been to the than to demand should significant it improvements X.X% and growth fleet no considering bulker initially evenly XXXX-XXXX bulk market and demolition. through carrier for tonnage. retrofitted positive demand indeed during In

uncertainty timing ruin to benign potential which However, about in cautious easily the and for us our of supply/demand be economy, the more growth monitored beyond. still influence adverse future Clarksons highlight scale over improvements weaknesses demand and as close. forecast developments This the and prospects could XXXX uncertainty the industry world need and market of makes

by in on We balance same the commercial call. the chartering of in our things time, Ioannis conference CFO, this earlier our continue other And therefore with among adopting mentioned view our the strengthening agnostic sheet Zafirakis and fleet. at management actions

Semiramis our our Thank for I of and an forward. going will now pass the goals overview you. to call corporate Paliou strategy back CEO,

Semiramis Paliou

Anastasios. you, Thank

summarize the to today's Before key we I open questions-and-answer up session, to points the presentation. like would from call

Since cash in-kind consistently positive and continue XXXX, November we distributed putting generating and we on free dividends. securing have flows. emphasis cash Firstly, substantial

to our clear quarterly per of dividend a guidance provided intention declare share of next have we two quarters for the of $X.XX XXXX. Additionally,

maintains balance fleet initiatives. our growth allowing company and strong sheet, creative renewal Secondly, a to opportunities pursue us

to of remain cyclical business, while committed maximizing term long strategy in we our a shareholder Third, value. providing stability

all look session. the Q&A today, addressing forward Thank during joining we and you to us your questions for

Operator

over you. questions floor there We’ll no like turn for Thank a any closing now I'd are If session. or to management conducting time, comments. question-and-answer back at the this be [Operator further Instructions] to

Semiramis Paliou

Thank thank again, you We our forward Once look to us much. today. all earnings you. for Thank on joining very talking to you call. you next

Operator

does That conclude and you. Thank today's webcast. teleconference

You We your participation wonderful time and at for today. may day. thank this lines have you disconnect a your

Diana Shipping (DSX) 26 May 232023 Q1 Earnings call transcript