Earnings call transcript Q2 2023

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Operator

Greetings and welcome to Diana Shipping Inc.

Second Quarter 2023 Conference Call and Webcast. [Operator Instructions].

As a reminder, this conference is being recorded. At this time, I would like to hand the call over to Ed Nebb, Investor Relations adviser with the company. you. Thank

begin. may You

Edward Nebb

Chief thanks Diana who Quarter Shipping today the Semiramis With and the will today members other Conference joining for us of Paliou, are management the Inc. team. from Officer, to Daryl, who is introduce everyone management us Call. Executive Thanks, XXXX Second

I further And it to so ado, without Semiramis. over turn will

Semiramis Paliou

Thank you, Ed.

Director CEO and My So Second am Diana Diana Ms. and Mr. Quarter Inc.'s is Dede, to Diana Shipping, joined name Stasi Shipping, CFO Semiramis the pleasure the good is team, Shipping Ioannis Maria to morning, company, I of company's ladies Mr. to opportunity Papatrifon, and gentlemen, President Director, of Zafirakis, Paliou, and Officer; great of by Inc; a Strategy esteemed and Inc; to the Earnings Margaronis, Accounting our it Officer. you and Call. Chief the welcome have XXXX Chief Director Eleftherios today. present Mr.

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

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

largely insulated previous earnings and call, disciplined do strategy conditions $X.XX shares continue quarter this again positive to provided the in company's from In to to or shareholders We election guidance during for declare per shareholders' paid our once which Our any cash. dividend a allowed rewarding line the we us amounting so. market of distribution flow. when at will share charter-in the be pleased weakening us cash in allow us has has free generate to with to the are aim

of operate company's Ultramax interest arrangement provide including fleet tonnes. deadweight an capacity partial X. a approximately a water, a currently Slide of through and snapshot own with I the venture in a to Turning X vessels X.X XX the today. million of We in as carrying of overview will joint

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

at of ashore people X,XXX quarter. employed end sea we of the as second and Additionally, the

to secured Moving highlights the facility Danish and million been successfully quarter from In we USD X. by has go Ship over on Finance, secured We'll loan loan and vessels. XXX existing down Slide X recent the April, from drawn term to which key X developments. second facilities then refinance

vessel April. for completed company month, the the DSI vessel same from of ownership Drammen the venture price Within purchase the longer The for procured the we And joint was and Bank. debt we month, to in acquired USD XX.X same financing a within delivered million. Nordea

amounting a million. on DSX to receive $X.XX May according shares election. cash approximately Moving Shareholders per the of the XX declared common form to XXXX. have the share, to their or dividend in to We of option quarterly dividend USD

took During by our loan further Bank We $XX.X optimize Nordea secured the vessels. June, steps facilities to to million term financial facility existing loan we position. refinance utilized signed X and with

After this DNB loan to vessels. we not debt XXXX. secured Additionally, term refinancing, we another maturities USD from facility million entered Bank to the XXX any refinance end now loan do have existing facilities until with of XX into

Bank repurchased loan overnight In facility X.XXX% listed financing into the term the the transition restated senior of Oslo software. the unsecured our X the for and on of amended within USD month, approximately same secured China an Børs. Lastly, we million we bonds on signed rate Export-Import July,

form the paid pleased cash. shareholders software. dividend or $X.XX all DSX As been a to in any our in of per to election million we USD XX shares share, converted of quarterly a announce successfully are now at common Today, have result, totaling agreements be debt the into of approximately

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

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

financial Slide X. on the Turning of second quarter highlights of the to XXXX

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

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

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

Moving on to Slide X.

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

in our charter-in to for last We presentation implement time strategy by X May disciplined have XXXX. our continued earnings securing vessels since profitable charters

vessel we Ultramax a USD To of XX,XXX X average a with of detail, some rate charted provide for have period remaining daily days.

will participate daily of Additionally, focusing with at positioning XX,XXX way X days efficiently. to Capesize a financials. locking continue more We rate XXX ourselves we a Kamsarmax staggered cash of and and Ioannis market and detailed USD XXX to pass of chartering the days, respectively. a on intend and rate remaining in daily to the the period and in chartered in USD to in have remaining of XX,XXX average vessel of our X I floor the average now a a analysis provide on our vessels balanced flows manner, period

Ioannis Zafirakis

and they the going has other hand, on to increased And the the all months numbers deteriorated. market the had the are cost for this this financing reflecting X Hello, that fact everyone. we're discussing, be Basically, quarter. that

the XX charter vessels instead of was $XX.X So time the but time basically, This earlier, $XX.X was in it seen as was previous the Semiramis at year's that XX previous million, was below XX course, charter something X XXXX the and the decreased of in rates that that June $XX,XXX larger at rate stood equivalent quarter the months the of time instead XX.X the quarter. said have million as at previous revenues that also a we in of charter for with ended can be number year. it the

The compared expenses daily this in year quarter to operating $X,XXX for close XXXX. $X,XXX to the were that

Next period in it can slide. -- was months The same $XXX XXXX X previous months, again, $XXX at X charter $XX,XXX the $XX,XXX you in same the of million. where the operating picture, time what rate Again, year. X was see of charter the XXXX The compared with vessels. X the compared for the stood last it The same in that are for same, see X.X in more time similar to equivalent at period the XXXX, that, or smaller expenses revenues to the months. you number could million, X.X was months much at to same less

income Slide statement. to XX, Moving the

increased can costs. have an interest and we that expense You see financing

debt period X performance is $X.XX year. for currently all, We have the $XX.X $XX.X the And million compared also on to slightly back at. we that rate same $X.X X-month financing the that months, the reflects the period earnings in previous of number XXXX. that the compared for share diluted more was in All -- and are increased environment of cost based million to

XXXX. is for in compared this the X of to the the quarter the was the per $X.XX picture diluted period, same. at quarter same And months share $X.XX For earnings common

numbers, a December At with to Slide be cash our restricted should If year. mentioned and is was and we compared important we that debt long-term sheet, because of this had liabilities, position liabilities -- $XXX.X to company debt I The to $XXX.X $XXX to and move cash cash those -- finance X XX putting compared compared And the the and million notice long-term balance the it the in together seen the time what million of Semiramis today deposits time and cash million. have. XX. think previous to million equivalent equivalents plus it deposits cash together $XXX.X we finance previous net and

Slide XX.

bit bond the $XXX.X a repurchased amount XX. the manageable. some around of will we this total maturities decreased should is unsecured to The see fact that is back. we end of a in little bond to as we XXXX. than And XX. matures through only As the past, Slide the -- here that said very XXXX XXXX already of see have we have $XXX the looks I in are at come. XXXX, amount the that you in number of $XXX manageable, from no up that million that next And this one years in depicts Slide -- very, picture we very that we company can which until $XXX million. maturity take that it less for the the in end XXXX, mentioned senior slide, the CEO million that notice have But million, with have debt We earlier. clearly for in

breakeven see our at and free on it is quarter, can around You $XX,XXX. flow cash this based

Our daily time above days. the XXXX the revenues $XX,XXX number, that rate, for fixed charter average is fixed XX% of for

the our the have $XX,XXX XXXX, about that for XX. XX% fixed the usual for graph of And Slide is days. This charter-in we strategy.

of for the the have remaining we You XXXX. our the we $XX.X vessels. of average we each secured the have can staggering years. that of for the moment million X.X see duration clearly And charters openings contract are that And of is

on I low you FFA curve we pass can on at see would that that vessels year, the curve, to Stasi still the the you if positive call take in that flow be outlook. like cash based that we graph see look existing will market with on fixing that discussion this if a even this So and be And for we for XX, basis. the assume we remaining to have XXXX, note, the below of with for the a Slide will the

Anastasios Margaronis

and market industry Thank Without dry conference the Ioannis. participants Thanks, welcome poor sectors. the in on of of performance and shipping major Diana's year-to-date doubt, the this all performance clocked bulk financial carrier call latest second this all to you, quarter on outlook.

X,XXX the about at most of by we yesterday. closed closed Cape respected and only X,XXX the the Panamax this To XXX We Baltic at XXX this XXXX, possible year. beginning Index same outlook Baltic went the the and at Indices since moved at on dry on period, earnings XX, statement year bulk at from will Index illustrate X,XXX. July The XXX. Index Supramax at present to shipping stood analysts. reasons yesterday, to in Baltic while the X,XXX started yesterday January Baltic look Index X,XXX January given for Dry look need Baltic the and the The over X, The the X from

freight what So prevailing. market about the conditions

time, been weaker trends by these accompanied other lower demand marginally firmer levels in trends this tonnage added which were to to according supply. But congestion by same prevailed port in led At slightly have active have have of Now Clarksons' thus year far. key the improvements China. regions,

For most experienced year, this strong bulker will markets in to of half and we more first moderate XXXX conditions overall, XXXX. likely the the compared witness

foresee Clarksons' in materializing the improvements some However, coming in earnings quarters.

will short the the reasons presentation analyzed market. state The later of be on in the

average $XX,XXX for per and earnings around to and XX% also to XX-month dropped and at trend Ultramax. for According weeks. charter and time XX,XXX XX- down around $XX,XXX XX-month to other charter XXXX been day now. average. Panamaxes for have the a USD for day across per last bit steadily of less and the by Clarksons published board XX% for figures coming Capes, Kamsarmaxes, So rate Capes The by compared Supramaxes have Panamaxes several for Panamaxes earnings the Capes analysts, over stands about voyage rates time

macroeconomic now. development the to Turning

to is this X.X% by China in by year, According grow XXXX. IMF, to X.X% expected the and

for for X.X% X.X% U.S. And Eurozone, around For at X.X% the year year. stand this about this the for X.X% XXXX. prediction and year growth and next

regards note, despite China. On largest third space research XXXX. growth the date. Research to was to This from flow available resume in the for more drag report decline, positive They recovery from amount is X.X% supply April the is to in acknowledge its the remains percentage quarter As global indicates as points slowing expect raised a This underway. current finally, to spending this industrial Even China's forecast consumer that bound China, IMF to but any though year X.X last that week has China a since vacant momentum that housing indeed the market act by witnessed recovery marked recovery their housing Commodore to scenarios problem. GDP a to during continued X%.

kept was forecast growth XXXX The at X%.

policies net decarbonization. have timeline affecting look I'm different for came Hartland everybody's pricing Protection at to now. quick So soon. standard, to such the shipping XXXX, in into mind national recent guarantee XXth pledged the and Let's that be has to a by and targets? new a Services, According does Shipping need circumstances." to agreement a but will carbon environmental there reach scheme, up the The these with reach It shipping zero and review scheme the tax was this Marine What the no Committee to is, IMO issues around implemented how Environment happen? meeting or enable to question emissions account implemented fuel be "taking is

to yet which play, have an encourages We see policy in IMO decarbonization. actively

find CII and The themselves allow carbon theory stated fewer index of ship efficiency, reaching purpose there. taxes exist do schemes to emissions steppingstone promote the the a in best the goals. just market not in energy serve at are way In and the least, and

proposed is equalize per COX is The with of set current be fuel However, emission line trading EU broadly which of the in about of unrealistically the low level cost high. at to of end need carbon prices. levies higher $XXX scheme tonne would tariffs to

e-ammonia would e-fuels state except oil. This lower to per tonne at the of levy fuel the of of than $XXX an Their $XXX near about if cost example, cost put anywhere and make above-mentioned profitable estimates oil. densities of biofuels not against accept of energy Even tonne or COX fuel $XXX freight. green per marine the are To XX% optimistic pay oil, a fuel tonne. minimum for of per e-methanol COX about to shippers at

shipping would be including least costs, tonne obvious $XXX tonne. at the $XXX So industry than tax the come of at very per that one therefore COX still about equalize cheaper low-sulphur the is $XXX tax where trickiest To tonne. fuel should carbon price per could around go to that It e-fuel's of to oil, It decarbonize. to itself. carbon the in per is [indiscernible] above from

above. more, decarbonization to Even cost e-fuels IMO governments obstacles of the needs to do to remove need and though helping grids mentioned the the power by to down bring

to regards May represents end the with the contracted been XX% XXX ordered ships to while are capable set As fuel to tonnage has now alternative this ships in There contracted were ships period. types methanol to such units or interest ships alternative so during alternative fuel according in a represents about vessels on XX% order January about This of kind during XX XXX of fuel all Clarksons, which fuels methanol year. XX% of capable, period. firm from of of this tonnage all all XX% short fuel some far be Overall, have ordered XXXX, date of ordered alternative of alternative this to capability. dual-fuel

So Slide X.X about world XXXX to are iron Clarksons, According ore grow billion in and to X% looking iron to expected of XX ore. at tonnes. reach turning and shipments

China. potentially Next X% year's in volumes to are further by expected demand rebound a steel economies as begins key outside increase to

currently in a from both the seaborne that Braemar, coal, subdued it negative As this in steam coking is opportunities weather to China. improve exports coking regards operations year. to steel South further present. between Africa conditions have Australia reasonable next create can XXXX coal X% demand Asia by Panamaxes. would coking in X% July factor East and the half January trade is global abates, If restricted us, this and for to production coal, of again, According year at is coal Capes XXXX. only trading supply [indiscernible] more and and worst a during first projected This and The and than weather sector grow of by assume chain Clarksons to tell

billion grow global to On X% this to seaborne X% X by coal by moved XXXX. another trade and tonnes steam in higher year report thermal coal, Clarksons expected

projected XXX restrictions XXXX to imports are hydroelectric activity, to domestic Chinese million from improved in energy amid year, by and tonnes XX% increase increased this production. economic to demand For weaker output

be However, impact monitored landborne for transportation on imports from Mongolia, to volumes. we need the closely sea

XXXX regions. ample met seaborne the mentioned grain trade, season, U.S., be to Australia key global This the in the as across On by will amidst notably firm X% is and grain below. importing trade grow grain from demand Brazil, expected supply year-on-year currently seaborne Canada, by

and discussing grain among Board In end XX% prices Grain missile, have Most invasion to according Black where grain of equivalent grain grain from. gone immediate the as than European the made the the Eastern futures Poland since grain of of Bloomberg. Ukrainian In apparent Black in cargoes targeting the to portside by are by aftermath states, the Ukraine the a the of and gain Trade come Odessa X question will biggest ports. which average Braemar, through Croatia result, and Russia, response according the stocks Russian consumers of Sea price Chicago Sea for territories their initiative meantime, the In up in of the an shippers Ukraine. transit meantime, to the Ukrainian though, Bulgaria, is rather by

Most analysts the believe U.S. these Brazil, will come from and Canada.

as problems shipping to pricing logistical longer are tonnage Americas be on there present for voyages and to opportunity more China with. However, from dealt regards absorb any of countries to an these Europe. tonne-miles, Nevertheless, and the

bulk in On fertilizers to trends forest headwinds improved by products are such in trades China about regions. bulk according this now supported the most supply/demand and trade, increase projected trades, as to billion are apparently in equation. Russia-exposed X% and easing The in X.X the other by demand XXXX benign industrial tonnes minor Clarksons, minor unknown important to

In With Turning at old. is percentage [indiscernible]. bulker been the of market about falls to weak over age Panamaxes XX% Handymax fleet older while sector conditions, younger that over in old. have all category, only The many is the demolition XX considering the scrapping tonnage XX XX%. X% of years Overall, were of segment, owners now. years X% Capes are

dictate, forecasting million for are Clarksons XX candidates, there of all, in sold brakes. head for is the that scrapping of if market this about doubt a XXXX. are in plenty deadweight which all of demolition year be conditions and there million bulkers total about X would So will no

Slide at So XX, we on look newbuildings.

According order deadweight the book to X.X% existing bulkers figures presented overall fleet. of the XX.X stands million or Clarksons, by for at

X.X%; Panamaxes delivered will For Cape, and from percentage and split Cape most year for for stands equally are at and XXXX, between XXXX XXXX very onwards. delivery at be few at X.X%; while Handymaxes just Handymaxes Panamax X.X%. next and

tonne-mile with headline for let's fleet outlook. According to sector, Clarksons' appear So X% about at projected look overall growth. in XXXX the growth fundamentals the bulker versus supply/demand supply/demand balanced X.X% demand

lower supply speeds an emissions of retrofit sector. to rest supply would regulations potential X% time. spots speeds bulker XXXX in need improvements moderating Compliance economic scale and annum reduce over Uncertainty Slower of the per are global XXXX and the be market average remains available the X.X% with year closely and the monitored. for to through timing active by estimated across weak to on

China's stockpile. most coal too to keep Commodore port that did bullish major the data ore China's output steel year-on-year nation's Also stockpile and falling by showing Research was recently most X%. iron so according the recent grew

to So than according to continue suggest. narratives fare to Research, China better continues Commodore

believes forecasted much of On world than should consideration is narratives and in continue believe performing taking to the the of demand. dry Research rise other the Commodore supply rest that rates worse the term, near-term hand, The that near into suggest. bulk firm

forward. monitored deteriorate be outside However, in going should case weakness China things closely

total in initially fundamental. selling Looking Clarksons given grow and stated including any to by in expected the fleet. is from potentially fleet at company's buy, charter-in making growth senior some repeatedly demolition slower demand to is increased management Dry market the come tonnage business way reasons of more X.X% while our and waiver not also further This back in positive projected is X% to XXXX, environment above. stated for the the supply-demand capacity less strategy, deliveries of ahead, about bulker forecast improvements bulk from than

Balance by supported has of been Directors. top or executives has our priorities sheet of our CEO and senior the strength always Board one been firmly and

will So things for are remarks. forward contingency, our or will CEO, might that mildly call I going look for prepared the closing now positive going bad to we forward, the this we good Semiramis any Paliou, believe not strategy. pass affect and

Semiramis Paliou

and answers, points the summarize today's And key I Stasi. presentation. would up the to you, open before we like to Thank call questions from

substantial generating focus flows. cash in-kind Our have free ongoing dividends. cash remains distributed on XXXX, securing and we from and positive consistently Starting November

have Additionally, for communicated we declare $X.XX dividend of share quarterly the a intention our upcoming clear per to quarter.

which balance our and our through strong fleet act maintains taking projects. Secondly, its us sustainable capital of and enables company in to enticing sheet renewing management, advantage active opportunistically structure modernizing shipping

business, of during Thirdly, shareholder we us Q&A to remain long-term our addressing value. session. providing forward joining you today, Thank the cyclical committed a your while and to strategy look maximizing we stability for questions all in

Operator

[Operator Instructions].

from first Our of Omar with line the questions Jefferies. come Nokta

Omar Nokta

I doing wanted you're things strategically. on just how to check

maybe you've do held the are looked But story a a of us You and We're Diana on about get past, this just How I reaffirmed Diana And to views. at quarter. then? In the market right dividend for pretty point? now. key solid dividends just better the on a your back of during -- acquiring period kind allocation the tonnage in wanted today weakness, update at next gave for has $X.XX of of just times back cheap. versus you've a on part capital dividends you soft somewhat think sense,

Ioannis Zafirakis

the a truth market the made for part a remind low part at is cycle period back for to and buying to this buying Ioannis. X that matter that. manner of vessels at X years The acquisitions took the you is years after we around while. being that Omar, started investment have or was stagger buying we to in again stock -- X the before the lower of our the do I back

I no don't we opportunities by means, attractive purchase are see we more think to this level at So vessels. where

cash, comfortable existing dividend. as another $X.XX a we the paying see can you and allocation, cash the regards As feel

the continue strategy. charter-in same We having

be lowest is kept the And in we low at time that can of also distinguish say to that that market levels position see they the to are or we very are not further today, you very, charter we lowest going part say not you the The We down even that or the go the market a have the see spot materially. cycle. are whether can with to market.

in spot now even the middle is good somewhere market sure. the are charter rates. time We The as for not regards

cut to us. investment period for this short, do that story long we So the think is not an

side, paying play another defense, On are dividend. have the we other but of we to prepared means still the

Omar Nokta

I that clear. just in Is it pretty of mean nothing seems and moment. That's terms acquisitions, compelling the -- really simply mentioned Okay. is that looks you at it...

Ioannis Zafirakis

Sorry Omar. to --

investment, As fuel I type in you attractive particularly are an mean, nothing we're changing fuel said what there the looks et realize things going that Having that, be fuel, today. vessels, using, consumption of cetera. burning, to the of

We have that we And the opportunities, would and to makes type the of don't clear see going be us to follow sense. today respect, changes. see that be it this follow are But challenges changes doing only happening. investment you a to to as if that investment something

Sorry to interrupt.

Omar Nokta

today, where market understand was soft -- why could just is a spot you... No, more that at just wanted they qualify the be? and I just more that's in related no, rates to you is it are kind because little too to relative it soft that or helpful. to values the a period is should circular of maybe maybe that somewhat you asset bit in think reference, we're dig I -- but elevated maybe know just are

Ioannis Zafirakis

level that where rates market or should at they're big acting will even especially many the you the of the is, stay very they're usually, And course, today. going down change have prices The gone lag, I'm caution that are the do after vessels, will higher. The but no. follow better this of levels you immediately. No, a on not for time the a where to not years movements there not we be whether to quickly not further go is values going going so keep gone as to know charters. you while whether when or they of question have saying they the see the What is and vessels

-- temporary, remind is where rates are, think have they to is usually market. is when to is going the everyone that and there kept what higher where and people the market why high also, lag levels, this dictate. I a what There the And there see the market be way from thinking they has the market is is than the values the that time the vessel the sentiment. plenty of are dropped the expectation charter this values in between to and are And wishful correlated that

time, do don't this we or we to definitely happen guess foresee anyone is X what that is of I to know you the We going a at that So are in think companies these that how is And one keep course of going market to months. that. to position after don't our regardless evolve.

Omar Nokta

your now, you allocation definitely policy. Indeed, -- long-term stuck to

the of So I deployment and -- will fleet.

leave I'll that. at So it

Operator

over [Operator further Instructions]. closing I'm showing for back call the queue. no questions remarks. any in the to management I'd like to hand

Semiramis Paliou

to joining next call our for of speaking look conference much. call. -- forward to today. very again us all all you Thank We earnings you at you Thank

Operator

does Thank participation. today's We you. This your conclude appreciate teleconference.

day. at disconnect Enjoy this the may time. your your lines You of rest

Diana Shipping (DSX) 1 Aug 232023 Q2 Earnings call transcript