DSX - Earnings call 4 2023 | Diana Shipping Inc.

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Operator

Hello, and welcome to the Diana Shipping Inc. 2023 Fourth Quarter and Year-end Conference Call and Webcast. [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 for Diana Shipping. Please go ahead, Ed.

Edward Nebb

thanks Diana who Shipping and today joining Kevin, the for Inc. you, to is everyone us Thank XXXX Fourth Quarter and Full Year Conference Call. from will members With Officer, today management Paliou, Semiramis us Chief and she the introduce of other the management team. are Executive

will ado, Ms. without call the I so over turn And further to Paliou.

Semiramis Paliou

and Good XXXX to Financial Conference and Call. Diana End Shipping you, Ed. gentlemen, and Year Thank Inc.'s of morning, ladies welcome Fourth Quarter Results

present And I'm Director said, CEO Paliou, our it's Stasi my Mr. Semiramis to Ioannis and Zafirakis, the company. I As Director, Chief of Margaronis, pleasure Director. Papatrifon, CFO the Mr.Lefteris alongside Mr. is team, esteemed and the who Officer; Strategy President;

remind Before presentation, the to please. review on the we to forward-looking accompanying begin, I'd everyone Page like statement X of

conditions a Within last robust. and market the witnessed result, market we despite us dividend quarter fourth the and disciplined of strategy during conditions quarter a flows. of mixed early in this $X.XXX continue for we has being In are cash cash the February, XXXX XXXX sentiment announced market current to free chartering allowed share. background, per our improving XXXX, have significantly positive as of more generating So

snapshot I with will Turning to Slide X. today. you as the review company's of

Our of with water approximately XX fleet deadweight comprises vessels a X.X total in the million tonnes.

our fiscal has Our of reaching attributed XXXX, year the our consistently to fleet and for remained management vessels. utilization XX.X% prudent efficient high

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

X. Moving Slide on to

sustainable XXXX These dual-fuel contract expected two of the to a and and executed investment $XX be Tsuneishi of the first at bulk the the quarter in million developments. price recent We XX,XXX new-building for highlights delivered Group second vessels of half respectively. The dry vessels acquisition half purchase the XXXX, from are & our built each. impact the the company to Business for over commitment during go in Kamsarmax at continually just of our key to our environmental was deadweight striving methanol our our take COPXX Let's recently third highlighted and We for of benefit million demonstrating the of as very USD Philanthropy enhance mentioned seriously, leader fleet Dubai. of Climate environment. dedication initiatives. an and This the fleet, practices showcased the stakeholders the XX industry operations and our to reducing presentation Forum role to

In joint investment X operation option its increased to addition, yard service entity, exercising vessels. from Winward of Offshore, X be at venture as to additional X construct high-spec CSOVs, our has result its built VARD commissioning to vessels, a

have renewal and at continuing vessels Artemis Houston X Furthermore, sale carbon of the in our reflection more to participation to industry continued reducing this meet another the These sold venture Our is footprint. our net USD of dedication a investments approximately industry. our to and parties. million XX.X shipping of positions and vessel underscore modernization and us while been unaffiliated XX to shipping commitment a third evolving million. demand sustainable our our motor sustainable USD approximately for greener of fleet, vessel Motor price

in an a Before The our shareholders. for announced we the XX, raise which of stock, XXXX, common pro-rata for exercised. company's the the report ESG provided be equity of a can company were of distribution X,XXX,XXX fourth potentially as the a distribution warrant on November opportunity holders of manner to non-dilutive XX, February with XXXX, which and website. XXXX, of us existing copy end warrants year, On our its to released found of

million approximately contracted XX, revenue February of has of XX% the ownership revenues. the remaining of XXXX, to USD XXXX, company year As for of the days secured XXX.X amounting

of USD approximately secured contracted has company revenues. the XX Additionally, million

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

are pleased quarterly of USD earlier, a mentioned As approximately to million. cash common declare we X.X dividend share, $X.XXX totaling per

announce the the Year to pleased our Shipping prestigious company to is Finally, XXX Company a This List we of of Cargo with honored team. was excellence our Dry the Lloyd's dedication work, Awards. recognition that Award are hard the Greek testament at and

Moving on to Slide X.

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

a XXXX. detail, for disciplined XX,XXX continued vessels with To have of vessels charters our chartered X period we rate average securing average X of for day in weighted presentation provide USD our earnings days. XXX to a by per since have last implement time some remaining profitable We Ultramax strategy November daily

chartered manner. average of illustrates days. Slide XXX Additionally, X a average X staggered Panamax, day of in a daily been with Kamsarmax, period to X XX,XXX a USD day USD and charter have strategically and for a rate Kamsarmax days rate daily XXX average average vessels weighted Post-Panamax remaining our weighted of new per at period vessels a have of per been Capesize remaining vessels commitment our chartered XX,XXX

Our through the participate balanced emphasis will to in in now to Ioannis more floor on to positive detailed is financials. free flow way disciplined positioning market strategy our the employment cash ourselves a analysis pass of and provide securing I a our efficiently.

Ioannis Zafirakis

see X to compared conditions the million. of decrease financing cost to the other but $XXX.X you, the for can you you $XXX the can to we to net market XXXX and Thank that's to in we deferred that see million of for that million XXXX, point $XX regardless side $XXX.X on #X with the compared to the compared to million-point-something Slide also, finance market points. $XX Semiramis. quarter, -- have compared do liabilities million position deteriorating compared in same and clearly million the that the long-term managed of And have XXXX managed our cash year of being conditions. to $XXX.X is here increase end our One main the to to revenue quarter fourth shows has

this for quarter the December slide, mainly rate XX,XXX charter the ended equivalent, we months our year. in time the the to time due Again, is to that previous has been market in fact condition the to XX,XXX X if equivalent slide see compared same charter move deteriorating. on XX, Now this time you the charter the can next basically

managed [ If that improved to what next XX.X the vessel average is the our the charter a to in XX.X% utilization that weighted to keep we same is move expenses, the although to The -- is worth compared the age equivalent been same years, the rate XXXX. to XX.X% also, mentioning And time slightly from to What year to XX.X in have has in have for worth passed X,XXX. slide, also increased has year. operating ] year compared is fact that they the to mentioning quarter XXXXX.X X,XXX previous XX.X. in the daily year we

Going income to the statement.

think last I the quarter same the can in this $X.XX you clearly quarter. XXXX -- that compared previous to see made $X.XX of we in year's

main the course, reason has market Of to that behind do different with conditions.

to earlier. to a go can $X.XX year-end that dilutive we here diluted on Again, as behind the statement, explained clear we share a per yes, same $X.XX the compared reasoning see basis, you previous $X.XX year, basis. common in on made income on -- If that earnings On

net prudent time equivalents, the restricted in and sheet, cash which way $XXX that balancing On compared as situation balance $XXX million cash we approximately again, to of consider The million balance said. debt we then of stood and very $XXX deposits debt And at shows that cash total to think is $XXX healthy. we sheet. be the our the our million million,

profile. This debt amortization to next the the in discussed have is the slide, Moving that we something past.

years maturities very no X and in XXXX, that You gives XXXX. X XXXX, million that the have maturities, bonds. debt our bond or amortization the can think clearly managed have us have We see we the the And that well X, next next profile. worth improve opportunity the we in to we years, of $XXX expiring X

of with you these it's healthy daily slide, we And time. If see the XX,XXX And and is cost, in our we approximately. can at flow free the XX,XXX is the at is XX% we to can be all cash that calculated be year maturing that see days. XXXX for you for breakeven, the are, can at for year, per order Together are time in moment, the increasing. charter the see bond us XXXX, average rate amortization going especially days. of going make breakeven this profile, worry to the XXXX the very revenues fleet balance be the about steadily profile. the the to that's of the XX% And you to that at about [indiscernible] of day fixed not the In talk fixed at the next

Moving to Slide #XX.

and the XXXX XXXX, X the conservative the FFAs flow is has for around way market on can in on different moved remaining XXXX, as February a since in create of year, the XX, the days, million. these rates, if XX we of use million for that can a bit market still numbers The You for we on cash free speak see and X, a last lot side the those has little are we there February some that $XX since based $X moved. way based

with that, -- review. some the I for think the Margaronis Stasi for I pass will market to floor

Anastasios C. Margaronis

all And in Ioannis. participants you, XXXX. Diana's for me, to first welcome warm a the Thank call also from earnings

the geopolitical call, are Clarksons the brought Canal seen the to on area about December the like to influence of attack running continue This of partially risks ourselves several is to According our to transits Suez I'd due of XX% bulker have lives. including important below earning. dry we events conference risk those consequent attention slide, operators, this On from and last to your owners first that to that avoiding seafarers mention last have half during an bulk increased year. result

This of some dry a transit same in average critically base around by limitations is Clarksons have Suez due factors trade another Canal XXXX. tonne-mile as bulk dry The the the the demand This levels forecast, at year increased draft for X is towards routes. Lake longer of disruption alternative less XX haul levels than at case X.X% decrease where restrictions X%. already water are Canal Panama meters. quarter Gatun, rate bulk uplift time to in full driving in factor estimated length This to comes assuming low

day most higher $XX,XXX around day per $XX,XXX the XXXX. of seen basis per we now Turning March rate are stands witnessing peak Kamsarmax rates Pacific and employment Today's with to is at $XX,XXX around $XX,XXX March delivery recent end XXXX. being charter per Capesize day the in the was of XX-month rate it time XX-month that at

XX-month day X reported those and rate months the higher XXXX. call. is last the per last For was March well in peak time ago charter per in earnings above again are These Ultramaxes, $XX,XXX $XX,XXX day rates our

and XXXX might a grow this X.X% usual X.X% is production for industrial year provides expected in returned to XXXX macroeconomic by optimistic this the growth production. X.X% to is for industrial GDP the positive are reasonably note, major area is in area for growth India in Turning XXXX. even next. grow now figures growth in growth several the XXXX. the and positive On anemic this is IMF is, this in The apart year projected GDP China another X.X% the grow grow Japan, and and expected economies finally forecasted where picture both growth considerations by from X.X% to XXXX. to X.X% and and in U.S. X.X% with by seeing of euro by X.X% that The has monthly XXXX. euro in to X.XX% forecast year by by future, year

fleet. net demand XXXX the of in X.X% supply growth building X.X% current to according modest schedule potential this and fleet may despite demand fall bulk suggest demolition balance projections of growth due the On regulations a aging and short and carrier for expected increased Clarksons of about to new delivery now, year that

there to However, environmentally a surplus from same in potential the support starts retrofit is These conference stronger sound demand-supply call a in also means mentioned strong They XXXX little last slower At time, time speeds are a the XXXX few other very were factors rates. technologies. for have so and that our today. tonnage and remain ratio the base. EST and

fleet Looking is to grow into dry is modest just to out by X.X% next bulk in grow year. a XXXX, by tonne but the trade expected X% forecast miles,

to the Clarksons under around and growth at with from X% overall, supported of XXXX. XXXX book existing bulk slow X% carrier steady fleet order projected So supply the the fleet to in just net sea X% in

to X.X% demand. next Commodore tonnes. Prior production the a XX.X Research, Starting production outside production China, to year-on-year. a On last June at World look a global X% production of billion on months basis. According gone increased steel X.XX by slide, up months year, X Steel by with according steel, basis we XX straight have year-on-year year-on-year basis, was on seen the China XX by last over falling steel most to months. the has tonnes steel for In China outside steel to recently, increased million last on

coal Seaborne X.X in sensitive increasing the iron by blast by steel marginally greener to thermal production billion by decline XXXX. contract green in X% is next and of ore XXXX global is about around fall trade key In from pressure X% is to expected a furnace trade policies. trade comes X% XXXX about projected this is X increase to in amid coking and end will coal and in trade iron about while coal Chinese peak expected to importing ore production. demand at remain further demand as under by of steady steel year projected some Seaborne comes X% XXXX tonnes pressure Seaborne alternatives tonnes under remain government year. transition steel as regions to to to by billion the modes coking XXXX, the in contract

even from in be port about time, plant energy coal at curb huge unlikely in any is come XX% could The in is replace to and while Thermal XXXX, to according This seen in domestic to Clarksons pressure likely Clarksons, imports same capacity. coal Chinese went coal to hydro power mix imports XXXX, further. generation inventory. wider the and renewable according in production global increase energy under to improvement placed improved the repeated expanding

other Vietnam, dramatically and and to expected Malaysia Examples not changes However, imports jumped that China's out year Thailand, in as companies. of overshadow in last a Braemar prompt demand X% US generation. Green and of about in sometimes much imports points India's coal factors for year. coal X% imports ease are where dramatic coal affecting are exports by last in to expected this potential reliable growth and XXXX due are year those power exports countries with by grow to to compared increase seen

For to they million even XXXX X% bulk increase XXXX, and are by tonnes. ending trade are a and The to more growth by in a expected XXXX, grow X.XX bulk further expected by billion reach minor macroeconomic minor potential note supported tonnes. expected and improvement. exports XXXX compared grow to after XXX by reach Clarksons X% In X% XXXX, on is reach to trade firm

XX, we side. Slide supply look at On the

Handymax Looking older, Panamax -- or XX% carrier of only category fall at age profile deadweight that fleet and the years deadweight for the fleet bulk by XX fleet, of the about XX% Capesize to XX% tonnes. by earnings X.X Scrapping of of the came continue might deadweight. fleet improve, about into is the years. to in to seen XX if level million back than older fall XXXX into This the year, million X.X they are about XXXX

the costs. The of across up by Kamsarmax, all ] XX%, back active XX-year-old bulker equivalent of new And around million. prices amid increase is the for Turning up XXXX, The by on and index by to Clarksons, million market. competition increased in asset and to USD X-month another over second-hand to building also labor that's gate [ of yard million. the space trend purchase XX% have up XX index According XX% increasing increased sale values. prices X% $XX.X was carrier sectors is price $XX the to XX% same about bulk continuously period. year-on-year price Ultramax Bulkers' for year vessel

fleet. million the order at the the the of order at end XX.X XX.X% Panamax According to of to equivalent deadweight, at Clarksons, existing about XXXX Looking book. stood briefly book

are XX.X equivalent numbers existing X.X% fleet. the of deadweight million the Capes, and For

book Handymaxes, million bulkers representing of trading is the of the trading XX.X about are which the For XX there million about Overall, at order X.X% deadweight, stands on worth X.X% of about the fleet. fleet. order, deadweight

period bulk the This market this market. Slide bullish rates year. FFA for enjoy of of overall outlook to doing strong in that activity for through has bulk as the is market our led dry is historically in jump the are continuing hedging time a to Turning the XX, industry. the remain Commodore Commodore phase in supports Research to The dry contracts market to that increasing, according Indian in factor economy so while and well, hydropower contraction. Research by charters. a positive bulk is imports of country coal dry time A the such output the remains

Dry for be of any and Commodore in volumes that be bulk commodities seen bulk to carrier should this Research from this last benefit by large reason XXXX. China purchasing year appetite reversed demand strong commodity global prices. see weakness no year, supported import was This in dry

though on that per retrofit CII, such predict through Clarksons made, annum assumptions regulations with and even to X% slower out X.X% emissions the would as speeds Finally, compliance reduce bulk available between vary supply predictions ESP depending XXXX and by EEXI and time.

uncertainties Clarksons that carrier Diana's to bulk government in And property policy facing policies. bulk and Chinese steady. growth policy remain the steel challenges advantage this sensitivity though the business chartering demand will dry and the sector any chartering on earnings. Chinese the demand remind us us upcoming of from allow and side with increase remains take to strategy energy

time, the always has While the been priority at the strength the remains top case. the balance as sheet of company's same

of now will our priorities the the future pass company's to I CEO, Thanks. call goals. Paliou, summary and Semiramis for

Semiramis Paliou

Thank you, Stasi.

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

Through opportunities we of securing capitalize and is generating cash the dedication to sheet, management our and on on positive prudent Firstly, flows. presented. aim active our free balance

sustainability our and Secondly, greener in enhancing environmental aligning and ecological responsibility. our our proactive renewing fleet, modernizing we with investments, are in footprint

a can much. striving to now maximize call operator long-term our to to turn will a offers for Q&A persists that the Thirdly, Thank shareholder -- you stability our cyclical in . We the while I value. very in strategy business dedication back session. adhering

Operator

is [Operator ]. question [ from coming first Securities Instructions] from [ Sky ] RX Our today Christopher

Unknown Analyst

good just of to I the balance wondering sheet thank this year-end. million offshore was and in investments that you And as of Congrats another quarter. venture. related if $XX.X securities on [indiscernible] comment on could Yes, you. is joint

Ioannis Zafirakis

an we do details that This have need We investment filing. It's do of material not disclose investment. have. to we to is a that enough not that the

cannot we unfortunately, So disclose.

Operator

or reached any to We closing I'd like to management end the our question-and-answer floor session. further comments. back the over of turn for

Semiramis Paliou

joining us seeing much you forward very earnings for Thank and next Thank you much. call. at very our today you to look

Operator

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

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

Diana Shipping (DSX) 23 Feb 242023 Q4 Earnings call transcript