Diana Shipping Inc. Reports Financial Results for the First Quarter Ended March 31, 2024; Declares Cash Dividend of $0.075 Per Common Share for the First Quarter 2024

Rhea-AI Summary

Diana Shipping (NYSE: DSX) announced its first-quarter 2024 financial results. The company reported a net income of $2.1 million, compared to $22.7 million in Q1 2023. Net income attributable to common stockholders was $0.6 million, down from $21.3 million. Earnings per share (EPS) decreased to $0.01 from $0.22. Time charter revenues fell to $57.6 million from $72.6 million, due to lower average charter rates and ownership days. A $0.075 per share cash dividend was declared, payable on June 18, 2024. The fleet comprised 39 vessels, with an average age of 10.7 years. The company's TCE rate decreased to $15,051 from $18,503. Vessel operating expenses rose slightly to $5,775 per day from $5,396.

Positive

• Net income of $2.1 million for Q1 2024.
• EPS of $0.01 for Q1 2024.
• Declared cash dividend of $0.075 per share for Q1 2024.
• Fleet utilization remained high at 99.1%.

Negative

• Net income attributable to common stockholders decreased to $0.6 million from $21.3 million in Q1 2023.
• EPS dropped significantly from $0.22 to $0.01.
• Time charter revenues fell from $72.6 million to $57.6 million.
• Decreased average charter rates and ownership days.
• Vessel operating expenses increased to $5,775 per day from $5,396.

Insights

Financial Analyst

Diana Shipping Inc.'s first-quarter financial results show a significant decline in both net income and time charter revenues year-over-year. The net income for Q1 2024 is reported at $2.1 million, a stark drop from $22.7 million in Q1 2023. This highly contrasts with the significant decrease in net income attributed to common stockholders from $21.3 million to merely $0.6 million. The earnings per share (EPS) also reflect this downward trend, falling from $0.22 to $0.01. These results indicate issues such as decreased average charter rates and reduced ownership days, directly impacting revenue streams. Analyzing these metrics, it’s evident that the company is facing challenges in maintaining its income levels, likely due to market conditions or operational inefficiencies.

The cash dividend declaration of $0.075 per share, while a positive move to maintain investor confidence, might not be sufficient to offset concerns regarding the notable earnings dip. Investors should closely monitor the company's strategies to counteract these issues in upcoming quarters and the impact on longer-term financial health.

The company's fleet employment data also reveals a mixed picture, with varied gross rates across different vessels and time periods. Given the high volatility in charter rates and operational days, the future revenue generation ability remains uncertain.

Market Research Analyst

The bulk shipping market is often influenced by global trade dynamics, including commodity demand and supply chain disruptions. Diana Shipping Inc.'s performance suggests it is navigating a tough market characterized by lower average charter rates and a slight decrease in the number of vessels. These factors are likely contributing to the reduced time charter revenues from $72.6 million to $57.6 million year-over-year.

Analyzing the fleet utilization rate, which remains high at 99.1%, indicates operational efficiency. However, the weighted average age of vessels is slightly increasing, potentially leading to higher maintenance costs and affecting profitability.

For retail investors, understanding these nuances is crucial. The company’s resilience in a possibly downturn market can reflect on share values. Nevertheless, the decrease in TCE rates from $18,503 to $15,051 signifies potential revenue stress, warranting cautious optimism.

ATHENS, Greece, May 28, 2024 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, today reported net income of $2.1 million and net income attributed to common stockholders of $0.6 million for the first quarter of 2024. This compares to net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023. Earnings per share for the first quarter of 2024 was $0.01 basic and diluted, compared to earnings per share of $0.22 basic and diluted in the same quarter of 2023.

Time charter revenues were $57.6 million for the first quarter of 2024, compared to $72.6 million for the same quarter of 2023. The decrease in time charter revenues, compared to the same quarter of last year, was due to decreased average charter rates and ownership days.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.075 per share, based on the Company’s results of operations during the first quarter ended March 31, 2024. The cash dividend will be payable on or about June 18, 2024 to all common shareholders of record as of June 12, 2024. The Company currently has 120,321,240 common shares issued and outstanding. As of May 20, 2024, there were 3,284,372 warrants exercised.

Q2 2024 Fleet Employment (As of May 27, 2024)
	VESSEL		SISTER SHIPS*	GROSS RATE (USD PER DAY)	COM**		CHARTERERS	DELIVERY DATE TO CHARTERERS***	REDELIVERY DATE TO OWNERS****	NOTES
	BUILT DWT
9 Ultramax Bulk Carriers
1	DSI Phoenix		A	13,250	5.00	%	ASL Bulk Marine Limited	4-Nov-22	6-May-24
	2017 60,456			16,500	5.00	%	Bulk Trading SA	6-May-24	1/Aug/2025 - 30/Sep/2025
2	DSI Pollux		A	14,000	4.75	%	Cargill Ocean Transportation (Singapore) Pte. Ltd.	28-Dec-23	20/Aug/2025 - 20/Oct/2025
	2015 60,446
3	DSI Pyxis		A	14,250	5.00	%	ASL Bulk Marine Limited	24-Sep-23	10/Oct/2024 - 10/Dec/2024
	2018 60,362
4	DSI Polaris		A	13,100	5.00	%	ASL Bulk Marine Limited	12-Nov-22	15/Jun/2024 - 29/Jul/2024	1
	2018 60,404
5	DSI Pegasus		A	14,000	5.00	%	Reachy Shipping (SGP) Pte. Ltd.	7-Dec-22	15/Jul/2024 - 15/Sep/2024
	2015 60,508
6	DSI Aquarius		B	14,200	5.00	%	Engelhart CTP Freight (Switzerland) SA	1-Feb-23	18-Jan-24
	2016 60,309			14,500	5.00	%	Stone Shipping Ltd	18-Jan-24	1/Dec/2024 - 1/Feb/2025
7	DSI Aquila		B	12,500	5.00	%	Western Bulk Carriers AS	11-Nov-23	10/Nov/2024 - 10/Jan/2025
	2015 60,309
8	DSI Altair		B	13,800	5.00	%	Western Bulk Carriers AS	23-Jun-23	10/Aug/2024 - 10/Oct/2024
	2016 60,309
9	DSI Andromeda		B	13,500	5.00	%	Bunge SA, Geneva	27-Nov-23	20/Feb/2025 - 20/Apr/2025	2,3
	2016 60,309
6 Panamax Bulk Carriers
10	ARTEMIS			12,000	5.00	%	Jera Global Markets Pte. Ltd.	14-Oct-23	23-Feb-24	4
	2006 76,942
11	LETO			14,500	4.75	%	Cargill International S.A., Geneva	29-Jan-23	3-May-24
	2010 81,297			16,000	5.00	%	ASL Bulk Shipping Limited	3-May-24	1/Mar/2025 - 30/Apr/2025
12	SELINA		C	12,000	4.75	%	Cargill International S.A., Geneva	20-May-23	15/Sep/2024 - 15/Nov/2024
	2010 75,700
13	MAERA		C	12,000	4.75	%	Cargill International S.A., Geneva	16-Dec-22	29-Jan-24	5
	2013 75,403			13,750	5.00	%	ST Shipping and Transport Pte. Ltd.	29-Jan-24	20/Nov/2024 - 20/Jan/2025
14	ISMENE			12,650	5.00	%	Paralos Shipping Pte., Ltd.	13-Sep-23	15/Apr/2025 - 30/Jun/2025
	2013 77,901
15	CRYSTALIA		D	11,250	5.00	%	Reachy Shipping (SGP) Pte. Ltd.	6-Sep-23	13-Apr-24	6
	2014 77,525			13,900	5.00	%	Louis Dreyfus Company Freight Asia Pte. Ltd.	4-May-24	4/Feb/2026 - 4/Jun/2026
16	ATALANDI		D	13,250	4.75	%	Aquavita International S.A.	15-Feb-23	29-Apr-24	7
	2014 77,529			15,800	5.00	%	Quadra Commodities SA	28-May-24	22-Jul-24	8,9
6 Kamsarmax Bulk Carriers
17	MAIA		E	13,500	5.00	%	ST Shipping and Transport Pte. Ltd.	23-Sep-23	15/Jun/2024 - 20/Aug/2024
	2009 82,193
18	MYRSINI		E	15,000	5.00	%	Salanc Pte. Ltd.	22-Nov-22	20/Jun/2024 - 28/Jun/2024	1
	2010 82,117
19	MEDUSA		E	14,250	5.00	%	ASL Bulk Shipping Limited	14-May-23	10/Feb/2025 - 15/Apr/2025
	2010 82,194
20	MYRTO		E	12,650	5.00	%	Cobelfret S.A., Luxemburg	15-Jul-23	1/Nov/2024 - 15/Jan/2025
	2013 82,131
21	ASTARTE			15,000	5.00	%	Reachy Shipping (SGP) Pte. Ltd.	29-Apr-23	1/Aug/2024 - 1/Oct/2024
	2013 81,513
22	LEONIDAS P. C.			17,000	4.75	%	Cargill International S.A., Geneva	17-Mar-23	22-Feb-24	10
	2011 82,165			17,000	5.00	%	Ming Wah International Shipping Company Limited	22-Feb-24	20/Aug/2025 - 20/Oct/2025
5 Post-Panamax Bulk Carriers
23	ALCMENE			13,000	5.00	%	SwissMarine Pte. Ltd., Singapore	2-Jan-23	23-Mar-24
	2010 93,193			16,000	5.00	%	Triangle Merchant Maritime Co., Limited	24-Mar-24	1-Jun-24	1,11
24	AMPHITRITE		F	14,250	5.00	%	Cobelfret S.A., Luxembourg	9-Nov-22	13-Jan-24
	2012 98,697			15,000				13-Jan-24	15/Nov/2024 - 15/Jan/2025	12
25	POLYMNIA		F	15,000	5.00	%	Cobelfret S.A., Luxemburg	14-Jan-23	5-Jun-24	1,13
	2012 98,704
26	ELECTRA		G	14,500	5.00	%	Cobelfret S.A., Luxemburg	13-Apr-23	2/Jun/2024 - 30/Jun/2024	1
	2013 87,150
27	PHAIDRA		G	12,250	4.75	%	Aquavita International S.A.	9-May-23	1/Sep/2024 - 15/Nov/2024
	2013 87,146
9 Capesize Bulk Carriers
28	SEMIRIO		H	14,150	5.00	%	Solebay Shipping Cape Company Limited, Hong Kong	18-Aug-23	20/Nov/2024 - 30/Jan/2025
	2007 174,261
29	HOUSTON		H	13,000	5.00	%	EGPN Bulk Carrier Co., Limited	21-Nov-22	1/Jul/2024 - 31/Aug/2024	14
	2009 177,729
30	NEW YORK		H	16,000	5.00	%	SwissMarine Pte. Ltd., Singapore	11-Jun-23	1/Oct/2024 - 7/Dec/2024
	2010 177,773
31	SEATTLE		I	17,500	5.00	%	Solebay Shipping Cape Company Limited, Hong Kong	1-Oct-23	15/Jul/2025 - 30/Sep/2025
	2011 179,362
32	P. S. PALIOS		I	31,000	5.00	%	Classic Maritime Inc.	11-Jun-22	7-May-24
	2013 179,134			27,150	5.00	%	Bohai Shipping (HEBEI) Co., Ltd	7-May-24	1/Nov/2025 - 31/Dec/2025
33	G. P. ZAFIRAKIS		J	17,000	5.00	%	Solebay Shipping Cape Company Limited, Hong Kong	12-Jan-23	15/Jun/2024 - 15/Aug/2024
	2014 179,492
34	SANTA BARBARA		J	21,250	5.00	%	Smart Gain Shipping Co., Limited	7-May-23	10/Oct/2024 - 10/Dec/2024	15
	2015 179,426
35	NEW ORLEANS			20,000	5.00	%	Kawasaki Kisen Kaisha, Ltd.	7-Dec-23	15/Aug/2025 - 31/Oct/2025	15,16
	2015 180,960
36	FLORIDA			25,900	5.00	%	Bunge S.A., Geneva	29-Mar-22	29/Jan/2027 - 29/May/2027	3
	2022 182,063
4 Newcastlemax Bulk Carriers
37	LOS ANGELES		K	17,700	5.00	%	Nippon Yusen Kabushiki Kaisha, Tokyo	15-Jan-23	15/Jun/2024 - 5/Aug/2024
	2012 206,104
38	PHILADELPHIA		K	26,000	5.00	%	C Transport Maritime Ltd., Bermuda	12-Apr-22	4-Feb-24
	2012 206,040			22,500	5.00	%	Nippon Yusen Kabushiki Kaisha, Tokyo	4-Feb-24	20/Apr/2025 - 20/Jul/2025
39	SAN FRANCISCO		L	22,000	5.00	%	SwissMarine Pte. Ltd., Singapore	18-Feb-23	5/Jan/2025 - 5/Mar/2025
	2017 208,006
40	NEWPORT NEWS		L	20,000	5.00	%	Nippon Yusen Kabushiki Kaisha, Tokyo	20-Sep-23	10/Mar/2025 - 10/Jun/2025
	2017 208,021
* Each dry bulk carrier is a “sister ship”, or closely similar, to other dry bulk carriers that have the same letter.
** Total commission percentage paid to third parties.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
1Based on latest information.
2The fixture includes the option for redelivery of vessel east of Suez against a gross ballast bonus of US$250,000.
3Bareboat chartered-in for a period of ten years.
4Vessel has been sold and delivered to her new Owners on March 5, 2024.
5Charterers will compensate the Owners at a rate of 105% of the Baltic Panamax Index 5 TC average as published by the Baltic Exchange on a daily basis or the vessel’s present charter party rate, whichever is higher, for the excess period commencing from December 29, 2023 until the actual redelivery date.
6Vessel on scheduled drydocking during the period from April 15, 2024 to May 4, 2024.
7Vessel on scheduled drydocking during the period from April 29, 2024 to May 28, 2024.
8Estimated delivery date to the Charterers.
9Redelivery date based on an estimated time charter trip duration of about 55 days.
10Vessel off hire for 5.93 days.
11Redelivery date based on an estimated time charter trip duration of about 70 days.
12The charter rate will be US$12,250 per day for the first 30 days of the charter period.
13The charter rate was US$10,000 per day for the first 30 days of the charter period.
14Vessel has been sold and it is expected to be delivered to her new Owners by latest September 16, 2024.
15Bareboat chartered-in for a period of eight years.
16Vessel off hire for 7.43 days.

Summary of Selected Financial & Other Data (unaudited)
			Three months ended March 31,
			2024			2023
STATEMENT OF INCOME DATA (in thousands of US Dollars)
	Time charter revenues	$	57,648		$	72,642
	Voyage expenses		3,268			3,811
	Vessel operating expenses		20,864			20,164
	Net income		2,058			22,713
	Net income attributable to common stockholders		616			21,271
FLEET DATA
	Average number of vessels		39.7			41.5
	Number of vessels		39.0			41.0
	Weighted average age of vessels		10.7			10.0
	Ownership days		3,613			3,737
	Available days		3,613			3,720
	Operating days		3,582			3,699
	Fleet utilization		99.1	%		99.4	%
AVERAGE DAILY RESULTS
	Time charter equivalent (TCE) rate (1)	$	15,051		$	18,503
	Daily vessel operating expenses (2)	$	5,775		$	5,396

Non-GAAP Measures

(1)	Time charter equivalent rates, or TCE rates, are defined as our time charter revenues less voyage expenses during a period divided by the number of available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses or gain, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.
(2)	Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.

Conference Call and Webcast Information

The Company’s management will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Tuesday, May 28, 2024.

Investors may access the webcast by visiting the Company’s website at www.dianashippinginc.com, and clicking on the webcast link. An accompanying investor presentation also will be available via the webcast link and on the Company’s website. The conference call also may be accessed by telephone by dialing 1-877-407-8291 (for U.S.-based callers) or 1-201-689-8345 (for international callers) and asking the operator for the Diana Shipping Inc. conference call.

A replay of the webcast will be available soon after the completion of the call and will be accessible for 30 days on www.dianashippinginc.com. A telephone replay also will be available for 30 days by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers) and providing the Replay ID number 13746383.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership and bareboat charter-in of dry bulk vessels. The Company’s vessels are employed primarily on short to medium-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, including the escalation of the conflict in the Middle East, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

(See financial tables attached)

DIANA SHIPPING INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except share and per share data
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
			Three months ended March 31,
			2024			2023
REVENUES:
	Time charter revenues	$	57,648		$	72,642
OPERATING EXPENSES
	Voyage expenses		3,268			3,811
	Vessel operating expenses		20,864			20,164
	Depreciation and amortization of deferred charges		11,102			13,254
	General and administrative expenses		8,533			7,682
	Management fees to a related party		333			315
	Gain on sale of vessels		(1,572	)		(4,995	)
	Other operating income		(285	)		(210	)
	Operating income, total	$	15,405		$	32,621
OTHER INCOME / (EXPENSES):
	Interest expense and finance costs		(12,056	)		(11,658	)
	Interest and other income		1,736			1,774
	Gain on derivative instruments		338			-
	Loss on extinguishment of debt		-			(44	)
	Gain on investments		1,716			-
	Loss on warrants		(4,684	)		-
	Gain/(loss) from equity method investments		(397	)		20
	Total other expenses, net	$	(13,347	)	$	(9,908	)
Net income and comprehensive income		$	2,058		$	22,713
Dividends on series B preferred shares			(1,442	)		(1,442	)
Net income and comprehensive income attributable to common stockholders			616			21,271
Earnings per common share, basic		$	0.01		$	0.22
Earnings per common share, diluted		$	0.01		$	0.22
Weighted average number of common shares outstanding, basic			110,330,456			97,323,011
Weighted average number of common shares outstanding, diluted			111,378,871			98,500,961

CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands of U.S. Dollars)
			March 31, 2024		December 31, 2023*
ASSETS			(unaudited)
Cash, cash equivalents, restricted cash and time deposits		$	161,974**	$	161,592**
Investments in equity securities			-		20,729
Other current assets			41,993		19,900
Fixed assets			904,007		924,474
Investments in related parties and equity method investments			41,266		24,087
Other noncurrent assets			14,123		15,628
	Total assets	$	1,163,363	$	1,166,410
LIABILITIES AND STOCKHOLDERS' EQUITY
Long-term debt and finance liabilities, net of deferred financing costs		$	628,148	$	642,772
Other liabilities			38,827		34,617
Total stockholders' equity			496,388		489,021
	Total liabilities and stockholders' equity	$	1,163,363	$	1,166,410
*	The balance sheet data have been derived from the audited consolidated financial statements at that date.
**	Includes time deposits of $40 million as of March 31, 2024 and December 31, 2023, respectively

OTHER FINANCIAL DATA (unaudited)
		Three months ended March 31,
		2024			2023
Net cash provided by operating activities	$	37,965		$	33,196
Net cash used in investing activities		(21,049	)		(10,645	)
Net cash used in financing activities	$	(16,534	)	$	(50,799	)

FAQ

What were Diana Shipping's net income and EPS for Q1 2024?

Diana Shipping reported a net income of $2.1 million and an EPS of $0.01 for Q1 2024.

How did Diana Shipping's Q1 2024 net income compare to Q1 2023?

The net income decreased significantly from $22.7 million in Q1 2023 to $2.1 million in Q1 2024.

What was Diana Shipping's time charter revenue for Q1 2024?

Time charter revenue for Q1 2024 was $57.6 million.

What is the cash dividend declared by Diana Shipping for Q1 2024?

Diana Shipping declared a cash dividend of $0.075 per share for Q1 2024.

How many vessels did Diana Shipping have in Q1 2024?

Diana Shipping had a fleet of 39 vessels in Q1 2024.

What was the TCE rate for Diana Shipping in Q1 2024?

The TCE rate for Q1 2024 was $15,051.

When is the dividend payable for Diana Shipping's Q1 2024 results?

The dividend is payable on June 18, 2024.