Diana Shipping(DSX) - 2025 Q2 - Quarterly Report

Executive Summary & Financial Highlights Diana Shipping Inc. achieved significant financial improvement in Q2 and H1 2025, reporting net income and positive EPS, and declared a cash dividend Second Quarter 2025 Financial Performance Diana Shipping Inc. reported a significant turnaround in Q2 2025, achieving net income and positive EPS compared to a net loss in Q2 2024. Time charter revenues saw a slight decrease due to fewer ownership days, partially offset by higher average charter rates | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Change (YoY) | | :----------------------------------- | :------------ | :------------ | :----------- | | Net Income | $4.5 million | ($2.8 million) | +$7.3 million | | Net Income Attributable to Common Stockholders | $3.1 million | ($4.2 million) | +$7.3 million | | Earnings Per Share (Basic & Diluted) | $0.03 | ($0.04) | +$0.07 | | Time Charter Revenues | $54.7 million | $56.0 million | -$1.3 million (-2.3%) | - The decrease in time charter revenues was primarily due to decreased ownership days, partly offset by increased average charter rates[2] Six Months Ended June 30, 2025 Financial Performance For the first half of 2025, the Company also reported net income and positive EPS, a substantial improvement from a net loss in the prior year period. Time charter revenues for the six months decreased slightly | Metric | H1 2025 (USD) | H1 2024 (USD) | Change (YoY) | | :----------------------------------- | :------------ | :------------ | :----------- | | Net Income | $7.5 million | ($0.7 million) | +$8.2 million | | Net Income Attributable to Common Stockholders | $4.7 million | ($3.6 million) | +$8.3 million | | Earnings Per Share (Basic & Diluted) | $0.04 | ($0.03) | +$0.07 | | Time Charter Revenues | $109.6 million | $113.6 million | -$4.0 million (-3.5%) | Dividend Declaration The Company declared a cash dividend of $0.01 per common share for Q2 2025, payable in September 2025 - A cash dividend of $0.01 per common share was declared for the quarter ended June 30, 2025[4] - The dividend is payable on September 11, 2025, to shareholders of record as of August 21, 2025[4] | Metric | Value (as of July 29, 2025) | | :-------------------------------- | :-------------------------- | | Common Shares Issued and Outstanding | 115,775,463 | | Outstanding Warrants | 16,211,330 | Fleet Employment Overview This section details the Company's dry bulk carrier fleet composition, including vessel types, operational status, and recent changes like vessel sales or drydocking schedules Fleet Details (As of July 29, 2025) As of July 29, 2025, Diana Shipping Inc. operates a diverse fleet of dry bulk carriers, including Ultramax, Panamax, Kamsarmax, Post-Panamax, Capesize, and Newcastlemax vessels. The report provides detailed charter information for each vessel, including daily rates, charterers, and redelivery dates - The fleet includes 9 Ultramax, 6 Panamax, 6 Kamsarmax, 4 Post-Panamax, 8 Capesize, and 4 Newcastlemax bulk carriers[5][7] - Vessel 'SELINA' was sold and delivered to new owners on July 15, 2025[9] - Several vessels are currently undergoing scheduled drydocking or are off-hire, including DSI Pegasus, LETO, SELINA, NEW YORK, and NEW ORLEANS[9][10] Summary of Selected Financial & Other Data This section provides a concise overview of key financial and operational metrics, highlighting improved profitability, changes in fleet size and age, and enhanced daily earnings Income Statement Data The summary financial data shows improved net income for both the quarter and six months ended June 30, 2025, compared to losses in the prior year. Time charter revenues decreased, while voyage and vessel operating expenses also saw slight reductions | Metric (in thousands of USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Time charter revenues | 54,688 | 56,000 | 109,625 | 113,648 | | Voyage expenses | 3,114 | 3,145 | 6,064 | 6,413 | | Vessel operating expenses | 20,012 | 21,269 | 39,962 | 42,133 | | Net income/(loss) | 4,542 | (2,764) | 7,539 | (706) | | Net income/(loss) attributable to common stockholders | 3,100 | (4,206) | 4,655 | (3,590) | Fleet Operational Data The Company's fleet size decreased from 39 to 37 vessels, leading to fewer ownership and available days. The weighted average age of vessels increased slightly, while fleet utilization remained high | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------- | :------ | :------ | :------ | :------ | | Average number of vessels | 37.0 | 39.0 | 37.4 | 39.4 | | Number of vessels | 37.0 | 39.0 | 37.0 | 39.0 | | Weighted average age of vessels | 11.7 | 10.9 | 11.7 | 10.9 | | Ownership days | 3,367 | 3,549 | 6,768 | 7,162 | | Available days | 3,329 | 3,499 | 6,632 | 7,112 | | Operating days | 3,312 | 3,496 | 6,602 | 7,078 | | Fleet utilization | 99.5% | 99.9% | 99.5% | 99.5% | Average Daily Results Average daily Time Charter Equivalent (TCE) rates increased for both the quarter and six-month periods, indicating improved daily earnings. Daily vessel operating expenses remained relatively stable | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Time charter equivalent (TCE) rate | $15,492 | $15,106 | $15,615 | $15,078 | | Daily vessel operating expenses | $5,944 | $5,993 | $5,905 | $5,883 | Non-GAAP Measures This section defines and explains the calculation and management's use of key non-GAAP financial measures, including Time Charter Equivalent (TCE) rate and Daily Vessel Operating Expenses Time Charter Equivalent (TCE) Rate TCE rate is a non-GAAP measure calculated as time charter revenues less voyage expenses divided by available days. It is used by management to compare daily earnings and assess vessel profitability - TCE rate is defined as time charter revenues less voyage expenses divided by the number of available days[13] - Management uses TCE to assess and compare vessels' profitability and to compare daily earnings from time charters with voyage charters[13] Daily Vessel Operating Expenses Daily vessel operating expenses include crew wages, insurance, repairs, maintenance, spares, and tonnage taxes, calculated by dividing total vessel operating expenses by ownership days - Daily vessel operating expenses include crew wages, insurance, repairs, maintenance, spares, consumable stores, tonnage taxes, and other miscellaneous expenses[14] - These expenses are calculated by dividing total vessel operating expenses by ownership days for the relevant period[14] Detailed Financial Statements This section presents the unaudited consolidated statements of comprehensive income, balance sheet, and cash flow, detailing the Company's financial position and performance for the periods presented Unaudited Consolidated Statements of Comprehensive Income/(Loss) The detailed income statement shows a shift from net loss to net income for both the second quarter and six months ended June 30, 2025. Key changes include a significant gain on related party investments and warrants in 2025, contrasting with losses in 2024, contributing to the improved profitability despite a slight decrease in time charter revenues | Metric (in thousands of USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Time charter revenues | 54,688 | 56,000 | 109,625 | 113,648 | | Operating income, total | 10,424 | 12,156 | 24,031 | 27,562 | | Interest expense and finance costs | (10,812) | (11,594) | (21,890) | (23,650) | | Gain/(loss) on related party investments | 3,540 | (3,467) | 2,482 | (1,351) | | Gain/(loss) on warrants | 474 | (2,090) | 515 | (6,773) | | Net income/(loss) | 4,542 | (2,764) | 7,539 | (706) | | Earnings/(loss) per common share, basic and diluted | 0.03 | (0.04) | 0.04 | (0.03) | - Total other expenses, net, significantly decreased from $(14,920) thousand in Q2 2024 to $(5,882) thousand in Q2 2025, and from $(28,268) thousand in H1 2024 to $(16,492) thousand in H1 2025, largely due to gains on related party investments and warrants[24] - Comprehensive Income/(loss) improved from a loss of $(2,764) thousand in Q2 2024 to an income of $7,750 thousand in Q2 2025, and from a loss of $(706) thousand in H1 2024 to an income of $10,747 thousand in H1 2025, including currency translation adjustments[24] Condensed Consolidated Balance Sheet Data The balance sheet as of June 30, 2025, shows a decrease in total assets and total stockholders' equity compared to December 31, 2024. Cash and cash equivalents, along with long-term debt, also decreased | Metric (in thousands of USD) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------- | :------------ | :---------------- | | Cash, cash equivalents, restricted cash and time deposits | $149,598 | $207,166 | | Investments in equity securities | $24,353 | - | | Total assets | $1,131,215 | $1,171,018 | | Long-term debt and finance liabilities, net | $610,207 | $637,525 | | Total stockholders' equity | $492,842 | $505,057 | | Total liabilities and stockholders' equity | $1,131,215 | $1,171,018 | - Cash, cash equivalents, restricted cash, and time deposits decreased by approximately $57.6 million from December 31, 2024, to June 30, 2025[25] - The Company reported $24.353 million in investments in equity securities as of June 30, 2025, which were not present at the end of 2024[25] Other Financial Data (Cash Flow) Cash flow from operating activities decreased significantly for both the quarter and six-month periods. Investing activities shifted from providing cash in Q2 2024 to using cash in Q2 2025, while financing activities continued to use cash | Metric (in thousands of USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------------- | :------ | :------ | :------ | :------ | | Net cash provided by operating activities | $8,623 | $11,218 | $25,835 | $49,183 | | Net cash provided by/(used in) investing activities | ($39,877) | $7,425 | ($29,333) | ($13,624) | | Net cash used in financing activities | ($16,801) | ($20,576) | ($56,570) | ($37,110) | - Net cash provided by operating activities decreased by approximately 23% in Q2 2025 YoY and by approximately 47% in H1 2025 YoY[28] - Investing activities shifted from a net cash inflow of $7.425 million in Q2 2024 to a net cash outflow of $39.877 million in Q2 2025[28] Corporate Information This section provides an overview of Diana Shipping Inc.'s business, details for the upcoming conference call and webcast, and a cautionary statement regarding forward-looking information About the Company Diana Shipping Inc. is a global provider of dry bulk shipping transportation services, primarily employing its vessels on short to medium-term time charters for various dry bulk cargoes - Diana Shipping Inc. specializes in the ownership and bareboat charter-in of dry bulk vessels[17] - Vessels are primarily used for short to medium-term time charters, transporting commodities like iron ore, coal, and grain globally[17] Conference Call and Webcast Information The Company's management will host a conference call and webcast on July 30, 2025, to discuss the financial results, with replay options available for 30 days - A conference call and webcast to review results will be held on Wednesday, July 30, 2025, at 9:00 A.M. (Eastern Time)[14] - Access to the webcast and an accompanying investor presentation is available via the Company's website[15] - A replay of the webcast and telephone replay will be available for 30 days post-call[16] Cautionary Statement Regarding Forward-Looking Statements This section highlights that the press release contains forward-looking statements, which are subject to significant uncertainties and risks beyond the Company's control. Factors such as global economic conditions, charter rate fluctuations, operating expenses, and geopolitical events could cause actual results to differ materially - The press release includes forward-looking statements, protected by the Private Securities Litigation Reform Act of 1995[18][19] - These statements are based on assumptions that are inherently subject to significant uncertainties and contingencies, making future achievements uncertain[21] - Key risks include global economic strength, fluctuations in charter rates and vessel values, changes in demand, operating expenses, financing availability, regulatory changes, and geopolitical conflicts (e.g., Russia-Ukraine, Middle East)[22]