Diana Shipping(DSX) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Time charter revenues for Q1 2025 were $54.9 million, a decrease of about 5% compared to $57.6 million in Q1 2024, attributed to a smaller fleet size and increased drydock days [14] - Adjusted EBITDA decreased to $23.3 million from $24.9 million in Q1 2024, a decrease of 6% [15] - Net income increased to $3 million from $2.1 million in Q1 2024, mainly due to decreased interest and finance charges [15] - Cash reserves decreased to $187.7 million from $207.2 million at the end of 2024 [16] - Long-term debt decreased to $623.9 million from $637.5 million, reflecting a 2% reduction [16] Business Line Data and Key Metrics Changes - Fleet utilization reached 99.6% in Q1 2025, up from 99.1% in the same quarter last year [19] - The average time charter equivalent rate was $50,739 per day, an increase of 5% compared to $15,051 per day in Q1 2024 [17][18] - Daily operating expenses increased by 2% to $5,866 per day compared to $5,775 per day in Q1 2024 [19] Market Data and Key Metrics Changes - The dry bulk market has shown dull performance in 2025, with new building vessel contracting slumping to only 0.1% of the global fleet [5][6] - The overall market levels remain historically healthy, but sentiment is lacking despite stable cargo volumes compared to 2024 [5] - Time charter rates for Capes dropped from a high of $35,000 per day in March 2024 to about $19,000 per day as of May 2025 [25] Company Strategy and Development Direction - The company focuses on a disciplined chartering strategy to ensure earnings visibility and resilience against market downturns [12][18] - Ongoing fleet modernization efforts include the sale of older vessels and investment in new joint ventures [8][10] - The company aims to leverage market volatility to deliver stable earnings through its commercial strategy [18] Management Comments on Operating Environment and Future Outlook - Management noted that the market is facing significant geopolitical and economic uncertainties, impacting sentiment and charter rates [5][24] - Despite current challenges, the company believes it is well-positioned with a strong balance sheet and predictable cash flows to navigate through cycles [22] - Future growth is expected to be influenced by macroeconomic conditions, with a cautious outlook for 2025 and 2026 [40][41] Other Important Information - The company declared a quarterly cash dividend of $0.01 per common share, totaling approximately $1.2 million [11] - The company has raised $25.6 million from the exercise of warrants under an ongoing program [10] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may not have included detailed inquiries or responses. The management concluded the call without further comments [45][46]