Diana Shipping(US:DSX)2025-11-20 15:02Financial Data and Key Metrics Changes - Time charter revenues for Q3 2025 were $51.9 million, down from $57.5 million in the same quarter last year, reflecting the sale of two vessels earlier this year and one vessel in September 2024 [9] - Adjusted EBITDA decreased to $20.3 million from $23.7 million year-over-year, consistent with a smaller fleet [9] - Net income nearly doubled to $7.2 million from $3.7 million in Q3 2024, driven by lower expenses and a $10.6 million gain from the valuation of the investment in Genco [10] - Cash decreased to $133.9 million as of September 30, 2025, from $207.2 million at the end of 2024, due to strategic investments [10] - Long-term debt increased slightly to $651.1 million as of September 30, 2025, from $637.5 million at year-end 2024 [11] Business Line Data and Key Metrics Changes - Fleet utilization reached 99.5% for Q3 2025, highlighting effective vessel management [4] - Time charter equivalent averaged $15,178 per day, a 1% decrease compared to $15,333 per day in Q3 2024 due to softer charter rates [11] - Vessel operating expenses decreased by 6% to $20 million compared to $21.2 million in Q3 2024, attributed to the smaller fleet size [12] Market Data and Key Metrics Changes - The dry bulk market showed solid performance in Q3, with record Chinese imports reaching nearly 580 million metric tons [3] - The 12-month time charter rate for a typical Cape was around $24,000 a day, up from earlier in the year [17] - The bulk carrier fleet is forecasted to grow by 3.1% this year and by 3.4% in 2026, with the Cape segment projected to increase by only 1.4% in 2025 [24] Company Strategy and Development Direction - The company is focused on a disciplined chartering strategy, securing approximately $149 million in contracted revenues with an average time charter rate of $16,200 per day [7] - Ongoing fleet modernization efforts include the delivery of two methanol dual-fuel new-building Kamsarmax dry bulk vessels expected at the end of 2027 and early 2028 [4] - The company is committed to ESG initiatives, promoting eco-friendly technologies and modernizing the fleet [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the bulk carrier market has weathered geopolitical and trade developments well, with positive sentiment and new building orders appearing [17][18] - The outlook for 2026 appears positive, with potential revenues projected to reach $224.7 million at an average time charter rate of $17,102 per day [15] - Management emphasized the importance of proactive debt management and liquidity actions to provide resilience for future opportunities [16] Other Important Information - The company declared a quarterly cash dividend of $0.01 per common share for Q3 2025, totaling approximately $1.16 million [6] - The average age of the fleet is approximately 12 years, with a total deadweight capacity of about 4.1 million tons [4] Q&A Session Summary Question: What is the company's strategy regarding its stake in Genco? - Management stated that the position in Genco has strategic value, and they are currently observing developments without direct contact with Genco's management [36] Question: What is the current holding in OceanPal? - Management indicated that Diana Shipping's interest in OceanPal is minimal and not material at this stage [38]