Diana Shipping Q2 Earnings Call Highlights

Diana Shipping NYSE: DSX reported higher second-quarter revenue, earnings and adjusted EBITDA as improved charter rates, lower interest expense and gains on equity securities supported profitability.

For the quarter ended June 30, 2026, time charter revenue rose to $57.3 million from $54.7 million a year earlier. Net income increased to $20.8 million from $4.5 million, while net income attributable to common shareholders rose to $19.3 million from $3.1 million. Diluted earnings per common share were $0.16, compared with $0.03 in the prior-year quarter.

Adjusted EBITDA increased to $24.3 million from $22 million in the second quarter of 2025. Co-CFO and Treasurer Maria Dede said results benefited from a higher time-charter-equivalent rate, lower interest expense amid debt reduction and lower average interest rates, as well as increased dividend income and a significant gain on equity securities.

Fleet Performance and Financial Position

The dry bulk shipowner operated an average of 36 vessels during the quarter, compared with 37 vessels in the prior-year period, reflecting the impact of a vessel sale completed last year. Its fleet generated a time-charter-equivalent rate of $16,581 per day, up 7% from $15,492 per day a year earlier, while fleet utilization was 99.6%.

Vessel operating expenses rose to $21 million from $20 million. Daily operating expenses increased to $6,396 from $5,944, which Dede attributed to higher crew-related expenses, stores, repairs and maintenance costs.

For the first six months of 2026, time charter revenue increased to $112 million from $109.6 million in the prior-year period. The fleet's time-charter-equivalent rate rose 4% to $16,309 per day, while utilization improved to 99.8% from 99.5%.

At June 30, the company had $117.9 million in cash equivalents and restricted cash. Long-term debt and finance liabilities, net of deferred financing costs, declined to $606.1 million from $636.1 million at the end of 2025. The company said the reduction reflected scheduled debt amortization.

Diana Shipping's fleet consisted of 36 dry bulk vessels with approximately 4.1 million tons of carrying capacity and an average age of 12.5 years. The company expects to take delivery of two methanol dual-fuel Kamsarmax newbuildings at the end of 2027 and in early 2028.

Chartering Coverage and Dividend

As of July 22, Diana Shipping had secured approximately $94.7 million in contracted revenue for 88% of its remaining 2026 ownership days, at an average contracted charter rate of about $18,337 per day. Only 12% of the remaining days in 2026 were unfixed, management said.

For 2027, the company had secured $61.3 million in contracted revenue for 25% of ownership days, at an average rate of approximately $18,807 per day. Based on forward freight agreement curves as of July 22, management estimated that potential revenue for the remainder of 2026 could reach $110.3 million and potential 2027 revenue could reach $267.9 million, including fixed and unfixed operating days.

The company said its cash-flow break-even rate as of June 30 was $16,859 per day, including vessel operating costs, general and administrative expenses, financing costs and debt amortization.

Diana Shipping declared a quarterly cash dividend of $0.01 per common share, totaling approximately $1.3 million. Including the latest declaration, cumulative distributions since 2021 total approximately $2.72 per common share, according to the company. Management said future dividends remain subject to board approval and depend on earnings, cash flow, capital requirements and market conditions.

Genco Offer and Dry Bulk Outlook

Chief Executive Officer Semiramis Paliou said Diana Shipping terminated its tender offer for Genco Shipping & Trading on July 27. The company had initially launched a tender offer in May for $23.50 per Genco share, later raising it to $24.80 in cash. On June 17, Diana submitted a non-binding proposal directly to Genco's board that implied a value of $27.34 per share, consisting of $24.80 in cash plus one Diana share. Paliou said that cash-and-stock offer remains outstanding with Genco's board.

Paliou said the company believes market attention on the proposed Genco transaction has diverted focus from Diana Shipping's standalone operating performance. She said management believes the company trades at a substantial discount to net asset value, though she did not provide a specific valuation figure.

Chief Commercial Officer Dave Van der Linden said dry bulk spot and period rates improved across vessel sizes in the second quarter, supported by longer ton-mile trades, dry dock activity, slower sailing speeds and congestion rather than a major acceleration in demand.

• Capesize earnings averaged $39,806 during the second quarter, based on the new 182.5 time-charter index, according to management.
• Kamsarmax earnings averaged $19,243, while Ultramax earnings averaged $19,402.
• Van der Linden said the beginning of the third quarter brought some softening in near-term sentiment, particularly for larger vessels.

Management cited strong iron ore, bauxite, grain and coal movements as market supports, while identifying fleet growth—particularly in Kamsarmax and Ultramax segments—low demolition activity, macroeconomic risks and geopolitical uncertainty as potential headwinds. The company also said it continues to avoid sending vessels into conflict areas.

About Diana Shipping (NYSE:DSX)

Diana Shipping Inc is a global shipping company incorporated in the Republic of the Marshall Islands and headquartered in Athens, Greece. The company specializes in the ownership and operation of dry bulk vessels that transport a variety of commodities, including coal, iron ore, grains, fertilizers, steel products and other bulk materials. Diana Shipping’s fleet comprises Panamax, Capesize, Newcastlemax and Supramax/Newcastlemax segments, enabling it to address the needs of customers on key global trade routes.

The company conducts its operations by chartering vessels on short‐term voyage charters and longer‐term period charters.

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