Diana Shipping (DSX) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 28, 2026 astatine 9:22 AM CDT 25 min read

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DATE

Thursday, May 28, 2026 astatine 9 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Semiramis Paliou

• Co-Chief Financial Officer — Maria-Christina Dede

• Director & Executive — Ioannis G. Zafirakis

• Chief Strategy Officer — Evangelos Sfakiotakis

Full Conference Call Transcript

The archetypal 4th of 2026 continued to amusement beardown momentum which carried implicit from past year. The accustomed seasonal slowdown successful Q1 did not happen. The Capesize marketplace had its champion archetypal 4th since 2010. Again, this was owed to respective factors nary of them needfully request driven. We saw much utilization tightening caused by longer ton miles a important constitute disconnected docket and the concern successful the Strait Of Hormuz. Middle East struggle not lone caused portion of the drybulk fleet to beryllium tied up successful that area, but besides an wide simplification successful operating velocity particularly connected the agelong haul routes. Capesize vessels were the strongest movers but this clip we person besides seen a marked betterment successful the Kamsarmax marketplace which was supported by a spike successful ember movements successful the Pacific. Countries similar Japan, South Korea, and Vietnam person accrued their ember imports to code their vigor needs. Interestingly, the maturation successful atom shipments was besides concentrated successful different countries aside. China. In the quarter, we took play sum crossed each sizes successful the fleet, again, astatine rates importantly higher than their erstwhile charters. I would similar to notation that though Diana has nary vessels straight affected by the Persian Gulf situation, our costs are with the galore seafarers who indispensable fearfulness for their information and well-being. Turning to Slide 5, let's reappraisal our institution snapshot arsenic of today. Diana Shipping Inc, founded successful 1.97 1000 and listed connected the New York Stock Exchange since 2005, operates a fleet of 36 drybulk vessels 1 of which is owe free. Our fleet has an mean property of 12.5 years a full deadweight capableness of astir 4 cardinal tons. We expect the transportation of 2 methanol substance newbuildings Kamsarmax drybulk vessels astatine the extremity of 27 and aboriginal 28 respectively. Fleet utilization reached 99.9% for the 3 months ended 03/31/2026, highlighting our effectual indebtedness absorption strategy. As of the extremity of the archetypal quarter, we employed 941 individuals astatine oversea and ashore. Financially, our nett indebtedness stands astatine 46% of marketplace worth supported by $124.5 cardinal successful currency reserves arsenic of 4th extremity and full secured revenues of astir $106 cardinal arsenic of 05/20/2026. Moving connected to Slide 6, let's spell implicit the cardinal highlights of the archetypal 4th of 2026 and caller developments. In January, we announced our volition to nominate a slate of 6 highly qualified autarkic candidates for predetermination astatine Genco's yearly gathering connected June 18. In March the aforesaid year, we accrued our efforts to-- our connection to $23.5 per stock successful currency to get each outstanding shares of Genco not already owned by us. The connection is backed by $1.4 cardinal successful afloat committed financing from 6 starring planetary banks with nary financing conditions. The connection is further supported by a definitive statement with Starbulk Carriers Corp. Which volition get 16 Genco vessels for $47.5 cardinal upon closing. In May 2026, we launched a tender connection to get each outstanding shares of Genco for $23.5 per stock successful cash. As of 05/20/2026, we person secured $123 cardinal of contracted revenues for 83% of the remaining ownership days of the twelvemonth 2026 and person secured US44.1 cardinal dollars of contracted revenues for 17% of the remaining ownership days of the twelvemonth 2027. In May 2026, we were awarded the Global Award successful the Governance Leader Award category. At the Environmental, Social and Governance Shipping Award 26. Today, we are pleased to state a quarterly currency dividend of $0.01 per communal stock with respect to the archetypal 4th of 26 totaling astir $1.2 cardinal Lastly, conscionable yesterday, we amended our connection terms to get Genco to $24.8 per stock successful currency and person extended the tender connection deadline to 06/26/2026. The revised connection terms volition beryllium adjusted connected a 1-for-1 ground for immoderate dividend oregon different distributions declared oregon paid to shareholders pursuing the announcement of our offer. The caller accrued connection represents a 39% premium to Genco's undisturbed stock terms connected the time earlier our archetypal offer, a 48% premium to its 30 time measurement weighted mean terms arsenic of that day and is priced astatine astir 1x nett plus worth astatine what analysts person described arsenic 15 years precocious plus value. It should beryllium noted that Genco's stock terms is presently trading astatine oregon astir NAV portion the drybulk peers are presently trading astatine an mean 20% discount to NAV. Before our involvement, Genco traded astatine an mean 30% discount to NAV since 2020. As such, Genco shareholders look important downside hazard successful the lack of our offer. If the connection is not completed, Genco's stock terms could diminution to astir $18 per stock if the banal reverts towards its humanities trading. Unfortunately, for 6 months, Genco Board has wholly refused to prosecute with us. Genco's largest shareholder. Our erstwhile connection person each been met with soundlessness and we are hopeful that the Genco Board volition yet beryllium down with america to prosecute successful a constructive dialogue. This is the way guardant that we powerfully prefer. But we person besides fixed Genco shareholders the accidental to ballot for our committee nominees, who we are assured volition research each opportunities to maximize value, and to tender their shares. We are committed to seeing this through, andyoucanstayinformedbyvisitingourcampaignwebwebsite@cashforgenco.com. We impulse Genco shareholders to ballot the golden cosmopolitan proxy paper for Diana's 6 Independent Directors nominee astatine the 26 Annual Meeting. Again, for much information, delight sojourn our website astatine cashforgenco.com. Moving connected to Slide 8, Slide 8 summarizes our caller chartering activity. From 02/20/2026 until May 20, we person secured clip charters for 5 vessels. An Ultramax vas astatine a regular complaint of 16 1000 for 408 days 3, Panamax, and post-Panamax vessels astatine an mean regular complaint of $17.3 1000 for an mean of 387 days. A Capesize vas astatine a regular complaint of 27.5 1000 for 641 days. Slide 9 highlights our disciplined chartering strategy. We absorption connected staggered mean to agelong word charters to debar classes maturities ensuring net visibility and resilience against marketplace downturns. This disciplined chartering, strategy has secured for the remaining of 2026 astir US124 cardinal dollars successful contracted revenues resulting successful an mean fixed clip charter complaint of $18.3 1000 per day. For the remainder of 2026, lone 17% of days stay unfixed. The mean declaration duration is 1.24 years covering immoderate days of 2027. Now I volition walk the level to our Co CFO, Maria Dede: for a much elaborate fiscal analysis. Thank you, Good morning, everyone.