Diana Shipping (NYSE:DSX) outlined its fleet profile, capital allocation activity, chartering strategy, and views on market conditions and decarbonization during a Capital Link corporate presentation webinar featuring members of the company’s senior management team.
Fleet overview and operating metrics
Ioannis Zafirakis, speaking for the company, said Diana Shipping’s predecessors were founded in 1972 and that Diana Shipping Inc. went public in 2005. He described the company as a global provider of dry bulk shipping transportation services through vessel ownership and bareboat chartering, with vessels employed primarily on short- to medium-term time charters carrying cargos such as iron ore, coal, grain, and other dry bulk materials.
2025 activity: buybacks, asset sales, financing, and contracted revenue
In reviewing 2025 highlights, Zafirakis said the company repurchased close to 11.5 million common shares for an aggregate $22.9 million. He also said Diana Shipping became a strategic partner in 27,500 cubic meter semi-refrigerated LPG newbuildings during the year, and noted the company held a 20-year NYSE listing anniversary event that included a closing bell ceremony and investor day.
Management said the company sold two vessels for approximately $23.7 million and drew down a $55 million term loan facility with the National Bank of Greece, secured by five vessels. The company also published its 2024 ESG report and maintained consistency in its dividend payout during 2025.
Separately, management said Diana Shipping acquired 14.8% of Genco Shipping & Trading Limited’s issued and outstanding common shares and later submitted a proposal to acquire the remaining shares. Zafirakis added that Diana Shipping secured $154.4 million of contracted revenues covering 71% of remaining ownership days for 2026, plus $14.5 million representing 6% of ownership days for 2027. He also said that “since yesterday” the company had secured more than $168 million in revenues.
Genco proposal and board nomination plan
Zafirakis said Diana Shipping submitted a proposal on Nov. 24 to acquire all outstanding Genco shares it did not already own at $20.60 per share. He said the proposal was publicly disclosed and “flatly rejected” by Genco’s board without engagement, with the rejection occurring on Jan. 13.
He added that on Jan. 16 Diana Shipping announced its intention to nominate a slate of six independent director candidates for election to the Genco board at Genco’s upcoming 2026 annual meeting. Zafirakis said Diana believes a combination would enhance scale, flexibility, and operating leverage in dry bulk, and that the offer provides Genco shareholders “immediate and certain value” and “high certainty of execution.”
He also cited premiums associated with the proposed $20.60 per share price, including a 15% premium to the Nov. 21 closing price, a 21% premium to the July 17 closing price, and a 23% premium to 30- and 90-day VWAP for the period ending Nov. 21, 2025. On financing, Zafirakis said the all-cash offer was supported by a “highly confident” letter from two shipping banks for financing up to $1.1 billion to fund the purchase price, refinance Genco’s existing debt, and cover fees and expenses.
Chartering approach, debt profile, and break-even discussion
Management highlighted what it described as a disciplined, non-speculative chartering strategy designed to provide revenue visibility and reduce risk from market downturns by avoiding clustered maturities. Zafirakis said Diana had fixed three vessels early in the year—two Kamsarmax vessels and one Ultramax vessel—with the Ultramax fixed at $14,750 per day with 361 days remaining, and the two Kamsarmax vessels fixed at an average of $13,872 per day with 443 days remaining.
He said the company had fixed revenues at an average daily time charter rate of about $17,700 per day for the remaining days of 2026, with 29% of 2026 days still unfixed and an average contract duration of 1.2 years.
On leverage and liquidity, Co-Chief Financial Officer and Treasurer Maria Dede addressed a question about reduced cash and higher loan-to-value. She said cash levels were “quite good” at $133 million but declined in 2025 due to the Genco stake purchase, capital contributions to joint ventures, and stock repurchases. She said loan-to-value increased from 43% to 53% year-over-year, but pointed to Diana’s debt profile and scheduled amortization as providing “strong visibility” on deleveraging. Zafirakis also noted the company had “basically no maturities” before 2029.
Management discussed break-even and estimated revenues using forward freight agreement (FFA) assumptions for unfixed days. Zafirakis said cash break-even—comprising operating expenses, debt amortization, interest expense, depreciation and amortization, voyage expenses, preferred dividend, drydocking provision, and other items—was calculated at about $16,800 per day. Using the Jan. 23, 2026 FFA curve for unfixed days, he said estimated average revenue would be about $17,200 per day for 2026 and $18,000 for 2027, implying a positive contribution of $5.8 million for 2026, while emphasizing it was an estimate and that some days remained unfixed.
Market outlook and ESG/decarbonization priorities
Chief Commercial Officer Dave van der Linden described 2025 as “a story of two halves,” with weaker demand early in the year—particularly for coal—and lower year-on-year iron ore imports into China. He also referenced the impact of tariff-related announcements and other policy uncertainty, but said the second half saw a strong recovery across vessel sizes driven more by tightening utilization than a surge in demand, citing longer ton-miles, a substantial drydock schedule, and weather-related delays in the Pacific. He said Capesize rates rallied from under $10,000 per day early in the year to a brief peak of $45,000 per day in December.
Looking to 2026, van der Linden cited Clarksons Research expectations for global GDP growth of about 3.3% and moderating merchandise trade, with coal demand edging down and iron ore roughly flat. He said the year had started “historically strong” across sizes, with iron ore and bauxite supporting Capesize demand and long-haul grain supporting mid-size vessels. On supply, he said fleet growth remained controlled, with the orderbook-to-fleet ratio at 11% in deadweight terms (citing Banchero Costa Research) and deliveries in 2026 concentrated in Ultramax and Kamsarmax segments. He added that scrapping remained low and that Diana avoids the Red Sea and Black Sea regions due to conflict risks.
On decarbonization, Chief Technical Investment Officer Evangelos Sfakiotakis said the IMO’s net-zero framework had been approved in principle, but the latest MEPC session ended without formal adoption, creating uncertainty around timelines and compliance pathways that could influence industry investment decisions. Despite this, he said Diana has drafted a comprehensive decarbonization strategy that is periodically revisited, including operational measures such as speed optimization and use of biofuels, as well as drydock upgrades and retrofits such as silicone paints, ultra-smooth coatings, and robotic hull-cleaning devices on some vessels. He said these measures have improved fleet efficiency by almost 15% over the last couple of years and added that the strategy includes midterm steps such as categorizing vessels by design/performance and renewing the fleet by selling older, less efficient tonnage while acquiring newer vessels capable of using alternative fuels, citing the two Tsuneishi-built dual-fuel methanol vessels on order.
Chief Corporate Development, Governance and Communications Officer Margarita Veniou said sustainability is embedded in Diana’s corporate strategy and long-term value creation. She said the company has published six ESG reports since its first in 2019, initiated external assurance last year, and received independent assessments including a CDP rating for environmental disclosure and an S&P Global ESG score.
Zafirakis also noted that Diana has paid a quarterly dividend since 2021 and said cumulative dividends totaled $2.69 per common share through the period discussed.
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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