Diana Shipping (DSX) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw a net loss of $2.8 million, compared to net income of $10.4 million in Q2 2023, with time charter revenues at $56.0 million, down from $67.4 million a year ago.

• Fleet comprised 39 dry bulk vessels, with utilization at 99.9% and ongoing modernization, including two methanol dual-fueled newbuildings expected in 2027 and 2028.

• ESG initiatives focus on eco-friendly technologies, emission transparency, and workforce investment.

• Cash position stood at $140 million as of June 30, 2024, and net debt/market value was 38%.

• Declared a $0.075 per share cash dividend for Q2 2024, continuing a consistent payout policy.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $23.2 million, down from $32.9 million in Q2 2023.

• Net loss attributable to common stockholders was $4.2 million for Q2 2024, compared to $8.9 million net income in Q2 2023.

• Time charter equivalent rate decreased to $15,106 from $17,311 year-over-year for the quarter.

• Daily vessel operating expenses for Q2 2024 were $5,993, slightly down from $6,057 in Q2 2023.

• Cash, cash equivalents, and restricted cash were $140 million as of June 30, 2024, with long-term debt at $613.5 million.

Outlook and guidance

• Secured revenue covers 74% of remaining 2024 ownership days and 26% for 2025, with $76.8 million and $68.9 million contracted, respectively.

• Average daily TCE rate for remaining 2024 fixed revenues is $17,138.

• Projected to achieve profit and positive cash flow in 2024 and 2025 based on current FFA rates.

• Conservative chartering strategy with 26% of 2024 days unfixed, providing flexibility for market opportunities.

• FCF breakeven for 2024 estimated at $16,343 per day, with projected TCE rates above breakeven.