Diana Shipping inc.

Thank you for standing by, ladies and gentlemen, and welcome to Diana Shipping Inc. conference call on the second quarter 2026 financial results. We are joined by the company's chief executive officer, Ms. Semiramis Palewo. At this time, all participants are in a listen-only mode. There will be a presentation followed by a Q&A session. To ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. Please note that this conference is being recorded. We will now turn the floor over to Ms. Paliu. Please go ahead.

Thank you. Good morning, ladies and gentlemen, and welcome to Diana Shipping Inc. Second Quarter 2026 Financial Results Conference Call. I am Samira Ms. Paliu, the CEO of the company, and it's a pleasure to present alongside our esteemed team, Mr. Ioannis Zafirakis, Director and President, Ms. Maria Dede, Co-CFO and Treasurer, Mr. Dave Vanderlinden, Chief Commercial Officer of Diana Shipping Services. Before we begin, I'd like to remind everyone to review the forward-looking statements on page four of the accompanying presentation. The second quarter of 2026 maintains strong momentum, which carried over from the previous quarter. Disruption caused by geopolitical events continues to create significant inefficiencies in the market. Minerals are increasingly shifting from ordinary commodities to strategic national assets. Resource-rich countries are using their leverage to impose export and pricing controls, while import-dependent countries are scrambling to diversify supply chains and energy needs. The result is a dry bulk market supported by near-term trade flow adjustments, but still exposed to longer-term uncertainty, mainly due to considerably supply increases, especially in the sub-cape segments. For now, congestion, slower speeds, dry docks, and longer ton-mile trades have been able to absorb the new tonnage. In the quarter, Diana took period coverage across several sizes in the fleet, again at rates significantly higher than their previous charters. Meanwhile, we continue to avoid sending our vessels into conflict areas and are thought to remain with the many crew members which are in harm's way. Turning to slide five, let's review our company snapshot as of today. Diana Shipping Inc. Founded in 1972 and listed on the New York Stock Exchange since 2005, operates a fleet of 36 dry-bulk vessels, one of which is mortgage-free. Our fleet has an average age of 12 1⁄2 years and a total deadweight capacity of approximately 4.1 million tons. We anticipate the delivery of two methanol dual-fuel new-building Camp Thermax dry-bulk vessels at the end of 2027 and early 2028 respectively. Fleet utilization reached 99.8% for the six months ended June 30th, 2026, highlighting our effective vessel management strategy. As of the end of the second quarter, we employed 943 individuals at sea and the shore. Financially, our net debt stands at 44% of market value. This is supported by $118 million in cash reserves as of quarter end, $155 million equity investment in Genco, approximately $0.50 per share of potential free cash flow to equity based on fixed rates and FFA rates over the next 18 months. and total secured revenues of approximately 157 million U.S. dollars as of July 22, 2026. Moving on to slide six, let's go over the key highlights of the second quarter 2026 and recent developments. On May 4, 2026, We launched a tender offer to acquire all outstanding shares of Genco and Trading Limited, not already owned by Diana, for 23.50 per share in cash. On May 15, 2026, we were awarded the Gold Award in the Governance Leader Award category at the Environmental, Social and Governance Shipping Award 2026. On May 27, 2026, we amended our tender offer price to 24.80 per share in cash and extended the tender offer deadline to June 26, 2026. On June 17, 2026, we submitted an updated non-binding offer directly to the GENCO Board to acquire all outstanding shares of GENCO not already owned by Diana to a total implied value of $27.34 per share, comprised of $24.80 per share in cash plus one Diana share, valued at $2.54, based on Diana's volume-weighted average price per share. On June 29, 2026, we further extended the tender offer deadline to July 10, 2026. On June 30, 2026, we extended the fully committed financing supporting of Diana's offer to acquire the outstanding shares of Genco, not already owned by Diana, in the amount of 1.4 billion US dollars. On July 13, 2026, we further extended the tender offer deadline to July 24, 2026. As of July 22, 2026, we have secured 94.7 million US dollars of contracted revenues for 88% of the remaining ownership days of the year 2026 and have secured 61.3 million US dollars of contracted revenues for 25% of the ownership days of year 2027. On July 27, 2026, We terminated the tender offer. Our June 17th cash and stock offer remains outstanding with the JNCO board. Today we are pleased to declare a quarterly cash dividend of $0.01 per common share with respect to the second quarter of 2026, totaling approximately $1.3 million. Slide 8 summarizes our recent chartering activity. From May 21st, 2026 to July 22nd, 2026, we have secured time charters for five vessels. An Ultramax vessel at the daily rate of 18,350 for 382 days. Three Panamax and Campermax vessels at an average daily rate of 16,500 for an average of 279 days. Slide nine. Highlights of this disciplined chartering strategy. We focus on staggered medium to long-term charters to avoid clustered maturities, ensuring earnings, visibility, and resilience against market downturns. This disciplined chartering strategy has secured for the remaining of 2026 approximately $94.7 million in contracted revenues Resulting in an average time charter rate of approximately 18,337 U.S. dollars per day. For the rest of 2026, only 12% of the days remain unfixed. The average contract duration is one year and a quarter, covering some days of 2027. Now, I'll pass the floor on to our co-CFO, Maria Dede, for a more detailed financial analysis.

Thanks, Maria Dede. Good morning, everyone, and thank you for joining us today. I will walk you through our financial performance for the second quarter and six months ended June 30, 2026. For the second quarter of 2026, time charter revenues increased to $57.3 million from $54.7 million in the second quarter of 2025. Adjusted EBITDA increased to 24.3 million from 22 million in the prior year period. Net income was 20.8 million compared to 4.5 million in the second quarter of 2025. Net income attributable to common stockholders was 19.3 million compared to 3.1 million in the second quarter of 2025. Diluted earnings per common share were $0.16 for the second quarter of 2026 compared to $0.03 for the second quarter of 2025. Profitability during the quarter benefited from the higher time starter equivalent rate achieved by the fleet, lower interest expense resulting from the continued reduction of debt and lower average interest rates. Earnings also reflected increased dividend income and a significant gain on equity securities during the quarter, compared to a loss recognized in the second quarter of 2025. We continue to maintain a strong balance sheet and substantial liquidity while steadily reducing leverage. As of June 30, 2026, cash, cash equivalents and restricted cash amounted to 117.9 million, Long-term debt and finance liabilities net of deferred financing costs decreased to $606.1 million out of June 30, 2026 from $636.1 million out of December 31, 2025, reflecting scheduled debt amortization and our disciplined capital management strategy. During the quarter, we operated an average of 36 vessels compared to 37 vessels during the same quarter of last year. This decrease reflects the smaller fleet size following a vessel sale completed last year which affected ownership available and operating days. Our fleet generated a time charter equivalent rate of $16,581 per day representing a 7% increase from the $15,492 per day in the second quarter of 2025. Flip utilization remains strong at 99.6%. Vessel operating expenses were $21 million compared to $20 million in the second quarter of 2025. On a per day basis, daily operating expenses increased to $6,396 from $5,944 in the prior year quarter, reflecting higher crew related costs and stores repairs and maintenance expenses. In the six months ended June 30, 2026, time charter revenues increased to 112 million compared to 109.6 million during the same period last year. Voyage expense amounted to 6.5 million and consisted primarily of brokerage commissions. In the six months ended June 30, 2026, our fleet generated a time charter equivalent rate of $16,309 per day, representing a 4% increase from the $15,615 per day in the six months ended June 30, 2025. Fleet utilization increased to 99.8% compared to 99.5% in the prior year period. Vessel operating expenses were 40.4%. compared to $40 million in the six months ended June 30, 2025. On a per-day basis, daily operating expenses increased to $6,203 from $5,905 in the prior year period, reflecting higher crew-related costs and stores repairs and maintenance expenses. In this slide, debt maturity and amortization profile, we continue to maintain a disciplined approach to leverage. Our debt portfolio remains well diversified among secured bank facilities, sale and leaseback arrangements, and our senior unsecured bonds. This structure provides a balanced mix of floating and fixed rate exposure while maintaining financial flexibility. Our amortization profile remains gradual and predictable, with no significant near-term refinancing concentrations. The principal maturity remains the 175 million senior unsecured bonds maturing in 2029, which we intend to address well in advance to ensure continued liquidity stability, minimize refinancing risk, and maintain predictable cash flows. As of June 30, 2026, our cash flow break-even rate stood at $16,859 per day, including various operating, general and administrative expenses, financing costs, and debt amortization. For the remainder of 2026, we have secured 88% of our ownership days at an average contracted charter rate of approximately $18,337 per day, Providing estimated contracted revenues of approximately 94.7 million. Based on the FFA of July 22, 2026, total potential revenues for the remainder of 2026, including both fixed and unfixed operating days, could reach approximately 110.3 million exceeding our break-even cost by 11.4 million or approximately 10 cents per share. For 2027, we have secured 25% of our ownership days at an average contracted charter rate of approximately $18,807 per day, providing estimated contracted revenues of approximately 61.3 million. Based on the FFA curves of July 22, 2026, potential revenues for 2027, including both the fixed and unfixed operating days, could reach approximately 267.9 million, exceeding our break-even cost by 46.4 million, or approximately 40 cents per share. Our competitive break-even level reflects our continued focus on operating efficiency, cost discipline and prudent financial management. At the same time, our chartering strategy provides meaningful upside exposure should market conditions continue to improve. This slide highlights our commitment to return capital to shareholders. The company has consistently declared quarterly dividends since the third quarter of 2021 through both cash dividends and dividends in kind. In line with this policy, we declared a dividend of $0.01 per share for the second quarter of 2026. Including this declaration, cumulative distributions to shareholders since 2021 amount to approximately $2.72 per common share. As always, future dividends remain subject to board approval and will depend on earnings, cash flow generation, capital requirements, and overall market conditions. And I will now hand over to Dave van der Linden for an overview of the dry bulk market.