Diana (DSX) Q3 2022

Diana Shipping (DSX) reported Q3 2022 results on 11/17

  • Revenue of $73.8M
  • Net income of $30.3M (attributed to common shareholders)
  • Q3 dividend of 17.5c/sh
  • Special div of OceanPal (OP) Series D Convertible shares.
  • In Aug 2022, DSX completed a transaction to acquire 9 Supramax or Ultramax size vessels. Four of the vessels have delivered.

OceanPal (OP) was created by Diana Shipping in early 2021, and went public in late 2021, with 3 formerly DSX vessels. Diana has subsequently “dropped” an additional vessel to OP. DSX also completed a 9-vessel acquisition in Q3 2022. Vessel additions and subtractions is great way to rejuvenate a fleet.

Not a major fan of DSX’s chartering strategy. Seems like the company acts more like a “price taker” in the time-charter market. Case in point, the first four fleet additions have delivered, and subsequently fixed on charters,with daily averages of $13,100 - $17,100. Yes, 14 - 18 month charters, but is $13,100 properly compensating DSX for fixing the vessels?

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