Diana Shipping(DSX)2025-03-21 20:01Financial Performance - Time charter revenues decreased by 228.2 million in 2024 compared to 15,267 in 2024, representing a 9% decrease from 13.6 million in 2024, with commissions decreasing to 13.3 million in 2023[375] - The average number of vessels in the fleet decreased to 38.9 in 2024 from 41.1 in 2023[357] - Ownership days were 14,219 in 2024, down from 14,986 in 2023, reflecting a reduction in fleet size[357] - Daily vessel operating expenses increased slightly to 5,704 in 2023[357] - Vessel operating expenses decreased by 82.6 million in 2024 compared to 5.1 million, or 10%, to 49.8 million in 2023[379] - General and administrative expenses increased by 33.4 million in 2024 compared to 0.5 million, or 9%, to 5.3 million in 2023[381] - Interest expense and finance costs decreased by 47.5 million in 2024 compared to 13.1 million, or 19%, to 70.4 million in 2023[399] Fleet and Operational Metrics - The fleet utilization rate was 99.7% for both 2024 and 2023, indicating consistent operational efficiency[357] - The number of vessels at year-end was 38.0 in 2024, down from 40.0 in 2023[357] - The weighted average age of vessels at year-end increased to 11.3 years in 2024 from 10.5 years in 2023[357] - The total deadweight tonnage (Dwt) of the vessels is 4,481,283, reflecting the scale of the company's operations in the shipping industry[430] Cash and Financing - Cash and cash equivalents increased to 121.6 million as of December 31, 2023[398] - Working capital increased to 97.1 million as of December 31, 2023[397] - The company has commitments of 522.6 million of long-term debt[408] - The company entered into a 197.2 million in tranches[410] - The company issued a new bond amounting to 13.5 million as of December 31, 2024[420] Market Conditions and Risks - The Baltic Dry Index (BDI) ranged from a low of 976 to a high of 2,419 in 2024, closing at 1,635 on March 20, 2025[423] - Approximately 70% of the company's fleet ownership days in 2025 are fixed in time charter agreements at or around the break-even rate[423] - The historical ten-year average rate used in 2024 for Panamax, Kamsarmax, and Post-Panamax vessels was 12,775 in 2023[426] - The carrying value plus unamortized deferred costs of vessels with impairment indicators as of December 31, 2024, was 22 million[428] - The aggregate carrying value plus unamortized deferred cost of twelve vessels exceeded their aggregate charter-free market value by approximately 49 million in 2023[430] - The average estimated daily time charter equivalent rate for Ultramax vessels is 12,513, indicating a healthy margin[433] - The average estimated daily time charter equivalent rate for Capesize/Newcastlemax vessels is 12,018, suggesting strong profitability potential[433] - A reduction of 14% in time charter rates would trigger impairment of individual long-lived assets, highlighting the sensitivity of the company's impairment tests to market conditions[432] - As of December 31, 2024, the company has identified twelve vessels with indications of impairment due to potential reductions in time charter rates below the average break-even rate[435] - The company’s impairment analysis indicates that the 1-year, 3-year, and 5-year average blended rates would not affect the impairment analysis or the results of operations[435] - The company relies on various industry sources for estimating charter-free market values, which are subject to significant uncertainties and volatility[432] - The company emphasizes the importance of market conditions, including fluctuations in charter hire rates and vessel values, as key factors affecting its financial performance[21] Operational Challenges - The Company is facing changes in operating expenses, including bunker prices, crew costs, drydocking, and insurance costs[6] - The Company's financial condition and liquidity are impacted by the availability of financing and refinancing[6] - There is potential liability from pending or future litigation that could affect the Company's operations[6] - The Company is dependent on key personnel, which may pose risks to its performance[6] - The volatility of the price of the Company's common shares is a concern for investors[6] - The Company must comply with various governmental, tax, environmental, and safety regulations[6] - Global or regional pandemics have an impact on the dry-bulk shipping industry, affecting the Company's operations[6] - The Company is subject to risks from potential disruptions in shipping routes due to various factors[6] - Changes in governmental rules and regulations may affect the Company's business operations[6] - The Company has to navigate general domestic and international political conditions that could impact its performance[6]