Greetings and welcome to the Diana Shipping 2016 Second Quarter Conference Call. [Operator Instructions] As a reminder, this conference is recorded. I would now like to turn the conference over to Ed Nebb, IR Advisor. Thank you, Mr. Nebb, you may begin.

Thanks, Brenda, and thanks to all of you for joining us today for the Diana Shipping Inc. second-quarter conference call. The members of the management team who are with us today are Mr. Simeon Palios, Chairman and CEO; Mr. Anastasios Margaronis, President; Mr. Andreas Michalopoulos, Chief Financial Officer; Mr. Ioannis Zafirakis, Chief Operating Officer and Secretary; and Ms. Maria Dede, Chief Accounting Officer. Before management begins their remarks, let me briefly summarize the Safe Harbor notice. Certain statements made during this conference call which are not historical facts are for looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act. Such forward-looking statements are based on assumptions, expectations, intentions or beliefs as to future events that may not prove to be accurate. For a description of the risks, uncertainties and other factors that may cause future results to differ materially from the forward-looking statements, please refer to the Company's filings with the Securities and Exchange Commission. Now, with that, let me turn the call over to Mr. Simeon Palios, Chairman and Chief Executive Officer.

Thank you, Ed. Good morning and thank you for joining us today to discuss the results of Diana Shipping Inc. for the second quarter of 2016. The dry bulk trade continues to face extremely challenging market conditions, as you are well aware. We continue to believe that an increase in demand, driven by global economic activity as well as greater discipline over supply, are necessary if we are to see any meaningful improvement in industry conditions. In this environment, we remain sharply focused on maintaining the financial resources to ride out the current conditions and position the Company for the long term. To review our financial results, the Company posted net loss of $31.3 million and a net loss attributed to common stockholders of $32.7 million for the second quarter of 2016. This compares to a net loss of $14.1 million and a net loss attributed to common stockholders of $15.5 million for the second-quarter 2015. Our time charter revenues were $28.3 million for the second quarter of 2016 compared to $38.6 million for the same period of 2015. Currently, our fixed revenue days are 87 for 2016. Diana Shipping continued to maintain a solid balance sheet. Cash and cash equivalents including cash balance were near the $149 million at June 13, 2016. Long-term debt, net of deferred financing costs, was $618.7 million compared to stockholders equity of nearly $1.2 billion. We have continued to maintain our capacity to support the Company's strategy with appropriate financing arrangements. In May 2016, we announced a drawdown of $13.5 million under a term loan facility with The Export-Import Bank of China having a majority interest and D&B Bank ASA. The proceeds were used to finance the entire acquisition costs of the m/v Maera. As we reported to you last quarter, we took delivery in May of 2016 of the m/v Maera, formerly Manzoni, and 2013 built Panamax dry bulk vessel of 75,403 tons deadweight. With delivery of Maera our fleet consists of 46 dry bulk vessels. We also have two building Newcastlemax dry bulk vessels now expected to be delivered in the first quarter of 2017 and the new building Castlemax dry bulk vessel expected to be delivered in the fourth quarter of 2016. As we navigate the difficulty of [indiscernible] Diana Shipping will strive to maintain a strong balance sheet and financial resources. Furthermore, we will continue to monitor our business in a prudent manner and be well-positioned for a more promising phase of the dry bulk site. With that I will now change the call over to our President, Stacey Margaronis, for a perspective on the industry position. He will then be followed by our Chief Financial Officer, Andreas Michalopoulos, who will provide a more detailed financial overview. Thank you.

Thank you, Simeon, and welcome to all the participants of the second-quarter Diana Shipping Inc. conference call. The second quarter has seen a slight improvement in the earnings of bulk carriers across the board. The Baltic exchange industries reflect quite accurately this development. At the beginning of the second quarter the Baltic Dry Index stood at 450, and on 30 June it was at 660. The Baltic Cape Index started at 345 and closed at 996, while the Baltic Panamax Index similarly recovered from 535 to 662. According to Clarksons the Capesize Baltic five time charter rate on 27 July was $5,723, up from $3,013 on 31 March. The Panamax Baltic four time charter rate was $6,020 on 20 July, up from $4,275 on 31 March this year. According to Clarksons the improved earnings have led to a sustained amount of activity in the sale and purchase market with signs of ongoing negotiations and an increasing number of vessel inspections. Clarksons continues with recently achieved secondhand state practice represent approximately 10% increase over levels seen earlier this year for quality secondhand tonnage. We will outline analysts' reasoning for this positive development and examine arguments for and against the prospects of this being the beginning of a lasting and significant improvement in bulk carrier earning. Starting with the usual [indiscernible] macroeconomic news, according to Clarksons' research, profits of China's industrial firms have improved so far this year, with total profits up by 6.5% year on year in the first four months of 2016, compared to a decline of 2.3% in 2015. This total reflected greater levels of demand and the easing pace of declines in raw material prices. Commodore Research are troubled, though, by the fact that in the United States, in spite of their positive economic parameters, industrial reduction has…

Thank you, Stacy, and good morning. I am pleased to be discussing with you Diane's operational results for the second quarter and six months ended June 30, 2016. For the second-quarter 2016 net loss amounted to $31.3 million. Net loss attributed to common stockholders amounted to $32.7 million. Net loss per common share was $0.41. Time charter revenues decreased to $28.3 million compared to $38.6 million for the second quarter of 2015. The decrease was due to the decreased average time charter rate that we achieved for our vessels during the quarter and was partly offset by revenue derived from the addition to our fleet of the vessels [indiscernible] delivered in June 2016, New Orleans and Seattle delivered in November 2015, Serena and Ismene delivered in March 2016 and Maia delivered in May 2016. Ownership days were 4,147 for the second quarter of 2016 compared to 3,670 for the same quarter of 2015. Fleet utilization was 99.4% compared to 90.2% for the second quarter of 2015 and the daily time charter equivalents rate was $6,003 compared to $9,613 for the same quarter of 2015. Voyage expenses were $3.6 million for the quarter compared to $4.1 million for the same quarter of 2015. The decrease in voyage expenses was mainly due to a decrease in revenues, which decreased commissions. Loss from bunkers in the quarter amounted to $2 million compared to $2.2 million in the same quarter last year. Vessel operating expenses amounted to $21.9 million compared to $21.3 million for the second quarter 2015 and increased by 3%. The increase was due to the 13% increase in ownership days resulting from the enlargement of the fleet and was partially offset by decreased expenses insurances, stores and spares and repairs. Daily operating expenses were $5,289 for the second quarter of 2016…

[Operator Instructions] Amit Mehrotra, Deutsche Bank.

First, first question is obviously about the reports that you are contemplating asset purchases, specifically a Capesize resale. Just wanted to simply ask if you can confirm or deny this and, if it is indeed true, what the rationale is for this kind of investment, given the uncertainty around the ability to meet the near- and midterm cash calls.

We will try to explain the situation as simply as possible. We are currently proactively and we are active before a problem arise, if it does, to come with an agreement with the banks as regards possible using on the repayment schedule. If we do not manage to come to an agreement, we have to continue business as usual. And at this stage of the cycle we are considering cheap assets, cheaply purchased vessels at the bottom of the cycle, as good as cash or even better. We will consider unencumbered vessels at this stage in the cycle, where they have been purchased at this stage in the cycle. They don't have a lot of way downwards. And also they are very, very liquid, if necessary, after a year or two years from now. At the same time, we strongly feel that being as good as cash, at this stage later on, can be proven to be a nice asset to have in your negotiations with the banks, if you want after a while to come into an agreement with the banks as regards, again, and easing on amortization schedules. It's very simple. So there is some truth in what you have said because we are ready to buy vessels, certainly not spend the entire cash position that you see, which is substantial, but an investment within the next four months, equal to $40 million-$80 million is certainly something that we are considering seriously.

Okay, thank you for that, the details. If I could ask a follow-up on that, you guys have been in discussions with your lender group for a while. I think it's maybe 10 or 13 banks, large, if I'm correct. And clearly you are closer to pulling the trigger, so to speak, than you have in the past in terms of the assets that you have identified. So maybe can we read between the lines and say the negotiations are harder than maybe you would have expected and the banks are essentially being a little bit more difficult in terms of requiring you to raise liquidity, and so this is why you are maybe contemplating this step? What can we glean from the status of the negotiations?

You cannot read between the lines. Having said that, time is of the essence for everybody. And we need to be always ready to do what is best for the Company and our shareholders.

The tricky part of the whole question of yours is the proactive part of the deal. If you consider the fact that we are acting proactively, then you can understand our ability to have two plans.

Right, okay.

Either/or.

Maybe I can just follow up one more time. In this environment it just seems like the banks are being tougher. And so I know you've talked last quarter about an equity raise being the last resort. Do you see that as being part of any negotiation, or is that still off the table and you want to explore?

Certainly raising equity is out of the question, especially proactively. That's why I keep talking about the proactive part of the story. We still have plenty of cash aside and we still, by adding our models and you are adding yours, you can see that we have a nice time ahead of us before we have a real problem, where we can discuss with the banks again.

Okay. Well, that's --

And this is something that we feel that the banks -- at the end of the day some of them, they have understood already. In others may understand. But for us raising equity proactively and diluting our shareholders -- we will not do it. We will do it if absolutely necessary.

Right. And I guess the proactive purchase of assets could accelerate the point in time where you would need to do that defensively. Right?

No. No. Because, before the raising of equity you can sell the unencumbered assets.

Okay, got you.

Even at a higher price than what you have paid today.

Okay. Okay, good. Let me just ask Andreas a couple quick ones, housekeeping items, if you will. The new building payments -- is that still $83 million or is that less?

The new building payment is $78.6 million.

$78.6 million? So if I am correct, Andreas, does that take your LTV currently to like 80%-85%? Is that in the ballpark of where you guys see it?

Yes, more or less, more or less.

Or that may be too optimistic? It may be higher than that?

No, no, no. It's more or less around there. But, you know --

Okay. Last question from me -- the remaining debt repayments this year, I think you had $45 million this year and $50 million next year.

The remaining this year is $31.3 million for the remaining of the year, and for 2017 is $46.7 million.

46.7? Okay. Great, guys. That's all I have. Thank you so much.

It seems that we have no further questions at this time. I'd like to turn the floor back over to management.

Thank you again for your interest in and support of Diana Shipping. We look forward to speaking with you in the months ahead. Thank you.