Greetings, and welcome to the Diana Shipping Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ed Nebb. Please go ahead, sir.

Thank you, Kevin, and thanks to all of you for joining us for the Diana Shipping Inc. Fourth Quarter and Year End 2019 Conference Call. The members of the Diana Shipping management team who are with us today include Mr. Simeon Palios, Chairman and Chief Executive Officer; Ms. Semiramis Paliou, Chief – Deputy Chief Executive Officer and Chief Operating Officer; Mr. Anastasios Margaronis, President; Mr. Andreas Michalopoulos, Chief Financial Officer; Mr. Ioannis Zafirakis, Chief Strategy Officer and Secretary; and Ms. Maria Dede, Chief Accounting Officer. Before management begins their remarks, let me briefly remind you of the safe harbor notice. Certain statements made during this conference call, which are not historical fact are forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act. And such forward statements are based on assumptions, expectations, projections and beliefs as the future events that may or may not prove to be accurate. For a description of the risks, uncertainties and other factors that may cause future results to differ from the forward-looking statements, please refer to the company's filings with the SEC. And now without further adieu, let me turn the call over to Mr. Simeon Palios, Chairman and Chief Executive Officer.

Good morning and thank you for joining us today to discuss the results of Diana Shipping for the fourth quarter and full year 2019. Although we have yet to see a definite firming trend in the dry bulk shipping market, the company experienced relatively stable operating income for the year 2019, excluding an impairment loss and loss from vessel sale. We also continued to actively manage our fleet profile, announcing agreements to sell several vessels throughout the year. Significantly, we have returned a substantial amount of capital to our shareholders in the form of multiple self-tender offers. To summarize our financial results, Diana Shipping reported a net loss of $14 million and the net loss attributed to common shareholders of $15.4 million for the fourth quarter of 2019 which included a $6.5 million of impairment loss and $3.3 million loss from the sale of vessels, this compares to net income of $2.9 million and net income attributed to common stockholders of $1.5 million reported in the fourth quarter of 2019. For the full year of 2019, the net loss amounted to $10.5 million years. Net loss attributed to common stockholders amounted to $16.3 million, which included a $14 million of impairment loss and $6.2 million loss from sales of vessels. This compares to net income and net income attributed to common stockholders of $16.6 million and $10.8 million respectively for 2018. Time charter revenues were $51.5 million for the fourth quarter of 2019 compared with $62.9 million for the same quarter of 2018, mainly due to sale of vessels and decreased average time charter rate. Time charter revenues were $220.7 million for the full year 2019 compared with $226.2 million for 2018. Turning to the balance sheet, cash and cash equivalents including restricted cash totaled a healthy $128.3 million at…

Thank you, Simeon. Welcome to the participants of this quarterly conference call of Diana Shipping Inc., starting quickly with an overview of the macroeconomic considerations, we can say with confidence of growth projections across the Board are being adjusted downwards because of the coronavirus disruption in trade and commerce as well as the movement of individuals worldwide. According to Clarksons, the latest 2020 global growth forecasts to before these negative projections at about 3.3% and the Chinese growth at about 6%, which is per annum figures going forward. The U.S. growth forecasts were 2%. The Euro area is projected to grow this year by an anemic 1.3%. Potential shipping impact to monitor according to Clarksons going forward include, lower oil demand imports overall, effects on industrial output and raw material demand and reports of disruption to activity in Chinese ports, shipyards and ship repair yards. Turning to demand supply, according to Clarksons, during 2020, seaborne dry bulk trade is projected to grow by 2.5% in ton miles, 2% in volumes. Capacity on the other hand is expected to grow by 3.7% this year. In 2021, the dry bulk trade is expected to grow by 2.3% in ton miles, while supply is expected to increase by just the 1.4% next year. Looking quickly at the age profile of the fleet, according to banchero costa, 2% of the trading Capesize fleet is over 20 years old, 11% is between 15 years and 19 years old, while 17% is less than five years old. The Panamax and Post-Panamax size range, 19% of the trading fleet is over 20 years old and 26% of the fleet is between 15 years and 19 years. It is very possible that weak market, the IMO 2020 and the ballast water system regulations and refits will lead a…

Thank you, Simeon, and good morning. I'm pleased to be discussing today with you Diana's operational results for the fourth quarter and year ended December 31, 2019. Net loss and net loss attributed to common stockholders amounted to $14 million and $15.4 million respectively, including a $6.5 million impairment loss and a $3.3 million loss from the sale of vessels. Loss per common share was $0.17. Time charter revenues decreased to $51.5 million compared to $62.9 million in the fourth quarter of 2018. The decrease was due to decreased average time charter rates that we achieved for our vessels during the quarter and decrease revenues due to the sale of two vessels in December 2018 that we achieved for our vessels during the quarter and decreased revenues due to the sale of two vessels in December 2018 and six vessels in 2019. Ownership days with 3,915 in the fourth quarter of 2019 compared to 4,554 in the same quarter of 2018. Fleet utilization was 96.9% compared to 99.1% for the same quarter of 2018. And the daily time charter equivalent was $12,264 compared to $13,527 for the same quarter of 2018. Voyage expenses were $4.5 million for the quarter compared to $2.7 million for the same quarter of 2018. The increase in voyage expenses was due to a loss of $1.9 million in bunkers compared to a gain of $0.7 million for the same quarter last year. Vessel operating expenses amounted to $23.4 million compared to $25.2 million for the fourth quarter of 2018 and decreased by 7%. The decrease was mainly due to a 14% decrease in ownership days resulting from the sale of vessels and partly offset by increases mainly in spares and repairs. Daily operating expenses were $5,969 for the fourth quarter of 2019 compared to $5,536…

Thank you. [Operator Instructions] The first question today is coming from Randy Giveans from Jefferies. Your line is now live.

Howdy, team Diana. How are you?

Fine.

So I guess, first question, looking at the canceled sale of the Calipso and the Norfolk, what kind of happened with those? And do you still plan on selling these in the near term?

We have explained with the press release what has happened. Basically, the buyers, they have to – they have the right – the option to avoid or to not to take – not to buy the vessel because we missed the [indiscernible] period where the vessel theoretically was supposed to be delivered to them directly due to the problems that exist today as we speak in China. As regards to the fact whether we are trying to sell these vessels yes, and no. The vessels are there. We are considering or trading them – keep trading them or selling them. The option is ours now.

Okay. And then, I guess, you mentioned there, your kind of views on China. Obviously, you've been relatively more conservative on the market in recent years relative to your peers. So how do you see kind of the dry bulk market is responding with a rebound after coronavirus? Is it a couple of weeks, a couple of months, not until 2021, kind of how do you view your recovery going forward?

Basically, usually, there is – when there is a sharp downturn, there is a sharp upturn, the V shape that you keep talking about. And we strongly feel that when there is going to be a solution to the problem, we will see the market picking up because Chinese economy is going to try to gain the lost ground. And it all depends on how quickly the news are going to be better. And we think – we hope that the news are going to get better soon. And therefore, the market is going to improve. You understand that the inventories are becoming less and less. And then we have to catch up. So the sooner this is going to happen, the better for the dry bulk market.

Got it. That’s fair. And then lastly...

Randy?

Yes.

Randy, Ioannis again. But what I wanted to say, though, is that sometimes we have been criticized for being a bit conservative or have always a lot of safety valves in place with our chartering strategy, the money that we have aside. But you notice now that this thing has happened, and we are in a very, very favorable condition and we still can sustain this type of environment very well compared to the other companies that they have wasted most of their money in scrubbers. I know that you are supporting the scrubber idea, but this is exactly what we have been talking about the opportunity because of what you can do with the money or what you may be asked to do with the money that you are spending on scrubbers. Anyway, it remains to be seen. I'm pretty much convinced that at the end of the year, we will be talking again and saying that we were once again right with our decisions on how to handle this market.

Noted. Okay. And then real quick on the IMO, as you mentioned. Obviously, no scrubbers. Are you having any issues with some fuel compatibility or even availability for the LSFO? Have you bought any of that forward? Or is it pretty robust at all of the ports that you are operating in?

Hello, Randy, this is Semiramis. Nice talking with you.

Thank you.

We found the transition between the high sulfur fuel and the low sulfur fuel to be smooth. Smoother than what was expected. And we're happy with the progress.

Alright. Well, great. Thank you so much and have a good one.

Thank you. Our next question is coming from Omar Nokta from Clarksons Platou Advisors. Your line is now live.

Hi, thank you. Guys, I just wanted to maybe just follow-up on Randy's question regarding those two ship sales. Ioannis, I wanted to just get clarity, in your comments, do you – are you saying it was the coronavirus – were there logistical delays that caused the – you to miss the laycan window? Or was it more the buyer becoming nervous about acquiring ships post-coronavirus break out?

It’s a bit of both. We gave them the right to do so, and they took advantage of the market deteriorating. And probably the same people may be the buyer of the vessel again at a slightly lower price, we think, it remains to be seen. In other words, if the market was better, they would have found a way to take delivery of the vessel one way or another.

But rest assured that we have an alternative solution to give the vessel and trade here further. For the time being, we will do plan B. And plan B is to give the vessel for some time until we get similar or even better levels.

That makes sense. And just one more point on that. Was this one seller – I'm sorry, one buyer for both ships are two separate ones?

Two separates, unaffiliated.

Okay. And then just a follow-up, Andreas, I think I missed it in your comments just regarding the vessel OpEx for the quarter. Obviously, they were a bit higher. What do you think – as we – do you think they'll revert to the average, for, say, the first three quarters of the year and for the next couple of – sorry, the first three quarters of last year for the next few quarters? Or is it – should we assume this higher price?

No, I think it should be between the average of the first three quarters and the average of the year. So that's where you should place your numbers around – to be more specific, between 5,300 and the average of the year was 5,500 I think, more towards 5,300.

Okay. Thank you. And sorry, just one more. You guys have – with the preferred shares outstanding the 65 million, those became redeemable a year ago. Any thoughts on looking to buy those back when you think about the future sales rather than buying common stock, buying the preferreds. Is that a topic at all of conversation for you?

Not really. So as we have said in the past, all these instruments there put together in a way like a puzzle to keep our balance sheet in solid condition, in a stellar condition, and we think we have done a very good job there. And we'll keep having these type of instruments into our balance sheet and always keep the optionality for us to act according to the plans. At the moment, we are very happy keeping it.

Okay, very good. Thank you for that and appreciate the answers.

Thank you.

[Operator Instructions] Our next question today is coming from Alexander Jost from Arctic Securities. Your line is now live.

Hi, thank you for taking my question. I was wondering in the now softer market sentiment, how will you balance share buybacks versus taking advantage of asset prices coming down?

The asset prices are going down, but the inefficiency between the net asset value of the company and the pricing that we have in the capital market is still there, and it's getting bigger. And therefore, we will take advantage of that. And you understand that it is very similar and better to buy back part of your vessels rather than buying Other vessels at net asset value of the company, and we are buying at a discount to net asset value. Of course we have to make certain, as we keep saying not to jeopardize the public nature of the company, and we will keep doing something like this provided we will not risk at any point, as regards to the liquidity of our stock and the public nature of the company. Hello?

Mr. Jost, please proceed. If there are no further questions, I'll turn the floor back over to management for any further or closing comments.

Thank you, again, for your interest and support to Diana Shipping Inc. We look forward to talking to you in the coming years. Thank you.

Thank you. That does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.