Diana Shipping Inc. · NYSE:DSX
Diana Shipping — Debt Investor Presentation (June 2021)
52 slides from Diana Shipping's debt investor presentation, June 2021
Slide 1: USD 100 million Senior Unsecured Bond Issue Investor Presentation
We create to share USD 100 million Senior Unsecured Bond Issue Investor Presentation June 2021
Slide 2: Forward Looking Statement
Forward Looking Statement Cautionary statement regarding onward-looking statements Matters discussed in this presentation may In addition to these important factors and the impact of the discontinuance of LIBOR We undertake no obligation, and specifically constitute forward-looking statements. The m
Slide 3: Disclaimer
Disclaimer ABOUT THIS PRESENTATION By reading this presentation (the "Presentation") or attending any meeting or oral presentation held in relation thereto, you (the "Recipient") will be deemed to have (i) agreed to all of the following restrictions and made the following undertakings and (ii) ackno
Slide 4: Disclaimer (cont.)
Disclaimer (cont.) None of the Company or the Arrangers, or any of their respective Representatives shall have any liability whatsoever (in negligence or otherwise) arising directly or indirectly from the use of this Presentation or its contents or otherwise arising in connection with the Issue, inc
Slide 5: Summary of Risk Factors
Summary of Risk Factors The below bullets summarize some of the principal risk factors related to an investment in our Company. Industry Specific Risk Factors Charter hire rates for dry bulk carriers are volatile, which may adversely affect our earnings, revenue and profitability and our ability t
Slide 6: Summary of Risk Factors
Summary of Risk Factors Risks Relating to Our Common Stock Our board of directors has suspended the payment of cash dividends on our common stock. We cannot assure you that our board of directors will reinstate dividend payments in the future, or when such reinstatement might occur. The market p
Slide 7: Agenda
Agenda 1 Transaction Summary 2 Company Overview 3 Market Fundamentals 4 Financial Highlights 5 Summary 6 Risk Factors 7 Appendix We create to share 7
Slide 8: Credit Highlights
Credit Highlights Leading dry bulk company with scale and track record through shipping cycles Modern fleet of 37 dry bulk carriers (~4.7 million DWT) with a weighted average age of ~10.2 years Leading pure The fleet comprises of 11 groups of sister ships (Panamax - Newcastlemax) providing fle
Slide 9: Agenda
Agenda 1 Transaction Summary 2 Company Overview 3 Market Fundamentals 4 Financial Highlights 5 Summary 6 Risk Factors 7 Appendix We create to share 9
Slide 10: Presenting Team
Presenting Team Semiramis Anastasios Ioannis Eleftherios Paliou Margaronis Zafirakis Papatrifon Director & Director, Director & President Chief Operating Officer Chief Executive Officer Chief Financial Officer, Chief Strategy Officer, Secretary & Treasurer Company’s confidence stems from our establi
Slide 11: Our legacy preserves our culture
Our legacy preserves our culture inspires our people and creates value for the future… Solid base Highest market to take capitalization … advantage $3.33 bn NYSE IPO… on October 29, 2007 of the access to capital markets challenges Fostering the transition ahead Creating a purposely to public listing
Slide 12: Diana's key points
Diana’s key points 37 vessels 4.7 MIL DWT 38.8 MIL TONES ON THE WATER CARRYING OF CARGO CAPACITY CARRIED IN 7 vessels 2020 MORTGAGE FREE* 38% NET DEBT/MARKET VALUE** 11 Groups 91% NET DEBT/RECYCLING VALUE** OF SISTER VESSELS USDm 86.0 OF CASH AT BANK** 98.6% AVERAGE FLEET UTILIZATION (Q1-2021) USDm
Slide 13: Focusing on a high-quality fleet to ensure operational excellence
Focusing on a high-quality fleet to ensure operational excellence Top quality operational platform even in a down market Diana Fleet Utilisation Baltic Dry Index (annual average; rhs) Kamsarmax 99.7 99.9 99.3 99.6 98.9 99.7 99.3 98.7 99.3 99.4 99.3 99.4 98.2 99.1 98.6 97.9 98.6 9% 100 8,000 8,000 Po
Slide 14: Chartering Activity year-to-date FY 2021
Chartering Activity year-to-date FY 2021 Secured charters on 13 vessels* 7 Panamax/Kamsarmax/Post-Panamax vessels chartered at a weighted average daily rate of $16,571 for a remaining average period of 169 days per vessel.** 6 Capesize/Newcastlemax vessels chartered at a weighted average daily r
Slide 15: Employment Strategy
Employment Strategy Non-speculative & disciplined employment Committed to a VESSEL TYPE BUILT RATE CHARTERER Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 New York Capesize 2010 $14,000 EGPN Bulk Carrier conservative Salt Lake City Capesize 2005 $13,000 C Transport chartering strategy Protefs Panamax
Slide 16: Strong relationships
Strong relationships with members of the shipping and financial industry Financial institutions Charterers Shipyards Classification Societies & others: Flag administrations | Investors | Recognized organizations | P&I Clubs | Port authorities | Manning agents Source: Company Information We create to
Slide 17: Diana ESG Framework
Diana ESG Framework Prioritising Sustainable Development Goals Diana Shipping Inc. uses double materiality assessments of ESG topics to ensure diligent follow-up of issues relevant to our business and to the areas of the world we operate in, i.e. SDG 4, 5, 13, and 14. Transparent and market leading
Slide 18: Agenda
Agenda 1 Transaction Summary 2 Company Overview 3 Market Fundamentals 4 Financial Highlights 5 Summary 6 Risk Factors 7 Appendix We create to share 18
Slide 19: Key Highlights of continued improving Dry Bulk Market
Key Highlights of continued improving Dry Bulk Market Growth in global trade remains the key underlying driver of shipping markets Strong Global Trade IMF forecasts global GDP to increase by 6.0% in 2021 and 4.4% for 2022 and liquid Secondhand Market Highly liquid S&P shipping market on averag
Slide 20: Dry Bulk – Time Charter Earnings
Dry Bulk – Time Charter Earnings Historical TC earnings for relevant Diana size segments 5,000 30000 30,000 Strong momentum in time 4,500 25000 charter rates post COVID-19 dip 25,000 4,000 3,500 20000 20,000 1yr TC rates (USD per day) 3,000 Baltic Dry Index 15,000 15000 2,500 2,000 10,000 10000 1,50
Slide 21: Dry Bulk - Asset Prices
Dry Bulk - Asset Prices Historical asset prices for 10y Panamax and Capesize Dry-bulk carriers 50 Strong momentum in time 45 charter rates is also reflected in rising asset 40 prices 35 30 USD million 25 20 15 10 5 0 Panamax 10 yr old Capesize 10 yr old 5yr average Panamax 5y average Capesize Source
Slide 22: Dry Bulk – Demand long-term growth
Dry Bulk – Demand long-term growth Commodity demand tends to correlate with economic growth Dry bulk trades in bn tonne-mile and GDP growth YoY 50,000 50,000 12% Iron ore Minor bulk Grains & Soybeans Coal Annual GDP World 45,000 45,000 10% 5.0% 40,000 40,000 8% 35,000 35,000 6% CAGR (2000-f2021) 30,
Slide 23: Dry Bulk – Demand drivers, short-term
Dry Bulk – Demand drivers, short-term For shipping, strong commodity prices reflect strong demand 260 Commodity prices have 240 recorded significant gains since Q4/20 as a rebound in economic growth has 220 spurred demand for energy, steel and other commodity- 200 related economic drivers Index poin
Slide 24: Dry Bulk - Supply
Dry Bulk - Supply Limited fleet growth going forward; estimated dry bulk fleet growth of 3.1% in 2021 and 1.2% in 2022 Dry bulk orderbook in million DWT Dry bulk orderbook in % of existing 350 120% fleet 300 100% The dry bulk orderbook is at orderbook is a 20-year low point, at a historical low tota
Slide 25: Dry Bulk – Fleet Age and Scrapping
Dry Bulk – Fleet Age and Scrapping Average dry-bulk world fleet is around 10 years; new regulation will accelerate scrapping Dry bulk age profile 120 6-10yrs: 39.7% 100 0-5yrs: 23.8% Orderbook: 80 11-15yrs: 5.7% mDWT >30yrs: 0.5% 21.8% 60 16-20yrs: 9.2% 21-25yrs: 3.9% 40 26-30yrs: 1.1% 20 0 >30 30 2
Slide 26: Dry Bulk – FFAs
Dry Bulk – FFAs Attractive supply & demand picture is reflected in firm FFAs January 2021 FFA levels 40000 40,000 Capesize: USD 14,500 per day Capesize 180 5TC FFA Panamax: USD 12,138 per day Panamax 82 5TC FFA 35000 35,000 33,750 32,950 30000 30,000 28,125 28,250 USD per day (Time charter equivalen
Slide 27: Agenda
Agenda 1 Transaction Summary 2 Company Overview 3 Market Fundamentals 4 Financial Highlights 5 Summary 6 Risk Factors 7 Appendix We create to share 27
Slide 28: Selected Financial & Other Data
Selected Financial & Other Data Three months ended March 31, 2021 2020 Statement of Operations Data ($ Millions) Time charter revenues 41.1 43.8 Voyage expenses 1.8 3.7 Vessel operating expenses 18.6 21.3 Net loss (1.3) (102.8) Net loss attributed to common stockholders (2.7) (104.3) Fleet data Aver
Slide 29: Established Track Record of Financial Performance
Established Track Record of Financial Performance Diana achieved quarterly TCE (lhs) vs. Baltic Dry Index (rhs) 18,000 18,000 3,500 3,500 chartering strategy helps to 3,000 3,000 16,000 16,000 reduce volatility inherent in 2,500 2,500 14,000 14,000 the dry bulk shipping market USD per day Index poin
Slide 30: Conservative Financial Profile
Conservative Financial Profile • Proven track record in the capital Loan amortization profile as of Q1 2021 adjusted for ABN AMRO markets exemplified through sustainability-linked loan and Senior Unsecured bond refinancing raising gross proceeds of USD 309 1st Nordea extension 2nd Nordea extension m
Slide 31: Consistently prudent Capital Management
Consistently prudent Capital Management Maintaining a sound financial profile through the cycle • Has utilized strong Net debt to vessels’ net value vs. Diana TCE and Baltic Dry Index markets to reduce 60,000 60,000 60% leverage and strengthen 47% 47% 50,000 50,000 50% Net debt to book value in % th
Slide 32: Modest All-in Breakeven Costs
Modest All-in Breakeven Costs • Wholly-owned ship management company, Free Cash Flow Breakeven of $12,350 providing cost-efficient in- 22% Net Interest Expense $1,342* house technical management Drydock Provision $294** 4% G&A $1,674*** • Strategic joint venture 3% with Wilhelmsen ensuring Operating
Slide 33: Breakeven vs Estimated Revenue for the remaining of 2021
Breakeven vs Estimated Revenue for Average Daily the remaining of 2021* TC Rate of Fixed Revenues $13,936***** for 72% of 2021 Estimated Cash Uses vs. TC Revenues Daily Estimated Cash Uses vs. Daily TC Revenues 180 20,000 20,000 $18,788 160 $155.6 18,000 18,000 16,000 16,000 + $6,438 140 + $53.3 per
Slide 34: Agenda
Agenda 1 Transaction Summary 2 Company Overview 3 Market Fundamentals 4 Financial Highlights 5 Summary 6 Risk Factors 7 Appendix We create to share 34
Slide 35: Diana Shipping Inc.'s Summary
Diana Shipping Inc.’s Summary Leading pure play dry bulk carrier company Legacy Listed on NYSE Experienced and creative Solid balance High reputation Strong since March 2005 management team, sheet in the shipping relationships energetic and ready community in the shipping cluster to deliver on the c
Slide 36: Agenda
Agenda 1 Transaction Summary 2 Company Overview 3 Market Fundamentals 4 Financial Highlights 5 Summary 6 Risk Factors 7 Appendix We create to share 36
Slide 37: Risk Factors (1/7)
Risk Factors (1/7) General • Investing in bonds and other securities issued by the Issuer • The absence of negative past experience associated with a involves inherent risks. As the Issuer is the parent company of given risk factor does not mean that the risks and uncertainties the Group, the risk f
Slide 38: Risk Factors (2/7)
Risk Factors (2/7) Industry Specific Risk Factors • Charter hire rates for dry bulk carriers are volatile, which may • We are subject to complex laws and regulations, including adversely affect our earnings, revenue and profitability and our environmental regulations that can adversely affect the co
Slide 39: Risk Factors (3/7)
Risk Factors (3/7) Issuer Specific Risk Factors • The market values of our vessels have declined in recent years • In the highly competitive international shipping industry, we and may further decline, which could limit the amount of funds may not be able to compete for charters with new entrants or
Slide 40: Risk Factors (4/7)
Risk Factors (4/7) Issuer Specific Risk Factors, cont. • We are exposed to U.S. dollar and foreign currency fluctuations and devaluations that could harm our reported revenue and results of operations. • Volatility of LIBOR and potential changes of the use of LIBOR as a benchmark could affect our pr
Slide 41: Risk Factors (5/7)
Risk Factors (5/7) Bond Specific Risk Factors • The Company's ability to make payments on and to refinance its which may otherwise be beneficial for the Company. The Bond indebtedness, including the Bonds, and to fund planned capital Terms will contain, inter alia, significant restrictions, includin
Slide 42: Risk Factors (6/7)
Risk Factors (6/7) Bond Specific Risk Factors cont. • The Bond Terms will provide that the Bonds shall be subject to • The terms and conditions of the Bond Terms will impose optional redemption by the Company at their outstanding significant operating and financial restrictions, which may principal
Slide 43: Risk Factors (7/7)
Risk Factors (7/7) Bond Specific Risk Factors cont. • The Bonds are being issued by the Company pursuant to exemptions from the prospectus requirements under applicable securities laws and furthermore have not been, and will not be, registered under the U.S. Securities Act or any United States state
Slide 44: Agenda
Agenda 1 Transaction Summary 2 Company Overview 3 Market Fundamentals 4 Financial Highlights 5 Summary 6 Risk Factors 7 Appendix We create to share 44
Slide 45: Income statement
Income statement Three months ended March 31, 2021 2020 Revenues $ Millions $ Millions Time charter revenues 41.1 43.8 Expenses Voyage expenses 1.8 3.7 Vessel operating expenses 18.6 21.3 Depreciation and amortization of deferred charges 10.0 11.6 General and administrative expenses 6.7 9.6 Manageme
Slide 46: Balance Sheet
Balance Sheet March 31, 2021 December 31, 2020 • As of March 31, 2021 Assets $ Millions $ Millions $411.4 million Total Debt* Cash, cash equivalents and restricted cash 86.0 82.9 Other current assets 27.4 41.8 • $86.0 million of Cash** Vessels, net 698.7 716.2 Other fixed assets, net 21.7 21.7 • Net
Slide 47: Investing in a disciplined manner at the low part of the cycle
Investing Baltic Exchange Dry Index in a disciplined manner at the low part of the cycle 11,000 11000 Vessel Acquisitions Vessel 10,000 10000 Purchased with 4-5 Divestments years charters Repurchase 9,000 attached, locking in of Company’s 9000 high charter rates shares compensating for 8,000 8000 hi
Slide 48: Fleet and Charter Overview
Fleet and Charter Overview Sister Gross Rate Comission Delivery Date Redelivery Date to No Vessel name DWT Type built Charterers Notes Ships* (USD per day) ** to Charterers*** Owners**** 1 PROTEFS 73,630 Panamax A 2004 10,650 5.00% Reachy International (HK) Co., Limited 08.02.2021 10.03.2022 - 20.05
Slide 49: 5-year Secondhand Values (1977-2021)
5-year Secondhand Values (1977-2021) 200 Panamax regression line 180 y = 0.001041x + 11.517918 R² = 0.880773 160 Capesize regression line 140 y = 0.000898x + 24.478031 R² = 0.896471 120 USD million 100 80 60 40 20 Panamax Capesize 0 00 20,000 40,000 60,000 80,000 80,000 100,000 100,000 120,000 120,0
Slide 50: 5-year Panamax values (sentiment)
5-year Panamax values (sentiment) 120 110 100 90 80 70 60 50 USD million 40 30 20 10 0 -10 -20 -30 -40 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 51: 5-year Capesize values (sentiment)
5-year Capesize values (sentiment) 220 200 180 160 140 120 USD million 100 80 60 40 20 0 -20 -40 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 52: We create to share dianashippinginc.com
We create to share dianashippinginc.com We create to share 52
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