DSX H1 2025 Results: Profit, Buybacks and Debt Reduction Amid Cash Drawdown

Q: What were Diana Shipping (DSX) revenues and net income for H1 2025?

Time charter revenues were $109.6 million and net income was $7.5 million for the six months ended June 30, 2025.

Q: How much cash did DSX have at June 30, 2025 and how did it change?

Cash, cash equivalents and restricted cash totaled $83.6 million , a decrease of $60.1 million versus the prior period reported figure.

Q: What is DSX’s outstanding long-term debt?

Total long-term debt principal outstanding was $499.0 million as of June 30, 2025, net of deferred financing costs reported as $492.0 million.

Filing Impact

(Neutral)

Filing Sentiment

(Neutral)

Form Type

6-K

Rhea-AI Filing Summary

Diana Shipping Inc. reported interim unaudited consolidated results for the six months ended June 30, 2025 showing operating revenues of $109.6 million and operating income of $24.0 million. Net income was $7.5 million and comprehensive income $10.7 million, driven in part by a $2.5 million gain on related-party investments and lower interest and finance costs which fell to $21.9 million from $23.7 million a year earlier. Time charter revenues were slightly lower year-over-year. Vessel operating expenses and total daily operating expenses were largely stable. Cash, cash equivalents and restricted cash declined by $60.1 million to $83.6 million, reflecting $23.0 million of share repurchases, $28.4 million of debt repayments and dividends paid. The company recognized gains on vessel disposals and increased investments in equity securities (fair value reported at $24.4 million). Long-term debt outstanding totaled $499.0 million (net of financing costs $492.0 million) and secured facilities include covenants and restricted cash requirements.

Positive

Net income of $7.5 million and comprehensive income of $10.7 million for the six months ended June 30, 2025
Interest and finance costs decreased to $21.9 million (down $1.8 million, or 8%) supporting improved net results
Gain on related-party investments of $2.5 million and recognized fair value of newly acquired equity securities at $24.4 million
Debt reduction and active capital return: $28.4 million of indebtedness repaid and $23.0 million used to repurchase common stock

Negative

Cash and restricted cash declined by $60.1 million to $83.6 million, driven by buybacks, debt repayments and dividends
Time charter revenues fell to $109.6 million from $113.6 million year-over-year
Significant long-term debt remains with principal of $499.0 million and ongoing covenant and restricted cash requirements
Material investing commitments remain, including $73.6 million of shipbuilding obligations and sizeable investments in joint ventures

Insights

TL;DR: Results show modest profitability with active balance sheet management but material cash outflows from buybacks and debt repayment.

The company generated positive net income of $7.5 million for the first half of 2025 versus a loss in the prior period, supported by gains on related-party investments and slightly lower finance costs. Time charter revenues declined marginally to $109.6 million while operating income was $24.0 million, indicating ongoing operating leverage. Cash decreased materially by $60.1 million due to share repurchases ($23.0 million), debt repayments ($28.4 million) and dividends. Long-term debt remains significant at $499.0 million with bank covenants and restricted cash of $18.5 million. The company continues to invest in newbuilds and joint ventures (Windward, Ecogas), increasing capital commitments. Overall the operational performance is modestly positive but liquidity and capital allocation choices are key near-term considerations.

TL;DR: Capital actions reduce leverage but lower cash; loan covenants and restricted cash requirements remain important risk points.

Diana repaid $28.4 million of indebtedness and repurchased $23.0 million of common stock, actions that lower outstanding leverage but also drew cash down to $83.6 million. Secured term loans and a $175.0 million senior unsecured bond remain in place; aggregate debt principal is $499.0 million with scheduled maturities and bank covenants including minimum liquidity and cross-default provisions. Restricted cash of $18.5 million must be maintained under facilities. The company has shipbuilding commitments of $73.6 million and ongoing finance liabilities from sale and leaseback arrangements. These obligations and covenant schedules are material to near-term liquidity and credit flexibility.

09/15/2025 - 09:26 AM

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FORM

6-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.

20549

REPORT OF FOREIGN PRIVATE

ISSUER PURSUANT TO RULE 13A-16 OR

15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of September

2025

Commission File Number:

001-32458

DIANA SHIPPING INC.

(Translation of registrant's name into

English)

Pendelis 16, 175 64 Palaio Faliro, Athens, Greece

(Address of principal executive office)

Indicate by

check mark

whether the registrant

files or

will file annual

reports under

cover of

Form 20-F

or Form

40-

Form 20-F [X]

Form 40-F [

]

INFORMATION CONTAINED

IN THIS FORM 6-K REPORT

Attached to

this Report

on Form

6-K as

Exhibit 99.1

are the

unaudited interim

consolidated financial

statements of

Diana Shipping Inc. (the "Company") as of and for the six

months ended

June 30, 2025

The

information

contained

this

Report

Form

6-K

hereby

incorporated

reference

into

the

Company's

registration statements on Form F-3

(File Nos. 333-280693 and 333-266999)

that were filed with the

U.S. Securities

and Exchange Commission and became effective on

September 9, 2024 and September 16, 2022, respectively

SIGNATURES

Pursuant to

the requirements

of the

Securities Exchange

Act of

1934, the

registrant has

duly caused

this report

be signed on its behalf by the undersigned, thereunto duly authorized.

DIANA SHIPPING INC.

(registrant)

Dated: September 15, 2025

By:

/s/ Maria Dede

Maria Dede

Co-Chief Financial Officer

Management's Discussion and Analysis Of

Financial Condition and Results Of Operations

The

following

management's

discussion

and

analysis

should

read

conjunction

with

our

interim

unaudited

consolidated

financial

statements

and

their

notes

attached

hereto.

This

discussion

contains

forward-looking

statements

that

reflect

our

current

views

with

respect

future

events

and

financial

performance.

Our

actual

results

may

differ

materially

from

those

anticipated

these

forward-looking

statements.

For additional information relating

to our management's

discussion and analysis

of financial

condition

and

results

operations,

please

see

our

annual

report

form 20-F

for

the

year

ended

December 31, 2024 filed with the with the SEC on March 21, 2025.

Our Operations

charter

our

vessels,

owned

and

bareboat

chartered-in,

customers

primarily

pursuant

short-,

medium-

and

long-term

time

charters.

Under

our

time

charters,

the

charterer

typically

pays

fixed

daily charter hire rate and bears all voyage expenses, including the cost of bunkers (fuel oil) and port and

canal

charges.

remain

responsible

for

paying

the

chartered

vessel's

operating

expenses,

including

the cost

of crewing,

insuring, repairing, and

maintaining the vessel,

the costs

of spares and

consumable

stores, tonnage taxes

and other miscellaneous

expenses, and we

also pay

commissions to one

or more

unaffiliated ship brokers and to

in-house brokers associated with the charterer for

the arrangement of the

relevant charter.

The

following

table

presents

certain

information

concerning

the

dry

bulk

carriers

our

fleet,

the

ate of this report.

Fleet Employment (As of September 12, 2025)

VESSEL

SISTE

SHIPS*

GROSS RATE

(USD PER DAY)

COM**

CHARTERERS

DELIVERY

DATE TO

CHARTERERS**

REDELIVERY DATE TO

OWNERS****

NOTES

BUILT DWT

9 Ultramax Bulk Carriers

DSI Phoenix

16,500

5.00%

Bulk Trading SA

6-May-24

8-Aug-25

2017 60,456

13,500

4.75%

Cargill Ocean Transportation

(Singapore) Pte. Ltd.

8-Aug-25

1/Oct/2026 - 30/Nov/2026

DSI Pollux

14,000

4.75%

Cargill Ocean Transportation

(Singapore) Pte. Ltd.

28-Dec-23

4-Sep-25

2015 60,446

DSI Pyxis

13,100

5.00%

Stone Shipping Ltd

8-Nov-24

20/Feb/2026 - 20/Apr/2026

2018 60,362

DSI Polaris

15,400

5.00%

Stone Shipping Ltd

20-Jul-24

1-Jul-25

2018 60,404

12,250

4.75%

Cargill Ocean Transportation

(Singapore) Pte. Ltd.

1-Jul-25

21/Jul/2026 - 21/Sep/2026

DSI Pegasus

15,250

4.75%

Cargill Ocean Transportation

(Singapore) Pte. Ltd

5-Sep-24

25-Jul-25

2015 60,508

14,250

4.75%

15-Aug-25

20/May/2026 - 20/Jul/2026

DSI Aquarius

13,300

5.00%

Bunge SA, Geneva

6-Dec-24

6/Oct/2025 - 21/Dec/2025

2016 60,309

DSI Aquila

12,250

5.00%

Western Bulk Carriers AS

21-Jan-25

17-Sep-25

3,4

2015 60,309

DSI Altair

15,750

5.00%

Propel Shipping Pte. Ltd.

28-Sep-24

1/Nov/2025 - 31/Dec/2025

2016 60,309

DSI Andromeda

14,000

4.75%

Cargill Ocean Transportation

(Singapore) Pte. Ltd

28-Mar-25

15/Nov/2025-15/Jan/2026

2016 60,309

6 Panamax Bulk Carriers

LETO

12,275

4.75%

Cargill International SA, Geneva

4-Apr-25

16/Jul/2026 - 16/Sep/2026

2010 81,297

SELINA

6,500

5.00%

Reachy Shipping (SGP) Pte.

Ltd.

13-May-25

12-Jul-25

2010 75,700

MAERA

8,400

5.00%

China Resource Chartering

Limited

15-Dec-24

20/Sep/2025-20/Nov/2025

2013 75,403

ISMENE

11,000

5.00%

China Resource Chartering Pte.

Ltd.

24-Apr-25

20/Mar/2026 - 20/May/2026

2013 77,901

CRYSTALIA

13,900

5.00%

Louis Dreyfus Company Freight

Asia Pte. Ltd.

4-May-24

4/Feb/2026 - 4/Jun/2026

2014 77,525

ATALANDI

10,100

5.00%

Stone Shipping Ltd

8-Jun-25

15/Jun/2026 - 15/Aug/2026

2014 77,529

6 Kamsarmax Bulk Carriers

MAIA

11,600

5.00%

Paralos Shipping Pte. Ltd.

9-Dec-24

1/Nov/2025 - 31/Dec/2025

2009 82,193

MYRSINI

13,000

4.75%

Cargill International SA, Geneva

26-Feb-25

1/Jan/2026 - 28/Feb/2026

2010 82,117

MEDUSA

13,000

4.75%

Cargill International SA, Geneva

16-Mar-25

15/May/2026 - 15/Jul/2026

2010 82,194

MYRTO

12,000

5.00%

Nippon Yusen Kabushiki Kaisha,

Tokyo

23-Dec-24

1/Mar/2026 - 15/May/2026

2013 82,131

ASTARTE

14,000

5.00%

Paralos Shipping Pte. Ltd.

19-Aug-24

31-Jul-25

2013 81,513

12,500

5.00%

Propel Shipping Pte. Ltd.

2-Aug-25

16/Aug/2026 - 16/Oct/2026

LEONIDAS P. C.

17,000

5.00%

Ming Wah International Shipping

Company Limited

22-Feb-24

28-Aug-25

2011 82,165

4 Post-Panamax Bulk Carriers

AMPHITRITE

12,100

5.00%

Cobelfret S.A., Luxembourg

8-Jan-25

1/Jan/2026 - 15/Mar/2026

2012 98,697

POLYMNIA

17,500

5.00%

Reachy Shipping (SGP) Pte.

Ltd.

8-Jun-24

17-Aug-25

2012 98,704

14,000

5.00%

Oldendorff Carriers GmbH & Co.

17-Aug-25

10/Apr/2026 - 10/Jun/2026

ELECTRA

14,000

4.75%

Aquavita International S.A.

3-Jun-24

15/Oct/2025 - 31/Dec/2025

2013 87,150

PHAIDRA

9,750

5.00%

SwissMarine Pte. Ltd.,

Singapore

31-May-25

1/Jan/2026 - 28/Feb/2026

2013 87,146

8 Capesize Bulk Carriers

SEMIRIO

16,650

5.00%

Solebay Shipping Cape

Company Limited, Hong Kong

11-Feb-25

15/Feb/2026 - 15/Apr/2026

2007 174,261

NEW YORK

17,600

5.00%

SwissMarine Pte. Ltd.,

Singapore

11-Jan-25

15/Jan/2026 - 30/Mar/2026

2010 177,773

SEATTLE

17,500

5.00%

Solebay Shipping Cape

Company Limited, Hong Kong

1-Oct-23

15/Sep/2025 - 30/Sep/2025

2011 179,362

S. PALIOS

27,150

5.00%

Bohai Shipping (HEBEI) Co., Ltd

7-May-24

1/Nov/2025 - 31/Dec/2025

2013 179,134

G. P. ZAFIRAKIS

26,800

5.00%

Nippon Yusen Kabushiki Kaisha,

Tokyo

16-Sep-24

16/Aug/2026 - 16/Nov/2026

2014 179,492

SANTA

BARBARA

22,000

5.00%

Mitsui O.S.K. Lines, Ltd.

27-Dec-24

20/Oct/2025 - 20/Dec/2025

2015 179,426

NEW ORLEANS

20,000

5.00%

Kawasaki Kisen Kaisha, Ltd.

7-Dec-23

20-Sep-25

3,11

2015 180,960

FLORIDA

25,900

5.00%

Bunge S.A., Geneva

29-Mar-22

29/Jan/2027 - 29/May/2027

2022 182,063

4 Newcastlemax Bulk Carriers

LOS ANGELES

28,700

5.00%

Nippon Yusen Kabushiki Kaisha,

Tokyo

20-Jul-24

1/Oct/2025 - 15/Dec/2025

2012 206,104

PHILADELPHIA

21,500

5.00%

Refined Success Limited

29-May-25

9/Jun/2026 - 8/Aug/2026

2012 206,040

SAN

FRANCISCO

26,000

5.00%

SwissMarine Pte. Ltd.,

Singapore

1-Mar-25

25/Oct/2026 - 25/Dec/2026

2017 208,006

NEWPORT

NEWS

25,000

5.00%

Bohai Ocean Shipping

(Singapore) Holding Pte. Ltd.

16-Jun-25

1/Sep/2026 - 31/Oct/2026

2017 208,021

* Each dry bulk carrier is a “sister ship”, or closely

similar, to other dry bulk carriers that have the same letter.

** Total commission percentage paid to third parties.

*** In case of newly acquired vessel with

time charter attached, this date refers to the expected/actual

date of delivery of the vessel to the Company.

**** Range of redelivery dates, with the actual

date of redelivery being at the Charterers’

option, but subject to the terms, conditions, and

exceptions of

the particular charterparty.

1Currently without an active charterparty. Vessel on scheduled drydocking.

2Vessel on scheduled drydocking from July 25, 2025 to August 15,

2025.

Based on latest information.

4Charterers have agreed to compensate the Owners,

for all the days over and above the maximum

redelivery date (September 5, 2025), at a hire

rate

equal to double the agreed hire rate or the rate

of 115% of the average of the relevant Baltic Tess 58 Supramax Index, whichever of the two is higher.

5Bareboat chartered-in for a period of ten years.

6Vessel was sold and delivered to her new Owners on July 15,

2025.

7The charter rate was US$9,000 per day for

the first thirty-five (35) days of the charter period.

8The charter rate was US$8,750 per day for

the first fifty (50) days of the charter period.

9Vessel currently off hire for drydocking.

10The charter rate was US$6,300 per day for

the first trip of the charter period.

1Bareboat chartered-in for a period of eight years.

Factors Affecting Our Results of Operations

We believe that our results of operations are affected by the following factors:

(1)

Average

number

vessels

the

number

vessels

that

constituted

our

fleet

for

the

relevant

period,

measured by

the

sum

the

number

days

each

vessel

was

part

our

fleet

during

the

period divided by the number of calendar days in the period.

(2)

Ownership

days

are

the

aggregate

number of

days in

period

during

which each

vessel

our

fleet has

been owned

by us.

Ownership days

are an

indicator of

the size

of our

fleet over

a period

and

affect both the amount of revenues and the amount of expenses that we record during

a period.

(3)

Available days are the

number of our ownership days less

the aggregate number of days that

our

vessels

are

off-hire

due

scheduled

repairs

under

guarantee,

vessel

upgrades

special

surveys

and the

aggregate amount

time

that we

spend

positioning our

vessels for

such events.

The

shipping industry

uses available

days to

measure the

number of

days in

a period

during which

vessels

should be capable of

generating revenues. Our method of

computing available days may not necessarily

be comparable to available days of other companies.

(4)

Operating days

are the

number of

available days

in a

period less

the aggregate

number of

days

that

our

vessels

are

off-hire

due

any

reason,

including

unforeseen

circumstances.

The

shipping

industry uses operating days

to measure the aggregate number

of days in a

period during which vessels

actually generate revenues.

(5)

We calculate

fleet utilization

by dividing

the number

of our

operating days

during a

period by

the

number of

our available days

during the period.

The shipping

industry uses fleet

utilization to measure

company's

efficiency

finding

suitable

employment

for

its

vessels

and minimizing

the

number of

days

that its

vessels are

off-hire for

reasons other

than scheduled

repairs or

repairs under

guarantee, vessel

upgrades, special surveys or vessel positioning for such events.

(6)

Time

charter

equivalent

rate,

TCE,

defined

our

time

charter

revenues

less

voyage

expenses during

a period

divided by

the number

of our

available days

during the

period. Our

method of

computing

TCE

rate

may

not

necessarily

comparable

TCE

rates

other

companies

due

differences

methods

calculation.

TCE

non-GAAP

measure,

and

management

believes

useful

investors

because

standard

shipping

industry

performance

measure

used

primarily

compare daily

earnings generated

by vessels

on time

charters with

daily earnings

generated by

vessels

voyage

charters,

because

charter

hire

rates

for

vessels

voyage

charters

are

generally

not

expressed

per

day

amounts

while

charter

hire

rates

for

vessels

time

charters

are

generally

expressed

such

amounts.

TCE

used

management

assess

and

compare

the

vessels’

profitability.

(7)

Daily

vessel

operating

expenses,

which

include

crew

wages

and

costs,

the

cost

insurance,

expenses

relating

repairs

and

maintenance,

the

costs

spares

and

consumable

stores,

tonnage taxes

and other

miscellaneous expenses,

are calculated

by dividing

vessel operating

expenses

by ownership days for the relevant period.

The following table reflects such factors for the periods indicated:

For the six months ended June 30,

2025

2024

Ownership days

6,768

7,162

Available days

6,632

7,112

Operating days

6,602

7,078

Fleet utilization

99.5%

Time charter equivalent (TCE) rate

15,615

15,078

The following table reflects the calculation of our TCE rates for

the periods presented:

For the six months ended June 30,

2025

2024

in thousands of US Dollars, except for days and

TCE rates

Time charter revenues

109,625

113,648

less: Voyage expenses

(6,064)

(6,413)

Time charter equivalent revenues

103,561

107,235

Available days

6,632

7,112

Time charter equivalent (TCE) rate

15,615

15,078

Time Charter Revenues

Our revenues are driven primarily by

the number of vessels in our

fleet, the number of days during which

our

vessels

operate

and

the

amount

daily

charter

hire

rates

that

our

vessels

earn

under

charters,

which, in turn, are affected by a number of factors, including:

●

the duration of our charters;

●

our decisions relating to vessel acquisitions and disposals;

●

the amount of time that we spend positioning our vessels;

●

the amount of time that our vessels spend in drydock undergoing

repairs;

●

maintenance and upgrade work;

●

the age, condition and specifications of our vessels;

●

levels of supply and demand in the dry bulk shipping industry.

Vessels

operating on time

charters for a

certain period of

time provide more

predictable cash flows

over

that

period

time

but

can

yield

lower

profit

margins than

vessels

operating in

the

spot

charter market

during periods characterized by favorable market conditions. Vessels operating in the spot charter market

generate

revenues

that

are

less

predictable

but

may

enable

their

owners

capture

increased

profit

margins during

periods of

improvements in

charter rates

although their owners

would be

exposed to the

isk of

declining charter rates,

which may have

a materially adverse

impact on financial

performance. As

we employ vessels

on period charters,

future spot charter

rates may be

higher or lower

than the rates

which

have

employed

our

vessels

period

charters.

Our

time

charter

agreements

subject

counterparty risk.

In depressed

market conditions,

charterers may

seek to

renegotiate the

terms of

their

existing

charter

parties

avoid

their

obligations

under

those

contracts.

Should

counterparty

fail

honor their obligations under agreements with

us, we could sustain significant losses

which could have a

material adverse effect on our business, financial condition, results of operations

and cash flows.

Voyage Expenses

incur

voyage

expenses

that

mainly

include

commissions

because

all

our

vessels

are

employed

under

time

charters that

require the

charterer to

bear voyage

expenses such

bunkers (fuel

oil),

port

and canal

charges. Although

the charterer

bears the

cost of

bunkers, we

also have

bunker gain

or loss

deriving

from

the

price

differences

bunkers.

When

vessel

delivered

charterer,

bunkers

are

purchased

the

charterer

and

sold

back

the

redelivery

the

vessel.

Bunker

gain,

loss,

results

when

vessel

redelivered

her

charterer

and

delivered

the

charterer

different

bunker prices, or quantities.

currently pay

commissions ranging

from

4.75% to

5.00% of

the

total

daily charter

hire rate

each

charter to unaffiliated ship brokers and in-house brokers associated with the charterers,

depending on the

number of brokers

involved with arranging the

charter. In

addition, we pay

a commission to

DWM and to

DSS for

those vessels

for which

they provide

commercial management services.

The commissions

paid

DSS

are

eliminated

from

our

consolidated

financial

statements

intercompany

transactions.

The

effect

bunker

prices

cannot

determined,

gain

loss

from

bunkers

results

mainly

from

the

difference in

the value

of bunkers

paid by

the Company

when the

vessel is

redelivered to

the Company

from the

charterer under

the vessel’s

previous time

charter agreement

and the

value of

bunkers sold

the Company when the vessel is delivered to a new charterer.

Vessel Operating Expenses

Vessel

operating

expenses

include

crew

wages

and

costs,

the

cost

insurance,

expenses

relating

repairs

and

maintenance,

the

cost

spares

and

consumable

stores,

tonnage

taxes,

environmental plan costs and

HSQ and vetting. Our

vessel operating expenses generally represent fixed

costs.

Vessel Depreciation

The

cost

our

vessels

depreciated

straight-line

basis

over

the

estimated

useful

life

each

vessel. Depreciation is based on the

cost of the vessel less

its estimated salvage value. We

estimate the

useful life of

our dry bulk

vessels to be

25 years from the

date of initial

delivery from the

shipyard, which

we believe

is common

in the

dry bulk

shipping industry.

Furthermore, we estimate

the salvage

values of

our

vessels

based

historical

average

prices

the

cost

the

light-weight

ton

vessels

being

scrapped.

General and Administrative Expenses

incur

general

and

administrative

expenses

which

include

our

onshore

expenses

such

payroll

expenses

employees,

executive

officers,

directors

and

consultants,

compensation

cost

restricted stock

awarded to

senior management

and non-executive

directors, traveling,

promotional and

other

expenses

the

public

company,

such

legal

and

professional

expenses

and

other

general

xpenses. General

and administrative

expenses are

not affected

by the

size of

the fleet.

However,

they

are affected by the exchange rate of the Euro to US Dollars,

as about half of our administrative expenses

are in Euro.

Interest and Finance Costs

We incur interest expenses and financing costs in

connection with vessel-specific debt, senior unsecured

bond

and

finance

liabilities.

June

30,

2025,

total

long-term

debt

amounted

$499.0

million

and

finance liabilities amounted to $119.1 million.

manage

our

exposure

interest

rates

maintaining

mix

floating

and

fixed

interest

rate

financing agreements. Floating rate agreements include secured loan facilities and fixed rate agreements

include

leases

and

our

senior

unsecured

bond.

Also,

2023,

entered

into

interest

rate

swap

for 30% of our $100 million loan facility with DNB, dated June 26, 2023, under which

we pay fixed interest

and receive floating.

Inflation

Since

2022

there

have been

significant

global

inflationary pressures

which have

affected

our

operating

and drydocking costs.

Results of Operations

Six months ended June 30, 2025, compared to the six months ended

June 30, 2024

Time

charter revenues.

Time

charter revenues

decreased by

$4.0 million,

or 4%,

to $109.6

million for

the

six

months

ended

June

30,

2025,

compared

$113.6

million

for

the

same

period

2024.

The

decrease

time

charter

revenues

was

due

the

decreased

operating

days

the

six

months

ended

June 30, 2025, compared to the same period last year,

resulting from the decrease in the size of the fleet

compared to

the

same period

last year.

Operating days

for the

six months

ended June

30, 2025,

were

6,602 compared

to 7,078

for the

same period

of 2024.

This decrease

was partly

offset by

the increased

average

time

charter

equivalent

rate

$15,615

per

vessel

per

day

that

the

Company

achieved

for

its

vessels

the

six

months

ended

June

30,

2025,

compared

$15,078

the

same

period

2024,

representing a 4% increase.

Voyage expenses.

Voyage

expenses decreased by

$0.3 million, or

5%, to

$6.1 million in

the six

months

ended June 30, 2025, as compared to $6.4 million in the

six months ended June 30, 2024. The decrease

was mainly

due to

commissions, for

which voyage

expenses is

primarily comprised

of and

which in

the

six

months

ended

June

30,

2025

decreased

$5.5

million

compared

$5.8

million

the

six

months

ended

June

30,

2024,

due

the

decrease

revenues.

further

decrease

derived

from

the

decrease

miscellaneous

expenses

$0.3

million

compared

$0.5

million

the

six

months

ended

June 30, 2024.

This decrease was partly offset by a loss on bunkers amounting to $0.3 million compared

to $0.1

million in

the same

period of

2024. The

loss on

bunkers was

mainly due

to the

difference in

the

price

bunkers

paid

the

Company

the

charterers

the

redelivery

the

vessels

from

the

charterers under the previous charter party agreements and the price of bunkers paid by

charterers to the

Company on the delivery of the same vessels to their charterers

under new charter party agreements.

Vessel

operating

expenses.

Vessel

operating

expenses

decreased

$2.1

million,

5%,

$40.0

million in

the six

months ended

June 30,

2025, compared to

$42.1 million in

the six

months ended

June

30, 2024. The decrease in operating expenses is mainly attributable to the decrease in ownership days in

the six months ended June 30,

2025 by 394 days, which was

due to the decrease in the

size of the fleet.

decrease

operating

expenses

was

partly

offset

increased

crew

cost,

mainly

due

the

fluctuation in

the exchange

rates (USD/EUR),

crew travelling

expenses and

training for

crew.

Total

daily

operating expenses

were $5,905

in the

six months

ended June

30, 2025,

compared to

$5,883 in the

six

months ended June 30, 2024.

Depreciation

and

amortization

deferred

charges.

Depreciation

and

amortization

deferred

charges

increased by

$0.7 million, or

3%,

$22.8 million in

the

six

months

ended

June

30,

2025, compared

$22.1

million

the

six

months

ended

June

30,

2024.

This

fluctuation was

attributed to

the

increased

amortization

deferred cost,

due to

the

increased

number

vessels

that

underwent

scheduled

drydock

and special surveys in

the first half of

2025 compared to the

same period in 2024.

This was partly offset

decreased depreciation due to the decrease in the size of the fleet.

General and

administrative expenses

. General and

administrative expenses

increased by

$0.4 million,

2%, to

$17.1 million

in the

six months

ended June

30, 2025,

compared to

$16.7 million

in the

six months

ended

June

30,

2024.

The

increase

was

mainly

due

increased

cost

restricted

stock

resulting

from

increased

number

vested

shares,

including

the

accelerated

vesting

restricted

two

board

members

who resigned in May

2025 and the compensation

cost of these shares

was recorded on the

date

of their resignation. A further increase was attributed due to increased payroll costs.

Management fees to related

party.

Management fees to a related

party amounted to $0.6

million in the

six

months

ended

June

30,

2025,

compared to

$0.7

million in

the

six

months

ended

June

30,

2024. The

decrease is attributable

to the decreased

average number of

vessels managed by

DWM due to the

sale of

vessel Alcmene.

Gain on sale

of vessels

. Gain on

sale of

vessels amounted to

$1.5 million in

the six

months ended June

30, 2025,

which is attributed

to the sale

of vessel Alcmene

during the first

quarter of 2025,

as compared

$1.6 million

in the

six months

ended June

30, 2024,

which is

attributed to

the sale

of vessel

Artemis

during the first quarter of 2024.

Interest expense and

finance costs.

Interest and finance

costs decreased by

$1.8 million or

8% to $21.9

million in

the six

months ended

June 30,

2025, compared to

$23.7 million in

the six

months ended

June

30, 2024. The decrease is attributed to the decreased outstanding balance

of debt and finance liabilities.

Gain(loss)

derivative instruments.

Loss on

derivative instruments amounted to

$0.2

million

the

six

months ended June 30, 2025,

as compared to a gain of

$0.4 million in the same

period of 2024, which is

attributable to the gain/(loss) from the interest rate swap with DNB which the Company entered on July 6,

2023.

Gain/(loss) on related party investments.

Gain on related

party investments

amounted

to $2.5 million

in the

six months

ended June

30, 2025,

compared to

a loss

of $1.4

million for

the same

period of

2024 which

derives from the fair value measurement of the investment in OceanPal.

Loss on equity

securities.

Loss on equity securities

amounted to $0.4 million

both in the six

months ended

June 30,

2025 and

2024.

In 2023,

the Company

acquired equity

securities of

an entity

listed in

the NYSE

which

were

sold

during

the

first

quarter

2024

and

recorded

realized

loss

$0.4

million.

During

the

second

quarter

2025,

the

Company

acquired

equity

securities

entity

listed

the

NYSE,

which

resulted in an unrealized loss of $0.4

million.

Gain/(loss)

warrants.

Gain

warrants

amounted

$0.5

million

the

six

months

ended

June

30,

2025, compared to

a loss

of $6.8

million for the

same period of

2024, which

is mainly

attributable to

the

remeasurement

warrant

liability

and

the

gain

loss

from

the

settlement

the

warrants

that

were

xercised.

Loss from

equity method

investments.

Loss from

equity method

investments amounted to $0.7 million in

the

six months

ended June

30,

2025, compared to

$0.2

million in the

six

months ended

June 30,

2024,

which is mainly attributed to the loss from the investment in Windward and DWM.

Liquidity and Capital Resources

Historically,

finance

our

short-term

and

long-term

capital

requirements

with

cash

from

operations,

cash at

banks, equity contributions

from shareholders, long-term

bank debt, finance

liabilities and senior

unsecured

bonds.

Our

main

uses

funds

have

been

capital

expenditures

for

the

acquisition

and

construction of

new vessels,

expenditures incurred

in connection

with ensuring

that our

vessels comply

with international and

regulatory standards, repayments

of bank

loans, repurchase of

our common stock

and

payment

dividends.

believe

that

these

sources

funds

will

sufficient

meet

our

short-

term and long-term liquidity needs.

Our

short-term

liquidity requirements

include capital

expenditures in

connection with

our

equity method

investments,

expenditures

relating

drydocking

vessels

comply

with

international

and

regulatory

standards, repayments

bank

loans, repurchase

our

common stock,

payment

dividends and

our

bareboat

charters.

Our

primary

sources

short-term

liquidity

include

cash

generated

from

operating

activities and sale of vessels, available cash balances and proceeds from

the exercise of warrants, if any.

Our

long-term

liquidity

requirements

include

funding

our

newbuilding

vessel

installments,

interest

and

principal

payments

outstanding

debt,

payment

dividends,

expenditures

for

vessel

efficiency

upgrades

and

drydock

costs.

Sources

funding

for

our

long-term

liquidity

requirements

include

cash

flows from operations, bank borrowings, issuance of debt and equity

securities, and vessel sales.

June

30,

2025,

and

December

31,

2024,

working

capital,

which

current

assets

minus

current

liabilities, including

the current

portion of

long-term debt,

amounted to

$103.9 million

and $126.4

million,

respectively.

Cash

and

cash

equivalents,

including restricted

cash,

was

$83.6 million

June

30,

2025, and

$143.7

million on December

31, 2024. Restricted cash

consists of the

minimum liquidity requirements under

our

loan

facilities.

June

30,

2025,

and

December

31,

2024,

restricted

cash,

current

and

non-current,

amounted to

$18.5 million and

$19.0 million, respectively.

Also, as of

June 30,

2025, and December

31,

2024,

time

deposits

with

maturities

above

three

months

amounted

$66.0

million

and

$63.5

million,

respectively.

Our

cash

and

cash

equivalents,

restricted

cash

and

time

deposits

represent

our

unused

sources of liquidity to meet our short-

and long-term obligations.

Net Cash Provided by Operating Activities

Net cash

provided by

operating activities

decreased by

$23.4 million, or

48%. For

the six

months ended

June

30,

2025,

net

cash

provided

operating

activities

was

$25.8 million

compared

net

cash

provided by operating activities of

$49.2 million in the six

months ended June 30,

2024. This decrease in

cash from operating activities was mainly due to the sale of the equity securities during the first quarter of

2024, the

increase in

drydock costs

and the

decreased revenues

due to

the decrease

in the

size of

the

fleet.

Net Cash Used in Investing Activities

Net

cash

used

investing

activities

was

$29.3 million

for

the

six

months

ended

June

30,

2025,

which

onsists of $0.7 million paid for vessel acquisitions and improvements; $11.5

million of proceeds from the

sale of

vessel Alcmene

during the

first quarter

of 2025;

$40.3 million

paid

for

investments consisting

$15.5 million advances to Windward and Ecogas

to fund the construction of vessels and

$24.8 million for

the

acquisition of

equity securities

of a

listed entity;

$3.5 million

received as

return of

capital due

to the

fact that a new partner was admitted to the joint venture of Windward; $17.5 million

of proceeds from time

deposits that

were placed

during prior

year on

time deposits

with maturities

of over

three months;

$20.0

million

placed

time

deposits

with

maturities

over

three

months

and

$0.8

million

paid

acquire

property and other assets.

Net

cash

used

investing

activities

was

$13.6

million

for

the

six

months

ended

June

30,

2024,

which

consists

$16.7

million

paid

for

vessel

acquisitions

and

improvements

due

new

regulations;

$12.5

million

proceeds

from

the

sale

vessel

Artemis

during

the

first

quarter

2024;

$26.7

million

paid

mainly

for

the

investment

Windward

consisting

advances

fund

the

construction

four

vessels

and working capital;

$2.8 million paid to

acquire property and

other assets and $20.0

million of proceeds

from time deposits that were placed prior year on time deposits

with maturities of over three months.

Net Cash Used in Financing Activities

Net

cash

used

financing

activities

was

$56.6 million

for

the

six

months

ended

June

30,

2025,

which

consists of $23.0 million payment for the repurchase of common stock; $28.4 million of indebtedness that

repaid;

and

$2.9

million

and

$2.3

million

dividends

paid

our

Series

Preferred

Stock

and

common stock, respectively.

Net

cash

used

financing

activities

was

$37.1

million

for

the

six

months

ended

June

30,

2024,

which

consists of $14.7 million net proceeds from issuance of common stock; $30.5 million of indebtedness that

we repaid; $2.9 million

and $18.4 million of

dividends paid on our

Series B Preferred Stock

and common

tock,

respectively.

F-1

Page

DIANA SHIPPING INC.

INDEX TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December

31, 2024

......

F-2

Unaudited

Consolidated

Statements

Income/(Loss)

for

the

six

months

ended

June

30,

2025 and 2024

................................

......................

F-3

Unaudited

Consolidated

Statements

Comprehensive

Income/(Loss)

for

the

six

months

ended June 30, 2025 and 2024

................................

..............................

F-3

Unaudited Consolidated Statements

of Stockholders' Equity

for the

six months

ended June

30, 2025 and 2024 ................................................................

................................

.................

F-4

Unaudited Consolidated Statements of Cash Flows for the six months ended

June 30, 2025

and 2024

................................

F-5

otes to Unaudited Interim Consolidated Financial Statements

.............................................

F-6

F-2

DIANA SHIPPING INC.

CONSOLIDATED BALANCE SHEETS

June 30, 2025 (unaudited) and December 31,

2024

(Expressed in thousands of U.S. Dollars – except

for share and per share data)

June 30, 2025

December 31, 2024

ASSETS

Current Assets

Cash and cash equivalents

65,098

124,666

Time deposits

66,000

63,500

Accounts receivable, trade

5,101

6,565

Due from related parties (Note 3)

136

194

Inventories

4,333

4,193

Prepaid expenses and other assets

9,922

7,490

Investments in equity securities (Note 4(b))

24,353

Vessel held for sale

9,311

Total Current Assets

184,254

206,608

Fixed Assets:

Advances for vessels under construction (Note 5)

20,241

19,558

Vessels, net (Note 5)

796,888

833,412

Property and equipment, net (Note 6)

27,529

27,175

Total fixed assets

844,658

880,145

Other Noncurrent Assets

Restricted cash, non-current (Note 7)

18,500

19,000

Due from related parties, non-current (Note 3)

117

155

Equity method investments (Note 3)

57,301

42,826

Investments in a related party (Note 4(a))

6,895

4,415

Other non-current assets

Deferred costs

19,459

17,838

Total Non-current Assets

946,961

964,410

Total Assets

1,131,215

1,171,018

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Long-term debt, current, net of deferred financing

costs (Note 7)

45,292

45,230

Finance liabilities, current (Note 8)

9,820

9,608

Accounts payable

10,992

8,990

Due to related parties (Note 2 and 3)

165

190

Accrued liabilities

9,951

11,896

Deferred revenue

4,073

4,235

Fair value of derivatives (Note 7)

Total Current Liabilities

80,371

80,180

Non-current Liabilities

Long-term debt, net of current portion and deferred

financing costs (Note 7)

446,722

469,387

Finance liabilities, net of current portion (Note 8)

108,373

113,300

Fair value of derivatives (Note 7)

313

134

Warrant liability (Note 10(g))

1,297

1,802

Other non-current liabilities

1,297

1,158

Total Noncurrent Liabilities

558,002

585,781

Commitments and contingencies (Note 9)

Stockholders' Equity

Preferred stock (Note 10)

Common stock, $

0.01

par value;

1,000,000,000

shares authorized and

115,773,562

and

125,203,405

issued and outstanding on June 30, 2025,

and December 31, 2024,

respectively (Note 10)

1,158

1,252

Additional paid-in capital

1,121,695

1,139,363

Accumulated other comprehensive income

3,520

312

Accumulated deficit

(633,557)

(635,896)

Total Stockholders' Equity

492,842

505,057

Total Liabilities and Stockholders' Equity

1,131,215

1,171,018

The accompanying notes are an integral part of

these unaudited interim consolidated financial statements.

F-3

DIANA SHIPPING INC.

UNAUDITED CONSOLIDATED STATEMENTS

OF INCOME/(LOSS)

For the six months ended June 30, 2025 and 2024

(Expressed in thousands of U.S. Dollars – except for share and per share data)

2025

2024

REVENUES:

Time charter revenues

109,625

113,648

OPERATING EXPENSES

Voyage expenses

6,064

6,413

Vessel operating expenses

39,962

42,133

Depreciation and amortization of deferred charges

22,839

22,106

General and administrative expenses

17,133

16,729

Management fees to a related party (Note 3(a))

636

666

Gain on sale of vessels (Note 5)

(1,500)

(1,572)

Other operating loss/ (income)

460

(389)

Operating income, total

24,031

27,562

OTHER INCOME/(EXPENSE)

Interest expense and finance costs (Note 11)

(21,890)

(23,650)

Interest and other income

3,778

3,776

Gain/(loss) on derivative instruments (Note 7)

(227)

361

Gain/(loss) on related party investments (Note 4(a))

2,482

(1,351)

Loss on equity securities (Note 4(b))

(403)

(400)

Gain/(loss) on warrants (Note 10(g))

515

(6,773)

Loss from equity method investments (Note 3)

(747)

(231)

Total other expenses, net

(16,492)

(28,268)

Net income/(loss)

7,539

(706)

Dividends on series B preferred shares (Notes 10(b) and 12)

(2,884)

Net income/(loss) attributable to common stockholders

4,655

(3,590)

Earnings/(loss) per common share, basic and diluted

(Note 12)

0.04

(0.03)

Weighted average number of common shares outstanding, basic and

diluted

(Note 12)

110,095,604

112,818,414

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

F-4

DIANA SHIPPING INC.

UNAUDITED CONSOLIDATED STATEMENTS

OF COMPREHENSIVE INCOME/(LOSS)

For the six months ended June 30, 2025 and 2024

(Expressed in thousands of U.S. Dollars)

2025

2024

Net income/(loss)

7,539

(706)

Currency translation adjustment

3,208

Comprehensive income/(loss)

10,747

(706)

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

-5

DIANA SHIPPING INC.

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the six months ended June 30, 2025 and 2024

(Expressed in thousands of U.S. Dollars – except

for share and per share data)

Preferred Stock

Series B

Preferred Stock

Series C

Preferred Stock

Series D

Common Stock

# of Shares

Par

Value

# of

Par

Value

# of

Par

Value

# of Shares

Par

Value

Additional

Paid-in

Capital

Other

Comprehensive

Income

Accumulated

Deficit

Total Equity

BALANCE, December

31, 2023

2,600,000

10,675

400

113,065,725

1,131

1,101,425

308

(613,869)

489,021

Net loss

(706)

Issuance of Common

Stock (Note 10(e))

9,723,506

27,695

27,792

Issuance of Restricted

Stock and

Compensation Cost

(Note 10(h))

2,300,000

4,984

5,007

Dividends on Common

Stock ($

0.15

per share)

(Note 10(f))

(18,368)

Dividends on Preferred

Stock ($

1.109375

per

share)

(Note 10(b))

(2,884)

BALANCE, June 30,

2024

2,600,000

10,675

400

125,089,231

1,251

1,134,104

308

(635,827)

499,862

BALANCE, December

31, 2024

2,600,000

10,675

400

125,203,405

1,252

1,139,363

312

(635,896)

505,057

Net income

7,539

Issuance of Common

Stock (Note 10(g)

12,802

Issuance of Restricted

Stock and

Compensation Cost

(Note 10(h))

2,000,000

5,250

5,270

Stock repurchased and

retired (Note 10(e))

(11,442,645)

(114)

(22,934)

(23,048)

Dividends on Common

Stock ($

0.02

per share)

(Note 10(f))

(2,316)

Dividends on Preferred

Stock ($

1.109375

per

share) (Note 10(b))

(2,884)

Other Comprehensive

Income

3,208

BALANCE, June 30,

2025

2,600,000

10,675

400

115,773,562

1,158

1,121,695

3,520

(633,557)

492,842

The accompanying notes are an integral part of

these unaudited interim consolidated financial statements.

-6

DIANA SHIPPING INC.

CONSOLIDATED STATEMENTS

OF CASH FLOWS

For the six months ended June 30, 2025 and 2024

(Expressed in thousands of U.S. Dollars)

2025

2024

Cash Flows from Operating Activities:

Net income/(loss)

7,539

(706)

Adjustments

reconcile

net

income/(loss)

cash

provided

operating

activities

Depreciation and amortization of deferred charges

22,839

22,106

Amortization of debt issuance costs (Note 11)

1,073

1,253

Compensation cost on restricted stock (Note 10(h))

5,270

5,007

(Gain)/loss on derivative instruments (Note 7)

227

(361)

Gain on sale of vessels (Notes 5)

(1,500)

(1,572)

(Gain)/loss on related party investments (Note 4)

(2,482)

1,351

Loss from equity method investments, net of dividend (Note 3)

767

231

Loss on equity securities (Note 4(b))

403

400

(Gain)/loss on warrants (Note 10(g))

(515)

6,773

(Increase) / Decrease

Accounts receivable, trade

1,464

(1,408)

Due from related parties

164

Inventories

(140)

341

Prepaid expenses and other assets

(2,471)

(43)

Investments in equity securities

20,329

Increase / (Decrease)

Accounts payable

2,002

508

Due to related parties

(25)

(540)

Accrued liabilities

(1,945)

(2,139)

Deferred revenue

(162)

(416)

Other non-current liabilities

139

Drydock cost

(6,744)

(2,114)

Net Cash Provided by Operating Activities

25,835

49,183

Cash Flows from Investing Activities:

Payments for vessels under construction and vessel improvements (Note 5)

(727)

(16,702)

Proceeds from sale of vessels, net of expenses (Note 5)

11,535

12,504

Return of capital from equity method investment (Note 3)

3,505

Payments to acquire investments (Note 3 and 4 (b))

(40,295)

(26,671)

Time deposit placements

(20,000)

Time deposit maturities

17,500

20,000

Payments to acquire property, furniture and fixtures (Note 6)

(851)

(2,755)

Net Cash Used in Investing Activities

(29,333)

(13,624)

Cash Flows from Financing Activities:

Proceeds from issuance of common stock, net of fees (Note 10(g))

14,681

Payments of dividends, preferred stock (Note 10(b))

(2,884)

Payments of dividends, common stock (Note 10(f))

(2,316)

(18,368)

Payments for repurchase of common stock

(23,048)

Repayments of long-term debt and finance liabilities (Notes 7 and 8)

(28,391)

(30,539)

Net Cash Used in Financing Activities

(56,570)

(37,110)

Cash, Cash Equivalents and Restricted Cash, Period Increase/(Decrease)

(60,068)

(1,551)

Cash, Cash Equivalents and Restricted Cash, Beginning Balance

143,666

121,592

Cash, Cash Equivalents and Restricted Cash, Ending Balance

83,598

120,041

RECONCILIATION OF CASH, CASH EQUIVALENTS

AND RESTRICTED CASH

Cash and cash equivalents

65,098

100,541

Restricted cash, non-current

18,500

19,500

Cash, Cash Equivalents and Restricted Cash, Total

83,598

120,041

SUPPLEMENTAL CASH FLOW INFORMATION

Stock issued in noncash financing activities

13,111

Interest paid, net of amounts capitalized

21,246

22,677

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-7

Basis of Presentation and General Information and Recent Accounting

Pronouncements

The

accompanying

unaudited

interim

consolidated

financial

statements

include

the

accounts

Diana

Shipping Inc., or DSI and its

wholly owned subsidiaries (collectively,

the “Company”). DSI was formed on

March

1999,

Diana

Shipping

Investment

Corp.

under

the

laws

the

Republic

Liberia.

February

2005,

the

Company’s

articles

incorporation were

amended. Under

the

amended articles

incorporation, the Company was renamed Diana Shipping Inc. and was re-domiciled from the Republic of

Liberia to the Republic of the Marshall Islands.

The

accompanying

unaudited

interim

consolidated

financial

statements

have

been

prepared

accordance

with

U.S.

generally

accepted

accounting

principles,

U.S.

GAAP,

for

interim

financial

information.

Accordingly,

they

not

include

all

the

information

and

notes

required

U.S.

GAAP

for

complete

financial

statements.

These

unaudited

interim

consolidated

financial

statements

have

been

prepared on the

same basis and

should be read

in conjunction with

the financial statements

for the year

ended

December

31,

2024

included

the

Company’s

Annual

Report

Form

20-F

filed

with

the

Securities and

Exchange Commission on

March 21,

2025 and,

in the

opinion of

management, reflect

all

normal

recurring

adjustments

considered

necessary

for

fair

presentation

the

Company's

financial

position,

results

operations

and

cash

flows

for

the

periods

presented.

Operating

results

for

the

six

months ended June

30, 2025, are

not necessarily indicative

of the results

that might be

expected for the

fiscal year ending December 31, 2025.

The

consolidated

balance

sheet

December 31,

2024,

has

been

derived

from

the

audited

consolidated

financial

statements

that

date,

but

does

not

include

all

information

and

footnotes

required by U.S. GAAP for complete financial statements.

The Company

is engaged

in the

ocean transportation

of dry

bulk cargoes

worldwide mainly

through the

ownership

and

bareboat

charter

dry

bulk

carrier

vessels.

The

Company

operates

its

own

fleet

through

Diana

Shipping

Services

S.A.

(or

“DSS”),

wholly

owned

subsidiary

and

through

Diana

Wilhelmsen Management Limited, or DWM, a

% owned joint venture (Note 3(a)). The fees paid to DSS

are eliminated on consolidation.

Transactions with related parties

Altair

Travel

Agency

S.A.

(“Altair”):

The

Company

uses

the

services

affiliated

travel

agent, Altair,

which is controlled by

the Company’s CEO

Mrs. Semiramis Paliou.

Travel expenses for

the

six months ended June 30, 2025 and 2024

amounted to $

1,426

and $

1,288

, respectively,

and are mainly

included

vessel

operating

expenses

and

general

and

administrative

expenses

the

accompanying

unaudited

interim

consolidated

statements

income/(loss).

June

30,

2025

and

December

31,

2024, an

amount of

151

and $

190

, respectively,

was due

to Altair,

included in

due to

related parties

the accompanying consolidated balance sheets.

Steamship Shipbroking Enterprises Inc. or

Steamship:

Steamship is a company controlled by

the

Company’s

CEO Mrs.

Semiramis Paliou.

Steamship provides

brokerage services

DSI for

fixed

monthly

fee,

commissions

for

sale

and

purchase

activities

and

expenses,

pursuant

Brokerage

Services

Agreement.

For

the

six

months

ended

June

30,

2025

and

2024,

brokerage

fees,

including

commissions and other expenses, amounted to $

2,136

and $

2,152

, respectively, and are included mainly

general

and

administrative

expenses

and

gain

sale

vessels

the

accompanying

unaudited

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-8

interim

consolidated

statements

income/(loss).

June

30,

2025,

and

December

31,

2024,

amount of $

and $

, respectively, was due to Steamship

Equity Method Investments

Diana Wilhelmsen Management Limited, or DWM:

DWM is a joint venture between

Diana Ship

Management Inc., a

wholly owned subsidiary

of DSI, and

Wilhelmsen Ship Management

Holding AS, an

unaffiliated

third

party,

each

holding

DWM.

June

30,

2025

and

December

31,

2024,

the

investment

DWM

amounted

607

and

794

and

included

equity

method

investments

the

accompanying

consolidated

balance

sheets.

For

the

six

months

ended

June

30,

2025

and

2024,

the

investment in DWM resulted

in a loss

of $

187

and a gain of

, respectively,

included in loss from

equity

method investments in the accompanying unaudited interim consolidated

statements of income/(loss).

Since March

31, 2025,

DWM provides

commercial and

technical management

to five

of the

Company’s

vessels,

after

the

disposal

one

vessel,

for

fixed

monthly

fee

and

percentage

their

gross

revenues. Management

fees for

the six

months ended

June 30,

2025 and

2024 amounted

to $

636

and

666

respectively,

and

are

separately

presented

management

fees

party

the

accompanying

unaudited interim

consolidated statements

income/(loss).

Commissions during

the

six

months

ended June

30, 2025

and

2024 amounted

163

and $

185

respectively,

and are

included in

voyage

expenses,

in the

accompanying unaudited

interim consolidated

statements of

income/(loss).

June 30,

2025 and

December 31,

2024, there

was an

amount of

and $

, respectively,

due from

DWM included in due from related parties in the accompanying

consolidated balance sheets.

Bergen

Ultra

LP,

Bergen:

Bergen

limited

partnership

which

was

established

for

the

purpose

acquiring,

owning,

chartering

and/or

operating

vessel

and

which

the

Company

has

partnership

interests

For

the

six

months

ended

June

30,

2025

and

2024,

the

investment

Bergen

resulted

loss

and

gain

195

respectively

and

included

loss

from

equity

method investments in the accompanying unaudited interim consolidated statements

of income/(loss). As

June

30,

2025

and

December 31,

2024, the

investment

Bergen

amounted to

4,932

and

5,012

respectively,

and

included

equity

method

investments

the

accompanying

consolidated

balance

sheets.

The

Company

has

administrative

agreement

with

Bergen

under

which

provides

administrative

services

and

commission

agreement

under

which

guarantees

Bergen’s

loan

and

receives

commission of

0.8

% per

annum on

the outstanding

balance of

the loan,

paid quarterly

(Note 9).

For the

six months ended June 30, 2025

and 2024, income from management fees from Bergen

amounted to $

and $

, respectively,

included in time charter revenues and income

from the commission received on the

loan

guarantee

amounted

and

respectively,

included

interest

and

other

income

the

accompanying

unaudited

interim

consolidated

statements

income/(loss).

June

30,

2025,

and

December 31,

2024, there

was an

amount of

200

and $

246

, respectively,

due from

Bergen included in

due from related parties, current and non-current.

Windward

Offshore

GmbH,

Windward:

November

2023,

the

Company

through

its

wholly owned subsidiary Diana

Energize Inc., or

Diana Energize, entered into

a joint venture

agreement,

with

two

unrelated

companies

form

Windward

Offshore

GmbH

Co.

Windward,

based

Germany, for

the purpose of establishing and operating an

offshore wind vessel company with the aim

becoming a leading provider

of service vessels to

the growing offshore

wind industry and acquire certain

vessels. Diana Energize agreed to

contribute

50,000,000

Euro, being

45.87

% of the

limited partnership’s

capital. On May 5, 2025, a new partner was admitted to the joint venture and the Company received Euro

3.1

million as return

of capital, which

resulted in its

ownership percentage being

amended to

%. As of

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-9

June 30, 2025

and December 31, 2024,

the investment amounted to

43,889

and $

36,631

, respectively,

mainly

consisting

advances to

fund

the

construction

four

vessels

and

working

capital.

For

the

six

months ended June 30, 2025 and 2024, the investment in Windward resulted in a loss

of $

476

and $

434

respectively,

and

included

loss

from

equity

method

investments

the

accompanying

unaudited

interim consolidated statements of income/(loss).

Diana

Mariners

Inc.,

Diana

Mariners:

September

12,

2023,

the

Company

through

its

wholly owned subsidiary Cebu Shipping Company Inc., or Cebu, acquired

% of Cohen Global Maritime

Inc.,

Cohen,

company

organized

the

Republic

the

Philippines

for

the

purpose

providing

manning agency services. In August 2024, Cohen was renamed Diana

Mariners and acts as the manning

agent

the

Company’s

vessels.

June

30,

2025

and

December

31,

2024,

the

Company’s

investment in Diana Mariners amounted to

365

and $

389

, respectively and there was

an amount of $

and $

100

, included

in due

to and

due from

related parties,

respectively.

For the

six months

ended June

30, 2025 and 2024, the investment in Diana Mariners resulted in a loss of $

and $

, respectively and is

included

loss

from

equity

method

investments

the

accompanying

unaudited

interim

consolidated

statements of

income/(loss).

As of

June 30,

2025, two

of the

Company’s ship-owning

subsidiaries have

entered into manning agreements with Diana Mariners.

Ecogas

Holding

AS,

Ecogas:

March

12,

2025,

the

Company,

through

wholly

owned

subsidiary

Diana

Gas

Inc.,

entered

into

joint

venture

agreement

with

unrelated

party

establish

Ecogas,

a company

formed under

the

laws

of Norway,

for

the

purpose of

building

two

7,500

cbm

LPG

vessels

with

delivery

2027

and

with

option

for

two

additional

vessels.

The

Company

agreed

contribute

18,464

being

equity

interest

for

the

construction

the

two

vessels.

June

30,

2025, the

investment in

Ecogas amounted

to $

7,508

, representing

part of

its equity

participation to

fund

the construction of the vessels and working capital.

Investments in related parties and other

OceanPal Inc., or

OceanPal:

As of June

30, 2025 and

December 31, 2024,

the Company is

the

holder

500,000

Series

Preferred

and

207

Series

Convertible

Preferred

OceanPal and

3,649,474

common shares, being

% of OceanPal’s common stock.

Series

preferred

entitle

the

holder

2,000

votes

all

matters

submitted

vote

the

stockholders of the

Company,

provided however,

that the total

number of votes

shall not exceed

% of

the

total

number

votes,

provided

further,

that

the

total

number

votes

entitled

vote,

including

common stock or any

other voting security,

would not exceed

% of the total

number of votes. Series B

Preferred Shares have no dividend or distribution rights.

Series

preferred

not

have

voting

rights

unless

amendments

the

Articles

Incorporation that adversely alter

the preference, powers or

rights of the

Series C Preferred

Shares or to

issue

Parity

Stock

create

issue

Senior

Stock.

Series

preferred

have

liquidation

preference equal to

the stated value

of $

1,000

and are convertible

into common stock

at the Company’s

option commencing upon the

first anniversary of the

issue date, at a

conversion price equal to

the lesser

6.5

and

the

-trading

day

trailing

VWAP

OceanPal’s

common

shares,

subject

adjustments.

Dividends on

each share

of Series

C Preferred

Shares are

cumulative and

accrue at

the rate

% per

annum. Dividends are payable in cash or, at OceanPal’s election, in kind.

June

30,

2025

and

December

31,

2024,

the

Company’s

investment

the

common

stock

ceanPal

amounted

6,715

and

4,235

respectively,

being

the

fair

value

OceanPal’s

common

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-10

that

date,

determined through

Level

inputs

the

fair

value

hierarchy.

For

the

six

months

ended June 30, 2025 and 2024, the investment’s valuation in fair values resulted in an unrealized gain on

investment of $

2,482

and an unrealized loss on investment of $

1,351

, respectively, included in gain/(loss)

on related

party investments,

separately presented

in the

accompanying unaudited

interim consolidated

statements of income/(loss).

June

30,

2025

and December

31,

2024, the

Company’s

investment in

Series

preferred shares

and

Series

preferred

shares,

amounted

180

and

180

respectively,

included

investments

related parties in the accompanying consolidated balance sheets.

For the six

months ended June

30, 2025 and

2024, dividend income

from the Series

C preferred shares

amounted

and

respectively,

included

interest

and

other

income

the

accompanying

unaudited interim consolidated statements of income/(loss).

Investments

equity

securities:

2023, the

Company

acquired

equity

securities

entity

listed

the

NYSE

which

were

sold

during

the

first

quarter

2024

and

recorded

loss

400

presented in

gain/(loss) on

investments in

the accompanying

unaudited interim

consolidated statements

of income/(loss).

During

the

second

quarter

2025,

the

Company

acquired

equity

securities

entity

listed

the

NYSE which as of June 30, 2025 had a fair value of $

24,353

. The equity securities were initially recorded

cost

amounting

24,756

and

measured

subsequently

fair

value,

since

their

fair

values

were

readily

determinable,

determined

through

Level

the

fair

value

hierarchy.

The

securities

are

considered marketable

securities that

are available

to be

converted into

cash to

fund current

operations

and

classified

current

assets

the

accompanying consolidated

balance

sheet

June

30,

2025.

Unrealized

loss

the

investment

amounted

403

and

separately

presented

loss

equity

securities in the accompanying unaudited interim consolidated statements

of income/(loss).

For

the

six

months

ended

June

30,

2025

and

2024,

dividend

income

from

the

Investment

equity

securities

amounted

and

respectively

and

included

interest

and

other

income

the

accompanying unaudited interim consolidated statements of income/(loss).

Advances for vessels under construction and Vessels, net

the

Company’s

normal

course

business

from

time

acquire

and

sell

vessels.

Accordingly, as of June 30, 2025, the Company had entered into the below transactions.

Vessels under construction

February

2024,

the

Company

signed

agreement

with

unaffiliated

third

party,

for

the

construction of

two

81,200 dwt methanol

dual fuel

new-building Kamsarmax dry

bulk vessels, to

be built

at Tsuneishi

Group (Zhoushan) Shipbuilding Inc., China. The

vessels are expected to be

delivered to the

Company

the

second

half

2027

and

the

first

half

2028.

June

30,

2025,

advances

for

vessels under

construction amounted

to $

20,241

, including

1,811

of capitalized

interest. During

the six

months ended June 30, 2025, an amount of $

683

, including capitalized interest of $

665

, was capitalized.

Vessel Disposals

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-

On February 10, 2025, the Company, through a wholly owned subsidiary, entered into an agreement with

an unrelated third party to sell the vessel Alcmene for the sale

price of $

11,875

, which resulted in a gain

amounting to $

1,500

. The vessel was delivered to the new owners on March 13, 2025.

On June 13,

2025, the Company,

through a wholly owned

subsidiary,

entered into an agreement

with an

unrelated third

party to

sell the

vessel Selina

for the

sale price

of $

11,800

. At

the date

of the

agreement

to sell

the vessel,

the vessel

was measured

at the

lower of

its carrying

amount or

fair value

(sale price)

less

costs

sell,

which was

the

vessel’s

carrying value

and

was

classified in

current assets

as vessel

held for

sale, according

the provisions

of ASC

360,

as all

criteria required

for this

classification were

met. The vessel was delivered to the new owners on July 15, 2025

(Note 14).

The

amount

reflected

in Vessels,

net

the

accompanying consolidated

balance sheets

is analyzed

follows:

Vessel Cost

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2024

1,069,204

(235,792)

833,412

- Additions for vessel improvements

- Vessel disposals

(11,434)

2,145

(9,289)

- Depreciation for the period

(18,894)

- Vessel held for sale

(12,441)

4,056

(8,385)

Balance, June 30, 2025

1,045,373

(248,485)

796,888

Property and Equipment, net

The Company

owns the

land and

building of

its principal

corporate offices

in Athens,

Greece and

three

plots

land

acquired

for

corporate

purposes.

Other

assets

consist

office

furniture

and

equipment,

computer software and hardware

and vehicles. The amount

reflected in “Property and

equipment, net” is

analyzed as follows:

Property and

Equipment

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2024

34,660

(7,485)

27,175

- Additions in property and equipment

851

- Depreciation for the period

(497)

Balance, June 30, 2025

35,511

(7,982)

27,529

Long-term debt

The

amount of

long-term debt

shown in

the

accompanying consolidated

balance sheets

analyzed as

ollows:

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-12

June 30, 2025

December 31, 2024

Senior unsecured bond

175,000

Secured long-term debt

324,015

347,590

Total long-term

debt

499,015

522,590

Less: Deferred financing costs

(7,001)

(7,973)

Long-term debt, net of deferred financing costs

492,014

514,617

Less: Current long-term debt, net of deferred financing

costs,

current

(45,292)

(45,230)

Long-term debt, excluding current maturities

446,722

469,387

8.75% Senior Unsecured Bond

2024,

the

Company

issued

175,000

senior

unsecured

bond

maturing

July

2029

having

Dollar fixed-rate coupon of

8.75

% payable semi-annually in arrears in January and July of each year. The

proceeds from

the bond

were used

to prepay

the balance

of the

then outstanding

bond and

for working

capital. The bond is callable in whole or in part in July 2027 at a price equal to

103.50

% of nominal value;

in January 2028 at

a price equal to

102.625

% of nominal value;

in July 2028 at

a price equal to

101.75

and

after

January

2029

price

equal

100.00

nominal

value.

The

bond

ranks

ahead

subordinated

capital

and

ranks

the

same

with

all

other

senior

unsecured

obligations

the

Company

other

than

obligations

which

are

mandatorily

preferred

law.

The

bond

includes

financial

and

other

covenants and is trading on the Oslo Stock Exchange under the ticker symbol

“DIASH03”.

Secured Term Loans:

Under

the

secured term

loans

outstanding as

of June

30,

2025,

vessels of

the

Company’s

fleet

are

mortgaged

with

first

preferred

priority

ship

mortgages,

having

aggregate

carrying

value

573,351

Additional

securities

required

the

banks

include

first

priority

assignment

all

earnings,

insurances,

first

assignment

time

charter

contracts

that

exceed

certain

period,

pledge

over

the

borrowers,

manager’s

undertaking

and

subordination

and

requisition

compensation

and

either

corporate

guarantee

DSI

(the

“Guarantor”)

guarantee

the

ship

owning

companies

(where applicable), financial covenants, as well as operating account assignments. The lenders may also

require

additional

security

the

future

the

event

the

borrowers

breach

certain

covenants

under

the

loan

agreements.

The

secured

term

loans

generally

include

restrictions

changes

management

and ownership

of the

vessels, additional

indebtedness, as

well as

minimum requirements

regarding hull

cover ratio and minimum liquidity per vessel owned by the borrowers, or the Guarantor,

maintained in the

bank accounts of the borrowers, or the Guarantor.

June

30,

2025

and

December

31,

2024

minimum

cash

deposits required

maintained

all

times

under

the

Company’s

loan

facilities,

amounted

18,500

and

19,000

respectively

and

are

included in

restricted cash,

non-current in

the accompanying

consolidated balance

sheets. Furthermore,

the secured term loans

contain cross default provisions and

additionally the Company is

not permitted to

pay

any

dividends

following

the

occurrence

event

default.

All

the

Company’s

secured

term

loans bear interest at SOFR plus a margin.

As of June 30, 2025, the Company had the following agreements with banks, either as a borrower or as a

guarantor, to guarantee the loans of its subsidiaries:

Nordea

Bank

AB,

London

Branch

(“Nordea”):

July

25,

2024,

the

Company

entered

into

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-13

167,263

loan

agreement,

drawn

July

25,

2024,

refinance

the

balance

the

then

outstanding

loans. The loan is repayable in equal quarterly instalments of $

4,454

and a balloon instalment of $

64,827

payable on

July 25, 2030

Export-Import Bank of China:

On January 4,

2017, the Company drew

down $

57,240

under a secured

loan

agreement,

which

repayable

equal

quarterly

instalments

954

each,

until

its

maturity

January 4, 2032

DNB Bank

ASA or

DNB:

On June

26, 2023, the

Company entered into

a $

100,000

sustainability linked

loan agreement which was drawn on June 27, 2023, to refinance the outstanding balance of another loan

and

for

working

capital

purposes.

The

loan

repayable

equal

quarterly

instalments

3,846

until

December 27, 2029

. The loan is subject to a margin reset

and unless the parties agree on a new margin,

the loan will

be mandatorily repayable

on June 27,

2027. On

July 6, 2023,

the Company entered

into an

interest rate swap with DNB for a notional amount for the

% of the loan amount. Under the interest rate

swap,

the

Company

pays

fixed

rate

and

receives

floating

under

term

SOFR.

The

swap

has

termination date

on December

27, 2029,

and a

mandatory break

on June

27, 2027,

according to

which

the swap

will be

terminated if

the loan

is prepaid.

As of

June 30,

2025 and

December 31,

2024, the

fair

value of

the interest

rate swap

was $

391

and $

165

, respectively,

and is

separately presented

in current

and

non-current

liabilities.

During

the

six

months

ended

June

30,

2025

and

2024,

the

Company

recognized a loss of $

227

and a gain of $

361

, respectively, from the swap valuation separately presented

as gain/(loss)

on derivative

instruments in

the accompanying

unaudited interim

consolidated statements

of income.

Danish Ship

Finance A/S

or Danish:

On April

12,

2023, the

Company signed

a term

loan facility

with

Danish,

for

100,000

refinance

the

outstanding

balance

loans

with

other

banks

and

for

working

capital.

April

and

19,

2023,

the

Company

drew

down

100,000

which

was

repayable

equal

quarterly instalments

of $

3,301

each and

a balloon

of $

33,972

payable together

with the

last instalment

April

19,

2028. On

October

18,

2024, the

Company refinanced

the

outstanding balance

this

loan

with

loan

which

repayable

equal

quarterly

instalments of

2,533

each

and

balloon

14,323

payable together with the last instalment on

April 18, 2031

June

30,

2025

and

December

31,

2024,

the

Company

was

compliance

with

all

its

loan

covenants.

As of

June 30,

2025, the

maturities of

the Company’s

bond and

debt facilities

throughout their

term, are

shown in the table below and do not include related debt issuance

costs.

Period

Principal Repayment

Year 1

47,150

Year 2

47,149

Year 3

47,149

Year 4

47,149

Year 5

214,457

Year 6 and

thereafter

95,961

Total

499,015

Finance Liabilities

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-14

March

29,

2022,

the

Company

sold

Florida

unrelated

third

party

and

leased

back

the

vessel

from

the

buyer

for

period

ten years

under

which

the

Company

pays

fixed

monthly

hire.

The

Company has the

option to repurchase the

vessel at specific prices,

after the end

of the third

year of the

charter period and for each year thereafter,

and the obligation to purchase the vessel on the expiration

the lease on the tenth year.

On August 17, 2022, the

Company entered into

two

sale and leaseback agreements with two

unaffiliated

third

parties

for

New

Orleans

and

Santa

Barbara

The

vessels

were

delivered

their

buyers

September

2022

and September

12,

2022, respectively

and the

Company

chartered-in both

vessels

under bareboat

charter parties

for a

period of

eight years

, each,

under which

the Company

pays a

fixed

monthly

hire.

Under

the

bareboat

charter,

the

Company

has

the

option

repurchase

the

vessel

specific prices,

after the

end of

the third

year of

the charter

period and

for each

year thereafter,

and the

obligation to purchase the vessel on the expiration of the lease on the

eighth year.

December 6,

2022, the

Company sold

DSI Andromeda

an unrelated

third

party and

leased back

the vessel under a bareboat agreement, for a period of

ten years

, under which the Company pays a fixed

monthly

hire.

The Company

has the

option to

repurchase the

vessel at

specific

prices, after

the

end

the third year of the charter period and for each year thereafter,

and the obligation to purchase the vessel

on the expiration of the lease on the tenth year.

The

Company

determined that,

under

ACS

842-40

Sale

and

Leaseback

Transactions,

the

transactions

are

failed

sales

and

consequently the

assets

were

not

derecognized from

the

financial

statements

and

the proceeds from

the sale of

the vessels were

accounted for as

financial liabilities. As

of June 30,

2025

and

December

31,

2024,

finance

liability

amounted

9,820

and

9,608

respectively,

included

finance

liabilities,

current

and

108,373

and

113,300

respectively

included

finance

liabilities,

net

current

portion.

June

30,

2025,

the

weighted

average

remaining

lease

term

the

above

lease

agreements was

6.21

years, the average interest rate was

4.83

% and the sublease income during the six

months ended June

30, 2025 and

2024 was $

14,603

and $

14,678

, respectively,

included in time

charter

revenues.

As of

June 30,

2025, and

throughout the

term of

the leases,

the Company

has annual

finance liabilities

as shown in the table below:

Period

Principal Repayment

Year 1

10,012

Year 2

10,439

Year 3

10,916

Year 4

11,357

Year 5

11,851

Year 6 and

thereafter

64,509

Total

119,084

Commitments and Contingencies

Various

claims, suits,

and complaints,

including those

involving government

regulations and

product

liability,

arise

the

ordinary

course

the

shipping

business.

addition,

losses

may

arise

from

isputes with

charterers, agents, insurance

and other

claims with

suppliers relating to

the operations

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-15

the

Company’s

vessels.

The

Company

accrues for

the

cost

environmental and

other

liabilities

when management becomes

aware that

a liability is

probable and is

able to

reasonably estimate the

probable exposure.

The Company’s

vessels are

covered for

pollution in

the amount

of $

billion per

vessel per incident, by the P&I Association in which the Company’s vessels

are entered.

Pursuant

the

sale

and

lease

back

agreements

signed

between

the

Company

and

its

counterparties, the Company has purchase obligations

amounting to $

50,400

, at the end

of the lease

agreements described in Note 8.

On March

30, 2023,

the Company

entered into

corporate guarantee

with Nordea

under which

the

Company

guarantees

the

performance

Bergen

all

its

obligations

under

the

loan

until

the

maturity of the

loan on March 30,

2028 (Note 3 (b)).

The Company considers the

likelihood of having

to make any

payments under the

guarantee to be

remote, as the

loan is also

secured by an

account

pledge

Bergen,

first

preferred

mortgage

the

vessel,

first

priority

general

assignment

the

earnings,

insurances

and

requisition

compensation

the

vessel,

charter

party

assignment,

partnership interests

security deed,

and a

manager’s undertaking. Accordingly,

as of

June 30,

2025,

the Company did not record a provision for losses under the guarantee of Bergen’s loan amounting to

12,910

on that date.

June

30,

2025,

the

Company

had

total

obligations

under

shipbuilding

contracts

(Note

5),

follows:

Period

Amount

Year 1

4,600

Year 2

9,200

Year 3

59,800

Total

73,600

As of

June 30, 2025,

the Company’s

vessels, owned and

chartered-in, were fixed

under time charter

agreements, considered operating

leases. The minimum

contractual gross charter

revenue expected

generated from

fixed

and

non-cancelable

time

charter

contracts

existing

June

30,

2025

and until their expiration was as follows:

Period

Amount

Year 1

112,145

Year 2

11,726

Total

123,871

10.

Capital Stock and Changes in Capital Accounts

Preferred

stock

June

30,

2025,

and

December

31,

2024,

the

Company’s

authorized

preferred stock

consists of

50,000,000

shares, respectively

(all

registered form),

par

value

0.01

per

share, of

which

1,000,000

shares are

designated as

Series A

Participating Preferred

Shares,

5,000,000

are

designated

Series

Preferred

Shares,

10,675

are

designated

Series

Preferred Shares and

400

shares are designated as Series D Preferred Shares. As of June 30, 2025 and

December

31,

2024,

the

Company

had

zero

Series

Participating

Preferred

issued

and

outstanding.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-16

Series

Preferred

Stock:

June

30,

2025,

and

December

31,

2024,

the

Company

had

2,600,000

Series B

Preferred Shares

issued and

outstanding with

par value

0.01

per share,

at $

25.00

per share and with liquidation preference at $

25.00

per share.

Holders of Series B Preferred Shares have

no voting rights other than the ability, subject to certain exceptions, to elect one director if dividends for

six quarterly dividend periods (whether or not consecutive) are in arrears and certain other limited

protective voting rights.

Also, holders

of Series

B Preferred

Shares rank

prior to

the holders

of common

shares with respect to

dividends, distributions and payments upon

liquidation and are subordinated to

all

of the existing and future indebtedness.

Dividends

the

Series

Preferred

are

cumulative

from

the

date

original

issue

and

are

payable on the 15th day of January, April, July and October of each year at a dividend rate of

8.875

% per

annum, or $

2.21875

per share per annum. For the six

months ended June 30, 2025 and

2024, dividends

Series

Preferred

Shares amounted

2,884

and

2,884

respectively.

Since February

14,

2019,

the

Company may

redeem, in

whole or

in part,

the

Series B

Preferred Shares

at a

redemption price

25.00

per share

plus an

amount equal

to all

accumulated and

unpaid dividends

thereon to

the date

redemption, whether or not declared.

Series

Preferred

Stock

June

30,

2025,

and

December

31,

2024,

the

Company

had

10,675

Series

Preferred

Stock,

issued

and

outstanding,

with

par

value

0.01

per

share,

owned by an affiliate

of its Chief Executive Officer,

Mrs. Semiramis Paliou.

The Series C Preferred Stock

votes with the common shares of the Company, and each share entitles the holder thereof to 1,000 votes

on all matters submitted to a vote of the shareholders of the Company.

The Series C Preferred Stock has

no dividend or liquidation

rights and cannot be

transferred without the consent

of the Company except to

the holder’s affiliates and immediate family members.

Series D Preferred Stock

: As of June

30, 2025, and December 31,

2024, the Company had

400

shares of Series D Preferred Stock, issued and outstanding, with par value $

0.01

per share, owned by an

affiliate

its

Chief

Executive

Officer,

Mrs.

Semiramis

Paliou.

The

Series

Preferred

Stock

not

redeemable

and

has

dividend

liquidation

rights.

The Series D Preferred Stock vote with the

common shares of the Company, and each share of the Series D Preferred Stock entitles the holder

thereof to up to 200,000 votes,

all matters

submitted to

a vote

of the

stockholders of

the

Company,

provided however, that,

notwithstanding any other provision of the

Series D Preferred Stock statement of

designation, to the extent that

the total number of votes

one or more holders

of Series D Preferred Stock

entitled

vote

(including

any

voting

power

such

holders

derived

from

Series

Preferred

Stock,

shares of

Common Stock

or any

other voting

security of

the Company

issued and

outstanding as

of the

date hereof or

that may be

issued in the

future) on any

matter submitted to

a vote of

stockholders of the

Company would

exceed

36.0

% of

the total

number of

votes eligible

to be

cast on

such matter,

the total

number

votes

that

holders

Series

Preferred

Stock

may

exercise

derived

from

the

Series

Preferred

Stock

together

with

Common

and

any

other

voting

securities

the

Company

beneficially owned by such holder,

shall be reduced to

% of the total number of votes that

may be cast

on such matter submitted to a vote of stockholders.

Issuance

and

Repurchase

Common

December

2024,

the

Company

commenced

tender

offer

purchase

15,000,000

its

outstanding

common

stock,

2.00

per share,

using funds

available from

cash and

cash equivalents. On

January 7,

2025, the

tender

offer

was

settled

and

the

Company

repurchased

and

retired

total

11,442,645

common

stock for an aggregate amount of $

22,885

Dividend

Common

Stock

March

12,

2024,

the

Company

paid

cash

dividend

its

ommon stock

of $

0.075

per share,

or $

8,989

to shareholders

of record

as of

March 5,

2024. On

June

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-17

18,

2024,

the

Company

paid

cash

dividend

its

common

stock

0.075

per

share,

9,379

shareholders of

record as

of June

12, 2024.

On March

21, 2025,

the Company

paid a

cash dividend

its common

stock of

0.01

per share,

or $

1,158

, to

all shareholders

of record

as of

March 12,

2025. On

June 24, 2025, the Company paid

a cash dividend on its common stock

of $

0.01

per share, or $

1,158

, to

all shareholders of record as of June 17, 2025.

Warrants:

December

14,

2023,

the

Company

distributed

22,613,070

warrants

its

shareholders

record

December

2023.

Holders

received

one warrant for every five shares

issued and outstanding shares of common stock held as of the record date (rounded down to the

nearest

whole

number

for

any

fractional

warrant.

Each

Warrant

entitles

the

holder

purchase,

the

holder’s

sole

and

exclusive

election,

the

exercise

price

per

warrant,

1.10346

common

stock

plus

bonus

fraction.

bonus

fraction

entitles

holder

receive

additional

part

share of common stock for each warrant exercised without payment

of any additional exercise price.

During

the

six

months

ended

June

30,

2025,

the

Company

issued

12,802

common

stock,

having a value of $

, net of expenses, or $

1.24

per share, upon the exercise of

7,825

warrants issued in

2023

and

distributed

dividend

the

Company’s

shareholders.

The

Company received

proceeds, net

of fees,

from the

exercise of warrants.

If all

warrants were exercised

as of

June 30,

2025,

the

Company would

have issued

36,685,379

shares of

common stock

with

fair

value

67,242

and

would have received $

90,452

of gross proceeds. The warrants were measured on the

date of distribution

at fair

value, determined

through Level

1 account

hierarchy,

being the

opening price

of the

warrants on

the NYSE on the date

of distribution as they are listed

under the ticker DSX_W.

As of June 30, 2025 and

December

31,

2024,

the

warrant

liability,

measured

fair

value,

amounted

1,297

and

1,802

respectively. During the

six months ended June 30, 2025 and 2024,

gain and loss on warrants amounted

515

and

6,773

respectively,

separately

presented

the

accompanying

unaudited

interim

consolidated statements

of income/(loss).

Incentive

Plan:

June

30,

2025,

9,144,759

remained

reserved

for

issuance

according to the Company’s incentive plan.

Restricted stock as of June 30, 2025 and 2024 is analyzed as follows:

Number of Shares

Weighted Average

Grant Date Price

Outstanding as of December 31, 2023

6,793,836

3.45

Granted

2,300,000

2.96

Vested

(2,996,334)

3.38

Outstanding as of June 30, 2024

6,097,502

3.30

Outstanding as of December 31, 2024

6,097,502

3.30

Granted

2,000,000

1.84

Vested

(3,134,365)

3.37

Outstanding as of June 30, 2025

4,963,137

2.67

The

fair

value

the

restricted

has

been

determined

with

reference

the

closing

price

the

Company’s

stock

the

date

such

awards

were

approved

the

Company’s

board

directors.

The

aggregate compensation

cost is

recognized ratably

in the

accompanying unaudited

interim consolidated

statements of income/(loss) over the respective vesting periods. For the six months ended June 30, 2025

2024,

compensation cost

amounted to

5,270

and

5,007

, respectively,

and is

included in

general

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-18

and

administrative

expenses

the

accompanying

unaudited

interim

consolidated

statements

income/(loss).

June

30,

2025

and

December

31,

2024,

the

total

unrecognized

cost

relating

restricted

awards was

10,084

and $

11,674

, respectively.

As of

June 30,

2025, the

weighted-average period

over

which

the

total

compensation

cost

non-vested

awards

not

yet

recognized

expected

recognized is

1.62

years.

11.

Interest and Finance Costs

The

amounts

the

accompanying

unaudited

interim

consolidated

statements

income/(loss)

are

analyzed as follows:

For the six months ended June 30,

2025

2024

Interest expense, debt

17,745

19,074

Finance liabilities interest expense

2,969

3,217

Amortization of debt and finance liabilities issuance costs

1,073

1,253

Loan and other expenses

103

106

Interest expense and finance costs

21,890

23,650

12.

Earnings/(loss) per Share

All common

shares issued

(including the

restricted shares

issued under

the Company’s

incentive plans)

are

the

Company’s

common

stock

and

have

equal

rights

vote

and

participate

dividends.

The

calculation of basic earnings per share does not treat the non-vested shares (not considered participating

securities)

outstanding

until

the

time/service-based

vesting

restriction

has

lapsed.

The

dilutive effect

unexercised

warrants

that

are

in-the-money,

computed

using

the

treasury

stock

method

which

assumes that the proceeds upon exercise of these warrants are

used to purchase common shares at the

average market price for the period. Incremental shares are the number of shares assumed issued under

the treasury

stock method

weighted for

the periods

the non-vested

shares were

outstanding. During

the

six

months

ended

June

30,

2025

and

2024,

there

were

incremental

included

the

denominator

the

diluted

earnings

per

calculation.

Securities

that

could

potentially

dilute

basic

earnings per share in

the future but were

not included in the

computation of diluted earnings per share—

because

their

inclusion

would

have

been

anti-dilutive—consist

any

incremental

from

unexercised warrants that were out

of the money during the

reporting period and any incremental shares

resulting from the non-vested restricted share awards.

For the six months ended June 30,

2025

2024

Net income/(loss)

7,539

(706)

Dividends on series B preferred shares

(2,884)

Net income/(loss) attributable to common stockholders

4,655

(3,590)

Weighted average number of common shares, basic

and diluted

110,095,604

112,818,414

Earnings/(loss) per share, basic and diluted

0.04

(0.03)

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-19

13.

Financial Instruments and Fair Value Disclosures

Interest rate risk and concentration of credit risk

Financial instruments,

which potentially

subject the

Company to

significant concentrations

of credit

risk,

consist

principally

cash

and

trade

accounts

receivable.

The

ability

and

willingness

each

the

Company’s counterparties to perform their

obligations under a contract depend upon a

number of factors

that

are

beyond

the

Company’s

control

and

may

include,

among

other

things,

general

economic

conditions,

the

state

the

capital

markets,

the

condition

the

shipping

industry

and

charter

hire

rates. The Company’s credit risk with financial institutions is limited as it has temporary cash investments,

consisting

mostly

deposits,

placed

with

various

qualified

financial

institutions

and

performs

periodic

evaluations of the relative credit

standing of those financial institutions.

The Company limits its credit

risk

with

accounts

receivable

performing

ongoing

credit

evaluations

its

customers’

financial

condition

and by receiving payments of hire in

advance. The Company, generally,

does not require collateral for its

accounts receivable and does not have any agreements to mitigate

credit risk.

During the

six months

ended June

30, 2025

and 2024

charterers that

individually accounted

for

% or

more of the Company’s time charter revenues were as follows:

For the six months ended June 30,

Charterer

2025

2024

Cargill International SA

12%

Nippon Yusen Kaisha

18%

*Less than 10%

The

Company

exposed

interest

rate

fluctuations

associated

with

its

variable

rate

borrowings.

Such

exposure

managed

fixed

interest

indebtedness

such

bond,

interest

rate

swap

with

DNB (Note 7) and finance liabilities at fixed rates (Note 8).

Fair value of assets and liabilities

The

carrying

values

financial

assets

reflected

the

accompanying

consolidated

balance

sheet

approximate their respective fair values

due to the short-term nature

of these financial instruments.

Cash

and

cash

equivalents

and

restricted

cash

are

considered

Level 1 items

they

represent

liquid

assets

with

short-term

maturities.

The

fair

value

long-term

bank

loans

with

variable

interest

rates

approximates the recorded values, generally due to their variable

interest rates.

Fair value measurements disclosed

As of June 30, 2025,

the Bond having a fixed interest

rate and a carrying value of

175,000

(Note 7) had

fair

value

178,588

determined

through

the

Level

input

the

fair

value

hierarchy

defined

FASB guidance for Fair Value Measurements.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-20

Other Fair value measurements

December 31,

2024

Quoted Prices

in Active

Markets

(Level 1)

Significant

Other

Observable

Inputs (Level 2)

Significant

Other

Observable

Inputs (Level 3)

Assets

Recurring fair value measurements

Investments in related party

4,415

4,235

180

Total

recurring fair value measurements

4,415

4,235

180

Liabilities

Recurring fair value measurements

Warrant liability

1,802

Interest rate swap, liability

165

Total

recurring fair value measurements

1,967

1,802

165

June 30, 2025

Quoted Prices

in Active

Markets

(Level 1)

Significant

Other

Observable

Inputs (Level 2)

Significant

Other

Observable

Inputs (Level 3)

Assets

Recurring fair value measurements

Investments in equity securities

24,353

Investments in related party

6,895

6,715

180

Total

recurring fair value measurements

31,248

31,068

180

Liabilities

Recurring fair value measurements

Warrant liability

1,297

Interest rate swap, liability

391

Total

recurring fair value measurements

1,688

1,297

391

14.

Subsequent Events

Series B Preferred Stock Dividends

: On July 15, 2025,

the Company paid a quarterly dividend on

its

series

preferred stock,

amounting to

0.5546875

per

share,

1,442

its

stockholders of

record as of April 14, 2025.

Delivery

Vessel:

July

15,

2025,

m/v

Selina

was

delivered

her

new

owners,

and

the

Company recognized a gain on sale of approximately $

2,000

(Note 5).

Common

Stock

Dividend:

July

30,

2025,

the

Company

declared

cash

dividend

its

common

stock

0.01

per

share,

based

the

Company’s

results

operations

during

the

six

months

ended

June

30,

2025.

The

cash

dividend

was

paid

September

11,

2025,

all

shareholders of record as of August 21, 2025.

Investment

OceanPal

Inc.:

July

28,

2025

OceanPal

reported

70,407,833

common

issued and outstanding following an

offering of

units completed on July

22, 2025. As

a result of this

transaction

our

ownership

decreased

3.29

Additionally,

August

25,

OceanPal

effected

everse stock split which decreased our shares from

3,649,474

(Note 4) to

145,978

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Expressed in thousands of U.S. Dollars – except share, per share

data, unless otherwise stated)

F-21

Equity

securities

September

15,

2025,

the

Company’s

investment

equity

securities

increased to $

61,732

, following additional

purchases of shares

of common stock

of the same

entity

(Note 4).

Source: View Original Filing on SEC EDGAR

FAQ

What were Diana Shipping (DSX) revenues and net income for H1 2025?

Time charter revenues were $109.6 million and net income was $7.5 million for the six months ended June 30, 2025.

How much cash did DSX have at June 30, 2025 and how did it change?

Cash, cash equivalents and restricted cash totaled $83.6 million, a decrease of $60.1 million versus the prior period reported figure.

Did DSX repurchase shares or pay dividends in the period?

Yes. The company repurchased and retired 11,442,645 common shares for an aggregate of $22.9 million and paid dividends including $2.884 million on Series B preferred and common dividends totaling $2.316 million in the period.

What is DSX’s outstanding long-term debt?

Total long-term debt principal outstanding was $499.0 million as of June 30, 2025, net of deferred financing costs reported as $492.0 million.

Did DSX sell vessels during H1 2025 and what was the effect?

Yes. The company sold vessels including Alcmene and recognized a $1.5 million gain on sale in the six months ended June 30, 2025; subsequent sale of Selina was delivered July 15, 2025 with an approximate gain of $2.0 million.

DSX H1 2025 Results: Profit, Buybacks and Debt Reduction Amid Cash Drawdown

Rhea-AI Filing Summary

Positive

Negative

Insights

FAQ

What were Diana Shipping (DSX) revenues and net income for H1 2025?

How much cash did DSX have at June 30, 2025 and how did it change?

Did DSX repurchase shares or pay dividends in the period?

What is DSX’s outstanding long-term debt?

Did DSX sell vessels during H1 2025 and what was the effect?

NYSE:DSX

DSX Rankings

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DSX H1 2025 Results: Profit, Buybacks and Debt Reduction Amid Cash Drawdown

Rhea-AI Filing Summary

Positive

Negative

Insights

Financial Analyst neutral

Risk & Capital Structure Analyst neutral

FAQ

What were Diana Shipping (DSX) revenues and net income for H1 2025?

How much cash did DSX have at June 30, 2025 and how did it change?

Did DSX repurchase shares or pay dividends in the period?

What is DSX’s outstanding long-term debt?

Did DSX sell vessels during H1 2025 and what was the effect?

NYSE:DSX

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