Diana Shipping Inc. (NYSE: DSX) lifts H1 2026 profit on Genco equity gains
Diana Shipping Inc., a dry bulk carrier owner, reports unaudited results for the six months ended June 30, 2026. Time charter revenues were $112,020, up from $109,625, with a higher time charter equivalent (TCE) rate of $16,309 versus $15,615 and fleet utilization of 99.8%.
Operating income was $23,400, slightly below $24,031 a year earlier as voyage expenses, daily operating costs ($6,203 vs $5,905 per vessel-day) and depreciation rose. Net income increased to $49,908 from $7,539, mainly due to a $40,683 gain and $5,413 dividends from the Genco equity investment, lower interest and finance costs of $19,427, and a $201 gain on derivatives.
Net cash from operating activities grew to $37,834 from $25,835, while net cash used in financing was $38,084, largely from $31,095 of debt and lease repayments and $5,364 of preferred and common dividends. As of June 30, 2026, total assets were $1,195,401, long-term debt was $503,116 and finance liabilities $109,073; cash, cash equivalents and restricted cash totaled $117,928 and working capital was $141.4 million. The company has shipbuilding commitments of $73,600, remaining equity commitments to Windward and Ecogas, and minimum contracted charter revenue of $117,786.
Positive
- Net income surged to $49,908 from $7,539, driven primarily by a $40,683 fair value gain and $5,413 dividends from the Genco equity investment, alongside lower interest and finance costs, while time charter revenues and TCE rates also improved.
Negative
- None.
Filing Explained
As of June 30, 2026, common shares had risen to 124.4 million, with warrants and incentive awards creating further potential issuance.
Diana Shipping uses this Form 6-K to furnish unaudited interim financial statements for the six months ended
The report incorporates the interim information into the company’s effective Form F-3 registration statement, so the registration remains available for transactions the company may undertake under that statement. Common shares outstanding were 124,413,701 on
The filing reports 876,267 common shares issued from warrant exercises during the six months. If all warrants were exercised as of
The company has submitted a proposal to acquire the Genco shares it does not already own, but the filing does not report a completed transaction. A separate financing milestone remains unresolved: no new margin had been agreed for the DNB loan by
Key Figures
Time charter revenues: $ 112,020
Time charter equivalent (TCE) rate: $ 16,309
Fleet utilization: 99.8%
+5 more
8 metrics
Time charter revenues
$ 112,020
For the six months ended June 30, 2026, compared to $109,625 in 2025
Time charter equivalent (TCE) rate
$ 16,309
Per available day for the six months ended June 30, 2026; $15,615 in 2025
Fleet utilization
99.8%
For the six months ended June 30, 2026; 99.5% in the prior-year period
Net income
$ 49,908
For the six months ended June 30, 2026, versus $7,539 in 2025
Net cash from operating activities
$ 37,834
For the six months ended June 30, 2026; $25,835 in the prior-year period
Total long-term debt
$ 503,116
Principal of senior unsecured bond and secured loans as of June 30, 2026
Cash, cash equivalents and restricted cash
$ 117,928
Combined balance at June 30, 2026
Working capital
$ 141.4 million
Current assets minus current liabilities at June 30, 2026
Key Terms
time charter equivalent (TCE) rate, bareboat chartered-in, equity method investments, restricted cash, +2 more
6 terms
time charter equivalent (TCE) rate financial
"Time charter equivalent (TCE) rate $ 16,309 $ 15,615"
bareboat chartered-in technical
"our fleet, owned and bareboat chartered-in, as well as the provision"
equity method investments financial
"Equity method investments (Note 3) 58,382 53,875"
An equity method investment is an accounting approach used when a company owns a significant share of another company and can influence its decisions but does not fully control it; instead of listing the investment at cost, the investor records its share of the other company's profits or losses on its own income statement and adjusts the investment value on the balance sheet. For investors, this matters because it links the investor’s reported earnings and asset values directly to the financial performance of that partly-owned business, similar to how a partner’s gains affect a small business owner’s books.
restricted cash financial
"Restricted cash, current (Note 7) 51,250 53,750"
Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.
warrant liability financial
"Warrant liability, current (Note 10(g)) 2,352 -"
Warrant liability is the financial obligation a company records when it grants warrants—special options giving the holder the right to buy company shares at a set price in the future. It matters to investors because changes in this liability can affect a company's reported earnings and overall financial health, similar to how a pending contract can influence a company's future value.
sale and leaseback financial
"the transactions are failed sales and consequently the assets were not derecognized"
A sale and leaseback is a financing arrangement where a company sells an asset—often property or equipment—to a buyer and immediately rents it back under a long-term lease. Think of selling your house to free up cash but staying as a tenant; the company gets immediate funds while continuing to use the asset. Investors watch these deals because they change a firm’s cash position, debt or lease obligations, and ongoing costs, which can affect profitability and financial risk.
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FAQ
How did Diana Shipping Inc. (DSX) perform financially in the first half of 2026?
Diana Shipping Inc. reported net income of $49,908 for the six months ended June 30, 2026, up from $7,539. The increase mainly reflects a $40,683 gain and $5,413 dividends from its Genco equity investment plus lower interest and finance costs.
What were DSX’s shipping revenues and TCE rate for the six months ended June 30, 2026?
Time charter revenues were $112,020 for the six months ended June 30, 2026, compared to $109,625 a year earlier. The time charter equivalent (TCE) rate rose to $16,309 per day from $15,615, with fleet utilization at 99.8%, indicating very high employment of the fleet.
What cash flow from operations and liquidity did DSX report for the first half of 2026?
Net cash provided by operating activities was $37,834 for the six months ended June 30, 2026, up from $25,835. Cash, cash equivalents and restricted cash totaled $117,928, and working capital was $141.4 million, supporting near-term operational and debt-service needs.
What is Diana Shipping’s (DSX) debt profile as of June 30, 2026?
As of June 30, 2026, total long-term debt was $503,116, including a $175,000 senior unsecured bond and $328,116 of secured term loans. Finance lease liabilities related to sale-and-leaseback transactions totaled $109,073 over the remaining lease terms.
How did DSX’s operating costs change in the first half of 2026?
Vessel operating expenses rose slightly to $40,421 from $39,962 for the six months ended June 30, 2026. Daily operating expenses increased to $6,203 per vessel-day from $5,905, reflecting higher crew wages, travel, repairs, spares and supplies.
What impact did the Genco investment have on DSX’s 2026 interim results?
The Genco investment contributed a $40,683 unrealized gain on equity securities and $5,413 of dividend income in the six months ended June 30, 2026. These items were major drivers of the increase in net income to $49,908 from $7,539.
What dividends did Diana Shipping (DSX) pay on common and preferred stock in early 2026?
In the first half of 2026, DSX paid $2,884 in Series B preferred dividends and $2,480 in common dividends, based on $0.01 per common share each quarter. A further $0.01 common dividend was declared on July 30, 2026, payable in September.
FORM
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 August
Commission File Number: 001-32458
(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-
F.
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
.
The information contained in this Report on Form 6-K is hereby incorporated by reference into the Company's
registration statement on Form F-3 (File Nos. 333-280693) that was filed with the U.S. Securities and Exchange
Commission and became effective on September 9, 2024.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
DIANA SHIPPING INC.
(registrant)
Dated: August 4, 2026
By:
/s/ Maria Dede
Maria Dede
Co-Chief Financial Officer
2
Management's Discussion and Analysis Of
Financial Condition and Results Of Operations
The following management's discussion and analysis should be read in 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 to future events and financial
performance. Our actual results may differ materially from those anticipated in these forward-looking
statements. For additional information relating to our management's discussion and analysis of financial
condition and results of operations, please see our annual report on form 20-F for the year ended
December 31, 2025 filed with the SEC on March 13, 2026.
The Company
Diana Shipping Inc. is a holding company incorporated under the laws of Liberia in March 1999 as Diana
Shipping Investments Corp. In February 2005, the Company’s articles of incorporation were amended.
Under the amended and restated articles of 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 commercial and technical management of our fleet, owned and bareboat chartered-in, as well as the
provision of administrative services relating to the fleet’s operations, are carried out by our wholly-owned
subsidiary, Diana Shipping Services S.A., which we refer to as DSS, and Diana Wilhelmsen Management
Limited, a 50/50 joint venture with Wilhelmsen Ship Management, which we refer to as DWM.
Our Operations
We charter our vessels, owned and bareboat chartered-in, to customers primarily pursuant to short-,
medium- and long-term time charters. Under our time charters, the charterer typically pays us a fixed
daily charter hire rate and bears all voyage expenses, including the cost of bunkers (fuel oil) and port and
canal charges. We 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 in our fleet, as of the
date of this report.
3
Fleet Employment (As of July 29, 2026)
VESSEL
SISTE
R
SHIPS*
GROSS RATE
(USD PER DAY)
COM**
CHARTERERS
DELIVERY DATE
TO
CHARTERERS***
REDELIVERY DATE TO
OWNERS****
NOTES
BUILT DWT
9 Ultramax Bulk Carriers
1
DSI Phoenix
A
13,500
4.75%
Cargill Ocean Transportation
(Singapore) Pte. Ltd.
8-Aug-25
1/Oct/2026 - 30/Nov/2026
2017 60,456
2
DSI Pollux
A
14,750
5.00%
Stone Shipping Ltd
9-Dec-25
1/Jan/2027 - 28/Feb/2027
2015 60,446
3
DSI Pyxis
A
13,100
5.00%
Stone Shipping Ltd
8-Nov-24
3-May-26
1
2018 60,362
16,000
5.00%
Oldendorff GmbH & Co. KG
3-May-26
15/Jun/2027 - 15/Aug/2027
4
DSI Polaris
A
12,250
4.75%
Cargill Ocean Transportation
(Singapore) Pte. Ltd.
1-Jul-25
10/Aug/2026 - 21/Sep/2026
2
2018 60,404
5
DSI Pegasus
A
14,250
4.75%
Cargill Ocean Transportation
(Singapore) Pte. Ltd
15-Aug-25
3-Aug-26
2,3
2015 60,508
18,350
5.00%
Fednav International Ltd.
3-Aug-26
15/Aug/2027-15/Oct/2027
2
6
DSI Aquarius
B
14,500
5.00%
Bunge SA, Geneva
7-Nov-25
1/Nov/2026 - 31/Dec/2026
4
2016 60,309
7
DSI Aquila
B
14,500
5.00%
Bunge SA, Geneva
12-Oct-25
25/Feb/2027 - 25/Apr/2027
2015 60,309
8
DSI Altair
B
14,750
5.00%
Bunge SA, Geneva
19-Jan-26
15/Jan/2027 - 30/Mar/2027
2016 60,309
9
DSI Andromeda
B
14,600
5.00%
Western Bulk Carriers AS
7-Dec-25
1/Apr/2027 - 31/May/2027
5
2016 60,309
5 Panamax Bulk Carriers
10
LETO
12,750
4.75%
Cargill International SA, Geneva
4-Apr-25
10/Aug/2026 - 16/Sep/2026
2
2010 81,297
11
MAERA
11,750
5.00%
CRC Shipping Pte. Ltd., Singapore
3-Nov-25
20/Oct/2026 - 20/Dec/2026
2013 75,403
12
ISMENE
11,000
5.00%
CRC Shipping Pte. Ltd.
24-Apr-25
12-Jul-26
6
2013 77,901
15,750
5.00%
Paralos Shipping Pte. Ltd
12-Jul-26
15/May/2027 - 15/Jul/2027
13
CRYSTALIA
C
16,200
5.00%
SwissMarine Pte. Ltd., Singapore
14-Mar-26
10/Mar/2027 - 10/May/2027
2014 77,525
14
ATALANDI
C
10,100
5.00%
Stone Shipping Ltd
8-Jun-25
5-Aug-26
7
2014 77,529
16,500
5.00%
5-Aug-26
1/Aug/2027-30/Sep/2027
8
6 Kamsarmax Bulk Carriers
15
MAIA
D
14,000
5.00%
Paralos Shipping Pte. Ltd.
16-Jan-26
5/Jul/2027 - 5/Sep/2027
2009 82,193
16
MYRSINI
D
13,500
5.00%
Paralos Shipping Pte. Ltd.
3-Jan-26
20/Dec/2026 - 20/Feb/2027
2010 82,117
17
MEDUSA
D
13,000
4.75%
Cargill International SA, Geneva
16-Mar-25
13-Jul-26
2010 82,194
16,850
4.75%
Aquavita International S.A.
13-Jul-26
5/Oct/2027 - 20/Dec/2027
18
MYRTO
D
12,000
5.00%
Nippon Yusen Kabushiki Kaisha,
Tokyo
23-Dec-24
10-Apr-26
2013 82,131
16,650
5.00%
10-Apr-26
20/Sep/2027 - 20/Nov/2027
19
ASTARTE
12,500
5.00%
Propel Shipping Pte. Ltd.
2-Aug-25
16/Aug/2026 - 16/Oct/2026
2013 81,513
20
LEONIDAS P. C.
14,000
5.00%
Nippon Yusen Kabushiki Kaisha,
Tokyo
24-Sep-25
15/Sep/2026 - 15/Nov/2026
2011 82,165
4
4 Post-Panamax Bulk Carriers
21
AMPHITRITE
E
16,500
5.00%
Cobelfret S.A., Luxembourg
12-Feb-26
1/Mar/2027 - 30/Apr/2027
9
2012 98,697
22
POLYMNIA
E
14,000
5.00%
Oldendorff Carriers GmbH & Co.
KG
17-Aug-25
7-Jun-26
2012 98,704
20,000
5.00%
7-Jun-26
1/Mar/2027 - 30/Apr/2027
23
ELECTRA
F
14,000
5.00%
Oldendorff Carriers GmbH & Co.
KG
7-Dec-25
1/Dec/2026 - 31/Jan/2027
2013 87,150
24
PHAIDRA
F
14,500
5.00%
Nippon Yusen Kabushiki Kaisha,
Tokyo
27-Feb-26
20/Feb/2027 - 20/Apr/2027
2013 87,146
8 Capesize Bulk Carriers
25
SEMIRIO
G
21,650
5.00%
Solebay Shipping Cape Company
Limited, Hong Kong
15-Mar-26
31/Jan/2027 - 15/Apr/2027
2007 174,261
26
NEW YORK
G
17,600
5.00%
SwissMarine Pte. Ltd., Singapore
11-Jan-25
1-May-26
10
2010 177,773
27,500
5.00%
Refined Success Limited
1-May-26
1/Feb/2028 - 31/Mar/2028
27
SEATTLE
H
24,500
5.00%
SwissMarine Pte. Ltd., Singapore
29-Nov-25
1/May/2027 - 30/Jun/2027
2011 179,362
28
P. S. PALIOS
H
25,200
5.00%
Glencore Freight Pte. Ltd.
15-Dec-25
15/Nov/2026 - 15/Jan/2027
2013 179,134
29
G. P. ZAFIRAKIS
I
26,800
5.00%
Nippon Yusen Kabushiki Kaisha,
Tokyo
16-Sep-24
16/Aug/2026 - 16/Nov/2026
2014 179,492
30
SANTA BARBARA
I
25,500
5.00%
Dampskibsselskabet Norden A/S
27-Nov-25
1/Mar/2027 - 30/Apr/2027
11
2015 179,426
31
NEW ORLEANS
26,000
5.00%
SwissMarine Pte. Ltd., Singapore
31-Oct-25
1/Dec/2026 - 15/Feb/2027
11
2015 180,960
32
FLORIDA
25,900
5.00%
Bunge S.A., Geneva
29-Mar-22
29/Jan/2027 - 29/May/2027
5
2022 182,063
4 Newcastlemax Bulk Carriers
33
LOS ANGELES
J
24,000
5.00%
MOL Ocean Bulk Pte. Ltd.,
Singapore
1-Nov-25
10/Sep/2026 - 1/Nov/2026
2012 206,104
34
PHILADELPHIA
J
21,500
5.00%
Refined Success Limited
29-May-25
7-Aug-26
2
2012 206,040
35,500
5.00%
Classic Maritime Inc.
7-Aug-26
10/Mar/2027-10/May/2027
35
SAN FRANCISCO
K
26,000
5.00%
SwissMarine Pte. Ltd., Singapore
1-Mar-25
25/Oct/2026 - 25/Dec/2026
2017 208,006
36
NEWPORT NEWS
K
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.
1Charterers have agreed to compensate the Owners, for any time in excess of the period commencing on April 20, 2026, to be paid at double the agreed hire
rate or the rate of 115% of the average of the relevant Baltic Tess 58 Supramax Index, for the days exceeding the period or the vessel’s present Charter Party
rate, whichever of the two is higher.
2Based on latest information.
3Charterers have agreed to compensate the Owners, for any time in excess of the period commencing on July 20, 2026, to be paid at the agreed hire rate or
the rate of 125% of the average of the relevant Baltic Tess 58 Supramax Index, for the days exceeding the period or the vessel’s present Charter Party rate,
whichever of the two is higher.
4Vessel on scheduled drydocking from April 5, 2026 to May 2, 2026.
5Bareboat chartered-in for a period of ten years.
5
6Charterers have agreed to compensate the Owners, for any time in excess of the period commencing on May 20, 2026, to be paid at the rate of 100% of the
average of the Baltic Panamax Index 5TC average for the days exceeding the period or the vessel’s present charter party rate whichever is higher.
7The charter rate was US$9,000 per day for the first thirty-five (35) days of the charter period.
8Estimated date.
9The charter rate was US$13,000 per day for the first thirty (30) days of the charter period.
10The charter rate was US$6,300 per day for the first trip of the charter period.
11Bareboat chartered-in for a period of eight years.
6
Factors Affecting Our Results of Operations
We believe that our results of operations are affected by the following factors:
(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant
period, as measured by the sum of the number of days each vessel was a part of 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 a period during which each vessel in 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 to scheduled repairs or repairs under guarantee, vessel upgrades or special
surveys and the aggregate amount of 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 to 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 a
company's efficiency in 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, or TCE, is defined as 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 be comparable to TCE rates of other companies due to
differences in methods of calculation. TCE is a non-GAAP measure, and management believes it is
useful to investors because it is a standard shipping industry performance measure used primarily to
compare daily earnings generated by vessels on time charters with daily earnings generated by vessels
on voyage charters, because charter hire rates for vessels on voyage charters are generally not
expressed in per day amounts while charter hire rates for vessels on time charters are generally
expressed in such amounts. TCE is used by management to assess and compare the vessels’
profitability.
(7) Daily vessel operating expenses, which include crew wages and related costs, the cost of
insurance, expenses relating to repairs and maintenance, the costs of 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:
7
For the six months ended June 30,
2026
2025
Ownership days
6,516
6,768
Available days
6,471
6,632
Operating days
6,456
6,602
Fleet utilization
99.8%
99.5%
Time charter equivalent (TCE) rate
$
16,309
$
15,615
The following table reflects the calculation of our TCE rates for the periods presented:
For the six months ended June 30,
2026
2025
in thousands of US Dollars, except for days and
TCE rates
Time charter revenues
$
112,020
$
109,625
less: Voyage expenses
(6,483)
(6,064)
Time charter equivalent revenues
105,537
103,561
Available days
6,471
6,632
Time charter equivalent (TCE) rate
$
16,309
$
15,615
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 of daily charter hire rates that our vessels earn under charters,
which, in turn, are affected by a number of factors, including:
●
●
●
●
●
●
●
Vessels operating on time charters for a certain period of time provide more predictable cash flows over
that period of 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 to capture increased profit
margins during periods of improvements in charter rates although their owners would be exposed to the
risk of declining charter rates, which may have a materially adverse impact on financial performance. As
8
we employ vessels on period charters, future spot charter rates may be higher or lower than the rates at
which we have employed our vessels on period charters. Our time charter agreements subject us to
counterparty risk. In depressed market conditions, charterers may seek to renegotiate the terms of their
existing charter parties or avoid their obligations under those contracts. Should a counterparty fail to
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
We incur voyage expenses that mainly include commissions because all of our vessels are employed
under time charters that require the charterer to bear voyage expenses such as 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 of bunkers. When a vessel is delivered to a charterer, bunkers are
purchased by the charterer and sold back to us on the redelivery of the vessel. Bunker gain, or loss,
results when a vessel is redelivered by her charterer and delivered to the next charterer at different
bunker prices, or quantities.
We currently pay commissions ranging from 4.75% to 5.00% of the total daily charter hire rate of 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
to DSS are eliminated from our consolidated financial statements as intercompany transactions. The
effect of bunker prices cannot be determined, as a gain or 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 by
the Company when the vessel is delivered to a new charterer.
Vessel Operating Expenses
Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses
relating to repairs and maintenance, the cost of spares and consumable stores, tonnage taxes,
environmental plan costs and health, safety, quality and vetting. Our vessel operating expenses generally
represent fixed costs.
Vessel Depreciation
The cost of our vessels is depreciated on a straight-line basis over the estimated useful life of 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 on historical average prices of the cost of the light-weight ton of vessels being
scrapped.
General and Administrative Expenses
We incur general and administrative expenses which include our onshore related expenses such as
payroll expenses of employees, executive officers, directors and consultants, compensation cost of
restricted stock awarded to senior management and non-executive directors, traveling, promotional and
other expenses of the public company, such as legal and professional expenses and other general
expenses. General and administrative expenses are not affected by the size of the fleet. However, they
9
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. As of June 30, 2026, total long-term debt amounted to $503.1 million and
finance liabilities amounted to $109.1 million.
We manage our exposure to interest rates by maintaining a mix of 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, in 2023, we entered into an 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, 2026, compared to the six months ended June 30, 2025
Time charter revenues.
six months ended June 30, 2026, compared to $109.6 million for the same period of 2025. The increase
in time charter revenues was due to the increased average time charter equivalent rate of $16,309 per
vessel per day that the Company achieved for its vessels in the six months ended June 30, 2026,
compared to $15,615 in the same period of 2025, representing a 4% increase. This increase was partly
offset by the decreased operating days in the six months ended June 30, 2026, 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, 2026, were 6,456 compared to 6,602 for the
same period of 2025.
Voyage expenses.
ended June 30, 2026, compared to $6.1 million in the six months ended June 30, 2025. The increase
was primarily attributable to higher miscellaneous voyage expenses, which amounted to $0.7 million in
the six months ended June 30, 2026, compared to $0.3 million in the same period of 2025. The increase
was also attributable to higher commissions, which increased by 4% to $5.7 million in the six months
ended June 30, 2026, from $5.5 million in the same period in 2025, primarily as a result of increased
revenues. These increases were partially offset by the absence of losses on bunkers in the six months
ended June 30, 2026, compared to losses of $0.3 million in the same period of 2025. The loss on
bunkers was mainly due to the difference in the price of bunkers paid by the Company to the charterers
on the redelivery of 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 increased by $0.4 million, or 1%, to $40.4 million
in the six months ended June 30, 2026, compared to $40.0 million in the six months ended June 30,
2025. The increase occurred despite the operation of a smaller fleet during the 2026 period and was
primarily attributable to higher spares, repairs, stores and supplies expenses. On a per vessel-day basis,
10
operating expenses increased, reflecting crew wages increases and elevated travel expenses associated
with crew changes, higher repairs and spares. Total daily operating expenses were $6,203 in the six
months ended June 30, 2026, compared to $5,905 in the six months ended June 30, 2025.
Depreciation and amortization of deferred charges.
increased by $1.4 million, or 6%, to $24.2 million in the six months ended June 30, 2026, compared to
$22.8 million in the six months ended June 30, 2025. The increase was primarily driven by higher
amortization of deferred drydocking and special survey costs, reflecting the large number of vessels that
completed scheduled drydockings and special surveys in the second half of 2025, increasing the
amortization cost base. The increase was partially offset by lower depreciation expense due to the
reduction in the size of the Company's fleet.
General and administrative expenses
. General and administrative expenses decreased by $0.1 million, or
1%, to $17.0 million in the six months ended June 30, 2026, compared to $17.1 million in the six months
ended June 30, 2025. The decrease was primarily attributable to lower restricted stock compensation
expense in the six months ended June 30, 2026 compared to the corresponding period in 2025, resulting
from the accelerated vesting of restricted shares granted to two board members who resigned in May 2025.
The decrease was partially offset by higher payroll costs, consultancy fees and travel expenses.
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.
Interest expense and finance costs.
million in the six months ended June 30, 2026, compared to $21.9 million in the six months ended June
30, 2025. The decrease was primarily attributable to lower average outstanding balances of debt and
finance lease liabilities, as well as lower interest rates.
Interest and other income.
Interest and other income costs increased by $2.9 million or 76% to $6.7
million in the six months ended June 30, 2026, compared to $3.8 million in the six months ended June
30, 2025. This increase is attributed to the dividend income of $5.4 million received in the six months
ended June 30, 2026, from the investment in Genco Shipping & Trading Limited (“Genco”). The increase
was partially offset by lower interest income resulting from a lower average balance of time deposits and
lower interest rates compared to the same period in 2025.
Gain(loss) on derivative instruments.
Gain on derivative instruments amounted to $0.2 million in the six
months ended June 30, 2026, compared to a loss of $0.2 million in the same period of 2025, which is
mainly attributable to the fair value change of the interest rate swap with DNB which the Company
entered into on July 6, 2023.
Gain/(loss) on related party investments.
Loss on related party investments amounted to $0.1 million in the
six months ended June 30, 2026, compared to a gain of $2.5 million for the same period of 2025. The
variance principally reflects changes in the fair value of the Company's investment in OceanPal, including
the effects of equity issuances by OceanPal that diluted the Company's ownership interest.
Gain/(Loss) on equity securities.
Gain on equity securities amounted to $40.7 million in the six months
ended June 30, 2026, compared to a loss of $0.4 million in the same period in 2025. The variance
primarily reflects changes in the fair value of the Company's investment in Genco, driven by an increase
in Genco's share price during the first half of 2026, compared to a decrease in its share price during the
first half of 2025.
11
Gain/(loss) on warrants.
Loss on warrants amounted to $1.1 million in the six months ended June 30,
2026, compared to a gain of $0.5 million for the same period of 2025, which is mainly attributable to the
remeasurement of warrant liability and the gain or loss from the settlement of the warrants that were
exercised.
Loss from equity method investments.
Loss from equity method investments amounted to $0.4 million in
the six months ended June 30, 2026, compared to $0.7 million in the six months ended June 30, 2025.
The loss for the six months ended June 30, 2026 primarily reflects the Company's losses from the
investments in Diana Mariners, Ecogas, Bergen Ultra and DWM, amounting to $0.8 million, partially
offset by the gain from the investment in Windward of $0.4 million.
B. Liquidity and Capital Resources
Historically, we finance our short-term and long-term capital requirements with cash from operations,
cash balances, equity contributions from shareholders, long-term bank debt, finance liabilities and senior
unsecured bonds. Our main uses of 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 of dividends.
Our short-term liquidity requirements include funding the installments for the construction of two vessels
with expected deliveries in 2027 and 2028, funding the construction of an office building, payments of
committed capital under the terms of our joint ventures in Windward and Ecogas, expenditures relating to
scheduled drydock and special surveys of our vessels to comply with international and regulatory
standards, payments of interest and principal installments under our bank loans, our bond, and lease
agreements and payment of dividends, common and preferred. Our primary sources of short-term
liquidity include cash generated from operating activities, available cash balances, proceeds from the
exercise of warrants and vessel sales.
Our long-term liquidity requirements include funding our newbuilding vessel installments, interest and
principal payments on outstanding debt, bond, and lease agreements, loan maturities, payment of
dividends, common and preferred, if declared by the board of directors, expenditures for drydock and
special surveys as they become due. Sources of funding for our long-term liquidity requirements include
cash flows from operations, available cash balances, bank borrowings, issuance of debt and equity
securities, and vessel sales.
As of June 30, 2026, and December 31, 2025, working capital, which is current assets minus current
liabilities, including the current portion of long-term debt, was $141.4 million and $155.3 million,
respectively. The decrease in working capital is primarily attributable to the increase in current liabilities,
due to the reclassification of the outstanding balance of the DNB loan from long-term to current liabilities,
as a result of discussions on the margin reset provisions included in the loan agreement, which have not
yet commenced. The decrease was partly offset by an increase in investments in equity securities related
to our investment in Genco. We believe that our working capital is sufficient to cover our short-term
requirements.
Cash and cash equivalents, including restricted cash, was $117.9 million on June 30, 2026, and $122.3
million on December 31, 2025. Restricted cash, non-current, which represents minimum liquidity
requirements under our loan facilities, as of June 30, 2026, and December 31, 2025, amounted to $18.0
million and $18.0 million, respectively. Restricted cash, current consists of loan proceeds maintained in a
pledged account in order to reduce the loan’s margin and as of June 30, 2026, and December 31, 2025,
12
amounting to $51.3 million and $53.8 million, respectively. Our cash and cash equivalents and restricted
cash represent our available sources of liquidity to meet our short- and long-term obligations.
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased by $12.0 million, or 47%. For the six months ended
June 30, 2026, net cash provided by operating activities was $37.8 million compared to net cash
provided by operating activities of $25.8 million in the six months ended June 30, 2025. This increase
was primarily due to lower drydocking and special survey costs, as a result of a lower number of vessels
undergoing such surveys, as well as higher revenues resulting from increased average time charter rates
achieved by our fleet.
Net Cash Used in Investing Activities
Net cash used in investing activities was $4.1 million for the six months ended June 30, 2026, which
consists of $0.6 million paid for vessel acquisitions and improvements; $3.7 million of proceeds as a
return of capital from the sale by Bergen Ultra, an equity method investee, of the vessel DSI Drammen in
the first quarter of 2026; $8.5 million paid for investments consisting of $6.3 million advances to
Windward and Ecogas to fund the construction of vessels and $2.2 million of transaction-related costs in
connection with our offer to acquire Genco; $3.7 million proceeds from the sale of 148,603 shares of
Genco; $0.4 million advanced as a loan to Diana Mariners and $1.8 million paid to acquire property and
other assets.
Net cash used in investing activities was $29.3 million for the six months ended June 30, 2025, which
consists of $0.7 million paid for vessel acquisitions and improvements; $11.5 million of proceeds from the
sale of the vessel Alcmene during the first quarter of 2025; $40.3 million paid for investments consisting
of $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 Genco; $3.5 million received as return of capital due to the
revaluation of our investment in Windward resulting from the admission of a new partner to the joint
venture; $17.5 million of proceeds from the maturity of time deposits placed in the prior year; $20.0
million placed in time deposits with maturities of over three months and $0.8 million paid to acquire
property and other assets.
Net Cash Used in Financing Activities
Net cash used in financing activities was $38.1 million for the six months ended June 30, 2026, which
consists of $31.1 million of debt repayments; $2.1 million proceeds from the issuance of common stock;
$2.9 million and $2.5 million of dividends paid on our Series B Preferred Stock and common stock,
respectively and; $3.7 million of commitment fees paid under the committed facility related to our offer to
acquire Genco.
Net cash used in 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 debt repayments;
and $2.9 million and $2.3 million of dividends paid on our Series B Preferred Stock and common stock,
respectively.
F-1
Page
DIANA SHIPPING INC.
INDEX TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets as of June 30, 2026 (unaudited) and December 31, 2025 ......
F-2
Unaudited Consolidated Statements of Income for the six months ended June 30, 2026 and
2025 ................................ ................................ ................................ ................................ ......
F-3
Unaudited Consolidated Statements of Comprehensive Income for the six months ended
June 30, 2026 and 2025 ................................ ................................ ................................ .........
F-3
Unaudited Consolidated Statements of Stockholders' Equity for the six months ended June
30, 2026 and 2025 ................................................................ ................................ .................
F-4
Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2026
and 2025 ................................ ................................ ................................ ................................
F-5
Notes to Unaudited Interim Consolidated Financial Statements ................................ .............
F-6
F-2
DIANA SHIPPING INC.
CONSOLIDATED BALANCE SHEETS
June 30, 2026 (unaudited) and December 31, 2025
(Expressed in thousands of U.S. Dollars – except for share and per share data)
June 30, 2026
December 31, 2025
ASSETS
Current Assets
Cash and cash equivalents
$
$
Restricted cash, current (Note 7)
Accounts receivable, trade
Due from related parties (Note 3)
Inventories
Prepaid expenses and other assets
Investments in equity securities (Note 4(b))
Investments in a related party (Note 4(a))
Equity method investment, current (Note 3 (b))
Total Current Assets
Fixed Assets:
Advances for vessels under construction (Note 5)
Vessels, net (Note 5)
Property and equipment, net (Note 6)
Total fixed assets
Other Noncurrent Assets
Restricted cash, non-current (Note 7)
Equity method investments (Note 3)
Other non-current assets (Note 3(d) and 4(b))
Deferred costs
Total Non-current Assets
Total Assets
$
$
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Long-term debt, current, net of deferred financing costs (Note 7)
$
$
Finance liabilities, current (Note 8)
Accounts payable
Due to related parties (Note 2)
Accrued liabilities
Deferred revenue
Warrant liability, current (Note 10(g))
Fair value of derivatives (Note 7)
Total Current Liabilities
Non-current Liabilities
Long-term debt, net of current portion and deferred financing costs (Note 7)
Finance liabilities, net of current portion (Note 8)
Fair value of derivatives (Note 7)
Warrant liability (Note 10(g))
Other non-current liabilities
Total Noncurrent Liabilities
Commitments and contingencies (Note 9)
-
-
Stockholders' Equity
Preferred stock (Note 10)
Common stock, $
respectively (Note 10)
Additional paid-in capital
Accumulated other comprehensive income
Accumulated deficit
(583,924 )
(628,468 )
Total Stockholders' Equity
$
$
The accompanying notes are an integral part of these unaudited interim consolidated financial statements
F-3
DIANA SHIPPING INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
For the six months ended June 30, 2026 and 2025
(Expressed in thousands of U.S. Dollars – except for share and per share data)
2026
2025
REVENUES:
Time charter revenues
$
$
OPERATING EXPENSES
Voyage expenses
Vessel operating expenses (Note 2)
Depreciation and amortization of deferred charges
General and administrative expenses (Note 2)
Management fees to a related party (Note 3(a))
Gain on sale of vessels
(1,500 )
Other operating loss/(income)
(21 )
Operating income, total
$
$
OTHER INCOME/(EXPENSE)
Interest expense and finance costs (Notes 11 and 4 (b))
(19,427 )
(21,890 )
Interest and other income
Gain/(loss) on derivative instruments, net (Note 7)
(227 )
Gain/(loss) on related party investments (Note 4(a))
(100 )
Gain/(loss) on equity securities (Note 4(b))
(403 )
Gain/(loss) on warrants (Note 10(g))
(1,086 )
Loss from equity method investments (Note 3)
(418 )
(747 )
Total other income/(expenses), net
$
$
(16,492 )
Net income
$
$
Dividends on series B preferred shares (Notes 10(b) and 12)
(2,884 )
(2,884 )
Net income attributable to common stockholders
$
$
Earnings per common share, basic
$
$
Earnings per common share, diluted
$
$
Weighted average number of common shares outstanding, basic
12)
Weighted average number of common shares outstanding, diluted
12)
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
For the six months ended June 30, 2026 and 2025
(Expressed in thousands of U.S. Dollars)
2026
2025
Net income
$
$
Currency translation adjustment
(1,463 )
Other comprehensive income/(loss)
(1,463 )
Comprehensive income
$
$
The accompanying notes are an integral part of these unaudited interim consolidated financial statements
F-5
DIANA SHIPPING INC.
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the six months ended June 30, 2026 and 2025
(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
Shares
Par
Value
# of
Shares
Par
Value
# of Shares
Par
Value
Additional
Paid-in
Capital
Other
Comprehensive
Income
Accumulated
Deficit
Total Equity
BALANCE, December 31,
2024
$
$
$
$
$
$
$
(635,896 )
$
Net income
-
-
-
-
-
-
-
-
-
-
Issuance of Common Stock
(Note 10(g)
-
-
-
-
-
-
-
-
Issuance of Restricted Stock
and Compensation Cost
(Note 10(h))
-
-
-
-
-
-
-
-
Stock repurchased and
retired (Note 10(e))
-
-
-
-
-
-
(11,442,645 )
(114 )
(22,934 )
-
-
(23,048 )
Dividends on Common Stock
($
-
-
-
-
-
-
-
-
-
-
(2,316 )
(2,316 )
Dividends on Preferred Stock
($
1.109375
10(b)
-
-
-
-
-
-
-
-
-
-
(2,884 )
(2,884 )
Other Comprehensive
Income
-
-
-
-
-
-
-
-
-
-
BALANCE, June 30, 2025
$
$
$
$
$
$
$
(633,557 )
$
BALANCE, December 31,
2025
$
$
$
$
$
$
$
(628,468 )
$
Net income
-
-
-
-
-
-
-
-
-
-
Issuance of Common Stock
(Note 10(g)
-
-
-
-
-
-
-
-
Issuance of Restricted Stock
and Compensation Cost
(Note 10(h))
-
-
-
-
-
-
-
-
Dividends on Common Stock
($
10(f))
-
-
-
-
-
-
-
-
-
-
(2,480 )
(2,480 )
Dividends on Preferred Stock
($
1.109375
10(b))
-
-
-
-
-
-
-
-
-
-
(2,884 )
(2,884 )
Other Comprehensive loss
-
-
-
-
-
-
-
-
-
(1,463 )
-
(1,463 )
BALANCE, June 30, 2026
$
$
$
$
$
$
$
(583,924 )
$
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
F-6
DIANA SHIPPING INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2026 and 2025
(Expressed in thousands of U.S. Dollars)
2026
2025
Net income
$
$
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization of deferred charges
Amortization of debt issuance costs (Note 11)
Compensation cost on restricted stock (Note 10(h))
Change in fair value of derivatives (Note 7)
(252 )
Gain on sale of vessels (Note 5)
(1,500 )
Gain/(Loss) on related party investments (Note 4 (a))
(2,482 )
Loss from equity method investments, net of dividend (Note 3)
(Gain)/loss on equity securities (Note 4(b))
(40,683 )
(Gain)/loss on warrants (Note 10(g))
(515 )
(Increase) / Decrease
Accounts receivable, trade
(2,944 )
Due from related parties
Inventories
(259 )
(140 )
Prepaid expenses and other assets
(2,471 )
Increase / (Decrease)
Accounts payable
(584 )
Due to related parties
(25 )
Accrued liabilities
(1,945 )
Deferred revenue
(295 )
(162 )
Other non-current liabilities
Drydock cost
(2,010 )
(6,744 )
Net Cash Provided by Operating Activities
$
$
Payments for vessels under construction and vessel improvements (Note 5)
(643 )
(727 )
Proceeds from sale of vessels, net of expenses (Note 5)
Return of capital from equity method investment (Note 3)
Payments to acquire investments (Note 3 and 4 (b))
(8,539 )
(40,295 )
Proceeds from sale of investments (Note 4 (b))
Time deposit placements
(20,000 )
Time deposits maturities
Loan to related party, net
(390 )
Payments to acquire property, furniture and fixtures (Note 6)
(1,822 )
(851 )
Net Cash Used in Investing Activities
$
(4,077 )
$
(29,333 )
Proceeds from issuance of common stock, net of fees (Note 10(g))
Payments of dividends, preferred stock (Note 10(b))
(2,884 )
(2,884 )
Payments of dividends, common stock (Note 10(f))
(2,480 )
(2,316 )
Payments for repurchase of common stock (Note 10(e))
(23,048 )
Payments of financing costs (Note 4 (b))
(3,722 )
Repayments of long-term debt and finance liabilities (Notes 7 and 8)
(31,095 )
(28,391 )
Net Cash Used in Financing Activities
$
(38,084 )
$
(56,570 )
Cash, Cash Equivalents and Restricted Cash, Period Decrease
(4,327 )
(60,068 )
Cash, Cash Equivalents and Restricted Cash, Beginning Balance
Cash, Cash Equivalents and Restricted Cash, Ending Balance
$
$
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents
$
$
Restricted cash, current
Restricted cash, non-current
Cash, Cash Equivalents and Restricted Cash, Total
$
$
SUPPLEMENTAL CASH FLOW INFORMATION
Noncash investment-related expenses
Interest paid, net of amounts capitalized
$
$
The accompanying notes are an integral part of these unaudited interim consolidated financial statements
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-7
1. Basis of Presentation and General Information and Recent Accounting
Pronouncements
The accompanying unaudited interim consolidated financial statements include the accounts of Diana
Shipping Inc., or DSI and its wholly owned subsidiaries (collectively, the “Company”). DSI was formed on
March 8, 1999, as Diana Shipping Investment Corp. under the laws of the Republic of Liberia. In
February 2005, the Company’s articles of incorporation were amended. Under the amended articles of
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 in
accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial
information. Accordingly, they do not include all the information and notes required by 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, 2025 included in the Company’s Annual Report on Form 20-F filed with the
Securities and Exchange Commission on March 13, 2026 and, in the opinion of management, reflect all
normal recurring adjustments considered necessary for a fair presentation of the Company's financial
position, results of operations and cash flows for the periods presented. Operating results for the six
months ended June 30, 2026, are not necessarily indicative of the results that might be expected for the
fiscal year ending December 31, 2026.
The consolidated balance sheet as of December 31, 2025, has been derived from the audited
consolidated financial statements as of 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 in of dry bulk carrier vessels. The Company operates its own fleet
through Diana Shipping Services S.A. (or “DSS”), a 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.
The Company has determined that it operates under
vessels, and the assets of such segment are presented under the caption Total assets in the
accompanying unaudited interim condensed consolidated balance sheets. The segment's significant
expenses regularly provided to chief operating decision maker (“CODM”) are the consolidated expenses
as presented on the face of the unaudited interim condensed consolidated statements of income. The
accounting policies applied to the reportable segment are the same as those used in the preparation of
the Company's consolidated financial statements included in the Company's Annual Report on Form 20-
F for the year ended December 31, 2025.
Significant Accounting Policies and Recent Accounting Pronouncements:
A discussion of the Company’s significant accounting policies can be found in Note 2 to the Company’s
Consolidated Financial Statements included in the Annual Report on Form 20-F for the year ended
December 31, 2025. There have been no material changes to these policies in the six months ended
June 30, 2026, except for as discussed below:
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-8
Nonrevolving Loan Commitment Fees
During the six months ended June 30, 2026, the Company adopted a change in its accounting policy
related to loan commitment fees. Previously, loan commitment fees were expensed as incurred or were
capitalized as part of the vessels' construction cost. Under the new policy, in accordance with ASC 310-
20-25-11, commitment fees are deferred until the debt is drawn and are subsequently presented as a
contra-liability to the debt and amortized using the effective interest method.
Management believes that this change results in a more appropriate presentation of the Company’s
financial position and results of operations.
The Company applied this change prospectively from the date of adoption, as the impact of the change in
accounting policy on the Company’s consolidated financial statements for prior periods was not material.
New Accounting Pronouncements
In May 2026, the FASB issued Accounting Standards Update No. 2026-02, Environmental Credits and
Environmental Credit Obligations (Topic 818), which establishes guidance for the recognition,
measurement, presentation and disclosure of environmental credits and related environmental credit
obligations. The amendments are effective for annual reporting periods beginning after December 15,
2027, including interim periods within those annual reporting periods, with early adoption permitted, and
are required to be applied retrospectively. The Company is currently evaluating the impact of adopting
this guidance on its consolidated financial statements and related disclosures.
2. Transactions with related parties
a) Altair Travel Agency S.A. (“Altair”):
agent, Altair, which is controlled by the Company’s CEO Mrs. Semiramis Paliou. Travel expenses for the
six months ended June 30, 2026 and 2025 amounted to $
, respectively, and are mainly
included in vessel operating expenses in the accompanying unaudited interim consolidated statements of
income. As of June 30, 2026 and December 31, 2025, an amount of $
, respectively, was due
to Altair, included in due to related parties in the accompanying consolidated balance sheets.
b) Steamship Shipbroking Enterprises Inc. or Steamship:
the Company’s CEO Mrs. Semiramis Paliou. Steamship provides brokerage services to DSI for a fixed
monthly fee, payable quarterly in advance, commissions for sale and purchase activities and expenses,
pursuant to a Brokerage Services Agreement. For the six months ended June 30, 2026 and 2025,
brokerage fees, including commissions and other expenses, amounted to $
,
respectively, and are included mainly in general and administrative expenses in the accompanying
unaudited interim consolidated statements of income. As of June 30, 2026, and December 31, 2025,
there was
agreement with Steamship whereby certain rights and obligations relating to Fuel EU Maritime
compliance for vessels managed by the Company and DWM were assigned to Steamship. Pursuant to
the agreement, the Company advanced to Steamship $
2026.
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-9
3. Equity Method Investments
a) Diana Wilhelmsen Management Limited, or DWM:
Management Inc., a wholly owned subsidiary of DSI, and Wilhelmsen Ship Management Holding AS, an
unaffiliated third party, each holding
% of DWM. As of June 30, 2026 and December 31, 2025, the
investment in DWM amounted to $
accompanying consolidated balance sheets. For the six months ended June 30, 2026 and 2025, the
investment in DWM resulted in a loss of $
, respectively, included in loss from equity method
investments in the accompanying unaudited interim consolidated statements of income.
DWM performs the technical and commercial management of five vessels in the Company’s fleet for a
fixed monthly fee and a percentage of their gross revenues. Management fees for the six months ended
June 30, 2026 and 2025 amounted to $
, respectively, and are presented as management
fees to a related party in the accompanying unaudited interim consolidated statements of income.
Commissions for the six months ended June 30, 2026 and 2025 amounted to $
,
respectively, and are included in voyage expenses, in the accompanying unaudited interim consolidated
statements of income. As of June 30, 2026 and December 31, 2025, there was an amount of $
$
, respectively, due from DWM included in due from related parties in the accompanying consolidated
balance sheets.
b) Bergen Ultra LP, or Bergen:
acquiring, owning, chartering and operating the vessel DSI Drammen in which the Company holds a
%
partnership interest. On November 19, 2025, Bergen entered into an agreement with an unrelated third
party to sell DSI Drammen for $
. As a result, the Company reclassified its equity method
investment to current assets. On January 29, 2026 and following delivery of the vessel to the new
owners, the Company received $
For the six months ended June 30, 2026 and 2025, the Company’s investment in Bergen resulted in a
loss of $
, respectively, included in loss from equity method investments in the accompanying
unaudited interim consolidated statements of income. As of June 30, 2026 and December 31, 2025, the
investment in Bergen amounted to $
, respectively, included in equity method investment,
current, in the accompanying consolidated balance sheets.
The Company has an administrative agreement with Bergen under which it provides administrative
services. It also entered into a commission agreement pursuant to which it guaranteed Bergen’s loan and
received a commission of
% per annum on the outstanding loan balance, payable quarterly. Upon
completion of the vessel sale and full repayment of Bergen’s loan with Nordea, the Company’s corporate
guarantee has been released.
For the six months ended June 30, 2026 and 2025, income from management fees from Bergen
amounted to $
, respectively, included in time charter revenues. Income from the loan guarantee
amounted to $
, respectively, included in interest and other income in the accompanying
unaudited interim consolidated statements of income. As of June 30, 2026, and December 31, 2025,
amounts due from Bergen totaled $
and $
, respectively, and are included in due from related
parties.
On June 4, 2026, Bergen declared a dividend of $
reduced the carrying amount of the equity method investment and is included in due from related parties
(Note 14).
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-10
c) Windward Offshore GmbH, or Windward:
wholly owned subsidiary Diana Energize Inc., or Diana Energize, entered into a joint venture agreement,
with unrelated third party companies to form Windward Offshore GmbH & Co. KG, or Windward, based in
Germany, for the purpose of establishing and operating an offshore wind vessel company that aims to
become a leading provider of service vessels to the growing offshore wind industry. Diana Energize
committed to a capital contribution of €
% interest in the limited
partnership, of which as of June 30, 2026, €
and December 31, 2025, the investment in Windward amounted to $
, respectively,
which includes capital contributions of $
investments in the accompanying consolidated balance sheets. For the six months ended June 30, 2026
and 2025, the investment in Windward resulted in a gain of $
, respectively,
included in loss from equity method investments in the accompanying unaudited interim consolidated
statements of income. As of June 30, 2026, Windward had
under construction. The third vessel was delivered in early July 2026, while the fourth vessel is expected
to be delivered in the fourth quarter of 2026.
d) Diana Mariners Inc., or Diana Mariners:
wholly owned subsidiary Cebu Shipping Company Inc., or Cebu, acquired
% of Cohen Global Maritime
Inc., or Cohen, a company organized in the Republic of the Philippines for the purpose of providing
manning agency services, which in August 2024, was renamed Diana Mariners. As of June 30, 2026 and
December 31, 2025, the Company’s investment in Diana Mariners amounted to $
,
respectively. Amounts due from Diana Mariners totaled $
, respectively, and are included in
due from related parties, in the accompanying consolidated balance sheets. For the six months ended
June 30, 2026 and 2025, the investment in Diana Mariners resulted in a loss of $
,
respectively, which is included in loss from equity method investments in the accompanying unaudited
interim consolidated statements of income. As of June 30, 2026, all of the Company’s ship-owning
subsidiaries have entered into manning agreements with Diana Mariners. On May 18, 2026, the
Company entered into a loan agreement with Diana Mariners Inc., pursuant to which the Company
provided a loan of $
issuance and is included in other non-current assets in the accompanying 2026 consolidated balance
sheet.
e) Ecogas Holding AS, or Ecogas:
subsidiary Diana Gas Inc., or Diana Gas, entered into a joint venture agreement with an unrelated third
party to establish Ecogas, a company formed under the laws of Norway, for the purpose of building
7,500 cbm LPG vessels with delivery in 2027. Under the terms of the agreement, the Company’s equity
commitment in Ecogas is $
, representing an
% equity interest. The Company and its strategic
partner hold equal voting rights of
% each, and as a result, the Company accounts for its investment in
Ecogas under the equity method of accounting. As of June 30, 2026 and December 31, 2025, the
investment in Ecogas amounted to $
, respectively, which includes capital contributions
of $
, respectively. For the six months ended June 30, 2026, the investment in Ecogas
resulted in a loss of $
unaudited interim consolidated statements of income.
4. Investments in related parties and other
a) OceanPal Inc., or OceanPal:
common stock at the Company’s option, have no voting rights and a liquidation preference equal to the
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-
11
stated value of $
. Dividends on each share of Series C Preferred Shares are cumulative and accrue
at the rate of
% per annum. Dividends are payable in cash or, at OceanPal’s election, in kind.
For the six months ended June 30, 2026 and 2025, dividend income from the Series C preferred shares
amounted to $
, respectively, included in interest and other income in the accompanying
unaudited interim consolidated statements of income.
As of June 30, 2026 and December 31, 2025, the Company’s investment in Series C preferred shares
amounted to $
, respectively, included in investments in a related party, current, in the
accompanying consolidated balance sheets.
As of June 30, 2026 and December 31, 2025, the Company held
OceanPal (NASDAQ:
SVRN), respectively, reflecting the impact of a reverse stock split effected in March
2026. As of the same dates, the fair value of these shares amounted to $
, respectively,
determined using Level 1 inputs of the fair value hierarchy, included in investments in a related party,
current in the accompanying consolidated balance sheets. For the six months ended June 30, 2026 and
2025, the investment’s revaluation resulted in an unrealized loss of $
$
, respectively, included in gain/(loss) on related party investments, separately presented in the
accompanying unaudited interim consolidated statements of income.
b) Investments in equity securities:
respectively. During the second quarter of 2026, the Company sold
$
. As of June 30, 2026 and December 31, 2025, the Company’s investment had a fair value of
$
, respectively, determined using Level 1 inputs of the fair value hierarchy and
presented as investment in equity securities in the accompanying consolidated balance sheets. The
securities are considered marketable securities readily convertible into cash to fund current operations
and are classified as current assets in the accompanying consolidated balance sheets.
For the six months ended June 30, 2026 and 2025, the revaluation of the investment resulted in
unrealized gain of $
securities in the accompanying unaudited interim consolidated statement of income. For the six months
ended June 30, 2026, dividend income amounted to $
in the accompanying unaudited interim consolidated statements of income.
The Company has submitted a letter to the Board of Directors of Genco outlining a proposal to acquire all
outstanding shares of Genco not already owned by the Company. As of June 30, 2026, transaction-
related expenses amounted to $
under the committed facility amounted to $
, included in deferred costs in the 2026 accompanying
consolidated balance sheet.
5. Advances for vessels under construction and Vessels, net
It is in the Company’s normal course of business from time to time to acquire and sell vessels.
Accordingly, as of June 30, 2026, the Company had entered into the below transactions.
Vessels under construction
On February 8, 2024, the Company signed an agreement with an unaffiliated third party, for the
construction of
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-12
at Tsuneishi Group (Zhoushan) Shipbuilding Inc., China. The vessels are expected to be delivered to the
Company by the second half of 2027 and the first half of 2028.
As of June 30, 2026 and December 31, 2025, advances for vessels under construction, separately
presented in the accompanying consolidated balance sheets, amounted to $
,
respectively, of which $
2026, capitalized expenses amounted to $
, including capitalized interest of $
The amount reflected in Vessels, net in the accompanying consolidated balance sheets is analyzed as
follows:
Vessel Cost
Accumulated
Depreciation
Net Book
Value
Balance, December 31, 2025
$
$
(267,574 )
$
- Additions for vessel improvements
-
- Depreciation for the period
-
(18,738 )
(18,738 )
Balance, June 30, 2026
$
$
(286,312 )
$
6. Property and Equipment, net
The Company owns the land and building of its principal corporate offices in Athens, Greece and four
plots of land acquired for corporate purposes. Other assets consist of 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, 2025
$
$
(8,483 )
$
- Additions in property and equipment
-
- Depreciation for the period
-
(505 )
(505 )
Balance, June 30, 2026
$
$
(8,988 )
$
7. Long-term debt
The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as
follows:
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-13
June 30, 2026
December 31, 2025
Senior unsecured bond
Secured long-term debt
Total long-term debt
$
$
Less: Deferred financing costs
(5,434 )
(6,380 )
Long-term debt, net of deferred financing costs
$
$
Less: Current long-term debt, net of deferred financing costs,
current
(88,670 )
(50,281 )
Long-term debt, excluding current portion and deferred
financing costs
$
$
8.75% Senior Unsecured Bond
:
In 2024, the Company issued a $
rate coupon of
% payable semi-annually in arrears in January and July of each year. Proceeds from
the bond were used to prepay the balance of the then outstanding bond and for general working capital
purposes. The bond is callable in whole or in part in July 2027 at a price equal to
% of nominal
value; in January 2028 at a price equal to
% of nominal value; in July 2028 at a price equal to
% and after January 2029 at a price equal to
% of nominal value. The bond ranks ahead of
subordinated capital and ranks the same with all other senior unsecured obligations of the Company
other than obligations which are mandatorily preferred by 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, 2026,
mortgaged with first preferred or priority ship mortgages, having an aggregate carrying value of
$
. Additional securities required by the banks include first priority assignment of all earnings,
insurances, first assignment of time charter contracts that exceed a certain period, pledge over the
shares of the borrowers, manager’s undertaking and subordination and requisition compensation and
either a corporate guarantee by DSI (the “Guarantor”) or a guarantee by the ship owning companies
(where applicable), financial covenants, as well as operating account assignments. The lenders may also
require additional security in the future in the event the borrowers breach certain covenants under the
loan agreements. The secured term loans generally include restrictions as to changes in 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.
As of June 30, 2026 and December 31, 2025 minimum cash deposits required to be maintained at all
times under the Company’s loan facilities, amounted to $
, 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 of an event of default. All of the Company’s secured term
loans bear interest at SOFR plus a margin.
As of June 30, 2026, the Company had the following agreements with banks, either as a borrower or as
guarantor, to guarantee the loans of its subsidiaries:
Nordea Bank AB, London Branch (“Nordea”):
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-14
loan agreement, to refinance the balance of the then outstanding loans. The loan is repayable in equal
quarterly instalments of $
.
Export-Import Bank of China:
loan agreement, which is repayable in equal quarterly instalments of $
, each, until its maturity on
.
DNB Bank ASA or DNB:
loan agreement which was drawn on June 27, 2023, to refinance the outstanding balance of another loan
and for working capital purposes. The loan is repayable in equal quarterly instalments of $
. 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 terms of the
loan agreement, the Company and the lender are required to agree on a new margin not later than 120
days prior to the Margin Reset Date. As of June 30, 2026, a new margin had not yet been agreed.
Accordingly, the outstanding balance of the loan and the related interest rate swap liability were
reclassified from non-current liabilities to current liabilities. Under the interest rate swap, the Company
pays a fixed rate and receives floating under term SOFR. The swap has a 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, 2026 and December 31, 2025, the fair value of the interest rate swap was
$
, respectively, and is separately presented in current and non-current liabilities. For the six
months ended June 30, 2026 and 2025, the Company recognized a gain of $
,
respectively, from the swap valuation separately presented as gain/(loss) on derivative instruments in the
accompanying unaudited interim consolidated statements of income. For the six months ended June 30,
2026 and 2025, swap interest expense, amounting to $
nil
, respectively and is included in
gain/(loss) on derivative instruments, net in the accompanying unaudited interim consolidated statement
of income.
Danish Ship Finance A/S or Danish:
Danish, for $
capital purposes. On April 18 and 19, 2023, the Company drew down $
equal quarterly instalments of $
instalment on April 19, 2028. On October 18, 2024, the Company refinanced the outstanding balance of
this loan with a loan which is repayable in equal quarterly instalments of $
$
.
National Bank of Greece S.A. (“NBG”):
loan agreement. The loan proceeds were drawn on the same date and deposited in a pledged account
with the bank to reduce the margin. As of June 30, 2026 and December 31, 2025, the amount of $
and $
, respectively, is presented separately as restricted cash, current in the accompanying
consolidated balance sheets. The Company may withdraw any part or all of the funds from the pledged
account at the end of the loan’s fixed interest period, provided no event of default has occurred. The loan
is repayable in equal quarterly instalments of $
.
As of June 30, 2026 and December 31, 2025, the Company was in compliance with all of its loan
covenants.
As of June 30, 2026, the maturities of the Company’s bond and debt facilities throughout their term, are
shown in the table below. The amounts do not include related debt issuance costs and have been
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-15
adjusted to reflect the reclassification within current liabilities of $
of the loan agreement with DNB discussed above.
Period
Principal Repayment
Year 1
$
Year 2
Year 3
Year 4
Year 5
Year 6 and thereafter
Total
$
8. Finance Liabilities
On March 29, 2022, the Company sold
Florida
from the buyer for a period of
, under which the Company pays a 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 of
the lease on the tenth year.
On August 17, 2022, the Company entered into
third parties for
New Orleans
Santa Barbara
. The vessels were delivered to their buyers on
September 8, 2022 and September 12, 2022, respectively and the Company chartered-in both vessels
under bareboat charter parties for a period of
, each, under which the Company pays a fixed
monthly hire. Under the bareboat charter, 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 of the lease on the eighth year.
On December 6, 2022, the Company sold
DSI Andromeda
the vessel under a bareboat agreement, for a period of
, under which the Company pays a 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 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, 2026
and December 31, 2025, finance liability amounted to $
, respectively, included in
finance liabilities, current and $
current portion. As of June 30, 2026, the weighted average remaining lease term of the above lease
agreements was
% and the sublease income for
the six months ended June 30, 2026 and 2025 was $
, respectively, included in time
charter revenues.
As of June 30, 2026, and throughout the term of the leases, the Company has annual finance liabilities
as shown in the table below:
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-16
Period
Principal Repayment
Year 1
$
Year 2
Year 3
Year 4
Year 5
Year 6 and thereafter
Total
$
9. Commitments and Contingencies
a)
liability, arise in the ordinary course of the shipping business. In addition, losses may arise from
disputes with charterers, agents, insurance and other claims with suppliers relating to the operations
of the Company’s vessels. The Company accrues for the cost of 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 $
vessel per incident, by the P&I Association in which the Company’s vessels are entered.
b)
counterparties, the Company has purchase obligations amounting to $
, at the end of the lease
agreements described in Note 8.
c)
million to Windward and $
d)
follows:
Period
Amount
Year 1
$
Year 2
Total
$
f)
As of June 30, 2026, the Company’s vessels, owned and chartered-in, were fixed under time charter
agreements, considered operating leases. The minimum contractual gross charter revenue expected
to be generated from fixed and non-cancelable time charter contracts existing as of June 30, 2026
and until their expiration was as follows:
Period
Amount
Year 1
$
Year 2
$
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-17
10. Capital Stock and Changes in Capital Accounts
a) Preferred stock
:
preferred stock consists of
designated as Series B Preferred Shares,
and
Company had
b) Series B Preferred Stock:
per share and with liquidation preference at $
shares with respect to dividends, distributions and payments upon liquidation and are subordinated to all
of the existing and future indebtedness.
Dividends on the Series B Preferred Shares are cumulative from the date of original issue and are
payable on the 15th day of January, April, July and October of each year at a dividend rate of
% per
annum, or $
on Series B Preferred Shares amounted to $
. Since February 14, 2019, the Company may redeem,
in whole or in part, the Series B Preferred Shares at a redemption price of $
amount equal to all accumulated and unpaid dividends thereon to the date of redemption, whether or not
declared.
c) Series C Preferred Stock
: As of June 30, 2026, and December 31, 2025, the Company had
owned by an affiliate of its Chief Executive Officer, Ms. Semiramis Paliou.
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.
d) Series D Preferred Stock
: As of June 30, 2026, and December 31, 2025, the Company had
shares of Series D Preferred Stock, issued and outstanding, with par value $
affiliate of its Chief Executive Officer, Ms. Semiramis Paliou. The Series D Preferred Stock is not
redeemable and has
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
is entitled to vote (including any voting power of such holders derived from Series D 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
% of the total number of votes eligible to be cast on such matter, the total
number of votes that holders of Series D Preferred Stock may exercise derived from the Series D
Preferred Stock together with Common Shares and any other voting securities of 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.
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-18
e) Repurchase of Common Shares:
On December 2, 2024, the Company commenced a tender
offer to purchase up to
funds available from cash and cash equivalents. On January 7, 2025, the tender offer was settled and the
Company repurchased and retired a total of
amount of $
.
f) Dividend on Common Stock:
common stock of $
, 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 $
, to all
shareholders of record as of June 17, 2025. On March 18, 2026, the Company paid a cash dividend on
its common stock of $
June 18, 2026, the Company paid a cash dividend on its common stock of $
all shareholders of record as of June 10, 2026.
g) Warrants:
On December 14, 2023, the Company distributed
shareholders of record on December 6, 2023. Holders received one warrant for every five shares of
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 to purchase, at the holder’s
sole and exclusive election, at the exercise price of $
including a bonus share fraction. A bonus share fraction entitles a holder to receive an additional part of a
share of common stock for each warrant exercised without payment of any additional exercise price.
The Company's warrants are classified as liabilities and are remeasured at fair value at each reporting
date, with changes in fair value recognized in earnings. The warrants are listed on the New York Stock
Exchange under the symbol "DSX_W." The fair value of the warrants is determined using quoted market
prices in an active market and is classified as a Level 1 measurement within the fair value hierarchy.
During the six months ended June 30, 2026 and 2025, the Company issued
respectively, having a value of $
, net of expenses, or $
respectively. During the six months ended June 30, 2026 and 2025, the Company received $
$
, in proceeds, net of fees from the exercise of
warrants were exercised as of June 30, 2026, the Company would have issued
common stock, including the shares from the warrants already exercised, with a fair value of $
would have received $
liability amounted to $
, respectively. During the six months ended June 30, 2026 and
2025, gain/loss on warrants amounted to a loss of $
, respectively, and is
separately presented in the accompanying unaudited interim consolidated statements of income.
h) Incentive Plan:
Effective April 29, 2026, the Company amended and restated its Equity Incentive
Plan to increase the aggregate number of shares of common stock that may be delivered pursuant to
awards granted under the plan by
remained reserved for issuance according to the Company’s incentive plan.
Restricted stock as of June 30, 2026 and 2025 is analyzed as follows:
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-19
Number of Shares
Weighted Average
Grant Date Price
Outstanding as of December 31, 2024
$
Granted
Vested
(3,134,365 )
Outstanding as of June 30, 2025
$
Outstanding as of December 31, 2025
$
Granted
Vested
(2,945,335 )
Outstanding as of June 30, 2026
$
The fair value of the restricted shares has been determined with reference to the closing price of the
Company’s stock on the date such awards were approved by the Company’s board of directors. The
aggregate compensation cost is recognized ratably in the accompanying unaudited interim consolidated
statements of income over the respective vesting periods. For the six months ended June 30, 2026 and
2025, compensation cost amounted to $
, respectively, and is included in general and
administrative expenses in the accompanying unaudited interim consolidated statements of income.
As of June 30, 2026 and December 31, 2025, the total unrecognized cost relating to restricted share
awards was $
, respectively. As of June 30, 2026, the weighted-average period over
which the total compensation cost related to non-vested awards not yet recognized is expected to be
recognized is
2026 and 2025 was $
, respectively.
11. Interest expense and Finance costs
The amounts in the accompanying unaudited interim consolidated statements of income are analyzed as
follows:
For the six months ended June 30,
2026
2025
Interest expense, debt
$
$
Finance liabilities interest expense
Amortization of debt and finance liabilities issuance costs
Loan and other expenses
Interest expense and finance costs
$
$
During the six months ended June 30, 2026 and 2025, interest expense amounted to $
$
, respectively of which $
, respectively were capitalized and included in advances
for vessels under construction (Note 5).
12. Earnings per Share
All common shares issued (including restricted shares issued under the Company’s incentive plan) are
the Company’s common stock and have equal rights to vote and participate in dividends.
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-20
Basic EPS is computed by dividing income available to common stockholders by the weighted average
number of common shares outstanding during the period.
Shares issued during the period and shares repurchased during the period are weighted for the portion of
the period that they were outstanding. Restricted shares issued under the Company’s equity incentive
plan are included in the calculation of EPS when vested. Unvested restricted shares are not considered
participating securities. Shares issued upon the exercise of warrants are included in the computation of
basic EPS as of the date of exercise.
Incremental shares represent the number of shares assumed issued under the treasury stock method,
weighted for the periods the non-vested shares were outstanding. The dilutive effect of unexercised in-
the-money warrants is computed using the treasury stock method, which assumes that the proceeds
from the exercise of such warrants are used to purchase common shares at the average market price for
the period.
During the six months ended June 30, 2026 and 2025, there were
respectively, included in the denominator of the diluted earnings per share calculation. Securities that
could potentially dilute basic earnings per share in future periods but were excluded from the computation
of diluted earnings per share because their inclusion would have been anti-dilutive consisted of (i)
incremental shares from unexercised warrants that were out of the money during the reporting period
(Note 10(g)), (ii) incremental shares from unexercised warrants that, if included in the diluted earnings
per share calculation, would have had an anti-dilutive effect (Note 10(g)), and (iii) anti-dilutive non-vested
restricted share awards (Note 10(h)).
Net income attributable to common stockholders is adjusted for dividends on Series B Preferred Stock in
the calculation of basic and diluted earnings per share, and for gains on warrants recognized in net
income, when dilutive, in the calculation of diluted earnings per share.
For the six months ended June 30,
Basic Earnings per Share
2026
2025
Net income
$
$
Dividends on series B preferred shares
(2,884 )
(2,884 )
Net income attributable to common stockholders
$
$
Weighted average number of common shares, basic
Earnings per common share, basic
$
$
Diluted Earnings per Share
2026
2025
Net income
$
$
Dividends on series B preferred shares
(2,884 )
(2,884 )
Adjusted net income attributable to common stockholders
$
$
Weighted average number of common shares, basic
Restricted shares
Total incremental shares from dilutive instruments
Weighted average number of common shares, diluted
Earnings per common share, diluted
$
$
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-21
13. Financial Instruments and Fair Value Disclosures
Interest rate risk and concentration of credit risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist
primarily of cash and cash equivalents, time deposits and accounts receivable, trade arising from
operating leases. The ability and willingness of each of 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 of the capital markets, the
condition of 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 of 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 by performing
ongoing credit evaluations of 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, 2026 and 2025 charterers that individually accounted for
% or
more of the Company’s time charter revenues were as follows:
Charterer
2026
2025
Nippon Yusen Kaisha
Cargill
Swissmarine
*
Bunge
*
The Company is exposed to interest rate risk on its borrowings with variable interest rates. This exposure
is partly mitigated through fixed-rate indebtedness including the Company’s bond (Note 7), an interest
rate swap with DNB (Note 7) and finance liabilities that bear fixed rates (Note 8).
Fair value of assets and liabilities
The carrying values of financial assets reflected in the accompanying consolidated balance sheet
approximate their fair values due to the short-term nature and high liquidity of these financial instruments.
Cash and cash equivalents and restricted cash are classified as Level 1 instruments as they represent
liquid assets with short-term maturity. The fair value of long-term bank loans with variable interest rates
approximates the recorded values, as their interest rates adjust to market-observable rates. These
instruments are classified within Level 2 of the fair value hierarchy. As of June 30, 2026, the Company’s
lease liabilities had a carrying value of $
.
Fair value measurements disclosed
As of June 30, 2026, the Bond which bears a fixed interest rate and had a carrying value of $
(Note 7), had a fair value of $
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-22
Other Fair value measurements
December 31,
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
$
$
$
$
Investments in a related party
Total recurring fair value measurements
$
$
$
$
Liabilities
Recurring fair value measurements
Warrant liability
$
$
$
Interest rate swap, liability
Total recurring fair value measurements
$
$
$
June 30, 2026
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
Investments in related party
$
$
$
$
Total recurring fair value measurements
$
$
$
$
Liabilities
Recurring fair value measurements
Warrant liability
$
$
$
Interest rate swap, liability
Total recurring fair value measurements
$
$
$
14. Subsequent Events
a)
: On July 8, 2026, the Company
paid an advance for the construction of the vessels amounting to $
b)
On July 8, 2026, the Company paid $
equity participation in funding the construction of the vessels.
c)
On July 10, 2026, the Company received a dividend of $
Bergen on June 4, 2026 (Note 3)
d)
: On July 15, 2026, the Company paid a quarterly dividend on
its series B preferred stock, amounting to $
, to its stockholders of
record as of July 14, 2026.
e)
common stock of $
DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)
F-23
ended June 30, 2026. The cash dividend is payable on or around September 11, 2026, to all
shareholders of record as of August 26, 2026.
f)
On July 27, 2026, the Company, together with an unrelated third party, entered into a loan
agreement with DWM, pursuant to which the Company advanced $
requirements of DWM. The loan matures two years from the date of the agreement, and DWM is
obligated to repay the outstanding principal balance, together with accrued interest, fees, costs and
any other amounts payable under the facility, on or before the maturity date.
g)
On July 30, 2026, the Company received $
of its
Agreement it entered into with a related party, Sezali Inc. ("Sezali"), resulting in a gain of $
.