Greetings. Welcome to the Diana Shipping Inc. 2021 Fourth Quarter Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Ed Nebb, Investor Relations. Thank you. You may begin.

Thank you, Hillary. Thanks to all of you for joining us. Let me remind you that under the safe harbor notice, which you can see at the end of today's news release. Certain statements made during the call, which are not historical fact are forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act. For a description of the risks and uncertainties and other factors affecting these statements, please refer to the company's filings with the Securities and Exchange Commission. And now without further ado, it is my pleasure to turn the call over to Ms. Semiramis Paliou, Chief Executive Officer.

Thank you, Ed. Good morning, ladies and gentlemen, and welcome to Diana Shipping Inc.'s fourth quarter 2021 earnings call. My name is Semiramis Paliou, the company's CEO, and it is an honor to have the opportunity to present to you today. Joining me this morning on the call are Mr. Stacey Margaronis, President of Diana Shipping. Mr. Ioannis Zafirakis, CFO and Chief Strategy Officer; Mr. Eleftherios Papatrifon, Chief Operating Officer; and Ms. Maria Dede, the company's Chief Accounting Officer. Before I begin, I kindly ask everyone to review the forward-looking statements applicable to today's presentation, which can be found on Page 2 of this presentation. This has been a financially strong year and a fantastic fourth quarter. Market conditions remained robust during the last quarter and contributed to making 2021 the best year dry bulk market since 2008. Throughout last year, we took advantage of the favorable market conditions, and we were able to increase our profitability, further strengthen our balance sheet, reduce our cash flow breakeven points and lock in positive cash flows, which have allowed us to initiate what we believe to be a sustainable quarterly dividend based on the current market conditions. Now let's turn to Page 4, Slide 4. I will review with you the company's snapshot as of today. Further to the consummation of the OceanPal spinoff, which resulted in the disposal of 3 of our older vessels, undertaking delivery of our recent acquisition, the motor vessel Leonidas PC last week. We find ourselves owning and operating 34 vessels in the water with a carrying capacity of approximately 4.4 million deadweight tonnes, 4 vessels of which remain unmortgaged. We expect our fleet to grow by 1 vessel by the end of this quarter after we take delivery of our previously announced resale newbuild Capesize acquisition,…

Thank you, Semiramis, I'm very pleased to be discussing today, as always, with you, the Diana’s operational results for the fourth quarter and the year-end December 31, 2021. For the quarter ended December 31, 2021, we recorded a net income attributed to common stockholders of $39.7 million. That's $0.51 per basic share or $0.48 per diluted share. This includes, of course, a $15.3 million gain from the spin-off of OceanPal. But $0.18 per diluted share. Our time charter revenues increased from $42.7 million in the fourth quarter of 2020 to $68.8 million in the fourth quarter of 2021, which is an increase of about 61%; although if you remember, we have reduced the number of vessels in our fleet. Of course, that's a result of our chartering strategy and at the same time, the increase in the charter rates. We decreased our voyage expenses by $800,000 in the quarter compared to the $3 million for the same quarter in 2020. And we had a gain on bankers of $2.8 million compared to $200,000 of loss we had last year. Our vessel operating expenses for the fourth quarter of 2021 decreased by about 19% to $18.2 million compared to $22.4 million last year. Of course, that's due to the fact that we have less vessels. But at the same time, we managed to decrease the per vessel OpEx, which we're going to see that later on. Our general and administrative expenses increased to $8.1 million compared to $7 million for the same quarter last year, mainly due to increased costs on restricted stock awards and legal and audit fees that was partly offset by decreased payroll costs. Interest and finance costs increased in this quarter due to the increased interest resulting from increased average debt compared to the same quarter last…

Thank you, Ioannis. One can certainly not criticize the dry bulk market for not providing sufficient excitement over the last year or so to investors, shipping analysts, shipping bankers and all involved in this sector of shipping. Apart from the booming container sector, the dry bulk sector must certainly take second place as regard the recent, at least, volatility among various sectors of shipping. We would, therefore, like to start this last section of our presentation with 2 slides depicting the dry bulk indices versus the 12-month time charter rates of large bulkers. So in Slides 17 and 18, they help us reconfirm the much greater volatility affecting the spot market compared to the volatility we have witnessed over the last few quarters in the 12-month time charter rates for large bulkers. For example, the Capesize 12-month time charter rate moved from about $36,000 a day in the early part of last October to $24,000 a day in January of this year. In comparison, the spot Baltic Cape Index went from a high of 10,485 equivalent to about $87,000 per day 5TC average in October last year to a low of 702 in January of this year, the equivalent of $5,826 per day on the 5TC average. As Clarksons point out, Capesize spot earnings averaged a mere $8,000 per day during January and the first half of February this year. It has always been known that spot trading large bulk carriers was not for the fainthearted, but we feel it is interesting to see this extreme volatility expressed in concrete numbers. These oscillations and violent fluctuations at Diana's chartering strategy, which has been described several times in the past, seeks to smooth out over time. On the next Slide, 19, we look at the main demand driver for the bulk…

Thank you, Stacey. So before we open this call up to Question-and-Answer Session, I would like to sum up what I believe to be the most important point. The company has produced solid returns, has a strong balance sheet and continues to take advantage of the robust market while maintaining a low cash flow breakeven point. We remain committed to our disciplined and balanced strategy and its value is clearly demonstrated and appreciated even more so under the current volatile geopolitical environment. We are focused in finding creative ways to potentially grow and renew our fleet in a conservative manner. And last but not least, we are very pleased to be able to pay out a higher quarterly dividend, and we aim to continue paying out future dividends should market conditions allow us. Now I will turn it over to the operator to commence the Q&A session.

[Operator Instructions] Our first question is from Randy Giveans of Jefferies.

I guess first question around the dividend and capital allocation there, increasing it from $0.10 to $0.20 above our expectations there. So what went into making that decision? And how will you balance further dividend payments with share repurchases in the coming quarters?

I think the $0.20 decision can easily be seen based on our fixed income for 2022 and some of 2023. And the current environment, I think, the generation of free cash flow is such that everyone can see that the ability to pay $0.20 this quarter and even something higher over the next quarter is there easily. As regards to the purchasing of the tender offer, buying back shares or doing something else with the money, of course, that will depend on the price of our stock and whether there is a clear value or we are clearly undervalued. We still have that option to do a lot of things there. But I personally strongly believe that the period has come where the stock price will appreciate and be priced based on the yields that we are going to be providing, yields that I think everyone can see that it is sustainable for the quarters to come. So the -- to respond to your question about the tender offerings, I don't think that it's going to be an option because I don't think that the pricing of our stock is going to be short, but we are going to do it.

Yes, I think in the long run, that is certainly…

Knowing me for many years, I'm never very optimistic. So whatever I'm saying now, you have to take into account.

I guess just to clarify on the dividend, you mentioned that it could be even higher in the coming quarters. So is $0.20, was there something special about this quarter? Or is it fair to expect as long as the rates stay robust, that 20% dividend should be…

That $0.20 is not derived from something especially of this quarter. It's not.

Second question, just looking at the fleet strategy. Clearly, there's been a big uptick here in recent weeks on spot rates on the FFA curve. Are you seeing the same moves in the time charter market? And then with that, is the plan just to continue to extend 10 to 16 month charters as vessels become available.

I'm going to take that question at the beginning, and then Eleftherios may answer as well. But you understand that the more we go into better and better markets, something that is possible to happen, the more you will see us extending the charter period, something that we have done in the past. And if you noticed, we have already increased the hedging period of ours, nothing fantastic, but we are over a year -- or we are having our revenues for over a year. Looking at what is happening around the world today, I think, once again, our strategy demonstrates the value that we create for our shareholders. And if someone was to be asked, what he was going to -- he would prefer today's current environment to be either totally spot or totally fixed, I think this is no brainer that that they were going to say that we prefer the hedging strategy like Diana. Eleftherios?

No, yes. I mean, I think you've covered most of the points. The other thing is that we are -- despite the volatility that we have seen for the last couple of days, as you mentioned, Randy, the FFA curve is still pricing is pricing Panamaxes and Capes, let's say, for the remainder of the year in the mid- to high 20s range. And then for 2023 in the high teens to low 20s. So basically, the opportunity is there to replicate the pictures that we've done recently. And then for over a year, maybe 1.5 years, maybe even higher if 2023 starts moving a little bit higher. So I think we're going to stay the course and do what we have been doing over the course of the last quarter.

[Operator Instructions] Our next question is from Randy Giveans of Jefferies.

I guess if no one else is asking questions, I'll ask one more. Just around Russia, Ukraine. I think Stacey had some comments around it in terms of the coal trade. But if you could also give some commentary around grains and maybe other exports out of the region and maybe the replacement of those cargoes from other regions into Western Europe? Or just a little more context around what you're seeing so far? Obviously, it's early, but anything you can share would be helpful.

Well, to be honest, we have not heard of any canceled cargoes up to now. So theoretically, if you look at the numbers as of this afternoon, Greek time, there has been very little effect in ships loading grain from the area, both Russia and the Ukraine or coal. One of Diana's ships is loading now and finishing later today, a coal cargo. And we feel that she's going to leave without incident and on time after going to anchorage early tomorrow and then sailing. So we can't -- apart from the attack to some cargo ships that have been publicized recently or today rather than yesterday, both the Kerch Strait and the Sea of Azov. Even though the Sea of Azov is officially closed to commercial traffic has not been an area where ships have been delayed in loading or discharging. So the situation in Taman where the Leto is loading, which is at the mouth of the Sea of Azov is completely stable and operations are running in a normal manner without any issues or changes. So we can't answer your question, unfortunately, because we have no data apart from 3 attacks that have been reported, 2 on bulk carriers, a Turkey ship, a tanker, which is the Nomura Queen and the small other vessel bulker of 2,000 tonnes. The tanker is reportedly sinking. And the other ships were damaged, and there has been some loss of life. So these are the reports that we have received through the P&I Club and the war risk insurance about shipping in the area, and these are confirmed reports. So our master is using best endeavors and practice to be aware and avoid entering temporarily dangerous areas periodically announced on the approaches during naval -- navy drills, but we haven't been advised of any yet. So trade seems to be going on as usual, except for these 3 attacks that we hear, which are going to lead, of course, to restrictions in approaching some or most of these ports, but they have not yet been announced.

Randy, you understand that usually this type of disruptions, they work in the favor of the dry bulk market on the shipping in general. We have seen that in the past many times. Delaying changes of routes and so on and so forth.

There are no more questions at this time. I will now turn the call back to management for closing remarks.

So thank you all for joining us today, and we look forward to talking to you again in our next financial results call. Thank you very much.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.