Diana Shipping quarterly profit jumps as higher charter rates lift revenue

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Diana Shipping Inc. reported a sharp increase in second quarter profit as stronger average charter rates lifted revenue and more than offset the effect of a smaller fleet following a vessel sale.

The Athens based dry bulk shipowner recorded net income of $20.8 million for the three months ended June 30, 2026, compared with $4.5 million in the same period last year.

Net income attributable to common shareholders rose to $19.3 million from $3.1 million, while basic earnings per share increased to $0.17 from $0.03. Diluted earnings per share reached $0.16, also up from $0.03 a year earlier.

The company also declared a quarterly cash dividend of $0.01 per common share.

Time charter revenue increased to $57.3 million during the second quarter, up 4.8% from $54.7 million in the corresponding period of 2025.

Diana attributed the increase primarily to higher average charter rates. The improvement was partly offset by a reduction in vessel ownership days after the company sold one vessel during the third quarter of 2025.

The figures illustrate how even relatively modest changes in daily charter earnings can have a significant effect across a dry bulk fleet. A higher rate earned over hundreds of operating days can accumulate quickly, much like a small increase in freight revenue becomes material when applied across an entire cargo programme.

Diana specialises in the ownership and bareboat chartering of dry bulk vessels. Its fleet is exposed to the movement of commodities including iron ore, coal, grains and other bulk cargoes across international trade routes.

The second quarter performance reflected stronger earnings from the company’s chartering operations without a corresponding increase in fleet size.

For the first six months of 2026, Diana reported net income of $49.9 million, compared with $7.5 million during the same period of 2025.

Net income attributable to common shareholders increased to $47 million from $4.7 million.

Basic earnings per share for the six month period rose to $0.42 from $0.04, while diluted earnings per share increased to $0.41 from $0.04.

Time charter revenue for the period reached $112 million, compared with $109.6 million in the first half of 2025. The 2.2% revenue increase was considerably smaller than the rise in net income, indicating that factors beyond headline revenue growth contributed to the improvement in bottom line performance.

The company did not provide additional details in the announcement on operating expenses, financing costs, vessel valuations or other items affecting the year on year earnings comparison.

Diana’s board declared a cash dividend of $0.01 per common share based on results for the quarter ended June 30.

The dividend is scheduled to be paid on September 11, 2026, to shareholders of record at the close of business on August 21.

Based on the 124,413,717 common shares issued and outstanding as of July 29, the declared distribution represents a potential cash payment of about $1.24 million, assuming the share count remains unchanged and all outstanding shares qualify for the payment.

The company stressed that future dividends will remain subject to the discretion of its board. Decisions will depend on earnings, financial condition, cash requirements, market prospects and other considerations.

Dividend policies in dry bulk shipping are closely watched because earnings can change rapidly as vessel supply, commodity demand, port congestion and geopolitical disruption alter charter rates.

A profitable quarter may provide capacity for shareholder distributions, but shipowners must also balance dividends against debt obligations, fleet renewal and the costs associated with vessel maintenance and regulatory compliance.

Diana had approximately 124.4 million common shares outstanding as of July 29, along with about 15.7 million outstanding warrants.

Warrants can potentially increase the future share count if they are exercised, depending on their terms and the company’s share price. Any increase in outstanding shares may affect earnings per share calculations and the total cost of future dividend payments.

The company’s latest results show a substantial improvement in profitability from the previous year, supported by stronger charter rates even as the sale of a vessel reduced available ownership days.