20-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM

20-F

(Mark One) 

☐

 REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 

OR

☑

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the fiscal year ended

December 31, 2022

OR

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report:

Not applicable

For the transition period from ___________________________ to ___________________________ 

Commission file number

001-32458

DIANA SHIPPING INC.

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (

Exact name of Registrant as specified in its charter)

Diana Shipping Inc.

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

(Translation of Registrant’s name into English) 

Republic of the Marshall Islands

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Jurisdiction of incorporation or organization)

Pendelis 16

,

175 64 Palaio Faliro

,

Athens

,

Greece

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Address of principal executive offices)

Mr. Ioannis Zafirakis

Pendelis 16, 175 64 Palaio Faliro, Athens, Greece

Tel: + 30-

210

-

9470-100

, Fax: +

30-210-9470-101

E-mail:

izafirakis@dianashippinginc.com

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) 

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class

Trading

Symbol(s)

Name of each exchange on which

registered

Common Stock, $0.01 par value including the Preferred Stock Purchase Rights

DSX

New York Stock Exchange

8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, $0.01 par value

DSXPRB

New York Stock Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act. 

None

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. 

None

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by

the annual report. 

As of December 31, 2022, there were

102,653,619

 shares of the registrant’s common stock outstanding

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☐

 Yes

☑

No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13

or 15(d) of the Securities Exchange Act of 1934.

☐

 Yes

☑

No

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange

Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has

been subject to such filing requirements for the past 90 days. 

☑

Yes

☐

 No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to

Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was

required to submit such files).

☑

Yes

☐

 No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging

growth company. See definition of “large accelerated filer”, “accelerated filer” and "emerging growth company" in Rule 12b-2 of the

Exchange Act. 

Large accelerated filer

☐

Accelerated filer

☑

 Non-accelerated filer

☐

 Emerging growth company

☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the

registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards†

provided pursuant to Section 13(a) of the Exchange Act. □ 

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards

Board to its Accounting Standards Codification after April 5, 2012. 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the

effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the

registered public accounting firm that prepared or issued its audit report.

☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the

registrant included in the filing reflect the correction of an error to previously issued financial statements. 

☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-

based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-

1(b). 

☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this

filing: 

U.S. GAAP

☑

 International Financial Reporting Standards as issued Other 

☐

 by the International Accounting Standards Board □ 

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has

elected to follow.

☐

 Item 17

☐

 Item 18 

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐

 Yes

☑

No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the

Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

☐

 Yes

☐

 No

4

TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS

5

PART I

Item 1.

Identity of Directors, Senior Management and Advisers

8

Item 2.

Offer Statistics and Expected Timetable

8

Item 3.

Key Information

8

Item 4.

Information on the Company

44

Item 4A.

Unresolved Staff Comments

68

Item 5.

Operating and Financial Review and Prospects

68

Item 6.

Directors, Senior Management and Employees

85

Item 7.

Major Shareholders and Related Party Transactions

92

Item 8.

Financial Information

97

Item 9.

The Offer and Listing

98

Item 10.

Additional Information

99

Item 11.

Quantitative and Qualitative Disclosures about Market Risk

108

Item 12.

Description of Securities Other than Equity Securities

109

PART II

Item 13.

Defaults, Dividend Arrearages and Delinquencies

110

Item 14.

Material Modifications to the Rights of Security Holders and Use of

Proceeds

110

Item 15.

Controls and Procedures

110

Item 16A.

Audit Committee Financial Expert

111

Item 16B.

Code of Ethics

111

Item 16C.

Principal Accountant Fees and Services

111

Item 16D.

Exemptions from the Listing Standards for Audit Committees

112

Item 16E.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

112

Item 16F.

Change in Registrant’s Certifying Accountant

113

Item 16G.

Corporate Governance

113

Item 16H.

Mine Safety Disclosure

114

PART III

Item 17.

Financial Statements

115

Item 18.

Financial Statements

115

Item 19.

Exhibits

115

5

FORWARD-LOOKING STATEMENTS

Matters discussed in this annual report and the documents incorporated by reference may constitute

forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor

protections for forward-looking statements in order to encourage companies to provide prospective

information about their business. Forward-looking statements include, but are not limited to, statements

concerning plans, objectives, goals, strategies, future events or performance, underlying assumptions and

other statements, which are other than statements of historical facts.

Diana Shipping Inc., or the Company, desires to take advantage of the safe harbor provisions of the Private

Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this

safe harbor legislation. This document and any other written or oral statements made by the Company or

on its behalf may include forward-looking statements, which reflect its current views with respect to future

events and financial performance, and are not intended to give any assurance as to future results. When

used in this document, the words “believe”, “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”

“potential,” “will,” “may,” “should,” “expect,” “targets,” “likely,” “would,” “could,” “seeks,” “continue,”

“possible,” “might,” “pending,” and similar expressions, terms or phrases may identify forward-looking

statements.

Please note in this annual report, “we”, “us”, “our” and “the Company” all refer to Diana Shipping Inc. and

its subsidiaries, unless otherwise indicated.

The forward-looking statements in this document are based upon various assumptions, many of which are

based, in turn, upon further assumptions, including without limitation, management’s examination of

historical operating trends, data contained in its records and other data available from third

parties. Although the Company believes that these assumptions were reasonable when made, because

these assumptions are inherently subject to significant uncertainties and contingencies which are difficult

or impossible to predict and are beyond its control, the Company cannot assure you that it will achieve or

accomplish these expectations, beliefs or projections.

Such statements reflect the Company’s current views with respect to future events and are subject to

certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize,

or should underlying assumptions prove incorrect, actual results may vary materially from those described

herein as anticipated, believed, estimated, expected or intended. The Company is making investors aware

that such forward-looking statements, because they relate to future events, are by their very nature subject

to many important factors that could cause actual results to differ materially from those contemplated.

In addition to these important factors and matters discussed elsewhere herein, including under the heading

"Item 3. Key Information—D. Risk Factors," and in the documents incorporated by reference herein,

important factors that, in its view, could cause actual results to differ materially from those discussed in the

forward-looking statements include, but are not limited to: 

●

the strength of world economies;

●

fluctuations in currencies and interest rates, and the impact of the discontinuance of the London

Interbank Offered Rate for US Dollars, or LIBOR, after June 30, 2023 on any of our debt referencing

LIBOR in the interest rate;

●

general market conditions, including fluctuations in charter hire rates and vessel values;

●

changes in demand in the dry-bulk shipping industry;

6

●

changes in the supply of vessels, including when caused by new newbuilding vessel orders or

changes to or terminations of existing orders, and vessel scrapping levels;

●

changes in the Company's operating expenses, including bunker prices, crew costs, drydocking

and insurance costs;

●

the Company’s future operating or financial results;

●

availability of financing and refinancing and changes to the Company’s financial condition and

liquidity, including the Company’s ability to pay amounts that it owes and obtain additional financing

to fund capital expenditures, acquisitions and other general corporate activities and the Company’s

ability to obtain financing and comply with the restrictions and other covenants in the Company’s

financing arrangements;

●

changes in governmental rules and regulations or actions taken by regulatory authorities;

●

potential liability from pending or future litigation;

●

compliance with governmental, tax, environmental and safety regulation, any non-compliance with

the U.S. Foreign Corrupt Practices Act of 1977 (FCPA) or other applicable regulations relating to

bribery;

●

the failure of counter parties to fully perform their contracts with the Company;

●

the Company’s dependence on key personnel;

●

adequacy of insurance coverage;

●

the volatility of the price of the Company’s common shares;

●

the Company’s incorporation under the laws of the Marshall Islands and the different rights to relief

that may be available compared to other countries, including the United States;

●

general domestic and international political conditions or labor disruptions;

●

the impact of port or canal congestion or disruptions;

●

the length and severity of the continuing novel coronavirus (COVID-19) outbreak and its impact in

the dry-bulk shipping industry;

●

potential physical disruption of shipping routes due to accidents, climate-related reasons (acute and

chronic), political events, public health threats, international hostilities and instability, piracy or acts

by terrorists; and

●

other important factors described from time to time in the reports filed by the Company with the

Securities and Exchange Commission, or the SEC, including those factors discussed in “Item 3.

Key Information- D. Risk Factors” in this Annual Report on Form 20-F and the New York Stock

Exchange, or the NYSE.

This report may contain assumptions, expectations, projections, intentions and beliefs about future events.

These statements are intended as forward-looking statements. The Company may also from time to time

make forward- looking statements in other documents and reports that are filed with or submitted to the

Commission, in other information sent to the Company’s security holders, and in other written materials.

7

The Company also cautions that assumptions, expectations, projections, intentions and beliefs about future

events may and often do vary from actual results and the differences can be material. The Company

undertakes no obligation to publicly update or revise any forward-looking statement contained in this report,

whether as a result of new information, future events or otherwise, except as required by law.

8

PART I

Item 1. Identity of Directors, Senior Management and Advisers

Not Applicable.

Item 2. Offer Statistics and Expected Timetable

Not Applicable.

Item 3. Key Information

A. [Reserved] 

B. Capitalization and Indebtedness 

Not Applicable. 

C. Reasons for the Offer and Use of Proceeds 

Not Applicable.

D. Risk Factors

Summary of Risk Factors

The below bullets summarize the principal risk factors related to an investment in our Company. 

Industry Specific Risk Factors

●

Charter hire rates for dry bulk vessels are volatile and have fluctuated significantly in the

past years, which may adversely affect our earnings, revenues and profitability and our

ability to comply with our loan covenants.

●

The current state of the global financial markets and economic conditions may adversely

impact our ability to obtain additional financing on acceptable terms and otherwise

negatively impact our business.

●

Our operating results may be affected by seasonal fluctuations.

●

An increase in the price of fuel, or bunkers, may adversely affect our profits.

●

We are subject to complex laws and regulations, including environmental regulations

that can adversely affect the cost, manner or feasibility of doing business.

●

Increased inspection procedures, tighter import and export controls and new security

regulations could increase costs and disrupt our business.

9

●

Operational risks and damage to our vessels could adversely impact our performance. 

●

If our vessels call on ports located in countries or territories that are the subject of

sanctions or embargoes imposed by the U.S. government, the European Union, the

United Nations, or other governmental authorities, it could lead to monetary fines or

penalties and may adversely affect our reputation and the market for our securities.

●

We conduct business in China, where the legal system is not fully developed and has

inherent uncertainties that could limit the legal protections available to us.

●

Failure to comply with the U.S. Foreign Corrupt Practices Act could result in fines,

criminal penalties and an adverse effect on our business.

●

Changing laws and evolving reporting requirements could have an adverse effect on our

business.

Company Specific Risk Factors

●

The market values of our vessels could decline, which could limit the amount of funds

that we can borrow and could trigger breaches of certain financial covenants contained

in our loan facilities, which could adversely affect our operating results, and we may

incur a loss if we sell vessels following a decline in their market values.

●

We charter some of our vessels on short-term time charters in a volatile shipping

industry and a decline in charter hire rates could affect our results of operations and our

ability to pay dividends.

●

Rising crew costs could adversely affect our results of operations.

●

Our investment in Diana Wilhelmsen Management Limited may expose us to additional

risks.

●

A cyber-attack could materially disrupt our business.

●

Climate change and greenhouse gas restrictions may adversely impact our operations

and markets.

●

Increasing scrutiny and changing expectations from investors, lenders and other market

participants with respect to our ESG policies may impose additional costs on us or

expose us to additional risks.

●

Our earnings may be adversely affected if we are not able to take advantage of favorable

charter rates.

●

Investment in derivative instruments such as forward freight agreements could result in

losses.

●

We cannot assure you that we will be able to borrow amounts under loan facilities and

restrictive covenants in our loan facilities impose financial and other restrictions on us.

10

●

We are subject to certain risks with respect to our counterparties on contracts, and

failure of such counterparties to meet their obligations could cause us to suffer losses

or otherwise adversely affect our business.

●

In the highly competitive international shipping industry, we may not be able to compete

for charters with new entrants or established companies with greater resources, and as

a result, we may be unable to employ our vessels profitably.

●

We may be unable to attract and retain key management personnel and other employees

in the shipping industry, which may negatively impact the effectiveness of our

management and results of operations.

●

Technological innovation and quality and efficiency requirements from our customers

could reduce our charter hire income and the value of our vessels.

●

We may not have adequate insurance to compensate us if we lose our vessels or to

compensate third parties.

●

Our vessels may suffer damage and we may face unexpected drydocking costs, which

could adversely affect our cash flow and financial condition.

●

The aging of our fleet may result in increased operating costs in the future, which could

adversely affect our earnings.

●

We are exposed to U.S. dollar and foreign currency fluctuations and devaluations that

could harm our reported revenue and results of operations.

●

Volatility of London Interbank Offered Rate (“LIBOR”), the cessation of LIBOR and

replacement of our interest rate in our debt agreements could affect our profitability,

earnings and cash flow.

●

We depend upon a few significant customers for a large part of our revenues and the

loss of one or more of these customers could adversely affect our financial performance.

●

We are a holding company, and we depend on the ability of our subsidiaries to distribute

funds to us in order to satisfy our financial obligations.

●

Because we are organized under the laws of the Marshall Islands, it may be difficult to

serve us with legal process or enforce judgments against us, our directors or our

management.

●

If we expand our business further, we may need to improve our operating and financial

systems and will need to recruit suitable employees and crew for our vessels.

●

We may have to pay tax on U.S. source income, which would reduce our earnings.

●

United States tax authorities could treat us as a “passive foreign investment company,”

which could have adverse United States federal income tax consequences to United

States holders.

Risks Relating to Our Common Stock

11

●

We cannot assure you that our board of directors will continue to declare dividends on

shares of our common stock in the future.

●

The market prices and trading volume of our shares of common stock may experience

rapid and substantial price volatility, which could cause purchasers of our common

stock to incur substantial losses.

●

Since we are incorporated in the Marshall Islands, which does not have a well-developed

body of corporate law, you may have more difficulty protecting your interests than

shareholders of a U.S. corporation.

●

As a Marshall Islands corporation and with some of our subsidiaries being Marshall

Islands entities and also having subsidiaries in other offshore jurisdictions, our

operations may be subject to economic substance requirements, which could impact our

business.

●

Certain existing shareholders will be able to exert considerable control over matters on

which our shareholders are entitled to vote. 

●

Future sales of our common stock could cause the market price of our common stock to

decline.

●

Our Series B Preferred Shares are senior obligations of ours and rank prior to our

common shares with respect to dividends, distributions and payments upon liquidation,

which could have an adverse effect on the value of our common shares.

Risks Relating to Our Series B Preferred Stock

●

We may not have sufficient cash from our operations to enable us to pay dividends on

our Series B Preferred Shares following the payment of expenses and the establishment

of any reserves.

●

Our Series B Preferred Shares are subordinate to our indebtedness, and your interests

could be diluted by the issuance of additional preferred shares, including additional

Series B Preferred Shares, and by other transactions.

●

We may redeem the Series B Preferred Shares, and you may not be able to reinvest the

redemption price you receive in a similar security.

Some of the following risks relate principally to the industry in which we operate and our business in

general. Other risks relate principally to the securities market and ownership of our securities, including our

common stock and our Series B Preferred Shares. The occurrence of any of the events described in this

section could significantly and negatively affect our business, financial condition, operating results, cash

available for the payment of dividends on our shares and interest on our loan facilities and Bond, or the

trading price of our securities.

Industry Specific Risk Factors

Charter hire rates for dry bulk vessels are volatile and have fluctuated significantly in the past

years, which may adversely affect our earnings, revenues and profitability and our ability to comply

with our loan covenants.

12

Substantially all of our revenues are derived from a single market, the dry bulk segment, and therefore our

financial results are subject to cyclicality of the dry bulk shipping industry and any attendant volatility in

charter hire rates and profitability. The degree of charter hire rate volatility among different types of dry bulk

vessels has varied widely, and time charter and spot market rates for dry bulk vessel have in the recent

past declined below the operating costs of vessels. When we charter our vessels pursuant to spot or short-

term time charters, we are exposed to changes in spot market and short-term charter rates for dry bulk

carriers and such changes may affect our earnings and the value of our dry bulk carriers at any given time.

We cannot assure you that we will be able to successfully charter our vessels in the future or renew existing

charters at rates sufficient to allow us to meet our obligations or pay any dividends in the future. Fluctuations

in charter rates result from changes in the supply of and demand for vessel capacity and changes in the

supply of and demand for the major commodities carried by water internationally. Because the factors

affecting the supply of and demand for vessels are outside of our control and are unpredictable, the nature,

timing, direction and degree of changes in industry conditions are also unpredictable. A significant decrease

in charter rates would adversely affect our profitability, cash flows and may cause vessel values to decline,

and, as a result, we may have to record an impairment charge in our consolidated financial statements

which could adversely affect our financial results.

Dry bulk market conditions remained volatile in 2022, reflecting the impact of a broad economic slowdown,

easing of port congestion, and the war in Ukraine. With the exception of a temporary sharp increase in

rates in the immediate aftermath of Russia’s invasion of Ukraine, rates generally trended downwards during

the course of the year. In January and February 2023, we saw spot rates fall to extremely low levels,

following normal seasonal patterns as well as Chinese New Year, which has reduced industrial activity in

the region. Market conditions have improved since the lows of February and are expected to gradually

improve over the course of 2023 as China’s re-opening takes hold, however we cannot guarantee a trend

towards recovery.

Factors that influence demand for dry bulk vessel capacity include:

●

supply of and demand for energy resources, commodities, and semi-finished and finished

consumer and industrial products;

●

changes in the exploration or production of energy resources, commodities, and semi-finished

and finished consumer and industrial products;

●

the location of regional and global exploration, production and manufacturing facilities;

●

the location of consuming regions for energy resources, commodities, and semi-finished and

finished consumer and industrial products;

●

the globalization of production and manufacturing;

●

global and regional economic and political conditions, armed conflicts, including the ongoing

conflict between Russia and Ukraine and fluctuations in industrial and agricultural production;

●

disruptions and developments in international trade;

●

changes in seaborne and other transportation patterns, including the distance cargo is

transported by sea;

●

international sanctions, embargoes, import and export restrictions, nationalizations, piracy, and

terrorist attacks;

13

●

legal and regulatory changes including regulations adopted by supranational authorities and/or

industry bodies, such as safety and environmental regulations and requirements;

●

weather and acts of God and natural disasters;

●

environmental and other regulatory developments;

●

currency exchange rates, specifically versus USD; and

●

the continuing impact of the COVID-19 pandemic on the global economy.

Demand for our dry bulk oceangoing vessels is dependent upon economic growth in the world’s economies,

seasonal and regional changes in demand and changes to the capacity of the global dry bulk fleet and the

sources and supply for dry bulk cargo transported by sea. Continued adverse economic, political or social

conditions or other developments could further negatively impact charter rates and therefore have a

material adverse effect on our business results, results of operations and ability to pay dividends.

Factors that influence the supply of dry bulk vessel capacity include:

●

the number of newbuilding orders and deliveries, including slippage in deliveries;

●

the number of shipyards and ability of shipyards to deliver vessels;

●

port or canal congestion;

●

potential disruption, including supply chain disruptions, of shipping routes due to accidents or

political events;

●

the scrapping of older vessels;

●

speed of vessel operation;

●

vessel casualties;

●

technological advances in vessel design and capacity;

●

the degree of scrapping or recycling of older vessels, depending, among other things, on

scrapping or recycling rates and international scrapping or recycling regulations;

●

the price of steel and vessel equipment;

●

product imbalances (affecting level of trading activity) and developments in international trade;

●

the number of vessels that are out of service, namely those that are laid-up, drydocked, awaiting

repairs or otherwise not available for hire; 

●

availability of financing for new vessels and shipping activity;

●

changes in international regulations that may effectively cause reductions in the carrying

capacity of vessels or early obsolescence of tonnage; and

●

changes in environmental and other regulations that may limit the useful lives and trading

patterns of vessels.

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In addition to the prevailing and anticipated freight rates, factors that affect the rate of newbuilding,

scrapping and laying-up include newbuilding prices, secondhand vessel values in relation to scrap prices,

costs of bunkers and other operating costs, costs associated with classification society surveys, normal

maintenance and insurance coverage costs, the efficiency and age profile of the existing dry bulk fleet in

the market and government and industry regulation of maritime transportation practices, particularly

environmental protection laws and regulations. These factors influencing the supply of and demand for

shipping capacity are outside of our control, and we may not be able to correctly assess the nature, timing

and degree of changes in industry conditions.

We anticipate that the future demand for our dry bulk carriers will be dependent upon economic growth in

the world’s economies, including China and India, seasonal and regional changes in demand, changes in

the capacity of the global dry bulk carrier fleet and the sources and supply of dry bulk cargo transported by

sea. While there has been a general decrease in new dry bulk carrier ordering since 2014, the capacity of

the global dry bulk carrier fleet could increase and economic growth may not resume in areas that have

experienced a recession or continue in other areas. Adverse economic, political, social or other

developments could have a material adverse effect on our business and operating results.

The current state of the global financial markets and economic conditions may adversely impact

our ability to obtain additional financing on acceptable terms and otherwise negatively impact our

business.

Global financial markets can be volatile and contraction in available credit may occur as economic

conditions change. In recent years, operating businesses in the global economy have faced weakening

demand for goods and services, deteriorating international liquidity conditions, and declining markets which

lead to a general decline in the willingness of banks and other financial institutions to extend credit,

particularly in the shipping industry. As the shipping industry is highly dependent on the availability of credit

to finance and expand operations, it may be negatively affected by such changes and volatility.

Also, as a result of concerns about the stability of financial markets generally, and the solvency of

counterparties specifically, the cost of obtaining money from the credit markets may increase if lenders

increase interest rates, enact tighter lending standards, refuse to refinance existing debt at all or on terms

similar to current debt, and reduce, or cease to provide funding to borrowers. Due to these factors,

additional financing may not be available to the extent required, on acceptable terms or at all. If additional

financing is not available when needed, or is available only on unfavorable terms, we may be unable to

expand or meet our obligations as they come due or we may be unable to enhance our existing business,

complete additional vessel acquisitions or otherwise take advantage of business opportunities as they

arise.

Credit markets in the United States and Europe have in the past experienced significant contraction,

deleveraging and reduced liquidity, and there is a risk that the U.S. federal government and state

governments and European authorities continue to implement a broad variety of governmental action

and/or new regulation of the financial markets. Global financial markets and economic conditions have

been, and continue to be, disrupted and volatile. We face risks attendant to changes in economic

environments, changes in interest rates, and instability in the banking and securities markets around the

world, among other factors which may have a material adverse effect on our results of operations and

financial condition and may cause the price of our common shares to decline. As of December 31, 2022,

we had total outstanding indebtedness of $530.1 million under our various credit facilities and bond and a

further $142.4 million of finance liabilities. 

15

Global economic conditions may continue to negatively impact the drybulk shipping industry.

Major market disruptions and adverse changes in market conditions and regulatory climate in China, the

United States, the European Union and worldwide may adversely affect our business or impair our ability

to borrow amounts under credit facilities or any future financial arrangements. 

Chinese dry bulk imports have accounted for the majority of global dry bulk transportation growth annually

over the last decade. Accordingly, our financial condition and results of operations, as well as our future

prospects, would likely be hindered by an economic downturn in any of these countries or geographic

regions. In recent years China and India have been among the world’s fastest growing economies in terms

of gross domestic product, and any economic slowdown in the Asia Pacific region particularly in China or

India may adversely affect demand for seaborne transportation of our products and our results of

operations. Moreover, any deterioration in the economy of the United States or the European Union, may

further adversely affect economic growth in Asia.

Economic growth is expected to slow, including due to supply-chain disruption, the recent surge in inflation

and related actions by central banks and geopolitical conditions, with a significant risk of recession in many

parts of the worlds in the near term. In particular, an adverse change in economic conditions affecting

China, Japan, India or Southeast Asia generally could have a negative effect on the drybulk market. 

The dry bulk carrier charter market has improved but remains significantly below its high in 2008,

which may affect our revenues, earnings and profitability, and our ability to comply with our loan

covenants.

The abrupt and dramatic downturn in the dry bulk charter market until the beginning of 2021, from which

we derive substantially all of our revenues, severely affected the dry bulk shipping industry and our

business. The Baltic Dry Index, or the BDI, a daily average of charter rates for key dry bulk routes published

by the Baltic Exchange Limited, has long been viewed as the main benchmark to monitor the movements

of the dry bulk vessel charter market and the performance of the entire dry bulk shipping market. The BDI

declined 94% in 2008 from a peak of 11,793 in May 2008 to a low of 663 in December 2008 and has

remained volatile since then, reaching a record low of 290 in February 2016. In 2022, the BDI ranged from

a high of 3369 on May 23, 2022 to a low of 965 on August 31, 2022 to drop again to a low of 530 on

February 16, 2023. The BDI has since recovered from the February 2023 levels and closed at 1484 on

March 23, 2023. There can be no assurance that the dry bulk charter market will not decline further. The

decline and volatility in charter rates is due to various factors, including the lack of trade financing for

purchases of commodities carried by sea, which has resulted in a significant decline in cargo shipments,

and the excess supply of iron ore in China, which has resulted in falling iron ore prices and increased

stockpiles in Chinese ports. The decline and volatility in charter rates in the dry bulk market also affects the

value of our dry bulk vessels, which follows the trends of dry bulk charter rates, and earnings on our

charters, and similarly, affects our cash flows, liquidity and compliance with the covenants contained in our

loan agreements.

Any decline in the dry bulk carrier charter market may have additional adverse consequences for our

industry, including an absence of financing for vessels, no active secondhand market for the sale of

vessels, charterers seeking to renegotiate the rates for existing time charters, and widespread loan

covenant defaults in the dry bulk shipping industry. Accordingly, the value of our common shares could be

substantially reduced or eliminated.

Worldwide inflationary pressures could negatively impact our results of operations and cash flows.

It has been recently observed that worldwide economies have experienced inflationary pressures, with

price increases seen across many sectors globally. For example, the U.S. consumer price index, an

inflation gauge that measures costs across dozens of items, rose 6.5% in December 2022 compared to

16

the prior year, driven in large part by increases in energy costs. It remains to be seen whether inflationary

pressures will continue, and to what degree, as central banks begin to respond to price increases. In the

event that inflation becomes a significant factor in the global economy generally and in the shipping industry

more specifically, inflationary pressures would result in increased operating, voyage and administrative

costs. Furthermore, the effects of inflation on the supply and demand of the products we transport could

alter demand for our services. Interventions in the economy by central banks in response to inflationary

pressures may slow down economic activity, including by altering consumer purchasing habits and

reducing demand for the commodities and products we carry, and cause a reduction in trade. As a result,

the volumes of goods we deliver and/or charter rates for our vessels may be affected. Any of these factors

could have an adverse effect on our business, financial condition, cash flows and operating results.

Regulations relating to ballast water discharge may adversely affect our revenues and profitability.

The IMO has imposed updated guidelines for ballast water management systems specifying the maximum

amount of viable organisms allowed to be discharged from a vessel’s ballast water. Depending on the date

of the International Oil Pollution Prevention ('IOPP') renewal survey, existing vessels constructed before

September 8, 2017 must comply with the updated D-2 Discharge Performance Standard ('D-2 standard')

on or after September 8, 2019. For most vessels, compliance with the D-2 standard involves installing on-

board systems to treat ballast water and eliminate unwanted organisms. Ships constructed on or after

September 8, 2017 are to comply with the D-2 standard upon delivery. We currently have one vessel that

does not comply with the updated guideline, which is scheduled to undergo such works in 2023.

Furthermore, United States regulations are currently changing. Although the 2013 Vessel General Permit

(“VGP”) program and U.S. National Invasive Species Act (“NISA”) are currently in effect to regulate ballast

discharge, exchange and installation, the Vessel Incidental Discharge Act (“VIDA”), which was signed into

law on December 4, 2018, requires that the EPA develop national standards of performance for

approximately 30 discharges, similar to those found in the VGP within two years. On October 26, 2020, the

EPA published a Notice of Proposed Rulemaking for Vessel Incidental Discharge National Standards of

Performance under VIDA. Within two years after the EPA publishes its final Vessel Incidental Discharge

National Standards of Performance, the U.S. Coast Guard must develop corresponding implementation,

compliance, and enforcement regulations regarding ballast water. The new regulations could require the

installation of new equipment, which may cause us to incur substantial costs.

Risks associated with operating ocean-going vessels could affect our business and reputation,

which could have a material adverse effect on our results of operations and financial condition.

The operation of ocean-going vessels carries inherent risks. These risks include the possibility of:

●

marine disaster;

●

acts of God;

●

terrorism;

●

environmental accidents;

●

cargo and property losses or damage;

●

business interruptions caused by mechanical failures, human error, war, political action in

various countries, labor strikes or adverse weather conditions; and

●

piracy or robbery.

17

In addition, international shipping is subject to various security and customs inspection and related

procedures in countries of origin and destination and trans-shipment points. Inspection procedures can

result in the seizure of the cargo and/or our vessels, delays in the loading, offloading or delivery and the

levying of customs duties, fines or other penalties against us. It is possible that changes to inspection

procedures could impose additional financial and legal obligations on us. Furthermore, changes to

inspection procedures could also impose additional costs and obligations on our customers and may, in

certain cases, render the shipment of certain types of cargo uneconomical or impractical. Any such

changes or developments may have a material adverse effect on our business, results of operations, cash

flows, financial condition and available cash.

Our operations outside the United States expose us to global risks, such as political instability,

terrorist or other attacks, war, international hostilities and global public health concerns, which

may affect the seaborne transportation industry and adversely affect our business.

We are an international shipping company and primarily conduct most of our operations outside the United

States, and our business, results of operations, cash flows, financial condition and ability to pay dividends,

if any, in the future may be adversely affected by changing economic, political and government conditions

in the countries and regions where our vessels are employed or registered. Moreover, we operate in a

sector of the economy that is likely to be adversely impacted by the effects of political conflicts. 

Currently, the world economy faces a number of challenges, including trade tensions between the

United States and China, stabilizing growth in China, continuing threat of terrorist attacks around

the world, continuing instability and conflicts and other ongoing occurrences in the Middle East,

Ukraine, and in other geographic areas and countries, as well as the public health concerns

stemming from the ongoing COVID-19 outbreak. 

In the past, political instability has also resulted in attacks on vessels, mining of waterways and other efforts

to disrupt international shipping, particularly in the Arabian Gulf region and most recently in the Black Sea

in connection with the recent conflicts between Russia and Ukraine. Acts of terrorism and piracy have also

affected vessels trading in regions such as the South China Sea and the Gulf of Aden off the coast of

Somalia. Any of these occurrences could have a material adverse impact on our future performance, results

of operation, cash flows and financial position.

Beginning in February of 2022, President Biden and several European leaders announced various

economic sanctions against Russia in connection with the aforementioned conflicts in the Ukraine region,

which may adversely impact our business.

The United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) administers

and enforces multiple authorities under which sanctions have been imposed on Russia, including: the

Russian Harmful Foreign Activities sanctions program, established by the Russia-related national

emergency declared in Executive Order (E.O.) 14024 and subsequently expanded and addressed through

certain additional authorities, and the Ukraine-Russia-related sanctions program, established with the

Ukraine-related national emergency declared in E.O. 13660 and subsequently expanded and addressed

through certain additional authorities. The United States has also issued several Executive Orders that

prohibit certain transactions related to Russia, including the importation of certain energy products of

Russian Federation origin (including crude oil, petroleum, petroleum fuels, oils, liquefied natural gas and

coal), and all new investments in Russian by U.S. persons, among other prohibitions and export controls.

Furthermore, the United States has also prohibited a variety of specified services related to the maritime

transport of Russian Federation origin crude oil and petroleum products, including trading/commodities

brokering, financing, shipping, insurance (including reinsurance and protection and indemnity), flagging,

and customs brokering. These prohibitions took effect on December 5, 2022 with respect to the maritime

transport of crude oil and February 5, 2023 with respect to the maritime transport of other petroleum

products. An exception exists to permit such services when the price of the seaborne Russian oil does not

18

exceed the relevant price cap; but implementation of this price exception relies on a recordkeeping and

attestation process that allows each party in the supply chain of seaborne Russian oil to demonstrate or

confirm that oil has been purchased at or below the price cap. Violations of the price cap policy or the risk

that information, documentation, or attestations provided by parties in the supply chain are later determined

to be false may pose additional risks adversely affecting our business. The ongoing conflict could result in

the imposition of further economic sanctions or new categories of export restrictions against persons in or

connected to Russia. While in general much uncertainty remains regarding the global impact of the conflict

in Ukraine, it is possible that such tensions could adversely affect the Company’s business, financial

condition, results of operation and cash flows. For instance, on February 24, 2023 OFAC issued a new

determination pursuant to Section 1(a)(i) of Executive Order 14024, which enables the imposition of

sanctions on individuals and entities who operate or have operated in the metals and mining sector of the

Russian economy. Increased restrictions on the metals and mining sector may pose additional risks

adversely affecting our business. 

Our business could also be adversely impacted by trade tariffs, trade embargoes or other economic

sanctions that limit trading activities by the United States or other countries against countries in the Middle

East, Asia or elsewhere as a result of terrorist attacks, hostilities or diplomatic or political pressures. 

In addition, public health threats, such as COVID-19, influenza and other highly communicable diseases

or viruses, outbreaks of which have from time to time occurred in various parts of the world in which we

operate, including China, Japan and South Korea, which may even become pandemics, such as the

COVID-19 virus, could lead to a significant decrease of demand for the transportation of dry bulk cargoes.

Such events may also adversely impact our operations, including timely rotation of our crews, the timing of

completion of any outstanding or future newbuilding projects or repair works in drydock as well as the

operations of our customers. Delayed rotation of crew may adversely affect the mental and physical health

of our crew and the safe operation of our vessels as a consequence.

Outbreaks of epidemic and pandemic diseases, including COVID-19, and governmental responses

thereto could adversely affect our business.

Since the beginning of 2020, the COVID-19 pandemic has negatively affected economic conditions, supply

chains, labor markets, demand for certain shipped goods both regionally and globally, and has also

negatively impacted and may continue to impact our operations and the operations of our customers and

suppliers. Over the course of the pandemic, measures taken to mitigate the spread of the COVID-19 virus

have included travel bans, quarantines, social distancing, limitations on public gatherings, impositions on

supply chain logistics, lockdowns and other emergency public health measures, resulting in a significant

reduction in overall global economic activity and extreme volatility in the global financial markets. Relatively

weak global economic conditions during periods of volatility have and may continue to have a number of

adverse consequences for the dry bulk shipping sectors. While many of the measures taken were relaxed

starting in 2021, we cannot predict whether and to what degree emergency public health and other

measures will be reinstituted in the event of any resurgence in the COVID-19 virus or any variants thereof. 

This year, we have experienced increases in crew travel and medical costs due to COVID-19. If a

resurgence of COVID-19, including due to new variants, results in travel restrictions, supply chain

disruptions, and other impediments to the orderly conduct of seaborne trade, such as those caused by

China’s “zero-covid” policy, there may be an additional material adverse effect on our results of operations,

cash flows and financial condition. Further, prolongment of the COVID-19 pandemic could also impact

credit markets and financial institutions and result in increased interest rate spreads and other costs of,

and difficulty in obtaining, bank financing and our ability to finance the purchase price of vessel acquisitions,

which could limit our ability to grow our business in line with our strategy.

Our operating results may be affected by seasonal fluctuations.

19

We operate our vessels in markets that have historically exhibited seasonal variations in demand and, as

a result, in charter hire rates. This seasonality may result in quarter-to-quarter volatility in our operating

results. The dry bulk carrier market is typically stronger in the fall and winter months in anticipation of

increased consumption of coal and other raw materials in the northern hemisphere during the winter

months. In addition, unpredictable weather patterns in these months tend to disrupt vessel scheduling and

supplies of certain commodities. As a result, our revenues may be weaker during the fiscal quarters ending

June 30 and September 30, and, conversely, our revenues may be stronger in fiscal quarters ending

December 31 and March 31. While this seasonality does not directly affect our operating results, it could

materially affect our operating results to the extent our vessels are employed in the spot market in the

future.

An increase in the price of fuel, or bunkers, may adversely affect our profits.

While we generally will not bear the cost of fuel or bunkers for vessels operating on time charters, fuel is a

significant factor in negotiating charter rates. As a result, an increase in the price of fuel beyond our

expectations may adversely affect our profitability at the time of charter negotiation. Fuel is also a

significant, if not the largest, expense in shipping when vessels are under voyage charter. The price and

supply of fuel is unpredictable and fluctuates based on events outside our control, including geopolitical

developments, supply and demand for oil and gas, actions by the Organization of Petroleum Exporting

Countries (the "OPEC"), and other oil and gas producers, war and unrest in oil producing countries and

regions, regional production patterns and environmental concerns. Any future increase in the cost of fuel

may reduce the profitability and competitiveness of our business.

We are subject to complex laws and regulations, including environmental regulations that can

adversely affect the cost, manner or feasibility of doing business.

Our business and the operations of our vessels are materially affected by environmental regulation in the

form of international conventions, national, state and local laws and regulations in force in the jurisdictions

in which our vessels operate, as well as in the country or countries of their registration, including those

governing the management and disposal of hazardous substances and wastes, the cleanup of oil spills

and other contamination, air emissions (including greenhouse gases), water discharges and ballast water

management. These regulations include, but are not limited to, European Union regulations, the U.S. Oil

Pollution Act of 1990, requirements of the U.S. Coast Guard, or USCG and the U.S. Environmental

Protection Agency, the U.S. Clean Air Act of 1970 (including its amendments of 1977 and 1990) , the U.S.

Clean Water Act, and the U.S. Maritime Transportation Security Act of 2002, and regulations of the IMO,

including the International Convention on Civil Liability for Oil Pollution Damage of 1969, the International

Convention for the Prevention of Pollution from Ships of 1973, as modified by the Protocol of 1978,

collectively referred to as MARPOL 73/78 or MARPOL, including designations of Emission Control Areas,

thereunder, SOLAS, the International Convention on Load Lines of 1966, the International Convention of

Civil Liability for Bunker Oil Pollution Damage, and the ISM Code. Because such conventions, laws, and

regulations are often revised, we cannot predict the ultimate cost of complying with such requirements or

the impact thereof on the re-sale price or useful life of any vessel that we own or will acquire. Additional

conventions, laws and regulations may be adopted that could limit our ability to do business or increase

the cost of our doing business and which may materially adversely affect our operations. Government

regulation of vessels, particularly in the areas of safety and environmental requirements, continue to

change, requiring us to incur significant capital expenditures on our vessels to keep them in compliance,

or even to scrap or sell certain vessels altogether. In addition, we may incur significant costs in meeting

new maintenance and inspection requirements, in developing contingency arrangements for potential

environmental violations and in obtaining insurance coverage.

In addition, we are required by various governmental and quasi-governmental agencies to obtain certain

permits, licenses, certificates, approvals and financial assurances with respect to our operations. Our

failure to maintain necessary permits, licenses, certificates, approvals or financial assurances could require

20

us to incur substantial costs or temporarily suspend operation of one or more of the vessels in our fleet or

lead to the invalidation or reduction of our insurance coverage.

Environmental requirements can also affect the resale value or useful lives of our vessels, require a

reduction in cargo capacity, ship modifications or operational changes or restrictions, lead to decreased

availability of insurance coverage for environmental matters or result in the denial of access to certain

jurisdictional waters or ports, or detention in certain ports. Under local, national and foreign laws, as well

as international treaties and conventions, we could incur material liabilities, including for cleanup

obligations and natural resource damages, in the event that there is a release of petroleum or hazardous

substances from our vessels or otherwise in connection with our operations. We could also become subject

to personal injury or property damage claims relating to the release of hazardous substances associated

with our existing or historic operations. Violations of, or liabilities under, environmental requirements can

result in substantial penalties, fines and other sanctions, including in certain instances, seizure or detention

of our vessels.

Increased inspection procedures, tighter import and export controls and new security regulations

could increase costs and disrupt our business.

International shipping is subject to various security and customs inspection and related procedures in

countries of origin, destination and trans-shipment points. Under the U.S. Maritime Transportation Security

Act of 2002 (“MTSA”), the U.S. Coast Guard issued regulations requiring the implementation of certain

security requirements aboard vessels operating in waters subject to the jurisdiction of the United States

and at certain ports and facilities. These security procedures may result in cargo seizure, delays in the

loading, offloading, trans-shipment or delivery and the levying of customs duties, fines or other penalties

against us. It is possible that changes to inspection procedures could impose additional financial and legal

obligations on us. Changes to inspection procedures could also impose additional costs and obligations on

our customers and may, in certain cases, render the shipment of certain types of cargo uneconomical or

impractical. Any such changes or developments may have a material adverse effect on our business,

customer relations, financial condition and earnings. 

Operational risks and damage to our vessels could adversely impact our performance. 

The operation of an ocean-going vessel carries inherent risks. Our vessels and their cargoes are at risk of

being damaged or lost because of events such as marine disasters, bad weather and other acts of God,

business interruptions caused by mechanical failures, grounding, fire, explosions and collisions, human

error, war, terrorism, piracy, labor strikes, boycotts and other circumstances or events. Changing economic,

regulatory and political conditions in some countries, including political and military conflicts, have from

time to time resulted in attacks on vessels, mining of waterways, piracy, terrorism, labor strikes and

boycotts. Damage to the environment could also result from our operations, particularly through spillage of

fuel, lubricants or other chemicals and substances used in operations, or extensive uncontrolled fires.

These hazards may result in death or injury to persons, loss of revenues or property, the payment of

ransoms, environmental damage, higher insurance rates, damage to our customer relationships and

market disruptions, delay or rerouting, any of which may subject us to litigation. As a result, we could be

exposed to substantial liabilities not recoverable under our insurances. Further, the involvement of our

vessels in a serious accident could harm our reputation as a safe and reliable vessel operator and lead to

a loss of business. Epidemics and other public health incidents may also lead to crew member illness,

which can disrupt the operations of our vessels, or to public health measures, which may prevent our

vessels from calling on ports or discharging cargo in the affected areas or in other locations after having

visited the affected areas. 

If our vessels suffer damage, they may need to be repaired at a drydocking facility. The costs of drydock

repairs are unpredictable and may be substantial. We may have to pay drydocking costs that our insurance

does not cover at all or in full. The loss of revenues while these vessels are being repaired and repositioned,

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as well as the actual cost of these repairs, may adversely affect our business and financial condition. In

addition, space at drydocking facilities is sometimes limited and not all drydocking facilities are conveniently

located. We may be unable to find space at a suitable drydocking facility or our vessels may be forced to

travel to a drydocking facility that is not conveniently located relative to our vessels' positions. The loss of

earnings while these vessels are forced to wait for space or to travel to more distant drydocking facilities

may adversely affect our business and financial condition.

The operation of dry bulk vessels has certain unique operational risks. With a dry bulk vessel, the cargo

itself and its interaction with the ship can be a risk factor. By their nature, dry bulk cargoes are often heavy,

dense and easily shifted, and react badly to water exposure. In addition, dry bulk vessels are often

subjected to battering treatment during unloading operations with grabs, jackhammers (to pry encrusted

cargoes out of the hold), and small bulldozers. This treatment may cause damage to the dry bulk vessel.

Dry bulk vessels damaged due to treatment during unloading procedures may be more susceptible to a

breach at sea. Hull breaches in dry bulk vessels may lead to the flooding of their holds. If flooding occurs

in the forward holds, the bulk cargo may become so waterlogged that the vessel's bulkheads may buckle

under the resulting pressure leading to the loss of the dry bulk vessel. These risks may also impact the risk

of loss of life or harm to our crew.

If we are unable to adequately maintain or safeguard our vessels, we may be unable to prevent these

events. Any of these circumstances or events could negatively impact our business, financial condition or

results of operations. In addition, the loss of any of our vessels could harm our crew and our reputation as

a safe and reliable vessel owner and operator.

If our vessels call on ports located in countries or territories that are the subject of sanctions or

embargoes imposed by the U.S. government, the European Union, the United Nations, or other

governmental authorities, it could lead to monetary fines or penalties and may adversely affect our

reputation and the market for our securities.

We have not engaged in shipping activities in countries or territories or with government-controlled entities

in 2022 in violation of any applicable sanctions or embargoes imposed by the U.S. government, the EU,

the United Nations or other applicable governmental authorities. Our contracts with our charterers may

prohibit them from causing our vessels to call on ports located in sanctioned countries or territories or

carrying cargo for entities that are the subject of sanctions. Although our charterers may, in certain causes,

control the operation of our vessels, we have monitoring processes in place reasonably designed to ensure

our compliance with applicable economic sanctions and embargo laws. Nevertheless, it remains possible

that our charterers may cause our vessels to trade in violation of sanctions provisions without our consent.

If such activities result in a violation of applicable sanctions or embargo laws, we could be subject to

monetary fines, penalties, or other sanctions, and our reputation and the market for our common shares

could be adversely affected.

The applicable sanctions and embargo laws and regulations of these difference jurisdictions vary in their

application and do not all apply to the same covered persons or proscribe the same activities. In addition,

the sanctions and embargo laws and regulations of each jurisdiction may be amended to increase or reduce

the restrictions they impose over time, and the lists of persons and entities designated under these laws

and regulations are amended frequently. Moreover, most sanctions regimes provide that entities owned or

controlled by the persons or entities designated in such lists are also subject to sanctions. The U.S. and

EU have enacted new sanctions programs in recent years. Additional countries or territories, as well as

additional persons or entities within or affiliated with those countries or territories, have, and in the future

will, become the target of sanctions. These require us to be diligent in ensuring our compliance with

sanctions laws. Further, the U.S. has increased its focus on sanctions enforcement with respect to the

shipping sector. Current or future counterparties of ours may be affiliated with persons or entities that are

or may be in the future the subject of sanctions or embargoes imposed by the United States, EU, and/or

other international bodies. If we determine that such sanctions require us to terminate existing or future

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contracts to which we, or our subsidiaries, are party or if we are found to be in violation of such applicable

sanctions, our results of operations may be adversely affected, or we may suffer reputational harm.

As a result of Russia’s actions in Ukraine, the U.S., EU and United Kingdom, together with numerous other

countries and self-sanctioning, have imposed significant sanctions on persons and entities associated with

Russia and Belarus, as well as comprehensive sanctions on certain areas within the Donbas region of

Ukraine, and such sanctions apply to entities owned or controlled by such designated persons or entities.

These sanctions adversely affect our ability to operate in the region and also restrict parties whose cargo

we may carry. 

Although we believe that we have been in compliance with all applicable sanctions and embargo laws and

regulations in 2022 and up to the date of this annual report, and intend to maintain such compliance, there

can be no assurance that we or our charterers will be in compliance in the future, particularly as the scope

of certain laws may be unclear and may be subject to changing interpretations. Any such violation could

result in fines, penalties or other sanctions that could severely impact our ability to access U.S. capital

markets and conduct our business and could result in our reputation and the markets for our securities to

be adversely affected and/or in some investors deciding, or being required, to divest their interest, or not

to invest, in us. In addition, certain institutional investors may have investment policies or restrictions that

prevent them from holding securities of companies that have contracts with countries or territories identified

by the U.S. government as state sponsors of terrorism. The determination by these investors not to invest

in, or to divest from, our shares may adversely affect the price at which our shares trade. Moreover, our

charterers may violate applicable sanctions and embargo laws and regulations as a result of actions that

do not involve us or our vessels, and those violations could in turn negatively affect our reputation. In

addition, our reputation and the market for our securities may be adversely affected if we engage in certain

other activities, such as entering into charters with individuals or entities that are not controlled by the

governments of countries or territories that are the subject of certain U.S. sanctions or embargo laws, or

engaging in operations associated with those countries or territories pursuant to contracts with third parties

that are unrelated to those countries or territories or entities controlled by their governments. Investor

perception of the value of our common stock may be adversely affected by the consequences of war, the

effects of terrorism, civil unrest and governmental actions in countries or territories that we operate in.

The smuggling of drugs or other contraband onto our vessels may lead to governmental claims

against us.

We expect that our vessels will call in ports in areas where smugglers attempt to hide drugs and other

contraband on vessels, with or without the knowledge of crew members. To the extent our vessels are

found with contraband, whether inside or attached to the hull of our vessel and whether with or without the

knowledge of any of our crew, we may face governmental or other regulatory claims which could have an

adverse effect on our business, results of operations, cash flows and financial condition.

Maritime claimants could arrest or attach one or more of our vessels, which could interrupt our

business or have a negative effect on our cash flows.

Crew members, suppliers of goods and services to a vessel, shippers of cargo, lenders, and other parties

may be entitled to a maritime lien against a vessel for unsatisfied debts, claims or damages. In many

jurisdictions, a maritime lien holder may enforce its lien by “arresting” or “attaching” a vessel through judicial

or foreclosure proceedings. The arrest or attachment of one or more of our vessels could interrupt the cash

flow of the charterer and/or require us to pay a significant amount of money to have the arrest or attachment

lifted, which would have an adverse effect on our cash flows.

In addition, in some jurisdictions, such as South Africa, under the “sister-ship” theory of liability, a claimant

may arrest both the vessel that is subject to the claimant’s maritime lien and any “associated” vessel, which

is any vessel owned or controlled by the same owner. Claimants could try to assert “sister-ship” liability

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against one vessel in our fleet for claims relating to another of our ships. Under some of our present

charters, if the vessel is arrested or detained as a result of a claim against us, we may be in default of our

charter and the charterer may suspend the payment of hire under the charter and charge us with any

additional expenses incurred during that period, which may negatively impact our revenues and cash flows.

We conduct business in China, where the legal system is not fully developed and has inherent

uncertainties that could limit the legal protections available to us.

Some of our vessels may be chartered to Chinese customers and from time to time on our charterers'

instructions, our vessels may call on Chinese ports. Such charters and voyages may be subject to

regulations in China that may require us to incur new or additional compliance or other administrative costs

and may require that we pay to the Chinese government new taxes or other fees. Applicable laws and

regulations in China may not be well publicized and may not be known to us or to our charterers in advance

of us or our charterers becoming subject to them, and the implementation of such laws and regulations

may be inconsistent. Changes in Chinese laws and regulations, including with regards to tax matters, or

changes in their implementation by local authorities could affect our vessels if chartered to Chinese

customers as well as our vessels calling to Chinese ports and could have a material adverse impact on our

business, financial condition and results of operations.

Governments could requisition our vessels during a period of war or emergency, resulting in a loss

of earnings.

A government could requisition one or more of our vessels for title or for hire. Requisition for title occurs

when a government takes control of a vessel and becomes her owner, while requisition for hire occurs

when a government takes control of a vessel and effectively becomes her charterer at dictated charter

rates. Generally, requisitions occur during periods of war or emergency, although governments may elect

to requisition vessels in other circumstances. Although we would be entitled to compensation in the event

of a requisition of one or more of our vessels, the amount and timing of payment would be uncertain.

Government requisition of one or more of our vessels may negatively impact our revenues and reduce the

amount of cash we may have available for distribution as dividends to our shareholders, if any such

dividends are declared.

Failure to comply with the U.S. Foreign Corrupt Practices Act could result in fines, criminal

penalties and an adverse effect on our business.

We may operate in a number of countries throughout the world, including countries suspected to have a

risk of corruption. We are committed to doing business in accordance with applicable anti-corruption laws

and have adopted measures designed to ensure compliance with the U.S. Foreign Corrupt Practices Act

of 1977, as amended (the “FCPA”). We are subject, however, to the risk that we, our affiliated entities or

our or their respective officers, directors, employees and agents may take actions determined to be in

violation of such anti-corruption laws, including the FCPA. Any such violation could result in substantial

fines, sanctions, civil and/or criminal penalties, curtailment of operations in certain jurisdictions, and might

adversely affect our business, earnings or financial condition. In addition, actual or alleged violations could

damage our reputation and ability to do business. Furthermore, detecting, investigating, and resolving

actual or alleged violations is expensive and can consume significant time and attention of our senior

management.

Changing laws and evolving reporting requirements could have an adverse effect on our business.

Changing laws, regulations and standards relating to reporting requirements, including the European Union

General Data Protection Regulation, or GDPR, may create additional compliance requirements for us.

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GDPR broadens the scope of personal privacy laws to protect the rights of European Union citizens and

requires organizations to report on data breaches within 72 hours and be bound by more stringent rules

for obtaining the consent of individuals on how their data can be used. GDPR has become enforceable on

May 25, 2018 and non-compliance may expose entities to significant fines or other regulatory claims which

could have an adverse effect on our business, financial condition, and operations.

Company Specific Risk Factors

The market values of our vessels could decline, which could limit the amount of funds that we can

borrow and could trigger breaches of certain financial covenants contained in our loan facilities,

which could adversely affect our operating results, and we may incur a loss if we sell vessels

following a decline in their market values.

While the market values of vessels and the freight charter market have a very close relationship as the

charter market moves from trough to peak, the time lag between the effect of charter rates on market values

of ships can vary.

The market values of our vessels have generally experienced high volatility, and you should expect the

market values of our vessels to fluctuate depending on a number of factors including:

●

the prevailing level of charter hire rates;

●

general economic and market conditions affecting the shipping industry;

●

competition from other shipping companies and other modes of transportation;

●

the types, sizes and ages of vessels;

●

the supply of and demand for vessels;

●

applicable governmental or other regulations;

●

technological advances; 

●

the need to upgrade vessels as a result of charterer requirements, technological advances in vessel

design or equipment or otherwise; and

●

the cost of newbuildings.

If the market values of our vessels decline, we may not be in compliance with certain covenants contained

in our loan facilities and we may not be able to refinance our debt or obtain additional financing or incur

debt on terms that are acceptable to us or at all. As of December 31, 2022, we were in compliance with all

of the covenants in our loan facilities. If we are not able to comply with the covenants in our loan facilities

or are unable to obtain waivers or amendments or otherwise remedy the relevant breach, our lenders could

accelerate our debt and foreclose on our vessels. 

Furthermore, if we sell any of our owned vessels at a time when prices are depressed, our business, results

of operations, cash flow and financial condition could be adversely affected. Moreover, if we sell a vessel

at a time when vessel prices have fallen, the sale may be at less than the vessel's carrying amount in our

financial statements, resulting in a loss and a reduction in earnings. In addition, if vessel values decline,

we may have to record an impairment adjustment in our financial statements which could adversely affect

our financial results. 

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We charter some of our vessels on short-term time charters in a volatile shipping industry and a

decline in charter hire rates could affect our results of operations and our ability to pay dividends.

Although significant exposure to short-term time charters is not unusual in the dry bulk shipping industry,

the short-term time charter market is highly competitive and spot market charter hire rates (which affect

time charter rates) may fluctuate significantly based upon available charters and the supply of, and demand

for, seaborne shipping capacity. While the short-term time charter market may enable us to benefit in

periods of increasing charter hire rates, we must consistently renew our charters and this dependence

makes us vulnerable to declining charter rates. As a result of the volatility in the dry bulk carrier charter

market, we may not be able to employ our vessels upon the termination of their existing charters at their

current charter hire rates or at all. The dry bulk carrier charter market is volatile, and in the recent past,

short-term time charter and spot market charter rates for some dry bulk carriers declined below the

operating costs of those vessels before rising. We cannot assure you that future charter hire rates will

enable us to operate our vessels profitably, or to pay dividends. 

Rising crew costs could adversely affect our results of operations. 

Due to an increase in the size of the global shipping fleet, the limited supply of and increased demand for

crew has created upward pressure on crew costs. Additionally, the return of a number of Ukrainian

seafarers to their homes as a result of the ongoing war in Ukraine has reduced the number of seafarers

globally, and thereby increased the pressure on crew wages. Continued higher crew costs or further

increases in crew costs could adversely affect our results of operations.

Our investment in Diana Wilhelmsen Management Limited may expose us to additional risks.

During 2015 we invested in a 50/50 joint venture with Wilhelmsen Ship Management which provides

management services to a limited number of vessels in our fleet and to affiliated companies, but our

eventual goal is to provide fleet management services to unaffiliated third party vessel operators. While

this joint venture may provide us in the future with a potential revenue source, it may also expose us to

risks such as low customer satisfaction, increased operating costs compared to those we would achieve

for our vessels, and inability to adequately staff our vessels with crew that meets our expectations or to

maintain our vessels according to our standards, which would adversely affect our financial condition.

A cyber-attack could materially disrupt our business.

We rely on information technology systems and networks in our operations and administration of our

business. Information systems are vulnerable to security breaches by computer hackers and cyber

terrorists. We rely on industry accepted security measures and technology to securely maintain confidential

and proprietary information maintained on our information systems. However, these measures and

technology may not adequately prevent security breaches. Our business operations could be targeted by

individuals or groups seeking to sabotage or disrupt our information technology systems and networks, or

to steal data. A successful cyber-attack could materially disrupt our operations, including the safety of our

operations, or lead to unauthorized release of information or alteration of information in our systems. Any

such attack or other breach of our information technology systems could have a material adverse effect on

our business and results of operations. In addition, the unavailability of the information systems or the

failure of these systems to perform as anticipated for any reason could disrupt our business and could

result in decreased performance and increased operating costs, causing our business and results of

operations to suffer. Any significant interruption or failure of our information systems or any significant

breach of security could adversely affect our business and results of operations. Our systems were the

subject of a malicious attack in September 2020 that resulted in disruptions to our computer networks for

a period of several days. We were able to successfully fully restore our systems without interruption to our

business or operations. Since then, we have taken extensive measures to enhance our security

infrastructure, reform network architecture, and implement rigorous security policies in line with ISO27001.

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Key initiatives include establishing security testing, business continuity, disaster recovery, and incident

response programs, as well as implementing multi-factor authentication and a vulnerability management

framework. Despite these improvements we cannot assure you that we will be able to successfully thwart

all future attacks with causing material and adverse effect on our business.

Moreover, cyber-attacks against the Ukrainian government and other countries in the region have been

reported in connection with the recent conflict between Russia and Ukraine. To the extent such attacks

have collateral effects on global critical infrastructure or financial institutions, such developments could

adversely affect our business, operating results and financial condition. At this time, it is difficult to assess

the likelihood of such threat and any potential impact at this time.

Even without actual breaches of information security, protection against increasingly sophisticated and

prevalent cyberattacks may result in significant future prevention, detection, response and management

costs, or other costs, including the deployment of additional cybersecurity technologies, engaging third-

party experts, deploying additional personnel and training employees. Further, as cyberthreats are

continually evolving, our controls and procedures may become inadequate, and we may be required to

devote additional resources to modify or enhance our systems in the future. Such expenses could have a

material adverse effect on our future performance, results of operations, cash flows and financial position.

Climate change and greenhouse gas restrictions may adversely impact our operations and

markets.

Due to concern over the risk of climate change, a number of countries and the IMO have adopted, or are

considering the adoption of, regulatory frameworks to reduce greenhouse gas emissions. These regulatory

measures may include, among others, adoption of cap and trade regimes, carbon taxes, increased

efficiency standards and incentives or mandates for renewable energy. More specifically, on October 27,

2016, the International Maritime Organization’s Marine Environment Protection Committee (“MEPC”)

announced its decision concerning the implementation of regulations mandating a reduction in sulfur

emissions from 3.5% currently to 0.5% as of the beginning of January 1, 2020. Additionally, in April 2018,

nations at the MEPC 72 adopted an initial strategy to reduce greenhouse gas emissions from ships. The

initial strategy identifies ―levels of ambition to reducing greenhouse gas emissions, including (1)

decreasing the carbon intensity from ships through implementation of further phases of the EEDI for new

ships; (2) reducing carbon dioxide emissions per transport work, as an average across international

shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008 emission

levels; and (3) reducing the total annual greenhouse emissions by at least 50% by 2050 compared to 2008

while pursuing efforts towards phasing them out entirely.

Since January 1, 2020, ships have to either remove sulfur from emissions or buy fuel with low sulfur content,

which may lead to increased costs and supplementary investments for ship owners. The interpretation of

"fuel oil used on board" includes use in main engine, auxiliary engines and boilers. We have elected to

comply with this regulation by using 0.5% sulfur fuels on board, which are available around the world but

often at a higher cost and may result in higher costs than other companies that elected to install scrubbers

on their vessels.

In addition, although the emissions of greenhouse gases from international shipping currently are not

subject to the Kyoto Protocol to the United Nations Framework Convention on Climate Change, which

required adopting countries to implement national programs to reduce emissions of certain gases, or the

Paris Agreement (discussed further below), a new treaty may be adopted in the future that includes

restrictions on shipping emissions. Compliance with changes in laws, regulations and obligations relating

to climate change could increase our costs related to operating and maintaining our vessels and require

us to install new emission controls, acquire allowances or pay taxes related to our greenhouse gas

emissions or administer and manage a greenhouse gas emissions program. Revenue generation and

strategic growth opportunities may also be adversely affected.

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Increasing scrutiny and changing expectations from investors, lenders and other market

participants with respect to our ESG policies may impose additional costs on us or expose us to

additional risks.

Companies across all industries are facing increasing scrutiny relating to their ESG policies. Investor

advocacy groups, certain institutional investors, investment funds, lenders and other market participants

are increasingly focused on ESG practices and in recent years have placed increasing importance on the

implications and social cost of their investments. The increased focus and activism related to ESG and

similar matters may hinder access to capital, as investors and lenders may decide to reallocate capital or

to not commit capital as a result of their assessment of a company’s ESG practices. Companies which do

not adapt to or comply with investor, lender or other industry shareholder expectations and standards,

which are evolving, or which are perceived to have not responded appropriately to the growing concern for

ESG issues, regardless of whether there is a legal requirement to do so, may suffer from reputational

damage and the business, financial condition, and/or stock price of such a company could be materially

and adversely affected.

In February 2021, the Acting Chair of the SEC issued a statement directing the Division of Corporation

Finance to enhance its focus on climate-related disclosure in public company filings and in March 2021 the

SEC announced the creation of a Climate and ESG Task Force in the Division of Enforcement (the “Task

Force”). The Task Force’s goal is to develop initiatives to proactively identify ESG-related misconduct

consistent with increased investor reliance on climate and ESG-related disclosure and investment. To

implement the Task Force’s purpose, the SEC has taken several enforcement actions, with the first

enforcement action taking place in May 2022, and promulgated new rules. On March 21, 2022, the SEC

proposed that all public companies are to include extensive climate-related information in their SEC filings.

On May 25, 2022, SEC proposed a second set of rules aiming to curb the practice of "greenwashing" (i.e.,

making unfounded claims about one's ESG efforts) and would add proposed amendments to rules and

reporting forms that apply to registered investment companies and advisers, advisers exempt from

registration, and business development companies. As of the date of this annual report, these proposed

rules have not yet taken effect.

We may face increasing pressures from investors, lenders and other market participants, who are

increasingly focused on climate change, to prioritize sustainable energy practices, reduce our carbon

footprint and promote sustainability. As a result, we may be required to implement more stringent ESG

procedures or standards so that our existing and future investors and lenders remain invested in us and

make further investments in us. For example, in February 2021, we established a Sustainability Committee

and in March 2021, we signed an agreement with American Bureau of Shipping (“ABS”) to implement the

ABS Environmental MonitorTM digital sustainability solution across all our vessels managed by Diana

Shipping Services S.A. Additionally, in May 2021, we signed a sustainability - linked loan facility with ABN

AMRO Bank N.V., through six wholly-owned subsidiaries. Under this loan, the margin amount that we are

required to pay can be either increased or decreased depending on our ability to achieve certain

sustainability performance targets related to our fleet’s carbon emissions. If we do not meet the standards

in this loan, our business could be harmed.

Additionally, certain investors and lenders may exclude companies, such as us, from their investing

portfolios altogether due to environmental, social and governance factors. These limitations in both the

debt and equity capital markets may affect our ability to grow as our plans for growth may include accessing

the equity and debt capital markets. If those markets are unavailable, or if we are unable to access

alternative means of financing on acceptable terms, or at all, we may be unable to implement our business

strategy, which would have a material adverse effect on our financial condition and results of operations

and impair our ability to service our indebtedness. Further, it is likely that we will incur additional costs and

require additional resources to monitor, report and comply with wide ranging ESG requirements. The

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occurrence of any of the foregoing could have a material adverse effect on our business and financial

condition. 

Moreover, from time to time, in alignment with our sustainability priorities, we may establish and publicly

announce goals and commitments in respect of certain ESG items. While we may create and publish

voluntary disclosures regarding ESG matters from time to time, many of the statements in those voluntary

disclosures are based on hypothetical expectations and assumptions that may or may not be representative

of current or actual risks or events or forecasts of expected risks or events, including the costs associated

therewith. Such expectations and assumptions are necessarily uncertain and may be prone to error or

subject to misinterpretation given the long timelines involved and the lack of an established single approach

to identifying, measuring and reporting on many ESG matters. If we fail to achieve or improperly report on

our progress toward achieving our environmental goals and commitments, the resulting negative publicity

could adversely affect our reputation and/or our access to capital.

The Public Company Accounting Oversight Board inspection of our independent accounting firm,

could lead to findings in our auditors’ reports and challenge the accuracy of our published audited

consolidated financial statements.

Auditors of U.S. public companies are required by law to undergo periodic Public Company Accounting

Oversight Board, or PCAOB, inspections that assess their compliance with U.S. law and professional

standards in connection with performance of audits of financial statements filed with the SEC. For several

years certain European Union countries, including Greece, did not permit the PCAOB to conduct

inspections of accounting firms established and operating in such European Union countries, even if they

were part of major international firms. Accordingly, unlike for most U.S. public companies, the PCAOB was

prevented from evaluating our auditor’s performance of audits and its quality control procedures, and,

unlike stockholders of most U.S. public companies, we and our stockholders were deprived of the possible

benefits of such inspections. Since 2015, Greece has agreed to allow the PCAOB to conduct inspections

of accounting firms operating in Greece. In the future, such PCAOB inspections could result in findings in

our auditors’ quality control procedures, question the validity of the auditor’s reports on our published

consolidated financial statements and the effectiveness of our internal control over financial reporting, and

cast doubt upon the accuracy of our published audited financial statements.

Our earnings may be adversely affected if we are not able to take advantage of favorable charter

rates.

We charter our dry bulk carriers to customers pursuant to short, medium or long-term time charters.

However, as part of our business strategy, the majority of our vessels are currently fixed on medium-term

time charters. We may extend the charter periods for additional vessels in our fleet, including additional dry

bulk carriers that we may purchase in the future, to take advantage of the relatively stable cash flow and

high utilization rates that are associated with long-term time charters. While we believe that long-term

charters provide us with relatively stable cash flows and higher utilization rates than shorter-term charters,

our vessels that are committed to long-term charters may not be available for employment on short-term

charters during periods of increasing short-term charter hire rates when these charters may be more

profitable than long-term charters.

Investment in derivative instruments such as forward freight agreements could result in losses.

Forward freight agreements, or FFAs and other derivative instruments may be used to hedge a vessel

owner's exposure to the charter market by providing for the sale of a contracted charter rate along a

specified route and period of time. Upon settlement, if the contracted charter rate is less than the average

of the rates, as reported by an identified index, for the specified route and period, the seller of the FFA is

required to pay the buyer an amount equal to the difference between the contracted rate and the settlement

rate, multiplied by the number of days in the specified period. Conversely, if the contracted rate is greater

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than the settlement rate, the buyer is required to pay the seller the settlement sum. If we take positions in

FFAs or other derivative instruments and do not correctly anticipate charter rate movements over the

specified route and time period, we could suffer losses in the settling or termination of the FFA. This could

adversely affect our results of operations and cash flows.

We may have difficulty effectively managing our growth, which may adversely affect our earnings.

Since the completion of our initial public offering in March 2005, we have increased our fleet to 51 vessels

in operation in 2017, and as of the date of this annual report we have 41 vessels in operation, owned and

chartered-in. We may grow our fleet further in the future and this may require us to increase the number of

our personnel. We may also have to increase our customer base to provide continued employment for the

new vessels. 

Any future growth will primarily depend on our ability to:

●

locate and acquire suitable vessels;

●

identify and consummate acquisitions or joint ventures;

●

enhance our customer base;

●

manage our expansion; and

●

obtain required financing on acceptable terms.

Growing any business by acquisition presents numerous risks, such as undisclosed liabilities and

obligations, the possibility that indemnification agreements will be unenforceable or insufficient to cover

potential losses and difficulties associated with imposing common standards, controls, procedures and

policies, obtaining additional qualified personnel, managing relationships with customers and integrating

newly acquired assets and operations into existing infrastructure. We cannot give any assurance that we

will be successful in executing any future growth plans or that we will not incur significant expenses and

losses in connection with our future growth. 

We cannot assure you that we will be able to borrow amounts under loan facilities and restrictive

covenants in our loan facilities impose financial and other restrictions on us.

Historically, we have entered into several loan agreements to finance vessel acquisitions, the construction

of newbuildings and working capital. As of December 31, 2022, we had $530.1 million outstanding under

our facilities and bond. Our ability to borrow amounts under our facilities is subject to the execution of

customary documentation relating to the facility, including security documents, satisfaction of certain

customary conditions precedent and compliance with terms and conditions included in the loan documents.

Prior to each drawdown, we are required, among other things, to provide the lender with acceptable

valuations of the vessels in our fleet confirming that the vessels in our fleet have a minimum value and that

the vessels in our fleet that secure our obligations under the facilities are sufficient to satisfy minimum

security requirements. To the extent that we are not able to satisfy these requirements, including as a result

of a decline in the value of our vessels, we may not be able to draw down the full amount under the facilities

without obtaining a waiver or consent from the lender. We will also not be permitted to borrow amounts

under the facilities if we experience a change of control.

The loan facilities also impose operating and financial restrictions on us. These restrictions may limit our

ability to, among other things:

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●

pay dividends if there is a default under the loan facilities or if the payment of the dividend would

result in a default or breach of a loan covenants;

●

incur additional indebtedness, including through the issuance of guarantees;

●

change the flag, class or management of our vessels;

●

create liens on our assets;

●

sell our vessels;

●

enter into a time charter or consecutive voyage charters that have a term that exceeds, or which

by virtue of any optional extensions may exceed a certain period;

●

merge or consolidate with, or transfer all or substantially all our assets to, another person; and

●

enter into a new line of business.

Therefore, we may need to seek permission from our lenders in order to engage in some corporate actions.

Our lenders’ interests may be different from ours and we cannot guarantee that we will be able to obtain

our lenders' permission when needed. This may limit our ability to finance our future operations, make

acquisitions or pursue business opportunities.

We cannot assure you that we will be able to refinance indebtedness incurred under our loan

facilities and bond.

We cannot assure you that we will be able to refinance our indebtedness with equity offerings or otherwise,

on terms that are acceptable to us or at all. If we are not able to refinance these amounts with the net

proceeds of equity offerings or otherwise, on terms acceptable to us or at all, we will have to dedicate a

greater portion of our cash flow from operations to pay the principal and interest of this indebtedness than

if we were able to refinance such amounts. If we are not able to satisfy these obligations, we may have to

undertake alternative financing plans. The actual or perceived credit quality of our charterers, any defaults

by them, and the market value of our fleet, among other things, may materially affect our ability to obtain

alternative financing. In addition, debt service payments under our loan facilities or alternative financing

may limit funds otherwise available for working capital, capital expenditures and other purposes. If we are

unable to meet our debt obligations, or if we otherwise default under our loan facilities or an alternative

financing arrangement, our lenders could declare the debt, together with accrued interest and fees, to be

immediately due and payable and foreclose on our fleet, which could result in the acceleration of other

indebtedness that we may have at such time and the commencement of similar foreclosure proceedings

by other lenders.

Purchasing and operating secondhand vessels may result in increased operating costs and

reduced operating days, which may adversely affect our earnings. 

As part of our current business strategy to increase our owned fleet, we may acquire new and secondhand

vessels. While we rigorously inspect previously owned or secondhand vessels prior to purchase, this does

not provide us with the same knowledge about their condition and cost of any required (or anticipated)

repairs that we would have had if these vessels had been built for and operated exclusively by us.

Accordingly, we may not discover defects or other problems with secondhand vessels prior to purchasing

or chartering-in, or may incur costs to terminate a purchase agreement. Any such hidden defects or

problems may require us to put a vessel into drydock, which would reduce our fleet utilization and increase

our operating costs. If a hidden defect or problem is not detected, it may result in accidents or other

incidents for which we may become liable to third parties. 

31

In general, the costs to maintain a vessel in good operating condition increase with the age of the vessel.

Older vessels are typically less fuel-efficient than more recently constructed vessels due to improvements

in engine technology. Cargo insurance rates increase with the age of a vessel, making older vessels less

desirable to charterers.

Furthermore, governmental regulations, safety or other equipment standards related to the age of vessels

may require expenditures for alterations, or the addition of new equipment and may restrict the type of

activities in which the vessel may engage. As our vessels age, market conditions may not justify those

expenditures or enable us to operate our vessels profitably during the remainder of their useful lives. 

We are subject to certain risks with respect to our counterparties on contracts, and failure of such

counterparties to meet their obligations could cause us to suffer losses or otherwise adversely

affect our business.

We enter into, among other things, charter parties with our customers. Such agreements subject us to

counterparty risks. The ability and willingness of each of our counterparties to perform its obligations under

a contract with us will depend on a number of factors that are beyond our control and may include, among

other things, general economic conditions, the condition of the maritime and offshore industries, the overall

financial condition of the counterparty, charter rates received for specific types of vessels, and various

expenses. Should a counterparty fail to honor its 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.

In addition, in depressed market conditions, our charterers may no longer need a vessel that is currently

under charter or may be able to obtain a comparable vessel at lower rates. As a result, charterers may

seek to renegotiate the terms of their existing charter agreements or avoid their obligations under those

contracts. If our charterers fail to meet their obligations to us or attempt to renegotiate our charter

agreements, it may be difficult to secure substitute employment for such vessels, and any new charter

arrangements we secure may be at lower rates. As a result, we could sustain significant losses, which

could have a material adverse effect on our business, financial condition, results of operations and cash

flows. 

In the highly competitive international shipping industry, we may not be able to compete for

charters with new entrants or established companies with greater resources, and as a result, we

may be unable to employ our vessels profitably.

The operation of dry bulk vessels and transportation of dry bulk cargoes is extremely competitive and

fragmented. Competition for the transportation of dry bulk cargoes by sea is intense and depends on price,

location, size, age, condition and the acceptability of the vessel and its operators to the charterers.

Competition arises primarily from other vessel owners, some of whom have substantially greater resources

than we do. Due in part to the highly fragmented market, competitors with greater resources than us could

enter the dry bulk shipping industry and operate larger fleets through consolidations or acquisitions and

may be able to offer lower charter rates and higher quality vessels than we are able to offer. If we are

unable to successfully compete with other dry bulk shipping companies, our results of operations may be

adversely impacted.

We may be unable to attract and retain key management personnel and other employees in the

shipping industry, which may negatively impact the effectiveness of our management and results

of operations.

Our success depends to a significant extent upon the abilities and efforts of our management team. We

have entered into employment contracts with our Chief Executive Officer Mrs. Semiramis Paliou; our

32

President, Mr. Anastasios Margaronis; our Chief Financial Officer, Chief Strategy Officer, Treasurer and

Secretary Mr. Ioannis Zafirakis and our Chief Operating Officer Mr. Eleftherios Papatrifon. On February 22,

2023, Mr. Eleftherios Papatrifon resigned from his position of the Chief Operating Officer and since that

date serves as a member of the board of directors. Our success will depend upon our ability to retain key

members of our management team and to hire new members as may be necessary. The loss of any of

these individuals could adversely affect our business prospects and financial condition. Difficulty in hiring

and retaining replacement personnel could have a similar effect. We do not currently, nor do we intend to,

maintain “key man” life insurance on any of our officers or other members of our management team.

Technological innovation and quality and efficiency requirements from our customers could

reduce our charter hire income and the value of our vessels.

Our customers have a high and increasing focus on quality and compliance standards with their suppliers

across the entire supply chain, including the shipping and transportation segment. Our continued

compliance with these standards and quality requirements is vital for our operations. The charter hire rates

and the value and operational life of a vessel are determined by a number of factors including the vessel’s

efficiency, operational flexibility and physical life. Efficiency includes speed, fuel economy and the ability to

load and discharge cargo quickly. Flexibility includes the ability to enter harbors, utilize related docking

facilities and pass through canals and straits. The length of a vessel’s physical life is related to its original

design and construction, its maintenance and the impact of the stress of operations. We face competition

from companies with more modern vessels having more fuel efficient designs than our vessels, or eco

vessels, and if new dry bulk vessels are built that are more efficient or more flexible or have longer physical

lives than the current eco vessels, competition from the current eco vessels and any more technologically

advanced vessels could adversely affect the amount of charter hire payments we receive for our vessels

and the resale value of our vessels could significantly decrease. Similarly, technologically advanced

vessels are needed to comply with environmental laws the investment in which along with the foregoing

could have a material adverse effect on our results of operations, charter hire payments and resale value

of vessels. This could have an adverse effect on our results of operations, cash flows, financial condition

and ability to pay dividends. 

We may not have adequate insurance to compensate us if we lose our vessels or to compensate

third parties.

We procure insurance for our fleet against risks commonly insured against by vessel owners and operators.

Our current insurance includes hull and machinery insurance, war risks insurance and protection and

indemnity insurance (which includes environmental damage and pollution insurance). We can give no

assurance that we are adequately insured against all risks or that our insurers will pay a particular claim.

Even if our insurance coverage is adequate to cover our losses, we may not be able to timely obtain a

replacement vessel in the event of a loss. Furthermore, in the future, we may not be able to obtain adequate

insurance coverage at reasonable rates for our fleet. We may also be subject to calls, or premiums, in

amounts based not only on our own claim records but also the claim records of all other members of the

protection and indemnity associations through which we receive indemnity insurance coverage for tort

liability. Our insurance policies also contain deductibles, limitations and exclusions which, although we

believe are standard in the shipping industry, may nevertheless increase our costs.

Our vessels may suffer damage and we may face unexpected drydocking costs, which could

adversely affect our cash flow and financial condition.

If our vessels suffer damage, they may need to be repaired at a drydocking facility. The costs of drydock

repairs are unpredictable and can be substantial. The loss of earnings while a vessel is being repaired and

repositioned, as well as the actual cost of these repairs not covered by our insurance, would decrease our

earnings and available cash. We may not have insurance that is sufficient to cover all or any of the costs

or losses for damages to our vessels and may have to pay drydocking costs not covered by our insurance.

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The aging of our fleet may result in increased operating costs in the future, which could adversely

affect our earnings.

In general, the cost of maintaining a vessel in good operating condition increases with the age of the vessel.

As of the date of this annual report, our fleet consists of 41 vessels in operation, owned and chartered-in,

having a combined carrying capacity of 4.7 million dead weight tons, or dwt, and a weighted average age

of 9.9 years. As our fleet ages, we will incur increased costs. Older vessels are typically less fuel efficient

and more costly to maintain than more recently constructed vessels due to improvements in engine

technology. Cargo insurance rates increase with the age of a vessel, making older vessels less desirable

to charterers. Governmental regulations and safety or other equipment standards related to the age of

vessels may also require expenditures for alterations or the addition of new equipment to our vessels and

may restrict the type of activities in which our vessels may engage. We cannot assure you that, as our

vessels age, market conditions will justify those expenditures or enable us to operate our vessels profitably

during the remainder of their useful lives.

We are exposed to U.S. dollar and foreign currency fluctuations and devaluations that could harm

our reported revenue and results of operations.

We generate all of our revenues in U.S. dollars but incur around half of our operating expenses and our

general and administrative expenses in currencies other than the U.S. dollar, primarily the Euro. Because

a significant portion of our expenses is incurred in currencies other than the U.S. dollar, our expenses may

from time to time increase relative to our revenues as a result of fluctuations in exchange rates, particularly

between the U.S. dollar and the Euro, which could affect the amount of net income that we report in future

periods. While we historically have not mitigated the risk associated with exchange rate fluctuations through

the use of financial derivatives, we may employ such instruments from time to time in the future in order to

minimize this risk. Our use of financial derivatives would involve certain risks, including the risk that losses

on a hedged position could exceed the nominal amount invested in the instrument and the risk that the

counterparty to the derivative transaction may be unable or unwilling to satisfy its contractual obligations,

which could have an adverse effect on our results.

Volatility of London Interbank Offered Rate (“LIBOR”), the cessation of LIBOR and replacement of

our interest rate in our debt agreements could affect our profitability, earnings and cash flow.

As certain of our current financing agreements have, and our future financing arrangements may have,

floating interest rates, typically based on LIBOR, movements in interest rates could negatively affect our

financial performance. The publication of U.S. Dollar LIBOR for the one-week and two-month U.S. Dollar

LIBOR tenors ceased on December 31, 2021, and the ICE Benchmark Administration (“IBA”), the

administrator of LIBOR, with the support of the United States Federal Reserve and the United Kingdom’s

Financial Conduct Authority, announced the publication of all other U.S. Dollar LIBOR tenors will cease on

June 30, 2023. The United States Federal Reserve concurrently issued a statement advising banks to

cease issuing U.S. Dollar LIBOR instruments after 2021. As such, any new loan agreements we enter into

will not use LIBOR as an interest rate, and we will need to transition our existing loan agreements from

U.S. Dollar LIBOR to an alternative reference rate prior to June 2023. 

In order to manage our exposure to interest rate fluctuations under LIBOR, the Secured Overnight

Financing Rate, or “SOFR”, or any other alternative rate, we have and may from time to time use interest

rate derivatives to effectively fix some of our floating rate debt obligations. No assurance can however be

given that the use of these derivative instruments, if any, may effectively protect us from adverse interest

rate movements. The use of interest rate derivatives may affect our results through mark to market

valuation of these derivatives. Also, adverse movements in interest rate derivatives may require us to post

cash as collateral, which may impact our free cash position. Interest rate derivatives may also be impacted

by the transition from LIBOR to SOFR or other alternative rates. 

34

Our financing agreements contain a provision requiring or permitting us to enter into negotiations with our

lenders to agree to an alternative interest rate or an alternative basis for determining the interest rate in

anticipation of the cessation of LIBOR. These clauses present significant uncertainties as to how alternative

reference rates or alternative bases for determination of rates would be agreed upon, as well as the

potential for disputes or litigation with our lenders regarding the appropriateness or comparability to LIBOR

of any substitute indices, such as SOFR, and any credit adjustment spread between the two benchmarks.

In the absence of an agreement between us and our lenders, most of our financing agreements provide

that LIBOR would be replaced with some variation of the lenders’ cost-of-funds rate. The discontinuation

of LIBOR presents a number of risks to our business, including volatility in applicable interest rates among

our financing agreements, potential increased borrowing costs for future financing agreements or

unavailability of or difficulty in attaining financing, which could in turn have an adverse effect on our

profitability, earnings and cash flow.

We depend upon a few significant customers for a large part of our revenues and the loss of one

or more of these customers could adversely affect our financial performance. 

We have historically derived a significant part of our revenues from a small number of charterers. During

2022, 2021, and 2020, approximately 34%, 10% and 34%, respectively, of our revenues were derived from

two, one and two charterers, respectively. If one or more of our charterers chooses not to charter our

vessels or is unable to perform under one or more charters with us and we are not able to find a

replacement charter, we could suffer a loss of revenues that could adversely affect our financial condition

and results of operations.

We are a holding company, and we depend on the ability of our subsidiaries to distribute funds to

us in order to satisfy our financial obligations.

We are a holding company and our subsidiaries conduct all of our operations and own all of our operating

assets. We have no significant assets other than the equity interests in our subsidiaries. As a result, our

ability to satisfy our financial obligations depends on our subsidiaries and their ability to distribute funds to

us. If we are unable to obtain funds from our subsidiaries, we may not be able to satisfy our financial

obligations.

Because we are organized under the laws of the Marshall Islands, it may be difficult to serve us

with legal process or enforce judgments against us, our directors or our management.

We are organized under the laws of the Marshall Islands, and substantially all of our assets are located

outside of the United States. In addition, the majority of our directors and officers are non-residents of the

United States, and all or a substantial portion of the assets of these non-residents are located outside the

United States. As a result, it may be difficult or impossible for someone to bring an action against us or

against these individuals in the United States if they believe that their rights have been infringed under

securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the

Marshall Islands and of other jurisdictions may prevent or restrict them from enforcing a judgment against

our assets or the assets of our directors or officers.

The international nature of our operations may make the outcome of any bankruptcy proceedings

difficult to predict.

We are incorporated under the laws of the Republic of the Marshall Islands and we conduct operations in

countries around the world. Consequently, in the event of any bankruptcy, insolvency, liquidation,

dissolution, reorganization or similar proceeding involving us or any of our subsidiaries, bankruptcy laws

other than those of the United States could apply. If we become a debtor under U.S. bankruptcy law,

bankruptcy courts in the United States may seek to assert jurisdiction over all of our assets, wherever

35

located, including property situated in other countries. There can be no assurance, however, that we would

become a debtor in the United States, or that a U.S. bankruptcy court would be entitled to, or accept,

jurisdiction over such a bankruptcy case, or that courts in other countries that have jurisdiction over us and

our operations would recognize a U.S. bankruptcy court’s jurisdiction if any other bankruptcy court would

determine it had jurisdiction.

If we expand our business further, we may need to improve our operating and financial systems

and will need to recruit suitable employees and crew for our vessels.

Our current operating and financial systems may not be adequate if we further expand the size of our fleet

and our attempts to improve those systems may be ineffective. In addition, if we expand our fleet further,

we will need to recruit suitable additional seafarers and shoreside administrative and management

personnel. While we have not experienced any difficulty in recruiting to date, we cannot guarantee that we

will be able to continue to hire suitable employees if we expand our fleet. If we or our crewing agents

encounter business or financial difficulties, we may not be able to adequately staff our vessels. If we are

unable to grow our financial and operating systems or to recruit suitable employees should we determine

to expand our fleet, our financial performance may be adversely affected, among other things.

We may have to pay tax on U.S. source income, which would reduce our earnings.

Under the U.S. Internal Revenue Code of 1986, as amended, or the Code, 50% of the gross shipping

income of a vessel-owning or chartering corporation, such as ourselves and our subsidiaries, that is

attributable to transportation that begins or ends, but that does not both begin and end, in the United States

is characterized as U.S. source shipping income and such income is generally subject to a 4% U.S. federal

income tax without allowance for deductions, unless that corporation qualifies for exemption from tax under

Section 883 of the Code and the Treasury Regulations promulgated thereunder.

We expect that we and each of our subsidiaries qualify for this statutory tax exemption for the 2022 taxable

year and we will take this position for U.S. federal income tax return reporting purposes. However, there

are factual circumstances beyond our control that could cause us to lose the benefit of this tax exemption

in future years and thereby become subject to U.S. federal income tax on our U.S. source shipping income.

For example, in certain circumstances we may no longer qualify for exemption under Code Section 883 for

a particular taxable year if shareholders, other than “qualified shareholders”, with a five percent or greater

interest in our common shares owned, in the aggregate, 50% or more of our outstanding common shares

for more than half the days during the taxable year. Due to the factual nature of the issues involved, we

can give no assurances on our tax-exempt status or that of any of our subsidiaries.

If we or our subsidiaries are not entitled to this exemption under Section 883 of the Code for any taxable

year, we or our subsidiaries would be subject for those years to a 4% U.S. federal income tax on our gross

U.S.-source shipping income. The imposition of this taxation could have a negative effect on our business

and would result in decreased earnings available for distribution to our shareholders, although, for the 2022

taxable year, we estimate our maximum U.S. federal income tax liability to be immaterial if we were subject

to this U.S. federal income tax. See “Item 10. Additional Information—E. Taxation" for a more

comprehensive discussion of U.S. federal income tax considerations.

U.S. federal tax authorities could treat us as a “passive foreign investment company”, which could

have adverse U.S. federal income tax consequences to U.S. shareholders.

A foreign corporation will be treated as a “passive foreign investment company”, or PFIC, for U.S. federal

income tax purposes if either (1) at least 75% of its gross income for any taxable year consists of certain

types of “passive income” or (2) at least 50% of the average value of the corporation's assets produce or

are held for the production of those types of “passive income.” For purposes of these tests, “passive

income” includes dividends, interest, gains from the sale or exchange of investment property, and rents

36

and royalties other than rents and royalties which are received from unrelated parties in connection with

the active conduct of a trade or business. For purposes of these tests, income derived from the

performance of services does not constitute “passive income.” U.S. shareholders of a PFIC are subject to

a disadvantageous U.S. federal income tax regime with respect to the income derived by the PFIC, the

distributions they receive from the PFIC and the gain, if any, they derive from the sale or other disposition

of their shares in the PFIC.

Based on our current and proposed method of operation, we do not believe that we will be a PFIC with

respect to any taxable year. In this regard, we intend to treat the gross income we derive or are deemed to

derive from our time chartering activities as services income, rather than rental income. Accordingly, we

believe that our income from our time chartering activities does not constitute “passive income,” and the

assets that we own and operate in connection with the production of that income do not constitute assets

that produce or are held for the production of “passive income”.

There is substantial legal authority supporting this position consisting of case law and U.S. Internal

Revenue Service, or “IRS”, pronouncements concerning the characterization of income derived from time

charters and voyage charters as services income for other tax purposes. However, it should be noted that

there is also authority which characterizes time charter income as rental income rather than services

income for other tax purposes. Accordingly, no assurance can be given that the IRS or a court of law will

accept this position, and there is a risk that the IRS or a court of law could determine that we are a PFIC.

Moreover, no assurance can be given that we would not constitute a PFIC for any future taxable year if the

nature and extent of our operations changed.

If the IRS or a court of law were to find that we are or have been a PFIC for any taxable year, our U.S.

shareholders would face adverse U.S. federal income tax consequences. Under the PFIC rules, unless

those shareholders make an election available under the Code (which election could itself have adverse

consequences for such shareholders), such shareholders would be subject to U.S. federal income tax at

the then prevailing U.S. federal income tax rates on ordinary income plus interest upon excess distributions

and upon any gain from the disposition of our common stock, as if the excess distribution or gain had been

recognized ratably over the shareholder's holding period of our common stock. See “Item 10. Additional

Information—E. Taxation–United States Taxation of U.S. Holders–PFIC Status and Significant Tax

Consequences" for a more comprehensive discussion of the U.S. federal income tax consequences to U.S.

holders of our common stock if we are or were to be treated as a PFIC.

Risks Relating to Our Common Stock

We cannot assure you that our board of directors will continue to declare dividends on shares of

our common stock in the future.

In order to position us to take advantage of market opportunities in a then-deteriorating market, our board

of directors, beginning with the fourth quarter of 2008, suspended our common stock dividend. As a result

of improving market conditions in 2022, our board of directors elected to declare quarterly dividends and a

special non-cash dividend. Our board of directors have also declared a cash dividend paid on March 20,

2023 and a noncash dividend payable on May 16, 2023 and we intend to declare and pay quarterly cash

dividends with respect to the next three quarters of 2023 in an amount of not less than $0.15 per share.

The actual declaration of future cash dividends, and the establishment of record and payment dates, is

subject to final determination by our board of directors each quarter after its review of the company's

financial performance. We cannot assure you that our board of directors will declare and pay dividends

going forward. Our dividend policy is assessed by our board of directors from time to time, based on

prevailing market conditions, available cash, uses of capital, contingent liabilities, the terms of our loan

facilities, our growth strategy and other cash needs, the requirements of Marshall Islands law and other

factors deemed relevant to our board of directors. In addition, other external factors, such as our lenders

imposing restrictions on our ability to pay dividends under the terms of our loan facilities, may limit our

37

ability to pay dividends. Further, under the terms of our loan agreements, we may not be permitted to pay

dividends that would result in an event of default or if an event of default has occurred and is continuing.

Our growth strategy contemplates that we will finance the acquisition of additional vessels through a

combination of debt and equity financing on terms acceptable to us. If financing is not available to us on

acceptable terms, our board of directors may determine to finance or refinance acquisitions with cash from

operations, which could also reduce or even eliminate the amount of cash available for the payment of

dividends.

Marshall Islands law generally prohibits the payment of dividends other than from surplus (retained

earnings and the excess of consideration received for the sale of shares above the par value of the shares)

or while a company is insolvent or would be rendered insolvent by the payment of such a dividend. We

may not have sufficient surplus in the future to pay dividends. 

In addition, our ability to pay dividends to holders of our common shares will be subject to the rights of

holders of our Series B Preferred Shares, which rank senior to our common shares with respect to

dividends, distributions and payments upon liquidation. No cash dividend may be paid on our common

stock unless full cumulative dividends have been or contemporaneously are being paid or provided for on

all outstanding Series B Preferred Shares for all prior and the then-ending dividend periods. Cumulative

dividends on our Series B Preferred Shares accrue at a rate of 8.875% per annum per $25.00 stated

liquidation preference per Series B Preferred Share, subject to increase upon the occurrence of certain

events, and are payable, as and if declared by our board of directors, on January 15, April 15, July 15 and

October 15 of each year, or, if any such dividend payment date otherwise would fall on a date that is not a

business day, the immediately succeeding business day. For additional information about our Series B

Preferred Shares, please see the section entitled "Description of Registrant's Securities to be Registered"

of our registration statement on Form 8-A filed with the SEC on February 13, 2014 and incorporated by

reference herein.

The market prices and trading volume of our shares of common stock may experience rapid and

substantial price volatility, which could cause purchasers of our common stock to incur substantial

losses.

Our shares of our common stock may experience similar rapid and substantial price volatility unrelated

to our financial performance, which could cause purchasers of our common stock to incur substantial

losses, which may be unpredictable and not bear any relationship to our business and financial

performance. Extreme fluctuations in the market price of our common stock may occur in response to

strong and atypical retail investor interest, including on social media and online forums, the direct

access by retail investors to broadly available trading platforms, the amount and status of short interest

in our common stock and our other securities, access to margin debt, trading in options and other

derivatives on our shares of common stock and any related hedging and other trading factors:

If there is extreme market volatility and trading patterns in our common stock, it may create several

risks for purchasers of our shares, including the following:

●

the market price of our common stock may experience rapid and substantial increases or

decreases unrelated to our operating performance or prospects, or macro or industry

fundamentals;

●

if our future market capitalization reflects trading dynamics unrelated to our financial

performance or prospects, purchasers of our common stock could incur substantial losses

as prices decline once the level of market volatility has abated;

38

●

if the future market price of our common stock declines, purchasers of shares of common

stock in this offering may be unable to resell such shares at or above the price at which they

acquired them. We cannot assure such purchasers that the market of our common stock

will not fluctuate or decline significantly in the future, in which case investors in this offering

could incur substantial losses.

Further, we may incur rapid and substantial increases or decreases in our common stock price in the

foreseeable future that may not coincide in timing with the disclosure of news or developments by or

affecting us. Accordingly, the market price of our common stock may fluctuate dramatically, and may

decline rapidly, regardless of any developments in our business. Overall, there are various factors,

many of which are beyond our control, that could negatively affect the market price of our common

stock or result in fluctuations in the price or trading volume of our common stock, including:

●

actual or anticipated variations in our annual or quarterly results of operations, including our

earnings estimates and whether we meet market expectations with regard to our earnings;

●

our ability to pay dividends or other distributions;

●

publication of research reports by analysts or others about us or the shipping industry in

which we operate which may be unfavorable, inaccurate, inconsistent or not disseminated

on a regular basis;

●

changes in market valuations of similar companies;

●

market reaction to any additional equity, debt or other securities that we may issue in the

future, and which may or may not dilute the holdings of our existing stockholders;

●

additions or departures of key personnel;

●

actions by institutional or significant stockholders;

●

short interest in our common stock or our other securities and the market response to such

short interest;

●

the dramatic increase in the number of individual holders of our common stock and their

participation in social media platforms targeted at speculative investing;

●

speculation in the press or investment community about our company or industries in which

we operate;

●

strategic actions by us or our competitors, such as acquisitions or other investments;

●

legislative, administrative, regulatory or other actions affecting our business, our industry;

●

investigations, proceedings, or litigation that involve or affect us;

●

the occurrence of any of the other risk factors included in this registration statement of which

this prospectus forms a part; and

●

general market and economic conditions.

39

Since we are incorporated in the Marshall Islands, which does not have a well-developed body of

corporate law, you may have more difficulty protecting your interests than shareholders of a U.S.

corporation.

Our corporate affairs are governed by our amended and restated articles of incorporation and bylaws and

by the Marshall Islands Business Corporations Act, or the BCA. The provisions of the BCA resemble

provisions of the corporation laws of a number of states in the United States. However, there have been

few judicial cases in the Marshall Islands interpreting the BCA. The rights and fiduciary responsibilities of

directors under the laws of the Marshall Islands are not as clearly established as the rights and fiduciary

responsibilities of directors under statutes or judicial precedent in existence in the United States. The rights

of shareholders of the Marshall Islands may differ from the rights of shareholders of companies

incorporated in the United States. While the BCA provides that it is to be interpreted according to the laws

of the State of Delaware and other states with substantially similar legislative provisions, there have been

few, if any, court cases interpreting the BCA in the Marshall Islands and we cannot predict whether Marshall

Islands courts would reach the same conclusions as U.S. courts. Thus, you may have more difficulty in

protecting your interests in the face of actions by the management, directors or controlling shareholders

than would shareholders of a corporation incorporated in a U.S. jurisdiction which has developed a

relatively more substantial body of case law. 

As a Marshall Islands corporation and with some of our subsidiaries being Marshall Islands entities

and also having subsidiaries in other offshore jurisdictions, our operations may be subject to

economic substance requirements, which could impact our business.

We are a Marshall Islands corporation and some of our subsidiaries are Marshall Islands entities. The

Marshall Islands has enacted economic substance laws and regulations with which we may be obligated

to comply. We believe that we and our subsidiaries are compliant with the Marshall Islands economic

substance requirements. However, if there were a change in the requirements or interpretation thereof, or

if there were an unexpected change to our operations, any such change could result in noncompliance with

the economic substance legislation and related fines or other penalties, increased monitoring and audits,

and dissolution of the non-compliant entity, which could have an adverse effect on our business, financial

condition or operating results.

EU Finance ministers rate jurisdictions for tax rates and tax transparency, governance and real economic

activity. Countries that are viewed by such finance ministers as not adequately cooperating, including by

not implementing sufficient standards in respect of the foregoing, may be put on a “grey list” or a “blacklist”.

As of December 31, 2022, the Marshall Islands remained "white-listed" by the EU. However, on February

14, 2023, the Marshall Islands was placed by the EU on its list of non-cooperative jurisdictions for tax

purposes, on the grounds that Marshall Islands facilitates offshore structures and arrangements aimed at

attracting profits without real economic substance as they failed to fulfil their commitments to the Code of

Conduct Group with regard to economic substance requirements. At present, the impact of being included

on the list of non-cooperative jurisdictions for tax purposes is unclear. Although we understand that the

Marshall Islands is committed to full cooperation with the EU and expects to be moved back to the "white

list" in October 2023, subject to review by the EU Council, there is no assurance that such a reclassification

will occur.

If the Marshall Islands is not removed from the list and sanctions or other financial, tax or regulatory

measures were applied by European Member States to countries on the list or further economic substance

requirements were imposed by the Marshall Islands, our business could be harmed.

EU member states have agreed upon a set of measures, which they can choose to apply against grey- or

blacklisted countries, including monitoring and audits, withholding taxes, special documentation

requirements and anti-abuse provisions. The European Commission has stated it will continue to support

member states' efforts to develop a more coordinated approach to sanctions for the listed countries. EU

40

legislation prohibits EU funds from being channeled or transited through entities in countries on the

blacklist. Other jurisdictions in which we operate could be put on the blacklist in the future.

Certain existing shareholders will be able to exert considerable influence over matters on which

our shareholders are entitled to vote. 

As of the date of this annual report, Mrs. Semiramis Paliou, our Chief Executive Officer and Director,

beneficially owns 16,883,779 shares, or approximately 15.9% of our outstanding common stock, which is

held indirectly through entities over which she exercises sole voting power. Mrs. Paliou controls 10,675

shares of Series C Preferred Stock, par value $0.01 per share, issued on January 31, 2019, and 400 shares

of Series D Preferred Stock, issued on June 22, 2021. The Series C Preferred Stock vote with our common

shares and each share of the Series C Preferred Stock entitles the holder thereof to 1,000 votes on all

matters submitted to a vote of the common stockholders of the Issuer. The Series D Preferred Stock vote

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

holder thereof to up to 100,000 votes, on all matters submitted to a vote of the stockholders of the Company,

subject to a maximum number of votes eligible to be cast by such holder derived from the Series D

Preferred Shares and any other voting security of the Company held by the holder to be equal to

the lesser of (i) 36% of the total number of votes entitled to vote on any matter put to shareholders of the

Company and (ii) the sum of the holder’s aggregate voting power derived from securities other than the

Series D Preferred Stock and 15% of the total number of votes entitled to be cast on matters put to

shareholders of the Company. Through her beneficial ownership of common shares and shares of Series

C Preferred Stock and Series D Preferred Stock, Mrs. Paliou controls 36% of the vote of any matter

submitted to the vote of the common shareholders. Please see "Item 7. Major Shareholders and Related

Party Transactions—A. Major Shareholders." While Mrs. Paliou and the entities controlled by Mrs. Paliou

have no agreement, arrangement or understanding relating to the voting of their shares of our common

stock, they are able to influence the outcome of matters on which our shareholders are entitled to vote,

including the election of directors and other significant corporate actions. This concentration of ownership

may have the effect of delaying, deferring or preventing a change in control, merger, consolidation,

takeover or other business combination. This concentration of ownership could also discourage a potential

acquirer from making a tender offer or otherwise attempting to obtain control of us, which could in turn have

an adverse effect on the market price of our shares. So long as our Chief Executive Officer continues to

own a significant amount of our equity, even though the amount held by her represents less than 50% of

our voting power, she will continue to be able to exercise considerable influence over our decisions. The

interests of these shareholders may be different from your interests.

Future sales of our common stock could cause the market price of our common stock to decline.

Our amended and restated articles of incorporation authorize us to issue up to 200,000,000 shares of

common stock, of which, as of December 31, 2022, 102,653,619 shares were outstanding. The number of

shares of common stock available for sale in the public market is limited by restrictions applicable under

securities laws and agreements that we and our executive officers, directors and principal shareholders

have entered into.

Sales of a substantial number of shares of our common stock in the public market, or the perception that

these sales could occur, may depress the market price for our common stock. These sales could also

impair our ability to raise additional capital through the sale of our equity securities in the future.

41

Anti-takeover provisions in our organizational documents could make it difficult for our

shareholders to replace or remove our current board of directors or have the effect of discouraging,

delaying or preventing a merger or acquisition, which could adversely affect the market price of

our common stock.

Several provisions of our amended and restated articles of incorporation and bylaws could make it difficult

for our shareholders to change the composition of our board of directors in any one year, preventing them

from changing the composition of management. In addition, the same provisions may discourage, delay or

prevent a merger or acquisition that shareholders may consider favorable.

These provisions include:

●

authorizing our board of directors to issue “blank check” preferred stock without shareholder

approval;

●

providing for a classified board of directors with staggered, three-year terms;

●

prohibiting cumulative voting in the election of directors;

●

authorizing the removal of directors only for cause and only upon the affirmative vote of the

holders of a majority of the outstanding shares of our common stock entitled to vote for the

directors;

●

prohibiting shareholder action by written consent;

●

limiting the persons who may call special meetings of shareholders; and

●

establishing advance notice requirements for nominations for election to our board of directors

or for proposing matters that can be acted on by shareholders at shareholder meetings.

In addition, we have adopted a Stockholders Rights Agreement, dated January 15, 2016, pursuant to which

our board of directors may cause the substantial dilution of any person that attempts to acquire us without

the approval of our board of directors.

These anti-takeover provisions, including provisions of our Stockholders Rights Agreement, could

substantially impede the ability of public shareholders to benefit from a change in control and, as a result,

may adversely affect the market price of our common stock and your ability to realize any potential change

of control premium.

Our Series B Preferred Shares are senior obligations of ours and rank prior to our common shares

with respect to dividends, distributions and payments upon liquidation, which could have an

adverse effect on the value of our common shares.

The rights of the holders of our Series B Preferred Shares rank senior to the obligations to holders of our

common shares. Upon our liquidation, the holders of Series B Preferred Shares will be entitled to receive

a liquidation preference of $25.00 per share, plus all accrued but unpaid dividends, prior and in preference

to any distribution to the holders of any other class of our equity securities, including our common shares.

The existence of the Series B Preferred Shares could have an adverse effect on the value of our common

shares.

Risks Relating to Our Series B Preferred Stock

42

We may not have sufficient cash from our operations to enable us to pay dividends on our Series

B Preferred Shares following the payment of expenses and the establishment of any reserves.

We pay quarterly dividends on our Series B Preferred Shares only from funds legally available for such

purpose when, as and if declared by our board of directors. We may not have sufficient cash available

each quarter to pay dividends. The amount of dividends we can pay on our Series B Preferred Shares

depends upon the amount of cash we generate from and use in our operations, which may fluctuate.

The amount of cash we have available for dividends on our Series B Preferred Shares will not depend

solely on our profitability. The actual amount of cash we have available to pay dividends on our Series B

Preferred Shares depends on many factors, including the following:

●

changes in our operating cash flow, capital expenditure requirements, working capital requirements

and other cash needs;

●

restrictions under our existing or future credit facilities or any future debt securities on our ability to

pay dividends if an event of default has occurred and is continuing or if the payment of the dividend

would result in an event of default, or under certain facilities if it would result in the breach of certain

financial covenants;

●

the amount of any cash reserves established by our board of directors; and

●

restrictions under Marshall Islands law, which generally prohibits the payment of dividends other

than from surplus (retained earnings and the excess of consideration received for the sale of shares

above the par value of the shares) or while a company is insolvent or would be rendered insolvent

by the payment of such a dividend.

The amount of cash we generate from our operations may differ materially from our net income or loss for

the period, which is affected by non-cash items, and our board of directors in its discretion may elect not

to declare any dividends. As a result of these and the other factors mentioned above, we may pay dividends

during periods when we record losses and may not pay dividends during periods when we record net

income.

The Series B Preferred Shares represent perpetual equity interests.

The Series B Preferred Shares represent perpetual equity interests in us and, unlike our indebtedness, will

not give rise to a claim for payment of a principal amount at a particular date. As a result, holders of the

Series B Preferred Shares may be required to bear the financial risks of an investment in the Series B

Preferred Shares for an indefinite period of time. In addition, the Series B Preferred Shares will rank junior

to all our indebtedness and other liabilities, and to any other senior securities we may issue in the future

with respect to assets available to satisfy claims against us.

Our Series B Preferred Shares are subordinate to our indebtedness, and your interests could be

diluted by the issuance of additional preferred shares, including additional Series B Preferred

Shares, and by other transactions.

Our Series B Preferred Shares are subordinated to all of our existing and future indebtedness. Therefore,

our ability to pay dividends on, redeem or pay the liquidation preference on our Series B Preferred Shares

in liquidation or otherwise may be subject to prior payments due to the holders of our indebtedness. Our

existing indebtedness restricts, and our future indebtedness may include restrictions on, our ability to pay

dividends on or redeem preferred shares. Our amended and restated articles of incorporation currently

authorize the issuance of up to 25,000,000 preferred shares, par value $0.01 per share. Of these preferred

shares, 1,000,000 shares have been designated Series A Participating Preferred Stock, 5,000,000 shares

43

have been designated Series B Preferred Shares, 10,675 are designated as Series C Preferred Shares

and 400 are designated as Series D Preferred Shares. The Series B Preferred Shares are senior in rank

to the Series A Participating Preferred Shares. The issuance of additional Series B Preferred Shares or

other preferred shares on a parity with or senior to the Series B Preferred Shares would dilute the interests

of holders of our Series B Preferred Shares, and any issuance of preferred shares senior to our Series B

Preferred Shares or of additional indebtedness could affect our ability to pay dividends on, redeem or pay

the liquidation preference on our Series B Preferred Shares. The Series B Preferred Shares do not contain

any provisions affording the holders of our Series B Preferred Shares protection in the event of a highly

leveraged or other transaction, including a merger or the sale, lease or conveyance of all or substantially

all our assets or business, which might adversely affect the holders of our Series B Preferred Shares, so

long as the rights of our Series B Preferred Shares are not directly materially and adversely affected.

We may redeem the Series B Preferred Shares, and you may not be able to reinvest the redemption

price you receive in a similar security.

Since February 14, 2019, we may, at our option, redeem Series B Preferred Shares, in whole or in part, at

any time or from time to time. We may have an incentive to redeem Series B Preferred Shares voluntarily

if market conditions allow us to issue other preferred shares or debt securities at a rate that is lower than

the dividend on the Series B Preferred Shares. If we redeem Series B Preferred Shares, then from and

after the redemption date, your dividends will cease to accrue on your Series B Preferred Shares, your

Series B Preferred Shares shall no longer be deemed outstanding and all your rights as a holder of those

shares will terminate, except the right to receive the redemption price plus accumulated and unpaid

dividends, if any, payable upon redemption. If we redeem the Series B Preferred Shares for any reason,

you may not be able to reinvest the redemption price you receive in a similar security. 

Market interest rates may adversely affect the value of our Series B Preferred Shares.

One of the factors that may influence the price of our Series B Preferred Shares is the dividend yield on

the Series B Preferred Shares (as a percentage of the price of our Series B Preferred Shares) relative to

market interest rates. An increase in market interest rates, which are currently at low levels relative to

historical rates, may lead prospective purchasers of our Series B Preferred Shares to expect a higher

dividend yield, and higher interest rates would likely increase our borrowing costs and potentially decrease

funds available for distribution. Accordingly, higher market interest rates could cause the market price of

our Series B Preferred Shares to decrease.

As a holder of Series B Preferred Shares you have extremely limited voting rights.

Your voting rights as a holder of Series B Preferred Shares are extremely limited. Our common shares are

the only outstanding class or series of our shares carrying full voting rights. Holders of Series B Preferred

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

dividends for six quarterly dividend periods (whether or not consecutive) payable on our Series B Preferred

Shares are in arrears and certain other limited protective voting rights.

Our ability to pay dividends on and to redeem our Series B Preferred Shares is limited by the

requirements of Marshall Islands law.

Marshall Islands law provides that we may pay dividends on and redeem the Series B Preferred Shares

only to the extent that assets are legally available for such purposes. Legally available assets generally are

limited to our surplus, which essentially represents our retained earnings and the excess of consideration

received by us for the sale of shares above the par value of the shares. In addition, under Marshall Islands

law we may not pay dividends on or redeem Series B Preferred Shares if we are insolvent or would be

rendered insolvent by the payment of such a dividend or the making of such redemption.

44

The amount of your liquidation preference is fixed and you will have no right to receive any greater

payment regardless of the circumstances.

The payment due upon a liquidation is fixed at the redemption preference of $25.00 per share plus

accumulated and unpaid dividends to the date of liquidation. If, in the case of our liquidation, there are

remaining assets to be distributed after payment of this amount, you will have no right to receive or to

participate in these amounts. Furthermore, if the market price for your Series B Preferred Shares is greater

than the liquidation preference, you will have no right to receive the market price from us upon our

liquidation.

Item 4. Information on the Company

A. History and development of 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. Our executive

offices are located at Pendelis 16, 175 64 Palaio Faliro, Athens, Greece. Our telephone number at this

address is +30-210-947-0100. Our agent and authorized representative in the United States is our wholly-

owned subsidiary, Bulk Carriers (USA) LLC, established in September 2006, in the State of Delaware,

which is located at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. The SEC maintains an

Internet site that contains reports, proxy and information statements, and other information regarding

issuers that file electronically with the SEC. The address of the SEC's Internet site is http://www.sec.gov.

The address of the Company's Internet site is http://www.dianashippinginc.com.

Vessel acquisitions

In February 2022, we took delivery of Leonidas P.C. (ex Magnolia), a 2011 built Kamsarmax dry bulk vessel

of 82,165 dwt, which we agreed to acquire from an unaffiliated third party in July 2021, for a purchase price

of $22.0 million. 

In March 2022, we also took delivery of Florida, a Japanese new-building Capesize dry bulk vessel of

approximately 181,500 dwt, which we agreed to acquire from an unaffiliated third party in December 2020,

for a purchase price of $60.2 million including commissions. 

In August 2022, we entered into a master agreement with Sea Trade Holdings Inc. (or “Sea Trade”), an

unaffiliated third party, to acquire nine Ultramax vessels for an aggregate purchase price of $330 million,

of which $220 million would be paid in cash and $110 million through an aggregate of 18,487,393 newly

issued common shares of the Company, issuable on the delivery of each vessel. In addition to the master

agreement, in August 2022, we also entered into nine separate memoranda of agreement for the

acquisition of each vessel and issued nine warrants to Sea Trade, for the issuance of the shares,

exercisable on the delivery date of each vessel. During the fourth quarter of 2022, the Company took

delivery of eight vessels for an aggregate value of $263.7 million, of which $67.9 million was the value of

the newly issued common shares. On January 30, 2023, we took delivery of the ninth vessel for $24.2

million in cash, funded through our loan with Nordea, and issued 2,033,613 common shares to Sea Trade

of $7.8 million value.

In February 2023, we signed a Memorandum of Agreement to acquire from an unaffiliated third party the

vessel

 Nord Potomac

, a 2016 built Ultramax dry bulk vessel, for a purchase price of $27.9 million, which

we intend to finance through debt financing. We expect to take delivery of the vessel by the beginning of

April 2023.

45

Vessel disposals

In June 2022, we sold to OceanPal Inc., or OceanPal, a related party company, the vessel

Baltimore

, for

a sale price of $22.0 million before commissions, of which $4.4 million was paid in cash and $17.6 million

through 25,000 Series D Convertible Preferred shares. The vessel was delivered to OceanPal on

September 20, 2022.

In January 2023, we sold to an unrelated third party the vessel

Aliki

 for the purchase price of $15.08 million.

The vessel was delivered to her new owners on February 8, 2023. 

In February 2023, we sold to OceanPal, the vessel

Melia

 for the purchase price of $14.0 million, of which

$4.0 million was paid in cash and $10.0 million through 13,157 of OceanPal Series D Convertible Preferred

Shares. The vessel was delivered to her new owners on February 8, 2023.

Please read Note 4 – Advances for vessel acquisitions and Vessels, net to our consolidated financial

statements, included elsewhere in this Annual Report for a full description of the Company’s acquisitions

and sales of vessels as of December 31, 2022.

Sale and leaseback agreements

In March 2022, we sold Florida to an unrelated third party for $50.0 million in a sale and leaseback

transaction and we chartered the vessel back from the buyer for a period of ten years at $13,500 per day.

The Company has purchase options beginning at the end of the third year of the agreement. If not

repurchased earlier, the Company has the obligation to repurchase the vessel for $16.4 million, on the

expiration of the lease on the tenth year.

In August, 2022, we entered into two sale and leaseback agreements with two unaffiliated Japanese third

parties to sell

New Orleans

 and

Santa Barbara,

for an aggregate amount of $66.4 million. 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 eight years, each, and

has purchase options beginning at the end of the third year of each vessel's bareboat charter period. If not

repurchased earlier, the Company has the obligation to repurchase the vessels for $13 million each, on

the expiration of each lease on the eighth year. 

On December 6, 2022, we sold

DSI Andromeda

 to an unrelated third party for $29.9 million and leased

back the vessel under a bareboat agreement, for a period of ten years, under which the Company pays

hire, monthly in advance. The Company has purchase options beginning at the end of the third year of the

bareboat charter period and if not repurchased earlier, the Company has the obligation to repurchase the

vessel for $8.05 million, on the expiration of the lease on the tenth year.

Dividends

During 2022, we paid total dividends of $0.9 per share, or $79.8 million. More specifically, on March 21,

2022, we paid a cash dividend on our common stock amounting to $17.2 million, or $0.20 per share, to all

shareholders of record as of March 9, 2022.

On June 17, 2022, we paid a cash dividend on our common stock amounting to $21.6 million, or $0.25 per

share, to all shareholders of record as of June 6, 2022.

On August 19, 2022, we paid a cash dividend on our common stock amounting to $23.7 million, or $0.275

per share, to all shareholders of record as of August 8, 2022.

On December 15, 2022, we paid a cash dividend on our common stock amounting to $17.3 million, or

46

$0.175 per share, to all shareholders of record as of November 28, 2022. 

In addition to the cash dividends, on December 15, 2022, we distributed 25,000 Series D Convertible

Preferred Shares of OceanPal, acquired as part of the non-cash consideration for the sale of

Baltimore

described above, as a non-cash dividend amounting to $18.2 million to our shareholders of record as of

November 28, 2022. 

On March 20, 2023, we paid a cash dividend on our common stock amounting to $16 million, or $0.15 per

share, to all shareholders of record as of March 13, 2023. We have also declared the distribution to our

shareholders of record as of April 24, 2023 of the 13,157 Series D Convertible Preferred Shares of

OceanPal acquired as part of the non-cash consideration of the sale of

Melia

 described above.

Please read Note 9 – Capital Stock and Changes in Capital Accounts to our consolidated financial

statements, included elsewhere in this Annual Report for a full description of the Company’s dividends

distribution as of December 31, 2022.

Loans

On September 30, 2022, the Company entered into a $200 million loan agreement to finance the acquisition

price of 9 Ultramax vessels. The Company drew down $197.2 million under the loan, in tranches for each

vessel on their delivery to the Company. 

During 2022, we early prepaid an aggregate amount of $57.5 million of outstanding debt due to the sale of

Baltimore

to OceanPal, and

DSI Andromeda

,

Santa Barbara

 and

New Orleans

, following their sale under

a sale and leaseback.

In February 2023, we early prepaid an additional amount of $8.1 million of outstanding debt due to the sale

of

Melia

to OceanPal and

Alik

i to an unaffiliated third party. In March 2023, we early prepaid $11.8 million,

being the outstanding balance of our loan with DNB Bank ASA.

Please read Note 6 – Long-term debt to our consolidated financial statements, included elsewhere in this

Annual Report for a full description of the Company’s loan facilities as of December 31, 2022.

B. Business overview

We specialize in the ownership and bareboat charter-in of dry bulk vessels, determined as one business

segment. Each of our vessels is owned through a separate wholly-owned subsidiary. 

As of the date of this report, our fleet, owned and chartered-in, consisted of 41 dry bulk carriers, of which

nine were Ultramax, seven were Panamax, six were Kamsarmax, five were Post-Panamax, ten were

Capesize and four were Newcastlemax vessels, having a combined carrying capacity of approximately 4.7

million dwt and a weighted average age of 9.9 years. We have also agreed to acquire the vessel

Nord

Potomac

, a 2016 built Ultramax dry bulk vessel, expected to be delivered by the beginning of April 2023.

As of December 31, 2022, our operating fleet consisted of 42 dry bulk carriers, of which eight were

Ultramax, eight were Panamax, six were Kamsarmax, five were Post-Panamax, eleven were Capesize and

four were Newcastlemax vessels, having a combined carrying capacity of approximately 4.9 million dwt

and a weighted average age of 10.2 years. As of December 31, 2022, the Company had agreed to acquire

a 2016 built Ultramax dry bulk vessel of 60,309 dwt, delivered on January 30, 2023. 

As of December 31, 2021, our operating fleet consisted of 33 dry bulk carriers, of which eight were

Panamax, five were Kamsarmax, five were Post-Panamax, eleven were Capesize and four were

Newcastlemax vessels, having a combined carrying capacity of approximately 4.3 million dwt and a

47

weighted average age of 10.4 years. As of December 31, 2021, the Company had agreed to acquire a

2011 built Kamsarmax dry bulk vessel of 82,165 dwt, delivered on February 16, 2022 and a Capesize dry

bulk vessel of 181,500 dwt, which was sold and leased back under a bare boat charter on March 29, 2022.

As of December 31, 2020, our operating fleet consisted of 40 dry bulk carriers, of which 13 were Panamax,

five were Kamsarmax, five were Post-Panamax, 13 were Capesize and four were Newcastlemax vessels,

having a combined carrying capacity of approximately 5.0 million dwt and a weighted average age of 10.2

years. As of December 31, 2020, the Company had agreed to sell the vessels Coronis, Sideris G.S. and

Oceanis, of which Coronis and Sideris GS were delivered to their buyers in January 2021 and Oceanis

was delivered in March 2021.

During 2022, 2021 and 2020, we had a fleet utilization of 98.9%, 99.1% and 97.9%, respectively, our

vessels achieved daily time charter equivalent rates of $22,735, $15,759 and $10,910, respectively, and

we generated revenues of $290.0 million, $214.2 million and $169.7 million, respectively.

We operate our vessels worldwide, in markets that have historically exhibited seasonal variations in

demand and, as a result, in charter hire rates. The dry bulk carrier market is typically stronger in the fall

and winter months in anticipation of increased consumption of coal and other raw materials in the northern

hemisphere during the winter months. In addition, unpredictable weather patterns in these months tend to

disrupt vessel scheduling and supplies of certain commodities. This seasonality has a limited direct impact

on our operating results as we charter our vessels to customers pursuant to medium-term and long-term

time charter agreements.

Management of Our Fleet

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. In exchange

for providing us with commercial and technical services, personnel and office space, we pay DSS a

commission, which is a percentage of the managed vessels’ gross revenues, a fixed monthly fee per

managed vessel and an additional monthly fee for the administrative services provided to Diana Shipping

Inc. Such services may include budgeting, reporting, monitoring of bank accounts, compliance with banks,

payroll services and any other possible service that Diana Shipping Inc. would require to perform its

operations. Similarly, in exchange for providing us with commercial and technical services, we pay to DWM

a commission which is a percentage of the managed vessels’ gross revenues and a fixed management

monthly fee for each managed vessel. The amounts deriving from the agreements with DSS are considered

inter-company transactions and, therefore, are eliminated from our consolidated financial statements. The

management fees and commissions deriving from the agreements with DWM are included in our statement

of operations in “Management fees to related party”, “Voyage Expenses”, “Advances for vessel

acquisitions” and “Vessels, net”.

Steamship Shipbroking Enterprises Inc., or Steamship, a related party controlled by our Chairman of the

Board, Mr. Simeon Palios until January 15, 2023 and our CEO Mrs. Semiramis Paliou thereafter, provides

brokerage services to us, since June 1, 2010. Brokerage fees are included in “General and Administrative

expenses” in our statement of operations. The terms of this relationship are currently governed by a

Brokerage Services Agreement dated July 1, 2022.

The following table presents certain information concerning the dry bulk carriers in our fleet, as of the date

of this annual report.

Fleet Employment (As of March 17, 2023)

48

VESSEL

SISTER

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

 13,250 

5.00%

ASL Bulk Marine

Limited

4/Nov/22

4/Mar/2024 - 4/May/2024

2017 60,456

2

DSI Pollux

A

 17,000 

5.00%

Delta Corp Shipping

Pte. Ltd.

27/Oct/22

27/Dec/2023 - 27/Feb/2024

2015 60,446

3

DSI Pyxis

A

 17,100 

4.75%

Cargill Ocean

Transportation

Singapore Pte. Ltd.

16/Oct/22

16/Aug/2023 - 16/Oct/2023

2018 60,362

4

DSI Polaris

A

 13,100 

5.00%

ASL Bulk Marine

Limited

12/Nov/22

12/May/2024 - 12/Jul/2024

2018 60,404

5

DSI Pegasus

A

 14,000 

5.00%

Reachy Shipping

(SGP) Pte. Ltd.

7/Dec/22

15/Jul/2024 - 15/Sep/2024

2015 60,508

6

DSI Aquarius

B

 14,200 

5.00%

Engelhart CTP Freight

(Switzerland) SA

1/Feb/23

10/Jan/2024 - 25/Mar/2024

2016 60,309

7

DSI Aquila

B

 13,300 

5.00%

Western Bulk Carriers

AS

22/Nov/22

15/Sep/2023 - 15/Nov/2023

2015 60,309

8

DSI Altair

B

 14,400 

5.00%

Western Bulk Pte. Ltd.

28/Dec/22

25/Jun/2023 - 25/Aug/2023

2016 60,309

9

DSI Andromeda

B

 14,250 

5.00%

Western Bulk Carriers

AS

17/Nov/22

16/Oct/2023 - 16/Dec/2023

1, 2

2016 60,309

10

Nord Potomac (tbr.

DSI Drammen)

-

-

-

-

-

3

2016 63,379

8 Panamax Bulk Carriers

11

MELIA

 11,000 

5.00%

Asahi Shipping Co.,

Ltd.

10/Dec/22

04/Feb/2023

4

2005 76,225

12

ARTEMIS

 21,250 

4.75%

Cargill International

S.A., Geneva

21/Mar/22

20/Jun/2023 -20/Aug/2023

2006 76,942

13

LETO

 25,500 

4.75%

Aquavita International

S.A.

3/Oct/21

29/Jan/2023

5

2010 81,297

 14,500 

4.75%

Cargill International

S.A., Geneva

29/Jan/23

1/Mar/2024 - 30/Apr/2024

14

SELINA

C

 22,000 

5.00%

Speed Logistics

Marine Limited

18/Jun/22

15/Apr/2023 - 30/Apr/2023

6

2010 75,700

15

MAERA

C

 12,000 

4.75%

Cargill International

S.A., Geneva

16/Dec/22

28/Oct/2023 - 28/Dec/2023

2013 75,403

16

ISMENE

 18,500 

4.75%

Cargill International

S.A., Geneva

23/Nov/21

10/Jan/2023

2013 77,901

 14,000 

5.00%

ST Shipping and

Transport Pte. Ltd.

10/Jan/23

20/Aug/2023 - 10/Oct/2023

17

CRYSTALIA

D

 12,500 

5.00%

Reachy Shipping

(SGP) Pte. Ltd.

12/Nov/22

1/Sep/2023 - 15/Oct/2023

2014 77,525

18

ATALANDI

D

 24,500 

4.75%

Aquavita International

S.A.

5/Oct/21

15/Feb/2023

2014 77,529

 13,250 

4.75%

15/Feb/23

5/Mar/2024 - 5/May/2024

6 Kamsarmax Bulk Carriers

19

MAIA

E

 25,000 

5.00%

Hyundai Glovis Co.

Ltd.

24/May/22

20/Sep/2023 -20/Nov/2023

7

49

2009 82,193

20

MYRSINI

E

 15,000 

5.00%

Salanc Pte. Ltd.

22/Nov/22

20/Apr/2024 - 28/Jun/2024

2010 82,117

21

MEDUSA

E

 26,000 

4.75%

Cargill International

S.A., Geneva

9/Mar/22

15/May/2023 - 15/Jul/2023

2010 82,194

22

MYRTO

E

 18,000 

5.00%

Tata NYK Shipping

Pte. Ltd.

3/Aug/22

15/Jul/2023 - 15/Sep/2023

8

2013 82,131

23

ASTARTE

 21,500 

5.00%

Tongli Shipping Pte.

Ltd.

30/Jan/22

15/Apr/2023 - 15/Jun/2023

2013 81,513

24

LEONIDAS P. C.

 24,500 

4.75%

Cargill International

S.A., Geneva

18/Feb/22

28/Feb/2023

9

2011 82,165

 17,000 

4.75%

17/Mar/23

17 Feb 2024 - 17 Apr 2024

5 Post-Panamax Bulk Carriers

25

ALCMENE

 17,100 

5.00%

SwissMarine Pte. Ltd.,

Singapore

25/Nov/21

02/Jan/2023

2010 93,193

 13,000 

5.00%

2/Jan/23

10/Jan/2024 - 25/Mar/2024

26

AMPHITRITE

F

 14,250 

5.00%

Cobelfret S.A.

9/Nov/22

1/Dec/2023 - 15/Feb/2024

2012 98,697

27

POLYMNIA

F

 24,750 

5.00%

CLdN Cobelfret SA,

Luxembourg

4/Feb/22

14/Jan/2023

10

2012 98,704

 15,000 

5.00%

14/Jan/23

1/Apr/2024 - 31/May/2024

28

ELECTRA

G

 17,500 

5.00%

Refined Success

Limited

2/Jul/22

1/Apr/2023 - 15/May/2023

6

2013 87,150

29

PHAIDRA

G

 25,000 

5.00%

Comerge Shipping

Co., Limited

24/Nov/22

04/Mar/2023

11,12

2013 87,146

 10,000 

5.00%

Salanc Pte. Ltd.

4/Mar/23

17/Apr/2023

13

11 Capesize Bulk Carriers

30

ALIKI

 24,500 

5.00%

Koch Shipping Pte.

Ltd., Singapore

21/Feb/22

02/Feb/2023

4

2005 180,235

31

SEMIRIO

H

 19,700 

5.00%

C Transport Maritime

Ltd., Bermuda

15/Dec/21

15/Aug/2023 - 15/Nov/2023

2007 174,261

32

BOSTON

H

 20,500 

5.00%

Aquavita International

S.A.

15/Jul/22

1/Apr/2023 - 31/May/2023

2007 177,828

33

HOUSTON

H

 13,000 

5.00%

EGPN Bulk Carrier

Co., Limited

21/Nov/22

1/Jul/2024 - 31/Aug/2024

2009 177,729

34

NEW YORK

H

 23,000 

5.00%

C Transport Maritime

Ltd., Bermuda

2/Jul/22

10/Jun/2023 - 25/Aug/2023

2010 177,773

35

SEATTLE

I

 26,500 

5.00%

Solebay Shipping

Cape Company

Limited, Hong Kong

2/Mar/22

1/Oct/2023 - 15/Dec/2023

2011 179,362

36

P. S. PALIOS

I

 31,000 

5.00%

Classic Maritime Inc.

11/Jun/22

15/Apr/2024 - 30/Jun/2024

2013 179,134

37

G. P. ZAFIRAKIS

J

 22,750 

4.75%

Cargill International

S.A., Geneva

1/Dec/21

12/Jan/2023

14

2014 179,492

 17,000 

5.00%

Solebay Shipping

Cape Company

Limited, Hong Kong

12/Jan/23

15/Jun/2024 - 15/Aug/2024

38

SANTA BARBARA

J

 29,500 

4.75%

Cargill International

S.A., Geneva

19/Mar/22

10/May/2023 - 10/Jul/2023

15

2015 179,426

39

NEW ORLEANS

 32,000 

5.00%

Engelhart CTP Freight

(Switzerland) SA

25/Mar/22

20/Nov/2023 - 31/Jan/2024

15

2015 180,960

50

40

FLORIDA

 25,900 

5.00%

Bunge S.A., Geneva

29/Mar/22

29/Jan/2027 - 29/May/2027

2

2022 182,063

4 Newcastlemax Bulk Carriers

41

LOS ANGELES

K

 26,250 

5.00%

Koch Shipping Pte.

Ltd., Singapore

30/Jan/22

15/Jan/2023

2012 206,104

 17,700 

5.00%

Nippon Yusen

Kabushiki Kaisha,

Tokyo

15/Jan/23

20/May/2024 - 5/Aug/2024

42

PHILADELPHIA

K

 26,000 

5.00%

C Transport Maritime

Ltd., Bermuda

12/Apr/22

1/Feb/2024 - 15/Apr/2024

2012 206,040

43

SAN FRANCISCO

L

 30,500 

5.00%

Koch Shipping Pte.

Ltd., Singapore

18/Feb/22

18/Feb/2023

16

2017 208,006

 22,000 

5.00%

SwissMarine Pte. Ltd.,

Singapore

18/Feb/23

5/Jan/2025 - 5/Mar/2025

44

NEWPORT NEWS

L

 28,000 

5.00%

Koch Shipping Pte.

Ltd., Singapore

16/Dec/21

1/Jul/2023 - 30/Sep/2023

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.

1The fixture includes the option for redelivery of vessel east of Suez against a gross ballast bonus of US$250,000.

2Bareboat chartered-in for a period of ten years.

3The Company expects to take delivery of the vessel by the beginning of April 2023.

4Vessel sold and delivered to her new Owners on February 8, 2023.

5Aquavita International S.A. has agreed to compensate the owners for the early redelivery of the vessel until the minimum agreed

redelivery date, February 1, 2023.

6Based on latest information.

7Vessel off hire for 3.93 days.

8Vessel on scheduled drydocking from October 12, 2022 to November 7, 2022.

9Vessel on scheduled drydocking from February 28, 2023 to March 17, 2023.

10The charter rate was US$10,000 per day for the first 30 days of the charter period.

11Redelivery date based on an estimated time charter trip duration of about 95 days.

12Charter includes a one time ballast bonus payment of US$300,000.

13Redelivery date based on an estimated time charter trip duration of about 45 days. In the event that the trip duration exceeds fifty

(50) days, the gross charter rate will be US$13,000 per day, minus a 5% commission paid to third parties, for each additional day.

14The Charterers will compensate the Owners for the excess of the charter party period at the rate of 123% of the average of the

Baltic Cape Index 5TC average for the days exceeding the period or the vessel’s present charter party rate whichever is higher.

15Bareboat chartered-in for a period of eight years.

16Koch Shipping Pte. Ltd. has agreed to compensate the owners for the early redelivery of the vessel by paying the difference

between the new rate and the previous rate, from the redelivery date from the Charterers, to March 1, 2023.

Our Customers

Our customers include regional and international companies, such as Cargill International S.A., Glencore

Grain B.V., Koch Shipping Pte Ltd and Swissmarine Services S.A. During 2022, two of our charterers

accounted for 34% of our revenues: Cargill (19%) and Koch (15%). During 2021, one of our charterers

51

accounted for 10% of our revenues: Cargill (10%). During 2020, two of our charterers accounted for 34%

of our revenues: Cargill (18%), Koch (16%).

We charter our dry bulk carriers, owned and bareboat chartered-in, to customers pursuant to 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 canal and port charges. We remain responsible for

paying the chartered vessel's operating expenses, including the cost of crewing, insuring, repairing and

maintaining the vessel. In 2022, we paid commissions that ranged from 4.75% to 5.0% of the total daily

charter hire rate of each charter to unaffiliated ship brokers and to in-house brokers associated with the

charterer, depending on the number of brokers involved with arranging the charter.

We strategically monitor developments in the dry bulk shipping industry on a regular basis and, subject to

market demand, seek to adjust the charter hire periods for our vessels according to prevailing market

conditions. In order to take advantage of relatively stable cash flow and high utilization rates, we fix some

of our vessels on long-term time charters. Currently, the majority of our vessels are employed on short to

medium-term time charters, which provides us with flexibility in responding to market developments. We

continuously evaluate our balance of short- and long-term charters and extend or reduce the charter hire

periods of the vessels in our fleet according to the developments in the dry bulk shipping industry.

Charter Hire Rates

Charter hire rates fluctuate by varying degrees among dry bulk carrier size categories. The volume and

pattern of trade in a small number of commodities (major bulks) affect demand for larger vessels. Therefore,

charter rates and vessel values of larger vessels often show greater volatility. Conversely, trade in a greater

number of commodities (minor bulks) drives demand for smaller dry bulk carriers. Accordingly, charter

rates and vessel values for those vessels are usually subject to less volatility.

Charter hire rates paid for dry bulk carriers are primarily a function of the underlying balance between

vessel supply and demand, although at times other factors may play a role. Furthermore, the pattern seen

in charter rates is broadly mirrored across the different charter types and the different dry bulk carrier

categories. In the time charter market, rates vary depending on the length of the charter period and vessel-

specific factors such as age, speed and fuel consumption.

In the voyage charter market, rates are, among other things, influenced by cargo size, commodity, port

dues and canal transit fees, as well as commencement and termination regions. In general, a larger cargo

size is quoted at a lower rate per ton than a smaller cargo size. Routes with costly ports or canals generally

command higher rates than routes with low port dues and no canals to transit. Voyages with a load port

within a region that includes ports where vessels usually discharge cargo or a discharge port within a region

with ports where vessels load cargo also are generally quoted at lower rates, because such voyages

generally increase vessel utilization by reducing the unloaded portion (or ballast leg) that is included in the

calculation of the return charter to a loading area.

Within the dry bulk shipping industry, the charter hire rate references, most likely to be monitored, are the

freight rate indices issued by the Baltic Exchange. These references are based on actual charter hire rates

under charters entered into by market participants as well as daily assessments provided to the Baltic

Exchange by a panel of major shipbrokers. The Baltic Panamax Index is the index with the longest history.

The Baltic Capesize Index and Baltic Handymax Index are of more recent origin. 

The Baltic Dry Index, or BDI, a daily average of charter rates in 20 shipping routes measured on a time

charter and voyage basis and covering Capesize, Panamax, Supramax, and Handysize dry bulk carriers

ranged from a low of 393 in May 2020 to a high of 2,097 in October. In 2021, the BDI ranged from a low of

1,303 in February to a high of 5,650 in October. In 2022, the BDI ranged from a high of 3369 on May 23,

52

2022 to a low of 965 on August 31, 2022 to drop again to a low of 530 on February 16, 2023. The BDI has

since recovered from the February 2023 levels and closed at 1484 on March 23, 2023.

The Dry Bulk Shipping Industry

The global dry bulk carrier fleet could be divided into seven categories based on a vessel's carrying

capacity. These categories consist of:

●

Very Large Ore Carriers

. Very large ore carriers, or VLOCs, have a carrying capacity of more

than 200,000 dwt and are a comparatively new sector of the dry bulk carrier fleet. VLOCs are built

to exploit economies of scale on long-haul iron ore routes. 

●

Capesize

. Capesize vessels have a carrying capacity of 110,000 -199,999 dwt. Only the largest

ports around the world possess the infrastructure to accommodate vessels of this size. Capesize

vessels are primarily used to transport iron ore or coal and, to a much lesser extent, grains, primarily

on long-haul routes. 

●

Post-Panamax

. Post-Panamax vessels have a carrying capacity of 80,000-109,999 dwt. These

vessels tend to have a shallower draft and larger beam than a standard Panamax vessel with a

higher cargo capacity. These vessels have been designed specifically for loading high cubic

cargoes from draught restricted ports, although they cannot transit the Panama Canal. 

●

Panamax

. Panamax vessels have a carrying capacity of 60,000-79,999 dwt. These vessels carry

coal, iron ore, grains, and, to a lesser extent, minor bulks, including steel products, cement and

fertilizers. Panamax vessels are able to pass through the Panama Canal, making them more

versatile than larger vessels with regard to accessing different trade routes. Most Panamax and

Post-Panamax vessels are “gearless,” and therefore must be served by shore-based cargo

handling equipment. However, there are a small number of geared vessels with onboard cranes, a

feature that enhances trading flexibility and enables operation in ports which have poor

infrastructure in terms of loading and unloading facilities.

●

Ultramax

 Ultramax is the largest class before Panamax and is the newer form of the smaller

Supramax with a maximum length of 200 meters and capacity that ranges from 60,000 dwt and

66,000 dwt. This class is considered an upgrade to Supramax class as it offers a better all-around

investment for Charterers and Shipowners due to its higher cargo carrying capacity and better

bunker efficiency. Ultramax class bulk carriers have 5 cargo holds. are fitted with 4 cranes and

usually are equipped with grabs allowing them to call more ports with no such facilities giving them

more versatility.

●

Handymax/Supramax

. Handymax vessels have a carrying capacity of 40,000-59,999 dwt. These

vessels operate in a large number of geographically dispersed global trade routes, carrying

primarily grains and minor bulks. Within the Handymax category there is also a sub-sector known

as Supramax. Supramax bulk carriers are ships between 50,000 to 59,999 dwt, normally offering

cargo loading and unloading flexibility with on-board cranes, or “gear,” while at the same time

possessing the cargo carrying capability approaching conventional Panamax bulk carriers. 

●

Handysize

.

 Handysize vessels have a carrying capacity of up to 39,999 dwt. These vessels are

primarily involved in carrying minor bulk cargoes. Increasingly, ships of this type operate within

regional trading routes, and may serve as trans-shipment feeders for larger vessels. Handysize

vessels are well suited for small ports with length and draft restrictions. Their cargo gear enables

them to service ports lacking the infrastructure for cargo loading and unloading.

53

Other size categories occur in regional trade, such as Kamsarmax, with a maximum length of 229 meters,

the maximum length that can load in the port of Kamsar in the Republic of Guinea. Other terms such as

Seawaymax, Setouchmax, Dunkirkmax, and Newcastlemax also appear in regional trade.

The supply of dry bulk carriers is dependent on the delivery of new vessels and the removal of vessels

from the global fleet, either through scrapping or loss. The level of scrapping activity is generally a function

of scrapping prices in relation to current and prospective charter market conditions, as well as operating,

repair and survey costs. The average age at which a vessel is scrapped was 29 years in 2022, 28 years

in 2021, and 27 years in 2020.

The demand for dry bulk carrier capacity is determined by the underlying demand for commodities

transported in dry bulk carriers, which in turn is influenced by trends in the global economy. Demand for

dry bulk carrier capacity is also affected by the operating efficiency of the global fleet, along with port

congestion, which has been a feature of the market since 2004, absorbing tonnage and therefore leading

to a tighter balance between supply and demand. In evaluating demand factors for dry bulk carrier capacity,

the Company believes that dry bulk carriers can be the most versatile element of the global shipping fleets

in terms of employment alternatives. 

Vessel Prices 

Dry bulk vessel values in 2022 generally were lower as compared to 2021. Consistent with these trends

were the market values of our dry bulk carriers. As charter rates and vessel values partially decreased

during 2022, there can be no assurance as to how long charter rates and vessel values will remain at their

current levels or whether they will decrease or improve to any significant degree in the near future.

Competition 

Our business fluctuates in line with the main patterns of trade of the major dry bulk cargoes and varies

according to changes in the supply and demand for these items. We operate in markets that are highly

competitive and based primarily on supply and demand. We compete for charters on the basis of price,

vessel location, size, age and condition of the vessel, as well as on our reputation as an owner and

operator. We compete with other owners of dry bulk carriers in the Panamax, Post-Panamax and smaller

class sectors and with owners of Capesize and Newcastlemax dry bulk carriers. Ownership of dry bulk

carriers is highly fragmented.

We believe that we possess a number of strengths that provide us with a competitive advantage in the dry

bulk shipping industry:

●

We own a modern, high quality fleet of dry bulk carriers

. We believe that owning a modern, high

quality fleet reduces operating costs, improves safety and provides us with a competitive advantage

in securing favorable time charters. We maintain the quality of our vessels by carrying out regular

inspections, both while in port and at sea, and adopting a comprehensive maintenance program for

each vessel.

●

Our fleet includes groups of sister ships.

 We believe that maintaining a fleet that includes sister

ships enhances the revenue generating potential of our fleet by providing us with operational and

scheduling flexibility. The uniform nature of sister ships also improves our operating efficiency by

allowing our fleet managers to apply the technical knowledge of one vessel to all vessels of the

same series and create economies of scale that enable us to realize cost savings when maintaining,

supplying and crewing our vessels.

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●

We have an experienced management team. 

Our management team consists of experienced

executives who have, on average, more than 30 years of operating experience in the shipping

industry and has demonstrated ability in managing the commercial, technical and financial areas of

our business.

●

We benefit from the experience and reputation of Diana Shipping Services S.A. and the relationship

with Wilhelmsen Ship Management through the Diana Wilhelmsen Management Limited joint

venture.

●

We benefit from strong relationships with members of the shipping and financial industries.

 We

have developed strong relationships with major international charterers, shipbuilders and financial

institutions that we believe are the result of the quality of our operations, the strength of our

management team and our reputation for dependability.

●

We have a strong balance sheet and a relatively low level of indebtedness.

 We believe that our

strong balance sheet and relatively low level of indebtedness provide us with the flexibility to

increase the amount of funds that we may draw under our loan facilities in connection with any

future acquisitions or otherwise and enable us to use cash flow that would otherwise be dedicated

to debt service for other purposes. 

Permits and Authorizations

We are required by various governmental and quasi-governmental agencies to obtain certain permits,

licenses and certificates with respect to our vessels. The kinds of permits, licenses and certificates required

depend upon several factors, including the commodity transported, the waters in which the vessel operates

the nationality of the vessel's crew and the age of a vessel. We have been able to obtain all permits,

licenses and certificates currently required to permit our vessels to operate. Additional laws and regulations,

environmental or otherwise, may be adopted which could limit our ability to do business or increase the

cost of us doing business.

Disclosure Pursuant to Section 219 of the Iran Threat Reduction and Syrian Human Rights

Act

Section 219 of the U.S. Iran Threat Reduction and Syria Human Rights Act of 2012, or the ITRA, added

new Section 13(r) to the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, requiring

each SEC reporting issuer to disclose in its annual and, if applicable, quarterly reports whether it or any of

its affiliates have knowingly engaged in certain activities, transactions or dealings relating to Iran or with

the Government of Iran or certain designated natural persons or entities involved in terrorism or the

proliferation of weapons of mass destruction during the period covered by the report. 

Pursuant to Section 13(r) of the Exchange Act, we note that none of our vessels made port calls to Iran in

2022 and to the date of this annual report. 

Environmental and Other Regulations in the Shipping Industry

Government regulation and laws significantly affect the ownership and operation of our fleet. We are

subject to international conventions and treaties, national, state and local laws and regulations in force in

the countries in which our vessels may operate or are registered relating to safety and health and

environmental protection including the storage, handling, emission, transportation and discharge of

hazardous and non-hazardous materials, and the remediation of contamination and liability for damage to

natural resources. Compliance with such laws, regulations and other requirements entails significant

expense, including vessel modifications and implementation of certain operating procedures.

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A variety of government and private entities subject our vessels to both scheduled and unscheduled

inspections. These entities include the local port authorities (applicable national authorities such as the

United States Coast Guard (“USCG”), harbor master or equivalent), classification societies, flag state

administrations (countries of registry) and charterers, particularly terminal operators. Certain of these

entities require us to obtain permits, licenses, certificates and other authorizations for the operation of our

vessels. Failure to maintain necessary permits or approvals could require us to incur substantial costs or

result in the temporary suspension of the operation of one or more of our vessels.

Increasing environmental concerns have created a demand for vessels that conform to stricter

environmental standards. We are required to maintain operating standards for all of our vessels that

emphasize operational safety, quality maintenance, continuous training of our officers and crews and

compliance with United States and international regulations. We believe that the operation of our vessels

is in substantial compliance with applicable environmental laws and regulations and that our vessels have

all material permits, licenses, certificates or other authorizations necessary for the conduct of our

operations. However, because such laws and regulations frequently change and may impose increasingly

stricter requirements, we cannot predict the ultimate cost of complying with these requirements, or the

impact of these requirements on the resale value or useful lives of our vessels. In addition, a future serious

marine incident that causes significant adverse environmental impact could result in additional legislation

or regulation that could negatively affect our profitability.

International Maritime Organization

The International Maritime Organization, the United Nations agency for maritime safety and the prevention

of pollution by vessels (the “IMO”), has adopted the International Convention for the Prevention of Pollution

from Ships, 1973, as modified by the Protocol of 1978 relating thereto, collectively referred to as MARPOL

73/78 and herein as “MARPOL,” the International Convention for the Safety of Life at Sea of 1974 (“SOLAS

Convention”), and the International Convention on Load Lines of 1966 (the “LL Convention”). MARPOL

establishes environmental standards relating to oil leakage or spilling, garbage management, sewage, air

emissions, handling and disposal of noxious liquids and the handling of harmful substances in packaged

forms. MARPOL is applicable to drybulk, tanker and LNG carriers, among other vessels, and is broken

into six Annexes, each of which regulates a different source of pollution. Annex I prevention of pollution by

Oil; Annexes II and III relate to harmful substances carried in bulk in liquid or in packaged form, respectively;

Annexes IV and V relate to sewage and garbage management, respectively; and Annex VI, lastly, relates

to air emissions. Annex VI was separately adopted by the IMO in September of 1997; new emissions

standards, titled IMO-2020, took effect on January 1, 2020.

Air Emissions

In September of 1997, the IMO adopted Annex VI to MARPOL to address air pollution from vessels.

Effective May 2005, Annex VI sets limits on sulfur oxide and nitrogen oxide emissions from all commercial

vessel exhausts and prohibits “deliberate emissions” of ozone depleting substances (such as halons and

chlorofluorocarbons), emissions of volatile compounds from cargo tanks, and the shipboard incineration of

specific substances. Annex VI also includes a global cap on the sulfur content of fuel oil and allows for

special areas to be established with more stringent controls on sulfur emissions, as explained

below. Emissions of “volatile organic compounds” from certain vessels, and the shipboard incineration

(from incinerators installed after January 1, 2000) of certain substances (such as polychlorinated biphenyls,

or “PCBs”) are also prohibited. We believe that all our vessels are currently compliant in all material

respects with these regulations.

The Marine Environment Protection Committee, or “MEPC”, adopted amendments to Annex VI regarding

emissions of sulfur oxide, nitrogen oxide, particulate matter and ozone depleting substances, which entered

into force on July 1, 2010. The amended Annex VI seeks to further reduce air pollution by, among other

things, implementing a progressive reduction of the amount of sulfur contained in any fuel oil used on board

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ships. On October 27, 2016, at its 70th session, the MEPC agreed to implement a global 0.5% m/m sulfur

oxide emissions limit (reduced from 3.50%) starting from January 1, 2020. This limitation can be met by

using low-sulfur compliant fuel oil, alternative fuels, or certain exhaust gas cleaning systems. Ships are

now required to obtain bunker delivery notes and International Air Pollution Prevention (“IAPP”) Certificates

from their flag states that specify sulfur content. Additionally, at MEPC 73, amendments to Annex VI to

prohibit the carriage of bunkers above 0.5% sulfur on ships were adopted and took effect March 1, 2020,

with the exception of vessels fitted with exhaust gas cleaning equipment (“scrubbers”) which can carry fuel

of higher sulfur content. These regulations subject ocean-going vessels to stringent emissions controls

and may cause us to incur substantial costs.

Sulfur content standards are even stricter within certain “Emission Control Areas,” or (“ECAs”). As of

January 1, 2015, ships operating within an ECA were not permitted to use fuel with sulfur content in excess

of 0.1% m/m. Amended Annex VI establishes procedures for designating new ECAs. Currently, the IMO

has designated four ECAs, including specified portions of the Baltic Sea area, North Sea area, North

American area and United States Caribbean area. Ocean-going vessels in these areas will be subject to

stringent emission controls and may cause us to incur additional costs. Other areas in China are subject

to local regulations that impose stricter emission controls. In December 2021, the member states of the

Convention of the Protection of the Mediterranean Sea Against Pollution agreed to support the designation

of a new ECA in the Mediterranean. On December 15, 2022, MEPC 79 adopted the designation of a new

ECA in the Mediterranean, with an effective date of May 1, 2025.If other ECAs are approved by the IMO,

or other new or more stringent requirements relating to emissions from marine diesel engines or port

operations by vessels are adopted by the U.S. Environmental Protection Agency (“EPA”) or the states

where we operate, compliance with these regulations could entail significant capital expenditures or

otherwise increase the costs of our operations.

Amended Annex VI also establishes new tiers of stringent nitrogen oxide emissions standards for marine

diesel engines, depending on their date of installation. At the MEPC meeting held from March to April 2014,

amendments to Annex VI were adopted which address the date on which Tier III Nitrogen Oxide (NOx)

standards in ECAs will go into effect. Under the amendments, Tier III NOx standards apply to ships that

operate in the North American and U.S. Caribbean Sea ECAs designed for the control of NOx produced

by vessels with a marine diesel engine installed and constructed on or after January 1, 2016. Tier III

requirements could apply to areas that will be designated for Tier III NOx in the future. At MEPC 70 and

MEPC 71, the MEPC approved the North Sea and Baltic Sea as ECAs for nitrogen oxide for ships built on

or after January 1, 2021. For the moment, this regulation relates to new building vessels and has no

retroactive application to existing fleet. The EPA promulgated equivalent (and in some senses stricter)

emissions standards in 2010. As a result of these designations or similar future designations, we may be

required to incur additional operating or other costs.

As determined at the MEPC 70, the new Regulation 22A of MARPOL Annex VI became effective as of

March 1, 2018 and requires ships above 5,000 gross tonnage to collect and report annual data on fuel oil

consumption to an IMO database, with the first year of data collection having commenced on January 1,

2019. The IMO intends to use such data as the first step in its roadmap (through 2023) for developing its

strategy to reduce greenhouse gas emissions from ships, as discussed further below.

As of January 1, 2013, MARPOL made mandatory certain measures relating to energy efficiency for ships.

All ships are now required to develop and implement a Ship Energy Efficiency Management

Plans (“SEEMPs”), and new ships must be designed in compliance with minimum energy efficiency levels

per capacity mile as defined by the Energy Efficiency Design Index (“EEDI”). Under these measures, by

2025, all new ships built will be 30% more energy efficient than those built in 2014. Additionally, MEPC 75

adopted amendments to MARPOL Annex VI which brings forward the effective date of the EEDI’s “phase

3” requirements from April 1, 2022 to January 1, 2025 for several ship types, including gas carriers, general

cargo ships, and LNG carriers.

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Additionally, MEPC 75 introduced draft amendments to Annex VI which impose new regulations to reduce

greenhouse gas emissions from ships. These amendments introduce requirements to assess and

measure the energy efficiency of all ships and set the required attainment values, with the goal of reducing

the carbon intensity of international shipping. The requirements include (1) a technical requirement to

reduce carbon intensity based on a new Energy Efficiency Existing Ship Index (“EEXI”), and (2) operational

carbon intensity reduction requirements, based on a new operational carbon intensity indicator (“CII”). The

attained EEXI is required to be calculated for ships of 400 gross tonnage and above, in accordance with

different values set for ship types and categories. With respect to the CII, the draft amendments would

require ships of 5,000 gross tonnage to document and verify their actual annual operational CII achieved

against a determined required annual operational CII. Additionally, MEPC 75 proposed draft amendments

requiring that, on or before January 1, 2023, all ships above 400 gross tonnage must have an approved

SEEMP on board. For ships above 5,000 gross tonnage, the SEEMP would need to include certain

mandatory content. MEPC 75 also approved draft amendments to MARPOL Annex I to prohibit the use

and carriage for use as fuel of heavy fuel oil (“HFO”) by ships in Arctic waters on and after July 1, 2024. 

The draft amendments introduced at MEPC 75 were adopted at the MEPC 76 session on June 2021 and

entered into force on November 1, 2022, with the requirements for EEXI and CII certification coming into

effect from January 1, 2023. MEPC 77 adopted a non-binding resolution which urges Member States and

ship operators to voluntarily use distillate or other cleaner alternative fuels or methods of propulsion that

are safe for ships and could contribute to the reduction of Black Carbon emissions from ships when

operating in or near the Arctic. MEPC 79 adopted amendments to MARPOL Annex VI, Appendix IX to

include the attained and required CII values, the CII rating and attained EEXI for existing ships in the

required information to be submitted to the IMO Ship Fuel Oil Consumption Database. The amendments

will enter into force on May 1, 2024.

We may incur costs to comply with these revised standards. Additional or new conventions, laws and

regulations may be adopted that could require the installation of expensive emission control systems and

could adversely affect our business, results of operations, cash flows and financial condition.

Safety Management System Requirements

The SOLAS Convention was amended to address the safe manning of vessels and emergency training

drills. The Convention of Limitation of Liability for Maritime Claims (the “LLMC”) sets limitations of liability

for a loss of life or personal injury claim or a property claim against ship owners. The ISM

Certification provides validation that both company and ships are operating using a process-based system

approach to manage risks and achieve continual improvement. The ISM code is meant to be a preventive

tool and asks companies to assess all risks and then take measured to safeguard against them.

Responsibilities and authorities are set out for the various entities includes in the ISM process. All of our

vessels as well as our shore-based operations are fully certified under the ISM Code.

Under Chapter IX of the SOLAS Convention, or the International Safety Management Code for the Safe

Operation of Ships and for Pollution Prevention (the “ISM Code”), our operations are also subject to

environmental standards and requirements. The ISM Code requires the party with operational control of a

vessel to develop an extensive safety management system that includes, among other things, the adoption

of a safety and environmental protection policy setting forth instructions and procedures for operating its

vessels safely and describing procedures for responding to emergencies. Through strong leadership and

a disciplined, clearly documented management system, the Company promotes the concept of HSSE

(Health, Safety, Security and Environmental) excellence at all levels in the organisation. This concept is

achieved by consistent measurement and feedback of the Company’s Management System in order to

generate continuous and sustainable improvement in Health, Safety, Security, and Quality and

Environmental (including Energy Efficiency) (HSSQE) management processes. The failure of a vessel

owner or bareboat charterer to comply with the ISM Code may subject such party to increased liability, may

decrease available insurance coverage for the affected vessels and may result in a denial of access to, or

detention in, certain ports.

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The ISM Code requires that vessel operators obtain a safety management certificate for each vessel they

operate. This certificate evidences compliance by a vessel’s management with the ISM Code requirements

for a safety management system. No vessel can obtain a safety management certificate unless its manager

has been awarded a document of compliance, issued by each flag state, under the ISM Code. We have

obtained applicable documents of compliance for our offices and safety management certificates for all of

our vessels for which the certificates are required by the IMO. The documents of compliance and safety

management certificate are renewed as required.

Regulation II-1/3-10 of the SOLAS Convention governs ship construction and stipulates that ships over

150 meters in length must have adequate strength, integrity and stability to minimize risk of loss or pollution.

Goal-based standards amendments in SOLAS regulation II-1/3-10 entered into force in 2012, with July 1,

2016 set for application to new oil tankers and bulk carriers. The SOLAS Convention regulation II-1/3-10

on goal-based ship construction standards for bulk carriers and oil tankers, which entered into force on

January 1, 2012, requires that all oil tankers and bulk carriers of 150 meters in length and above, for which

the building contract is placed on or after July 1, 2016, satisfy applicable structural requirements conforming

to the functional requirements of the International Goal-based Ship Construction Standards for Bulk

Carriers and Oil Tankers (“GBS Standards”).

Amendments to the SOLAS Convention Chapter VII apply to vessels transporting dangerous goods and

require those vessels be in compliance with the International Maritime Dangerous Goods Code (“IMDG

Code”). Effective January 1, 2018, the IMDG Code includes (1) updates to the provisions for radioactive

material, reflecting the latest provisions from the International Atomic Energy Agency, (2) new marking,

packing and classification requirements for dangerous goods, and (3) new mandatory training

requirements. Amendments which took effect on January 1, 2020 also reflect the latest material from the

UN Recommendations on the Transport of Dangerous Goods, including (1) new provisions regarding IMO

type 9 tank, (2) new abbreviations for segregation groups, and (3) special provisions for carriage of lithium

batteries and of vehicles powered by flammable liquid or gas. Additional amendments came into force on

June 1, 2022, include (1) addition of a definition of dosage rate, (2) additions to the list of high consequence

dangerous goods, (3) new provisions for medical/clinical waste, (4) addition of various ISO standards for

gas cylinders, (5) a new handling code, and (6) changes to stowage and segregation provisions.

The IMO has also adopted the International Convention on Standards of Training, Certification and

Watchkeeping for Seafarers (“STCW”). As of February 2017, all seafarers are required to meet the STCW

standards and be in possession of a valid STCW certificate. Flag states that have ratified SOLAS and

STCW generally employ the classification societies, which have incorporated SOLAS and STCW

requirements into their class rules, to undertake surveys to confirm compliance.

The IMO's Maritime Safety Committee and MEPC, respectively, each adopted relevant parts of the

International Code for Ships Operating in Polar Water (the “Polar Code”). The Polar Code, which entered

into force on January 1, 2017, covers design, construction, equipment, operational, training, search and

rescue as well as environmental protection matters relevant to ships operating in the waters surrounding

the two poles. It also includes mandatory measures regarding safety and pollution prevention as well as

recommendatory provisions. The Polar Code applies to new ships constructed after January 1, 2017, and

after January 1, 2018, ships constructed before January 1, 2017 are required to meet the relevant

requirements by the earlier of their first intermediate or renewal survey.

Furthermore, recent action by the IMO’s Maritime Safety Committee and United States agencies indicates

that cybersecurity regulations for the maritime industry are likely to be further developed in the near future

in an attempt to combat cybersecurity threats. By IMO resolution, administrations are encouraged to ensure

that cyber-risk management systems must be incorporated by ship-owners and managers by their first

annual Document of Compliance audit after January 1, 2021. In February 2021, the U.S. Coast Guard

published guidance on addressing cyber risks in a vessel’s safety management system. This might cause

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companies to create additional procedures for monitoring cybersecurity, which could require additional

expenses and/or capital expenditures. The impact of future regulations is hard to predict at this time.

Pollution Control and Liability Requirements

The IMO has negotiated international conventions that impose liability for pollution in international waters

and the territorial waters of the signatories to such conventions. For example, the IMO adopted an

International Convention for the Control and Management of Ships’ Ballast Water and Sediments, (the

“BWM Convention”), in 2004. The BWM Convention entered into force on September 8, 2017. The BWM

Convention requires ships to manage their ballast water to remove, render harmless, or avoid the uptake

or discharge of new or invasive aquatic organisms and pathogens within ballast water and sediments. The

BWM Convention’s implementing regulations call for a phased introduction of mandatory ballast water

exchange requirements, to be replaced in time with mandatory concentration limits, and require all ships

to carry a ballast water record book and an international ballast water management certificate.

On December 4, 2013, the IMO Assembly passed a resolution revising the application dates of the BWM

Convention so that the dates are triggered by the entry into force date and not the dates originally in the

BWM Convention. This, in effect, makes all vessels delivered before the entry into force date “existing

vessels” and allows for the installation of ballast water management systems on such vessels at the first

International Oil Pollution Prevention (“IOPP”) renewal survey following entry into force of the convention.

The MEPC adopted updated guidelines for approval of ballast water management systems (G8) at MEPC

70. At MEPC 71, the schedule regarding the BWM Convention’s implementation dates was also discussed

and amendments were introduced to extend the date existing vessels are subject to certain ballast water

standards. Those changes were adopted at MEPC 72. Ships over 400 gross tons generally must comply

with a “D-1 standard,” requiring the exchange of ballast water only in open seas and away from coastal

waters. The “D-2 standard” specifies the maximum amount of viable organisms allowed to be discharged,

and compliance dates vary depending on the IOPP renewal dates. Depending on the date of the IOPP

renewal survey, existing vessels must comply with the D-2 standard on or after September 8, 2019. For

most ships, compliance with the D-2 standard will involve installing on-board systems to treat ballast water

and eliminate unwanted organisms. Ballast water management systems, which include systems that make

use of chemical, biocides, organisms or biological mechanisms, or which alter the chemical or physical

characteristics of the ballast water, must be approved in accordance with IMO Guidelines (Regulation D-

3). As of October 13, 2019, MEPC 72’s amendments to the BWM Convention took effect, making the Code

for Approval of Ballast Water Management Systems, which governs assessment of ballast water

management systems, mandatory rather than permissive, and formalized an implementation schedule for

the D-2 standard. Under these amendments, all ships must meet the D-2 standard by September 8, 2024.

Costs of compliance with these regulations may be substantial. Additionally, in November 2020, MEPC 75

adopted amendments to the BWM Convention which would require a commissioning test of the ballast

water management system for the initial survey or when performing an additional survey for retrofits. This

analysis will not apply to ships that already have an installed BWM system certified under the BWM

Convention. These amendments have entered into force on June 1, 2022. In December 2022, MEPC 79

agreed that it should be permitted to use ballast tanks for temporary storage of treated sewage and grey

water. MEPC 79 also established that ships are expected to return to D-2 compliance after experiencing

challenging uptake water and bypassing a BWM system should only be used as a last resort. Guidance

will be developed at MEPC 80 (in July 2023) to set out appropriate actions and uniform procedures to

ensure compliance with the BWM Convention.

Once mid-ocean exchange ballast water treatment requirements become mandatory under the BWM

Convention, the cost of compliance could increase for ocean carriers and may have a material effect on

our operations. Irrespective of the BWM convention, certain countries such as the U.S. have enforced and

implemented regional requirement related to the system certification, operation and reporting.

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The IMO also adopted the International Convention on Civil Liability for Bunker Oil Pollution Damage (the

“Bunker Convention”) to impose strict liability on ship owners (including the registered owner, bareboat

charterer, manager or operator) for pollution damage in jurisdictional waters of ratifying states caused by

discharges of bunker fuel. The Bunker Convention requires registered owners of ships over 1,000 gross

tons to maintain insurance for pollution damage in an amount equal to the limits of liability under the

applicable national or international limitation regime (but not exceeding the amount calculated in

accordance with the LLMC). With respect to non-ratifying states, liability for spills or releases of oil carried

as fuel in ship’s bunkers typically is determined by the national or other domestic laws in the jurisdiction

where the events or damages occur.

Ships are required to maintain a certificate attesting that they maintain adequate insurance to cover an

incident. In jurisdictions, such as the United States where the Bunker Convention has not been adopted,

various legislative schemes or common law govern, and liability is imposed either on the basis of fault or

on a strict-liability basis.

Anti-Fouling Requirements

In 2001, the IMO adopted the International Convention on the Control of Harmful Anti-fouling Systems on

Ships, or the “Anti-fouling Convention.” The Anti-fouling Convention, which entered into force on

September 17, 2008, prohibits the use of organotin compound coatings to prevent the attachment of

mollusks and other sea life to the hulls of vessels. Vessels of over 400 gross tons engaged in international

voyages will also be required to undergo an initial survey before the vessel is put into service or before an

International Anti-fouling System Certificate is issued for the first time; and subsequent surveys when the

anti-fouling systems are altered or replaced.

We have obtained Anti-fouling System Certificates for all of our vessels that are subject to the Anti-fouling

Convention.

Requirements for the Safe and Environmentally Sound Recycling of Ships

In 2009 the Hong Kong International Convention and MEPC 269(68) adopted the guidelines for the

preparation of the Inventory of Hazardous Materials. The Convention concerns all vessels over 500 GT

entitled to fly the flag of a Party or operating under its authority, with some exceptions like warships.

According to the Convention the shipowner should control Ship’s Hazardous Materials inherent in ship’s

structure, machinery, equipment and paints, coatings and prohibit the new installations of Hazardous

Materials, by maintaining an Inventory of Hazardous Materials (IHM). It is the Company’s responsibility to

maintain the IHM Part I up to date, during the life of the ship, according to MEPC Guidelines. The ships

are subject to survey (initial, renewal, additional and final) and certification and should keep a valid

International Certificate on Inventory of Hazardous Materials or an International Ready for Recycling

Certificate (in case of recycling), on board. For ships been resulted to contain hazardous materials (like

asbestos), actions for removal should be taken by the shipowner. The ships should only be recycled

according to the regulations. If the ship is detected to be in violation of this Convention, the Party carrying

out an inspection may take steps to warn, detain, dismiss, or exclude the ship from its ports, which might

have an impact in our commercial image and cause high fines to the company. Our fleet already complies

with this regulation, although not yet into force, but the preparation, maintenance and whenever needed

removal have resulted in substantial costs.

Compliance Enforcement

Noncompliance with the ISM Code or other IMO regulations may subject the ship owner or bareboat

charterer to increased liability, may lead to decreases in available insurance coverage for affected vessels

and may result in the denial of access to, or detention in, some ports. The USCG and European Union

authorities have indicated that vessels not in compliance with the ISM Code by applicable deadlines will

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be prohibited from trading in U.S. and European Union ports, respectively. As of the date of this report,

each of our vessels is ISM Code certified. The IMO continues to review and introduce new regulations. It

is impossible to predict what additional regulations, if any, may be passed by the IMO and what effect, if

any, such regulations might have on our operations.

U.S. Regulations

The U.S. Oil Pollution Act of 1990 and the Comprehensive Environmental Response, Compensation and

Liability Act

The U.S. Oil Pollution Act of 1990 (“OPA”) established an extensive regulatory and liability regime for the

protection and cleanup of the environment from oil spills. OPA affects all “owners and operators” whose

vessels trade or operate within the U.S., its territories and possessions or whose vessels operate in U.S.

waters, which includes the U.S.’s territorial sea and its 200 nautical mile exclusive economic zone around

the U.S. The U.S. has also enacted the Comprehensive Environmental Response, Compensation and

Liability Act (“CERCLA”), which applies to the discharge of hazardous substances other than oil, except in

limited circumstances, whether on land or at sea. OPA and CERCLA both define “owner and operator” in

the case of a vessel as any person owning, operating or chartering by demise, the vessel. Both OPA and

CERCLA impact our operations.

Under OPA, vessel owners and operators are “responsible parties” and are jointly, severally and strictly

liable (unless the spill results solely from the act or omission of a third party, an act of God or an act of war)

for all containment and clean-up costs and other damages arising from discharges or threatened

discharges of oil from their vessels, including bunkers (fuel). OPA defines these other damages broadly

to include:

(i) injury to, destruction or loss of, or loss of use of, natural resources and related assessment costs;

(ii) injury to, or economic losses resulting from, the destruction of real and personal property;

(iii) loss of subsistence use of natural resources that are injured, destroyed or lost;

(iv) net loss of taxes, royalties, rents, fees or net profit revenues resulting from injury, destruction or

loss of real or personal property, or natural resources;

(v) lost profits or impairment of earning capacity due to injury, destruction or loss of real or personal

property or natural resources; and

(vi) net cost of increased or additional public services necessitated by removal activities following a

discharge of oil, such as protection from fire, safety or health hazards, and loss of subsistence use

of natural resources.

OPA contains statutory caps on liability and damages; such caps do not apply to direct cleanup

costs. Effective November 12, 2019, the USCG adjusted the limits of OPA liability for non-tank vessels,

edible oil tank vessels, and any oil spill response vessels, to the greater of $1,200 per gross ton or $997,100

(subject to periodic adjustment for inflation). On December 23, 2022, the USCG issued a final rule to adjust

the limitation of liability under the OPA. Effective March 23, 2022, the new adjusted limits of OPA liability

for non-tank vessels, edible oil tank vessels, and any oil spill response vessels, to the greater of $1,300

per gross ton or $1,076,000 (subject to periodic adjustment for inflation).These limits of liability do not apply

if an incident was proximately caused by the violation of an applicable U.S. federal safety, construction or

operating regulation by a responsible party (or its agent, employee or a person acting pursuant to a

contractual relationship), or a responsible party's gross negligence or willful misconduct. The limitation on

liability similarly does not apply if the responsible party fails or refuses to (i) report the incident as required

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by law where the responsible party knows or has reason to know of the incident; (ii) reasonably cooperate

and assist as requested in connection with oil removal activities; or (iii) without sufficient cause, comply

with an order issued under the Federal Water Pollution Act (Section 311 (c), (e)) or the Intervention on the

High Seas Act.

CERCLA contains a similar liability regime whereby owners and operators of vessels are liable for cleanup,

removal and remedial costs, as well as damages for injury to, or destruction or loss of, natural resources,

including the reasonable costs associated with assessing the same, and health assessments or health

effects studies. There is no liability if the discharge of a hazardous substance results solely from the act or

omission of a third party, an act of God or an act of war. Liability under CERCLA is limited to the greater of

$300 per gross ton or $5.0 million for vessels carrying a hazardous substance as cargo and the greater of

$300 per gross ton or $500,000 for any other vessel. These limits do not apply (rendering the responsible

person liable for the total cost of response and damages) if the release or threat of release of a hazardous

substance resulted from willful misconduct or negligence, or the primary cause of the release was a

violation of applicable safety, construction or operating standards or regulations. The limitation on liability

also does not apply if the responsible person fails or refused to provide all reasonable cooperation and

assistance as requested in connection with response activities where the vessel is subject to OPA.

OPA and CERCLA each preserve the right to recover damages under existing law, including maritime tort

law. OPA and CERCLA both require owners and operators of vessels to establish and maintain with the

USCG evidence of financial responsibility sufficient to meet the maximum amount of liability to which the

particular responsible person may be subject. Vessel owners and operators may satisfy their financial

responsibility obligations by providing a proof of insurance, a surety bond, qualification as a self-insurer or

a guarantee. We comply and plan to comply going forward with the USCG’s financial responsibility

regulations by providing applicable certificates of financial responsibility.

The 2010

Deepwater Horizon

 oil spill in the Gulf of Mexico resulted in additional regulatory initiatives or

statutes, including higher liability caps under OPA, new regulations regarding offshore oil and gas drilling,

and a pilot inspection program for offshore facilities. However, several of these initiatives and

regulations have been or may be revised. For example, the U.S. Bureau of Safety and

Environmental Enforcement’s (“BSEE”) revised Production Safety Systems Rule (“PSSR”), effective

December 27, 2018, modified and relaxed certain environmental and safety protections under the 2016

PSSR. Additionally, the BSEE amended the Well Control Rule, effective July 15, 2019, which rolled back

certain reforms regarding the safety of drilling operations, and the former U.S. President Trump had 

proposed leasing new sections of U.S. waters to oil and gas companies for offshore drilling. In January

2021, U.S. President Biden signed an executive order temporarily blocking new leases for oil and gas

drilling in federal waters. However, attorney generals from 13 states filed suit in March 2021 to lift the

executive order, and in June 2021, a federal judge in Louisiana granted a preliminary injunction against

the Biden administration, stating that the power to pause offshore oil and gas leases “lies solely with

Congress.” In August 2022, a federal judge in Louisiana sided with Texas Attorney General Ken Paxton,

along with the other 12 plaintiff states, by issuing a permanent injunction against the Biden Administration’s

moratorium on oil and gas leasing on federal public lands and offshore waters. With these rapid changes,

compliance with any new requirements of OPA and future legislation or regulations applicable to the

operation of our vessels could impact the cost of our operations and adversely affect our business.

OPA specifically permits individual states to impose their own liability regimes with regard to oil pollution

incidents occurring within their boundaries, provided they accept, at a minimum, the levels of liability

established under OPA and some states have enacted legislation providing for unlimited liability for oil

spills. Many U.S. states that border a navigable waterway have enacted environmental pollution laws that

impose strict liability on a person for removal costs and damages resulting from a discharge of oil or a

release of a hazardous substance. These laws may be more stringent than U.S. federal law. Moreover,

some states have enacted legislation providing for unlimited liability for discharge of pollutants within their

waters, although in some cases, states which have enacted this type of legislation have not yet issued

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implementing regulations defining vessel owners’ responsibilities under these laws. The Company intends

to comply with all applicable state regulations in the ports where the Company’s vessels call.

We currently maintain pollution liability coverage insurance in the amount of $1 billion per incident for each

of our vessels. If the damages from a catastrophic spill were to exceed our insurance coverage, it could

have an adverse effect on our business and results of operation.

Other United States Environmental Initiatives

The U.S. Clean Air Act of 1970 (including its amendments of 1977 and 1990) (“CAA”) requires the EPA to

promulgate standards applicable to emissions of volatile organic compounds and other air

contaminants. The CAA requires states to adopt State Implementation Plans, or SIPs, some of which

regulate emissions resulting from vessel loading and unloading operations which may affect our vessels.

The U.S. Clean Water Act (“CWA”) prohibits the discharge of oil, hazardous substances and ballast water

in U.S. navigable waters unless authorized by a duly-issued permit or exemption, and imposes strict liability

in the form of penalties for any unauthorized discharges. The CWA also imposes substantial liability for

the costs of removal, remediation and damages and complements the remedies available under OPA and

CERCLA. In 2015, the EPA expanded the definition of “waters of the United States” (“WOTUS”). In 2019

and 2020, the agencies repealed the prior WOTUS Rule and promulgated the Navigable Waters Protection

Rule (“NWPR”) which significantly reduced the scope and oversight of EPA and the Department of the

Army in traditionally non navigable waterways. On August 30, 2021, a federal district court in Arizona

vacated the NWPR and directed the agencies to replace the rule. On December 7, 2021, the EPA and the

Department of the Army proposed a rule that would reinstate the pre-2015 definition. On December 30,

2022, the EPA and the Department of Army announced the final WOTUS rule that largely reinstated the

pre-2015 definition. 

The EPA and the USCG have also enacted rules relating to ballast water discharge, compliance with which

requires the installation of equipment on our vessels to treat ballast water before it is discharged or the

implementation of other port facility disposal arrangements or procedures at potentially substantial costs,

and/or otherwise restrict our vessels from entering U.S. Waters. The EPA will regulate these ballast water

discharges and other discharges incidental to the normal operation of certain vessels within United States

waters pursuant to the Vessel Incidental Discharge Act (“VIDA”), which was signed into law on December

4, 2018 and replaces the 2013 Vessel General Permit (“VGP”) program (which authorizes discharges

incidental to operations of commercial vessels and contains numeric ballast water discharge limits for most

vessels to reduce the risk of invasive species in U.S. waters, stringent requirements for exhaust gas

scrubbers, and requirements for the use of environmentally acceptable lubricants) and current Coast Guard

ballast water management regulations adopted under the U.S. National Invasive Species Act (“NISA”),

such as mid-ocean ballast exchange programs and installation of approved USCG technology for all

vessels equipped with ballast water tanks bound for U.S. ports or entering U.S. waters. VIDA establishes

a new framework for the regulation of vessel incidental discharges under Clean Water Act (CWA), requires

the EPA to develop performance standards for those discharges within two years of enactment, and

requires the U.S. Coast Guard to develop implementation, compliance, and enforcement regulations within

two years of EPA’s promulgation of standards. Under VIDA, all provisions of the 2013 VGP and USCG

regulations regarding ballast water treatment remain in force and effect until the EPA and U.S. Coast Guard

regulations are finalized. Non-military, non-recreational vessels greater than 79 feet in length must

continue to comply with the requirements of the VGP, including submission of a Notice of Intent (“NOI”) or

retention of a PARI form and submission of annual reports. We have submitted NOIs for our vessels where

required. Compliance with the EPA, U.S. Coast Guard and state regulations could require the installation

of ballast water treatment equipment on our vessels or the implementation of other port facility disposal

procedures at potentially substantial cost or may otherwise restrict our vessels from entering U.S. waters.

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European Union Regulations

In October 2009, the European Union amended a directive to impose criminal sanctions for illicit ship-

source discharges of polluting substances, including minor discharges, if committed with intent, recklessly

or with serious negligence and the discharges individually or in the aggregate result in deterioration of the

quality of water. Aiding and abetting the discharge of a polluting substance may also lead to criminal

penalties. The directive applies to all types of vessels, irrespective of their flag, but certain exceptions apply

to warships or where human safety or that of the ship is in danger. Criminal liability for pollution may result

in substantial penalties or fines and increased civil liability claims. Regulation (EU) 2015/757 of the

European Parliament and of the Council of 29 April 2015 (amending EU Directive 2009/16/EC) governs

the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and, subject

to some exclusions, requires companies with ships over 5,000 gross tonnage to monitor and report carbon

dioxide emissions annually, which may cause us to incur additional expenses.

The European Union has adopted several regulations and directives requiring, among other things, more

frequent inspections of high-risk ships, as determined by type, age, and flag as well as the number of times

the ship has been detained. The European Union also adopted and extended a ban on substandard ships

and enacted a minimum ban period and a definitive ban for repeated offenses. The regulation also provided

the European Union with greater authority and control over classification societies, by imposing more

requirements on classification societies and providing for fines or penalty payments for organizations that

failed to comply. Furthermore, the EU has implemented regulations requiring vessels to use reduced sulfur

content fuel for their main and auxiliary engines. The EU Directive 2005/33/EC (amending Directive

1999/32/EC) introduced requirements parallel to those in Annex VI relating to the sulfur content of marine

fuels. In addition, the EU imposed a 0.1% maximum sulfur requirement for fuel used by ships at berth in

the Baltic, the North Sea and the English Channel (the so called “SOx-Emission Control Area”). As of

January 2020, EU member states must also ensure that ships in all EU waters, except the SOx-Emission

Control Area, use fuels with a 0.5% maximum sulfur content.

On September 15, 2020, the European Parliament voted to include greenhouse gas emissions from the

maritime sector in the European Union’s carbon market, the EU Emissions Trading System (“EU ETS”).

On July 14, 2021, the European Parliament formally proposed its plan, which would involve gradually

including the maritime sector from 2023 and phasing the sector in over three-year period. This will require

shipowners to buy permits to cover these emissions. The Environment Council adopted a general

approach on the proposal in June 2022. On December 18, 2022, the Environmental Council and European

Parliament agreed to include maritime shipping emissions within the scope of the EU ETS on a gradual

introduction of obligations for shipping companies to surrender allowances: 40% for verified emissions from

2024, 70% for 2025 and 100% for 2026. Most large vessels will be included in the scope of the EU ETS

from the start. Big offshore vessels of 5,000 gross tonnage and above will be included in the 'MRV' on the

monitoring, reporting and verification of CO2 emissions from maritime transport regulation from 2025 and

in the EU ETS from 2027. 

EU Ship Recycling Regulation

The Regulation is mostly aligned with the Hong Kong Convention on Ship Recycling, mentioned earlier

and aims quick ratification of the Convention. However, it sets some additional requirements and has been

into force since 2015 for new ships and 2020 for existing ships. It concerns vessels over 500 GT flying the

flag of a member state or vessels flying the flag of a 3

rd

 party calling at port or anchorage of member states.

Our fleet fully complies with this regulation. Our fleet’s Inventories of Hazardous Materials preparation,

certification and continuous maintenance have resulted in a significant cost to the Company.

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International Labour Organization

The International Labour Organization (the “ILO”) is a specialized agency of the UN that has adopted the

Maritime Labor Convention 2006 (“MLC 2006”). A Maritime Labor Certificate and a Declaration of Maritime

Labor Compliance is required to ensure compliance with the MLC 2006 for all ships that are 500 gross

tonnage or over and are either engaged in international voyages or flying the flag of a Member and

operating from a port, or between ports, in another country. All of our vessels are certified under the

Maritime Labor Convention 2006 (“MLC 2006”)

Greenhouse Gas Regulation

Currently, the emissions of greenhouse gases from international shipping are not subject to the Kyoto

Protocol to the United Nations Framework Convention on Climate Change, which entered into force in 2005

and pursuant to which adopting countries have been required to implement national programs to reduce

greenhouse gas emissions with targets extended through 2020. International negotiations are continuing

with respect to a successor to the Kyoto Protocol, and restrictions on shipping emissions may be included

in any new treaty. In December 2009, more than 27 nations, including the U.S. and China, signed the

Copenhagen Accord, which includes a non-binding commitment to reduce greenhouse gas emissions. The

2015 United Nations Climate Change Conference in Paris resulted in the Paris Agreement, which entered

into force on November 4, 2016 and does not directly limit greenhouse gas emissions from ships. The U.S.

initially entered into the agreement, but on June 1, 2017, the former U.S. President Trump announced

that the United States intends to withdraw from the Paris Agreement, and the withdrawal became effective

on November 4, 2020. On January 20, 2021, U.S. President Biden signed an executive order to rejoin the

Paris Agreement. It will take 30 days for the United States to rejoin.

At MEPC 70 and MEPC 71, a draft outline of the structure of the initial strategy for developing a

comprehensive IMO strategy on reduction of greenhouse gas emissions from ships was approved. In

accordance with this roadmap, in April 2018, nations at the MEPC 72 adopted an initial strategy to reduce

greenhouse gas emissions from ships. The initial strategy identifies “levels of ambition” to reducing

greenhouse gas emissions, including (1) decreasing the carbon intensity from ships through

implementation of further phases of the EEDI for new ships; (2) reducing carbon dioxide emissions per

transport work, as an average across international shipping, by at least 40% by 2030, pursuing efforts

towards 70% by 2050, compared to 2008 emission levels; and (3) reducing the total annual greenhouse

emissions by at least 50% by 2050 compared to 2008 while pursuing efforts towards phasing them out

entirely. The initial strategy notes that technological innovation, alternative fuels and/or energy sources for

international shipping will be integral to achieve the overall ambition. These regulations could cause us to

incur additional substantial expenses.

The EU made a unilateral commitment to reduce overall greenhouse gas emissions from its member states

from 20% of 1990 levels by 2020. The EU also committed to reduce its emissions by 20% under the Kyoto

Protocol’s second period from 2013 to 2020. Starting in January 2018, large ships over 5,000 gross

tonnage calling at EU ports are required to collect and publish data on carbon dioxide emissions and other

information. As previously discussed, regulations relating to the inclusion of greenhouse gas emissions

from the maritime sector in the European Union’s carbon market are also forthcoming.

Any passage of climate control legislation or other regulatory initiatives by the IMO, the EU, the U.S. or

other countries where we operate, or any treaty adopted at the international level to succeed the Kyoto

Protocol or Paris Agreement, that restricts emissions of greenhouse gases could require us to make

significant financial expenditures which we cannot predict with certainty at this time. Even in the absence

of climate control legislation, our business may be indirectly affected to the extent that climate change may

result in sea level changes or certain weather events.

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Vessel Security Regulations

Since the terrorist attacks of September 11, 2001 in the United States, there have been a variety of

initiatives intended to enhance vessel security such as the U.S. Maritime Transportation Security Act of

2002 (“MTSA”). To implement certain portions of the MTSA, the USCG issued regulations requiring the

implementation of certain security requirements aboard vessels operating in waters subject to the

jurisdiction of the United States and at certain ports and facilities, some of which are regulated by the EPA.

Similarly, Chapter XI-2 of the SOLAS Convention imposes detailed security obligations on vessels and port

authorities and mandates compliance with the International Ship and Port Facility Security Code (“the ISPS

Code”). The ISPS Code is designed to enhance the security of ports and ships against terrorism. To trade

internationally, a vessel must attain an International Ship Security Certificate (“ISSC”) from a recognized

security organization approved by the vessel’s flag state. Ships operating without a valid certificate may be

detained, expelled from, or refused entry at port until they obtain an ISSC. The various requirements, some

of which are found in the SOLAS Convention, include, for example, on-board installation of automatic

identification systems to provide a means for the automatic transmission of safety-related information from

among similarly equipped ships and shore stations, including information on a ship’s identity, position,

course, speed and navigational status; on-board installation of ship security alert systems, which do not

sound on the vessel but only alert the authorities on shore; the development of vessel security plans; ship

identification number to be permanently marked on a vessel’s hull; a continuous synopsis record kept

onboard showing a vessel's history including the name of the ship, the state whose flag the ship is entitled

to fly, the date on which the ship was registered with that state, the ship's identification number, the port at

which the ship is registered and the name of the registered owner(s) and their registered address;

and compliance with flag state security certification requirements.

The USCG regulations, intended to align with international maritime security standards, exempt non-U.S.

vessels from MTSA vessel security measures, provided such vessels have on board a valid ISSC that

attests to the vessel’s compliance with the SOLAS Convention security requirements and the ISPS Code.

Future security measures could have a significant financial impact on us. We intend to comply with the

various security measures addressed by MTSA, the SOLAS Convention and the ISPS Code. The cost of

vessel security measures has also been affected by the escalation in the frequency of acts of piracy against

ships, notably off the coast of Somalia, including the Gulf of Aden and Arabian Sea area. Substantial loss

of revenue and other costs may be incurred as a result of detention of a vessel or additional security

measures, and the risk of uninsured losses could significantly affect our business. Costs are incurred in

taking additional security measures in accordance with Best Management Practices to Deter Piracy,

notably those contained in the BMP5 industry standard.

Inspection by Flag administration and Classification Societies

The flag represents the nationality of the ship, showing that it’s under the control of the registered country

and must comply with international and maritime law of it. The flag is required to take measures to ensure

safety at sea and should verify that ships under its authority, conform relevant international standards, in

regard to construction, design, equipment and manning of ships, through on board physical inspections.

The hull and machinery of every commercial vessel must be classed by a classification society authorized

by its country of registry. The classification society certifies that a vessel is safe and seaworthy in

accordance with the applicable rules and regulations of the country of registry of the vessel and SOLAS.

Most insurance underwriters make it a condition for insurance coverage and lending that a vessel be

certified “in class” by a classification society which is a member of the International Association of

Classification Societies, the IACS. The IACS has adopted harmonized Common Structural Rules, or “the

Rules”, which apply to oil tankers and bulk carriers contracted for construction on or after July 1, 2015. The

Rules attempt to create a level of consistency between IACS Societies. All of our vessels are certified as

67

being “in class” by all the applicable Classification Societies (e.g., American Bureau of Shipping, Lloyd's

Register of Shipping).

A vessel must undergo annual surveys, intermediate surveys, drydockings and special surveys. In lieu of

a special survey, a vessel’s machinery may be on a continuous survey cycle, under which the machinery

would be surveyed periodically over a five-year period. Every vessel should have a minimum of two

examinations of the outside of a vessel's bottom and related items during each five-year special survey

period. One such examination is to be carried out in conjunction with the Special Periodical Survey. In all

cases, the interval between any two such examinations is not to exceed 36 months. In all cases, the interval

between any two such examinations is not to exceed 36 months. If any vessel does not maintain its class

and/or fails any annual survey, intermediate survey, drydocking or special survey, the vessel will be unable

to carry cargo between ports and will be unemployable and uninsurable which could cause us to be in

violation of certain covenants in our loan agreements. Any such inability to carry cargo or be employed, or

any such violation of covenants, could have a material adverse impact on our financial condition and results

of operations.

Risk of Loss and Liability Insurance

General

The operation of any cargo vessel includes risks such as mechanical failure, physical damage, collision,

property loss, cargo loss or damage and business interruption due to political circumstances in foreign

countries, piracy incidents, hostilities and labor strikes. In addition, there is always an inherent possibility

of marine disaster, including oil spills and other environmental mishaps, and the liabilities arising from

owning and operating vessels in international trade. OPA, which imposes virtually unlimited liability

upon shipowners, operators and bareboat charterers of any vessel trading in the exclusive economic

zone of the United States for certain oil pollution accidents in the United States, has made liability insurance

more expensive for shipowners and operators trading in the United States market. We carry insurance

coverage as customary in the shipping industry. However, not all risks can be insured, specific claims may

be rejected, and we might not be always able to obtain adequate insurance coverage at reasonable rates.

While we maintain hull and machinery insurance, war risks insurance, protection and indemnity cover and

freight, demurrage and defense cover for our operating fleet in amounts that we believe to be prudent to

cover normal risks in our operations, we may not be able to achieve or maintain this level of coverage

throughout a vessel's useful life. Furthermore, while we believe that our present insurance coverage is

adequate, not all risks can be insured, and there can be no guarantee that any specific claim will be paid,

or that we will always be able to obtain adequate insurance coverage at reasonable rates.

Hull & Machinery and War Risks Insurance

We maintain marine hull and machinery and war risks insurance, which cover, among other marine risks,

the risk of actual or constructive total loss, for all of our vessels. Our vessels are each covered up to at

least fair market value with deductibles ranging to a maximum of $100,000 per vessel per incident for

Panamax, Kamsarmax and Post-Panamax vessels and $150,000 per vessel per incident for Capesize and

Newcastlemax vessels.

Protection and Indemnity Insurance

Protection and indemnity insurance is provided by mutual protection and indemnity associations, or “P&I

Associations,” and covers our third-party liabilities in connection with our shipping activities. This includes

third-party liability and other related expenses of injury or death of crew, passengers and other third parties,

loss or damage to cargo, claims arising from collisions with other vessels, damage to other third-party

property, pollution arising from oil or other substances, and salvage, towing and other related costs,

68

including wreck removal. Protection and indemnity insurance is a form of mutual indemnity insurance,

extended by protection and indemnity mutual associations, or “clubs.”

Our current protection and indemnity insurance coverage for pollution is $1 billion per vessel per incident.

The 13 P&I Associations that comprise the International Group insure approximately 90% of the world’s

commercial tonnage and have entered into a pooling agreement to reinsure each association’s

liabilities. The International Group’s website states that the Pool provides a mechanism for sharing all

claims in excess of US$10 million up to, currently, approximately US$8.2 billion. As a member of a P&I

Association, which is a member of the International Group, we are subject to calls payable to the

associations based on our claim records as well as the claim records of all other members of the individual

associations and members of the shipping pool of P&I Associations comprising the International

Group. Our vessels may be subject to supplemental calls which are based on estimates of premium

income and anticipated and paid claims. Such estimates are adjusted each year by the Board of Directors

of the P&I Association until the closing of the relevant policy year, which generally occurs within three years

from the end of the policy year. Supplemental calls, if any, are expensed when they are announced and

according to the period they relate to. 

C. Organizational structure

Diana Shipping Inc. is the sole owner of all of the issued and outstanding shares of the subsidiaries listed

in Exhibit 8.1 to this annual report.

D. Property, plants and equipment

Since October 8, 2010, DSS owns the land and the building where we have our principal corporate offices

in Athens, Greece. In addition, in December 2014, DSS acquired a plot of land jointly with two other related

entities from unrelated individuals and in November 2021 acquired an additional part of this land owned by

one of our related parties. This plot is in the same area as our principal offices. Other than this interest in

real property, our only material properties are the vessels in our fleet, owned and bareboat chartered-in. 

Item 4A. Unresolved Staff Comments

None.

Item 5. Operating and Financial Review and Prospects

The following management's discussion and analysis should be read in conjunction with our historical

consolidated financial statements and their notes included elsewhere in this annual report. 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 as a result of certain factors, such as those set forth in the section entitled “Risk Factors” and

elsewhere in this annual report.

A. Operating results

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. 

69

(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. 

(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 amount 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 rates, or TCE rates, are defined as our time charter revenues less

voyage expenses during a period divided by the number of our available days during the period,

which is consistent with industry standards. Voyage expenses include port charges, bunker

(fuel) expenses, canal charges and commissions. TCE rate 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.

(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:

70

As of and for the

Year Ended December 31,

2022

2021

2020

Fleet Data:

Average number of vessels (1)

35.4

36.6

40.8

Number of vessels at year-end

42.0

33.0

40.0

Weighted average age of vessels at year-end (in years) 

10.2

10.4

10.2

Ownership days (2) 

12,924

13,359

14,931

Available days (3) 

12,449

13,239

14,318

Operating days (4) 

12,306

13,116

14,020

Fleet utilization (5) 

98.9%

99.1%

97.9%

Average Daily Results:

Time charter equivalent (TCE) rate (6) 

$

22,735

$

15,759

$

10,910

Daily vessel operating expenses (7) 

5,574

5,596

5,750

The following table reflects the calculation of our TCE rates for the periods presented:

Year Ended December 31,

2022

2021

2020

(in thousands of U.S. dollars, except for

TCE rates, which are expressed in U.S.

dollars, and available days)

Time charter revenues 

$

289,972

$

214,203

$

169,733

Less: voyage expenses 

(6,942)

(5,570)

(13,525)

Time charter equivalent revenues 

$

283,030

$

208,633

$

156,208

Available days 

12,449

13,239

14,318

Time charter equivalent (TCE) rate 

$

22,735

$

15,759

$

10,910

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:

●

the duration of our charters;

●

our decisions relating to vessel acquisitions and disposals;

●

the amount of time that we spend positioning our vessels;

●

the amount of time that our vessels spend in drydock undergoing repairs;

●

maintenance and upgrade work;

●

the age, condition and specifications of our vessels;

●

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

71

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

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. Revenues derived

from time charter agreements in 2022 were increased compared to previous years, due to the significant

increase in charter rates, despite the decrease in the size of our fleet, evident in the decrease of the average

number of vessels. In 2023, we expect the average number of vessels to increase, as currently our fleet

consists of 41 vessels, however, due to the decrease of the time charter rates observed in the current

market, we expect our revenues in 2023 to decrease compared to 2022. 

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, 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. For 2023,

we expect our voyage expenses to decrease compared to 2022, due to the expected decrease in revenues.

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 HSQ and vetting. Our vessel operating expenses generally represent fixed costs. Vessel

operating expenses have been reduced since 2021 due to the decrease in ownership days. For 2023, we

expect our operating expenses to increase compared to 2022, as a result of the average increase of the

size of the fleet compared to 2022.

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

72

based on historical average prices of the cost of the light-weight ton of vessels being scrapped. During

2021, we sold four vessels in January, March and July of 2021 and in November 2021 we contributed to

OceanPal the shares of three ship-owning companies, owning the vessels

Calipso

,

Protefs

 and

Salt Lake

City

. Three of the vessels sold in 2021 were held for sale since 2020, when we agreed to sell them. In

2020, we had agreed to sell two more vessels, for which their sales were concluded in 2020. Following all

these transactions, vessel depreciation decreased from 2020 to 2021 and increased again in 2022, as we

took delivery of ten vessels and sold one. As of the date of this annual report, we have taken delivery of

one Ultramax vessel, we expect to take delivery of one additional Ultramax vessel and we sold two vessels.

For 2023, we expect depreciation expense to increase due to the increase in the number of vessels in our

fleet.

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.

During the last three years, our general and administrative expenses are at the same level with the

exception of 2020 which increased due to an accelerated vesting of restricted stocks of board members

who resigned and the shares which were awarded to them fully vested on the date of their resignation. For

2023, we expect our general and administrative expenses to increase, due to anticipated increases in

payroll and other office expenses. General and administrative expenses are not affected by the size of the

fleet. However, they are affected by the exchange rate of Euro to US Dollars, as about half of our

administrative expenses are in Euro. 

Interest and Finance Costs

We incur interest expense and financing costs in connection with vessel-specific debt, senior unsecured

bond and finance liabilities. As of December 31, 2022 our aggregate debt amounted to $530.1 million and

our finance liabilities amounted to $142.4 million. While our bond and finance liabilities have a fixed interest

rate, the loan agreements with our banks have a floating rate based on LIBOR or term SOFR plus a margin.

During 2022, we entered into a new loan agreement based on term SOFR, and we will need to transition

our existing loan agreements from LIBOR to an alternative reference rate prior to June 2023. As of the date

of this report, we do not have any agreements to mitigate our exposure in interest rates and we have not

made any agreements with our banks to replace LIBOR, but we are in discussions to do so. To date, we

have selected term SOFR to replace LIBOR but, we are not in a position to determine the effect of interest

rates on our results of operations and cash flows. Interest rates have started increasing since the beginning

of 2022, continue to increase in 2023 and taking into account the increase in the outstanding amount of

debt, we expect interest and finance costs in 2023 to increase. We expect to manage the exposure in

interest rates through our regular operating and financing activities.

Lack of Historical Operating Data for Vessels before Their Acquisition

Although vessels are generally acquired free of charter, we have acquired (and may in the future acquire)

some vessels with time charters. It is rare in the shipping industry for the last charterer of the vessel in the

hands of the seller to continue as the first charterer of the vessel in the hands of the buyer. In most cases,

when a vessel is under time charter and the buyer wishes to assume that charter, the vessel cannot be

acquired without the charterer’s consent and the buyer entering into a separate direct agreement (called a

“novation agreement”) with the charterer to assume the charter. The purchase of a vessel itself does not

transfer the charter because it is a separate service agreement between the vessel owner and the

charterer.

73

Where we identify any intangible assets or liabilities associated with the acquisition of a vessel, we record

all identified assets or liabilities at fair value. Fair value is determined by reference to market data. We

value any asset or liability arising from the market value of the time charters assumed when a vessel is

acquired. The amount to be recorded as an asset or liability at the date of vessel delivery is based on the

difference between the current fair market value of the charter and the net present value of future

contractual cash flows. When the present value of the time charter assumed is greater than the current

fair market value of such charter, the difference is recorded as prepaid charter revenue. When the opposite

situation occurs, any difference, capped to the vessel’s fair value on a charter-free basis, is recorded as

deferred revenue. Such assets and liabilities, respectively, are amortized as a reduction of, or an increase

in, revenue over the period of the time charter assumed.

When we purchase a vessel and assume or renegotiate a related time charter, among others, we must

take the following steps before the vessel will be ready to commence operations:

●

obtain the charterer’s consent to us as the new owner;

●

obtain the charterer’s consent to a new technical manager;

●

in some cases, obtain the charterer’s consent to a new flag for the vessel;

●

arrange for a new crew for the vessel, and where the vessel is on charter, in some cases, the

crew must be approved by the charterer;

●

replace all hired equipment on board, such as gas cylinders and communication equipment;

●

negotiate and enter into new insurance contracts for the vessel through our own insurance

brokers;

●

register the vessel under a flag state and perform the related inspections in order to obtain new

trading certificates from the flag state;

●

implement a new planned maintenance program for the vessel; and

●

ensure that the new technical manager obtains new certificates for compliance with the safety

and vessel security regulations of the flag state.

When we charter a vessel pursuant to a long-term time charter agreement with varying rates, we recognize

revenue on a straight-line basis, equal to the average revenue during the term of the charter. 

The following discussion is intended to help you understand how acquisitions of vessels affect our business

and results of operations.

Our business is mainly comprised of the following elements:

●

employment and operation of our vessels; and

●

management of the financial, general and administrative elements involved in the conduct of

our business and ownership of our vessels.

The employment and operation of our vessels mainly require the following components:

●

vessel maintenance and repair;

74

●

crew selection and training;

●

vessel spares and stores supply;

●

contingency response planning;

●

onboard safety procedures auditing;

●

accounting;

●

vessel insurance arrangement;

●

vessel chartering;

●

vessel security training and security response plans (ISPS);

●

obtaining of ISM certification and audit for each vessel within the six months of taking over a

vessel;

●

vessel hiring management;

●

vessel surveying; and

●

vessel performance monitoring.

The management of financial, general and administrative elements involved in the conduct of our business

and ownership of our vessels mainly requires the following components:

●

management of our financial resources, including banking relationships, i.e., administration of

bank loans and bank accounts;

●

management of our accounting system and records and financial reporting;

●

administration of the legal and regulatory requirements affecting our business and assets; and

●

management of the relationships with our service providers and customers.

The principal factors that affect our profitability, cash flows and shareholders’ return on investment include:

●

rates and periods of charter hire;

●

levels of vessel operating expenses;

●

depreciation expenses;

●

financing costs;

●

the effects of COVID-19;

●

the war in the Ukraine; 

●

inflation, and 

75

●

fluctuations in foreign exchange rates.

Results of Operations

Year ended December 31, 2022 compared to the year ended December 31, 2021

Time charter revenues.

 Time charter revenues increased by $75.8 million, or 35%, to $290.0 million in

2022, compared to $214.2 million in 2021. The increase in time charter revenues was due to increased

average time charter rates that the Company achieved for its vessels, which increased our TCE rate to

$22,735 in 2022 from $15,759 in 2021, representing a 44% increase. This increase was partly offset by

decreased operating days during 2022, as compared to last year. Operating days in 2022 were 12,306

compared to 13,116 in 2021, resulting from the decrease in our fleet due to the sale of vessels and

increased drydock and off hire days in 2022 compared to last year.

Voyage expenses.

 Voyage expenses increased by $1.3 million, or 23%, to $6.9 million in 2022 as

compared to $5.6 in 2021. This increase was mainly due to commissions, which is the main part of voyage

expenses, and which in 2022 increased to $14.4 million compared to $10.8 million in 2021 The increase

was partly offset by increased gain on bunkers amounting to $8.1 million in 2022 compared to $6.0 million

in 2021. The gain 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

agreement and the price of bunkers paid by charterers to the Company on the delivery of the same vessels

to their charterers under new charter party agreements.

Vessel operating expenses.

Vessel operating expenses decreased by $2.8 million, or 4%, to $72.0 million

in 2022 compared to $74.8 million in 2021. The decrease in operating expenses is attributable to the

decrease in ownership days in 2022, as a result of the sale of vessels last year and OceanPal’s spinoff

and the sale of one additional vessel in 2022. The acquisition of eight vessels in the fourth quarter of 2022

was not enough to balance the size of the fleet. Operating expenses also decreased due to decreased

crew costs, spares and other consumables. The decrease was partly offset by increased insurance costs

due to increased premiums, taxes and environmental and health, safety and vetting expenses. Total daily

operating expenses were $5,574 in 2022 compared to $5,596 in 2021. 

Depreciation and amortization of deferred charges. Depreciation and amortization of deferred charges

increased by $2.8 million, or 7%, to $43.3 million in 2022, compared to $40.5 million in 2021. This increase

was due to the acquisition of ten vessels during 2022, as noted above, and was partly offset due to the

sale of vessels in 2021, the vessels contributed to OceanPal in a spinoff which were removed from the fleet

in November 2021 and the sale of vessel

Baltimore

 which was classified as held for sale since June 2022

although her sale was completed in September 2022. A further increase incurred due to increased

amortization of deferred cost as a result of the drydock cost incurred for twelve vessels having drydock

surveys in 2022 and four in 2021.

General and administrative expenses

. General and admini

strati

ve expenses increased by $0.2 million, or

1%, to $29.4 million in 2022 compared to $29.2 million in 2021. The increase was mainly due to the

accelerated vesting of restricted shares of a board member who resigned in 2022. The increase was partially

offset due to decreased payroll cost and directors’ and officers’ insurance in 2022, as compared to 2021.

Management fees to related party.

 Management fees to a related party decreased by $0.9 million, or 64%

to $0.5 million in 2022 compared to $1.4 million in 2021. The decrease was attributable to decreased average

number of vessels managed by DWM in 2022 compared to 2021, due to the contribution, in November 2021,

of three vessel-owning companies to OceanPal, which were all managed by DWM. The decrease was

partially offset due to the acquisition of three Ultramax vessels, in the fourth quarter of 2022, whose

management was assigned to DWM.

76

Gain on sale of vessels.

 Gain on sale of vessels increased by $1.5 million, or 107%, to $2.9 million which

resulted from the sale of

Baltimore

in 2022 compared to $1.4 million in 2021 which resulted from the sale of

Naias

 in 2021, partly offset by loss on sale of other vessels sold during the year.

Insurance recoveries

. Insurance recoveries amounted to $1.8 million in 2022 and consisted of amounts

received from our insurers for claims covered under the insurance policies during 2022. There was no

comparative amount received last year.

Interest expense and finance costs.

 Interest expense and finance costs increased by $7.2 or 36% to

$27.4 million in 2022 compared to $20.2 million in 2021. The increase was primarily attributable to increased

average outstanding balance of debt and finance liabilities in 2022, resulting from a new loan agreement

to finance the acquisition of nine Ultramax vessels and the sale and leaseback agreements we entered

into, in 2022. A further increase was also derived from increased average interest rates resulting from our

loan agreements, having a variable interest rate. In 2022, the weighted average interest rate of our secured

loan agreements was 3.8% compared to 2.45% in 2021.

Interest and other income

. Interest and other income increased by $2.5 million, or 1250%, to $2.7 million

in 2022 compared to $0.2 million in 2021. The increase is mainly attributable to increased deposit rates in

2022 compared to 2021. A further increase derives from dividend income amounting to $0.9 million, from

the Company’s investment in OceanPal’s Series C and Series D Preferred stock compared to $0.1 million

in 2021.

Loss on extinguishment of debt.

In 2022, loss on extinguishment of debt decreased by $0.6, or 60% to $0.4

million and consisted of financing costs written off as a result of the early prepayment of the outstanding

balances of loans attributed to the one vessel sold and three vessels refinanced in sale and leaseback

transactions in 2022. In 2021, loss on extinguishment of debt amounted to $1.0 million and consisted of

the prepayment in full of four loan agreements refinanced by another bank and the redemption of our $100

million bond in September 2021.

Gain on spin-off of OceanPal Inc.

 The gain on spin-off of OceanPal Inc. in 2021 represents the difference

between the fair value of the assets contributed to OceanPal, amounting to $48.1 million, and their carrying

value consisting of $30.3 million of vessel cost and $0.5 million of unamortized deferred costs and $2.0

million of assets contributed.

Gain on dividend distribution

. The gain on dividend distribution represents the gain recognized in 2022

upon the distribution of the 25,000 Convertible Series D Preferred Shares of OceanPal Inc. as a non cash

dividend to the Company's shareholders, being the difference between the carrying value and the fair value

of the Series D Preferred Shares on the date of the dividend declaration.

Gain/(loss) from equity method investments.

In 2022, gain on equity method investments, amounted to

$0.9 million, compared to a loss of $0.3 million in 2021 and relates to the result in each year of our 50%

interest in DWM, attributed to us.

Year ended December 31, 2021 compared to the year ended December 31, 2020

For a discussion of the year ended December 31, 2021 compared to the year ended December 31, 2020,

please refer to “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-

F, for the year ended December 31, 2021 filed with the SEC on April 27, 2022.

B. Liquidity and Capital Resources

We finance our capital requirements with cash flow from operations, equity contributions from

shareholders, long-term bank debt, finance liabilities and senior unsecured bonds. Our main uses of funds

77

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. 

As of December 31, 2022 and 2021, working capital, which is current assets minus current liabilities,

including the current portion of long-term debt and finance liabilities, amounted to $9.0 million and $60.5

million, respectively. The decrease in working capital is mainly due to a balloon payment amounting to

$43.8 million under one of our loan agreements which is due in 2023. In 2022, we also entered into a new

loan agreement with Nordea to finance the acquisition of nine new Ultramax vessels and four sale and

leaseback agreements which increased the annual repayment installments. In addition, the Company’s

liabilities increased, due to the deliveries of eight vessels in the fourth quarter of 2022 and the increased

need for predelivery and other costs relating to their acquisition.

Cash and cash equivalents, including restricted cash, was $97.4 million on December 31, 2022 and $126.8

million as of December 31, 2021. Restricted cash mainly consists of the minimum liquidity requirements

under our loan facilities. As of December 31, 2022 and 2021, restricted cash amounted to $21.0 million

and $16.5 million, respectively. We consider highly liquid investments such as time deposits, certificates of

deposit and their equivalents with an original maturity of up to about three months to be cash equivalents.

Time deposits with maturity above three months are removed from cash and cash equivalents and are

separately presented as time deposits. In 2022, the time deposits above three months amounted to $46.5

million. Cash and cash equivalents are primarily held in U.S. dollars.

Net Cash Provided by Operating Activities

Net cash provided by operating activities increased by $69.2 million, or 77%. In 2022, net cash provided

by operating activities was $158.9 million compared to net cash provided by operating activities of

$89.7 million in 2021. This increase in cash from operating activities was attributable to increased revenues

as a result of better rates compared to 2021. This increase was partly offset by increased dry-docking costs

incurred for twelve vessels in 2022 compared to four vessels in 2021. Cash provided by operating activities

was also affected by OceanPal’s spin-off in 2021 which resulted in a gain of $15.3 million.

Net Cash Used in Investing Activities

Net cash used in investing activities was $273.1 million for 2022, which consists of $230.3 million paid for

vessel acquisitions and improvements due to new regulations; $4.4 million of proceeds from the sale of

one vessel in 2022; $46.5 million investment in time deposits with maturity above three months; and $0.7

million relating to the acquisition of equipment.

Net cash provided by investing activities was $13.4 million for 2021, which consists of $17.4 million paid

for vessel acquisitions and improvements due to new regulations; $33.7 million of proceeds from the sale

of four vessels in 2021; $0.4 million investment in DWM; $1.6 million relating to the acquisition of property

and equipment and $1 million contributed to OceanPal inc. in relation to the spin-off transaction.

Net Cash Provided by Financing Activities

Net cash provided by financing activities was $84.9 million for 2022, which consists of $275.1 million

proceeds from issuance of long term debt and finance liabilities; $102.8 million of indebtedness and finance

liabilities that we repaid; $5.8 million and $79.8 million of cash dividends paid on our preferred and common

stock, respectively; $3.8 million paid for repurchase of common stock; $5.3 million proceeds from issuance

of common stock; and $3.3 million of finance costs paid in relation to new loan agreements and finance

liabilities.

78

Net cash used in financing activities was $59.2 million for 2021, which consists of $101.3 million proceeds

from issuance of long term debt and bond; $93.2 million of indebtedness that we repaid; $5.8 million and

$8.8 million of dividends paid on our Series B Preferred Stock and common stock, respectively; $45.4

million paid for repurchase of common stock; and $7.6 million of finance costs paid in relation to new loan

agreements and bond.

For a detailed discussion of cash flows for the year ended December 31, 2021 compared to the year ended

December 31, 2020 please see “Item 5. Operating and Financial Review and Prospects - B. Liquidity and

Capital Resources” included in our 2021 Annual Report filed on Form 20-F with the SEC on April 27, 2022.

Capital Expenditures

We make capital expenditures in connection with vessel acquisitions and constructions, which we finance

with cash from operations, debt under loan facilities at terms acceptable to us, sale and leaseback

agreements and with funds from equity issuances. 

As of the date of this annual report, we have taken delivery of one Ultramax dry bulk vessel, under our

agreement with Sea Trade and issued 2,033,613 common shares to Sea Trade. We funded part of the

purchase price of the vessel through our $200 million loan agreement with Nordea, drawn in 2022. By April

2023, we also expect to take delivery of m/v

Nord Potomac

, which we have agreed to acquire from an

unaffiliated entity for $27.9 million. As of the date of this annual report we have paid a 10% advance of the

purchase price from cash on hand, and we expect to finance the balance of the purchase price through

debt and equity. On March 20, 2023, we also paid a cash dividend on common stock of $0.15 per share,

or $16.0 million which we funded through cash on hand. Finally, as of the date of this annual report, we

prepaid $20.0 million of debt outstanding with cash on hand.

As of the date of this report, we do not have other capital expenditures for vessel acquisitions or

constructions, but we expect to incur capital expenditures when our vessels undergo surveys. This process

of recertification may require us to reposition these vessels from a discharging port to shipyard facilities,

which will reduce our operating days during the period. We also incur capital expenditures for vessel

improvements to meet new regulations. The loss of earnings associated with the decrease in operating

days together with the capital needs for repairs and upgrades result in increased cash flow needs. We

expect to cover such capital expenditures and cash flow needs with cash from operations and cash on

hand. 

In the next twelve months, we will require capital to fund ongoing operations, vessel improvements to meet

requirements under new regulations, debt service, the payment of our preferred and common dividends

and the payment of our bareboat charters. In 2023, we expect to refinance our loan agreements maturing

in 2023 and early 2024 to decrease the installments required for debt service. Also, as of the date of this

annual report, we have contracted revenues covering around 75% of our ownership days in 2023, in time

charter agreements having an average time charter rate above our break-even rate as of December 31,

2022, and we have also fixed around 14% of our ownerships days in 2024. We believe that contracted and

anticipated revenues will result in internally generated cash flows and together with available cash, which

as of December 31, 2022 amounted to $76.4 million (excluding $21.0 million of compensating cash

balances) and having additional investment in time deposits of $46.5 million which will mature during 2023,

will be sufficient to fund such capital requirements. Should time charter rates remain at current levels as

our time charter agreements are due for renewal during the year, we believe that we will be able to have

sufficient funds to cover our capital expenditures in the long-term. 

Long-term Debt and Finance Liabilities

As of December 31, 2022, we had $530.1 million of long term debt outstanding under our facilities and

Bond, under the agreements described below.

79

Secured Term Loans

On December 18, 2014, two of our wholly owned subsidiaries entered into a loan agreement with BNP for

a loan facility of $53.5 million to finance part of the acquisition cost of the

G. P. Zafirakis

 and the

P. S.

Palios

 maturing on November 30, 2021. On June 29, 2020, we entered into a loan agreement to refinance

the loan and extend its maturity to May 19, 2024. The loan is repayable in equal semi-annual installments

of approximately $1.6 million and a balloon of $23.6 million payable together with the last installment. The

refinanced loan bears interest at LIBOR plus a margin of 2.5%, increased from a margin of 2% of the

original loan.

On March 17, 2015, eight of our wholly owned subsidiaries entered into a loan facility with Nordea for an

amount of $93.1 million, maturing on March 19, 2021. On May 7, 2020, we entered into a new loan

agreement to refinance the loan and extend its maturity to March 19, 2022. On July 29, 2021, we entered

into a supplemental agreement with Nordea, pursuant to which the borrowers exercised their options to

extend the loan maturity to March 2024 and to draw down an additional amount of $460,000. In July 2022,

we prepaid an amount of $4.8 million due to the sale of

Baltimore

 to OceanPal. Upon the prepayment, the

loan is repayable in equal consecutive quarterly instalments of approximately $1.6 million and a balloon of

$23.3 million, payable together with the last instalment. The loan bears interest at LIBOR plus a margin of

2.25%, increased from a margin of 2.1% of the original loan.

On March 26, 2015, three of our wholly owned subsidiaries entered into a loan agreement with ABN AMRO

Bank N.V. , or ABN, for a secured term loan facility of up to $53.0 million, maturing on March 30, 2021, to

refinance part of the acquisition cost of the vessels

New York

,

Myrto

 and

Maia

 of which $50.2 million was

drawn on March 30, 2015. On June 27, 2019, two of our wholly owned subsidiaries entered into a $25.0

million term loan agreement with ABN, maturing on June 28, 2024, to refinance the acquisition cost of the

vessels

Selina,

Ismene

and

 Houston

. On May 22, 2020, we signed a term loan facility with ABN with the

purpose to combine the two loans outstanding with ABN and extend the maturity of the first loan, maturing

on March 30, 2021 to the maturity of the second loan, maturing on June 30, 2024. The first loan is repayable

in equal consecutive quarterly instalments of about $1.0 million and a balloon of $13.4 million payable

together with the last instalment and bears interest at LIBOR plus a margin of 2.4% increased from a margin

of 2.0% of the original loan. The second loan is payable in consecutive quarterly instalments of $0.8 million

each and a balloon instalment of $9.0 million payable together with the last instalment June 28, 2024. The

loan bears interest at LIBOR plus a margin of 2.25%.

On May 20, 2021, we, through six wholly owned subsidiaries, signed a $91 million sustainability linked loan

facility with ABN dated May 14, 2021, which was used to refinance existing loan agreements with other

banks. On August 22, 2022, and following the sale and leaseback agreements of the vessels Santa Barbara

and New Orleans, which were mortgaged to secure the loan, we prepaid an amount of $30.8 million, which

was the part of the loan attributed to the two vessels. Following the prepayment, the loan is repayable in

consecutive quarterly installments of $2.0 million each and a balloon of $13.6 million payable together with

the last installment on May 20, 2026. The loan bears interest at LIBOR plus a margin of 2.15% per annum,

which may be adjusted annually by maximum 10 basis points upwards or downwards, subject to the

performance under certain sustainability KPIs. 

On January 7, 2016, three of our wholly owned subsidiaries entered into a secured loan agreement with

the Export-Import Bank of China for a loan of up to $75.7 million in order to finance part of the construction

cost of three vessels. On January 4, 2017, we drew down $57.24 million to finance part of the construction

cost of

San Francisco

 and

Newport News

, both delivered on January 4, 2017. The loan is payable in 60

equal quarterly instalments of about $1.0 million each, the last of which is payable by January 4, 2032, and

bears interest at LIBOR plus a margin of 2.3%.

80

On July 13, 2018, we entered into a loan agreement with BNP for a secured term loan facility of $75 million.

The loan has a term of five years and is repayable in 20 consecutive quarterly instalments of $1.56 million

and a balloon instalment of $43.75 million payable together with the last instalment on July 17, 2023. The

loan bears interest at LIBOR plus a margin of 2.3%.

On March 14, 2019, two of our wholly owned subsidiaries entered into a term loan agreement with DNB

Bank ASA for a loan of $19.0 million, to refinance the loan of

Crystalia

 and

Atalandi

, which was repaid in

February 2019. The loan is repayable in 20 consecutive quarterly instalments of $0.5 million and a balloon

of $9.5 million payable together with the last instalment on March 14, 2024. The loan bears interest at

LIBOR plus a margin of 2.4%. On March 14, 2023, we prepaid in full this loan amounting to $11.8 million.

On September 30, 2022, we entered into a $200 million loan agreement to finance the acquisition price of

9 Ultramax vessels. We drew down $197.2 million under the loan, in tranches for each vessel on their

delivery to us. On December 12, 2022, we prepaid $21.9 million under the loan, attributed to DSI

Andromeda, following the vessel’s sale under a sale and leaseback agreement. Following this prepayment,

the loan is repayable in 20 equal quarterly instalments of an aggregate amount of $3.7 million, and a balloon

amounting to $100.9 million payable together with the last instalment on October 11, 2027. The loan bears

interest at term SOFR plus a margin of 2.25%. 

Under the secured term loans outstanding as of December 31, 2022, 34 vessels of our fleet were

mortgaged with first preferred or priority ship mortgages. Additional securities required by the banks include

first priority assignment of all earnings, insurances, first assignment of time charter contracts with duration

that exceeds a certain period, pledge over the shares of the borrowers, manager’s undertaking and

subordination and requisition compensation and either a corporate guarantee by Diana Shipping Inc. (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. Furthermore, the secured term loans contain cross default provisions and additionally we are

not permitted to pay any dividends following the occurrence of an event of default. 

As of December 31, 2021 and 2022, and the date of this report, we were in compliance with all of our loan

covenants.

Senior Unsecured Bond due 2026

On June 22, 2021, we issued a $125 million senior unsecured bond maturing in June 2026. 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 was offered to the

investors of the 9.5% Bond, part of whom exchanged their bonds, including entities affiliated with our

executive officers and directors who exchanged their securities and participated with an aggregate principal

amount of $21 million. The bond pays interest from June 22, 2021 at a US Dollar fixed-rate coupon of

8.375% payable semi-annually in arrears in June and December of each year. The bond is callable in

whole or in parts in June 2024 at a price equal to 103.35% of nominal value; between June 2025 to

December 2025 at a price equal to 101.675% of the nominal value and after December 2025 at a price

equal to 100% of nominal value. The bond includes financial and other covenants and is trading at Oslo

Børs effective February 1, 2022. As of December 31, 2022 and as of the date of this annual report, we did

not and have not designated any financial instruments as accounting hedging instruments. 

Finance Liabilities

81

On March 15, 2022, we entered into a sale and leased back agreement for

Florida

, which we sold for $50

million, and leased back for a period of ten years, to finance the acquisition price of the vessel. Under the

bareboat charter, we have the option to repurchase the vessel after the end of the third year of the charter

period, or each year thereafter, until the termination of the lease, at specific prices, subject to irrevocable

and written notice to the owner. If not repurchased earlier, we have the obligation to repurchase the vessel

for $16.4 million, on the expiration of the lease on the tenth year. 

On August 17, 2022, we entered into two sale and leaseback agreements with two unaffiliated Japanese

third parties for

New Orleans

 and

Santa Barbara

, for an aggregate amount of $66.4 million and prepaid a

bank loan attributed to these vessels. The vessels were delivered to their buyers on September 8, 2022

and September 12, 2022, respectively and we chartered in both vessels under bareboat charter parties for

a period of eight years, each. We have purchase options beginning at the end of the third year of each

vessel's bareboat charter period, or each year thereafter, until the termination of the lease, at specific

prices, subject to irrevocable and written notice to the owner. If not repurchased earlier, we have the

obligation to repurchase the vessels for $13 million, each, on the expiration of each lease on the eighth

year.

On December 6, 2022, we sold

DSI Andromeda

 to an unrelated third party for $29.9 million and prepaid a

bank loan attributed to the vessel. We leased back the vessel under a bareboat agreement for a period of

ten years. Under the bareboat charter, we have the option to repurchase the vessel after the end of the

third year of the charter period, or each year thereafter, until the termination of the lease, at specific prices,

subject to irrevocable and written notice to the owner. If not repurchased earlier, we have the obligation to

repurchase the vessel for $8.1 million, on the expiration of the lease on the tenth year.

C. Research and development, patents and licenses

We incur from time to time expenditures relating to inspections for acquiring new vessels that meet our

standards. Such expenditures are insignificant and they are expensed as they incur.

D. Trend information

Demand for dry bulk vessel services is influenced by global financial conditions. Global financial markets

and economic conditions have been, and continue to be, volatile. Our results of operations depend primarily

on charter hire rates that we are able to realize, and the demand for dry bulk vessel services. The Baltic

Dry Index, or the BDI, has long been viewed as the main benchmark to monitor the movements of the dry

bulk vessel charter market and the performance of the entire dry bulk shipping market. In 2022, the BDI

ranged from a high of 3369 on May 23, 2022 to a low of 965 on August 31, 2022 to drop again to a low of

530 on February 16, 2023. The BDI has since recovered from the February 2023 levels and closed at 1484

on March 23, 2023. Although there can be no assurance that the dry bulk charter market will not decline

further, as of the date of this annual report, we have fixed about 75% of our fleet ownership days at rates

above our break-even rate. Nevertheless, our revenues and results of operations in 2023 will be subject to

demand for our services, the level of inflation, market disruptions and interest rates. Demand for our dry

bulk oceangoing vessels is dependent upon economic growth in the world’s economies, seasonal and

regional changes in demand and changes to the capacity of the global dry bulk fleet and the sources and

supply for dry bulk cargo transported by sea. Continued adverse economic, political or social conditions or

other developments could further negatively impact charter rates and therefore have a material adverse

effect on our business and results of operations.

E. Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based upon our

consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The

preparation of those financial statements requires us to make estimates and judgments that affect the

82

reported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent

assets and liabilities at the date of our financial statements. Actual results may differ from these estimates

under different assumptions and conditions.

Impairment of Vessels

Long-lived assets are reviewed for impairment whenever events or changes in circumstances (such as

market conditions, obsolesce or damage to the asset, potential sales and other business plans) indicate

that the carrying amount of an asset may not be recoverable. When the estimate of undiscounted projected

net operating cash flows, excluding interest charges, expected to be generated by the use of an asset over

its remaining useful life and its eventual disposition is less than its carrying amount, the Company evaluates

the asset for impairment loss. Measurement of the impairment loss is based on the fair value of the asset,

determined mainly by third party valuations. 

For vessels, we calculate undiscounted projected net operating cash flows by considering the historical

and estimated vessels’ performance and utilization with the significant assumption being future charter

rates for the unfixed days, using the most recent 10-year average of historical 1 year time charter rates

available for each type of vessel over the remaining estimated life of each vessel, net of commissions.

Historical ten-year blended average one-year time charter rates are in line with the Company’s overall

chartering strategy, they reflect the full operating history of vessels of the same type and particulars with

the Company’s operating fleet and they cover at least a full business cycle, where applicable. When the

10-year average of historical 1 year time charter rates is not available for a type of vessels, the Company

uses the average of historical 1 year time charter rates of the available period. The historical ten-year

average rate used in 2022 to calculate undiscounted projected net operating cash flow was $12,431 for

Panamax, Kamsarmax and Post-Panamax vessels, $16,876 for Ultramax vessels and $16,128 for our

Capesize and Newcastlmax vessels, compared to $11,363, nil and $15,543, respectively in 2021. Other

assumptions used in developing estimates of future undiscounted cash flow are the charter rates calculated

for the fixed days using the fixed charter rate of each vessel from existing time charters, the expected

outflows for scheduled vessels’ maintenance; vessel operating expenses; fleet utilization, and the vessels’

residual value if sold for scrap. Assumptions are in line with our historical performance and our expectations

for future fleet utilization under our current fleet deployment strategy. The difference between the carrying

amount of the vessel plus unamortized deferred costs and their fair value is recognized in the Company's

accounts as impairment loss. Although no impairment loss was identified or recorded in 2022, according

to our assessment, the carrying value plus unamortized deferred cost of vessels for which impairment

indicators existed as of December 31, 2022, was $574.8 million.

Historically, the market values of vessels have experienced volatility, which from time to time may be

substantial. As a result, the charter-free market value of certain of our vessels may have declined below

those vessels’ carrying value plus unamortized deferred cost, even though we would not impair those

vessels’ carrying value under our accounting impairment policy. Based on: (i) the carrying value plus

unamortized deferred cost of each of our vessels as of December 31, 2022 and 2021 and (ii) what we

believe the charter-free market value of each of our vessels was as of December 31, 2022 and 2021, the

aggregate carrying value of 17 and 2 of the vessels in our fleet as of December 31, 2022 and 2021,

respectively, exceeded their aggregate charter-free market value by approximately $83 million and $6

million, respectively, as noted in the table below. This aggregate difference represents the approximate

analysis of the amount by which we believe we would have to reduce our net income or increase our loss

if we sold all of such vessels at December 31, 2022 and 2021, on a charter-free basis, on industry standard

terms, in cash transactions, and to a willing buyer where we were not under any compulsion to sell, and

where the buyer was not under any compulsion to buy. For purposes of this calculation, we have assumed

that these 17 and 2 vessels would be sold at a price that reflects our estimate of their charter-free market

values as of December 31, 2022 and 2021, respectively.

83

Vessel

Dwt

Year Built

Carrying Value plus unamortized

deferred cost 

(in millions of US dollars)

2022

2021

1

Alcmene

93,193

2010

10.1

10.6

2

Aliki

180,235

2005

13.0

14.3

3

Amphitrite

98,697

2012

14.7

15.6

4

Artemis

76,942

2006

11.9

13.3

5

Astarte

81,513

2013

19.1

18.7

6

Atalandi

77,529

2014

16.4

17.2

7

Baltimore

177,243

2005

-

17.5

8

Boston

177,828

2007

18.2

*

16.6

9

Calipso

73,691

2005

-

-

10

Coronis

74,381

2006

-

-

11

Crystalia

77,525

2014

16.1

16.9

12

Electra

87,150

2013

14.9

13.8

13

G.P. Zafirakis

179,492

2014

23.0

23.8

14

Houston

177,729

2009

19.4

20.8

15

Ismene

77,901

2013

10.6

11.2

16

Leto

81,297

2010

13.7

14.7

17

Los Angeles

206,104

2012

24.8

24.2

18

Maera

75,403

2013

12.3

10.9

19

Maia

82,193

2009

13.4

14.0

20

Medusa

82,194

2010

13.1

14.2

21

Melia

76,225

2005

10.8

11.4

22

Myrsini

82,117

2010

15.1

16.5

23

Myrto

82,131

2013

18.9

18.2

24

Naias

73,546

2006

-

-

25

New Orleans

180,960

2015

33.1

*

34.9

26

New York

177,773

2010

14.5

15.5

27

Newport News

208,021

2017

42.4

*

43.6

28

Oceanis

75,211

2001

-

-

29

P.S. Palios

179,134

2013

37.4

*

36.9

*

30

Phaidra

87,146

2013

13.0

13.6

31

Philadelphia

206,040

2012

25.5

24.4

32

Polymnia

98,704

2012

15.0

15.9

33

Protefs

73,630

2004

-

-

34

Salt Lake City

171,810

2005

-

-

35

San Francisco

208,006

2017

42.5

*

44.6

36

Santa Barbara

179,426

2015

36.4

*

38.2

*

37

Seattle

179,362

2011

22.6

24.0

38

Selina

75,700

2010

9.3

10.1

39

Semirio

174,261

2007

17.6

*

15.7

40

Sideris GS

174,186

2006

-

-

41

LEONIDAS P.C.

82,165

2011

21.7

*

-

42

Florida

182,063

2022

59.1

*

-

43

DSI Pyxis

60,362

2018

36.1

*

-

44

DSI Pollux

60,446

2015

31.4

*

-

45

DSI Phoenix

60,456

2017

34.3

*

-

46

DSI Polaris

60,404

2018

36.9

*

-

47

DSI Andromeda

60,309

2016

33.3

*

-

48

DSI Aquila

60,309

2015

31.5

*

-

49

DSI Pegasus

60,508

2015

30.3

*

-

50

DSI Altair

60,309

2016

32.5

*

-

Total 

5,748,960

966

652

84

_______________________________

*

Indicates dry bulk vessels for which we believe, as of December 31, 2022 and 2021, the charter-free market value

was lower than the vessel’s carrying value plus unamortized deferred cost. We believe that the aggregate carrying

value plus unamortized deferred cost of these vessels exceeded their aggregate charter-free market value by

approximately $83 million and $6 million, respectively. 

Our estimates of charter-free market value assume that our vessels were all in good and seaworthy

condition without need for repair and if inspected would be certified in class without notations of any kind.

Our estimates are based on information available from various industry sources, including: 

●

reports by industry analysts and data providers that focus on our industry and related dynamics

affecting vessel values; 

●

news and industry reports of similar vessel sales; 

●

offers that we may have received from potential purchasers of our vessels; and 

●

vessel sale prices and values of which we are aware through both formal and informal

communications with shipowners, shipbrokers, industry analysts and various other shipping

industry participants and observers.

As we obtain information from various industry and other sources, our estimates of charter-free market

value are inherently uncertain. In addition, vessel values are highly volatile; as such, our estimates may

not be indicative of the current or future charter-free market value of our vessels or prices that we could

achieve if we were to sell them. We also refer you to the risk factor in “Item 3. Key Information—D. Risk

Factors” entitled “

The market values of our vessels could decline, which could limit the amount of funds

that we can borrow and could trigger breaches of certain financial covenants contained in our loan facilities,

which could adversely affect our operating results, and we may incur a loss if we sell vessels following a

decline in their market values

” and the discussion under the heading "Item 4. Information on the

Company—B. Business Overview–Vessel Prices.”

Our impairment test exercise is sensitive to variances in the time charter rates. Our current analysis, which

also involved a sensitivity analysis by assigning possible alternative values to this significant input,

indicated that time charter rates would need to be reduced by 9% to result in impairment of individual long-

lived assets with indication of impairment. However, there can be no assurance as to how long charter

rates and vessel values will remain at their current levels. If charter rates decrease and remain depressed

for some time, it could adversely affect our revenue and profitability and future assessments of vessel

impairment.

A comparison of the average estimated daily time charter equivalent rate used in our impairment analysis

with the average “break-even rate” for each major class of vessels is presented below: 

Average estimated daily time

charter equivalent rate used

Average break-even 

rate

Ultramax

$16,876

$12,609

Panamax/Kamsarmax/Post-Panamax

$12,431

$9,459

Capesize/Newcastlemax

$16,128

$11,911

It should be noted that as of December 31, 2022, seventeen of our vessels, having indication of impairment,

would be affected by a reduction in time charter rates below the average break-even rate. Additionally, the

use of the 1-year, 3-year and 5-year average blended rates would not have any effect on the Company’s

impairment analysis and as such on the Company’s results of operations:

85

Vessel type

1-year

(period)

Impairment

charge

(in USD

million)

3-year

(period)

Impairment

charge

(in USD

million)

5-year

(period)

Impairment

charge

(in USD

million)

Ultramax

$23,025

-

$19,513

-

$16,876

-

Panamax/Kamsarmax/Post-

Panamax

$20,387

-

$17,616

-

$15,551

-

Capesize/Newcastlemax

$19,539

-

$19,295

-

$18,477

-

Item 6. Directors, Senior Management and Employees

A. Directors and Senior Management

Set forth below are the names, ages and positions of our directors and executive officers. Our Board of

Directors consists of eleven members and is elected annually on a staggered basis, and each director

elected holds office for a three-year term and until his or her successor is elected and has qualified, except

in the event of such director’s death, resignation, removal or the earlier termination of his or her term of

office. Officers are appointed from time to time by our board of directors and hold office until a successor

is appointed or their employment is terminated.

Name

Age

Position

Semiramis Paliou

48

Class III Director, Chief Executive Officer 

Simeon Palios

81

Class I Director, and Chairman

Anastasios Margaronis

67

Class I Director and President

Ioannis Zafirakis

51

Class I Director, Chief Financial Officer, Chief

Strategy Officer, Treasurer and Secretary

Konstantinos Psaltis

84

Class II Director

Kyriacos Riris

73

Class II Director

Apostolos Kontoyannis

74

Class III Director

Konstantinos Fotiadis 

72

Class III Director

Eleftherios Papatrifon 

53

Class II Director

Simon Frank Peter Morecroft

64

Class II Director

Jane Sih Ho Chao

47

Class I Director

Maria Dede

50

Chief Accounting Officer

Margarita Veniou

44

Chief Corporate Development, Governance &

Communications Officer

Maria Christina Tsemani

44

Chief People Officer

The term of our Class I directors expires in 2024, the term of our Class II directors expires in 2025, and the

term of our Class III directors expires in 2023. 

Mr. Simon Morecroft was elected and appointed as a Class II Director on May 18, 2022.

Mr. Eleftherios Papatrifon served as Chief Operating Officer of the Company until February 2023, when he

was appointed as Class II Director and member of the Executive Committee on February 22, 2023 to serve

until the next scheduled election for Class II directors.

Ms. Jane Chao was appointed as a Class I Director on February 22, 2023 to serve until the next scheduled

election for Class I directors.

86

The business address of each officer and director is the address of our principal executive offices, which

are located at Pendelis 16, 175 64 Palaio Faliro, Athens, Greece.

Biographical information with respect to each of our directors and executive officers is set forth below.

Semiramis Paliou

 has served as a Director of Diana Shipping Inc. since March 2015, and as the

Company’s Chief Executive Officer, Chairperson of the Executive Committee and member of the

Sustainability Committee since March 2021. Ms. Paliou has been the Chief Executive Officer of Diana

Shipping Services S.A. since March 2021. She also serves as a Director of OceanPal Inc. since April 2021

and as the Chairperson of the Board of Directors and of the Executive Committee of OceanPal Inc. since

November 2021. Ms. Paliou is the Chairperson of the Hellenic Marine Environment Protection Association

(HELMEPA), a position she has held since June 2020, while she joined its board of directors in March

2018. As of June 2021, she serves as Vice -Chairperson of INTERMEPA. She is also a member of the

board of directors of the UK P&I Club since November 2020, member of the Union of Greek Shipowners

since February 2022 and member of the Global Maritime Forum since April 2022. She is Vice-Chairperson

of the Greek committee of Det Norske Veritas, a member of the Greek committee of Nippon Kaiji Kyokai

and a member of the Greek committee of Bureau Veritas. 

Ms. Paliou has over 20 years of experience in shipping operations, technical management and crewing.

She began her career at Lloyd’s Register of Shipping where she worked as a trainee ship surveyor from

1996 to 1998. She was then employed by Diana Shipping Agencies S.A. From 2007 to 2010 she was

employed as a Director and President of Alpha Sigma Shipping Corp. From February 2010 to November

2015, she was the Head of the Operations, Technical and Crew department of Diana Shipping Services

S.A. From November 2015 to October 2016, she served as Vice-President of the same company. From

November 2016 to the end of July 2018, she served as Managing Director and Head of the Technical,

Operations, Crew and Supply department of Unitized Ocean Transport Limited. From November 2018 to

February 2020, she worked as Chief Operating Officer of Performance Shipping Inc. From October 2019

until February 2021, Ms. Paliou served as Deputy Chief Executive Officer of Diana Shipping Inc. She also

served as member of the Executive Committee and the Chief Operating Officer of the Company from

August 2018 until February 2021. 

Ms. Paliou obtained her BSc in Mechanical Engineering from Imperial College, London and her MSc in

Naval Architecture from University College, London. She completed courses in “Finance for Senior

Executives”, in “Authentic Leader Development” and a certificate program on “Sustainable Business

Strategy” all at Harvard Business School. Ms. Paliou is also the daughter of Simeon Palios, the Company’s

Chairman.

Simeon P. Palios

 has served as the Chairman of the Board of Directors of Diana Shipping Inc. since

February 2005 and a Director of the Company since March 1999. He served as the Company’s Chief

Executive Officer from February 2005 until February 2021. Mr. Palios also serves as the President of Diana

Shipping Services S.A. which was formed in 1986. Mr. Palios has experience in the shipping industry since

1969 and expertise in technical and operational issues. He has served as an ensign in the Greek Navy for

the inspection of passenger boats on behalf of Ministry of Merchant Marine and is qualified as a naval

architect and marine engineer. Mr. Palios was the founder of Diana Shipping Agencies S.A., where he

served as Managing Director until November 2004, having the overall responsibility for its activities. From

January 13, 2010 until February 28, 2022, Mr. Palios also served as the Chairman of the Board of Directors

of Performance Shipping Inc. and as Chief Executive Officer until October 2020.

Mr. Palios is a member of various leading classification societies worldwide and he is a member of the

board of directors of the United Kingdom Freight Demurrage and Defense Association Limited. Since

October 7, 2015, Mr. Palios has served as President of the Association “Friends of Biomedical Research

87

Foundation, Academy of Athens”. He holds a bachelor's degree in Marine Engineering from Durham

University.

Anastasios C. Margaronis

 has served as President and a Director of Diana Shipping Inc. since February

2005. He is also member of the Executive Committee of the Company. Mr. Margaronis is the Deputy

President of Diana Shipping Services S.A., where he also serves as a Director and Secretary. Mr.

Margaronis has experience in the shipping industry, including in ship finance and insurance, since 1980.

Prior to February 21, 2005, Mr. Margaronis was employed by Diana Shipping Agencies S.A. in 1979 and

performed on our behalf the services he now performs as President. He joined Diana Shipping Agencies

S.A. in 1979 and has been responsible for overseeing our vessels’ insurance matters, including hull and

machinery, protection and indemnity and war risks insurances. From January 2010 to February 2020, he

served as Director and President of Performance Shipping Inc. 

In addition, Mr. Margaronis is a member of the Greek National Committee of the American Bureau of

Shipping. He has also been on the Members’ Committee of the Britannia Steam Ship Insurance Association

Limited since October 2022. From October 2005 to October 2019, he was a member of the board of

directors of the United Kingdom Mutual Steam Ship Assurance Association (Europe) Limited. 

He holds a bachelor's degree in Economics from the University of Warwick and a master's of science

degree in Maritime Law from the Wales Institute of Science and Technology.

Ioannis Zafirakis

has served

as a Director and Secretary of Diana Shipping Inc. since February 2005, as

Chief Financial Officer since February 2020 (Interim Chief Financial Officer until February 2021), as

Treasurer since February 2020 and as Chief Strategy Officer since January 2021. Mr. Zafirakis is also a

member of the Executive Committee of the Company. During his career at Diana Shipping Inc., he held

various executive positions such as Chief Operating Officer, Executive Vice-President and Vice-President.

In addition, Mr. Zafirakis has served as a Director and Treasurer of Diana Shipping Services S.A. since

January 2013 and Chief Financial Officer since February 2021. He has served as a Director and Secretary

of OceanPal Inc. since April 2021 and as the President and Interim Chief Financial Officer of the company

since November 2021. Mr. Zafirakis is also member of the Executive Committee of OceanPal Inc. 

Prior to joining Diana Shipping, from June 1997 to February 2005, Mr. Zafirakis was employed by Diana

Shipping Agencies S.A., where he held several positions in finance and accounting. From January 2010 to

February 2020, he worked as Director and Secretary of Performance Shipping Inc., where he also held

various executive positions such as Chief Operating Officer and Chief Strategy Officer. 

Mr. Zafirakis is a member of the Business Advisory Committee of the Shipping Programs of ALBA Graduate

Business School at The American College of Greece. He has obtained a certificate in “Blockchain

Economics: An Introduction to Cryptocurrencies” from Panteion University of Social and Political Sciences

in Greece. He holds a bachelor's degree in Business Studies from City University Business School in

London and a master's degree in International Transport from the University of Wales in Cardiff.

Eleftherios (Lefteris) A. Papatrifon

 has served as a Director and a member of the Executive Committee

of Diana Shipping Inc. since February 2023. Prior to this appointment, he served as Chief Operating Officer

of the Company from March 2021 to February 2023. Mr. Papatrifon also serves as a Director of OceanPal

Inc. and a member of its Executive Committee, positions he has held since November 2021. From

November 2021 to January 2023, he served as Chief Executive Officer of OceanPal Inc. 

Prior to joining Diana Shipping Inc., he was Chief Executive Officer, Co-Founder and Director of Quintana

Shipping Ltd, a provider of dry bulk shipping services, from 2010 until the company’s successful sale of

assets and consequent liquidation in 2017. Previously, for a period of approximately six years, he served

as the Chief Financial Officer and Director of Excel Maritime Carriers Ltd. Prior to that, Mr. Papatrifon

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served for approximately 15 years in a number of corporate finance and asset management positions, both

in the USA and in Greece. 

Mr. Papatrifon holds undergraduate (BBA) and graduate (MBA) degrees from Baruch College (CUNY). He

is also a member of the CFA Institute and a CFA charterholder.

Konstantinos Psaltis

 has served as a Director of Diana Shipping Inc. since March 2005, the Chairman of

its Nominating Committee since May 2015 and a member of its Compensation Committee since May 2017.

Mr. Psaltis serves also as President of Ormos Compania Naviera S.A., a company that specializes in

operating and managing multipurpose container vessels, where from 1981 to 2006, he held the position of

Managing Director. Prior to joining Ormos Compania Naviera S.A., Mr. Psaltis simultaneously served as a

technical manager in the textile manufacturing industry and as a shareholder of shipping companies

managed by M.J. Lemos. From 1961 to 1964, he served as ensign in the Royal Hellenic Navy. 

He holds a degree in Mechanical Engineering from Technische Hochschule Reutlingen & Wuppertal and

a bachelor's degree in Business Administration from Tubingen University in Germany.

Kyriacos Riris

 has served as a Director of Diana Shipping Inc. since March 2015 and a member of its

Nominating Committee since May 2015. From May 2022, he is also the Chairman of the Audit Committee

of the Company. 

Commencing in 1998, Mr. Riris served in a series of positions in PricewaterhouseCoopers (PwC), Greece,

including Senior Partner, Managing Partner of the Audit and the Advisory/Consulting Lines of Service. From

2009 to 2014, Mr. Riris served as Chairman of the Board of Directors of PricewaterhouseCoopers (PwC),

Greece. Prior to its merger with PwC, Mr. Riris was employed at Grant Thornton, Greece, where in 1984

he became a Partner. From 1976 to 1982, Mr. Riris was employed at Arthur Young, Greece. Since

November 2018, Mr. Riris has served as Chairman of Titan Cement International S.A., a Belgian

corporation. 

Mr. Riris holds a degree from Birmingham Polytechnic (presently Birmingham City University) and

completed his professional qualifications with the Association of Certified Chartered Accountants (ACCA)

in the UK in 1975, becoming a Fellow of the Association of Certified Accountants in 1985.

Apostolos Kontoyannis

 is a Director, the Chairperson of the Compensation Committee and a member of

the Audit Committee of Diana Shipping Inc., positions he has held since March 2005. Since March 2021,

Mr. Kontoyannis also serves as the Chairperson of the Sustainability Committee of the Company. 

Mr. Kontoyannis has over 40 years of experience in shipping finance and currently serves as financial

consultant to various shipping companies. He was employed by Chase Manhattan Bank N.A. in Frankfurt

(Corporate Bank), London (Head of Shipping Finance South Western European Region) and Piraeus

(Manager, Ship Finance Group) from 1975 to 1987. 

Mr. Kontoyannis holds a bachelor's degree in Finance and Marketing and a master's degree in Business

Administration and Finance from Boston University.

Konstantinos Fotiadis

 has served as a Director of Diana Shipping Inc. since 2017. Mr. Fotiadis served

as an independent Director and as the Chairman of the Audit Committee of Performance Shipping Inc.

from the completion of Performance Shipping Inc.’s private offering until February 2011. From 1990 until

1994, Mr. Fotiadis served as the President and Managing Director of Reckitt & Colman (Greece), part of

the British multinational Reckitt & Colman plc, manufacturers of household, cosmetics and health care

products. From 1981 until its acquisition in 1989 by Reckitt & Colman plc, Mr. Fotiadis was a General

Manager at Dr. Michalis S.A., a Greek company manufacturing and marketing cosmetics and health care

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products. From 1978 until 1981, Mr. Fotiadis held positions with Esso Chemicals Ltd. and Avrassoglou S.A.

Mr. Fotiadis has also been active as a business consultant and real estate developer. 

Mr. Fotiadis holds a degree in Economics from Technische Universitaet Berlin and in Business

Administration from Freie Universitaet Berlin.

Simon Morecroft

 has served as a Director of Diana Shipping Inc. since May 2022. He also serves as a

Director of Enarxis Ltd, a shipping consultancy company. Mr. Morecroft spent his career in the shipbroking

industry as a Sale and Purchase broker. He joined Braemar Shipbrokers Ltd (now Braemar ACM

Shipbroking) in 1983 becoming a director in 1986 and remained on the board until his retirement in August

2021. During this time Braemar grew from a boutique broking operation into one of the world’s most

successful fully integrated shipbroking companies with a listing on the London Stock Exchange.

Mr. Morecroft graduated from Oxford University in 1980 with a Masters in PPE. 

Jane Chao

 has served as a Director of Diana Shipping Inc. since February 2023. She also serves as a

director of Wah Kwong Shipping Holdings Limited, a position she has held since 2008. Ms. Chao is the

managing director of Wah Kwong China Investment which includes residential and commercial properties

as well as hospitality businesses in Shanghai and Wuxi. Ms. Chao has founded her own art consultancy

company Galerie Huit and lifestyle gallery Maison Huit in 2009 and recently, the non-profit Chao-Lee Art

Foundation in 2022. 

Ms. Chao has also served as a Council Member for Changing Young Lives Foundation helping

underprivileged children in Hong Kong and China from 2014 to 2020.

Maria Dede

 is the Chief Accounting Officer of Diana Shipping Inc., a position she has held since September

2005. Since Mach 2020, Ms. Dede also serves as Finance Manager of Diana Shipping Services S.A. In

2000, Ms. Dede joined the Athens branch of Arthur Andersen, which merged with Ernst and Young (Hellas)

in 2002, where she served as an external auditor of shipping companies until 2005. From 1996 to 2000

Ms. Dede was employed by Venus Enterprises S.A., a ship-management company, where she held a

number of positions primarily in accounting and supplies. 

Ms. Dede holds a Bachelor’s degree in Maritime Studies from the University of Piraeus, a Master’s degree

in Business Administration from the ALBA Graduate Business School and a Master’s degree in Auditing

and Accounting from the Greek Institute of Chartered Accountants.

Margarita Veniou

 has served as the Chief Corporate Development, Governance & Communications

Officer of Diana Shipping Inc. since July 2022. From September 2004 until June 2022, she served in the

Corporate Planning & Governance Department of Diana Shipping Inc., holding various positions as

Associate, Officer and Manager. Ms. Veniou is also the Corporate Development, Governance &

Communications Manager of Diana Shipping Services S.A., a position she has held since 2022, and from

2004 to 2022 she held various other positions at Diana Shipping Services S.A. In addition, since November

2021, Ms. Veniou has served as the Chief Corporate Development & Governance Officer of OceanPal

Inc.. She is the General Manager of Steamship Shipbroking Enterprises Inc., a position she has held since

April 2014. 

From January 2010 to February 2020, Ms. Veniou also held the position of Corporate Planning &

Governance Officer of Performance Shipping Inc.

Ms. Veniou holds a bachelor's degree in Maritime Studies and a master's degree in Maritime Economics

& Policy from the University of Piraeus. She completed the Sustainability Leadership and Corporate

Responsibility course at the London Business School and has obtained the Certification in Shipping

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Derivatives from the Athens University of Economics and Business. Ms. Veniou is also a member of WISTA

Hellas and ISO 14001 certified by Lloyd’s Register.

Maria-Christina Tsemani

 has served as the Company’s Chief People Officer since July 2022. Ms.

Tsemani also serves as HR Manager of Diana Shipping Services S.A., a position she has held since

October 2020. 

Ms. Tsemani has over 18 years of experience in HR positions with multinational companies and institutional

bodies. Before joining Diana Shipping, Ms. Tsemani was People Acquisition and Development Manager of

Vodafone Greece. During her career in Vodafone from 2008 to 2020, she held various other positions,

including Senior HR Business Partner and Organizational Effectiveness and Reward Manager. From 2004

to 2008, Ms. Tsemani worked as a Senior HR Consultant in PricewaterhouseCoopers (PwC). From 2001

to 2004, she served as Project Manager in the European Commission, based in Luxembourg. 

Ms. Tsemani holds a bachelor’s degree in Mathematical Sciences and a master’s of science degree in

Applied Statistics from the University of Oxford, UK. 

B. Compensation

Aggregate executive compensation (including amounts paid to Steamship) for 2022 was $6.6 million. Since

June 1, 2010, Steamship, a related party, as described in "Item 7. Major Shareholders and Related Party

Transactions—B. Related Party Transactions" has provided to us brokerage services. Under the Brokerage

Services Agreements in effect during 2022, fees for 2022 amounted to $3.3 million and we also paid

commissions for vessel sales and purchases amounting to $1.2 million. We consider fees under these

agreements to be part of our executive compensation due to the affiliation with Steamship. 

Non-employee directors receive annual compensation in the amount of $52,000 plus reimbursement of

out-of-pocket expenses. In addition, each director serving as chairman of a committee receives additional

annual compensation of $26,000, plus reimbursement for out-of-pocket expenses with the exception of the

chairman of the audit and compensation committee who receive annual compensation of $40,000. Each

director serving as member of a committee receives additional annual compensation of $13,000, plus

reimbursement for out-of-pocket expenses with the exception of the member of the audit committee who

receives annual compensation of $26,000, plus reimbursement for out-of-pocket expenses. In 2022, fees

and expenses of our non-executive directors amounted to $0.5 million.

We do not have a retirement plan for our officers or directors. 

Equity Incentive Plan

In November 2014, our board of directors approved, and the Company adopted the 2014 Equity Incentive

Plan for 5,000,000 common shares, amended on May 31, 2018 to increase the common shares to

13,000,000 and further amended on January 8, 2021, referred to as “the Plan”, to increase the number of

common shares available for the issuance of equity awards by 20 million shares. Currently, 13,444,759

shares remain reserved for issuance under the Plan. 

Under the Plan, the Company’s employees, officers and directors are entitled to receive options to acquire

the Company’s common stock. The Plan is administered by the Compensation Committee of the

Company’s Board of Directors or such other committee of the Board as may be designated by the Board.

Under the terms of the Plan, the Company’s Board of Directors is able to grant (a) non-qualified stock

options, (b) stock appreciation rights, (c) restricted stock, (d) restricted stock units, (e) unrestricted stock,

(f) other equity-based or equity-related awards, (g) dividend equivalents and (h) cash awards. No options

or stock appreciation rights can be exercisable subsequent to the tenth anniversary of the date on which

such Award was granted. Under the Plan, the Administrator may waive or modify the application of

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forfeiture of awards of restricted stock and performance shares in connection with cessation of service with

the Company. No Awards may be granted under the Plan following the tenth anniversary of the date on

which the Plan was adopted by the Board (i.e., January 8, 2031).

During 2022 and as of the date of this annual report, our board of directors awarded an aggregate amount

of 1,470,000 shares and 1,750,000 shares, respectively of restricted common stock, of which 1,249,500

shares and 1,487,500 shares, respectively were awarded to senior management, and 220,500 shares and

262,500 shares, respectively, were awarded to non-employee directors. All restricted shares vest ratably

over three years, The restricted shares are subject to forfeiture until they become vested. Unless they

forfeit, grantees have the right to vote, to receive and retain all dividends paid and to exercise all other

rights, powers and privileges of a holder of shares. 

In 2022, compensation costs relating to the aggregate amount of restricted stock awards amounted to $9.3

million.

C. Board Practices

We have established an Audit Committee, comprised of two board members, which is responsible for

reviewing our accounting controls, recommending to the board of directors the engagement of our

independent auditors, and pre-approving audit and audit-related services and fees. Each member has

been determined by our board of directors to be “independent” under the rules of the NYSE and the rules

and regulations of the SEC. As directed by its written charter, the Audit Committee is responsible for

appointing, and overseeing the work of the independent auditors, including reviewing and approving their

engagement letter and all fees paid to our auditors, reviewing the adequacy and effectiveness of the

Company's accounting and internal control procedures and reading and discussing with management and

the independent auditors the annual audited financial statements. The members of the Audit Committee

are Mr. Kyriacos Riris (chairman and financial expert) and Mr. Apostolos Kontoyannis (member and

financial expert).

We have established a Compensation Committee comprised of two members, which, as directed by its

written charter, is responsible for setting the compensation of executive officers of the Company, reviewing

the Company’s incentive and equity-based compensation plans, and reviewing and approving employment

and severance agreements. The members of the Compensation Committee are Mr. Apostolos Kontoyannis

(chairman) and Mr. Konstantinos Psaltis (member).

We have established a Nominating Committee comprised of two members, which, as directed by its written

charter, is responsible for identifying, evaluating and making recommendations to the board of directors

concerning individuals for selections as director nominees for the next annual meeting of stockholders or

to otherwise fill board of director vacancies. The members of the Nominating Committee are

Mr. Konstantinos Psaltis (chairman) and Mr. Kyriacos Riris (member).

We have established a Sustainability Committee as of February 18, 2021, comprised of Ms. Semiramis

Paliou (member) and Mr. Apostolos Kontoyannis (Chairman) which, as directed by its written charter, is

responsible for Identifying, evaluating and making recommendations to the Board with respect to significant

policies and performance on matters relating to sustainability, including environmental risks and

opportunities, social responsibility and impact and the health and safety of all of our stakeholders.

We have established an Executive Committee comprised of the four directors, Ms. Semiramis Paliou

(Chairperson), Mr. Anastasios Margaronis (member), Mr. Ioannis Zafirakis (member), and Mr. Eleftherios

Papatrifon (member). The Executive Committee has, to the extent permitted by law, the powers of the

Board of Directors in the management of the business and affairs of the Company.

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We also maintain directors’ and officers’ insurance, pursuant to which we provide insurance coverage

against certain liabilities to which our directors and officers may be subject, including liability incurred under

U.S. securities law. Our executive directors have employment agreements, which, if terminated without

cause, entitle them to continue receiving their basic salary through the date of the agreement’s expiration.

D. Employees

We crew our vessels primarily with Greek officers and Filipino officers and seamen and may also employ

seamen from Poland, Romania and Ukraine. DSS and DWM are responsible for identifying the appropriate

officers and seamen mainly through crewing agencies. The crewing agencies handle each seaman's

training, travel and payroll. The management companies ensure that all our seamen have the qualifications

and licenses required to comply with international regulations and shipping conventions. Additionally, our

seafaring employees perform most commissioning work and supervise work at shipyards and drydock

facilities. We typically man our vessels with more crew members than are required by the country of the

vessel's flag in order to allow for the performance of routine maintenance duties.

The following table presents the number of shoreside personnel employed by DSS and the number of

seafaring personnel employed by our vessel-owning subsidiaries as of December 31, 2022, 2021 and

2020. 

Year Ended December 31,

2022

2021

2020

Shoreside

113

111

107

Seafaring

907

708

811

Total

1,020

819

918

E. Share Ownership

With respect to the total amount of common shares, Series B Preferred Shares, Series C Preferred Shares

and Series D Preferred Shares owned by our officers and directors, individually and as a group, see “Item

7. Major Shareholders and Related Party Transactions—A. Major Shareholders.”

F.

Disclosure of Registrant's Action to Recover Erroneously Awarded

Compensation

Not applicable.

Item 7. Major Shareholders and Related Party Transactions 

A. Major Shareholders

The following table sets forth information regarding ownership of our common stock of which we are aware

as of the date of this annual report, for (i) beneficial owners of five percent or more of our common stock

and (ii) our officers and directors, individually and as a group. All of our shareholders, including the

shareholders listed in this table, are entitled to one vote for each share of common stock held.

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Title of Class

Identity of Person or Group

Number of

Shares Owned

Percent of

Class

*

Common Stock, 

Semiramis Paliou (1)

16,883,779

15.9%

par value $0.01

Anastasios Margaronis (2)

8,530,996

8.0%

Sea Trade Holdings Inc. (3)

15,886,087

14.9%

All other officers and directors as a group (4)

8,069,027

7.6%

* Based on 106,437,232 common shares outstanding as of March 27, 2023. 

(1) Mrs. Semiramis Paliou indirectly may be deemed to beneficially own 15.9% beneficially owned

through Tuscany Shipping Corp., or Tuscany, and through 4 Sweet Dreams S.A., as the result

of her ability to control the vote and disposition of such entities. As of December 31, 2020, 2021

and 2022, Mrs. Semiramis Paliou owned indirectly 17.8%, 18.9% and 16.0%, respectively, of

our outstanding common stock. Additionally, Mrs. Paliou owns, through Tuscany, 10,675 shares

of Series C Preferred Stock, par value $0.01 per share, and 400 shares of Series D Preferred

Stock, par value $0.01 per share. The Series C Preferred Stock vote with our common shares

and each share of the Series C Preferred Stock entitle the holder thereof to 1,000 votes on all

matters submitted to a vote of the common stockholders of the Company. The Series D

Preferred Stock vote with the common shares and each share of the Series D Preferred Stock

entitles the holder thereof to up to 100,000 votes on all matters submitted to a vote of the

common stockholders of the Company, subject to a maximum number of votes eligible to be

cast by such holder derived from the Series D Preferred Shares and any other voting security

of the Company held by the holder to be equal to the lesser of (i) 36% of the total number of

votes entitled to vote on any matter put to shareholders of the Company and (ii) the sum of the

holder’s aggregate voting power derived from securities other than the Series D Preferred Stock

and 15% of the total number of votes entitled to be cast on matters put to shareholders of the

Company. Through her beneficial ownership of common shares and shares of Series C

Preferred Stock and shares of Series D Preferred Stock, Paliou currently controls 36.0% of the

vote of any matter submitted to the vote of the common shareholders.

(2) Mr. Anastasios Margaronis, our President and a member of our board of directors may be

deemed to beneficially own Anamar Investments Inc. and Coronis Investments Inc. as the result

of his ability to control the vote and disposition of such entities, for an aggregate of 8,530,996

shares.

(3) This information is derived from a Schedule 13G/A filed with the SEC on February 13, 2023,

adjusting the percentage figure based on the common shares issued and outstanding as of the

date of this report.

(4) Ms. Semiramis Paliou and Mr. Anastasios Margaronis are our only directors or officers that

beneficially own 5% or more of our outstanding common stock. Mr. Ioannis Zafirakis may be

deemed to beneficially own 2,006,975 shares, or 1.9% of our outstanding common stock,

beneficially owned through Abra Marinvest Inc.; and Mr. Simeon Palios may be deemed to

beneficially own 3,378,964 shares, or 3.2% of our outstanding common stock, beneficially

owned through Taracan Investments S.A. and Limon Compania Financiera S.A. All other

officers and directors each own less than 1% of our outstanding common stock. 

As of March 23, 2023, we had 111 shareholders of record, 94 of which were located in the United States

and held an aggregate of 94,001,022 of our common shares, representing 84.7% of our outstanding

common shares. However, one of the U.S. shareholders of record is CEDE & CO., a nominee of The

Depository Trust Company, which held 93,290,614 of our common shares as of that date. Accordingly, we

believe that the shares held by CEDE & CO. include common shares beneficially owned by both holders

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in the United States and non-U.S. beneficial owners. We are not aware of any arrangements the operation

of which may at a subsequent date result in our change of control.

Holders of the Series B Preferred Shares generally have no voting rights except (1) in respect of

amendments to the Articles of Incorporation which would adversely alter the preferences, powers or rights

of the Series B Preferred Shares or (2) in the event that we propose to issue any parity stock if the

cumulative dividends payable on outstanding Preferred Stock are in arrears or any senior stock. However,

if and whenever dividends payable on the Series B Preferred Shares are in arrears for six or more quarterly

periods, whether or not consecutive, holders of Series B Preferred Shares (voting together as a class with

all other classes or series of parity stock upon which like voting rights have been conferred and are

exercisable) will be entitled to elect one additional director to serve on our board of directors until such time

as all accumulated and unpaid dividends on the Series B Preferred Shares have been paid in full.

B. Related Party Transactions

OceanPal Inc., or OceanPal

Since November 2021, we own 500,000 of OceanPal’s Series B Preferred Shares, 10,000 of OceanPal’s

Series C Convertible Preferred Shares. Series B Preferred Shares entitle the holder to 2,000 votes on all

matters submitted to vote of the stockholders of the Company, provided however, that the total number of

votes shall not exceed 34% of the total number of votes, provided further, that the total number of votes

entitled to vote, including common stock or any other voting security, would not exceed 49% of the total

number of votes. 

Series C Preferred Shares do not have voting rights unless related to amendments of the Articles of

Incorporation that adversely alter the preference, powers or rights of the Series C Preferred Shares or to

issue Parity Stock or create or issue Senior Stock. Series C Preferred Shares have become convertible

into common stock at the Company’s option since the first anniversary of the issue date, at a conversion

price equal to the lesser of $6.5 and the 10-trading day trailing VWAP of OceanPal’s common shares,

subject to adjustments. Additionally, Series C Preferred Shares have a cumulative preferred dividend

accruing at the rate of 8% per annum, payable in cash or, at OceanPal’s election, in kind and has a

liquidation preference equal to the stated value of $10,000. 

On September 20, 2022, we acquired 25,000 Series D Preferred Shares, par value $0.01 per share, as

part of the consideration provided to us for the acquisition of

Baltimore

, which was sold to OceanPal,

pursuant to a Memorandum of Agreement dated June 13, 2022, for $22.0 million. The shares are

convertible into common stock at the Company’s option, provided however that the Company would not

beneficially own greater than 49% of the outstanding shares of common stock; they have no voting rights;

they have a cumulative dividend accruing at the rate of 7% per annum payable in cash or, at OceanPal’s

election, in PIK shares; and they have a liquidation preference equal $1,000 per share. On December 15,

2022, we distributed the Series D Preferred Shares as non-cash dividend to our shareholders of record on

November 28, 2022.

On February 8, 2023, we acquired 13,157 of OceanPal’s Series D Preferred Shares as part of the

consideration provided to us for the acquisition of

Melia

, which was sold to OceanPal, pursuant to a

Memorandum of Agreement dated February 1, 2023, for $14.0 million. On February 22, 2023, we declared

the distribution on May 16, 2023 of the 13,157 Series D Preferred Shares of OceanPal to our shareholders

of record as of April 24, 2023. The distribution of the 13,157 Series D Preferred Shares, or common shares

issuable upon conversion thereof is subject to there being an effective registration statement in place

covering the distribution of the Series D Preferred Shares or common shares of OceanPal Inc.

Dividend income from the OceanPal preferred shares during 2022 amounted to $0.9 million.

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OceanPal Inc. Non-Competition Agreement

We have entered into a non-competition agreement with OceanPal Inc. ("OceanPal"), dated November 2,

2021, pursuant to which we granted to OceanPal (i) a right of first refusal over any opportunity available to

us (or any of our subsidiaries) to acquire or charter-in any dry bulk vessel that is larger than 70,000

deadweight tons and that was built prior to 2006 and (ii) a right of first refusal over any employment

opportunity for a dry bulk vessel pursuant to a spot market charter presented or available to us with respect

to any vessel owned or chartered in, directly or indirectly, by us. The non-competition agreement also

prohibits us and OceanPal from soliciting each other's employees. The terms of the non-competition

agreement provide that it will terminate on the date that (i) our ownership of OceanPal’s equity securities

represents less than 10% of total outstanding voting power and (ii) we and OceanPal share no common

executive officers.

OceanPal Inc. Right of First Refusal

On November 2, 2021 we entered into a right of first refusal agreement with OceanPal Inc. pursuant to

which we granted OceanPal Inc. a right of first refusal over six drybulk carriers owned by us, as of the date

of the agreement, and identified in the agreement. Pursuant to this right of first refusal, OceanPal Inc. has

the right, but not the obligation, to purchase one or all of the six identified vessels from us when and if we

make a determination to sell one or more of the vessels at a price equal to the fair market value of each

vessel at the time of sale, as determined by the average of two independent shipbroker valuations from

brokers mutually agreeable to us and OceanPal Inc. If OceanPal Inc. does not exercise its right to purchase

a vessel, we have the right to sell the vessel to any third party for a period of three months from the date

notified OceanPal Inc. of our intent to sell the vessel. As of the date of the annual report, OceanPal has

acquired two of the six vessels.

Series D Preferred Stock

In June 2021, we issued 400 shares of its newly-designated Series D Preferred Stock, par value $0.01 per

share, to Tuscany Shipping Corp., an entity controlled by its Chief Executive Officer, Mrs. Semiramis

Paliou, for an aggregate purchase price of $360,000. The Series D Preferred Stock has no dividend or

liquidation rights. The Series D Preferred Stock will vote with the common shares of the Company, and

each share of the Series D Preferred Stock shall entitle the holder thereof to up to 100,000 votes, on all

matters submitted to a vote of the stockholders of the Company, subject to a maximum number of votes

eligible to be cast by such holder derived from the Series D Preferred Shares and any other voting security

of the Company held by the holder to be equal to the lesser of (i) 36% of the total number of votes entitled

to vote on any matter put to shareholders of the Company and (ii) the sum of the holder’s aggregate voting

power derived from securities other than the Series D Preferred Stock and 15% of the total number of votes

entitled to be cast on matters put to shareholders of the Company. The Series D Preferred Stock is

transferable only to the holder’s immediate family members and to affiliated persons. The issuance of

shares of Series D Preferred Stock to Tuscany Shipping Corp. was approved by an independent committee

of the Board of Directors of the Company, which received a fairness opinion from an independent third

party that the transaction was fair from a financial point of view to the Company.

Series C Preferred Stock

In January 2019, we issued 10,675 shares of newly-designated Series C Preferred Stock, par value $0.01

per share, to an affiliate of our Chairman, Mr. Simeon Palios, for an aggregate purchase price of

approximately $1.07 million. The Series C Preferred Stock vote with the common shares of the Company,

and each share entitles the holder thereof to 1,000 votes on all matters submitted to a vote of the

stockholders of the Company. The Series C Preferred Stock has no dividend or liquidation rights and

cannot be transferred without the consent of the Company except to the holder’s affiliates and immediate

family members. The issuance of shares of Series C Preferred Stock was approved by an independent

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committee of the Board of Directors, which received a fairness opinion from an independent third party that

the transaction was fair from a financial point of view to the Issuer. In September 2020, the Series C

Preferred Shares were transferred from an affiliate of Mr. Simeon Palios to an affiliate of the Company’s

Chief Executive Officer, Mrs. Semiramis Paliou.

Steamship Shipbroking Enterprises Inc.

Steamship, an affiliated entity that was controlled by our Chairman of the Board, Mr. Simeon Palios until

January 15, 2023 and our CEO Ms. Semiramis Paliou thereafter, provides to us brokerage services for an

annual fee pursuant to a Brokerage Services Agreement. In 2022, brokerage fees amounted to $3.3 million

and we paid an additional amount of $1.2 million for commissions on the sale and purchases of vessels.

The terms of this relationship are currently governed by a Brokerage Services Agreement dated July 1,

2022 due to expire on June 30, 2023.

Altair Travel Agency S.A.

Altair Travel Agency S.A., or Altair, an affiliated entity that is controlled by our Chairman of the Board,

Mr. Simeon Palios, provides us with travel related services. Travel related expenses in 2022, amounted to

$2.6 million. 

Diana Wilhelmsen Management Limited

Diana Wilhelmsen Management Limited, or DWM, is a 50/50 joint venture which provides management

services to certain vessels in our fleet for a fixed monthly fee and commercial services charged as a

percentage of the vessels’ gross revenues. Management fees in 2022 amounted to $0.5 million,

commissions on revenues amounted to $0.2 million and management fees capitalized amounted to $0.3

million.

C. Interests of Experts and Counsel 

Not Applicable.

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Item 8. Financial information

A. Consolidated statements and other financial information

See “Item 18. Financial Statements.”

Legal Proceedings

We have not been involved in any legal proceedings which may have, or have had, a significant effect on

our business, financial position, results of operations or liquidity, nor are we aware of any proceedings that

are pending or threatened which may have a significant effect on our business, financial position, results

of operations or liquidity. From time to time, we may be subject to legal proceedings and claims in the

ordinary course of business, principally personal injury and property casualty claims. We expect that these

claims would be covered by insurance, subject to customary deductibles. Those claims, even if lacking

merit, could result in the expenditure of significant financial and managerial resources. 

Dividend Policy

Our board of directors reviews and amends our dividend policy from time to time in light of our business

plans and other factors. In order to position us to take advantage of market opportunities in a then-

deteriorating market, our board of directors, beginning with the fourth quarter of 2008, suspended our

common stock dividend. As a result of improving market conditions in 2021, our board of directors elected

to declare quarterly dividends with respect to the third quarter of 2021 until the fourth quarter of 2022, two

special noncash dividends and its intention to declare dividends of $0.15 per share for each quarter in

2023, as described in Item 4A. History and development of the Company. 

The declaration and payment of dividends will always be subject to the discretion of our board of directors.

The timing and amount of any dividends declared will depend on, among other things, our earnings,

financial condition and cash requirements and availability, our ability to obtain debt and equity financing on

acceptable terms as contemplated by our growth strategy and provisions of Marshall Islands law affecting

the payment of dividends. In addition, other external factors, such as our lenders imposing restrictions on

our ability to pay dividends under the terms of our loan facilities, may limit our ability to pay

dividends. Further, under the terms of our loan agreements, we may not be permitted to pay dividends

that would result in an event of default or if an event of default has occurred and is continuing.

Marshall Islands law generally prohibits the payment of dividends other than from surplus or when a

company is insolvent or if the payment of the dividend would render the company insolvent. Also, our loan

facilities and Bond prohibit the payment of dividends should an event of default arise. 

We believe that, under current law, any dividends that we have paid and may pay in the future from earnings

and profits constitute “qualified dividend income” and as such are generally subject to a 20% United States

federal income tax rate with respect to non-corporate United States shareholders. Distributions in excess

of our earnings and profits will be treated first as a non-taxable return of capital to the extent of a United

States shareholder’s tax basis in its common stock on a dollar-for-dollar basis and thereafter as capital

gain. Please see the section of this annual report entitled “Taxation” under Item 10.E for additional

information relating to the tax treatment of our dividend payments.

Cumulative dividends on our Series B Preferred Shares are payable on each January 15, April 15, July 15

and October 15, when, as and if declared by our board of directors or any authorized committee thereof

out of legally available funds for such purpose. The dividend rate for our Series B Preferred Shares is

8.875% per annum per $25.00 of liquidation preference per share (equal to $2.21875 per annum per share)

and is not subject to adjustment. Since February 14, 2019, we may redeem, in whole or from time to time

in part, the Series B Preferred Shares at a redemption price of $25.00 per share plus an amount equal to

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all accumulated and unpaid dividends thereon to the date of redemption, whether or not declared.

Marshall Islands law provides that we may pay dividends on and redeem the Series B Preferred Shares

only to the extent that assets are legally available for such purposes. Legally available assets generally are

limited to our surplus, which essentially represents our retained earnings and the excess of consideration

received by us for the sale of shares above the par value of the shares. In addition, under Marshall Islands

law we may not pay dividends on or redeem Series B Preferred Shares if we are insolvent or would be

rendered insolvent by the payment of such a dividend or the making of such redemption.

B. Significant Changes

There have been no significant changes since the date of the annual consolidated financial statements

included in this annual report, other than those described in Note 15 “Subsequent events” of our annual

consolidated financial statements.

Item 9. The Offer and Listing

A. Offer and Listing Details

The trading market for shares of our common stock is the NYSE, on which our shares trade under the

symbol “DSX”. 

Our Series B Preferred Stock has traded on the NYSE under the symbol “DSXPRB” since February 21,

2014. 

B. Plan of distribution

Not Applicable.

C. Markets

Our common shares have traded on the NYSE since March 23, 2005 under the symbol “DSX,” our Series

B Preferred Stock has traded on the NYSE under the symbol "DSXPRB" since February 21, 2014. Since

February 1, 2022, our 8.375% Senior Unsecured Bond due 2026 commenced trading on the Oslo Stock

Exchange, under the symbol "DIASH02."

D. Selling Shareholders

Not Applicable.

E. Dilution

Not Applicable.

F.

Expenses of the Issue

Not Applicable.

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Item 10. Additional Information

A. Share capital

Not Applicable.

B. Memorandum and articles of association

Our current amended and restated articles of incorporation have been filed as exhibit 1 to our Form 6-K

filed with the SEC on May 29, 2008 with file number 001-32458, and our current amended and restated

bylaws have been filed as exhibit 3.2 to our Form F-3 filed with the SEC on May 6, 2009 with file number

333-159016. The information contained in these exhibits is incorporated by reference herein. 

Information regarding the rights, preferences and restrictions attaching to each class of our shares is

described in the section entitled “Description of Capital Stock” in the accompanying prospectus to our

effective Registration Statement on Form F-3 filed with the SEC on June 6, 2018 with file number 333-

225964, including any subsequent amendments or reports filed for the purpose of updating such

description, provided that since the date of that Registration Statement, (i) the number of our outstanding

shares of common stock has increased to 106,437,232 as of March 27, 2023, and (ii) the Stockholder

Rights Plan described therein has been replaced by a Stockholders Rights Agreement dated as of January

15, 2016, as described below under “Stockholders Rights Agreement ,” (iii) in January 2019, we issued

10,675 shares of newly-designated Series C Preferred Stock, par value $0.01 per share and (iv) in June

2021, we issued 400 shares of its newly-designated Series D Preferred Stock, par value $0.01 per share.

For additional information about our Series B Preferred Shares, please see the section entitled "Description

of Registrant's Securities to be Registered" of our registration statement on Form 8-A filed with the SEC

on February 13, 2014 and incorporated by reference herein. For additional information about our Series C

Preferred Stock and Series D Preferred Stock, please see the Form 6-K filed with the SEC on February 6,

2019 and June 23, 2021, respectively, each incorporated by reference herein.

Stockholders Rights Agreement

On January 15, 2016, we entered into a Stockholders Rights Agreement with Computershare Trust

Company, N.A., as Rights Agent, to replace the Amended and Restated Stockholders Rights Agreement,

dated October 7, 2008.

Under the Stockholders Rights Agreement, we declared a dividend payable of one preferred stock

purchase right, or Right, for each share of common stock outstanding at the close of business on January

26, 2016. Each Right entitles the registered holder to purchase from us one one-thousandth of a share of

Series A participating preferred stock, par value $0.01 per share, at an exercise price of $40.00 per share.

The Rights will separate from the common stock and become exercisable only if a person or group acquires

beneficial ownership of 18.5% or more of our common stock (including through entry into certain derivative

positions) in a transaction not approved by our Board of Directors. In that situation, each holder of a Right

(other than the acquiring person, whose Rights will become void and will not be exercisable) will have the

right to purchase, upon payment of the exercise price, a number of shares of our common stock having a

then-current market value equal to twice the exercise price. In addition, if the Company is acquired in a

merger or other business combination after an acquiring person acquires 18.5% or more of our common

stock, each holder of the Right will thereafter have the right to purchase, upon payment of the exercise

price, a number of shares of common stock of the acquiring person having a then-current market value

equal to twice the exercise price. The acquiring person will not be entitled to exercise these Rights. Under

the Stockholders Rights Agreement's terms, it will expire on January 14, 2026. A copy of the Stockholders

Rights Agreement and a summary of its terms are contained in the Form 8-A12B filed with the SEC on

January 15, 2016, with file number 001-32458.

100

C. Material contracts

Attached as exhibits to this annual report are the contracts we consider to be both material and not entered

into in the ordinary course of business, which (i) are to be performed in whole or in part on or after the filing

date of this annual report or (ii) were entered into not more than two years before the filing date of this

annual report. Other than these agreements, we have no material contracts, other than contracts entered

into in the ordinary course of business, to which the Company or any member of the group is a party. A

description of these is included in our description of our agreements generally: we refer you to Item 5.B for

a discussion of our loan facilities.

D. Exchange Controls

Under Marshall Islands, Panamanian, Cypriot and Greek law, there are currently no restrictions on the

export or import of capital, including foreign exchange controls or restrictions that affect the remittance of

dividends, interest or other payments to non-resident holders of our securities.

E. Taxation

In the opinion of Seward & Kissel LLP, the following is a discussion of the material Marshall Islands and

U.S. federal income tax considerations of the ownership and disposition by a U.S. Holder and a Non-

U.S. Holder, each as defined below, of the common stock. This discussion does not purport to deal with

the tax consequences of owning common stock to all categories of investors, some of which, such as

dealers in securities or commodities, financial institutions, insurance companies, tax-exempt organizations,

U.S. expatriates, persons liable for the alternative minimum tax, persons who hold common stock as part

of a straddle, hedge, conversion transaction or integrated investment, U.S. Holders whose functional

currency is not the United States dollar, persons required to recognize income for U.S. federal income tax

purposes no later than when such income is reported on an “applicable financial statement,” investors

subject to the “base erosion and anti-avoidance” tax and investors that own, actually or under applicable

constructive ownership rules, 10% or more of the Company’s common stock, may be subject to special

rules. This discussion deals only with holders who hold the common stock as a capital asset. You are

encouraged to consult your own tax advisors concerning the overall tax consequences arising in your own

particular situation under U.S. federal, state, local or foreign law of the ownership of common stock.

Marshall Islands Tax Considerations

The Company is incorporated in the Marshall Islands. Under current Marshall Islands law, the company is

not subject to tax on income or capital gains, and no Marshall Islands withholding tax will be imposed upon

payments of dividends by us to our shareholders. 

United States Federal Income Taxation

The following discussion is based upon the provisions of the U.S. Internal Revenue Code of 1986, as

amended (the “Code”), existing and proposed U.S. Treasury Department regulations, (the “Treasury

Regulations”), administrative rulings, pronouncements and judicial decisions, all as of the date of this

Annual Report. This discussion assumes that we do not have an office or other fixed place of business in

the United States. Unless the context otherwise requires, the reference to Company below shall be meant

to refer to both the Company and its vessel-owning and operating subsidiaries.

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Taxation of the Company’s Shipping Income

In General

The Company anticipates that it will derive substantially all of its gross income from the use and operation

of vessels in international commerce and that this income will principally consist of freights from the

transportation of cargoes, hire or lease from time or voyage charters and the performance of services

directly related thereto, which the Company refers to as “Shipping Income.” 

Shipping Income that is attributable to transportation that begins or ends, but that does not both begin and

end, in the United States will be considered to be 50% derived from sources within the United States.

Shipping Income attributable to transportation that both begins and ends in the United States will be

considered to be 100% derived from sources within the United States. The Company is not permitted by

law to engage in transportation that gives rise to 100% U.S. source Shipping Income. Shipping Income

attributable to transportation exclusively between non-U.S. ports will be considered to be 100% derived

from sources outside the United States. Shipping Income derived from sources outside the United States

will not be subject to U.S. federal income tax.

Based upon the Company’s anticipated shipping operations, the Company’s vessels will operate in various

parts of the world, including to or from U.S. ports. Unless exempt from U.S. federal income taxation under

Section 883 of the Code, the Company will be subject to U.S. federal income taxation, in the manner

discussed below, to the extent its Shipping Income is considered derived from sources within the United

States.

In the year ended December 31, 2022, approximately 3.0% of the Company’s shipping income was

attributable to the transportation of cargoes either to or from a U.S. port. Accordingly, approximately 1.5%

of the Company’s shipping income would be treated as derived from U.S. sources for the year ended

December 31, 2022. In the absence of exemption from U.S. federal income tax under Section 883 of the

Code, the Company would have been subject to a 4% tax on its gross U.S. source Shipping Income, equal

to $0.2 for the year ended December 31, 2022.

Application of Exemption under Section 883 of the Code

Under the relevant provisions of Section 883 of the Code and the final Treasury Regulations promulgated

thereunder, a foreign corporation will be exempt from U.S. federal income taxation on its U.S. source

Shipping Income if:

(1) It is organized in a qualified foreign country which, as defined, is one that grants an equivalent

exemption from tax to corporations organized in the United States in respect of the Shipping

Income for which exemption is being claimed under Section 883 of the Code, or the “Country of

Organization Requirement”; and

(2) It can satisfy any one of the following two stock ownership requirements:

• more than 50% of its stock, in terms of value, is beneficially owned by qualified

shareholders which, as defined, includes individuals who are residents of a qualified

foreign country, or the “50% Ownership Test”; or

• its stock is “primarily and regularly” traded on an established securities market located

in the United States or a qualified foreign country, or the “Publicly Traded Test”.

The U.S. Treasury Department has recognized the Marshall Islands, Panama and Cyprus the countries of

incorporation of each of the Company and its subsidiaries that earns Shipping Income, as a qualified foreign

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country. Accordingly, the Company and each of the subsidiaries satisfy the Country of Organization

Requirement. 

For the 2022 taxable year, the Company believes that it is unlikely that the 50% Ownership Test was

satisfied. Therefore, the eligibility of the Company and each subsidiary to qualify for exemption under

Section 883 of the Code is wholly dependent upon the Company’s ability to satisfy the Publicly Traded

Test. 

Under the Treasury Regulations, stock of a foreign corporation is considered “primarily traded” on an

established securities market in a country if the number of shares of each class of stock that is traded

during the taxable year on all established securities markets in that country exceeds the number of shares

in each such class that is traded during that year on established securities markets in any other single

country. The Company’s common stock was “primarily traded” on the NYSE during the 2022 taxable year.

Under the Treasury Regulations, the Company’s common stock will be considered to be “regularly traded”

on the NYSE if: (1) more than 50% of its common stock, by voting power and total value, is listed on the

NYSE, referred to as the “Listing Threshold”, (2) its common stock is traded on the NYSE, other than in

minimal quantities, on at least 60 days during the taxable year (or one-sixth of the days during a short

taxable year), which is referred to as the “Trading Frequency Test”; and (3) the aggregate number of shares

of its common stock traded on the NYSE during the taxable year is at least 10% of the average number of

shares of its common stock outstanding during such taxable year (as appropriately adjusted in the case of

a short taxable year), which is referred to as the “Trading Volume Test”. The Trading Frequency Test and

Trading Volume Test are deemed to be satisfied under the Treasury Regulations if the Company’s common

stock is regularly quoted by dealers making a market in the common stock.

The Company believes that its common stock has satisfied the Listing Threshold, as well as the Trading

Frequency Test and Trading Volume Tests, during the 2022 taxable year.

Notwithstanding the foregoing, the Treasury Regulations provide, in pertinent part, that stock of a foreign

corporation will not be considered to be “regularly traded” on an established securities market for any

taxable year during which 50% or more of such stock is owned, actually or constructively under specified

stock attribution rules, on more than half the days during the taxable year by persons, or “5%

Shareholders”, who each own 5% or more of the value of such stock, or the “5% Override Rule.” For

purposes of determining the persons who are 5% Shareholders, a foreign corporation may rely on

Schedules 13D and 13G filings with the SEC.

Based on Schedules 13D and 13G filings, during the 2022 taxable year, less than 50% of the Company’s

common stock was owned by 5% Shareholders. Therefore, the Company believes that it is not subject to

the 5% Override Rule and thus has satisfied the Publicly Traded Test for the 2022 taxable year. However,

there can be no assurance that the Company will continue to satisfy the Publicly Traded Test in future

taxable years. For example, the Company could be subject to the 5% Override Rule if another 5%

Shareholder in combination with the Company’s existing 5% Shareholders were to own 50% or more of

the Company’s common stock. In such a case, the Company would be subject to the 5% Override Rule

unless it could establish that, among the shares of the common stock owned by the 5% Shareholders,

sufficient shares are owned by qualified shareholders, for purposes of Section 883 of the Code, to preclude

non-qualified shareholders from owning 50% or more of the Company’s common stock for more than half

the number of days during the taxable year. The requirements of establishing this exception to the 5%

Override Rule are onerous and there is no assurance the Company will be able to satisfy them.

Based on the foregoing, the Company believes that it satisfied the Publicly Traded Test and therefore

believes that it was exempt from U.S. federal income tax under Section 883 of the Code, during the 2022

taxable year, and intends to take this position on its 2022 U.S. federal income tax returns.

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Taxation in Absence of Exemption Under Section 883 of the Code

To the extent the benefits of Section 883 of the Code are unavailable with respect to any item of U.S.

source Shipping Income, the Company and each of its subsidiaries would be subject to a 4% tax imposed

on such income by Section 887 of the Code on a gross basis, without the benefit of deductions, which is

referred to as the “4% Gross Basis Tax Regime”. Since under the sourcing rules described above, no more

than 50% of the Company’s Shipping Income would be treated as being derived from U.S. sources, the

maximum effective rate of U.S. federal income tax on the Company’s Shipping Income would never exceed

2% under the 4% Gross Basis Tax Regime.

Based on its U.S. source Shipping Income for the 2022 taxable year and in the absence of exemption

under Section 883 of the Code, the Company would be subject to $0.2 of U.S. federal income tax under

the 4% Gross Basis Tax Regime.

The 4% Gross Basis Tax Regime would not apply to U.S. source Shipping Income to the extent considered

to be “effectively connected” with the conduct of a U.S. trade or business. In the absence of exemption

under Section 883 of the Code, such “effectively connected” U.S. source Shipping Income, net of applicable

deductions, would be subject to U.S. federal income tax currently imposed at a rate of 21%. In addition,

earnings “effectively connected” with the conduct of such U.S. trade or business, as determined after

allowance for certain adjustments, and certain interest paid or deemed paid attributable to the conduct of

the U.S. trade or business may be subject to U.S. federal branch profits tax imposed at a rate of 30%. The

Company’s U.S. source Shipping Income would be considered “effectively connected” with the conduct of

a U.S. trade or business only if: (1) the Company has, or is considered to have, a fixed place or business

in the United States involved in the earning of Shipping Income; and (2) substantially all of the Company’s

U.S. source Shipping Income is attributable to regularly scheduled transportation, such as the operation of

a vessel that followed a published schedule with repeated sailings at regular intervals between the same

points for voyages that begin or end in the United States, or, in the case of income from the chartering of

a vessel, is attributable to a fixed place of business in the United States. We do not intend to have, or

permit circumstances that would result in having a vessel operating to the United States on a regularly

scheduled basis. Based on the foregoing and on the expected mode of our shipping operations and other

activities, we believe that none of our U.S. source Shipping Income will be effectively connected with the

conduct of a U.S. trade or business.

Gain on Sale of Vessels

Regardless of whether we qualify for exemption under Section 883 of the Code, we will not be subject to

U.S. federal income taxation with respect to gain realized on a sale of a vessel, provided the sale is

considered to occur outside of the United States under U.S. federal income tax principles. In general, a

sale of a vessel will be considered to occur outside of the United States for this purpose if title to the vessel,

and risk of loss with respect to the vessel, pass to the buyer outside of the United States. It is expected

that any sale of a vessel by us will be considered to occur outside of the United States.

United States Taxation of U.S. Holders

The following is a discussion of the material U.S. federal income tax considerations relevant to an

investment decision by a U.S. Holder, as defined below, with respect to our common stock. This discussion

does not purport to deal with the tax consequences of owning our common stock to all categories of

investors, some of which may be subject to special rules. You are encouraged to consult your own tax

advisors concerning the overall tax consequences arising in your own particular situation under U.S.

federal, state, local or foreign law of the ownership of our common stock.

As used herein, the term “U.S. Holder” means a beneficial owner of our common stock that (i) is a U.S.

citizen or resident, a U.S. corporation or other U.S. entity taxable as a corporation, an estate, the income

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of which is subject to U.S. federal income taxation regardless of its source, or a trust if (a) a court within

the United States is able to exercise primary jurisdiction over the administration of the trust and one or

more U.S. persons have the authority to control all substantial decisions of the trust or (b) it has an election

in place to be treated as a United States person; and (ii) owns the common stock as a capital asset,

generally, for investment purposes.

If a partnership holds our common stock, the tax treatment of a partner will generally depend upon the

status of the partner and upon the activities of the partnership. If you are a partner in a partnership holding

our common stock, you are encouraged to consult your own tax advisor on this issue.

Distributions

Subject to the discussion of passive foreign investment companies below, any distributions made by the

Company with respect to its common stock to a U.S. Holder will generally constitute dividends, which may

be taxable as ordinary income or “qualified dividend income” as described in more detail below, to the

extent of the Company’s current or accumulated earnings and profits, as determined under U.S. federal

income tax principles. Distributions in excess of the Company’s earnings and profits will be treated first as

a non-taxable return of capital to the extent of the U.S. Holder’s tax basis in his common stock on a dollar-

for-dollar basis and thereafter as capital gain. Because the Company is not a U.S. corporation, U.S. Holders

that are corporations will generally not be entitled to claim a dividends-received deduction with respect to

any distributions they receive from the Company.

Dividends paid to a U.S. Holder which is an individual, trust, or estate, referred to herein as a “U.S. Non-

Corporate Holder,” will generally be treated as “qualified dividend income” that is taxable to Holders at

preferential U.S. federal income tax rates, provided that (1) the common stock is readily tradable on an

established securities market in the United States (such as the NYSE on which the common stock is listed);

(2) the Company is not a passive foreign investment company for the taxable year during which the

dividend is paid or the immediately preceding taxable year (which the Company does not believe it is, has

been or will be); (3) the U.S. Non-Corporate Holder has owned the common stock for more than 60 days

in the 121-day period beginning 60 days before the date on which the common stock becomes ex-dividend;

and (4) the U.S. Non-Corporate Holder is not under an obligation (whether pursuant to a short sale or

otherwise) to make payments with respect to positions in substantially similar or related property. There is

no assurance that any dividends paid on our common stock will be eligible for these preferential rates in

the hands of a U.S. Non-Corporate Holder. Any dividends paid by the Company which are not eligible for

these preferential rates will be taxed as ordinary income to a U.S. Non-Corporate Holder. Special rules

may apply to any “extraordinary dividend,” generally, a dividend paid by us in an amount which is equal to

or in excess of ten percent of a U.S. Holder’s adjusted tax basis, or fair market value in certain

circumstances, in a share of our common stock. If we pay an “extraordinary dividend” on our common stock

that is treated as “qualified dividend income,” then any loss derived by a U.S. Individual Holder from the

sale or exchange of such common stock will be treated as long-term capital loss to the extent of such

dividend.

Sale, Exchange or other Disposition of Common Stock

Subject to the discussion of the PFIC rules below, a U.S. Holder generally will recognize taxable gain or

loss upon a sale, exchange or other disposition of the Company’s common stock in an amount equal to

the difference between the amount realized by the U.S. Holder from such sale, exchange or other

disposition and the U.S. Holder’s tax basis in such stock. Such gain or loss will be treated as long-term

capital gain or loss if the U.S. Holder’s holding period in the common stock is greater than one year at the

time of the sale, exchange or other disposition. Long-term capital gain of a U.S. Non-Corporate Holder is

taxable at preferential U.S. Federal income tax rates. A U.S. Holder’s ability to deduct capital losses is

subject to certain limitations.

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PFIC Status and Significant Tax Consequences

Special U.S. federal income tax rules apply to a U.S. Holder that holds stock in a foreign corporation

classified as a passive foreign investment company, or a “PFIC”, for U.S. federal income tax purposes. In

general, the Company will be treated as a PFIC with respect to a U.S. Holder if, for any taxable year in

which such Holder held the Company’s common stock, either:

• at least 75% of the Company’s gross income for such taxable year consists of passive

income (e.g., dividends, interest, capital gains and rents derived other than in the

active conduct of a rental business), or

• at least 50% of the average value of the assets held by the corporation during such

taxable year produce, or are held for the production of, such passive income.

For purposes of determining whether the Company is a PFIC, the Company will be treated as earning and

owning its proportionate share of the income and assets, respectively, of any of its subsidiary corporations

in which it owns at least 25% of the value of the subsidiary’s stock. Income earned, or deemed earned, by

the Company in connection with the performance of services would not constitute passive income. By

contrast, rental income would generally constitute passive income unless the Company is treated under

specific rules as deriving its rental income in the active conduct of a trade or business.

Based on the Company’s current operations and future projections, the Company does not believe that it

is, nor does it expect to become, a PFIC with respect to any taxable year. Although there is no legal

authority directly on point, the Company’s belief is based principally on the position that, for purposes of

determining whether the Company is a PFIC, the gross income the Company derives or is deemed to

derive from the time chartering and voyage chartering activities of its wholly-owned subsidiaries should

constitute services income, rather than rental income. Correspondingly, the Company believes that such

income does not constitute passive income, and the assets that the Company or its wholly-owned

subsidiaries own and operate in connection with the production of such income, in particular, the vessels,

do not constitute assets that produce or are held for the production of passive income for purposes of

determining whether the Company is a PFIC. The Company believes there is substantial legal authority

supporting its position consisting of case law and Internal Revenue Service, or the “IRS”, pronouncements

concerning the characterization of income derived from time charters and voyage charters as services

income for other tax purposes. However, there is also authority which characterizes time charter income

as rental income rather than services income for other tax purposes. It should be noted that in the absence

of any legal authority specifically relating to the statutory provisions governing PFICs, the IRS or a court

could disagree with this position. In addition, although the Company intends to conduct its affairs in a

manner to avoid being classified as a PFIC with respect to any taxable year, there can be no assurance

that the nature of its operations will not change in the future.

As discussed more fully below, if the Company were to be treated as a PFIC for any taxable year, a U.S.

Holder would be subject to different U.S. federal income taxation rules depending on whether the U.S.

Holder makes an election to treat the Company as a “Qualified Electing Fund,” which election is referred

to as a “QEF Election.” As discussed below, as an alternative to making a QEF Election, a U.S. Holder

should be able to make a “mark-to-market” election with respect to the common stock, which election is

referred to as a “Mark-to-Market Election”. If the Company were to be treated as a PFIC, a U.S. Holder

would be required to file with respect to taxable years ending on or after December 31, 2013 IRS Form

8621 to report certain information regarding the Company.

Taxation of U.S. Holders Making a Timely QEF Election

If a U.S. Holder makes a timely QEF Election, which U.S. Holder is referred to as an “Electing Holder”, the

Electing Holder must report each year for U.S. federal income tax purposes his pro rata share of the

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Company’s ordinary earnings and net capital gain, if any, for the Company’s taxable year that ends with or

within the taxable year of the Electing Holder, regardless of whether or not distributions were received by

the Electing Holder from the Company. The Electing Holder’s adjusted tax basis in the common stock will

be increased to reflect amounts included in the Electing Holder’s income. Distributions received by an

Electing Holder that had been previously taxed will result in a corresponding reduction in the adjusted tax

basis in the common stock and will not be taxed again once distributed. An Electing Holder would generally

recognize capital gain or loss on the sale, exchange or other disposition of the common stock.

Taxation of U.S. Holders Making a Mark-to-Market Election

Alternatively, if the Company were to be treated as a PFIC for any taxable year and, as anticipated, the

common stock is treated as “marketable stock,” a U.S. Holder would be allowed to make a Mark-to-Market

Election with respect to the Company’s common stock. If that election is made, the U.S. Holder generally

would include as ordinary income in each taxable year the excess, if any, of the fair market value of the

common stock at the end of the taxable year over such Holder’s adjusted tax basis in the common

stock. The U.S. Holder would also be permitted an ordinary loss in respect of the excess, if any, of the U.S.

Holder’s adjusted tax basis in the common stock over its fair market value at the end of the taxable year,

but only to the extent of the net amount previously included in income as a result of the Mark-to-Market

Election. A U.S. Holder’s tax basis in his common stock would be adjusted to reflect any such income or

loss amount. Gain realized on the sale, exchange or other disposition of the common stock would be

treated as ordinary income, and any loss realized on the sale, exchange or other disposition of the common

stock would be treated as ordinary loss to the extent that such loss does not exceed the net mark-to-market

gains previously included by the U.S. Holder.

Taxation of U.S. Holders Not Making a Timely QEF Election or Mark-to-Market Election

Finally, if the Company were to be treated as a PFIC for any taxable year, a U.S. Holder who does not

make either a QEF Election or a Mark-to-Market Election for that year, whom is referred to as a “Non-

Electing Holder”, would be subject to special U.S. federal income tax rules with respect to (1) any excess

distribution (i.e., the portion of any distributions received by the Non-Electing Holder on the common stock

in a taxable year in excess of 125% of the average annual distributions received by the Non-Electing Holder

in the three (3) preceding taxable years, or, if shorter, the Non-Electing Holder’s holding period for the

common stock), and (2) any gain realized on the sale, exchange or other disposition of the common

stock. Under these special rules:

• the excess distribution or gain would be allocated ratably over the Non-Electing Holder’s

aggregate holding period for the common stock;

• the amount allocated to the current taxable year and any taxable years before the

Company became a PFIC would be taxed as ordinary income; and

• the amount allocated to each of the other taxable years would be subject to tax at the

highest rate of tax in effect for the applicable class of taxpayer for that year, and an

interest charge for the deemed tax deferral benefit would be imposed with respect to

the resulting tax attributable to each such other taxable year.

These penalties would not apply to a pension or profit sharing trust or other tax-exempt organization that

did not borrow funds or otherwise utilize leverage in connection with its acquisition of the common stock. If

a Non-Electing Holder who is an individual dies while owning the common stock, such Holder’s successor

generally would not receive a step-up in tax basis with respect to such stock.

U.S. Federal Income Taxation of “Non-U.S. Holders”

A beneficial owner of our common stock that is not a U.S. Holder (other than a partnership) is referred to

herein as a “Non-U.S. Holder.”

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Dividends on Common Stock

Non-U.S. Holders generally will not be subject to U.S. federal income or withholding tax on dividends

received from us with respect to our common stock, unless that income is effectively connected with the

Non-U.S. Holder’s conduct of a trade or business in the United States. If the Non-U.S. Holder is entitled to

the benefits of a U.S. income tax treaty with respect to those dividends, that income is taxable in the United

States only if attributable to a permanent establishment maintained by the Non-U.S. Holder in the United

States.

Sale, Exchange or Other Disposition of Common Stock

Non-U.S. Holders generally will not be subject to U.S. federal income or withholding tax on any gain

realized upon the sale, exchange or other disposition of our common stock, unless:

• the gain is effectively connected with the Non-U.S. Holder’s conduct of a trade or

business in the United States. If the Non-U.S. Holder is entitled to the benefits of a U.S.

income tax treaty with respect to that gain, the gain is taxable in the United States only

if attributable to a permanent establishment maintained by the Non-U.S. Holder in the

United States; or

• the Non-U.S. Holder is an individual who is present in the United States for 183 days or

more during the taxable year of disposition and other conditions are met.

If the Non-U.S. Holder is engaged in a U.S. trade or business for U.S. federal income tax purposes, the

income from our common stock, including dividends and the gain from the sale, exchange or other

disposition of the common stock, that is effectively connected with the conduct of that U.S. trade or

business will generally be subject to U.S. federal income tax in the same manner as discussed in the

previous section relating to the taxation of U.S. Holders. In addition, in the case of a corporate Non-U.S.

Holder, such Holder’s earnings and profits that are attributable to the effectively connected income, subject

to certain adjustments, may be subject to an additional U.S. federal branch profits tax at a rate of 30%, or

at a lower rate as may be specified by an applicable U.S. income tax treaty.

Backup Withholding and Information Reporting

In general, dividend payments, or other taxable distributions, made within the United States to a holder will

be subject to U.S. federal information reporting requirements. Such payments will also be subject to U.S.

federal “backup withholding” if paid to a non-corporate U.S. holder who:

• fails to provide an accurate taxpayer identification number;

• is notified by the IRS that he has failed to report all interest or dividends required to be

shown on his U.S. federal income tax returns; or

• in certain circumstances, fails to comply with applicable certification requirements.

Non-U.S. Holders may be required to establish their exemption from information reporting and backup

withholding by certifying their status on an applicable IRS Form W-8.

If a holder sells his common stock to or through a U.S. office of a broker, the payment of the proceeds is

subject to both backup withholding and information reporting unless the holder establishes an exemption. If

a holder sells his common stock through a non-U.S. office of a non-U.S. broker and the sales proceeds are

paid to the holder outside the United States, then information reporting and backup withholding generally

will not apply to that payment. However, information reporting requirements, but not backup withholding,

will apply to a payment of sales proceeds, including a payment made to a holder outside the United States,

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if the holder sells his common stock through a non-U.S. office of a broker that is a U.S. person or has some

other contacts with the United States.

Backup withholding is not an additional tax. Rather, a taxpayer generally may obtain a refund of any

amounts withheld under backup withholding rules that exceed the taxpayer’s U.S. federal income tax

liability by filing a refund claim with the IRS.

U.S. Holders who are individuals (and to the extent specified in applicable Treasury Regulations, certain

U.S. entities) who hold “specified foreign financial assets” (as defined in Section 6038D of the Code) are

required to file IRS Form 8938 with information relating to the asset for each taxable year in which the

aggregate value of all such assets exceeds $75,000 at any time during the taxable year or $50,000 on the

last day of the taxable year (or such higher dollar amount as prescribed by applicable Treasury

Regulations). Specified foreign financial assets would include, among other assets, our common stock,

unless the common stock is held through an account maintained with a U.S. financial institution. Substantial

penalties apply to any failure to timely file IRS Form 8938, unless the failure is shown to be due to

reasonable cause and not due to willful neglect. Additionally, in the event a U.S. Holder who is an individual

(and to the extent specified in applicable Treasury regulations, a U.S. entity) that is required to file IRS

Form 8938 does not file such form, the statute of limitations on the assessment and collection of U.S.

federal income taxes of such holder for the related tax year may not close until three (3) years after the

date that the required information is filed.

F.

Dividends and paying agents

Not Applicable.

G. Statement by experts

Not Applicable.

H. Documents on display

We file reports and other information with the SEC. These materials, including this annual report and the

accompanying exhibits are available from the SEC’s website http://www.sec.gov. 

I. Subsidiary information

Not Applicable.

J. Annual Report to Security Holders

We intend to submit any annual report provided to security holders in electronic format as an exhibit to a

current report on Form 6-K. 

Item 11. Quantitative and Qualitative Disclosures about Market Risk

Interest Rates

We are exposed to market risks associated with changes in interest rates relating to our loan facilities,

according to which we pay interest at LIBOR plus a margin; and as such increases in interest rates could

affect our results of operations. An increase of 1% in the interest rates of our loan facilities bearing a

variable interest rate during 2022, could have increased our interest cost from $22.0 million to $25.0 million.

As LIBOR will be discontinued on June 30, 2023 and will be replaced by the Secured Overnight Financing

109

Rate, or “SOFR”, or any other alternative rate, we may face volatility in applicable interest rates among our

financing agreements and potential increased borrowing costs, which could in turn have an adverse effect

on our profitability, earnings and cash flow.

We will continue to have debt outstanding, which could impact our results of operations and financial

condition. We expect to manage any exposure in interest rates through our regular operating and financing

activities and, when deemed appropriate, through the use of derivative financial instruments. 

As of December 31, 2022, 2021 and 2020 and as of the date of this annual report, we did not and have not

designated any financial instruments as accounting hedging instruments. 

Currency and Exchange Rates

We generate all of our revenues in U.S. dollars but currently incur less than half of our operating expenses

(around 32% in 2022 and around 33% in 2021) and about half of our general and administrative expenses

(around 45% in 2022 and around 50% in 2021) in currencies other than the U.S. dollar, primarily the Euro.

For accounting purposes, including throughout this annual report, expenses incurred in Euros are

converted into U.S. dollars at the exchange rate prevailing on the date of each transaction. Because a

significant portion of our expenses are incurred in currencies other than the U.S. dollar, our expenses may

from time to time increase relative to our revenues as a result of fluctuations in exchange rates, particularly

between the U.S. dollar and the Euro, which could affect our results of operations in future periods.

Currently, we do not consider the risk from exchange rate fluctuations to be material for our results of

operations, as during 2022 and 2021, these non-US dollar expenses represented 12% and 26%,

respectively of our revenues and therefore, we are not engaged in extensive derivative instruments to

hedge a considerable part of those expenses. 

While we historically have not mitigated the risk associated with exchange rate fluctuations through the use

of financial derivatives, we may determine to employ such instruments from time to time in the future in

order to minimize this risk. Our use of financial derivatives would involve certain risks, including the risk

that losses on a hedged position could exceed the nominal amount invested in the instrument and the risk

that the counterparty to the derivative transaction may be unable or unwilling to satisfy its contractual

obligations, which could have an adverse effect on our results. 

Item 12. Description of Securities Other than Equity Securities

Not Applicable.

110

PART II

Item 13. Defaults, Dividend Arrearages and Delinquencies

None.

Item 14. Material Modifications to the Rights of Security Holders and Use

of Proceeds

None.

Item 15. Controls and Procedures

a) Disclosure Controls and Procedures 

Management, including our Chief Executive Officer and Chief Financial Officer, has conducted an

evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e)

and 15d-15(e) under the Exchange Act) as of the end of the period covered by this annual report. Based

upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our

disclosure controls and procedures are effective to ensure that information required to be disclosed by the

Company in the reports that it files or submits to the SEC under the Exchange Act is recorded, processed,

summarized and reported within the time periods specified in SEC rules and forms.

b) Management’s Annual Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial

reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. The Company’s internal control

over financial reporting is a process designed under the supervision of the Company’s Chief Executive

Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial

reporting and the preparation of the Company’s financial statements for external reporting purposes in

accordance with U.S. GAAP. A company’s internal control over financial reporting includes those policies

and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and

fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable

assurance that transactions are recorded as necessary to permit the preparation of financial statements in

accordance with U.S. GAAP, and that receipts and expenditures of the company are being made only in

accordance with authorizations of management and directors of the company; and (iii) provide reasonable

assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the

company’s assets that could have a material effect on the financial statements.

Management has conducted an assessment of the effectiveness of the Company’s internal control over

financial reporting based on the framework established in Internal Control – Integrated Framework issued

by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Based

on this assessment, management has determined that the Company’s internal control over financial

reporting as of December 31, 2022 is effective.

The registered public accounting firm that audited the financial statements included in this annual report

containing the disclosure required by this Item 15 has issued an attestation report on management's

assessment of our internal control over financial reporting.

111

c) Attestation Report of Independent Registered Public Accounting Firm 

The attestation report on the Company’s internal control over financial reporting issued by the registered

public accounting firm that audited the Company’s consolidated financial statements, Ernst Young (Hellas)

Certified Auditors Accountants S.A., appears on page F-4 of the financial statements filed as part of this

annual report.

d) Changes in Internal Control over Financial Reporting

None.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and our Chief Financial Officer, does not expect

that our disclosure controls or our internal control over financial reporting will prevent or detect all error and

all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not

absolute, assurance that the control system’s objectives will be met. Further, because of the inherent

limitations in all control systems, no evaluation of controls can provide absolute assurance that

misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any,

within the Company have been detected. These inherent limitations include the realities that judgments in

decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls

can also be circumvented by the individual acts of some persons, by collusion of two or more people, or

by management override of the controls. The design of any system of controls is based in part on certain

assumptions about the likelihood of future events, and there can be no assurance that any design will

succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of

controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate

because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

Item 16A. Audit Committee Financial Expert

Our Board of Directors has determined that both the members of our Audit Committee, Mr. Kyriacos Riris

and Mr. Apostolos Kontoyannis, qualify as “Audit Committee financial experts” and that they are both

considered to be “independent” according to SEC rules.

Item 16B. Code of Ethics

We have adopted a code of ethics that applies to officers, directors, employees and agents. Our code of

ethics is posted on our website,

 http://www.dianashippinginc.com

, under “About Us—Code of Ethics” and

is filed as Exhibit 11.1 to this Annual Report. Copies of our code of ethics are available in print, free of

charge, upon request to Diana Shipping Inc., Pendelis 16, 175 64 Palaio Faliro, Athens, Greece. We intend

to satisfy any disclosure requirements regarding any amendment to, or waiver from, a provision of this

code of ethics by posting such information on our website.

Item 16C. Principal Accountant Fees and Services

a) Audit Fees

Our principal accountants, Ernst and Young (Hellas), Certified Auditors Accountants S.A., have billed us

for audit services. Audit fees in 2022 and 2021 amounted to € 383,250 and € 372,750, or approximately

$426,000 and $437,000, respectively, and relate to audit services provided in connection with timely AS

4105 reviews, the audit of our consolidated financial statements and the audit of internal control over

financial reporting. 

112

b) Audit-Related Fees

Audit related fees amounted to € 71,288, as compared to € 112,000 in 2021 and relate to audit services

provided in connection with the Company’s filings with the SEC and OceanPal’s Spin-off. 

c) Tax Fees

During 2022 and 2021, we received services for which fees amounted to $10,500 and $11,000,

respectively, for the calculation of Earnings and Profits of the Company.

d) All Other Fees

None.

e) Audit Committee’s Pre-Approval Policies and Procedures 

Our Audit Committee is responsible for the appointment, replacement, compensation, evaluation and

oversight of the work of our independent auditors. As part of this responsibility, the Audit Committee pre-

approves the audit and non-audit services performed by the independent auditors in order to assure that

they do not impair the auditor’s independence from the Company. The Audit Committee has adopted a

policy which sets forth the procedures and the conditions pursuant to which services proposed to be

performed by the independent auditors may be pre-approved.

f) Audit Work Performed by Other than Principal Accountant if Greater than 50%

Not applicable.

Item 16D. Exemptions from the Listing Standards for Audit Committees

Our Audit Committee consists of two independent members of our Board of Directors. Otherwise, our Audit

Committee conforms to each other requirement applicable to audit committees as required by the

applicable listing standards of the NYSE.

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated

Purchasers

On May 23, 2014, we announced that our Board of Directors authorized a share repurchase plan for up to

$100 million of the Company’s common shares. The plan does not have an expiration date. As of December

31, 2022 and the date of this report, there is an outstanding value of about $66.3 million of common shares

that can be repurchased under the plan. The shares purchased under this plan are presented in the table

below:

113

Period

Total number of

shares

purchased

Average price

paid per share

Total number of

shares

purchased as

part of publicly

announced plans 

or Programs

Maximum number (or

approximate Dollar

value) of shares that may

yet be purchased under

the plan

$70,083,734 

June 2022

191,055 

$4.66 

$69,192,630 

July 2022

628,945 

$4.53 

$66,342,500 

Item 16F. Change in Registrant’s Certifying Accountant

Not applicable.

Item 16G. Corporate Governance

Overview

Pursuant to an exception for foreign private issuers, we, as a Marshall Islands company, are not required

to comply with the corporate governance practices followed by U.S. companies under the NYSE listing

standards. We believe that our established practices in the area of corporate governance are in line with

the spirit of the NYSE standards and provide adequate protection to our shareholders. In fact, we have

voluntarily adopted NYSE required practices, such as (a) having a majority of independent directors, (b)

establishing audit, compensation, sustainability and nominating committees and (c) adopting a Code of

Ethics. The significant differences between our corporate governance practices and the NYSE standards

are set forth below. 

Executive Sessions

The NYSE requires that non-management directors meet regularly in executive sessions without

management. The NYSE also requires that all independent directors meet in an executive session at least

once a year. As permitted under Marshall Islands law and our bylaws, our non-management directors do

not regularly hold executive sessions without management and we do not expect them to do so in the

future.

Audit Committee

The NYSE requires, among other things, that a company have an audit committee with a minimum of three

members. Our Audit Committee consists of two independent members of our Board of Directors. Our Audit

Committee conforms to every other requirement applicable to audit committees set forth in the listing

standards of the NYSE.

Shareholder Approval of Equity Compensation Plans

The NYSE requires listed companies to obtain prior shareholder approval to adopt or materially revise any

equity compensation plan. As permitted under Marshall Islands law and our amended and restated bylaws,

we do not need prior shareholder approval to adopt or revise equity compensation plans, including our

equity incentive plan.

114

Corporate Governance Guidelines

The NYSE requires companies to adopt and disclose corporate governance guidelines. The guidelines

must address, among other things: director qualification standards, director responsibilities, director access

to management and independent advisers, director compensation, director orientation and continuing

education, management succession and an annual performance evaluation. We are not required to adopt

such guidelines under Marshall Islands law and we have not adopted such guidelines. 

Share Issuances

In lieu of obtaining shareholder approval prior to the issuance of designated securities, we will comply with

provisions of the Marshall Islands Business Corporations Act, which allows the Board of Directors to

approve share issuances. Additionally, the NYSE restricts the issuance of super voting stock such as our

Series C Preferred Shares. However, pursuant to 313.00 of Section 3 of the NYSE Listed Company

Manual, the NYSE will accept any action or issuance relating to the voting rights structure of a non-U.S.

company that is in compliance with the NYSE’s requirements for domestic companies or that is not

prohibited by the company's home country law. We are not subject to such restrictions under our home

country, Marshall Islands, law.

Item 16H. Mine Safety Disclosure

Not applicable.

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

115

PART III

Item 17. Financial Statements

See Item 18.

Item 18. Financial Statements

The financial statements required by this Item 18 are filed as a part of this annual report beginning on page

F-1. 

Item 19. Exhibits

Exhibit

Number Description

1.1 

Amended and Restated Articles of Incorporation of Diana Shipping Inc. (originally known as Diana

Shipping Investment Corp.) (1)

1.2 

Amended and Restated By-laws of the Company (2)

1.3

Equity Distribution Agreement between Diana Shipping Inc. and Maxim Group LLC. dated April 23,

2021 (21)

1.4

Amendment No.1 to Equity Distribution Agreement between Diana Shipping Inc. and Maxim Group

LLC. dated July 7, 2021 (23)

2.1 

Form of Common Share Certificate (13)

2.2 

Form of Series B Preferred Stock Certificate (16)

2.3 

Statement of Designation of the 8.875% Series B Cumulative Redeemable Perpetual Preferred

Shares of the Company (3)

2.4 

Certificate of Designations of the Series A Participating Preferred Stock of the Company (4)

2.5 

Base Indenture, dated May 28, 2015, by and between the Company and Deutsche Bank Trust

Company Americas (5)

2.6

First Supplemental Indenture to the Base Indenture, dated May 28, 2015, by and between the

Company and Deutsche Bank Trust Company Americas, as trustee, relating to the Company's

8.500% Senior Notes due 2020 (6)

2.7 

Certificate of Designation of Rights, Preferences and Privileges of Series C Preferred Stock of the

Company (18)

2.8

Description of Securities

**

2.9

Certificate of Designation of Rights, Preferences and Privileges of Series D Preferred Stock of the

Company (22)

4.1 

Stockholders Rights Agreement dated January 15, 2016 (7)

4.2 

2014 Equity Incentive Plan (as amended and restated effective January 8, 2021) (24)

4.3 

Form of Technical Manager Purchase Option Agreement (8)

4.4 

Form of Management Agreement (9)

4.5 

Loan Agreement with Bremer Landesbank dated October 22, 2009 (17)

4.6 

Loan Agreement with the Export-Import Bank of China and DnB Nor Bank ASA dated October 2,

2010 (17)

4.7 

Loan Agreement with Emporiki Bank of Greece S.A., dated September 13, 2011 (14)

4.8 

First Supplemental Agreement, by and between Bikar Shipping Company Inc., Diana Shipping Inc.,

DSS and Emporiki Bank of Greece S.A., dated December 11, 2012 (13)

4.9

Second Supplemental Agreement, by and between Bikar Shipping Company Inc., Diana Shipping

Inc., DSS and Credit Agricole Corporate and Investment Bank, dated December 13, 2012 (13)

4.10 

Loan Agreement, dated May 24, 2013, by and among Erikub Shipping Company Inc., Wotho

Shipping Company Inc., DNB Bank ASA, and Export-Import Bank of China (11)

116

4.11 

Loan Agreement, dated January 9, 2014, by and among Taka Shipping Company Inc., Fayo Shipping

Company Inc., and Commonwealth Bank of Australia (11)

4.12 

Loan Agreement, dated December 18, 2014, by and among Weno Shipping Company Inc., Pulap

Shipping Company Inc., the Banks and Financial Institutions listed therein and BNP Paribas (12)

4.13 

Loan Agreement, dated March 17, 2015, by and among Knox Shipping Company Inc., Bokak

Shipping Company Inc., Jemo Shipping Company Inc., Guam Shipping Company Inc., Palau

Shipping Company Inc., Makur Shipping Company Inc., Mandaringina Inc., Vesta Commercial, S.A.,

the Banks and Financial Institutions listed therein, Nordea Bank Finland Plc and Nordea Bank AB,

London Branch (12)

4.14 

Administrative Services Agreement, dated October 1, 2013, by and between Diana Shipping Inc. and

Diana Shipping Services S.A. (11)

4.15 

Amended and Restated Non-Competition Agreement, dated as of March 1, 2013, by and between

Diana Shipping Inc. and Diana Containerships Inc. (renamed to Performance Shipping Inc.) (11)

4.16 

Loan Agreement with ABN AMRO Bank N.V., dated March 26, 2015 (13)

4.17 

Loan Agreement with Danish Ship Finance, dated April 29, 2015 (13)

4.18 

Joint Venture and Subscription Agreement with Wilhelmsen Ship Management, dated January 16,

2015 (13)

4.19 

Loan Agreement with BNP Paribas, dated July 22, 2015 (13)

4.20 

Loan Agreement with ING Bank N.V., dated September 30, 2015 (13)

4.21 

Loan Agreement with The Export-Import Bank of China, dated January 7, 2016 (13)

4.22 

Loan Agreement with ABN AMRO Bank N.V., dated March 29, 2016 (15)

4.23 

Brokerage Services Agreement, dated April 1, 2016, by and between Diana Shipping Inc. and Diana

Enterprises Inc. (15)

4.24 

Loan Agreement with DNB Bank ASA and The Export-Import Bank of China, dated May 10, 2016

(15)

4.25 

Fourth Amendment to Loan Agreement, dated May 20, 2013, by and between Diana Shipping Inc.,

Eluk Shipping Company Inc. and Diana Containerships Inc. (renamed to Performance Shipping Inc.),

dated September 12, 2016 (15)

4.26 

Waiver Letter from Commonwealth Bank of Australia dated January 13, 2017 (15)

4.27 

Amendment to Loan Agreement dated October 2, 2010 with the Export-Import Bank of China and

DnB Nor Bank ASA, dated February 15, 2017 (15)

4.28 

Brokerage Services Agreement, dated April 1, 2019, by and between Diana Shipping Inc. and

Steamship Shipbroking Enterprises Inc. (formerly Diana Enterprises Inc.) (20)

4.29

Fifth Amendment to Loan Agreement, dated May 20, 2013, by and between Diana Shipping Inc.,

Kapa Shipping Company Inc. and Diana Containerships Inc. (renamed to Performance Shipping

Inc.), dated May 30, 2017 (19)

4.30 

Intercreditor Agreement with Diana Containerships Inc. (renamed to Performance Shipping Inc.),

dated June 30, 2017 (19)

4.31

Subordinated Facility Agreement by and between Diana Containerships Inc. (renamed to

Performance Shipping Inc.) and Diana Shipping Inc., dated June 30, 2017 (19)

4.32 

Amendment to Loan Agreement dated October 2, 2010 with the Export-Import Bank of China and

DnB Nor Bank ASA, dated May 18, 2017 (19)

4.33 

Loan Agreement dated July 2018 with BNP Paribas (20)

4.34 

Summary for Diana Shipping Inc. listing prospectus dated as of December 31, 2018 in respect of

9.50% USD 100,000,000 Senior Unsecured Callable Bond Issue 2018/2023 (20)

4.35 

Securities Note dated as of December 3, 2018, in respect of 9.50% USD 100,000,000 Senior

Unsecured Callable Bond Issue 2018/2023 (20)

4.36 

Registration Document dated as of December 3, 2018, in respect of 9.50% USD 100,000,000 Senior

Unsecured Callable Bond Issue 2018/2023 (20)

4.37 

Loan Agreement dated March 2019 with DNB Bank ASA (20)

4.38

Loan Agreement dated June 2019 with ABN AMRO Bank N.V.(24)

4.39

Third Amendment Agreement dated December 2020 with DNB Bank ASA (24)

4.40

Loan Agreement dated May 2020 with ABN AMRO Bank N.V. (24)

117

4.41

Loan Agreement dated May 2020 with Nordea Bank Abp, filial i Norge(24)

4.42 

Loan Agreement dated June 2020 with BNP Paribas(24)

4.43

Brokerage Services Agreement, dated July 1, 2020, by and between Diana Shipping Inc. and Diana

Enterprises Inc(24)

4.44

Loan Agreement dated May 2021 with ABN AMRO Bank N.V (25)

4.45:

Nordea Supplemental Agreement dated July, 29, 2021

**

4.46:

Nordea Loan Agreement dated September 30, 2022

**

4.47:

Right of First Refusal Agreement with OceanPal Inc.

**

4.48:

Amended and Restated Contribution and Conveyance Agreement with OceanPal Inc.

**

8.1

Subsidiaries of the Company**

11.1

Amended Code of Ethics (20)

12.1

Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer

**

12.2

Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer

**

13.1

Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant

to Section 906 of the Sarbanes-Oxley Act of 2002

**

13.2

Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant

to Section 906 of the Sarbanes-Oxley Act of 2002

**

15.1

Consent of Independent Registered Public Accounting Firm

**

101 The following materials from the Company's Annual Report on Form 20-F for the fiscal year ended

December 31, 2022, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated

Balance Sheets as of December 31, 2022 and 2021; (ii) Consolidated Statements of Operations for

the years ended December 31, 2022, 2021 and 2020; (iii) Consolidated Statements of

Comprehensive Income/(Loss) for the years ended December 31, 2022, 2021 and 2020; (iv)

Consolidated Statements of Stockholders' Equity for the years ended December 31, 2022, 2021 and

2020; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and

2020; and (v) the Notes to Consolidated Financial Statements

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

** Filed herewith.

(1) Filed as Exhibit 1 to the Company's Form 6-K filed on May 29, 2008.

(2) Filed as Exhibit 3.1 to the Company's Form 6-K filed on February 13, 2014.

(3) Filed as Exhibit 3.3 to the Company's Form 8-A filed on February 13, 2014.

(4) Filed as Exhibit 3.1 to the Company's Form 8-A12B/A filed on January 15, 2016.

(5) Filed as Exhibit 4.1 to the Company's Form 6-K filed on May 28, 2015.

(6) Filed as Exhibit 4.2 to the Company's Form 6-K filed on May 28, 2015.

(7) Filed as Exhibit 4.1 to the Company's Form 8-A12B/A filed on January 15, 2016.

(8) Filed as an Exhibit to the Company's Registration Statement (File No. 123052) on March 1, 2005.

(9) Filed as an Exhibit to the Company's Amended Registration Statement (File No. 123052) on March

15, 2005.

(10) Reserved.

(11) Filed as an Exhibit to the Company's Annual Report filed on Form 20-F on March 27, 2014. 

(12) Filed as an Exhibit to the Company's Annual Report filed on Form 20-F on March 25, 2015. 

(13) Filed as an Exhibit to the Company's Annual Report filed on Form 20-F on March 28, 2016. 

(14) Filed as an Exhibit to the Company's Annual Report filed on Form 20-F on April 20, 2012. 

(15) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on February 17, 2017.

(16) Filed as Exhibit 4.1 to the Company's Form 8-A12B filed on February 13, 2014.

(17) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 31, 2011.

(18) Filed as an Exhibit to the Company’s Form 6-K filed on February 6, 2019.

(19) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 16, 2018.

(20) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 12, 2019.

(21) Filed as an Exhibit to the Company’s Form 6-K filed on April 23, 2021.

(22) Filed as an Exhibit to the Company’s Form 6-K filed on June 23, 2021.

118

(23) Filed as an Exhibit to the Company’s Form 6-K filed on July 31, 2021.

(24) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 12, 2021.

(25) Filed as an Exhibit to the Company’s Form F-3 filed on June 4, 2021.

119

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and has duly

caused and authorized the undersigned to sign this annual report on its behalf.

DIANA SHIPPING INC.

/s/ Ioannis Zafirakis 

Ioannis Zafirakis

Chief Financial Officer 

Dated: March 27, 2023

F-1

DIANA SHIPPING INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Page

Report of Independent Registered Public Accounting Firm (PCAOB ID:

1457

) .................. 

F-2

Report of Independent Registered Public Accounting Firm ................................ ................ 

F-4

Consolidated Balance Sheets as of December 31, 2022 and 2021 ................................ ... 

F-6

Consolidated Statements of Operations for the years ended December 31, 2022, 2021

and 2020 ................................ ................................ ................................ ........................... 

F-7

Consolidated Statements of Comprehensive Income/(Loss) for the years ended

December 31, 2022, 2021 and 2020 ................................ ................................ .................. 

F-8

Consolidated Statements of Stockholders' Equity for the years ended December 31,

2022, 2021 and 2020 ................................ ................................ ................................ ......... 

F-9

Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021

and 2020 ................................ ................................ ................................ ........................... 

F-

11

Notes to Consolidated Financial Statements................................ ................................ ...... 

F-13

F-2

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Diana Shipping Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Diana Shipping Inc. (the Company)

as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive

income/(loss), stockholders' equity and cash flows for each of the three years in the period ended

December 31, 2022, and the related notes (collectively referred to as the “consolidated financial

statements”). In our opinion, the consolidated financial statements present fairly, in all material respects,

the financial position of the Company at December 31, 2022 and 2021, and the results of its operations

and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with

U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight

Board (United States) (PCAOB), the Company's internal control over financial reporting as of December

31, 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee

of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March

27, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to

express an opinion on the Company’s financial statements based on our audits. We are a public accounting

firm registered with the PCAOB and are required to be independent with respect to the Company in

accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities

and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that

we plan and perform the audit to obtain reasonable assurance about whether the financial statements are

free of material misstatement, whether due to error or fraud. Our audits included performing procedures to

assess the risks of material misstatement of the financial statements, whether due to error or fraud, and

performing procedures that respond to those risks. Such procedures included examining, on a test basis,

evidence regarding the amounts and disclosures in the financial statements. Our audits also included

evaluating the accounting principles used and significant estimates made by management, as well as

evaluating the overall presentation of the financial statements. We believe that our audits provide a

reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the

financial statements that was communicated or required to be communicated to the audit committee and

that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our

especially challenging, subjective or complex judgments. The communication of the critical audit matter

does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we

are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit

matter or on the accounts or disclosure to which it relates.

F-3

Recoverability assessment of vessels held and used

Description

of the matter

At December 31, 2022, the carrying value of the Company’s vessels plus

unamortized deferred costs was $965,918 thousands. As discussed in Note 2

(l) to the consolidated financial statements, the Company evaluates its vessels

for impairment whenever events or changes in circumstances indicate that the

carrying value of a vessel plus unamortized deferred costs may not be

recoverable in accordance with the guidance in ASC 360 – Property, Plant and

Equipment (“ASC 360”). If indicators of impairment exist, management

analyzes the future undiscounted net operating cash flows expected to be

generated throughout the remaining useful life of each vessel and compares it

to the carrying value of the vessel plus unamortized deferred costs. Where a

vessel’s carrying value plus unamortized deferred costs exceeds the

undiscounted net operating cash flows, management will recognize an

impairment loss equal to the excess of the carrying value plus unamortized

deferred costs over the fair value of the vessel. 

Auditing management’s recoverability assessment was complex given the

judgement and estimation uncertainty involved in determining the future charter

rates for non-contracted revenue days used in forecasting undiscounted net

operating cash flows. These rates are subjective as they involve the

development and use of assumptions about the dry-bulk shipping market

through the end of the useful lives of the vessels. This assumption is forward

looking and subject to the inherent unpredictability of future global economic

and market conditions. 

How we

addressed

the matter in

our audit

We obtained an understanding of the Company’s impairment process,

evaluated the design, and tested the operating effectiveness of the controls

over the Company’s recoverability assessment of vessels held and used,

including the determination of future charter rates for non-contracted revenue

days.

We evaluated management’s recoverability assessment by comparing the

methodology and model used for each vessel against the accounting guidance

in ASC 360. To test management’s undiscounted net operating cash flow

forecasts, our procedures included, among others, comparing the future vessel

charter rates for non-contracted revenue days with external data such as

available market data from various analysts and recent economic and industry

changes, and internal data such as historical charter rates for the vessels. In

addition, we performed sensitivity analyses to assess the impact of changes to

future charter rates for non-contracted revenue days in the determination of the

future undiscounted net operating cash flows. We tested the completeness and

accuracy of the data used within the forecasts. We assessed the adequacy of

the Company’s disclosures in Note 2 (l) to the consolidated financial

statements.

/s/

Ernst & Young (Hellas) Certified Auditors Accountants S.A.

We have served as the Company’s auditor since 2004.

Athens, Greece

March 27, 2023

F-4

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Diana Shipping Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Diana Shipping Inc.’s internal control over financial reporting as of December 31, 2022,

based on criteria established in Internal Control—Integrated Framework issued by the Committee of

Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our

opinion, Diana Shipping Inc. (the Company) maintained, in all material respects, effective internal control

over financial reporting as of December 31, 2022, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight

Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31,

2022 and 2021, the related consolidated statements of operations, comprehensive income/(loss),

stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2022,

and the related notes and our report dated March 27, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial

reporting and for its assessment of the effectiveness of internal control over financial reporting included in

the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our

responsibility is to express an opinion on the Company’s internal control over financial reporting based on

our audit. We are a public accounting firm registered with the PCAOB and are required to be independent

with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules

and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we

plan and perform the audit to obtain reasonable assurance about whether effective internal control over

financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the

risk that a material weakness exists, testing and evaluating the design and operating effectiveness of

internal control based on the assessed risk, and performing such other procedures as we considered

necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 

F-5

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for

external purposes in accordance with generally accepted accounting principles. A company’s internal

control over financial reporting includes those policies and procedures that (1) pertain to the maintenance

of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the

assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to

permit preparation of financial statements in accordance with generally accepted accounting principles,

and that receipts and expenditures of the company are being made only in accordance with authorizations

of management and directors of the company; and (3) provide reasonable assurance regarding prevention

or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have

a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect

misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk

that controls may become inadequate because of changes in conditions, or that the degree of compliance

with the policies or procedures may deteriorate.

/s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A.

Athens, Greece 

March 27, 2023

F-6

DIANA SHIPPING INC. 

CONSOLIDATED BALANCE SHEETS

December 31, 2022 and 2021

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

2022

2021

ASSETS

Current Assets

Cash and cash equivalents (Note 2(e))

$

76,428

$

110,288

Time deposits (Note 2(e))

46,500

-

Accounts receivable, trade (Note 2(f))

6,126

2,832

Due from related parties, net of provision for credit losses (Note 3(c) and 8(b))

216

952

Inventories (Note 2(g))

4,545

6,089

Prepaid expenses and other assets

6,749

5,484

Total Current Assets

140,564

125,645

Fixed Assets:

Advances for vessel acquisitions (Note 4)

24,123

16,287

Vessels, net (Note 4)

949,616

643,450

Property and equipment, net (Note 5)

22,963

22,842

Total fixed assets

996,702

682,579

Other Noncurrent Assets

Restricted cash, non-current (Note 6)

21,000

16,500

Equity method investments (Note 3(c))

506

-

Investments in related party (Note 3(f))

7,744

7,644

Other non-current assets

101

1,455

Deferred costs (Note 2(n))

16,302

8,127

Total Non-current Assets

1,042,355

716,305

Total Assets

$

1,182,919

$

841,950

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Current portion of long-term debt, net of deferred financing costs (Note 6)

$

91,495

$

41,148

Current portion of finance liabilities, net of deferred financing costs (Note 7)

8,802

-

Accounts payable

11,242

9,777

Due to related parties (Note 3(a) and (c))

136

596

Accrued liabilities

12,134

7,878

Deferred revenue (Note 2(q))

7,758

5,732

Total Current Liabilities

131,567

65,131

Non-current Liabilities

Long-term debt, net of current portion and deferred financing costs (Note 6)

431,016

382,527

Finance liabilities, net of current portion and deferred financing costs (Note 7)

132,129

-

Other non-current liabilities

879

1,097

Total Noncurrent Liabilities

564,024

383,624

Commitments and contingencies (Note 8)

-

-

Stockholders' Equity

Preferred stock (Note 9)

26

26

Common stock, $

0.01

 par value;

200,000,000

 shares authorized and

102,653,619

and

84,672,258

 issued and outstanding on December 31, 2022 and 2021,

respectively (Note 9)

1,027

847

Additional paid in capital

1,061,015

982,537

Accumulated other comprehensive income

253

71

Accumulated deficit

(574,993)

(590,286)

Total Stockholders' Equity

487,328

393,195

 Total Liabilities and Stockholders' Equity

$

1,182,919

$

841,950

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

F-7

DIANA SHIPPING INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

For the years ended December 31, 2022, 2021 and 2020

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

data)

2022

2021

2020

REVENUES:

Time charter revenues (Note 2(q))

$

289,972

$

214,203

$

169,733

OPERATING EXPENSES

Voyage expenses (Notes 2(q) and 10)

6,942

5,570

13,525

Vessel operating expenses (Note 2(r))

72,033

74,756

85,847

Depreciation and amortization of deferred charges 

(Note 2(m) and (n))

43,326

40,492

42,991

General and administrative expenses

29,367

29,192

32,778

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

511

1,432

2,017

Vessel impairment charges (Note 2(l))

-

-

104,395

(Gain)/loss on sale of vessels (Note 4)

(2,850)

(1,360)

1,085

Insurance recoveries (Note 8(a))

(1,789)

-

-

Other operating (income)/loss

(265)

603

(230)

Operating income/(loss), total

$

142,697

$

63,518

$

(112,675)

OTHER INCOME / (EXPENSES):

Interest expense and finance costs (Note 11)

(27,419)

(20,239)

(21,514)

Interest and other income

2,737

176

728

(Loss)/gain on extinguishment of debt

(435)

(980)

374

Gain on spin-off of OceanPal Inc. (Note 3(f))

-

15,252

-

Gain on dividend distribution (Note 3(f))

589

-

-

Gain/(loss) from equity method investments (Note 3(c))

894

(333)

(1,110)

Total other expenses, net

$

(23,634)

$

(6,124)

$

(21,522)

Net income/(loss)

$

119,063

$

57,394

$

(134,197)

Dividends on series B preferred shares (Notes 9(b) and

12)

(5,769)

(5,769)

(5,769)

Net income/(loss) attributable to common

stockholders

$

113,294

$

51,625

$

(139,966)

Earnings/(loss) per common share, basic

 (Note 12)

$

1.42

$

0.64

$

(1.62)

Earnings/(loss) per common share, diluted

 (Note

12)

$

1.36

$

0.61

$

(1.62)

Weighted average number of common shares

outstanding, basic

 (Note 12)

80,061,040

81,121,781

86,143,556

Weighted average number of common shares

outstanding, diluted

 (Note 12)

83,318,901

84,856,840

86,143,556

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

F-8

DIANA SHIPPING INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

For the years ended December 31, 2022, 2021 and 2020

(Expressed in thousands of U.S. Dollars)

2022

2021

2020

Net income/(loss)

$

119,063

$

57,394

$

(134,197)

Other comprehensive income/(loss) - Defined benefit

plan

182

2

(40)

Comprehensive income/(loss)

$

119,245

$

57,396

$

(134,237)

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

F-9

DIANA SHIPPING INC. 

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the years ended December 31, 2022, 2021 and 2020

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

Preferred Stock

Series B

Preferred Stock

Series C

Preferred Stock

Series D

Common Stock

Additional

Paid-in

Capital

Other

Comprehe

nsive

Income /

(Loss)

Accumulat

ed Deficit

Total 

Equity

# of Shares

Par

Valu

e

# of

Shares

Par

Valu

e

# of

Shares

Par

Valu

e

# of Shares

Par

Value

BALANCE,

December 31, 2019

2,600,000

$

26

10,675

$

-

-

$

-

91,193,339

$

912

$

1,021,633

$

109

$

(452,616)

$

570,064

Net loss

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(134,197)

(134,197)

Issuance of

restricted stock and

compensation cost

(Note 9(h))

-

-

-

-

-

-

2,200,000

22

10,489

-

-

10,511

Stock repurchased

and retired (Note

9(e))

-

-

-

-

-

-

(4,118,337)

(41)

(11,958)

-

-

(11,999)

Dividends on series

B preferred stock

(Note 9(b))

-

-

-

-

-

-

-

-

-

-

(5,769)

(5,769)

Other

comprehensive

loss

-

-

-

-

-

-

-

-

-

(40)

-

(40)

BALANCE,

December 31, 2020

2,600,000

$

26

10,675

$

-

-

$

-

89,275,002

$

893

$

1,020,164

$

69

$

(592,582)

$

428,570

Net income

-

-

-

-

-

-

-

-

-

-

57,394

57,394

Issuance of Series

D Preferred Stock

(Note 9(d))

-

-

-

-

400

-

-

-

254

-

-

254

Issuance of

restricted stock and

compensation cost

(Note 9(h))

-

-

-

-

-

-

8,260,000

83

7,359

-

-

7,442

Stock repurchased

and retired (Note

9(e))

-

-

-

-

-

-

(12,862,744)

(129)

(45,240)

-

-

(45,369)

Dividends on series

B preferred stock

(Note 9(b))

-

-

-

-

-

-

-

-

-

-

(5,769)

(5,769)

Dividends on

common stock

(Note 9(f))

-

-

-

-

-

-

-

-

-

-

(8,820)

(8,820)

OceanPal Inc.

spinoff (Note 9(g))

-

-

-

-

-

-

-

-

-

-

(40,509)

(40,509)

Other

comprehensive

income

-

-

-

-

-

-

-

-

-

2

-

2

F-10

BALANCE,

December 31, 2021

2,600,000

$

26

10,675

$

-

400

$

-

84,672,258

$

847

$

982,537

$

71

$

(590,286)

$

393,195

Net income

-

-

-

-

-

-

-

-

-

-

119,063

119,063

Issuance of

restricted stock and

compensation cost

(Note 9(h))

-

-

-

-

-

-

1,470,000

15

9,267

-

-

9,282

Stock repurchased

and retired (Note

9(e))

-

-

-

-

-

-

(820,000)

(8)

(3,791)

-

-

(3,799)

Issuance of

common stock

(Note 9(e))

-

-

-

-

-

-

877,581

9

5,313

-

-

5,322

Issuance of

common stock for

vessel acquisitions

(Notes 4 and 9(e))

-

-

-

-

-

-

16,453,780

164

67,689

-

-

67,853

Dividends on series

B preferred stock

(Note 9(b))

-

-

-

-

-

-

-

-

-

-

(5,769)

(5,769)

Dividends on

common stock

(Note 9(f))

-

-

-

-

-

-

-

-

-

-

(79,812)

(79,812)

Dividends in kind

(Note 9(g))

-

-

-

-

-

-

-

-

-

-

(18,189)

(18,189)

Other

comprehensive

income

-

-

-

-

-

-

-

-

-

182

-

182

BALANCE,

December 31, 2022

2,600,000

$

26

10,675

$

-

400

$

-

102,653,619

$

1,027

$

1,061,015

$

253

$

(574,993)

$

487,328

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

F-

11

DIANA SHIPPING INC. 

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2022, 2021 and 2020

(Expressed in thousands of U.S. Dollars)

2022

2021

2020

 Cash Flows from Operating Activities: 

Net income/(loss)

$

119,063

$

57,394

$

(134,197)

Adjustments to reconcile net income/(loss) to cash provided by

operating activities

Depreciation and amortization of deferred charges

43,326

40,492

42,991

Asset Impairment loss (Note 2(l))

-

-

104,395

Amortization of debt issuance costs (Note 11)

2,286

1,865

1,066

Compensation cost on restricted stock (Note 9(h))

9,282

7,442

10,511

Provision for credit loss and write offs (Note 2(z) and 3(c))

133

300

-

Dividend income (Note 3(f))

(100)

(69)

-

Pension and other postretirement benefits

182

2

(40)

(Gain)/loss on sale of vessels (Notes 4)

(2,850)

(1,360)

1,085

Gain on dividend distribution (Note 3(f))

(589)

-

-

(Gain)/loss on extinguishment of debt (Note 6)

435

980

(374)

Gain on OceanPal spinoff (Note 3(f))

-

(15,252)

-

(Gain)/loss from equity method investments (Note 3(c))

(894)

333

1,110

(Increase) / Decrease

Accounts receivable, trade

(3,427)

1,568

2,627

Due from related parties

736

(56)

(1,173)

Inventories

1,768

(1,581)

809

Prepaid expenses and other assets

(1,265)

1,759

1,967

Other non-current assets

(16)

(1,177)

(252)

Increase / (Decrease) 

Accounts payable, trade and other

1,465

1,219

(2,836)

Due to related parties

(72)

154

(31)

Accrued liabilities

3,956

(2,610)

(780)

Deferred revenue 

2,026

2,890

310

Other non-current liabilities

(218)

(57)

168

Drydock cost

(16,368)

(4,531)

(10,122)

Net Cash Provided by Operating Activities

$

158,859

$

89,705

$

17,234

 Cash Flows from Investing Activities: 

Payments to acquire vessels and vessel improvements (Note 4)

(230,302)

(17,393)

(6,001)

Proceeds from sale of vessels, net of expenses (Note 4)

4,372

33,731

15,623

Proceeds from sale of related party investment

-

-

1,500

Time deposits

 (Note 2(e))

(46,500)

-

-

Payments to joint venture (Note 3(c))

-

(375)

(500)

Investment in spun-off subsidiary (Note 3(f))

-

(1,000)

-

Payments to acquire furniture and fixtures (Note 5)

(667)

(1,600)

(138)

Net Cash Provided by/(Used in) Investing Activities

$

(273,097)

$

13,363

$

10,484

 Cash Flows from Financing Activities: 

Proceeds from issuance of long-term debt and finance liabilities (Notes

6 and 7)

275,133

101,279

-

Proceeds from issuance of common stock, net of expenses (Note 9(e))

5,266

-

-

Proceeds from issuance of preferred stock, net of expenses (Note 9(d))

-

254

-

Payments of dividends, preferred stock (Note 9(b))

(5,769)

(5,769)

(5,769)

Payments of dividends, common stock (Note 9(f))

(79,812)

(8,820)

-

Payments for repurchase of common stock (Note 9(e))

(3,799)

(45,369)

(11,999)

Payments of financing costs (Notes 6 and 7)

(3,302)

(7,594)

(567)

Repayments of long-term debt and finance liabilities (Notes 6 and 7)

(102,839)

(93,170)

(54,762)

Net Cash Provided by / (Used in) Financing Activities

$

84,878

$

(59,189)

$

(73,097)

Cash, Cash Equivalents and Restricted Cash, Period

Increase/(Decrease)

(29,360)

43,879

(45,379)

Cash, Cash Equivalents and Restricted Cash, Beginning Balance

126,788

82,909

128,288

Cash, Cash Equivalents and Restricted Cash, Ending Balance

$

97,428

$

126,788

$

82,909

RECONCILIATION OF CASH, CASH EQUIVALENTS AND

RESTRICTED CASH

Cash and cash equivalents

$

76,428

$

110,288

62,909

Restricted cash, non-current

21,000

16,500

20,000

F-12

Cash, Cash Equivalents and Restricted Cash, Total

$

97,428

$

126,788

$

82,909

SUPPLEMENTAL CASH FLOW INFORMATION

Non-cash acquisition of assets (Note 4)

$

136,038

$

-

-

Non-cash debt assumed (Note 6)

20,571

-

-

Stock issued in noncash financing activities (Note 4)

67,909

Transfer to investments (Note 4)

1,370

441

2,474

Non-cash finance liability (Note 7)

47,782

-

-

Interest paid

$

21,306

$

19,608

21,397

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

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-13

1. Basis of Presentation and General Information 

The accompanying 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 Company is engaged in the ocean transportation of dry bulk cargoes worldwide 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

50

% owned joint venture (Note 3). The fees paid to DSS are eliminated in consolidation. 

The outbreak of war between Russia and the Ukraine has disrupted supply chains and caused instability

in the energy markets and the global economy, which have experienced significant volatility. The United

States and the European Union, among other countries, have announced sanctions against Russia,

including sanctions targeting the Russian oil sector, among those a prohibition on the import of oil and coal

from Russia to the United States.

As of December 31, 2022, and during the year ended December 31, 2022, the Company’s operations, or

counterparties, have not been significantly affected by the war in Ukraine and their implications, however,

as volatility continues it is difficult to predict the long-term impact on the industry and on the Company’s

business and it is possible that in the future third parties with whom the Company has or will have contracts

may be impacted by such events and sanctions. The Company is constantly monitoring the developing

situation, as well as its charterers’ and other counterparties’ response to the market and continuously

evaluates the effect on its operations. As events continue to evolve and additional information becomes

available, the Company’s estimates may change in future periods.

2. Significant Accounting Policies

a) Principles of Consolidation

: The accompanying consolidated financial statements have been

prepared in accordance with U.S. generally accepted accounting principles and include the accounts of

Diana Shipping Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have

been eliminated upon consolidation. Under Accounting Standards Codification (“ASC”) 810

“Consolidation”, the Company consolidates entities in which it has a controlling financial interest, by first

considering if an entity meets the definition of a variable interest entity ("VIE") for which the Company is

deemed to be the primary beneficiary under the VIE model, or if the Company controls an entity through a

majority of voting interest based on the voting interest model. The Company evaluates financial

instruments, service contracts, and other arrangements to determine if any variable interests relating to an

entity exist. For entities in which the Company has a variable interest, the Company determines if the entity

is a VIE by considering whether the entity’s equity investment at risk is sufficient to finance its activities

without additional subordinated financial support and whether the entity’s at-risk equity holders have the

characteristics of a controlling financial interest. In performing the analysis of whether the Company is the

primary beneficiary of a VIE, the Company considers whether it individually has the power to direct the

activities of the VIE that most significantly affect the entity’s performance and also has the obligation to

absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The

Company had identified it had variable interests in DWM, as it was considered that all of its activities either

involved or were conducted on behalf of the Company and its related parties but was not the primary

beneficiary. The Company has reconsidered this initial determination and determined that since DWM

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-14

meets the definition of a business and the Company does not have any obligations to absorb losses of the

joint venture, DWM is not a VIE. If the Company holds a variable interest in an entity that previously was

not a VIE, it reconsiders whether the entity has become a VIE.

b) Use of Estimates:

The preparation of consolidated financial statements in conformity with U.S.

generally accepted accounting principles requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at

the date of the consolidated financial statements and the reported amounts of revenues and expenses

during the reporting period. Actual results could differ from those estimates.

c) Other Comprehensive Income / (Loss):

The Company separately presents certain transactions,

which are recorded directly as components of stockholders’ equity. Other Comprehensive Income / (Loss)

is presented in a separate statement.

d) Foreign Currency Translation:

The functional currency of the Company is the U.S. dollar because

the Company’s vessels operate in international shipping markets, and therefore primarily transact business

in U.S. dollars. The Company’s accounting records are maintained in U.S. dollars. Transactions involving

other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the

time of the transactions. At the balance sheet dates, monetary assets and liabilities which are denominated

in other currencies are translated into U.S. dollars at the year-end exchange rates. Resulting gains or

losses are included in other operating (income)/loss in the accompanying consolidated statements of

operations.

e) Cash, Cash Equivalents and Time Deposits:

The Company considers highly liquid investments

such as time deposits, certificates of deposit and their equivalents with an original maturity of up to about

three months to be cash equivalents. Time deposits with maturity above three months are removed from

cash and cash equivalents and are separately presented as time deposits. Restricted cash consists mainly

of cash deposits required to be maintained at all times under the Company’s loan facilities (Note 6).

f) Accounts Receivable, Trade:

The amount shown as accounts receivable, trade, at each balance

sheet date, includes receivables from charterers for hire from lease agreements, net of provisions for

doubtful accounts, if any. At each balance sheet date, all potentially uncollectible accounts are assessed

individually for purposes of determining the appropriate provision for doubtful accounts. As of December

31, 2022 and 2021 there was

no

 provision for doubtful accounts. The Company does not recognize interest

income on trade receivables as all balances are settled within a year.

g) Inventories:

Inventories consist of lubricants and victualling which are stated, on a consistent

basis, at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the

ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

When evidence exists that the net realizable value of inventory is lower than its cost, the difference is

recognized as a loss in earnings in the period in which it occurs. Cost is determined by the first in, first out

method. Amounts removed from inventory are also determined by the first in first out method. Inventories

may also consist of bunkers, when on the balance sheet date, a vessel is without employment. Bunkers, if

any, are also stated at the lower of cost or net realizable value and cost is determined by the first in, first

out method.

h) Vessel Cost

: Vessels are stated at cost which consists of the contract price and any material

expenses incurred upon acquisition or during construction. Expenditures for conversions and major

improvements are also capitalized when they appreciably extend the life, increase the earning capacity or

improve the efficiency or safety of the vessels; otherwise, these amounts are charged to expense as

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-15

incurred. Interest cost incurred during the assets' construction periods that theoretically could have been

avoided if expenditure for the assets had not been made is also capitalized. The capitalization rate, applied

on accumulated expenditures for the vessel, is based on interest rates applicable to outstanding borrowings

of the period.

i) Vessels held for sale:

 The Company classifies assets as being held for sale when the respective

criteria are met. Long-lived assets or disposal groups classified as held for sale are measured at the lower

of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet

the criteria to be held for sale. The fair value less cost to sell of an asset held for sale is assessed at each

reporting period it remains classified as held for sale. When the plan to sell an asset changes, the asset is

reclassified as held and used, measured at the lower of its carrying amount before it was recorded as held

for sale, adjusted for depreciation, and the asset’s fair value at the date of the decision not to sell.

j) Sale and leaseback:

 In accordance with ASC 842-40 in a sale-leaseback transaction where the

sale of an asset and leaseback of the same asset by the seller is involved, the Company, as seller-lessee,

should firstly determine whether the transfer of an asset shall be accounted for as a sale under ASC 606.

For a sale to have occurred, the control of the asset would need to be transferred to the buyer and the

buyer would need to obtain substantially all the benefits from the use of the asset. As per the

aforementioned guidance, sale and leaseback transactions, which include an obligation for the Company,

as seller-lessee, to repurchase the asset, or other situations where the leaseback would be classified as a

finance lease, are determined to be failed sales under ASC 842-40. Consequently, the Company does not

derecognize the asset from its balance sheet and accounts for any amounts received under the sale and

leaseback agreement as a financing arrangement.

k) Property and equipment:

 The Company owns the land and building where its offices are located.

The Company also owns part of a plot acquired for office use (Note 5). Land is stated at cost and it is not

subject to depreciation. The building has an estimated useful life of

55 years

 with

no

 residual value.

Furniture, office equipment and vehicles have a useful life of

5 years

, except for a car owned by the

Company, which has a useful life of

10 years

. Computer software and hardware have a useful life of

three

years

. Depreciation is calculated on a straight-line basis.

l) Impairment of Long-Lived Assets:

Long-lived assets are reviewed for impairment whenever

events or changes in circumstances (such as market conditions, obsolesce or damage to the asset,

potential sales and other business plans) indicate that the carrying amount of an asset may not be

recoverable. When the estimate of undiscounted projected net operating cash flows, excluding interest

charges, expected to be generated by the use of an asset over its remaining useful life and its eventual

disposition is less than its carrying amount, the Company evaluates the asset for impairment loss.

Measurement of the impairment loss is based on the fair value of the asset, determined mainly by third

party valuations. 

For vessels, the Company calculates undiscounted projected net operating cash flows by considering the

historical and estimated vessels’ performance and utilization with the significant assumption being future

charter rates for the unfixed days, using the most recent

10

-year average of historical 1 year time charter

rates available for each type of vessel over the remaining estimated life of each vessel, net of commissions.

Historical ten-year blended average one-year time charter rates are in line with the Company’s overall

chartering strategy, they reflect the full operating history of vessels of the same type and particulars with

the Company’s operating fleet and they cover at least a full business cycle, where applicable. When the

10-year average of historical 1 year time charter rates is not available for a type of vessels, the Company

uses the average of historical 1 year time charter rates of the available period. Other assumptions used in

developing estimates of future undiscounted cash flow are charter rates calculated for the fixed days using

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-16

the fixed charter rate of each vessel from existing time charters, the expected outflows for scheduled

vessels’ maintenance; vessel operating expenses; fleet utilization, and the vessels’ residual value if sold

for scrap. Assumptions are in line with the Company’s historical performance and its expectations for future

fleet utilization under its current fleet deployment strategy. This calculation is then compared with the

vessels’ net book value plus unamortized deferred costs. The difference between the carrying amount of

the vessel plus unamortized deferred costs and their fair value is recognized in the Company's accounts

as impairment loss.

The Company’s impairment assessment resulted in the

recognition of impairment

 on certain vessels’

carrying value in 2020 amounting to $

104,395

.

No

 impairment loss was identified or recorded in 2021 and

2022.

For property and equipment, the Company determines undiscounted projected net operating cash flows

by considering an estimated monthly rent the Company would have to pay in order to lease a similar

property, during the useful life of the building.

No

 impairment loss was identified or recorded for 2022, 2021

and 2020 and the Company has not identified any other facts or circumstances that would require the write

down of the value of its land or building in the near future.

m) Vessel Depreciation:

Depreciation is computed using the straight-line method over the estimated

useful life of the vessels, after considering the estimated salvage (scrap) value. Each vessel’s salvage

value is equal to the product of its lightweight tonnage and estimated scrap rate. Management estimates

the useful life of the Company’s vessels to be

25 years

 from the date of initial delivery from the shipyard.

Second-hand vessels are depreciated from the date of their acquisition through their remaining estimated

useful life. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its

remaining useful life is adjusted at the date such regulations are adopted.

n) Deferred Costs

: The Company follows the deferral method of accounting for dry-docking and

special survey costs whereby actual costs incurred are deferred and amortized on a straight-line basis over

the period through the date the next survey is scheduled to become due. Unamortized deferred costs of

vessels that are sold or impaired are written off and included in the calculation of the resulting gain or loss

in the year of the vessel’s sale (Note 4) or impairment.

o) Financing Costs

: Fees paid for obtaining finance liabilities, fees paid to lenders for obtaining new

loans, new bonds, or refinancing existing ones accounted as loan modification, are deferred and recorded

as a contra to debt. Other fees paid for obtaining loan facilities not used at the balance sheet date are

deferred. Fees relating to drawn loan facilities are amortized to interest and finance costs over the life of

the related debt using the effective interest method and fees incurred for loan facilities not used at the

balance sheet date are amortized using the straight-line method according to their availability terms.

Unamortized fees relating to loans or bonds repaid or repurchased or refinanced as debt extinguishment

are written off in the period the repayment, prepayment, repurchase or extinguishment is made and

included in the determination of gain/loss on debt extinguishment. Loan commitment fees are expensed in

the period incurred, unless they relate to loans obtained to finance vessels under construction, in which

case, they are capitalized to the vessels’ cost.

p) Concentration of Credit Risk

: Financial instruments, which potentially subject the Company to

significant concentrations of credit risk, consist principally of cash and trade accounts receivable. The

Company places its temporary cash investments, consisting mostly of deposits, with various qualified

financial institutions and performs periodic evaluations of the relative credit standing of those financial

institutions that are considered in the Company’s investment strategy. The Company limits its credit risk

with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-17

generally does not require collateral for its accounts receivable and does not have any agreements to

mitigate credit risk.

q) Accounting for Revenues and Expenses:

Revenues are generated from time charter

agreements which contain a lease as they meet the criteria of a lease under ASC 842. Agreements with

the same charterer are accounted for as separate agreements according to their specific terms and

conditions. All agreements contain a minimum non-cancellable period and an extension period at the option

of the charterer. Each lease term is assessed at the inception of that lease. Under a time charter agreement,

the charterer pays a daily hire for the use of the vessel and reimburses the owner for hold cleanings, extra

insurance premiums for navigating in restricted areas and damages caused by the charterers. Revenues

from time charter agreements providing for varying annual rates are accounted for as operating leases and

thus recognized on a straight-line basis over the non-cancellable rental periods of such agreements, as

service is performed. The charterer pays to third parties port, canal and bunkers consumed during the term

of the time charter agreement, unless they are for the account of the owner, in which case, they are included

in voyage expenses. Voyage expenses also include commissions on time charter revenue (paid to the

charterers, the brokers and the managers) and gain or loss from bunkers resulting 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 (Note 10). Under a time charter agreement,

the owner pays for the operation and the maintenance of the vessel, including crew, insurance, spares and

repairs, which are recognized in operating expenses. The Company, as lessor, has elected not to allocate

the consideration in the agreement to the separate lease and non-lease components (operation and

maintenance of the vessel) as their timing and pattern of transfer to the charterer, as the lessee, are the

same and the lease component, if accounted for separately, would be classified as an operating lease.

Additionally, the lease component is considered the predominant component, as the Company has

assessed that more value is ascribed to the vessel rather than to the services provided under the time

charter contracts. In time charter agreements apart from the agreed hire rate, the Company may be entitled

to an additional income, such as ballast bonus. Ballast bonus is paid by charterers for repositioning the

vessel. The Company analyzes terms of each contract to assess whether income from ballast bonus is

accounted together with the lease component over the duration of the charter or as service component

under ASC 606. Deferred revenue includes cash received prior to the balance sheet date for which all

criteria to recognize as revenue have not been met.

r) Repairs and Maintenance:

 All repair and maintenance expenses including underwater inspection

expenses are expensed in the year incurred. Such costs are included in vessel operating expenses in the

accompanying consolidated statements of operations.

s) Earnings / (loss) per Common Share:

 Basic earnings / (loss) per common share are computed

by dividing net income / (loss) available to common stockholders by the weighted average number of

common shares outstanding during the year. Shares issuable at little or no cash consideration upon

satisfaction of certain conditions, are considered outstanding and included in the computation of basic

earnings/(loss) per share as of the date that all necessary conditions have been satisfied. Diluted earnings

per common share, reflects the potential dilution that could occur if securities or other contracts to issue

common stock were exercised.

t) Segmental Reporting:

The Company engages in the operation of dry-bulk vessels which has been

identified as one reportable segment. The operation of the vessels is the main source of revenue

generation, the services provided by the vessels are similar and they all operate under the same economic

environment. Additionally, the vessels do not operate in specific geographic areas, as they trade worldwide;

they do not trade in specific trade routes, as their trading (route and cargo) is dictated by the charterers;

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-18

and the Company does not evaluate the operating results for each type of dry bulk vessels (i.e. Panamax,

Capesize etc.) for the purpose of making decisions about allocating resources and assessing performance.

u) Fair Value Measurements

: The Company classifies and discloses its assets and liabilities carried

at fair value in one of the following categories: Level 1: Quoted market prices in active markets for identical

assets or liabilities; Level 2: Observable market-based inputs or unobservable inputs that are corroborated

by market data; Level 3: Unobservable inputs that are not corroborated by market data.

v) Share Based Payments:

 The Company issues restricted share awards which are measured at

their grant date fair value and are not subsequently re-measured. That cost is recognized over the period

during which an employee is required to provide service in exchange for the award—the requisite service

period (usually the vesting period). No compensation cost is recognized for equity instruments for which

employees do not render the requisite service unless the board of directors determines otherwise.

Forfeitures of awards are accounted for when and if they occur. If an equity award is modified after the

grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair

value of the modified award over the fair value of the original award immediately before the modification.

w) Equity method investments:

 Investments in common stock in entities over which the Company

exercises significant influence but does not exercise control are accounted for by the equity method of

accounting. Under this method, the Company records such an investment at cost and adjusts the carrying

amount for its share of the earnings or losses of the entity subsequent to the date of investment and reports

the recognized earnings or losses in income. Dividends received, if any, reduce the carrying amount of the

investment. When the carrying value of an equity method investment is reduced to zero because of losses,

the Company does not provide for additional losses unless it is committed to provide further financial

support to the investee. As of December 31, 2021, the Company’s investment in DWM is classified as a

liability because the Company absorbed such losses (Note 3(c)). The Company also evaluates whether a

loss in value of an investment that is other than a temporary decline should be recognized. Evidence of a

loss in value might include absence of an ability to recover the carrying amount of the investment or inability

of the investee to sustain an earnings capacity that would justify the carrying amount of the investment.

x) Going concern:

Management evaluates, at each reporting period, whether there are conditions or

events that raise substantial doubt about the Company's ability to continue as a going concern within one

year from the date the financial statements are issued.

y) Shares repurchased and retired:

The Company’s shares repurchased for retirement, are

immediately cancelled and the Company’s share capital is accordingly reduced. Any excess of the cost of

the shares over their par value is allocated in additional paid-in capital, in accordance with ASC 505-30-

30, Treasury Stock.

z) Financial Instruments, credit losses

: At each reporting date, the Company evaluates its financial

assets individually for credit losses and presents such assets in the net amount expected to be collected

on such financial asset. When financial assets present similar risk characteristics, these are evaluated on

a collective basis. When developing an estimate of expected credit losses, the Company considers

available information relevant to assessing the collectability of cash flows such as internal information, past

events, current conditions and reasonable and supportable forecasts. As of December 31, 2021, the

Company assessed the financial condition of DWM, changed its estimate on the recoverability of its

receivable due from DWM relating to the fine paid by the Company on behalf of DWM (Notes 3(c) and 8(b))

and determined that part of the amount may not be recoverable. As a result, the Company recorded as of

December 31, 2021, an allowance for credit losses amounting to $

300

, based on probability of default as

there was no previous loss record. The allowance for credit losses was included in “Other operating

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-19

(income)/loss” in the 2021 accompanying consolidated statements of operations. The allowance was

reversed in 2022 as the full amount was recovered and its reversal is included in “Other operating

(income)/loss” in the 2022 accompanying consolidated statements of operations.

No

 credit losses were

identified and recorded in 2020 and 2022.

aa) Financial Instruments, Recognition and Measurement:

According to ASC 321-10-35-2, the

Company has elected to measure equity securities without a readily determinable fair value, that do not

qualify for the practical expedient in ASC 820

Fair Value Measurement

to estimate fair value using the NAV

per share (or its equivalent), at its cost minus impairment, if any. If the Company identifies observable price

changes in orderly transactions for the identical or a similar investment of the same issuer, it shall measure

equity securities at fair value as of the date that the observable transaction occurred. The Company shall

continue to apply this measurement until the investment does not qualify to be measured in accordance

with this paragraph. At each reporting period, the Company reassesses whether an equity investment

without a readily determinable fair value qualifies to be measured in accordance with this paragraph. The

Company may subsequently elect to measure equity securities at fair value and the election to measure

securities at fair value shall be irrevocable. Any resulting gains or losses on the securities for which that

election is made shall be recorded in earnings at the time of the election. At each reporting period, the

Company also evaluates indicators such as the investee’s performance and its ability to continue as going

concern and market conditions, to determine whether an investment is impaired in which case, the

Company will estimate the fair value of the investment to determine the amount of the impairment loss.

ab) Non-monetary transactions and spinoffs:

Non-monetary transactions are recorded based on the

fair values of the assets (or services) involved unless the fair value of neither the asset received, nor the

asset relinquished is determinable within reasonable limits. Also, under ASC 845-10-30-10 Nonmonetary

Transactions, Overall, Initial Measurement, Nonreciprocal Transfers with Owners and ASC 505-60 Spinoffs

and Reverse Spinoffs, if the pro-rata spinoff of a consolidated subsidiary or equity method investee does

not meet the definition of a business under ASC 805, the nonreciprocal transfer of nonmonetary assets is

accounted for at fair value, if the fair value of the nonmonetary asset distributed is objectively measurable

and would be clearly realizable to the distributing entity in an outright sale at or near the time of the

distribution, and the spinor recognizes a gain or loss for the difference between the fair value and book

value of the spinee. A transaction is considered pro rata if each owner receives an ownership interest in

the transferee in proportion to its existing ownership interest in the transferor (even if the transferor retains

an ownership interest in the transferee). In accordance with ASC 805 Business Combinations: Clarifying

the Definition of a Business, if substantially all of the fair value of the gross assets distributed in a spinoff

are concentrated in a single identifiable asset or group of similar identifiable assets, then the spinoff of a

consolidated subsidiary does not meet the definition of a business (Note 3(f)). Other nonreciprocal transfers

of nonmonetary assets to owners are accounted for at fair value if the fair value of the nonmonetary asset

distributed is objectively measurable and would be clearly realizable to the distributing entity in an outright

sale at or near the time of the distribution.

ac) Contracts in entity’s equity:

 Under ASC 815-40 contracts that require settlement in shares are

considered equity instruments, unless an event that is not in the entity’s control would require net cash

settlement. Additionally, the entity should have sufficient authorized and unissued shares, the contract

contains an explicit share limit, there is no requirement to net cash settle the contract in the event the entity

fails to make timely filings with the Securities and Exchange Commission (SEC) and there are no cash

settled top-off or make-whole provisions. The Company follows the provision of ASC 480 “Distinguishing

Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine whether the warrants issued

should be classified as permanent equity, temporary equity or liability. The Company has determined that

warrants are free standing instruments and are out of scope of ASC 480 and meet all criteria for equity

classification.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-20

New Accounting Pronouncements - Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the

Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and

exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by

reference rate reform. ASU 2020-04 applies to contracts that reference LIBOR or another reference rate

expected to be terminated because of reference rate reform. The amendments in this Update are effective

for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the

amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of

an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an

interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements

are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this Update

must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. An

entity may elect to apply the amendments in this Update to eligible hedging relationships existing as of the

beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships

entered into after the beginning of the interim period that includes March 12, 2020. An entity may elect

certain optional expedients for hedging relationships that exist as of December 31, 2022 and maintain

those optional expedients through the end of the hedging relationship. In December 2022, the FASB issued

ASU No. 2022-06, Deferral of the Sunset Date of Reference Rate Reform (Topic 848). Topic 848 provides

optional expedients and exceptions for applying GAAP to transactions affected by reference rate (e.g.,

LIBOR) reform if certain criteria are met, for a limited period of time to ease the potential burden in

accounting for (or recognizing the effects of) reference rate reform on financial reporting. The ASU deferred

the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company is exposed

to LIBOR and LIBOR changes under its loan agreements with several banks. As of December 31, 2022,

the Company used LIBOR and will continue to use LIBOR until it is discontinued or replaced by another

rate to be agreed with the related banks. During 2022, the Company entered into a new loan agreement

and elected to use term SOFR as a replacement for LIBOR and it is probable that it will use the same rate

when the agreements under LIBOR are modified. The Company does not expect that the change of LIBOR

to term SOFR will have a significant impact in its results of operations and cash flows.

3. Transactions with related parties

a) Altair Travel Agency S.A. (“Altair”):

 The Company uses the services of an affiliated travel agent,

Altair, which is controlled by the Company’s Chairman of the Board. Travel expenses for 2022, 2021 and

2020 amounted to $

2,644

, $

2,210

 and $

1,854

, respectively, and are mainly included in “Vessels, net book

value”, “Vessel operating expenses” and “General and administrative expenses” in the accompanying

consolidated financial statements. As of December 31, 2022 and 2021, an amount of $

136

 and $

138

,

respectively, was payable to Altair and is included in “Due to related parties” in the accompanying

consolidated balance sheets. 

b) Steamship Shipbroking Enterprises Inc. or Steamship:

 Steamship is a company controlled by

the Company’s Chairman of the Board which provides brokerage services to DSI for a fixed monthly fee

plus commission on the sale of vessels, pursuant to a Brokerage Services Agreement. For 2022, 2021 and

2020 brokerage fees amounted to $

3,309

, $

3,309

 and $

2,653

, respectively, and are included in “General

and administrative expenses” in the accompanying consolidated statements of operations. For 2022, 2021,

and 2020, commissions on the sale and purchase of vessels amounted to $

1,219

, $

712

 and $

576

,

respectively and are included in the calculation of impairment charge when the vessels were recorded at

fair value less cost to sell, or the gain/loss on the sale of vessels. As of December 31, 2022 and 2021,

there was

no

 amount due to Steamship. 

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-21

c) Diana Wilhelmsen Management Limited, or DWM:

 DWM is a joint venture between Diana Ship

Management Inc., a wholly owned subsidiary of DSI, and Wilhelmsen Ship Management Holding AS, an

unaffiliated third party, each holding

50

% of DWM. The DWM office is located in Athens, Greece. During

2021 and 2020, each

50

% shareholder of DWM contributed an amount of $

375

 and $

500

, respectively, as

additional investment to DWM. As of December 31, 2022, the investment in DWM amounted to $

506

 and

is separately presented in “Equity method investments” in the accompanying 2022 consolidated balance

sheet and as of December 31, 2021, the investment in DWM was a liability amounting to $

388

 and is

included in “Due to related parties” in the accompanying 2021 consolidated balance sheet. In 2022, the

investment in DWM resulted in gain of $

894

, and in 2021 and in 2020, resulted in a loss of $

333

 and

$

1,110

, respectively, included in “Gain/(loss) from equity method investments” in the accompanying

consolidated statements of operations.

From October 8, 2019 until May 24, 2021, DSS outsourced the management of certain vessels to DWM

for which DSS was paying a fixed monthly fee per vessel and a percentage of those vessels’ gross

revenues. On May 24, 2021, the management of the same vessels was transferred to DWM directly,

whereas the vessel owning companies of these vessels entered into new management agreements with

DWM under which they pay a fixed monthly fee and a percentage of their gross revenues. Management

fees paid to DWM in 2022, 2021 and 2020 amounted to $

511

, $

1,432

 and $

2,017

, respectively, and are

separately presented as “Management fees to related party” in the accompanying consolidated statements

of operations. Additionally, in 2022, the Company paid to DWM management fees amounting to $

272

,

included in “Advances for vessel acquisitions” and “Vessels, net”, relating to the management of

four

Ultramax vessels the Company assigned to DWM with new management agreements and incurred during

the predelivery period of the vessels. Commissions for 2022, 2021 and 2020 amounted to $

162

, $

200

 and

$

353

, respectively, and are included in “Voyage expenses” (Note 10). As of December 31, 2022 and 2021,

there was an amount of $

216

 and $

952

 due from DWM, included in “Due from related parties” in the

accompanying consolidated balance sheets (Note 8(b)). As of December 31, 2021, the amount due from

related parties includes a provision of $

300

 for credit losses (Note 2 (z)), which in 2022 was reversed, as

the due amount was collected.

d) Series D Preferred Stock

: On June 22, 2021, the Company issued

400

 shares Series D Preferred

Stock, to an affiliate of its Chief Executive Officer, Mrs. Semiramis Paliou for an aggregate purchase price

of $

254

 net of expenses (Note 9).

e) Sale and purchase of Bond by executives

: On June 22, 2021, entities affiliated with executive

officers and directors of the Company sold their bonds of the Company’s 9.5% Senior Unsecured Bond

and participated in the 8.375% Senior Unsecured Bond with an aggregate principal amount of $

21,000

(Note 6).

f) OceanPal Inc., or OceanPal:

 in November 2021, the Company entered into a Contribution and

Conveyance agreement with its wholly owned subsidiary OceanPal, to contribute to it

three

 of its

shipowning subsidiaries and working capital of $

1,000

 in exchange for

500,000

 of OceanPaI's Series B

Preferred Shares;

10,000

 of OceanPal's Series C Convertible Preferred Shares; and

100

% of the common

shares of OceanPal to be issued and outstanding on the spinoff with cancellation of the existing outstanding

common shares. On November 29, 2021, the Company completed a pro rata distribution of the common

stock of OceanPal to the Company’s stockholders of record as of the close of business on November 3,

2021. Each of the Company’s stockholders received one share of OceanPal Inc. common stock for each

ten shares of the Company’s common stock held as of the close of business on November 3, 2021. As of

December 31, 2021, the Company evaluated OceanPal’s spinoff and concluded that it was a pro rata

distribution to the owners of the Company of shares of a consolidated subsidiary that does not meet the

definition of a business under ASC 805 Business Combinations, as the fair value of the gross assets

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-22

contributed to OceanPal was concentrated in a group of similar identifiable assets, the vessels. The

Company also assessed that the fair value of the nonmonetary assets transferred to OceanPal was

objectively measurable and clearly realizable to the transferor in an outright sale at or near the time of the

distribution. The spinoff was measured at fair value and a gain of $

15,252

, being the difference between

the fair value and book value of the OceanPal, was recognized and separately presented as “Gain on

spinoff of OceanPal Inc.” in the accompanying consolidated statements of operations. 

The fair value of the assets contributed, amounting to $

48,084

 less the fair value of

500,000

 of OceanPal’s

Series B Preferred Shares and

10,000

 of OceanPal’s Series C Convertible Preferred Shares, issued by

OceanPal to Diana in connection with the transaction, amounting to $

7,575

, was recorded as dividend in

the Company’s consolidated statement of stockholders’ equity for the year ended December 31, 2021. The

fair value of the vessels was measured on the date of the spinoff, on November 29, 2021, and was

determined through Level 2 inputs of the fair value hierarchy by taking into consideration third party

valuations which were based on the last done deals of sale of vessels, on a charter free basis, with similar

characteristics, such as type, size and age at the specific dates. The fair value of the remaining assets

contributed approximated their carrying value. 

Since the spinoff, the Company is the holder of Series B Preferred Shares and Series C Convertible

Preferred Shares of OceanPal, or together the “OceanPal Shares”. Series B Preferred Shares entitle the

holder to

2,000

 votes on all matters submitted to vote of the stockholders of the Company, provided

however, that the total number of votes shall not exceed

34

% of the total number of votes, provided further,

that the total number of votes entitled to vote, including common stock or any other voting security, would

not exceed

49

% of the total number of votes. 

Series C Preferred Shares do not have voting rights unless related to amendments of the Articles of

Incorporation that adversely alter the preference, powers or rights of the Series C Preferred Shares or to

issue Parity Stock or create or issue Senior Stock. Series C Preferred Shares have become convertible

into common stock at the Company’s option since the first anniversary of the issue date, at a conversion

price equal to the lesser of $

6.5

 and the 10-trading day trailing VWAP of OceanPal’s common shares,

subject to adjustments. Additionally, Series C Preferred Shares have a cumulative preferred dividend

accruing at the rate of

8

% per annum, payable in cash or, at OceanPal’s election, in kind and has a

liquidation preference equal to the stated value of $

10,000

. As there was no observable market for the

OceanPal Shares, at the spinoff the Series B Preferred Shares were recorded at their par value, or $

5

,

which the Company assessed was the fair value, and Series C Preferred Shares were recorded at $

7,570

,

being the fair value of the shares determined through Level 2 inputs of the fair value hierarchy by taking

into consideration a third party valuation based on the income approach, taking into account the present

value of the future cash flows the Company expects to receive from holding the equity instrument.

During 2022 and for the period from the spinoff to December 31, 2021, the Company assessed the

existence of an observable market for the OceanPal Shares, the existence of observable price changes

for identical or similar investments of the same issuer and the existence of any indications for impairment.

As per the Company’s assessment no such have been identified as of December 31, 2022 and 2021 and

for the periods then ended and the investments continued to qualify to be measured at cost. As of

December 31, 2022 and 2021, the aggregate value of investments without readily determinable fair values

amounted to $

7,744

 and $

7,644

, respectively, including accrued dividends of $

169

 and $

69

, respectively,

and are separately presented as “Investments in related party” in the accompanying consolidated balance

sheets. Additionally, as of December 31, 2021, an amount of $

70

 was due to OceanPal, as a result of the

spinoff, included in “Due to related parties”, which was settled in 2022.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-23

On September 20, 2022, OceanPal issued

25,000

 Series D Preferred Shares, par value $

0.01

 per share,

as part of the consideration provided to the Company for the acquisition of Baltimore, which was sold to

OceanPal, pursuant to a Memorandum of Agreement dated June 13, 2022, for $

22,000

 before

commissions, of which $

4,400

 was in cash and the balance of $

17,600

 through the Series D Preferred

shares (Note 4). The Company has initially measured its investments on Series D preferred shares at their

fair value on their issuance date on September 20, 2022 and has elected to subsequently measure such

investments in accordance with the paragraph ASC 321-10-35-2 (Note 2(aa)). The fair value of Series D

Preferred Shares, of $

17,600

, was determined through Level 2 inputs of the fair value hierarchy by taking

into consideration a third-party valuation which was based on the income approach, taking into account the

present value of the future cash flows the Company expects to receive from holding the equity instrument.

The shares are convertible into common stock at the Company’s option, provided however that the

Company would not beneficially own greater than

49

% of the outstanding shares of common stock; they

have no voting rights; they have a cumulative dividend accruing at the rate of

7

% per annum payable in

cash or, at OceanPal’s election, in PIK shares (Series D Preferred shares issued to the holder in lieu of

cash dividends); and they have a liquidation preference equal $

1,000

 per share. From the date of the

acquisition of the investment in Series D preferred shares and up to the date of its distribution to the

Company's shareholders (see discussion below), the Company did not identify any indications for

impairment or any observable prices for identical or similar investments of the same issuer. 

On December 15, 2022, the Company distributed those shares as non-cash dividend (dividend in kind) to

its shareholders of record on November 28, 2022. The shareholders had the option to receive Series D

Preferred Shares or common shares of OceanPal at the conversion rate determined before distribution

according to the terms of the designation statement. The Company’s shareholders received

72,011,457

common shares of OceanPal, and

9,172

 Series D Preferred Shares. The Company accounted for the

transaction as a nonreciprocal transfer with its owners in accordance with ASC 845 and measured their

fair value on the date of declaration at $

18,189

. The fair value of the Series D Preferred Shares was

determined through Level 2 inputs of the fair value hierarchy, by using the income approach, taking into

account the present value of the future cash flows, the holder of shares would expect to receive from

holding the equity instrument. This resulted in gain of $

589

, being the difference between the fair value and

the carrying value of the investment and is separately presented as “Gain on dividend distribution” in the

accompanying consolidated statements of operations.

During 2022 and 2021, dividend income deriving from the Company’s investments in OceanPal amounted

to $

917

 and $

69

, respectively.

4. Advances for vessel acquisitions and Vessels, net

Advances for Vessel Acquisitions

As of December 31, 2022 and 2021, advances for vessel acquisitions amounted to $

24,123

 and $

16,287

,

respectively, and related to advances paid and predelivery costs incurred for the acquisition of the vessels

described below. As of December 31, 2022, an amount of $

20,571

 included in advances for vessels

acquisitions was held at an escrow account of the designated escrow agent and were the funds borrowed

for the acquisition of one vessel which was delivered to the Company in January 2023 (Note 15).

Vessel Acquisitions

On July 15, 2021 the Company signed, through a separate wholly owned subsidiary, a Memorandum of

Agreement to acquire from an unaffiliated third party, the 2011 built Kamsarmax dry bulk vessel

Leonidas

P.C.

, for a purchase price of $

22,000

. The Company paid an advance of $

4,400

, being

20

% of the purchase

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-24

price, included in Advances for vessel acquisitions, in the accompanying 2021 consolidated balance sheet.

The balance of the purchase price was paid on the vessel’s delivery on February 16, 2022, and the advance

and predelivery costs were transferred to Vessels. The Company incurred $

927

 of additional predelivery

expenses.

On December 3, 2021, the Company signed, through a separate wholly owned subsidiary, a Memorandum

of Agreement to acquire from an unaffiliated third party, the Capesize dry bulk vessel

Florida,

 being under

construction, for a purchase price of $

59,275

. The Company paid an amount of $

11,855

, being

20

%

advance of the purchase price included in Advances for vessel acquisitions, in the accompanying 2021

consolidated balance sheet. The balance of the purchase price was paid on the vessel’s delivery on March

29, 2022 and the advance and predelivery costs were transferred to Vessels. The Company incurred

$

1,504

 of additional predelivery expenses.

On August 10, 2022, the Company entered into a master agreement with Sea Trade Holdings Inc. (or “Sea

Trade”), an unaffiliated third party, to acquire nine Ultramax vessels for an aggregate purchase price of

$

330,000

, of which $

220,000

 would be paid in cash and $

110,000

 through an aggregate of

18,487,393

newly issued common shares of the Company, issuable on the delivery of each vessel. In addition to the

master agreement, in August 2022, the Company entered into

nine

 separate memoranda of agreement for

the acquisition of each vessel and issued nine warrants to Sea Trade, for the issuance of the shares,

exercisable on the delivery date of each vessel. During the fourth quarter of 2022, the Company took

delivery of

eight

 vessels for an aggregate value of $

263,719

, of which $

67,909

 was the value of the newly

issued common shares (Notes 9 and 14) and $

4,364

 of additional predelivery expenses. The value of the

shares was determined based on the closing price of the Company’s common stock on the date of delivery

of each vessel, which was also the date of issuance, determined through Level 1 inputs of the fair value

hierarchy. Also, as of December 31, 2022, an amount of $

24,123

 was presented in Advances for vessel

acquisitions being part of the purchase price for the acquisition of the ninth vessel, and additional

predelivery expenses, amounting to $

169

 (Note 15).

Vessel Disposals

On March 16, 2021, the Company through a separate wholly owned subsidiary entered into a Memorandum

of Agreement to sell to an unaffiliated third party the vessel

Naias

, for a sale price of $

11,250

 before

commissions. At the date of the agreement to sell the vessel, the vessel was measured at the lower of its

carrying amount or fair value (sale price) less costs to sell, which was the vessel’s carrying value at $

9,010

,

and was classified in current assets as vessel held for sale, according to the provisions of ASC 360, as all

criteria required for this classification were met. The vessel was delivered to the buyer on July 30, 2021

and the sale of the vessel resulted in gain amounting to $

1,564

, included in “(Gain)/loss on sale of vessels”

in the consolidated statement of operations. 

On June 13, 2022, the Company through a separate wholly owned subsidiary entered into a Memorandum

of Agreement to sell to OceanPal, the vessel

Baltimore

, for a sale price of $

22,000

 before commissions

(Note 3 (f)). On the date of the agreement, the vessel was classified as held for sale according to the

provisions of ASC 360, as all criteria required for this classification were met, at carrying value of $

16,722

and unamortized deferred costs of $

41

, measured at the lower of carrying value and fair value (sale price)

less costs to sell. The vessel was delivered to OceanPal on September 20, 2022 and the sale resulted in

gain amounting to $

2,850

, included in “(Gain)/loss on sale of vessels” in the consolidated statement of

operations.

The amounts reflected in Vessels, net in the accompanying consolidated balance sheets are analyzed as

follows:

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-25

Vessel Cost

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2020

$

872,431

$

(156,253)

$

716,178

- Additions for improvements

1,106

-

1,106

- Additions for improvements reclassified from other non-

current assets

441

-

441

- Vessel disposals

(16,120)

7,110

(9,010)

- Vessels contributed to OceanPal

(47,429)

17,127

(30,302)

- Depreciation for the year

-

(34,963)

(34,963)

Balance, December 31, 2021

$

810,429

$

(166,979)

$

643,450

- Additions for vessel acquisitions and improvements

358,504

-

358,504

- Additions for improvements reclassified from other non-

current assets

1,370

-

1,370

- Vessel disposals

(29,175)

12,453

(16,722)

- Depreciation for the year

-

(36,986)

(36,986)

Balance, December 31, 2022

$

1,141,128

$

(191,512)

$

949,616

Additions for vessel improvements mainly relate to the implementation of ballast water treatment and other

works necessary for the vessels to comply with new regulations and be able to navigate to additional ports.

As of December 31, 2022 and 2021, an amount of $

1,370

 and $

441

, respectively, was reclassified to

Vessels, net from other non-current assets and related to ballast water treatment equipment paid in a

previous period but delivered on the vessels during the years ended December 31, 2022 and 2021.

5. Property and Equipment, net

In November 2021, DSS acquired

1/3

 of a land owned by a then related party company, to which DSS

owned also 1/3, for the purchase price of €

1.1

 million. The total acquisition cost, including expenses and

taxes amounted to $

1,358

.

The Company owns the land and building of its principal corporate offices in Athens, Greece. Additionally,

DSS owns, together with a related party company, another plot of land in the nearby area, acquired for

office use. 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, 2020

$

27,198

$

(5,494)

$

21,704

- Additions in property and equipment

1,600

-

1,600

- Depreciation for the year

-

(462)

(462)

- Disposal of assets

(529)

529

-

Balance, December 31, 2021

$

28,269

$

(5,427)

$

22,842

- Additions in property and equipment

667

-

667

- Depreciation for the year

-

(546)

(546)

Balance, December 31, 2022

$

28,936

$

(5,973)

$

22,963

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-26

6. Long-term debt

The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as

follows:

2022

2021

Senior unsecured bond

125,000

125,000

Secured long-term debt

405,120

306,843

Total long-term debt

$

530,120

$

431,843

Less: Deferred financing costs 

(7,609)

(8,168)

Long-term debt, net of deferred financing costs

$

522,511

$

423,675

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

current

(91,495)

(41,148)

Long-term debt, excluding current maturities

$

431,016

$

382,527

Senior Unsecured Bond

: 

On

September 27, 2018

, the Company issued a $

100,000

 senior unsecured bond maturing in September

2023 of which entities affiliated with executive officers and directors of the Company purchased $

16,200

aggregate principal amount of the bond. The bond was fully repurchased and retired on September 27,

2021 upon the exercise of the Company’s call option pursuant to the Bond terms discussed below. The

bond bore interest at a US Dollar fixed-rate coupon of

9.50

% which was

payable semi-annually in arrears

in March and September of each year

.

The bond was callable in whole or in parts in three years at a price

equal to 103.8% of nominal value; in four years at a price equal to 101.9% of the nominal value and in four

and a half years at a price equal to 100% of nominal value.

 The bond included financial and other covenants

and was trading on the Oslo Stock Exchange under the ticker symbol “DIASH01”. On July 7, 2020, the

Company repurchased $

8,000

 of nominal value of the bond. On June 22, 2021, the Company refinanced

$

74,200

 of nominal value of the bond at a price equal to

106.25

% of nominal value, or $

78,838

, with a

newly issued bond, discussed below. The Company applied the debt modification guidance for the part of

the transaction refinanced by existing investors amounting to $

73,400

 and the debt extinguishment for the

remaining $

800

. An amount of $

5,272

 consisting of the costs paid to the investors who participated in the

refinancing and unamortized deferred fees were deferred over the term of the new bond and an amount of

$

57

 was recorded as loss on debt extinguishment. On September 27, 2021, the Company exercised the

call option and redeemed the balance of the bond at the price of

103.8

%. In 2021 and 2020, the repurchase

of the bond resulted in loss of $

880

 and gain of $

374

, respectively, which is included in “(Loss)/gain on

extinguishment of debt” in the consolidated statements of operations. 

On

June 22, 2021

, the Company issued a $

125,000

 senior unsecured bond maturing in June 2026, which

refinanced the previous bond. 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. Entities affiliated with executive officers and directors of the Company purchased an aggregate of

$

21,000

 principal amount of the bond. The bond bears interest from June 22, 2021 at a US Dollar fixed-

rate coupon of

8.375

% and is payable semi-annually in arrears in June and December of each year. The

bond is callable in whole or in parts in June 2024 at a price equal to

103.35

% of nominal value; between

June 2025 to December 2025 at a price equal to

101.675

% of the nominal value and after December 2025

at a price equal to

100

% of nominal value. The bond includes financial and other covenants and is trading

at Oslo Stock Exchange under the ticker symbol “DIASH02”. 

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-27

Secured Term Loans:

Under the secured term loans outstanding as of December 31, 2022,

34

 vessels of the Company’s fleet

are mortgaged with first preferred or priority ship mortgages, having an aggregate carrying value of

$

722,961

. 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 December 31, 2022 and 2021, minimum cash deposits required to be maintained at all times under

the Company’s loan facilities, amounted to $

21,000

 and $

16,500

, 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. For 2022 and 2021, the weighted average

interest rate of the secured term loans was

3.8

% and

2.45

%, respectively.

As of December 31, 2022 and 2021, the Company had the following agreements with banks, either as a

borrower or as a guarantor, to guarantee the loans of its subsidiaries:

Export-Import Bank of China and DnB NOR Bank ASA:

 On

February 15, 2012

, the Company drew

down a first tranche of $

37,450

, under a secured loan agreement, which was repayable in

40

quarterly

instalments of approximately $

628

 each and a balloon of $

12,332

 payable together with the last instalment

on

February 15, 2022

. On

May 18, 2012

, the Company drew down, under the same agreement, a second

tranche of $

34,640

, which was repayable in

40

quarterly

 instalments of approximately $

581

 each and a

balloon of $

11,410

 payable together with the last instalment on

May 18, 2022

. The loan which bore interest

at LIBOR plus a margin of

2.50

% per annum was prepaid in full on May 17, 2021, and unamortized costs

were written off to “(Loss)/gain on extinguishment of debt” in the 2021 consolidated statement of operations.

Commonwealth Bank of Australia, London Branch:

 On January 13, 2014, the Company drew down

$

9,500

 under a secured loan agreement, which was repayable in

32

 equal consecutive

quarterly

instalments of $

156

 each and a balloon of $

4,500

 payable on

January 13, 2022

. The loan which bore

interest at

LIBOR

 plus a margin of

2.25

%, was prepaid in full on May 18, 2021 and unamortized costs were

written off to “(Loss)/gain on extinguishment of debt” in the 2021 consolidated statement of operations.

BNP Paribas (“BNP”):

 On December 19, 2014, the Company drew down $

53,500

 under a secured loan

agreement, to finance part of the acquisition cost of the

G. P. Zafirakis

 and the

P. S. Palios

maturing on

November 30, 2021

. The agreement was refinanced on June 29, 2020, to extend the maturity to

May 19,

2024

. The loan is repayable in equal semi-annual instalments of approximately $

1,574

 and a balloon of

$

23,596

 payable together with the last instalment. The refinanced loan bears interest at LIBOR plus a

margin of

2.5

%. 

On July 16, 2018, the Company drew down $

75,000

 under a secured loan agreement with BNP. The loan

is repayable in consecutive quarterly instalments of $

1,562.5

 and a balloon instalment of $

43,750

 payable

together with the last instalment on

July 17, 2023

. The loan bears interest at LIBOR plus a margin of

2.3

%.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-28

Nordea Bank AB, London Branch (“Nordea”):

 On March 19, 2015, the Company drew down $

93,080

under a secured loan agreement, maturing on

March 19, 2021

. The loan bore interest at LIBOR plus a

margin of

2.1

%. On May 7, 2020, the loan was refinanced to extend the maturity to March 19, 2022 and on

July 29, 2021, the Company entered into a supplemental agreement with Nordea, to extend the loan

maturity to March 2024 and to draw down an additional amount of $

460

. The balance of the refinanced

loan, including the additional $

460

 drawn on July 30, 2021, is repayable in equal consecutive quarterly

instalments of $

1,862

 and a balloon instalment of $

26,522

 payable together with the last instalment on

March 19, 2024

, all other terms of the loan remaining the same. In July 2022, the Company prepaid an

amount of $

4,786

, due to the sale of

Baltimore

to OceanPal (Note 4). Unamortized finance costs relating

to the part of the loan prepaid, were written off to “(Loss)/gain on extinguishment of debt” in the 2022

consolidated statement of operations. Following this prepayment, the loan is repayable in equal

quarterly

instalments of $

1,636

 and a balloon of $

23,313

 payable together with the last instalment on

March 19,

2024

. 

On September 30, 2022, the Company entered into a $

200

 million loan agreement to finance the acquisition

price of

9

 ultramax vessels (Note 4). The Company drew down $

197,236

 under the loan, in tranches for

each vessel on their delivery to the Company. On December 12, 2022, the Company prepaid $

21,937

under the loan, attributed to DSI Andromeda, following the vessel’s sale under a sale and leaseback

agreement. (Note 7). Unamortized finance costs relating to the part of the loan prepaid, were written off to

“(Loss)/gain on extinguishment of debt” in the 2022 consolidated statement of operations. Following this

prepayment, the loan is repayable in

20

 equal

quarterly

 instalments of an aggregate amount of $

3,719

,

and a balloon amounting to $

100,912

 payable together with the last instalment on

October 11, 2027

. The

loan bears interest at term SOFR plus a margin of

2.25

%. Loan fees amounted to $

2,069

 presented as

contra to debt and commitment fees amounted to $

191

, included in Interest expense and finance costs in

the accompanying 2022 consolidated statement of operations.

ABN AMRO Bank N.V., or ABN:

 On May 22, 2020, the Company signed a term loan facility with ABN, in

the amount of $

52,885

 to combine two loans outstanding with ABN. Tranche A is payable in consecutive

quarterly

 instalments of $

800

 each and a balloon instalment of $

9,000

 payable together with the last

instalment on

June 28, 2024

. The tranche bears interest at LIBOR plus a margin of

2.25

%. Tranche B is

repayable in equal consecutive

quarterly

 instalments of about $

994

 each and a balloon of $

13,391

 payable

together with the last instalment on

June 28, 2024

, and bears interest at LIBOR plus a margin of

2.4

%. 

On May 20, 2021, the Company, drew down $

91,000

 under a secured sustainability linked loan facility with

ABN AMRO Bank N.V, dated May 14, 2021, which was used to refinance existing loans. The loan was

repayable in consecutive

quarterly

 instalments of $

3,390

 each and a balloon of $

23,200

 payable together

with the last instalment, on

May 20, 2026

. On August 22, 2022, and following the sale and leaseback

agreements of the vessels

Santa Barbara

 and

New Orleans

, which were mortgaged to secure the loan, the

Company prepaid an amount of $

30,791

, which was the part of the loan attributed to the two vessels.

Unamortized finance costs relating to the part of the loan prepaid, were written off to “(Loss)/gain on

extinguishment of debt” in the 2022 consolidated statement of operations. Following this prepayment, the

loan is repayable in consecutive

quarterly

 instalments of $

1,980

 and a balloon of $

13,553

 payable together

with the last instalment, on

May 20, 2026

. The loan bears interest at LIBOR plus a margin of

2.15

% per

annum, which may be adjusted annually by maximum

10

 basis points upwards or downwards, subject to

the performance under certain sustainability KPIs.

Danish Ship Finance A/S:

 On April 30, 2015, the Company drew down $

30,000

 under a loan agreement,

which was repayable in

28

 equal consecutive

quarterly

 instalments of $

500

 each and a balloon of $

16,000

payable together with the last instalment on

April 30, 2022

. The loan which bore interest at LIBOR plus a

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-29

margin of

2.15

% was prepaid in full on May 20, 2021, and unamortized costs were written off to “(Loss)/gain

on extinguishment of debt” in the 2021 consolidated statement of operations.

ING Bank N.V.:

On November 19, 2015, the Company drew down advance A amounting to $

27,950

 under

a secured loan agreement, which was repayable in

28

 consecutive

quarterly

 instalments of about $

466

each and a balloon instalment of about $

14,907

 payable together with the last instalment on

November 19,

2022

. Advance B amounting to $

11,733

 was drawn on October 6, 2015, and was repayable in

28

consecutive

quarterly

 instalments of about $

293

 each and a balloon instalment of about $

3,520

 payable

together with the last instalment on

October 6, 2022

. The loan which bore interest at LIBOR plus a margin

of

1.65

% was prepaid in full on May 20, 2021, and unamortized costs were written off to “(Loss)/gain on

extinguishment of debt” in the 2021 consolidated statement of operations.

Export-Import Bank of China:

 On January 4, 2017, the Company drew down $

57,240

 under a secured

loan agreement, which is repayable in equal

quarterly

 instalments of $

954

, each, until its maturity on

January 4, 2032

 and bears interest at LIBOR plus a margin of

2.3

%.

DNB Bank ASA.:

 On March 14, 2019, the Company drew down $

19,000

 under a secured loan agreement,

which is repayable in consecutive

quarterly

 instalments of $

477.3

 and a balloon of $

9,454

 payable together

with the last instalment on

March 14, 2024

. The loan bears interest at LIBOR plus a margin of

2.4

%.

As of December 31, 2022 and 2021, the Company was in compliance with all of its loan covenants.

The maturities of the Company’s bond and debt facilities described above as of December 31, 2022, and

throughout their term, are shown in the table below and do not include the related debt issuance costs:

Period

Principal Repayment

Year 1

$

93,830

Year 2

112,645

Year 3

26,615

Year 4

161,207

Year 5

119,605

Year 6 and thereafter

16,218

Total

$

530,120

7. Finance Liabilities

The amount of finance liabilities shown in the 2022 accompanying consolidated balance sheet is analyzed

as follows:

2022

Finance liabilities

142,370

Less: Deferred financing costs 

(1,439)

Finance liabilities, net of deferred financing costs

$

140,931

Less: Current finance liabilities, net of deferred financing costs, current

(8,802)

Finance liabilities, excluding current maturities

$

132,129

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-30

On March 29, 2022, the Company sold

Florida

 to an unrelated third party for $

50,000

 (Note 4) and leased

back the vessel under a bareboat agreement, for a period of

ten years

, under which the Company pays

hire, monthly in advance. Under the bareboat charter, the Company has the option to repurchase the vessel

after the end of the third year of the charter period, or each year thereafter, until the termination of the

lease, at specific prices, subject to irrevocable and written notice to the owner. If not repurchased earlier,

the Company has the obligation to repurchase the vessel for $

16,350

, on the expiration of the lease on the

tenth year. Issuance costs amounted to $

513

.

On August 17, 2022, the Company entered into

two

 sale and leaseback agreements with two unaffiliated

Japanese third parties for

New Orleans

 and

Santa Barbara,

for an aggregate amount of $

66,400

. 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

eight years

, each,

and has purchase options beginning at the end of the third year of each vessel's bareboat charter period,

or each year thereafter, until the termination of the lease, at specific prices, subject to irrevocable and

written notice to the owner. If not repurchased earlier, the Company has the obligation to repurchase the

vessels for $

13,000

, each, on the expiration of each lease on the eighth year. Issuance costs amounted to

$

665

.

On December 6, 2022, the Company sold

DSI Andromeda

 to an unrelated third party for $

29,850

 (Note 4)

and leased back the vessel under a bareboat agreement, for a period of

ten years

, under which the

Company pays hire, monthly in advance. Under the bareboat charter, the Company has the option to

repurchase the vessel after the end of the third year of the charter period, or each year thereafter, until the

termination of the lease, at specific prices, subject to irrevocable and written notice to the owner. If not

repurchased earlier, the Company has the obligation to repurchase the vessel for $

8,050

, on the expiration

of the lease on the tenth year. Issuance costs amounted to $

354

.

Under the bareboat charter parties, the Company is responsible for the operation and maintenance of the

vessels and the owner of the vessels shall not retain any control, possession, or command of the vessel

during the charter period.

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 December 31, 2022,

the weighted average remaining lease term of the above lease agreements was

8.69

 years and the average

interest rate was

4.61

%.

As of December 31, 2022, and throughout the term of the leases, the Company has annual finance liabilities

as shown in the table below:

Period

Principal Repayment

Year 1

$

9,033

Year 2

9,437

Year 3

9,808

Year 4

10,224

Year 5

10,661

Year 6 and thereafter

93,207

Total

$

142,370

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-31

8. Commitments and Contingencies

a) Various claims, suits, and complaints, including those involving government regulations and product

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 $

1

 billion per vessel per

incident, by the P&I Association in which the Company’s vessels are entered. In 2022, the Company

recorded a gain of $

1,789

 from insurance recoveries received from its insurers for claims covered under

its insurance policies, which is separately presented as insurance recoveries in the accompanying 2022

consolidated statement of operations.

b) In February 2021, DWM, as managers of the vessel

Protefs

, entered into a plea agreement with the

United States pursuant to which DWM, plead guilty for alleged violations of law concerning

maintenance of books and records and the handling of oil wastes of the vessel

Protefs.

On September

23, 2021, in the sentencing hearing of the

Protefs

 case, the judge accepted DWM’s guilty pleas and

among others, imposed to DWM a fine of $

2,000

 which was paid by the Company. An amount of $

1,000

of this fine was recorded as due from DWM (Note 3(c) and as of December 31, 2021, the receivable

was decreased by a provision for credit losses (Note 2(z). In 2022 the provision was reversed as the

full amount was recovered.

c) Pursuant to the sale and lease back agreements signed between the Company and its counterparties,

the Company has purchase obligations to repurchase the vessels

Florida, Santa Barbara, New Orleans

and

 DSI Andromeda

upon expiration of their lease contracts, as described in Note 7.

d) As of December 31, 2022, 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 December

31, 2022 and until their expiration was as follows:

Period

Amount

Year 1

$

163,438

Year 2

22,980

Year 3

9,454

Year 4

9,454

Year 5

725

 Total

$

206,051

9. Capital Stock and Changes in Capital Accounts

a) Preferred stock

:

 As of December 31, 2022, and, 2021, the Company’s authorized preferred stock

consists of

25,000,000

 shares (all in registered form), par value $

0.01

 per share, of which

1,000,000

 shares

are designated as Series A Participating Preferred Shares,

5,000,000

 shares are designated as Series B

Preferred Shares,

10,675

 shares are designated as Series C Preferred Shares and

400

 are designated as

Series D Preferred Shares. As of December 31, 2022 and 2021, the Company had

zero

 Series A

Participating Preferred Shares issued and outstanding.

b) Series B Preferred Stock:

 As of December 31, 2022, and, 2021, the Company had

2,600,000

Series B Preferred Shares issued and outstanding with par value $

0.01

 per share, at $

25.00

 per share and

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-32

with liquidation preference at $

25.00

 per share.

Holders of Series B Preferred Shares have no voting rights

other than the ability, subject to certain exceptions, to elect one director if dividends for six quarterly

dividend periods (whether or not consecutive) are in arrears and certain other limited protective voting

rights.

 Also, holders of Series B Preferred Shares, rank prior to the holders of common shares with respect

to dividends, distributions and payments upon liquidation and are subordinated to all of the existing and

future indebtedness.

Dividends 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 the dividend rate of

8.875

% per annum,

or $

2.21875

 per share per annum. For 2022, 2021 and 2020 dividends on Series B Preferred Shares

amounted to $

5,769

, $

5,769

 and $

5,769

, respectively. Since February 14, 2019, the Company may

redeem, in whole or in part, the Series B Preferred Shares at a redemption price of $

25.00

 per share plus

an 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 December 31, 2022, and, 2021, the Company had

10,675

 shares

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

0.01

 per share, owned by an affiliate

of its Chief Executive Officer, Mrs. Semiramis Paliou.

The Series C Preferred Stock votes with the common

shares of the Company, and each share entitles the holder thereof to 1,000 votes on all matters submitted

to a vote of the shareholders of the Company.

 The Series C Preferred Stock has no dividend or liquidation

rights and cannot be transferred without the consent of the Company except to the holder’s affiliates and

immediate family members.

d) Series D Preferred Stock

: As of December 31, 2022, and, 2021, the Company had

400

 shares of

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

0.01

 per share, owned by an affiliate of

its Chief Executive Officer, Mrs. Semiramis Paliou. The Series D Preferred Stock is not redeemable and

has

no

 dividend or liquidation rights. The Series D Preferred Stock vote with the common shares of the

Company, and each share of the Series D Preferred Stock entitles the holder thereof to up to

100,000

votes, on all matters submitted to a vote of the shareholders of the Company, subject to a maximum number

of votes eligible to be cast by such holder derived from the Series D Preferred Shares and any other voting

security of the Company held by the holder to be equal to the lesser of (i) 36% of the total number of votes

entitled to vote on any matter put to shareholders of the Company and (ii) the sum of the holder’s aggregate

voting power derived from securities other than the Series D Preferred Stock and 15% of the total number

of votes entitled to be cast on matters put to shareholders of the Company. The Series D Preferred Stock

is transferable only to the holder’s immediate family members and to affiliated persons or entities. 

e) Issuance and Repurchase of Common Shares:

In February 2020, the Company repurchased, in

a tender offer

3,030,303

 shares of its common stock at a price of $

3.30

 per share and in March 2020,

repurchased

1,088,034

 shares of common stock under its share repurchase plan authorized in May 2014,

at an average price of $

1.72

 per share. The aggregate cost of the shares repurchased amounted to

$

11,999

, including expenses. In February 2021, the Company repurchased in a tender offer

6,000,000

shares at the price of $

2.50

 per share. In

August 2021, the Company repurchased, in another tender offer,

3,333,333

 shares, at a price of $

4.50

 per share and in December 2021, repurchased

3,529,411

 shares at

a price of $

4.25

 per share. The aggregate cost of the share repurchases was $

45,369

, including expenses.

In 2022, the Company issued under its ATM program

877,581

 shares of common stock, at an average

price of $

6.27

 per share and received net proceeds of $

5,322

. During 2022, the Company repurchased

under its share repurchase program

820,000

 shares of common stock, at an average price of $

4.56

 per

share, for an aggregate cost of $

3,799

, including expenses. In addition, during the fourth quarter, the

Company issued

16,453,780

 common shares to Sea Trade (Note 4), upon exercise by Sea Trade of the

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-33

eight out of nine warrants mentioned in (i) below, for the acquisition of eight vessels, at an average price

of $

4.13

.

f) Dividend on Common Stock:

On March 21, 2022, the Company paid a dividend on its common

stock of $

0.20

 per share, to its shareholders of record as of March 9, 2022. On June 17, 2022, the Company

paid a dividend on its common stock of $

0.25

 per share, to its shareholders of record as of June 6, 2022.

On August 19, 2022, the Company paid a dividend on its common stock of $

0.275

 per share, to its

shareholders of record as of August 8, 2022. On December 15, 2022, the Company paid a dividend on its

common stock of $

0.175

 per share, to its shareholders of record as of November 28, 2022. During 2022,

the Company paid total cash dividends on common stock amounting to $

79,812

.

g) Dividend in Kind:

On December 15, 2022, the Company distributed the Company’s investment in

the Series D Preferred Shares of OceanPal in the form of a stock dividend amounting to $

18,189

, or $

0.18

per share, to its shareholders of record as of November 28, 2022 (Notes 3(f) and 4). On November 29,

2021, the Company distributed to its shareholders of record on November 3, 2021, the common stock of

OceanPal, acquired in a spin-off, amounting to $

40,509

 (Note 3(d)).

h) Incentive Plan:

On February 25, 2022, the Company’s Board of Directors approved the award of

1,470,000

 shares of restricted common stock to executive management and non-executive directors,

pursuant to the Company’s Equity Incentive Plan, as annual bonus. The fair value of the restricted shares

based on the closing price on the date of the Board of Directors’ approval was $

6,101

. The cost of these

awards will be recognized in income ratably over the restricted shares vesting period which will be

3

 years.

As of December 31, 2022,

15,194,759

 shares remained reserved for issuance according to the Company’s

incentive plan.

Restricted stock in 2022, 2021 and 2020 is analyzed as follows:

Number of Shares

Weighted Average

Grant Date Price

Outstanding at December 31, 2019

3,833,233

$

3.63

Granted

2,200,000

2.72

Vested

(3,610,221)

3.52

Outstanding at December 31, 2020

2,423,012

$

2.95

Granted

8,260,000

2.85

Vested

(1,168,363)

3.20

Outstanding at December 31, 2021

9,514,649

$

2.83

Granted

1,470,000

4.15

Vested

(3,118,060)

2.86

Outstanding at December 31, 2022

7,866,589

$

3.07

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 being recognized ratably in the consolidated statement of operations over

the respective vesting periods. In 2022, 2021, and 2020, compensation cost amounted to $

9,282

, $

7,442

,

and $

10,511

, respectively, and is included in “General and administrative expenses” presented in the

accompanying consolidated statements of operations.

As of December 31, 2022 and 2021, the total unrecognized cost relating to restricted share awards was

$

16,873

 and $

20,054

, respectively. As of December 31, 2022, the weighted-average period over which the

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-34

total compensation cost related to non-vested awards not yet recognized is expected to be recognized is

2.54

 years.

i) Warrants:

On August 11, 2022, the Company issued

nine

 warrants to Sea Trade (Note 4) that

permitted the holder to purchase from the Company

18,487,393

, at $

0.01

 per share, each exercisable on

the delivery of each vessel from Sea Trade to the Company. The warrants would expire and no longer be

exercisable upon the earlier of the termination date of each memorandum of agreement and the date before

the delivery date of a vessel if a registration statement had not been declared effective. The holder of the

warrants would not be considered a shareholder prior to the issuance of the shares. As of December 31,

2022, there was only

one

 warrant not exercised by Sea Trade as

one

 vessel had not been delivered to the

Company (Note 15). The Company did

no

t receive any proceeds from the exercise of the warrants by Sea

Trade and the exercise price of the shares issued was included in the price of the vessels acquired.

10. Voyage expenses

The amounts in the accompanying consolidated statements of operations are analyzed as follows:

2022

2021

2020

Commissions

$

14,412

$

10,794

$

8,310

(Gain)/loss from bunkers

(8,100)

(5,955)

3,708

Port expenses and other

630

731

1,507

Total 

$

6,942

$

5,570

$

13,525

11. Interest and Finance Costs

The amounts in the accompanying consolidated statements of operations are analyzed as follows:

2022

2021

2020

Interest expense, debt

$

21,983

$

18,067

$

20,163

Finance liabilities interest expense

2,735

-

-

Amortization of debt and finance liabilities issuance costs

2,286

1,865

1,066

Loan and other expenses

415

307

285

Interest expense and finance costs

$

27,419

$

20,239

$

21,514

12. Earnings/(loss) per Share

All common shares issued (including the restricted shares issued under the Company’s incentive plans)

are the Company’s common stock and have equal rights to vote and participate in dividends. The

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

participating securities) as outstanding until the time/service-based vesting restriction has lapsed.

Incremental shares are the number of shares assumed issued under the treasury stock method weighted

for the periods the non-vested shares were outstanding. In 2022 and 2021, there were

3,257,861

 and

3,735,059

 incremental shares, respectively, included in the denominator of the diluted earnings per share

calculation. In 2020, incremental shares were

no

t included in the calculation of the diluted earnings per

share, as the Company incurred losses and the effect of such shares would be anti-dilutive.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-35

Profit or loss attributable to common equity holders is adjusted by the amount of dividends on Series B

Preferred Stock as follows:

2022

2021

2020

Net income/(loss)

$

119,063

$

57,394

$

(134,197)

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Net income/(loss) attributable to common stockholders

$

113,294

$

51,625

$

(139,966)

Weighted average number of common shares, basic

80,061,040

81,121,781

86,143,556

Incremental shares 

3,257,861

3,735,059

-

Weighted average number of common shares, diluted 

83,318,901

84,856,840

86,143,556

Earnings/(loss) per share, basic

$

1.42

$

0.64

$

(1.62)

Earnings/(loss) per share, diluted

$

1.36

$

0.61

$

(1.62)

13. Income Taxes

Under the laws of the countries of the companies’ incorporation and / or vessels’ registration, the

companies are not subject to tax on international shipping income; however, they are subject to registration

and tonnage taxes, which are included in vessel operating expenses in the accompanying consolidated

statements of operations.

The vessel-owning companies with vessels that have called on the United States are obliged to file tax

returns with the Internal Revenue Service. However, pursuant to the Internal Revenue Code of the United

States, U.S. source income from the international operations of ships is generally exempt from U.S. tax.

The applicable tax is

50

% of

4

% of U.S.-related gross transportation income unless an exemption applies.

The Company and each of its subsidiaries expects it qualifies for this statutory tax exemption for the 2022,

2021 and 2020 taxable years, and the Company takes this position for United States federal income tax

return reporting purposes.

14. Financial Instruments and Fair Value Disclosures

Interest rate risk and concentration of credit risk

Financial instruments, which potentially subject the Company to significant concentrations of credit risk,

consist principally of cash and trade accounts receivable. 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. 

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-36

In 2022, 2021 and 2020, charterers that individually accounted for

10

% or more of the Company’s time

charter revenues were as follows:

Charterer

2022

2021

2020

Cargill International SA

19%

10%

18%

Koch Shipping PTE LTD. Singapore

15%

*

16%

*Less than 10%

The Company is exposed to interest rate fluctuations associated with its variable rate borrowings. Currently,

the company does not have any derivative instruments to manage such fluctuations.

Fair value of assets and liabilities

The carrying values of financial assets reflected in the accompanying consolidated balance sheet,

approximate their respective fair values due to the short-term nature of these financial instruments. The

fair value of long-term bank loans with variable interest rates approximates the recorded values, generally

due to their variable interest rates. 

Fair value measurements disclosed 

As of December 31, 2022, the Bond having a fixed interest rate and a carrying value of $

125,000

 (Note 6)

had a fair value of $

120,525

 determined through the Level 1 input of the fair value hierarchy as defined in

FASB guidance for Fair Value Measurements.

On September 20, 2022, the Company acquired

25,000

 Series D Preferred Shares of OceanPal, par at

$

17,600

, determined through Level 2 inputs of the fair value hierarchy by taking into consideration a third-

party valuation which was based on the income approach, taking into account the present value of the

future cash flows the Company expects to receive from holding the equity instrument. 

On December 15, 2022, the Company distributed the Series D Preferred Shares as non-cash dividend and

measured their fair value on the date of declaration at $

18,189

. Their fair value was determined through

Level 2 inputs of the fair value hierarchy, by using the income approach, taking into account the present

value of the future cash flows, the holder of shares would expect to receive from holding the equity

instrument which resulted in gain of $

589

 (Note 3(f).

Other Fair value measurements

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-37

Description (in thousands of US Dollars)

December 31,

2021

Quoted Prices in

Active Markets

(Level 1)

Significant Other

Observable

Inputs (Level 2)

Non-recurring fair value measurements

Investments in related parties (1)

7,575

7,575

December 31,

2022

Quoted Prices in

Active Markets

(Level 1)

Significant Other

Observable

Inputs (Level 2)

Non-recurring fair value measurements

Long-lived assets held for use (2)

67,909

67,909

Total non-recurring fair value measurements

67,909

67,909

-

(1)

On November 29, 2021, Series B preferred shares and Series C preferred shares were recorded

at $

5

 and $

7,570

, respectively, being the fair value of the shares on the date of issuance to the

Company by OceanPal (Note 3(f)).

(2) During the fourth quarter of 2022, the Company took delivery of

eight

 vessels under its master

agreement with Sea Trade, acquired for the purchase price of $

263,719

, of which $

195,810

 was

paid in cash and $

67,909

 was paid through newly issued common stock (Note 4). The fair value of

the common shares issued to Sea Trade was determined based on the closing price of the

Company’s shares on the date of delivery of each vessel, which was also the date of issuance of

such shares.

15. Subsequent Events

a) Series B Preferred Stock Dividends:

On January 17, 2023, the Company paid a quarterly

dividend on its series B preferred stock, amounting to $

0.5546875

 per share, or $

1,442

, to its

stockholders of record as of January 13, 2023.

b) Sale of vessels and loan prepayments:

 On January 23, 2023, the Company, through a wholly

owned subsidiary, entered into an agreement with an unrelated third party to sell the vessel Aliki

for the sale price of $

15,080

. The vessel was delivered to her new owners on February 8, 2023.

Additionally, on February 1, 2023, the Company, through a wholly-owned subsidiary, entered into

an agreement with OceanPal, a related party company, to sell the vessel Melia for the sale price of

$

14,000

, of which $

4,000

 in cash and $

10,000

 through

13,157

 of OceanPal Series D Preferred

Shares. The vessel was delivered to her new owners on February 8, 2023. The sale of the vessels

resulted in gain. On February 2, 2023, the Company prepaid $

8,134

 under one of its loan

agreements with Nordea, being the part of the loan secured by

Melia

 and

Aliki

, and the repayment

schedule was adjusted accordingly.

c) Delivery of Ultramax vessel:

 On January 30, 2023, the Company took delivery of the ninth

Ultramax dry bulk vessel, under the Company’s agreement with Sea Trade and issued

2,033,613

common shares to Sea Trade, at $

0.01

 par value per share (Note 4), having a fair value of $

7,809

,

based on the closing price of the Company’s stock on the date of delivery, determined through

Level 1 account hierarchy. 

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-38

d) Acquisition of Ultramax vessel:

 On February 14, 2023, the Company signed a Memorandum of

Agreement to acquire from an unaffiliated third party the m/v Nord Potomac, a 2016 built Ultramax

dry bulk vessel, for a purchase price of $

27,900

, of which the Company paid a

10

% advance of the

purchase price. The Company anticipates taking delivery of the vessel by the beginning of April

2023.

e)

Restricted share awards:

 On February 22, 2023, the Company’s Board of Directors approved the

award of

1,750,000

. shares of restricted common stock to executive management and non-

executive directors, pursuant to the Company’s amended plan, as annual bonus. The fair value of

the restricted shares based on the closing price on the date of the Board of Directors’ approval was

$

7,945

. The cost of these awards will be recognized ratably over the restricted shares vesting period

which will be

3

 years.

f) Loan prepayment:

 On March 14, 2023, the Company prepaid $

11,841

 being the outstanding

balance of its loan with DNB Bank (Note 6).

g) Dividend on Common Stock and Dividend in Kind:

 On March 20, 2023, the Company paid a

quarterly dividend on its common stock of $

0.15

 per share, or $

15,965

, to shareholders of record

as of March 13, 2023 based on the Company’s results of operations during the fourth quarter ended

December 31, 2022. The Company will also distribute on May 16, 2023, to its shareholders of record

on April 24, 2023, the

13,157

 Series D Preferred Shares of OceanPal Inc. acquired as part of the

non-cash consideration of the sale of

Melia

 described in (b) above.

EX-2.8

Exhibit 2.8

DESCRIPTION OF THE REGISTRANT'S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2022, Diana Shipping Inc. (the “Company”) had five classes of securities registered under Section

12 of the Securities Exchange Act of 1934, as amended:

(1)

Common stock, $0.01 par value (the “common shares”);

(2)

Preferred stock purchase rights (the “Preferred Stock Purchase Rights”);

(3)

Series C Preferred Shares; 

(4)

(5)

Series D Preferred Shares; and

8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, $0.01 par value (the “Series B

Preferred Shares”).

The following description sets forth certain material provisions of these securities. The following summary does not

purport to be complete and is subject to, and is qualified in its entirety by reference to, the applicable provisions of (i)

the Company’s Amended and Restated Articles of Incorporation, as amended (the “Articles of Incorporation”) and

(ii) the Company’s Amended and Restated Bylaws (the “Bylaws”), each of which is incorporated by reference as an

exhibit to the Annual Report on Form 20-F of which this Exhibit is a part. We encourage you to refer to our Articles

of Incorporation and Bylaws for additional information.

Please note in this description of securities, “we”, “us”, “our” and “the Company” all refer to Diana Shipping Inc.

and its subsidiaries, unless the context requires otherwise.

DESCRIPTION OF COMMON SHARES

The respective number of common shares issued and outstanding as of the last day of the fiscal year for the annual

report on Form 20-F to which this description is attached or incorporated by reference as an exhibit, is provided on

the cover page of such annual report on Form 20-

F.

Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of

stockholders. Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders of

shares of common stock are entitled to receive ratably all dividends, if any, declared by our board of directors out of

funds legally available for dividends. Upon our dissolution or liquidation or the sale of all or substantially all of our

assets, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having

liquidation preferences, if any, the holders of our common stock will be entitled to receive pro rata our remaining

assets available for distribution. Holders of common stock do not have conversion, redemption or preemptive rights

to subscribe to any of our securities. The rights, preferences and privileges of holders of common stock are subject to

the rights of the holders of our preferred stock.

Voting Rights

Each outstanding common share entitles the holder to one vote on all matters submitted to a vote of shareholders. At

any annual or special general meeting of shareholders where there is a quorum, the affirmative vote of a majority of

the votes cast by holders of shares of stock represented at the meeting shall be the act of the shareholders. (Under the

Bylaws, at all meetings of shareholders except otherwise expressly provided by law, there must be present in person

or proxy shareholders of record holding at least 33 1/3% of the shares issued and outstanding and entitled to vote at

such meeting in order to constitute a quorum.)

Our Bylaws do not confer any conversion, redemption or preemptive rights attached to our common shares.

Dividend Rights

Subject to preferences that may be applicable to any outstanding preferred shares, holders of common shares are

entitled to receive ratably all dividends, if any, declared by our board of directors out of funds legally

available for dividends.

Liquidation Rights

Upon our dissolution or liquidation or the sale of all or substantially all of our assets, after payment in full of all

amounts required to be paid to creditors and to the holders of our preferred shares having liquidation preferences, if

any, the holders of our common shares will be entitled to receive pro rata our remaining assets available for

distribution.

Variation of Rights

Generally, the rights or privileges attached to our common shares may be varied or abrogated by the rights of the

holders of our preferred shares, including our existing classes of preferred shares and any preferred shares we may

]issue in the future.

Limitations on Ownership

Under Marshall Islands law generally, there are no limitations on the right of non-residents of the Marshall Islands or

owners who are not citizens of the Marshall Islands to hold or vote our common shares.

Anti-takeover Effect of Certain Provisions of our Amended and Restated Articles of In Company and Bylaws

Several provisions of our amended and restated articles of incorporation and bylaws may have anti-takeover effects.

These provisions, which are summarized below, are intended to avoid costly takeover battles, lessen our vulnerability

to a hostile change of control and enhance the ability of our board of directors to maximize stockholder value in

connection with any unsolicited offer to acquire us. However, these anti-takeover provisions could also discourage,

delay or prevent (i) the merger or acquisition of our company by means of a tender offer, a proxy contest or otherwise

that a stockholder may consider in its best interest and (ii) the removal of incumbent officers and directors.

Business Combinations

Our amended and restated articles of incorporation generally prohibit us from entering into a business combination

with an "interested shareholder" for a period of three years following the date on which the person became an interested

shareholder. Interested shareholder is defined, with certain exceptions, as a person who (i) owns more than 15% of

our outstanding voting stock, or (ii) is an affiliate or associate of the Company that owned more than 15% of our

outstanding stock at any time in the prior three years from the date the determination is being made as to whether he

or she is an interested shareholder.

This prohibition does not apply in certain circumstances such as if (i) prior to the person becoming an interested

shareholder, our board of directors approved the business combination or the transaction which resulted in the person

becoming an interested shareholder, or (ii) the person became an interested shareholder prior to the Company's initial

public offering.

Blank Check Preferred Stock

Under the terms of our amended and restated articles of incorporation, our board of directors has authority, without

any further vote or action by our stockholders, to issue up to 25,000,000 shares of blank check preferred stock. Our

board of directors may issue shares of preferred stock on terms calculated to discourage, delay or prevent a change of

control of our company or the removal of our management.

Classified Board of Directors

Our amended and restated articles of incorporation provide for the division of our board of directors into three classes

of directors, with each class as nearly equal in number as possible, serving staggered, three-year terms. Approximately

one-third of our board of directors is elected each year. This classified board provision could discourage a third party

from making a tender offer for our shares or attempting to obtain control of us. It could also delay stockholders who

do not agree with the policies of our board of directors from removing a majority of our board of directors for two

years

.

Election and Removal of Directors

Our amended and restated articles of incorporation prohibit cumulative voting in the election of directors. Our

amended and restated bylaws require parties other than the board of directors to give advance written notice of

nominations for the election of directors. Our amended and restated articles of incorporation also provide that our

directors may be removed only for cause and only upon the affirmative vote of a majority of the outstanding shares of

our capital stock entitled to vote for those directors. These provisions may discourage, delay or prevent the removal

of incumbent officers and directors. The Articles prohibit the use of cumulative voting to elect Directors.

Limited Actions by Stockholders

Our amended and restated articles of incorporation and bylaws provide that any action required or permitted to be

taken by our stockholders must be effected at an annual or special meeting of stockholders or by the unanimous written

consent of our stockholders. Our amended and restated articles of incorporation and bylaws provide that, subject to

certain exceptions, our Chairman, Chief Executive Officer, or Secretary at the direction of the board of directors or

holders of not less than one-fifth of all outstanding shares may call special meetings of our stockholders and the

business transacted at the special meeting is limited to the purposes stated in the notice. Accordingly, a stockholder

may be prevented from calling a special meeting for stockholder consideration of a proposal over the opposition of

our board of directors and stockholder consideration of a proposal may be delayed until the next annual meeting.

Advance Notice Requirements for Stockholder Proposals and Director Nominations

Our amended and restated bylaws provide that stockholders seeking to nominate candidates for election as directors

or to bring business before an annual meeting of stockholders must provide timely notice of their proposal in writing

to the corporate secretary. Generally, to be timely, a stockholder's notice must be received at our principal executive

offices not less than 90 days nor more than 120 days prior to the date on which we first mailed our proxy materials

for the preceding year's annual meeting. Our bylaws also specify requirements as to the form and content of a

stockholder's notice. These provisions may impede stockholders' ability to bring matters before an annual meeting of

stockholders or make nominations for directors at an annual meeting of stockholders.

DESCRIPTION OF THE SERIES B PREFERRED SHARES

On February 3, 2014, we filed a Prospectus Statement for the registration of 2,400,000 of our 8.875% Series B

Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, with a liquidation preference of $25.00

per share.

We have summarized the material terms and conditions of the rights of these Series B Preferred Shares below. For a

complete description of the rights, we encourage you to read the “Description of Registrant’s Securities to be

Registered” , which we have filed as an exhibit to the Form 8-A on February 13, 2014.

Dividends

Under the Agreement, we declared a dividend payment of 8.875% per annum per $25.00 liquidation preference per

share (equal to $2.21875 per annum per share). These dividends accrue and are cumulative from the date the Series B

Cumulative shares are originally issued. The dividends are payable, as and if declared by the Board on January 15,

April 15, July 15 and October 15 of each year.

Liquidation Preference

Holders of the Series B Preferred Shares are entitled to a liquidation preference. Upon the occurrence of a liquidation,

dissolution or winding up of the affairs of the Company, whether voluntary or involuntary (a “Liquidation Event”),

Holders of Series B Preferred Shares shall be entitled to receive out of the assets of the Company or proceeds thereof

legally available for distribution to stockholders of the Company, (i) after satisfaction of all liabilities, if any, to

creditors of the Company, (ii) after all applicable distributions of such assets or proceeds being made to or set aside

for the holders of any Senior Stock then outstanding in respect of such Liquidation Event, (iii) concurrently with any

applicable distributions of such assets or proceeds being made to or set aside for holders of any Parity Stock then

outstanding in respect of such Liquidation Event and (iv) before any distribution of such assets or proceeds is made

to or set aside for the holders of Common Stock and any other classes or series of Junior Stock as to such distribution,

a liquidating distribution or payment in full redemption of such Series B Preferred Shares in an amount initially equal

to $25.00 per share in cash, plus an amount equal to accumulated and unpaid dividends thereon to the date fixed for

payment of such amount (whether or not declared).

Voting Rights

In the event that six quarterly dividends, whether consecutive or not, payable on the Series B Preferred Shares are in

arrears, the Holders of Series B Preferred Shares shall have the right, voting as a class together with holders of any

Parity Stock upon which like voting rights have been conferred and are exercisable, at the next meeting of stockholders

called for the election of directors, to elect one member of the Board of Directors, and the size of the Board of Directors

shall be increased as needed to accommodate such change.

Unless the Company shall have received the affirmative vote or consents of the Holders of at least two-thirds of the

outstanding Series B Preferred Shares, voting as a single class, the Company may not adopt any amendment to the

Articles of Incorporation that adversely alters the preferences, powers or rights of the Series B Preferred Shares.

Unless the Company shall have received the affirmative vote or consent of the Holders of at least two-thirds of the

outstanding Series B Preferred Shares, voting as a class together with holders of any other Parity Stock upon which

like voting rights have been conferred and are exercisable, the Company may not (x) issue any Parity Stock if the

cumulative dividends payable on outstanding Series B Preferred Shares are in arrears or (y) create or issue any Senior

Stock.

Redemption Rights

The Company shall have the right at any time on or after February 14, 2019 to redeem the Series B Preferred Shares,

in whole or from time to time in part, from any funds available for such purpose. Any such redemption shall occur on

a date set by the Company.

DESCRIPTION OF THE SERIES C PREFERRED SHARES

We filed a statement of designations with the Marshall Islands registry establishing our Series C Preferred Stock, of

which 10,675 are issued and outstanding, par value $0.01 per share. The Series C Preferred Stock will vote with the

common shares of the Company, and each share of the Series C Preferred Stock shall entitle the holder thereof to

1,000 votes on all matters submitted to a vote of the stockholders of the Company. The Series C Preferred Stock has

no dividend or liquidation rights and cannot be transferred without the consent of the Company except to the holder's

affiliates and immediate family members. 

For a complete description of the rights, we encourage you to read the “Certificate of Designation of Rights,

Preferences, and Privileges of Series C Preferred Stock of the Company”, which we have filed as exhibit 3.1 to the

Form 6-K on February 6, 2019.

DESCRIPTION OF THE SERIES D PREFERRED SHARES

We filed a statement of designations with the Marshall Islands registry establishing our Series D Preferred Stock, of

which 400 are issued and outstanding, par value $0.01 per share. The Series D Preferred Stock has no dividend or

liquidation rights. The Series D Preferred Stock votes with the common shares of the Company, and each share of the

Series D Preferred Stock shall entitle the holder thereof to up to 100,000 votes, on all matters submitted to a vote of

the stockholders of the Company, subject to a maximum number of votes eligible to be cast by such holder derived

from the Series D Preferred Shares and any other voting security of the Company held by the holder to be equal to

the lesser of (i) 36% of the total number of votes entitled to vote on any matter put to shareholders of the Company

and (ii) the sum of the holder’s aggregate voting power derived from securities other than the Series D Preferred Stock

and 15% of the total number of votes entitled to be cast on matters put to shareholders of the Company. The Series D

Preferred Stock is transferable only to the holder’s immediate family members and to affiliated persons. 

For a complete description of the rights, we encourage you to read the “Statement of Designation of Rights,

Preferences and Privileges of Series D Preferred Stock of the Company”, which we have filed as Exhibit 3.1 to the

Form 6-K on June 23, 2021.

DESCRIPTION OF PREFERRED STOCK PURCHASE RIGHTS

On January 15, 2016, we entered into a Stockholders Rights Agreement, or the Rights Agreement, with Computershare

Trust Company, N.A., as Rights Agent, to replace the Amended and Restated Stockholders Rights Agreement dated

October 7, 2008.

Under the Rights Agreement, we declared a dividend payable of one preferred stock purchase right, or Right, for each

share of common stock outstanding at the close of business on January 26, 2016. Each Right entitles the registered

holder to purchase from us one one-thousandth of a share of Series A Participating Preferred Stock, par value $0.01

per share, at an exercise price of $40.00 per share. The Rights will separate from the common stock and become

exercisable only if a person or group acquires beneficial ownership of 18.5% or more of our common stock (including

through entry into certain derivative positions) in a transaction not approved by our board of directors. In that situation,

each holder of a Right (other than the acquiring person, whose Rights will become void and will not be exercisable)

will have the right to purchase, upon payment of the exercise price, a number of shares of our common stock having

a then-current market value equal to twice the exercise price. In addition, if the Company is acquired in a merger or

other business combination after an acquiring person acquires 18.5% or more of our common stock, each holder of

the Right will thereafter have the right to purchase, upon payment of the exercise price, a number of shares of common

stock of the acquiring person having a then-current market value equal to twice the exercise price. The acquiring

person will not be entitled to exercise these Rights. Until a Right is exercised, the holder of a Right will have no rights

to vote or receive dividends or any other stockholder rights.

The Rights may have anti-takeover effects. The Rights will cause substantial dilution to any person or group that

attempts to acquire us without the approval of our board of directors. As a result, the overall effect of the Rights may

be to render more difficult or discourage any attempt to acquire us. Because our board of directors can approve a

redemption of the Rights or a permitted offer, the Rights should not interfere with a merger or other business

combination approved by our board of directors.

We have summarized the material terms and conditions of the Rights Agreement and the Rights below. For a complete

description of the Rights, we encourage you to read the Rights Agreement, which we have filed as an exhibit to the

registration statement filed with the Commission on June 28, 2018.

Detachment of the Rights

The Rights are attached to all certificates representing our currently outstanding common stock, or, in the case of

uncertificated common shares registered in book entry form, which we refer to as "book entry shares," by notation in

book entry accounts reflecting ownership, and will attach to all common stock certificates and book entry shares we

issue prior to the Rights distribution date that we describe below. The Rights are not exercisable until after the Rights

distribution date and will expire at the close of business on January 14, 2026, unless we redeem or exchange them

earlier as we describe below. The Rights will separate from the common stock and a Rights distribution date would

occur, subject to specified exceptions, on the earlier of the following two dates:

•

the 10th day after public announcement that a person or group has acquired ownership of 15% or more of the

Company's common stock; or

•

the 10th business day (or such later date as determined by the Company's board of directors) after a person

or group announces a tender or exchange offer which would result in that person or group holding 15% or

more of the Company's common stock.

"Acquiring person" is generally defined in the Rights Agreement as any person, together with all affiliates or

associates, who beneficially owns 18.5% or more of the Company's common stock. However, the Company, any

subsidiary of the Company or any employee benefit plan of the Company or of any subsidiary of the Company, or any

person holding shares of common stock for or pursuant to the terms of any such plan, are excluded from the definition

of "acquiring person." In addition, persons who beneficially own 18.5% or more of the Company's common stock on

the effective date of the Rights Agreement are excluded from the definition of "acquiring person" until such time as

they acquire additional shares in excess of 2% of the Company's then outstanding common stock as specified in the

Rights Agreement for purposes of the Rights, and therefore, until such time, their ownership cannot trigger the Rights.

Specified "inadvertent" owners that would otherwise become an acquiring person, including those who would have

this designation as a result of repurchases of common stock by us, will not become acquiring persons as a result of

those transactions.

Our board of directors may defer the Rights distribution date in some circumstances, and some inadvertent acquisitions

will not result in a person becoming an acquiring person if the person promptly divests itself of a sufficient number of

shares of common stock.

Until the Rights distribution date:

•

our common stock certificates and book entry shares will evidence the Rights, and the Rights will be

transferable only with those certificates; and

•

any new common stock will be issued with Rights and new certificates or book entry shares, as applicable,

will contain a notation incorporating the Rights Agreement by reference.

As soon as practicable after the Rights distribution date, the Rights agent will mail certificates representing the Rights

to holders of record of common stock at the close of business on that date. After the Rights distribution date, only

separate Rights certificates will represent the Rights.

We will not issue Rights with any shares of common stock we issue after the Rights distribution date, except as our

board of directors may otherwise determine.

Flip-In Event

A "flip-in event" will occur under the Rights Agreement when a person becomes an acquiring person other than

pursuant to certain kinds of permitted offers. An offer is permitted under the Rights Agreement if a person will become

an acquiring person pursuant to a merger or other acquisition agreement that has been approved by our board of

directors prior to that person becoming an acquiring person.

If a flip-in event occurs and we have not previously redeemed the Rights as described under the heading "Redemption

of Rights" below or, if the acquiring person acquires less than 50% of our outstanding common stock and we do not

exchange the Rights as described under the heading "Exchange of Rights" below, each Right, other than any Right

that has become void, as we describe below, will become exercisable at the time it is no longer redeemable for the

number of shares of common stock, or, in some cases, cash, property or other of our securities, having a current market

price equal to two times the exercise price of such right.

When a flip-in event occurs, all Rights that then are, or in some circumstances that were, beneficially owned by or

transferred to an acquiring person or specified related parties will become void in the circumstances the Rights

Agreement specifies.

Transfer of Shares

The Board of Directors has the power and authority to make such rules and regulations as they may deem expedient

concerning the issuance, registration and transfer of shares of the Company’s stock, and may appoint transfer agents

and registrars thereof.

Comparison of Marshall Island Law to Delaware Law

The following table provides a comparison between some statutory provisions of the Delaware General Company

Law and the Marshall Islands Business Corporations Act relating to shareholders’ rights.

Marshall Islands

Delaware

Shareholder Meetings

Held at a time and place as designated in the bylaws.

May be held at such time or place as designated in the

certificate of incorporation or the bylaws, or if not so

designated, as determined by the board of directors.

Special meetings of the shareholders may be called by the

board of directors or by such person or persons as may be

authorized by the articles of incorporation or by the

bylaws.

Special meetings of the shareholders may be called by

the board of directors or by such person or persons as

may be authorized by the certificate of incorporation

or by the bylaws.

May be held within or without the Marshall Islands.

May be held within or without Delaware.

Notice:

Notice:

Whenever shareholders are required to take any action at a

meeting, written notice of the meeting shall be given which

shall state the place, date and hour of the meeting and,

unless it is an annual meeting, indicate that it is being

issued by or at the direction of the person calling the

meeting. Notice of a special meeting shall also state the

purpose for which the meeting is called.

Whenever shareholders are required to take any action

at a meeting, a written notice of the meeting shall be

given which shall state the place, if any, date and hour

of the meeting, and the means of remote

communication, if any.

A copy of the notice of any meeting shall be given

personally, sent by mail or by electronic mail not less than

15 nor more than 60 days before the meeting.

Written notice shall be given not less than 10 nor more

than 60 days before the meeting.

Shareholders’ Voting Rights

Unless otherwise provided in the articles of incorporation,

any action required to be taken at a meeting of

shareholders may be taken without a meeting, without prior

notice and without a vote, if a consent in writing, setting

forth the action so taken, is signed by all the shareholders

entitled to vote with respect to the subject matter thereof,

or if the articles of incorporation so provide, by the holders

of outstanding shares having not less than the minimum

number of votes that would be necessary to authorize or

take such action at a meeting at which all shares entitled to

vote thereon were present and voted.

Any action required to be taken at a meeting of

shareholders may be taken without a meeting if a

consent for such action is in writing and is signed by

shareholders having not fewer than the minimum

number of votes that would be necessary to authorize

or take such action at a meeting at which all shares

entitled to vote thereon were present and voted.

Any person authorized to vote may authorize another

person or persons to act for him by proxy.

Any person authorized to vote may authorize another

person or persons to act for him by proxy.

Unless otherwise provided in the articles of incorporation

or bylaws, a majority of shares entitled to vote constitutes a

quorum. In no event shall a quorum consist of fewer than

one-third of the shares entitled to vote at a meeting.

For stock corporations, the certificate of incorporation

or bylaws may specify the number of shares required

to constitute a quorum but in no event shall a quorum

consist of less than one-third of shares entitled to vote

at a meeting. In the absence of such specifications, a

majority of shares entitled to vote shall constitute a

quorum.

When a quorum is once present to organize a meeting, it is

not broken by the subsequent withdrawal of any

shareholders.

When a quorum is once present to organize a meeting,

it is not broken by the subsequent withdrawal of any

shareholders.

The articles of incorporation may provide for cumulative

voting in the election of directors.

The certificate of incorporation may provide for

cumulative voting in the election of directors.

Marshall Islands

Delaware

Merger or Consolidation

Any two or more domestic corporations may merge into a

single corporation if approved by the board and if

authorized by a majority vote of the holders of outstanding

shares at a shareholder meeting.

Any two or more corporations existing under the laws

of the state may merge into a single corporation

pursuant to a board resolution and upon the majority

vote by shareholders of each constituent corporation at

an annual or special meeting.

Any sale, lease, exchange or other disposition of all or

substantially all the assets of a corporation, if not made in

the corporation’s usual or regular course of business, once

approved by the board, shall be authorized by the

affirmative vote of two-thirds of the shares of those entitled

to vote at a shareholder meeting.

Every corporation may at any meeting of the board

sell, lease or exchange all or substantially all of its

property and assets as its board deems expedient and

for the best interests of the corporation when so

authorized by a resolution adopted by the holders of a

majority of the outstanding stock of the corporation

entitled to vote.

Any domestic corporation owning at least 90% of the

outstanding shares of each class of another domestic

corporation may merge such other corporation into itself

without the authorization of the shareholders of any

corporation.

Any corporation owning at least 90% of the

outstanding shares of each class of another corporation

may merge the other corporation into itself and

assume all of its obligations without the vote or

consent of shareholders; however, in case the parent

corporation is not the surviving corporation, the

proposed merger shall be approved by a majority of

the outstanding stock of the parent corporation entitled

to vote at a duly called shareholder meeting.

Any mortgage, pledge of or creation of a security interest

in all or any part of the corporate property may be

authorized without the vote or consent of the shareholders,

unless otherwise provided for in the articles of

incorporation.

Any mortgage or pledge of a corporation’s property

and assets may be authorized without the vote or

consent of shareholders, except to the extent that the

certificate of incorporation otherwise provides.

Directors

The board of directors must consist of at least one member.

The board of directors must consist of at least one

member.

The number of board members may be changed by an

amendment to the bylaws, by the shareholders, or by action

of the board under the specific provisions of a bylaw.

The number of board members shall be fixed by, or in

a manner provided by, the bylaws, unless the

certificate of incorporation fixes the number of

directors, in which case a change in the number shall

be made only by an amendment to the certificate of

incorporation.

If the board is authorized to change the number of

directors, it can only do so by a majority of the entire board

and so long as no decrease in the number shall shorten the

term of any incumbent director.

If the number of directors is fixed by the certificate of

incorporation, a change in the number shall be made

only by an amendment of the certificate.

Removal:

Removal:

Any or all of the directors may be removed for cause by

vote of the shareholders.

Any or all of the directors may be removed, with or

without cause, by the holders of a majority of the

shares entitled to vote unless the certificate of

incorporation otherwise provides.

If the articles of incorporation or the bylaws so provide,

any or all of the directors may be removed without cause

by vote of the shareholders.

In the case of a classified board, shareholders may

effect removal of any or all directors only for cause.

Marshall Islands

Delaware

Dissenters’ Rights of Appraisal

Shareholders have a right to dissent from any plan of

merger, consolidation or sale of all or substantially all

assets not made in the usual course of business, and receive

payment of the fair value of their shares. However, the

right of a dissenting shareholder under the BCA to receive

payment of the appraised fair value of his shares shall not

be available for the shares of any class or series of stock,

which shares or depository receipts in respect thereof, at

the record date fixed to determine the shareholders entitled

to receive notice of and to vote at the meeting of the

shareholders to act upon the agreement of merger or

consolidation, were either (i) listed on a securities

exchange or admitted for trading on an interdealer

quotation system or (ii) held of record by more than 2,000

holders. The right of a dissenting shareholder to receive

payment of the fair value of his or her shares shall not be

available for any shares of stock of the constituent

corporation surviving a merger if the merger did not

require for its approval the vote of the shareholders of the

surviving corporation.

Appraisal rights shall be available for the shares of

any class or series of stock of a corporation in a

merger or consolidation, subject to limited exceptions,

such as a merger or consolidation of corporations

listed on a national securities exchange in which listed

stock is offered for consideration is (i) listed on a

national securities exchange or (ii) held of record by

more than 2,000 holders.

A holder of any adversely affected shares who does not

vote on or consent in writing to an amendment to the

articles of incorporation has the right to dissent and to

receive payment for such shares if the amendment:

•

Alters or abolishes any preferential right of any

outstanding shares having preference; or

•

Creates, alters, or abolishes any provision or

right in respect to the redemption of any

outstanding shares; or

•

Alters or abolishes any preemptive right of such

holder to acquire shares or other securities; or

•

Excludes or limits the right of such holder to vote

on any matter, except as such right may be

limited by the voting rights given to new shares

then being authorized of any existing or new

class.

Shareholder’s Derivative Actions

An action may be brought in the right of a corporation to

procure a judgment in its favor, by a holder of shares or of

voting trust certificates or of a beneficial interest in such

shares or certificates. It shall be made to appear that the

plaintiff is such a holder at the time of bringing the action

and that he was such a holder at the time of the transaction

of which he complains, or that his shares or his interest

therein devolved upon him by operation of law.

In any derivative suit instituted by a shareholder of a

corporation, it shall be averred in the complaint that

the plaintiff was a shareholder of the corporation at the

time of the transaction of which he complains or that

such shareholder’s stock thereafter devolved upon

such shareholder by operation of law.

A complaint shall set forth with particularity the efforts of

the plaintiff to secure the initiation of such action by the

board or the reasons for not making such effort.

Other requirements regarding derivative suits have

been created by judicial decision, including that a

shareholder may not bring a derivative suit unless he

or she first demands that the corporation sue on its

own behalf and that demand is refused (unless it is

shown that such demand would have been futile).

Such action shall not be discontinued, compromised or

settled, without the approval of the High Court of the

Republic of the Marshall Islands.

Reasonable expenses including attorney’s fees may be

awarded if the action is successful.

A corporation may require a plaintiff bringing a derivative

suit to give security for reasonable expenses if the plaintiff

owns less than 5% of any class of outstanding shares or

holds voting trust certificates or a beneficial interest in

shares representing less than 5% of any class of such

shares and the shares, voting trust certificates or beneficial

interest of such plaintiff has a fair value of $50,000 or less.

EX-8.1

Exhibit 8.1

SUBSIDIARIES AS AT DECEMBER 31, 2022

Subsidiary

Country of Incorporation

Aerik Shipping Company Inc.

The Republic of the Marshall Islands

Ailuk Shipping Company Inc.

The Republic of the Marshall Islands

Arorae Shipping Company Inc.

The Republic of the Marshall Islands

Aster Shipping Company Inc.

The Republic of the Marshall Islands

Beru Shipping Company Inc.

The Republic of the Marshall Islands

Bikati Shipping Company Inc.

The Republic of the Marshall Islands 

Bikini Shipping Company Inc.

The Republic of the Marshall Islands

Bokak Shipping Company Inc.

The Republic of the Marshall Islands

Bonriki Shipping Company Inc.

The Republic of the Marshall Islands

Cerada International S.A.

Republic of Panama

Ebadon Shipping Company Inc.

The Republic of the Marshall Islands

Ejite Shipping Company Inc.

The Republic of the Marshall Islands

Erikub Shipping Company Inc.

The Republic of the Marshall Islands

Fayo Shipping Company Inc.

The Republic of the Marshall Islands

Gala Properties Inc.

The Republic of the Marshall Islands

Guam Shipping Company Inc.

The Republic of the Marshall Islands

Jabat Shipping Company Inc.

The Republic of the Marshall Islands

Jabwot Shipping Company Inc.

The Republic of the Marshall Islands

Jemo Shipping Company Inc.

The Republic of the Marshall Islands

Kaben Shipping Company Inc.

The Republic of the Marshall Islands

Kili Shipping Company Inc.

The Republic of the Marshall Islands

Kiribati Shipping Company Inc.

The Republic of the Marshall Islands

Knox Shipping Company Inc.

The Republic of the Marshall Islands

Lae Shipping Company Inc.

The Republic of the Marshall Islands

Lelu Shipping Company Inc.

The Republic of the Marshall Islands

Lib Shipping Company Inc.

The Republic of the Marshall Islands

Majuro Shipping Company Inc.

The Republic of the Marshall Islands

Makur Shipping Company Inc.

The Republic of the Marshall Islands

Mandaringina Inc.

The Republic of the Marshall Islands

Manra Shipping Company Inc.

The Republic of the Marshall Islands

Mejato Shipping Company Inc.

The Republic of the Marshall Islands

Namu Shipping Company Inc.

The Republic of the Marshall Islands

Namorik Shipping Company Inc.

The Republic of the Marshall Islands

Palau Shipping Company Inc.

The Republic of the Marshall Islands

Pulap Shipping Company Inc.

The Republic of the Marshall Islands

Rairok Shipping Company Inc.

The Republic of the Marshall Islands

Rakaru Shipping Company Inc.

The Republic of the Marshall Islands

Silver Chandra Shipping Company Limited

Republic of Cyprus

Tamana Shipping Company Inc.

The Republic of the Marshall Islands

Taongi Shipping Company Inc.

The Republic of the Marshall Islands

Taroa Shipping Company Inc.

The Republic of the Marshall Islands

Toku Shipping Company Inc.

The Republic of the Marshall Islands

Tuvalu Shipping Company Inc.

The Republic of the Marshall Islands

Ujae Shipping Company Inc.

The Republic of the Marshall Islands

Vesta Commercial, S.A.

Republic of Panama

Wake Shipping Company Inc.

The Republic of the Marshall Islands

Weno Shipping Company Inc.

The Republic of the Marshall Islands

Wotho Shipping Company Inc.

The Republic of the Marshall Islands

Diana Ship Management Inc.

The Republic of the Marshall Islands

Diana Shipping Services S.A.

Republic of Panama

Bulk Carriers (USA) LLC

United States (State of Delaware)

EX-12.1

Exhibit 12.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

I, Semiramis Paliou, certify that:

1. I have reviewed this annual report on Form 20-F of Diana Shipping Inc. for the year ended December 31, 2022;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a

material fact necessary to make the statements made, in light of the circumstances under which such statements were

made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the company as of, and

for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls

and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial

reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the company, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is

being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to

be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and

the preparation of financial statements for external purposes in accordance with generally accepted accounting

principles;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by

this report based on such evaluation; and

(d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during

the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the

company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal

control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors

(or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and

report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in

the company’s internal control over financial reporting.

Date: March 27, 2023

/s/ Semiramis Paliou

Semiramis Paliou

Chief Executive Officer (Principal Executive Officer)

EX-12.2

Exhibit 12.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

I, Ioannis Zafirakis, certify that:

1. I have reviewed this annual report on Form 20-F of Diana Shipping Inc. for the year ended December

31, 2022;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to

state a material fact necessary to make the statements made, in light of the circumstances under which

such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,

fairly present in all material respects the financial condition, results of operations and cash flows of the

company as of, and for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure

controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control

over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and

have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures

to be designed under our supervision, to ensure that material information relating to the company, including

its consolidated subsidiaries, is made known to us by others within those entities, particularly during the

period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for external purposes in accordance with

generally accepted accounting principles;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this

report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of

the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company’s internal control over financial reporting that

occurred during the period covered by the annual report that has materially affected, or is reasonably likely

to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of

internal control over financial reporting, to the company’s auditors and the audit committee of the company’s

board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the company’s ability to record, process,

summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant

role in the company’s internal control over financial reporting.

Date: March 27, 2023

/s/ Ioannis Zafirakis

Ioannis Zafirakis

Chief Financial Officer (Principal Financial Officer)

EX-13.1

Exhibit 13.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Annual Report of Diana Shipping Inc. (the “Company”) on Form 20-F for the year

ended December 31, 2022 as filed with the Securities and Exchange Commission (the “SEC”) on or about

the date hereof (the “Report”), I, Semiramis Paliou, Chief Executive Officer of the Company, certify,

pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of

2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities

Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial

condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the

Company and furnished to the SEC or its staff upon request.

Date: March 27, 2023

/s/ Semiramis Paliou

Semiramis Paliou

Chief Executive Officer (Principal Executive Officer)

EX-13.2

Exhibit 13.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Annual Report of Diana Shipping Inc. (the “Company”) on Form 20-F for the year

ended December 31, 2022 as filed with the Securities and Exchange Commission (the “SEC”) on or about

the date hereof (the “Report”), I, Ioannis Zafirakis, Chief Financial Officer of the Company, certify, pursuant

to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities

Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial

condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the

Company and furnished to the SEC or its staff upon request.

Date: March 27, 2023

/s/ Ioannis Zafirakis

Ioannis Zafirakis

Chief Financial Officer (Principal Financial Officer)

EX-15.1

Exhibit 15.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form F-3 No. 333-256791) of Diana Shipping Inc., and

(2) Registration Statement (Form F-3 No. 333-266999) of Diana Shipping Inc.; 

of our reports dated March 27, 2023, with respect to the consolidated financial statements of Diana

Shipping Inc. and the effectiveness of internal control over financial reporting of Diana Shipping

Inc. included in this Annual Report (Form 20-F) for the year ended December 31, 2022. 

/s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A.

Athens, Greece

March 27, 2023

EX-4.45

Exhibit 4.45

Dated ___ July 2021

KNOX SHIPPING COMPANY INC.

BOKAK SHIPPING COMPANY INC.

JEMO SHIPPING COMPANY INC.

GUAM SHIPING COMPANY INC.

PALAU SHIPPING COMPANY INC.

MAKUR SHIPPING COMPANY INC.

and

MANDARINGINA INC.

as joint and several Borrowers

and

DIANA SHIPPING INC.

as Corporate Guarantor

and

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1

as Lenders

and

NORDEA BANK ABP

as Swap Bank

and

NORDEA BANK ABP, FILIAL I NORGE

as Agent, Security Trustee and

Lead Arranger

SUPPLEMENTAL AGREEMENT

relating to a Loan Agreement dated 7 May 2020

in respect of a loan facility of (originally) up to US$55,848,000

Index

Clause

Page

1

Definitions and Interpretation

1

2

Agreement of the Creditor Parties

3

3

Conditions Precedent and Subsequent

3

4

Representations

4

5

Amendments to Loan Agreement and other Finance Documents

4

6

Further Assurance

10

7

Fees

10

8

Costs and Expenses

10

9

Notices

10

10

Counterparts

10

11

Governing Law

11

12

Enforcement

11

Schedules

Schedule 1 The Lenders and commitments

12

Schedule 2 Effective Date Certificate

13

Execution

Execution Pages

14

THIS AGREEMENT

is made on ___ July 2021

PARTIES

(1)

KNOX SHIPPING COMPANY INC

.,

BOKAK SHIPPING COMPANY INC.

,

JEMO SHIPPING COMPANY INC.

,

GUAM SHIPPING COMPANY INC.

,

PALAU SHIPPING COMPANY INC.

,

MAKUR SHIPPING COMPANY INC.,

MANDARINGINA INC.

, each a corporation incorporated in the Republic of the Marshall Islands whose registered

office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall Islands MH96960, as joint

and several borrowers (together, the "

Borrowers

" and each a "

Borrower

");

(2)

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1, as lenders (the "

Lenders

");

(3)

NORDEA BANK ABP

as swap bank (the "

Swap Bank

");

(4)

NORDEA BANK ABP, FILIAL I NORGE

 as agent (the "

Agent

");

(5)

NORDEA BANK ABP, FILIAL I NORGE

 as lead arranger (the "

Lead Arranger

"); and

(6)

NORDEA BANK ABP, FILIAL I NORGE

as security trustee (the "

Security Trustee

").

BACKGROUND

(A) By the Loan Agreement, the Lenders have made available to the Borrowers a facility of (originally) up to $55,848,000

for the purpose of re-financing existing indebtedness secured on the Ships of which $46,540,000 is outstanding at

the date of this Agreement.

(B) The Borrowers have requested that the Creditor Parties agree to, inter alia:

(i) the increase of the Loan by an amount of up to $460,000 to be made available to the Borrowers for working

capital purposes and following the drawdown of such additional advance the outstanding amount of the

Loan shall not exceed $47,000,000; and

(ii) the extension of the Final Maturity Date to 19 March 2024,

together, the "

Requests

".

(C) This Agreement sets out the terms and conditions on which the Lenders and the other Creditor Parties agree, with

effect on and from the Effective Date, at the request of the Borrowers, to:

(i) the Requests; and

(ii) the consequential amendment of the Loan Agreement and the other Finance Documents in connection with

those matters (the "

Consequential Amendments

").

OPERATIVE PROVISIONS

1 DEFINITIONS AND INTERPRETATION

1.1 Definitions

In this Agreement:

"

Effective Date

" means the date on which the conditions precedent in Clause 3.2 are satisfied as confirmed by the

Effective Date Certificate.

"

Effective Date Certificate

" means a certificate executed by the Lender in the form set out in Schedule 2.

"

Loan Agreement

" means the Loan Agreement dated 7 May 2020 (as the same is amended or supplemented or

restated from time to time) and made between, amongst others, (i) the Borrowers, (ii) the Lenders, (iii) Swap Bank,

(iv) the Agent, (v) the Lead Arranger and (viii) the Security Trustee .

"

Mortgage Addendum

" means, in relation to each Remaining Ship, an addendum to the Mortgage in respect

thereof in agreed form.

"

Remaining Ships

" means each of Ship A, Ship B, Ship C, Ship D, Ship E, Ship F and Ship G.

"

Supplemental General Assignment

" means, in relation to each General Assignment, a document executed or to

be executed by the relevant Borrower and the Security Trustee, supplementing that General Assignment.

"

Supplemental Master Agreement Assignment

" means a document executed or to be executed by the Borrowers

and the Security Trustee, supplementing the Master Agreement Assignment.

"

Supplemental Security Documents

" means together:

(a) the Supplemental General Assignments;

(b) the Supplemental Master Agreement Assignment; and

(c) the Supplemental Shares Pledges.

"

Supplemental Shares Pledge

" means, in relation to each Shares Pledge, a document executed or to be executed

by the Corporate Guarantor and the Security Trustee, supplementing that Shares Pledge.

1.2 Defined expressions

Defined expressions in the Loan Agreement and the other Finance Documents shall have the same meanings when

used in this Agreement unless the context otherwise requires or unless otherwise defined in this Agreement.

1.3 Application of construction and interpretation provisions of Loan Agreement

Clause 1.2 (

Construction of certain terms

) of the Loan Agreement applies to this Agreement as if it were expressly

incorporated in it with any necessary modifications.

1.4 Designation as a Finance Document

The Borrowers and the Agent designate this Agreement as a Finance Document.

1.5 Third party rights

Unless provided to the contrary in a Finance Document, a person who is not a Party has no right under the Third

Parties Act to enforce or to enjoy the benefit of any term of this Agreement.

2 AGREEMENT OF THE CREDITOR PARTIES

2.1 Agreement of the Creditor Parties

The Creditor Parties agree, subject to and upon the terms and conditions of this Agreement, to:

(a) the Requests; and

(b) the Consequential Amendments.

2.2 Effective Date

The agreement of the Lenders and the other Creditor Parties contained in Clause 2.1 (

Agreement of the Creditor

Parties

) shall have effect on and from the Effective Date.

3 CONDITIONS PRECEDENT AND SUBSEQUENT

3.1 General

The agreement of the Lenders and the other Creditor Parties contained in Clauses 2.1 is subject to the fulfilment of

the conditions precedent in Clause 3.2.

3.2 Conditions precedent

The conditions referred to in Clause 3.1 are that the Agent shall have received the following documents and

evidence in all respects in form and substance satisfactory to the Agent and its lawyers on or before the Effective

Date:

(a) a certificate from each of the Borrowers confirming the names of all the officers, directors and shareholders of that

Borrower and confirming that there have been no changes or amendments to the constitutional documents which

were previously delivered to the Agent;

(b) true and complete copies of the resolutions passed at separate meetings of all the directors and shareholders of

each of the Borrowers authorising and approving the execution of this Agreement;

(c) the original of any power of attorney issued by each of Borrowers pursuant to such resolutions aforesaid;

(d) evidence satisfactory to the Agent that each of the Borrowers, the Corporate Guarantor and the Approved Manager

is currently existing in goodstanding in the relevant jurisdiction of its incorporation;

(e) a duly executed original of this Agreement signed by the parties to it and countersigned by the Corporate Guarantor

and the Approved Manager;

(f) a duly executed original of each Mortgage Addendum together with documentary evidence that that Mortgage

Addendum has been duly registered as a valid addendum to the Mortgage in respect of the relevant Remaining

Ship in accordance with the laws of the jurisdiction of its Approved Flag;

(g) a duly executed original of each Supplemental Security Document (and any other document required thereunder);

(h) documentary evidence that the agent for service of process named in clause 32.4 (

Process agent

) of the Loan

Agreement has accepted its appointment under this Agreement;

(i) favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of the Marshall

Islands and such other relevant jurisdiction as the Agent may require;

(j) evidence that the fees, costs and expenses then due from the Borrowers pursuant to Clause 7 (

Fees

) and clause

20.4 (

Costs of variations, amendments, enforcement etc.

) of the Loan Agreement have been paid; and

(k) any other document or evidence as the Agent may request in writing from the Borrowers.

3.3 Conditions subsequent

The Borrowers undertake to deliver to the Agent by the end of February 2022 evidence that the Borrowers and the

Corporate Guarantor are in compliance with the Republic of the Marshall Islands Economic Substance Regulations

2018.

4 REPRESENTATIONS

4.1 Repetition Loan Agreement representations

Each Borrower makes the representations and warranties set out in clause 10 (

Representations and warranties

) of

the Loan Agreement, as amended and supplemented by this Agreement and updated with appropriate modifications

to refer to this Agreement and, where appropriate, the relevant Mortgage Addendum, and by reference to the

circumstances then existing on the date of this Agreement and on the Effective Date.

4.2 Finance Document representations

Each Borrower and each of the Security Parties makes the representations and warranties set out in the Finance

Documents (other than the Loan Agreement) to which it is a party, as amended and supplemented by this

Agreement and updated with appropriate modifications to refer to this Agreement and, where appropriate, the

relevant Mortgage Addendum, by reference to the circumstances then existing on the date of this Agreement and

on the Effective Date.

5 AMENDMENTS TO LOAN AGREEMENT AND OTHER FINANCE DOCUMENTS

5.1 Specific amendments to the Loan Agreement

With effect on and from the Effective Date the Loan Agreement shall be, and shall be deemed by this Agreement

to be, amended as follows:

(a) by deleting the wording "relating to a term loan facility of up to US$55,848,000 to re-finance existing indebtedness"

in the cover page of the Loan Agreement and replacing it with the wording "relating to a term loan facility of

(originally) up to US$55,848,000 to re-finance existing indebtedness and an additional amount of US$460,000 to

provide working capital";

(b) by deleting recital (A) of the Loan Agreement and replacing it with the following new recital (A):

"(A) The Lenders have agreed to make available to the Borrowers a term loan facility in up to two Advances as

follows:

(i) Advance A, in an amount of up to the lesser of (i) US$55,848,000, (ii) the Existing Indebtedness

and (ii) 65 per cent. of the aggregate Initial Market Value of the Ships for the purpose of re-financing

the Existing Indebtedness (as defined below); and

(ii) pursuant to the terms of the Supplemental Agreement, Advance B, in an amount of up to U$460,000

for the purposes of providing the Borrowers with working capital ";

(c) by inserting in clause 1.1 (

Definitions

) of the Loan Agreement the following new definitions:

"

Advance

" means the principal amount of each borrowing by the Borrowers under this Agreement and includes

each of Advance A and Advance B or, as the context may require, the principal amount thereof outstanding at any

relevant time;

"

Advance A

" means the part of the Loan made available to the Borrowers in accordance with Clause 2.1(a) in

amount of up to $55,848,000 for the purpose of refinancing the Existing Indebtedness;

"

Advance B

" means the part of the Loan made or to be made available to the Borrowers in accordance with Clause

2.1(b) in amount of up to $460,000 for the purpose of providing working capital to Borrowers;

"

Availability Period

" means in relation to:

(a) Advance A, 11 May 2020; and

(b) Advance B, ___ August 2021;

"

Supplemental Agreement

" means the supplemental agreement to this Agreement dated ___ July 2021 and made

between (i) the Borrowers, (ii) the Lender, (iii) Swap Bank, (iv) the Agent, (v) the Security Trustee and (vi) the Lead

Arranger;

(d) by deleting the definitions of "Extension Request", "Initial Extension Request", "Subsequent Extension Request " in

their entirety and all references throughout;

(e) by deleting the definition of "Drawdown Date" and replacing it with the following new definition:

""

Drawdown Date

" means, in relation to an Advance, the date requested by the Borrowers for the Advance to be

made, or (as the context requires) the date on which the Advance is actually made;";

(f) by deleting the definition of "Final Maturity Date" and replacing it with the following new definition:

""

Final Maturity Date

" means 19 March 2024.";

(g) by deleting the definition of "Majority Lenders" and replacing it with the following new definition:

""

Majority Lenders

" means:

(a) before an Advance has been advanced, Lenders whose Commitments total 66.67 per cent. of the Total

Commitments; and

(b) after an Advance has been advanced, Lenders whose Contributions total 66.67 per cent. of the Loan.";

(h) by deleting clause 2.1 (

Amount of facility

) of the Loan Agreement and replacing it with the following new clause 2.1:

"

2.1 Amount of facility

Subject to the other provisions of this Agreement, the Lenders:

(a) have made available to the Borrowers, Advance A on 11 May 2020 for the purpose of refinancing the

Existing Indebtedness; and

(b) shall make available to the Borrowers, Advance B for the purpose of providing working capital.";

(i) by deleting clause 2.2 (

Lenders' participation in Advances

) of the Loan Agreement and replacing it with the following

new clause 2.2:

"

2.2 Lenders' participation in Advances

Subject to the other provisions of this Agreement, each Lender shall participate in each Advance in the

proportion which, as at the relevant Drawdown Date, its Commitment bears to the Total Commitments.";

(j) by deleting clause 2.3 (

Purpose of Advances

) of the Loan Agreement and replacing it with the following new clause

2.3:

"

2.2 Purpose of Advances

The Borrowers undertake with each Creditor Party to use each Advance only for the purpose stated in the

preamble to this Agreement and in Clause 2.1.";

(k) by deleting clause 4.1 (

Request of the Loan

) of the Loan Agreement and replacing it with the following new clause

4.1:

"

4.1 Request for Advance

Subject to the following conditions, the Borrowers may request an Advance to be made by ensuring that

the Agent receives a completed Drawdown Notice not later than 11.00 a.m. (Oslo time) 3 Business Days

(or such shorter period as the Agent may, in its absolute discretion, agree) prior to the intended Drawdown

Date.";

(l) by deleting clause 4.2 (

Availability

) of the Loan Agreement and replacing it with the following new clause 4.2:

"

4.2 Availability

The conditions referred to in Clause 4.1 are that:

(a) the Drawdown Date in relation to an Advance has to be a Business Day during the Availability Period;

(b) each Advance shall not exceed the amount applicable thereto referred to in Clause 2.1 and shall be used

for the purpose referred to therein; and

(c) the aggregate amount of the Advances shall not exceed the Total Commitments.";

(m) by deleting clause 4.3 (

Notification to Lenders of receipt of a Drawdown Notice

) of the Loan Agreement and

replacing it with the following new clause 4.3:

"

4.3 Notification to Lenders of receipt of a Drawdown Notice

The Agent shall promptly notify the Lenders that it has received a Drawdown Notice and shall inform each

Lender of:

(a) the amount of the Advance and the Drawdown Date;

(b) the amount of that Lender's participation in the Advance; and

(c) the duration of the first Interest Period.";

(n) by deleting clause 5.9 (

Suspension of drawdown

) of the Loan Agreement and replacing it with the following new

clause 5.9:

"

5.9 Suspension of drawdown

If the Agent's notice under Clause 5.8 is served before an Advance is made:

(a) in a case falling within Clauses 5.7(a) or 5.7(b), the Lenders ' obligations to make the Advance; and

(b) in a case falling within Clause 5.7, the Affected Lender's obligation to participate in the Advance,

shall be suspended while the circumstances referred to in the Agent's notice continue.";

(o) by deleting clause 5.10 (

Negotiation of alternative rate of interest

) of the Loan Agreement and replacing it with the

following new clause 5.10:

"

5.10 Negotiation of alternative rate of interest

If the Agent's notice under Clause 5.5 is served after an Advance is made, then subject to Clause 27.4, the

Borrowers, the Agent, the Lenders or (as the case may be) the Affected Lender shall use reasonable

endeavours to agree, within 30 days after the date on which the Agent serves its notice under Clause 5.5

(the "

Negotiation Period

"), an alternative interest rate or (as the case may be) an alternative basis for the

Lenders or (as the case may be) the Affected Lender to fund or continue to fund their or its Contribution

during the Interest Period concerned.";

(p) by deleting clause 6.1 (

Commencement of Interest Periods

) of the Loan Agreement and replacing it with the

following new clause 6.1:

"

6.1

Commencement of Interest Periods

The first Interest Period applicable to an Advance shall commence on the Drawdown Date of that Advance

and each subsequent Interest Period shall commence on the expiry of the preceding Interest Period.";

(q) by deleting clause 8.1 (

Amount of repayment instalments

) of the Loan Agreement and replacing it with the following

new clause 8.1:

"

8.1 Amount of repayment instalments

Save as previously repaid or prepaid, the Borrowers shall repay the Loan by:

(A) 11 equal consecutive three-monthly instalments each in an amount equal to $1,861,600; and

(B) a balloon instalment in an amount equal to $26,522,400.";

(r) by deleting clause 8.2 (

Repayment Dates

) of the Loan Agreement and replacing it with the following new clause

8.2:

"

8.2 Repayment Dates

The first Repayment Instalment for the Loan shall be repaid on 19 September 2021, each subsequent

Repayment Instalment shall be repaid at three-monthly intervals thereafter and the last Repayment

Instalment together with the Balloon Instalment shall be repaid on the Final Maturity Date."

(s) by deleting clause 8.3 (

Extension of Final Maturity Date

) of the Loan Agreement in its entirety;

(t) by deleting in Schedule 1 (

Lenders and Commitments

) of the Loan Agreement “$55,848,000” in its entirety and

replacing it with “$56,308,000 (of which the amount of $55,848,000 has been drawn on 11 May 2020 and an

additional amount of $460,000 is available on the date of the Supplemental Agreement)”;

(u) by deleting Schedule 2 (

Drawdown Notice

) of the Loan Agreement in its entirety and replacing it with the following:

“

SCHEDULE 2

DRAWDOWN NOTICE

To: Nordea Bank Abp, filial i Norge

Essendrops gate 7, Postboks

1166 Sentrum, 0107 Oslo

920058817 MVA, Norway

Attention: [Loans Administration]

[

•

] 2020

DRAWDOWN NOTICE

1 We refer to the loan agreement (the "

Loan Agreement

") dated [

•

] 2020 and made between ourselves, as joint and

several Borrowers, the Lenders referred to therein, and yourselves as Agent, as Security Trustee, as Lead Arranger

and as Swap Bank in connection with a facility of up to (originally) US$55,848,000. Terms defined in the Loan

Agreement have their defined meanings when used in this Drawdown Notice.

2 We request to borrow as follows:

(a) Amount of [Advance A][Advance B]: US$[55,848,000][460,000];

(b) Drawdown Date: [11 May 2020] [[•] 2021];

(c) [Duration of the first Interest Period shall be [1][3] months;] and

(d) Payment instructions: account in our name and numbered [•] with [•] of [•].

3 We represent and warrant that:

(a) the representations and warranties in clause 10 of the Loan Agreement would remain true and not misleading if

repeated on the date of this notice with reference to the circumstances now existing; and

(b) no Event of Default or Potential Event of Default has occurred or will result from the borrowing of the Loan.

4 This notice cannot be revoked without the prior consent of the Majority Lenders.

[Name of Signatory]

Director

for and on behalf of

KNOX SHIPPING COMPANY INC.

BOKAK SHIPPING COMPANY INC.

JEMO SHIPPING COMPANY INC.

GUAM SHIPING COMPANY INC.

PALAU SHIPPING COMPANY INC.

MAKUR SHIPPING COMPANY INC.

and

MANDARINGINA INC.

 ";

(v) by construing the definition of, and references throughout to, each Finance Document as if the same referred to

that Finance Document as amended and supplemented by this Agreement; and

(w) by construing references throughout to "this Agreement" and other like expressions as if the same referred to the

Loan Agreement as amended and supplemented by this Agreement.

5.2 Amendments to Finance Documents

With effect on and from the Effective Date each of the Finance Documents (other than the Loan Agreement and

each Mortgage which is amended and supplemented by the relevant Mortgage Addendum), shall be, and shall be

deemed by this Agreement to be, amended as follows:

(a) by substituting in the Finance Documents references “$55,848,000” with references to “an amount of (originally) up

to US$55,848,000 to re-finance existing indebtedness and an additional amount of US$460,000 to provide working

capital”;

(b) the definition of, and references throughout each of the Finance Documents to, the Loan Agreement and any of the

other Finance Documents shall be construed as if the same referred to the Loan Agreement and those Finance

Documents as amended and supplemented by this Agreement ;

(c) the definition of, and references throughout each of the Finance Documents to, a Mortgage shall be construed as

if the same referred to that Mortgage as amended and supplemented by the relevant Mortgage Addendum; and

(d) by construing references throughout each of the Finance Documents to "this Agreement", "this Deed" and other like

expressions as if the same referred to such Finance Documents as amended and supplemented by this Agreement.

5.3 Finance Documents to remain in full force and effect

The Finance Documents shall remain in full force and effect as amended and supplemented by:

(a) the amendments to the Finance Documents contained or referred to in Clause 5.1 (

Specific amendments to the

Loan Agreement

) and Clause 5.2 (

Amendments to Finance Documents

); and

(b) such further or consequential modifications as may be necessary to give full effect to the terms of this Agreement.

6 FURTHER ASSURANCE

6.1 Borrowers' and each Security Party's obligation to execute further documents etc.

The Borrowers and each Security Party shall:

(a) execute and deliver to the Security Trustee (or as it may direct) any assignment, mortgage, power of attorney, proxy

or other document, governed by the law of England or such other country as the Security Trustee may, in any

particular case, specify;

(b) effect any registration or notarisation, give any notice or take any other step,

which the Agent may, by notice to the Borrowers, specify for any of the purposes described in Clause 6.2 or for any

similar or related purpose.

6.2 Purposes of further assurances

Those purposes are:

(a) validly and effectively to create any Security Interest or right of any kind which the Agent intended should be created

by or pursuant to the Loan Agreement or any other Finance Document, each as amended and supplemented by

this Agreement, and

(b) implementing the terms and provisions of this Agreement.

6.3 Terms of further assurances

The Security Trustee may specify the terms of any document to be executed by the Borrowers or any Security Party

under Clause 6.1, and those terms may include any covenants, powers and provisions which the Security Trustee

considers appropriate to protect its interests.

6.4 Obligation to comply with notice

Each Borrower or any Security Party shall comply with a notice under Clause 6.1 by the date specified in the notice.

7 FEES

The Borrowers shall pay to the Agent on or before the date of this Agreement an amendment fee of $141,000 .

8 COSTS AND EXPENSES

Clause 20.4 (

Costs of variations, amendments, enforcement etc.

) of the Loan Agreement, as amended and

supplemented by this Agreement, applies to this Agreement as if it were expressly incorporated in it with any

necessary modifications.

9 NOTICES

Clause 28 (

Notices

) of the Loan Agreement, as amended and supplemented by this Agreement, applies to this

Agreement as if it were expressly incorporated in it with any necessary modifications.

10 COUNTERPARTS

This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures

on the counterparts were on a single copy of this Agreement.

11 GOVERNING LAW

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English

law.

12 ENFORCEMENT

12.1 Jurisdiction

(a) The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this

Agreement (including a dispute regarding the existence, validity or termination of this Agreement or any non-

contractual obligation arising out of or in connection with this Agreement) (a "

Dispute

").

(b) The Security Parties accept that the courts of England are the most appropriate and convenient courts to settle

Disputes and accordingly no Security Party will argue to the contrary.

(c) This Clause 12.1 (

Jurisdiction

) is for the benefit of the Creditor Parties only. As a result, no Secured Party shall be

prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed

by law, the Creditor Parties may take concurrent proceedings in any number of jurisdictions.

12.2 Service of process

(a) Without prejudice to any other mode of service allowed under any relevant law, each Security Party:

(i) irrevocably appoints Hill Dickinson Services (London) Ltd, at its registered office for the time being,

presently at 7 Duke’s Place, London EC3A 7LP, England as its agent for service of process in relation to

any proceedings before the English courts in connection with any Finance Document; and

(ii) agrees that failure by a process agent to notify the relevant Security Party of the process will not invalidate

the proceedings concerned.

(b) If any person appointed as an agent for service of process is unable for any reason to act as agent for service of

process, the Borrowers (on behalf of all the Security Parties) must immediately (and in any event within five days

of such event taking place) appoint another agent on terms acceptable to the Agent. Failing this, the Agent may

appoint another agent for this purpose.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

SCHEDULE 1

THE LENDERS AND COMMITMENTS

Lender

Lending Office

Commitment

(US Dollars)

Nordea Bank Abp,

filial i Norge

Essendrops gate 7, Postboks

1166 Sentrum, 0107 Oslo

920058817 MVA

Norway

$56,308,000 (of which the amount of

$55,848,000 has been drawn on 11 May

2020 and an additional amount of

$460,000 is available on the date of the

Supplemental Agreement)

SCHEDULE 2

EFFECTIVE DATE CERTIFICATE

To:

KNOX SHIPPING COMPANY INC.

BOKAK SHIPPING COMPANY INC.

JEMO SHIPPING COMPANY INC.

GUAM SHIPING COMPANY INC.

PALAU SHIPPING COMPANY INC.

MAKUR SHIPPING COMPANY INC.

MANDARINGINA INC.

[●] 2021

Loan Agreement dated 7 May 2020 (as amended and supplemented, the "Loan Agreement") and made between (i)

KNOX SHIPPING COMPANY INC

.,

BOKAK SHIPPING COMPANY INC.

,

JEMO SHIPPING COMPANY INC.

,

GUAM

SHIPPING COMPANY INC.

,

PALAU SHIPPING COMPANY INC.

,

MAKUR SHIPPING COMPANY INC. and

MANDARINGINA INC., as joint and several borrowers, (ii) the banks and financial institutions listed in schedule 1

thereto as lenders, (iii) NORDEA BANK ABP as swap bank and (iv) ourselves as agent, security trustee and lead

arranger in respect of a loan facility of (originally) up to US$55,848,000

Dear Sirs,

We refer to the supplemental agreement dated [●] July 2021 (the "

Supplemental Agreement

") relating to the Loan

Agreement.

Words and expressions defined in the Loan Agreement shall have the same meanings when used herein.

We hereby confirm that all conditions precedent referred to in Clause 3.2 of Supplemental Agreement have been satisfied

[save for as described below which shall be satisfied within 5 Business Days of the date of this confirmation]. In accordance

with Clause 3.2 of the Supplemental Agreement the Effective Date is the date of this certificate.

[Outstanding Conditions Precedent: [●]]

for and on behalf of

NORDEA BANK ABP, FILIAL I NORGE

EXECUTION PAGES

BORROWERS

SIGNED

 by

)

duly authorised

)

for and on behalf of

)

KNOX SHIPPING COMPANY INC.

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

SIGNED

 by

)

duly authorised

)

for and on behalf of

)

BOKAK SHIPPING COMPANY INC.

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

SIGNED

 by

)

duly authorised

)

for and on behalf of

)

JEMO SHIPPING COMPANY INC.

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

SIGNED

 by

)

duly authorised

)

for and on behalf of

)

GUAM SHIPING COMPANY INC.

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

SIGNED

 by

)

duly authorised

)

for and on behalf of

)

PALAU SHIPPING COMPANY INC.

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

SIGNED

 by

)

duly authorised

)

for and on behalf of

)

MAKUR SHIPPING COMPANY INC.

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

SIGNED

 by

)

duly authorised

)

for and on behalf of

)

MANDARINGINA INC.

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

LENDERS

SIGNED

 by

)

)

duly authorised

)

for and on behalf of

)

NORDEA BANK ABP, FILIAL I NORGE

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

THE SWAP BANK

SIGNED

 by

)

)

duly authorised

)

for and on behalf of

)

NORDEA BANK ABP

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

THE AGENT

SIGNED

 by

)

)

duly authorised

)

for and on behalf of

)

NORDEA BANK ABP, FILIAL I NORGE

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

THE SECURITY TRUSTEE

SIGNED

 by

)

)

duly authorised

)

for and on behalf of

)

NORDEA BANK ABP, FILIAL I NORGE

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

LEAD ARRANGER

SIGNED

 by

)

)

duly authorised

)

for and on behalf of

)

NORDEA BANK ABP, FILIAL I NORGE

)

in the presence of:

)

Witness' signature:

)

Witness' name:

)

Witness' address:

)

COUNTERSIGNED

 this day ____ July 2021 for and on behalf of each of the following Security Parties which, by its

execution hereof, confirms and acknowledges that it has read and understood the terms and conditions of this Agreement,

that it agrees in all respects to the same and that the Finance Documents to which it is a party shall remain in full force and

effect and shall continue to stand as security for the obligations of the Borrowers under the Loan Agreement and the other

Finance Documents (each as amended and supplemented by this Agreement).

for and on behalf of

Diana Shipping Services S.A.

as Approved Manager

for and on behalf of

Diana Shipping Inc.

as Corporate Guarantor

EX-4.46

Exhibit 4.46

Dated September 2022

MANRA SHIPPING COMPANY INC.

JABWOT SHIPPING COMPANY INC.

ARORAE SHIPPING COMPANY INC.

TAMANA SHIPPING COMPANY INC.

BERU SHIPPING COMPANY INC.

BONRIKI SHIPPING COMPANY INC.

EJITE SHIPPING COMPANY INC.

TAONGI SHIPPING COMPANY INC.

NAMORIK SHIPPING COMPANY INC.

as joint and several Borrowers

and

THE BANKS AND FINANCIAL INSTITUTIONS

as Lenders

and

NORDEA BANK ABP

as Swap Bank

and

NORDEA BANK ABP, FILIAL I NORGE

listed in Schedule 1

as Agent, Bookrunner, Security Trustee and Lead Arranger

LOAN AGREEMENT

relating to

relating to a term loan facility of up to $200,000,000 

Index

Clause Page

Schedules

Execution

THIS AGREEMENT

is made on September 2022

PARTIES

(1)

MANRA SHIPPING COMPANY INC., JABWOT SHIPPING COMPANY INC., ARORAE SHIPPING

COMPANY INC., TAMANA SHIPPING COMPANY INC., BERU SHIPPING COMPANY INC.,

BONRIKI SHIPPING COMPANY INC., EJITE SHIPPING COMPANY INC., TAONGI SHIPPING

COMPANY INC.

and

NAMORIK SHIPPING COMPANY INC.

, as joint and several borrowers

(together, the "

Borrowers

")

(2)

THE BANKS AND FINANCIAL INSTITUTIONS

listed in

, as Lenders

(3)

NORDEA BANK ABP,

as Swap Bank

(4)

NORDEA BANK ABP, FILIAL I NORGE,

as Agent

(5)

NORDEA BANK ABP, FILIAL I NORGE,

as Bookrunner

(6)

NORDEA BANK ABP, FILIAL I NORGE,

as Lead Arranger

(7)

NORDEA BANK ABP, FILIAL I NORGE,

as Security Trustee

BACKGROUND

(A) The Lenders have agreed to make available to the Borrowers a term loan facility of up to the

lesser of (i) $200,000,000 representing approximately 60 per cent. of the Purchase Price of the

Ships and (ii) 67.5 per cent. of the Initial Market Value of the Ships, for the purpose of financing

part of the Ships' acquisition cost and for general corporate and working capital purposes.

(B) The Swap Bank has agreed to enter into interest rate swap transactions with the Borrowers

from time to time to hedge the Borrowers' exposure under this Agreement to interest rate

fluctuations.

(C) The Lenders and the Swap Bank have agreed to share pari passu in the security to be granted

to the Security Trustee pursuant to this Agreement.

OPERATIVE PROVISIONS

1 INTERPRETATION 

1.1 Definitions

Subject to Clause

 (

General interpretation

), in this Agreement:

"

Accounts Pledges

" means, together, the Earnings Account Pledges in the Agreed Form and,

in the singular, means any of them.

"

Advance

" means the principal amount of each borrowing by the Borrowers under this

Agreement. 

"

Agency and Trust Deed

" means the agency and trust deed dated the same date as this

Agreement and made between the same parties.

"

Agent

" means Nordea Bank Abp, filial i Norge, acting in such capacity through its office at

Essendrops gate 7, Postboks 1166, Sentrum, 0107 Oslo, 920058817 MVA, Norway, or any

successor of it appointed under clause 5 of the Agency and Trust Deed.

"

Agreed Form

" means in relation to any document, that document in the form approved in

writing by the Agent (acting on the instructions of all the Lenders) or as otherwise approved in

accordance with any other approval procedure specified in any relevant provision of any

Finance Document.

"

Annex VI

" means Annex VI of the Protocol of 1997 to amend the International Convention for

the Prevention of Pollution from Ships 1973 (Marpol), as modified by the Protocol of 1978

relating thereto.

"

Arorae

" means Arorae Shipping Company Inc., a corporation incorporated in the Republic of

the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Approved Broker

" means Arrow Sale & Purchase (UK) Limited, Breamar Seascope Limited, H.

Clarkson & Company Limited, Fearnleys AS, Maersk Brokers K.S., Simpson Spence & Young

(London) Ltd. and VesselsValue.Com or any other any reputable sale and purchase broker

approved and appointed by the Agent subject to the prior written consent of the Borrowers.

"

Approved Flag

" means the Marshall Islands flag or any other flag that the Agent may approve

that the Ship is registered (such approval not to be unreasonably withheld or delayed). 

"

Approved Flag State

" means the Republic of the Marshall Islands or any other state in which

the Agent may, at the request of the Borrowers, approve that a Ship is registered (such

approval not to be unreasonably withheld or delayed).

"

Approved Manager

" means, in relation to each Ship: 

(a) Diana Shipping Services S.A., a company incorporated and existing under the laws of

Panama having its registered office at Edificio Universal, Piso 12, Avenida Federico

Boyd, Panama, Republic of Panama and maintaining an office at 16 Pendelis Street,

175 64, Palaio Faliro, Greece; or

(b) in relation to any Ship in respect of which the relevant Borrower exercises its rights

under Clause

 (

Change of Approved Manager

), Diana Wilhelmsen Management

Limited, a company incorporated and existing under the laws of the Republic of Cyprus

having its registered office at 21 Vasili Michailidi Street, 3026 Limassol, Cyprus and

maintaining an office at 350 Syngrou Avenue, Kalithea, Greece; or

(c) any other company which the Agent may, with the authorisation of the Lenders,

approve from time to time as the technical and/or commercial manager of each Ship

(such approval not to be unreasonably withheld or delayed).

"

Article 55 BRRD

" means Article 55 of Directive 2014/59/EU establishing a framework for the

recovery and resolution of credit institutions and investment firms.

"

Availability Period

" means the period commencing on the date of this Agreement and ending

on:

(a) 31 December 2022 (or such later date as the Agent may, with the authorisation of the

Lenders, agree with the Borrowers); or

(b) if earlier, the date on which the Total Commitments are fully borrowed, cancelled or

terminated.

"

Bail-In Action

" means the exercise of any Write-down and Conversion Powers.

"

Bail-In Legislation

" means:

(a) in relation to an EEA Member Country which has implemented, or which at any time

implements, Article 55 BRRD, the relevant implementing law or regulation as

described in the EU Bail-In Legislation Schedule from time to time; 

(b) in relation to any state other than such an EEA Member Country and the United

Kingdom, any analogous law or regulation from time to time which requires

contractual recognition of any Write -down and Conversion Powers contained in that

law or regulation; and

in relation to the United Kingdom, the UK Bail-In Legislation.

"

Balloon Instalment

" means any balloon instalment referred to in Clause

 (

Amount of

repayment instalments

).

"

Basel III

" means, together:

(a) the agreements on capital requirements, a leverage ratio and liquidity standards

contained in "Basel III: A global regulatory framework for more resilient banks and

banking systems", "Basel III: International framework for liquidity risk measurement,

standards and monitoring" and "Guidance for national authorities operating the

countercyclical capital buffer" published by the Basel Committee on Banking

Supervision in December 2010, each as amended, supplemented or restated;

(b) the rules for global systemically important banks contained in "Global systemically

important banks: assessment methodology and the additional loss absorbency

requirement - Rules text" published by the Basel Committee on Banking Supervision

in November 2011, as amended, supplemented or restated; and

(c) any further guidance or standards published by the Basel Committee on Banking

Supervision relating to "Basel III".

"

Beru

" means Beru Shipping Company Inc., a corporation incorporated in the Republic of the

Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Bonriki

" means Bonriki Shipping Company Inc., a corporation incorporated in the Republic of

the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Bookrunner

" means Nordea Bank Abp, filial i Norge, acting in such capacity through its office

at Essendrops gate 7, Postboks 1166, Sentrum, 0107 Oslo, 920058817 MVA, Norway. 

"

Borrower

" means each of Manra, Jabwot, Arorae, Tamana, Beru, Bonriki, Ejite, Taongi and

Namorik and in the plural means, all of them.

"

Break Costs

" means the amount (if any) by which:

(a) the interest which a Lender should have received for the period from the date of

receipt of all or any part of its participation in the Loan or an Unpaid Sum to the last

day of the current Interest Period in relation to the Loan, the relevant part of the Loan

or that Unpaid Sum, had the principal amount or Unpaid Sum received been paid on

the last day of that Interest Period

exceeds

(b) the amount which that Lender would be able to obtain by placing an amount equal to

the principal amount or Unpaid Sum received by it on deposit with a leading bank for

a period starting on the Business Day following receipt or recovery and ending on the

last day of the current Interest Period.

"

Business Day

" means a day (other than a Saturday or Sunday) on which banks are open for

general business in London, Athens and Oslo; and

(a) New York; and

(b) (in relation to the fixing of an interest rate) which is a US Government Securities

Business Day.

"

Change of Control

" means the occurrence of any of the following acts, events or

circumstances: 

(a) a change in the ownership of any Borrower from the date of this Agreement resulting

in such Borrower not being a direct or indirect wholly-owned subsidiary of the

Corporate Guarantor; and/or

(b) any person (other than any financial institution acting as a passive investor) becomes

at any time the legal or ultimate beneficial owner of a higher percentage of the total

issued share capital of the Corporate Guarantor than the percentage of the total

issued share capital of the Corporate Guarantor beneficially owned by any member or

members of the Palios Family; and/or

(c) Semiramis Paliou ceases to hold directorship position in the Corporate Guarantor and

active role in the decision making in respect of the Corporate Guarantor; and/or

(d) without the prior consent of the Agent, the shares of the Corporate Guarantor cease

to be listed on the New York Stock Exchange.

"

Charter

" means, in relation to each Ship, any time charter or other contract of employment

in respect of that Ship with a duration exceeding (or capable of exceeding) 24 months or any

bareboat charter in respect of such Ship and, in the plural, means all of them.

"

Charterer

" means any entity which has entered into, or will enter into, a Charter with a

Borrower in respect of the Ship owned by it.

"

Charterparty Assignment

" means, in relation to each Charter, a specific deed of assignment

of the rights of the Borrower who is a party to that Charter executed or to be executed by that

Borrower in favour of the Security Trustee in the Agreed Form and, in the plural, means all of

them.

"

Code

" means the US Internal Revenue Code of 1986.

"

Commitment

" means, in relation to a Lender, the amount set opposite its name in

, or, as

the case may require, the amount specified in the relevant Transfer Certificate, as that amount

may be reduced, cancelled or terminated in accordance with this Agreement (and "

Total

Commitments

" means the aggregate of the Commitments of all the Lenders).

"

Confirmation

" and "

Early Termination Date

", in relation to any continuing Designated

Transaction, have the meanings given in the Master Agreement.

"

Contractual Currency

" has the meaning given in Clause

 (

Currency indemnity

).

"

Contribution

" means, in relation to a Lender, the part of the Loan which is owing to that

Lender.

"

Corporate Guarantee

" means a corporate guarantee of the obligations of the Borrowers

under this Agreement, the Master Agreement and the other Finance Documents.

"

Corporate Guarantor

" mean Diana Shipping Inc., a corporation domesticated in the Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, Marshall Islands.

"

CRD IV

" means:

(a) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June

2013 on prudential requirements for credit institutions and investment firms and

amending regulation (EU) No. 648/2012, as amended by Regulation (EU) 2019/876;

(b) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013

on access to the activity of credit institutions and the prudential supervision of credit

institutions and investment firms, amending Directive 2002/87/EC and repealing

Directives 2006/48/EC and 2006/49/EC, as amended by Directive (EU) 2019/878; and

(c) any other law or regulation which implements Basel III.

"

Creditor Party

" means the Agent, the Lead Arranger, the Bookrunner, the Security Trustee,

the Swap Bank or any Lender, whether as at the date of this Agreement or at any later time.

"

Designated Transaction

" means a Transaction which fulfils the following requirements:

(a) it is entered into by the Borrowers pursuant to the Master Agreement with the Swap

Bank;

(b) its purpose is the hedging of all or part of the Borrowers ' exposure to fluctuations in

Term SOFR under this Agreement for a period expiring no later than the Termination

Date; and

(c) it is designated by the Borrowers, by delivery by the Borrowers to the Agent of a notice

of designation in the form set out in

 (

Designation Notice

), as a Designated

Transaction for the purposes of the Finance Documents.

"

Dollars

" and "

$

" means the lawful currency for the time being of the United States of America.

"

Drawdown Date

" means, in relation to an Advance, the date requested by the Borrowers for

the Advance to be made, or (as the context requires) the date on which the Advance is actually

made.

"

Drawdown Notice

" means a notice in the form set out in

 (

Drawdown Notice

) (or in any

other form which the Agent approves or reasonably requires).

"

Earnings

" means, in relation to a Ship, all moneys whatsoever which are now, or later

become, payable (actually or contingently) to the relevant Borrower owning that Ship or the

Security Trustee and which arise out of the use or operation of that Ship, including (but not

limited to):

(a) except to the extent that they fall within paragraph

(i) all freight, hire and passage moneys;

(ii) compensation payable to a Borrower or the Security Trustee in the event of

requisition of a Ship for hire;

(iii) remuneration for salvage and towage services;

(iv) demurrage and detention moneys;

(v) damages for breach (or payments for variation or termination) of any

charterparty or other contract for the employment of a Ship; and

(vi) all moneys which are at any time payable under any Insurances in respect of

loss of hire; and

(b) if and whenever a Ship is employed on terms whereby any moneys falling within

paragraphs

 to

 are pooled or shared with any other person, that proportion of the

net receipts of the relevant pooling or sharing arrangement which is attributable to

the Ship.

"

Earnings Account

" means an account in the name of each Borrower with the Agent

designated "[

name of the Borrower

] - Earnings Account", or any other account which is

designated by the Agent as an Earnings Account for the purposes of this Agreement.

"

Earnings Account Pledge

" means, in respect of each Earnings Account, a deed creating

security in the Agreed Form. 

"

EEA Member Country

" means any member state of the European Union, Iceland,

Liechtenstein and Norway.

"

Ejite

" means Ejite Shipping Company Inc., a corporation incorporated in the Republic of the

Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Environmental Claim

" means:

(a) any claim by any governmental, judicial or regulatory authority which arises out of an

Environmental Incident or an alleged Environmental Incident or which relates to any

Environmental Law; or

(b) any claim by any other person which relates to an Environmental Incident or to an

alleged Environmental Incident,

and "

claim

" means a claim for damages, compensation, fines, penalties or any other payment

of any kind whether or not similar to the foregoing; an order or direction to take, or not to

take, certain action or to desist from or suspend certain action; and any form of enforcement

or regulatory action, including the arrest or attachment of any asset.

"

Environmental Incident

" means:

(a) any release of Environmentally Sensitive Material from the Ship; or

(b) any incident in which Environmentally Sensitive Material is released from a vessel

other than a Ship and which involves a collision between a Ship and such other vessel

or some other incident of navigation or operation, in either case, in connection with

which a Ship is actually or potentially liable to be arrested, attached, detained or

injuncted and/or a Ship and/or the Borrower and/or any operator or manager of a Ship

is at fault or allegedly at fault or otherwise liable to any legal or administrative action;

or

(c) any other incident in which Environmentally Sensitive Material is released otherwise

than from a Ship and in connection with which a Ship is actually or potentially liable to

be arrested and/or where any Borrower and/or any operator or manager of a Ship is

at fault or allegedly at fault or otherwise liable to any legal or administrative action.

"

Environmental Law

" means any law relating to pollution or protection of the environment,

to the carriage of Environmentally Sensitive Material or to actual or threatened releases of

Environmentally Sensitive Material.

"

Environmentally Sensitive Material

" means oil, oil products and any other substance

(including any chemical, gas or other hazardous or noxious substance) which is (or is capable

of being or becoming) polluting, toxic or hazardous.

"

Escrow Agent

" means Reed Smith LLP of The Broadgate Tower, 20 Primrose Street, London

EC2A 2RS, United Kingdom.

"

Escrow Agreement

" means, in respect of each Ship, the escrow agreement dated 10 August

2022 entered into between (i) Sea Trade Holdings Inc., as original seller and (ii) the Corporate

Guarantor, as original buyer (as the same may be amended and/or supplemented from time

to time).

"

EU Bail-In Legislation Schedule

" means the document described as such and published by the

Loan Market Association (or any successor organisation) from time to time.

"

EU Ship Recycling Regulation

" means Regulation (EU) No 1257/2013 of the European

Parliament and of the Council of 20 November 2013 on ship recycling and amending Regulation

(EC) No 1013/2006 and Directive 2009/16/EC. 

"

Event of Default

" means any of the events or circumstances described in Clause

 (

Events of

Default

).

"

Executive Order

"

means an order issued by the president of the United States of America.

"

Facility Office

" means the office or offices notified by a Lender to the Agent in writing on or

before the date it becomes a Lender (or, following that date, by not less than five Business

Days' written notice) as the office or offices through which it will perform its obligations under

this Agreement.

"

Fallback Interest Period

" means one Month.

"

FATCA

"

means:

(a) sections 1471 to 1474 of the Code or any associated regulations;

(b) any treaty, law or regulation of any other jurisdiction, or relating to an

intergovernmental agreement between the US and any other jurisdiction, which (in

either case) facilitates the implementation of any law or regulation referred to in

paragraph

 above; or

(c) any agreement pursuant to the implementation of any treaty, law or regulation

referred to in paragraphs

 or

 above with the US Internal Revenue Service, the US

government or any governmental or taxation authority in any other jurisdiction.

"

FATCA Deduction

" means a deduction or withholding from a payment under a Finance

Document required by FATCA.

"

FATCA Exempt Party

" means a Party that is entitled to receive payments free from any FATCA

Deduction.

"

Finance Documents

" means: 

(a) this Agreement;

(b) the Agency and Trust Deed;

(c) the Master Agreement;

(d) the Master Agreement Assignment;

(e) the Corporate Guarantee;

(f) the General Assignments;

(g) the Mortgages;

(h) the Accounts Pledges;

(i) the Shares Pledges;

(j) the Manager's Undertakings; 

(k) any Charterparty Assignment; and

(l) any other document (whether creating a Security Interest or not) which is executed at

any time by any Borrower, the Corporate Guarantor, the Approved Manager or any

other person as security for, or to establish any form of subordination or priorities

arrangement in relation to, any amount payable to the Lenders and/or the Swap Bank

under this Agreement or any of the other documents referred to in this definition.

"

Financial Indebtedness

" means, in relation to a person (the "

debtor

"), a liability of the debtor: 

(a) for principal, interest or any other sum payable in respect of any moneys borrowed or

raised by the debtor; 

(b) under any loan stock, bond, note or other security issued by the debtor; 

(c) under any acceptance credit, guarantee or letter of credit facility or dematerialised

equivalent made available to the debtor; 

(d) under a financial lease, a deferred purchase consideration arrangement or any other

agreement having the commercial effect of a borrowing or raising of money by the

debtor; 

(e) under any foreign exchange transaction, any interest or currency swap or any other

kind of derivative transaction entered into by the debtor or, if the agreement under

which any such transaction is entered into requires netting of mutual liabilities, the

liability of the debtor for the net amount; or 

(f) under a guarantee, indemnity or similar obligation entered into by the debtor in

respect of a liability of another person which would fall within paragraphs

 to

 if the

references to the debtor referred to the other person.

"

Financial Year

" means, in relation to the Corporate Guarantor, each period of 1 year

commencing on 1 January in respect of which its annual audited accounts are or ought to be

prepared.

"

Fleet Vessels

" means all of the vessels (including, but not limited to, the Ships) from time to

time wholly owned by members of the Group (each a "

Fleet Vessel

").

"

Funding Rate

" means any individual rate notified by a Lender to the Agent pursuant to sub-

paragraph

 of paragraph

 of Clause

 (

Cost of funds

).

"

GAAP

" means, at any time, the most recent and updated generally accepted accounting

principles in the United States of America.

"

General Assignment

" means, in relation to each Ship, a first priority general assignment of

the Earnings, the Insurances and any Requisition Compensation in the Agreed Form and, in the

plural, means all of them.

"

Group

" means the Corporate Guarantor and all its subsidiaries (including, but not limited to,

the Borrowers) from time to time during the Security Period and "

member of the Group

" shall

be construed accordingly. 

"

Hong Kong Convention

" means the International Maritime Organization's convention for the

Safe and Environmentally Sound Recycling of Ships, 2009 together with the guidelines to be

issued by the International Maritime Organization in connection with such convention.

"

IACS

" means the International Association of Classification Societies. 

"

Initial Market Value

" means, in respect of a Ship, the Market Value as determined by the

valuations referred to in

, paragraph 6 of

 (

Conditions precedent documents

).

"

Insurances

" means, in relation to a Ship:

(a) all policies and contracts of insurance, including entries of the Ship in any protection

and indemnity or war risks association, effected in respect of the Ship, its Earnings or

otherwise in relation to the Ship whether before, on or after the date of this

Agreement; and 

(b) all rights and other assets relating to, or derived from, any of the foregoing, including

any rights to a return of a premium and any rights in respect of any claim whether or

not the relevant policy, contract of insurance or entry has expired on or before the

date of this Agreement.

"

Interest Period

" means, in relation to the Loan or any part of the Loan, each period

determined in accordance with Clause 6 (

Interest Periods

) and, in relation to an Unpaid Sum,

each period determined in accordance with Clause

 (

Default interest

).

"

Interpolated Term SOFR

" means, in relation to the Loan or any part of the Loan, the rate

(rounded to the same number of decimal places as Term SOFR) which results from

interpolating on a linear basis between:

(a) either

(i) the applicable Term SOFR (as of the Quotation Day) for the longest period (for

which Term SOFR is available) which is less than the Interest Period of the Loan

or that part of the Loan; or

(ii) if no such Term SOFR is available for a period which is less than the Interest

Period of the Loan or that part of the Loan, SOFR for the day which is two US

Government Securities Business Days before the Quotation Day;

 and

(b) the applicable Term SOFR (as of the Quotation Day) for the shortest period (for which

Term SOFR is available) which exceeds the Interest Period of the Loan or that part of

the Loan.

"

Inventory of Hazardous Material

" means, in relation to each Ship, an inventory certificate or

statement of compliance (as applicable) issued by the Ship's classification society which is

supplemented by a list of any and all materials known to be potentially hazardous utilised in

the construction of such Ship pursuant to the requirements of the EU Ship Recycling

Regulation. 

"

ISM Code

" means the International Safety Management Code (including the guidelines on its

implementation), adopted by the International Maritime Organisation, as the same may be

amended or supplemented from time to time (and the terms "

safety management system

",

"

Safety Management Certificate

" and "

Document of Compliance

" have the same meanings

as are given to them in the ISM Code).

"

ISPS Code

" means the International Ship and Port Facility Security Code as adopted by the

International Maritime Organisation, as the same may be amended or supplemented from

time to time.

"

ISSC

" means a valid and current International Ship Security Certificate issued under the ISPS

Code. 

"

Jabwot

" means Jabwot Shipping Company Inc., a corporation incorporated in the Republic of

the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Lead Arranger

" means Nordea Bank Abp, filial i Norge, acting in such capacity through its

office at Essendrops gate 7, Postboks 1166, Sentrum, 0107 Oslo, 920058817 MVA, Norway. 

"

Lender

" means a bank or financial institution listed in

 (

Lenders and Commitments

) and

acting through its branch indicated in

 (

Lenders and Commitments

) (or through another

branch notified to the Agent under Clause

 (

Change of Facility Office

)) or its transferee,

successor or assign and, in the plural, means all of them.

"

Loan

" means the aggregate principal amount outstanding under this Agreement and a "

part

of the Loan

" means an Advance, a Tranche, a part of a Tranche or any other part of the Loan

as the context may require.

"

Major Casualty

" means, in relation to a Ship, any casualty to that Ship in respect of which the

claim or the aggregate of the claims against all insurers, before adjustment for any relevant

franchise or deductible, exceeds $1,000,000 or the equivalent in any other currency. 

"

Majority Lenders

" means: 

(a) before an Advance has been made, Lenders whose Commitments total 66.67 per cent.

of the Total Commitments; and 

(b) after an Advance has been made, Lenders whose Contributions total 66.67 per cent.

of the Loan.

"

Management Agreement

" means, in relation to each Ship, an agreement made or to be made

between the Borrower who is the owner of such Ship and the Approved Manager in respect

of the commercial and technical management of such Ship in the Agreed Form and, in the

plural, means all of them.

"

Manager's Undertaking

" means, in relation to each Ship, a letter of undertaking executed or

to be executed by the Approved Manager in favour of the Security Trustee in the Agreed Form

agreeing certain matters in relation to the management of that Ship and subordinating the

rights of the Approved Manager against that Ship and the Borrower which is the owner thereof

to the rights of the Security Trustee under the Finance Documents and, in the plural, means all

of them.

"

Manra

" means Manra Shipping Company Inc., a corporation incorporated in the Republic of

the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Margin

" means 2.25 per cent. per annum.

"

Market Disruption Rate

" means the Reference Rate.

"

Market Value

" means, in relation to each Ship (and each other Fleet Vessel), the market value

thereof determined in accordance with Clause

 (

Valuation of Ships

).

"

Master Agreement

" means the master agreement (on the 2002 ISDA Master Agreement

form) in the Agreed Form made or to be made between (i) the Borrowers and (ii) the Swap

Bank and includes all Designated Transactions from time to time entered into, and all

Confirmations of such Designated Transactions from time to time exchanged, under such

master agreement.

"

Master Agreement Assignment

" means the assignment of the Master Agreement in the

Agreed Form.

"

MOA A

" means the memorandum of agreement dated 17 August 2022 and made between

(i) Manra as buyer and (ii) Seller A as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

MOA B

" means the memorandum of agreement dated 17 August 2022 and made between (i)

Jabwot as buyer and (ii) Seller B as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

MOA C

" means the memorandum of agreement dated 17 August 2022 and made between (i)

Arorae as buyer and (ii) Seller C as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

MOA D

" means the memorandum of agreement dated 17 August 2022 and made between

(i) Tamana as buyer and (ii) Seller D as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

MOA E

" means the memorandum of agreement dated 17 August 2022 and made between (i)

Beru as buyer and (ii) Seller E as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

MOA F

" means the memorandum of agreement dated 17 August 2022 and made between (i)

Bonriki as buyer and (ii) Seller F as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

MOA G

" means the memorandum of agreement dated 17 August 2022 and made between

(i) Ejite as buyer and (ii) Seller G as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

MOA H

" means the memorandum of agreement dated 17 August 2022 and made between

(i) Taongi as buyer and (ii) Seller H as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

MOA I

" means the memorandum of agreement dated 17 August 2022 and made between (i)

Namorik as buyer and (ii) Seller I as seller, as the same may from time to time be amended

pursuant to the terms of this Agreement.

"

Month

" means a period starting on one day in a calendar month and ending on the

numerically corresponding day in the next calendar month, except that:

(a) (subject to paragraph

 below) if the numerically corresponding day is not a Business

Day, that period shall end on the next Business Day in that calendar month in which

that period is to end if there is one, or if there is not, on the immediately preceding

Business Day;

(b) if there is no numerically corresponding day in the calendar month in which that period

is to end, that period shall end on the last Business Day in that calendar month; and

(c) if an Interest Period begins on the last Business Day of a calendar month, that Interest

Period shall end on the last Business Day in the calendar month in which that Interest

Period is to end.

The above rules will only apply to the last Month of any period.

"

Mortgage

" means, in relation to a Ship, the first preferred Marshall Islands ship mortgage on

that Ship in the Agreed Form and, in the plural, means all of them.

"

Namorik

" means Namorik Shipping Company Inc., a corporation incorporated in the Republic

of the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Notifying Lender

" has the meaning given in Clause

 (

Illegality

) or Clause

 (

Increased costs

)

as the context requires.

"Palios Family

" means, together, each of the following:

(a) Mr. Simeon Palios; 

(b) all the lineal descendants in direct line of Mr. Simeon Palios;

(c) a husband or wife or widower or widow of any of the above persons;

(d) the estates, trusts or legal representatives of which any of the above persons are the

beneficiaries; and

(e) each company legally or beneficially owned or (as the case may be) controlled by one

or more of the persons or entities which would fall within paragraphs (a) to (d) of this

definition,

and each one of the above shall be referred to as "

a member of the Palios Family

";

"

Participating

Member

State

" means any member state of the European Union that has the

euro as its lawful currency in accordance with legislation of the European Union relating to

Economic and Monetary Union.

"

Party

"

means a party to this Agreement.

"

Payment Currency

" has the meaning given in Clause

 (

Currency indemnity

).

"

Permitted Security Interests

" means:

(a) Security Interests created by the Finance Documents;

(b) liens for unpaid master's and crew's wages in accordance with usual maritime practice;

(c) liens for salvage;

(d) liens arising by operation of law for not more than two months' prepaid hire under

any charter in relation to a Ship not prohibited by this Agreement;

(e) liens for master's disbursements incurred in the ordinary course of trading and any

other lien arising by operation of law or otherwise in the ordinary course of the

operation, repair or maintenance of a Ship, provided such liens do not secure amounts

more than 30 days overdue (unless the overdue amount is being contested by the

relevant Borrower in good faith by appropriate steps) and subject, in the case of liens

for repair or maintenance, to Clause

 (

Restriction on chartering, appointment of

managers etc.

);

(f) any Security Interest created in favour of a plaintiff or defendant in any proceedings

or arbitration as security for costs and expenses where the Borrower is actively

prosecuting or defending such proceedings or arbitration in good faith; and

(g) Security Interests arising by operation of law in respect of taxes which are not overdue

for payment or in respect of taxes being contested in good faith by appropriate steps

and in respect of which appropriate reserves have been made.

"

Pertinent Document

" means:

(a) any Finance Document;

(b) any policy or contract of insurance contemplated by or referred to in Clause

(

Insurance

) or any other provision of this Agreement or another Finance Document;

(c) any other document contemplated by or referred to in any Finance Document; and

(d) any document which has been or is at any time sent by or to a Servicing Bank in

contemplation of or in connection with any Finance Document or any policy, contract

or document falling within paragraphs

 or

"

Pertinent Jurisdiction

", in relation to a company, means:

(a) England and Wales;

(b) the country under the laws of which the company is incorporated or formed;

(c) a country in which the company has the centre of its main interests or in which the

company's central management and control is or has recently been exercised;

(d) a country in which the overall net income of the company is subject to corporation tax,

income tax or any similar tax;

(e) a country in which assets of the company (other than securities issued by, or loans to,

related companies) having a substantial value are situated, in which the company

maintains a branch or permanent place of business, or in which a Security Interest

created by the company must or should be registered in order to ensure its validity or

priority; and

(f) a country the courts of which have jurisdiction to make a winding up, administration

or similar order in relation to the company, whether as main or territorial or ancillary

proceedings, or which would have such jurisdiction if their assistance were requested

by the courts of a country referred to in paragraphs

 or

"

Pertinent Matter

" means:

(a) any transaction or matter contemplated by, arising out of, or in connection with a

Pertinent Document; or

(b) any statement relating to a Pertinent Document or to a transaction or matter falling

within paragraph

and covers any such transaction, matter or statement, whether entered into, arising or made

at any time before the signing of this Agreement or on or at any time after that signing.

"

Poseidon Principles

" means the financial industry framework for assessing and disclosing the

climate alignment of ship finance portfolios published in June 2019 as the same may be

amended or replaced from time to time.

"

Potential Event of Default

" means an event or circumstance which, with the giving of any

notice, the lapse of time, a determination of the Lenders and/or the satisfaction of any other

condition, would constitute an Event of Default.

"

Purchase

Price

" means, in relation to each Ship, the price for that Ship as stated in clause 1

of the relevant MOA.

"

Quotation Day

" means, in relation to any period for which an interest rate is to be

determined, two US Government Securities Business Days before the first day of that period

unless market practice differs in the relevant syndicated loan market in which case the

Quotation Day will be determined by the Agent in accordance with that market practice (and

if quotations would normally be given on more than one day, the Quotation Day will be the

last of those days).

"

Reference Rate

" means, in relation to the Loan or any part of the Loan:

(a) the applicable Term SOFR as of the Quotation Day and for a period equal in length to

the Interest Period of the Loan or that part of the Loan; or

(b) as otherwise determined pursuant to Clause

 (

Unavailability of Term SOFR

),

and if, in either case, that rate is less than zero, the Reference Rate shall be deemed to be zero.

"

Relevant Market

" means the market for overnight cash borrowing collateralised by US

Government Securities.

"

Relevant Nominating Body

" means any applicable central bank, regulator or other

supervisory authority or a group of them, or any working group or committee sponsored or

chaired by, or constituted at the request of, any of them or the Financial Stability Board.

"

Relevant Person

" has the meaning given in Clause

 (

Relevant Persons

).

"

Repayment

Date

" means a date on which a repayment is required to be made under Clause

 (

Repayment and Prepayment

).

"

Repayment Instalment

" means any repayment instalment referred to in Clause

 (

Amount of

repayment instalments

).

"

Requisition Compensation

" includes all compensation or other moneys payable by reason of

any act or event such as is referred to in paragraph

 of the definition of "

Total Loss

".

"

Resolution Authority

" means any body which has authority to exercise any Write -down and

Conversion Powers.

"

Restricted Party

" means a person:

(a) that is listed on any Sanctions List (whether designated by name or by reason of being

included in a class of person);

(b) located, organised or resident in a country or territory that is the target of Sanctions

that broadly prohibit dealings with that country or territory (currently, Crimea, Cuba,

Iran, North Korea, Syria, Donetsk and Luhansk); or

(c) that is directly or indirectly owned or controlled by a person referred to in (a) and/or

(b) above; or

(d) with which any Lender is prohibited from dealing or otherwise engaging in a

transaction with by any Sanctions.

"

Sanctions Authority

" means the Norwegian State, the United Nations, the European Union,

the member states of the European Union, the United Kingdom, the United States of America

and any authority, official institution or agency acting on behalf of any of them in connection

with Sanctions.

"

Sanctions

" means the economic or financial Sanctions and/or regulations, trade embargoes,

prohibitions, restrictive measures, decisions, Executive Orders or notices from regulators

implemented, adapted, imposed, administered, enacted and/or enforced by any Sanctions

Authority.

"

Sanctions List

" means a list of persons or entities published in connection with Sanctions by

or on behalf of any Sanctions Authority.

"

Secured Liabilities

" means all liabilities which the Borrowers, the Corporate Guarantor, the

Security Parties or any of them have, at the date of this Agreement or at any later time or

times, under or in connection with any Finance Document or any judgment relating to any

Finance Document; and for this purpose, there shall be disregarded any total or partial

discharge of these liabilities, or variation of their terms, which is effected by, or in connection

with, any bankruptcy, liquidation, arrangement or other procedure under the insolvency laws

of any country.

"

Security Interest

" means: 

(a) a mortgage, charge (whether fixed or floating) or pledge, any maritime or other lien

or any other security interest of any kind; 

(b) the security rights of a plaintiff under an action

in rem

; and 

(c) any arrangement entered into by a person (A) the effect of which is to place another

person (B) in a position which is similar, in economic terms, to the position in which B

would have been had he held a security interest over an asset of A; but this paragraph

 does not apply to a right of set off or combination of accounts conferred by the

standard terms of business of a bank or financial institution.

"

Security Party

" means the Corporate Guarantor, the Approved Manager and any other

person (except a Creditor Party) who, as a surety or mortgagor, as a party to any subordination

or priorities arrangement, or in any similar capacity, executes a document falling within the

last paragraph of the definition of "

Finance Documents

".

"

Security Period

" means the period commencing on the date of this Agreement and ending

on the date on which the Agent notifies the Borrowers, the Security Parties and the other

Creditor Parties that: 

(a) all amounts which have become due for payment by the Borrowers or any Security

Party under the Finance Documents have been paid;

(b) no amount is owing or has accrued (without yet having become due for payment)

under any Finance Document;

(c) neither a Borrower nor any Security Party has any future or contingent liability under

Clause

 (

Fees and expenses

),

 (

Indemnities

) or

 (

No set-off or Tax Deduction

) below

or any other provision of this Agreement or another Finance Document; and

(d) the Agent, the Security Trustee and the Majority Lenders do not consider that there is

a significant risk that any payment or transaction under a Finance Document would be

set aside, or would have to be reversed or adjusted, in any present or possible future

bankruptcy of the Borrowers or a Security Party or in any present or possible future

proceeding relating to a Finance Document or any asset covered (or previously

covered) by a Security Interest created by a Finance Document.

"

Security Trustee

" means Nordea Bank Abp, filial i Norge, acting in such capacity through its

office at Essendrops gate 7, Postboks 1166, Sentrum, 0107 Oslo, 920058817 MVA, Norway, or

any successor of it appointed under clause 5 of the Agency and Trust Deed.

"

Selection Notice

" means a notice substantially in the form set out in Schedule 6 (

Selection

Notice

) given in accordance with Clause 6 (

Interest Periods

).

"

Seller A

" means STH Athens LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Seller B

" means STH Chiba LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Seller C

" means STH Kure LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Seller D

" means STH London LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Seller E

" means STH Montreal LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Seller F

" means STH New York LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Seller G

" means STH Oslo LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Seller H

" means STH Sydney LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Seller I

" means STH Tokyo LLC of Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH96960.

"

Servicing Bank

" means the Agent or the Security Trustee.

"

Shares Pledge

" means, in relation to each Borrower, a deed executed by the Corporate

Guarantor, creating security over the share capital of that Borrower in the Agreed Form and,

in the plural, means all of them.

"

Ship A

" means the 2015-built Ultaramax bulk carrier vessel of 60,508 deadweight tonnage

"STH ATHENS" with IMO No. 9747390 registered in the ownership of Seller A and to be

purchased by Manra pursuant to the terms and conditions of MOA A and registered in the

name of Manra under the Approved Flag with the name "DSI PEGASUS".

"

Ship B

" means the 2017-built Ultaramax bulk carrier vessel of 60,456 deadweight tonnage

"STH CHIBA" with IMO No. 9738337 registered in the ownership of Seller B and to be

purchased by Jabwot pursuant to the terms and conditions of MOA B and registered in the

name of Jabwot under the Approved Flag with the name "DSI PHOENIX".

"

Ship C

" means the 2016-built Ultaramax bulk carrier vessel of 60,309 deadweight tonnage

"STH KURE" with IMO No. 9749269 registered in the ownership of Seller C and to be purchased

by Arorae pursuant to the terms and conditions of MOA C and registered in the name of Arorae

under the Approved Flag with the name "DSI AQUARIUS".

"

Ship D

" means the 2015-built Ultaramax bulk carrier vessel of 60,309 deadweight tonnage

"STH LONDON" with IMO No. 9747405 registered in the ownership of Seller D and to be

purchased by Tamana pursuant to the terms and conditions of MOA D and registered in the

name of Tamana under the Approved Flag with the name "DSI POLLUX".

"

Ship E

" means the 2018-built Ultaramax bulk carrier vessel of 60,362 deadweight tonnage

"STH MONTREAL" with IMO No. 9800635 registered in the ownership of Seller E and to be

purchased by Beru pursuant to the terms and conditions of MOA E and registered in the name

of Beru under the Approved Flag with the name "DSI PYXIS".

"

Ship F

" means the 2015-built Ultaramax bulk carrier vessel of 60,309 deadweight tonnage

"STH NEW YORK" with IMO No. 9729362 registered in the ownership of Seller F and to be

purchased by Bonriki pursuant to the terms and conditions of MOA F and registered in the

name of Bonriki under the Approved Flag with the name "DSI AQUILA".

"

Ship G

" means the 2018-built Ultaramax bulk carrier vessel of 60,404 deadweight tonnage

"STH OSLO" with IMO No. 9738349 registered in the ownership of Seller G and to be purchased

by Ejite pursuant to the terms and conditions of MOA G and registered in the name of Ejite

under the Approved Flag with the name "DSI POLARIS".

"

Ship H

" means the 2016-built Ultaramax bulk carrier vessel of 60,309 deadweight tonnage

"STH SYDNEY" with IMO No. 9749245 registered in the ownership of Seller H and to be

purchased by Taongi pursuant to the terms and conditions of MOA H and registered in the

name of Taongi under the Approved Flag with the name "DSI ALTAIR ".

"

Ship I

" means the 2016-built Ultaramax bulk carrier vessel of 60,309 deadweight tonnage

"STH TOKYO" with IMO No. 9749257 registered in the ownership of Seller I and to be

purchased by Namorik pursuant to the terms and conditions of MOA I and registered in the

name of Namorik under the Approved Flag with the name "DSI ANDROMEDA".

"

Ships

" means, together, Ship A, Ship B, Ship C, Ship D, Ship E, Ship F, Ship G, Ship H and Ship I

and, in the singular, means any of them.

"

SOFR

" means the secured overnight financing rate (SOFR) administered by the Federal

Reserve Bank of New York (or any other person which takes over the administration of that

rate) published (before any correction, recalculation or republication by the administrator) by

the Federal Reserve Bank of New York (or any other person which takes over the publication

of that rate).

"

Statement of Compliance

" means a Statement of Compliance related to fuel oil consumption

pursuant to regulations 6.6 and 6.7 of Annex VI.

"

Swap Bank

" means Nordea Bank Abp.

"

Swap Exposure

" means, as at any relevant date, the amount certified by the Swap Bank to

the Agent to be the aggregate net amount in Dollars which would be payable by the Borrowers

to the Swap Bank under (and calculated in accordance with) section 6(e) (

Payments on Early

Termination

) of the Master Agreement if an Early Termination Date had occurred on the

relevant date in relation to all outstanding Designated Transactions .

"

Tamana

" means Tamana Shipping Company Inc., a corporation incorporated in the Republic

of the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Taongi

" means Taongi Shipping Company Inc., a corporation incorporated in the Republic of

the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro MH96960, Marshall Islands.

"

Termination Date

" means the date falling on the fifth anniversary of the Drawdown Date of

the first Tranche.

"

Term SOFR

" means the term SOFR reference rate administered by CME Group Benchmark

Administration Limited (or any other person which takes over the administration of that rate)

for the relevant period published (before any correction, recalculation or republication by the

administrator) by CME Group Benchmark Administration Limited (or any other person which

takes over the publication of that rate).

"

Total Loss

" means, in relation to a Ship

(a) actual, constructive, compromised, agreed or arranged total loss of the Ship;

(b) any expropriation, confiscation, requisition or acquisition of the Ship, whether for full

consideration, a consideration less than its proper value, a nominal consideration or

without any consideration, which is effected by any government or official authority

or by any person or persons claiming to be or to represent a government or official

authority (excluding a requisition for hire for a fixed period not exceeding 1 year

without any right to an extension) unless it is within one month redelivered to the full

control of the Borrower owning that Ship;

(c) any condemnation of the Ship by any tribunal or by any person or person claiming to

be a tribunal; and

(d) any arrest, capture, seizure or detention of the Ship (including any hijacking or theft)

unless it is within 30 days redelivered to the full control of the Borrower owning the

Ship.

"

Total Loss Date

" means, in relation to a Ship:

(a) in the case of an actual loss of the Ship, the date on which it occurred or, if that is

unknown, the date when the Ship was last heard of;

(b) in the case of a constructive, compromised, agreed or arranged total loss of the Ship,

the earliest of:

(i) the date on which a notice of abandonment is given to the insurers; and

(ii) the date of any compromise, arrangement or agreement made by or on behalf

of the Borrower owning the Ship with the Ship's insurers in which the insurers

agree to treat the Ship as a total loss; and

(c) in the case of any other type of total loss, on the date (or the most likely date) on which

it appears to the Agent that the event constituting the total loss occurred.

"

Tranche

" means each of Tranche A, Tranche B, Tranche C, Tranche D, Tranche E, Tranche F,

Tranche G, Tranche H and Tranche I. 

"

Tranche A

" means that part of the Loan made or to be made available to Manra to finance

up to the lesser of (a) $20,900,000 representing approximately 60 per cent. of the Purchase

Price of Ship A and (b) 67.5 per cent. of the Initial Market Value of Ship A.

"

Tranche B

" means that part of the Loan made or to be made available to Jawbot to finance

up to the lesser of (a) $22,800,000 representing approximately 60 per cent. of the Purchase

Price of Ship B and (b) 67.5 per cent. of the Initial Market Value of Ship B.

"

Tranche C

" means that part of the Loan made or to be made available to Arorae to finance

up to the lesser of (a) $22,000,000 representing approximately 60 per cent. of the Purchase

Price of Ship C and (b) 67.5 per cent. of the Initial Market Value of Ship C.

"

Tranche D

" means that part of the Loan made or to be made available to Tamana to finance

up to the lesser of (a) $20,900,000 representing approximately 60 per cent. of the Purchase

Price of Ship D and (b) 67.5 per cent. of the Initial Market Value of Ship D.

"

Tranche E

" means that part of the Loan made or to be made available to Beru to finance up

to the lesser of (a) $24,250,000 representing approximately 60 per cent. of the Purchase Price

of Ship E and (b) 67.5 per cent. of the Initial Market Value of Ship E.

"

Tranche F

" means that part of the Loan made or to be made available to Bonriki to finance

up to the lesser of (a) $20,900,000 representing approximately 60 per cent. of the Purchase

Price of Ship F and (b) 67.5 per cent. of the Initial Market Value of Ship F.

"

Tranche G

" means that part of the Loan made or to be made available to Ejite to finance up

to the lesser of (a) $24,250,000 representing approximately 60 per cent. of the Purchase Price

of Ship G and (b) 67.5 per cent. of the Initial Market Value of Ship G.

"

Tranche H

" means that part of the Loan made or to be made available to Taongi to finance

up to the lesser of (a) $22,000,000 representing approximately 60 per cent. of the Purchase

Price of Ship H and (b) 67.5 per cent. of the Initial Market Value of Ship H.

"

Tranche I

" means that part of the Loan made or to be made available to Namorik to finance

up to the lesser of (a) $22,000,000 representing approximately 60 per cent. of the Purchase

Price of Ship I and (b) 67.5 per cent. of the Initial Market Value of Ship I.

"

Transaction

" has the meaning given in the Master Agreement.

"

Transfer Certificate

" has the meaning given in Clause

 (

Transfer by a Lender

). 

"

Trust Property

" has the meaning given in clause 3.1 of the Agency and Trust Deed. 

"

UK Bail-In Legislation

" means Part 1 of the United Kingdom Banking Act 2009 and any other

law or regulation applicable in the United Kingdom relating to the resolution of unsound or

failing banks, investment firms or other financial institutes or their affiliates (otherwise than

through liquidation, administration or other insolvency proceedings).

"

Unpaid Sum

" means any sum due and payable but unpaid by a Security Party under the

Finance Documents.

"

US

" means the United States of America.

"

US Government Securities Business Day

" means any day other than:

(a) a Saturday or a Sunday; and

(b) a day on which the Securities Industry and Financial Markets Association (or any

successor organisation) recommends that the fixed income departments of its

members be closed for the entire day for purposes of trading in US Government

securities.

"

US Tax Obligor

" means:

(a) a person which is resident for tax purposes in the US; or

(b) a person some or all of whose payments under the Finance Documents are from

sources within the US for US federal income tax purposes.

"

Write-down and Conversion Powers

" means:

(a) in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule

from time to time, the powers described as such in relation to that Bail-In Legislation

in the EU Bail-In Legislation Schedule;

(b) in relation to the UK Bail-In Legislation, any powers under that UK Bail-In Legislation

to cancel, transfer or dilute shares issued by a person that is a bank or investment firm

or other financial institution or affiliate of a bank, investment firm or other financial

institution, to cancel, reduce, modify or change the form of a liability of such a person

or any contract or instrument under which that liability arises, to convert all or part of

that liability into shares, securities or obligations of that person or any other person,

to provide that any such contract or instrument is to have effect as if a right had been

exercised under it or to suspend any obligation in respect of that liability or any of the

powers under that UK Bail-In Legislation that are related to or ancillary to any of those

powers; and

(c) in relation to any other applicable Bail-In Legislation:

(i) any powers under that Bail-In Legislation to cancel, transfer or dilute shares

issued by a person that is a bank or investment firm or other financial

institution or affiliate of a bank, investment firm or other financial institution,

to cancel, reduce, modify or change the form of a liability of such a person or

any contract or instrument under which that liability arises, to convert all or

part of that liability into shares, securities or obligations of that person or any

other person, to provide that any such contract or instrument is to have effect

as if a right had been exercised under it or to suspend any obligation in respect

of that liability or any of the powers under that Bail-In Legislation that are

related to or ancillary to any of those powers; and

(ii) any similar or analogous powers under that Bail-In Legislation.

1.2 Construction of certain terms

In this Agreement:

"

administration notice

" means a notice appointing an administrator, a notice of intended

appointment and any other notice which is required by law (generally or in the case concerned)

to be filed with the court or given to a person prior to, or in connection with, the appointment

of an administrator. 

"

approved

" means, for the purposes of Clause

 (

Insurance

), approved in writing by the Agent.

"

asset

" includes every kind of property, asset, interest or right, including any present, future

or contingent right to any revenues or other payment.

a Lender's "

cost of funds

" in relation to its participation in the Loan or any part of the Loan is

a reference to the average cost (determined either on an actual or a notional basis) which that

Lender would incur if it were to fund, from whatever source(s) it may reasonably select, an

amount equal to the amount of that participation in the Loan or that part of the Loan for a

period equal in length to the Interest Period of the Loan or that part of the Loan.

"

company

" includes any partnership, joint venture and unincorporated association.

"

consent

" includes an authorisation, consent, approval, resolution, licence, exemption, filing,

registration, notarisation and legalisation.

"

contingent liability

" means a liability which is not certain to arise and/or the amount of which

remains unascertained.

"

document

" includes a deed; also a letter or fax.

"

excess risks

" means, in relation to a Ship, the proportion of claims for general average, salvage

and salvage charges not recoverable under the hull and machinery policies in respect of the

Ship in consequence of its insured value being less than the value at which the Ship is assessed

for the purpose of such claims.

"

expense

" means any kind of cost, charge or expense (including all legal costs, charges and

expenses) and any applicable value added or other tax.

"

law

" includes any order or decree, any form of delegated legislation, any treaty or

international convention and any regulation or resolution of the Council of the European

Union, the European Commission, the United Nations or its Security Council.

"

legal or administrative action

" means any legal proceeding or arbitration and any

administrative or regulatory action or investigation.

"

liability

" includes every kind of debt or liability (present or future, certain or contingent),

whether incurred as principal or surety or otherwise.

"

obligatory insurances

" means, in relation to a Ship, all insurances effected, or which the

Borrower owning the Ship is obliged to effect, under Clause

 (

Insurance

) or any other

provision of this Agreement or another Finance Document.

"

parent company

" has the meaning given in Clause

 (

Meaning of "subsidiary"

).

"

person

" includes any company; any state, political sub-division of a state and local or

municipal authority; and any international organisation.

"

policy

", in relation to any insurance, includes a slip, cover note, certificate of entry or other

document evidencing the contract of insurance or its terms.

"

protection and indemnity risks

" means the usual risks covered by a protection and indemnity

association managed in London, including pollution risks and the proportion (if any) of any

sums payable to any other person or persons in case of collision which are not recoverable

under the hull and machinery policies by reason of the incorporation in them of clause 6 of the

International Hull Clauses (1/11/02 or 1/11/03), clause 8 of the Institute Time Clauses (Hulls)

(1/11/95) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83) or the Institute Amended

Running Down Clause (1/10/71) or any equivalent provision.

"

regulation

" includes any regulation, rule, official directive, request or guideline (either having

the force of law or compliance with which is reasonable in the ordinary course of business of

the party concerned) whether or not having the force of law of any governmental,

intergovernmental or supranational body, agency, department or regulatory, self-regulatory

or other authority or organisation.

"

subsidiary

" has the meaning given in Clause

 (

Meaning of "subsidiary"

). 

"

successor

" includes any person who is entitled (by assignment, novation, merger or

otherwise) to any person's rights under this Agreement or any other Finance Document (or

any interest in those rights) or who, as administrator, liquidator or otherwise, is entitled to

exercise those rights; and in particular references to a successor include a person to whom

those rights (or any interest in those rights) are transferred or pass as a result of a merger,

division, reconstruction or other reorganisation of it or any other person. 

"

tax

" includes any present or future tax, duty, impost, levy or charge of any kind which is

imposed by any state, any political sub-division of a state or any local or municipal authority

(including any such imposed in connection with exchange controls), and any connected

penalty, interest or fine.

"

war risks

" includes the risk of mines and all risks excluded by clauses 29, 30 or 31 of the

International Hull Clauses (1/11/02), clauses 29 or 30 of the International Hull Clauses

(1/11/03), clauses 24, 25 or 26 of the Institute Time Clauses (Hulls) (1/11/95) or clauses 23, 24

or 25 of the Institute Time Clauses (Hulls) (1/10/83) or any equivalent provision.

1.3 Meaning of "subsidiary"

A company (S) is a subsidiary of another company (P) if:

(a) a majority of the issued shares in S (or a majority of the issued shares in S which carry unlimited

rights to capital and income distributions) are directly owned by P or are indirectly attributable

to P; or

(b) P has direct or indirect control over a majority of the voting rights attaching to the issued

shares of S; or

(c) P has the direct or indirect power to appoint or remove a majority of the directors of S; or

(d) P otherwise has the direct or indirect power to ensure that the affairs of S are conducted in

accordance with the wishes of P,

and any company of which S is a subsidiary is a parent company of S.

1.4 General Interpretation

In this Agreement:

(a) references to, or to a provision of, a Finance Document or any other document are references

to it as amended or supplemented, whether before the date of this Agreement or otherwise;

(b) references to, or to a provision of, any law include any amendment, extension, re-enactment

or replacement, whether made before the date of this Agreement or otherwise; 

(c) words denoting the singular number shall include the plural and vice versa; and

(d) Clauses

 to

 apply unless the contrary intention appears.

1.5 Headings

In interpreting a Finance Document or any provision of a Finance Document, all clause, sub-

clause and other headings in that and any other Finance Document shall be entirely

disregarded.

2 FACILITY 

2.1 Amount of facility

Subject to the other provisions of this Agreement, the Lenders shall make available to the

Borrowers, in one advance, a term loan facility of up to the lesser of (i) $200,000,000

representing approximately 60 per cent. of the Purchase Price of the Ships and (ii) 67.5 per

cent. of the aggregate Initial Market Value of the Ships for the purpose of financing part of the

Ships' acquisition cost and for general corporate and working capital purposes. 

2.2 Lenders' participations in the Loan

Subject to the other provisions of this Agreement, each Lender shall participate in the Loan in

the proportion which, as at the Drawdown Date, its Commitment bears to the Total

Commitments.

2.3 Purpose of the Loan

The Borrowers undertake with each Creditor Party to use each Advance only for the purpose

stated in the preamble to this Agreement.

3 POSITION OF THE LENDERS, THE SWAP BANK AND THE MAJORITY LENDERS

3.1 Interests of Lenders and Swap Bank several

The rights of the Lenders and the Swap Bank under this Agreement and the Master Agreement

are several; accordingly:

(a) each Lender shall be entitled to sue for any amount which has become due and payable by the

Borrowers to it under this Agreement; and

(b) the Swap Bank shall be entitled to sue for any amount which has become due and payable by

the Borrowers to it under the Master Agreement,

without joining the Agent, the Security Trustee, any other Lender and the Swap Bank as

additional parties in the proceedings.

3.2 Proceedings by individual Lender or Swap Bank

However, without the prior consent of the Majority Lenders, no Lender nor the Swap Bank

may bring proceedings in respect of:

(a) any other liability or obligation of any Borrower or a Security Party under or connected with a

Finance Document; or

(b) any misrepresentation or breach of warranty by any Borrower or a Security Party in or

connected with a Finance Document.

3.3 Obligations several

The obligations of the Lenders and the Swap Bank under this Agreement and of the Swap Bank

under the Master Agreement are several; and a failure of a Lender or the Swap Bank to perform

its obligations under this Agreement or of the Swap Bank to perform its obligations under the

Master Agreement shall not result in:

(a) the obligations of the other Lenders or (as the case may be) the Swap Bank being increased;

nor

(b) any Borrower, any Security Party or any other Creditor Party being discharged (in whole or in

part) from its obligations under any Finance Document,

and in no circumstances shall a Lender or the Swap Bank have any responsibility for a failure

of another Lender or the Swap Bank to perform its obligations under this Agreement or the

Master Agreement.

3.4 Parties bound by certain actions of Majority Lenders

Every Lender, the Swap Bank, each Borrower and each Security Party shall be bound by:

(a) any determination made, or action taken, by the Majority Lenders under any provision of a

Finance Document;

(b) any instruction or authorisation given by the Majority Lenders to the Agent or the Security

Trustee under or in connection with any Finance Document (subject always to Clause

(

Variations, waivers etc. by Majority Lenders)

);

(c) any action taken (or in good faith purportedly taken) by the Agent or the Security Trustee in

accordance with such an instruction or authorisation.

3.5 Reliance on action of Agent

However, each Borrower and each Security Party:

(a) shall be entitled to assume that the Majority Lenders have duly given any instruction or

authorisation which, under any provision of a Finance Document, is required in relation to any

action which the Agent has taken or is about to take; and

(b) shall not be entitled to require any evidence that such an instruction or authorisation has been

given.

3.6 Construction

In Clauses

 (

Parties bound by certain actions of Majority Lenders

) and

 (

Reliance on action of

Agent

) references to action taken include (without limitation) the granting of any waiver or

consent, an approval of any document and an agreement to any matter.

4 DRAWDOWN 

4.1 Request for an Advance

Subject to the following conditions, the Borrowers may request an Advance to be made in

relation to a Ship by ensuring that the Agent receives a completed Drawdown Notice not later

than 11.00 a.m. (Oslo time) three Business Days (or such shorter period as the Agent may, in

its absolute discretion, agree) prior to the intended Drawdown Date.

4.2 Availability

The conditions referred to in Clause

 (

Request for an Advance

) are that:

(a) the Drawdown Date has to be a Business Day during the Availability Period; 

(b) there shall be no more than one Advance in respect of each Tranche;

(c) the amount of the Advance under a Tranche shall not exceed the lesser of:

(i) the amount set out for that Advance in the definition of that Tranche in Clause

(

Definitions

) representing approximately 60 per cent. of the Purchase Price of the Ship

to which that Tranche relates; and 

(ii) 67.5 per cent. of the Initial Market Value of the Ship to which that Tranche relates; and

(d) the aggregate amount of all Advances shall not exceed the Total Commitments.

4.3 Notification to Lenders of receipt of a Drawdown Notice

The Agent shall promptly notify the Lenders that it has received a Drawdown Notice and shall

inform each Lender of:

(a) the amount of the Advance and the Drawdown Date;

(b) the amount of that Lender's participation in the Advance; and

(c) the duration of the first Interest Period.

4.4 Drawdown Notice irrevocable

A Drawdown Notice must be signed by a director or an authorised representative of each

Borrower; and once served, a Drawdown Notice cannot be revoked without the prior consent

of the Agent, acting on the authority of the Majority Lenders.

4.5 Lenders to make available Contributions

Subject to the provisions of this Agreement, each Lender shall, on and with value on the

Drawdown Date, make available to the Agent for the account of the Borrowers the amount

due from that Lender on the Drawdown Date under Clause

 (

Lenders' participations in the

Loan

).

4.6 Disbursement of an Advance

Subject to the provisions of this Agreement, the Agent shall on the Drawdown Date pay to the

Borrowers the amounts which the Agent receives from the Lenders under Clause

 (

Lenders to

make available Contributions

); and that payment to the Borrowers shall be made:

(a) to the account which the Borrowers specify in the Drawdown Notice; and

(b) in the like funds as the Agent received the payments from the Lenders.

4.7 Disbursement of Advance to third party

The payment by the Agent under Clause

 (

Disbursement of an Advance

) shall constitute the

making of the Advance and the Borrowers shall at that time become indebted, as principal and

direct obligors, to each Lender in an amount equal to that Lender's Contribution.

4.8 Designated Transactions under the Master Agreement

(a) The Borrowers may at any time conclude Designated Transactions with the Swap Bank

pursuant to the Master Agreement for the purpose of swapping their interest payment

obligations and managing exposure to interest rate fluctuations and currency risk under this

Agreement. The Borrower s agree that signature of the Master Agreement does not commit

the Swap Bank to conclude Designated Transactions, or even to offer terms for doing so, but

does provide a contractual framework within which Designated Transactions may be

concluded and secured, assuming that mutually acceptable terms can be agreed at the

relevant time.

(b) The Lenders agree that, to enable the Borrowers to secure their obligations to the Swap Bank

under the Master Agreement, the security of the other Finance Documents shall be held by

the Security Trustee not only to secure the Borrower s' obligations under this Agreement but

also the Borrowers' obligations under the Master Agreement on the terms set out in Clause

(

Application of receipts

).

4.9 Prepositioning of funds

If, in respect of any proposed Advance under a Tranche, the Lenders, at the request of the

Borrowers and on terms acceptable to all the Lenders and in their absolute discretion,

preposition funds with the Escrow Agent and each Borrower:

(a) agree to pay interest on the amount of the funds so prepositioned at the rate described in

Clause

 (

Calculation of interest

) on the basis of successive interest periods of one day and so

that interest shall be paid together with the first payment of interest on such Advance after

the Drawdown Date in respect of it or, if such Drawdown Date does not occur, within three

Business Days of demand by the Agent; and

(b) shall, without duplication, indemnify each Creditor Party against any costs, loss or liability it

may incur in connection with such arrangement.

5 INTEREST 

5.1 Calculation of interest

The rate of interest on the Loan or any part of the Loan for each Interest Period is the

percentage rate per annum which is the aggregate of the applicable:

(a) Margin; and

(b) Reference Rate.

5.2 Payment of interest

(a) The Borrowers shall pay accrued interest on the Loan or any part of the Loan on the last day

of each Interest Period.

(b) If an Interest Period is longer than three Months, the Borrowers shall also pay interest then

accrued on the Loan or the relevant part of the Loan on the dates falling at three Monthly

intervals after the first day of the Interest Period.

5.3 Default interest

(a) If a Security Party fails to pay any amount payable by it under a Finance Document on its due

date, interest shall accrue on the Unpaid Sum from the due date up to the date of actual

payment (both before and after judgment) at a rate which, subject to paragraph

 below, is

two per cent. per annum higher than the rate which would have been payable if the Unpaid

Sum had, during the period of non-payment, constituted part of the Loan in the currency of

the Unpaid Sum for successive Interest Periods, each of a duration selected by the Agent. Any

interest accruing under this Clause

 (

Default interest

) shall be immediately payable by the

Borrowers on demand by the Agent.

(b) If an Unpaid Sum consists of all or part of the Loan which became due on a day which was not

the last day of an Interest Period relating to the Loan or that part of the Loan:

(i) the first Interest Period for that Unpaid Sum shall have a duration equal to the

unexpired portion of the current Interest Period relating to the Loan or that part of the

Loan; and

(ii) the rate of interest applying to that Unpaid Sum during that first Interest Period shall

be two per cent. per annum higher than the rate which would have applied if that

Unpaid Sum had not become due. 

(c) Default interest (if unpaid) arising on an Unpaid Sum will be compounded with the Unpaid Sum

at the end of each Interest Period applicable to that Unpaid Sum but will remain immediately

due and payable.

(d) For the avoidance of doubt, this Clause

 (

Default interest

) does not apply to any amount

payable under the Master Agreement in respect of any continuing Designated Transaction as

to which the relevant provisions of the Master Agreement shall apply.

5.4 Notification of rates of interest

(a) The Agent shall promptly notify the Lenders and the Borrowers of the determination of a rate

of interest under this Agreement.

(b) The Agent shall promptly notify the Borrowers of each Funding Rate relating to the Loan, any

part of the Loan or any Unpaid Sum.

6 INTEREST PERIODS 

6.1 Selection of Interest Periods

(a) The Borrowers may select the Interest Period for each Tranche in the Drawdown Notice for

the first Advance in that Tranche . The Borrowers may select each subsequent Interest Period

in respect of a Tranche in a Selection Notice.

(b) Each Selection Notice is irrevocable and must be delivered to the Agent by the Borrowers not

later than five Business Days before the expiry of the preceding Interest Period.

(c) If the Borrowers fail to select an Interest Period in the first Drawdown Notice or fails to deliver

a Selection Notice to the Agent in accordance with paragraphs

 and

 above, the relevant

Interest Period will be 3 Months.

(d) Subject to this Clause 6 (

Interest Periods

), the Borrowers may select an Interest Period of one

or three Months or any other period agreed between the Borrowers and the Agent (acting on

the instructions of all the Lenders).

(e) An Interest Period in respect of a Tranche or any part of a Tranche shall not extend beyond the

Termination Date .

(f) The first Interest Period for each Tranche shall start on the first Drawdown Date relating to

such Tranche and, subject to paragraph (g) below, each subsequent Interest Period shall start

on the last day of the preceding Interest Period.

(g) If the Borrowers have selected an Interest Period for any subsequent Advance under any

Tranche which ends on a day which is after the next Repayment Date, the Agent may shorten

the Interest Period for any Tranche as necessary to ensure that the Interest Period for that

Tranche ends on the relevant Repayment Date. In the event that only part of a Tranche is due

for repayment, that portion of such Tranche will be treated as a separate Tranche to ensure

that there are sufficient Tranches which have an Interest Period ending on the relevant

Repayment Date.

(h) Each Tranche shall have one Interest Period only at any time.

6.2 Non-Business Days

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest

Period will instead end on the next Business Day in that calendar month (if there is one) or the

preceding Business Day (if there is not).

 CHANGES TO THE CALCULATION OF INTEREST

7.1 Unavailability of Term SOFR

(a)

Interpolated Term SOFR

: If no Term SOFR is available for the Interest Period of the Loan or any

part of the Loan, the applicable Reference Rate shall be the Interpolated Term SOFR for a

period equal in length to the Interest Period of the Loan or that part of the Loan.

(b)

Shortened Interest Period

: If no Term SOFR is available for the Interest Period of a Loan or any

part of the Loan and it is not possible to calculate the Interpolated Term SOFR, the Interest

Period of that Loan or that part of the Loan shall (if it is longer than the applicable Fallback

Interest Period) be shortened to the applicable Fallback Interest Period and the applicable

Reference Rate for that shortened Interest Period shall be determined pursuant to the

definition of "

Reference Rate

".

(c)

Cost of funds

: If paragraph

 above applies but no Term SOFR is available for the applicable

Fallback Interest Period or the Interest Period is shorter than the applicable Fallback Interest

Period, there shall be no Reference Rate for the Loan or that part of the Loan (as applicable)

and Clause

 (

Cost of funds

) shall apply to the Loan or that part of the Loan for that Interest

Period.

7.2 Market disruption

If before close of business in London on the Quotation Day for the relevant Interest Period, the

Agent receives notification from a Lender or Lenders (whose participations in the Loan or the

relevant part of the Loan exceed 50 per cent. of the Loan or that part of the Loan as

appropriate) that its cost of funds relating to its participation in the Loan or that part of the

Loan would be in excess of the Market Disruption Rate then Clause

 (

Cost of funds

) shall apply

to the Loan or that part of the Loan (as applicable) for the relevant Interest Period.

7.3 Cost of funds

(a) If this Clause

 (

Cost of funds

) applies, the rate of interest on each Lender's share of the Loan

or the relevant part of the Loan for the relevant Interest Period shall be the percentage rate

per annum which is the sum of:

(i) the Margin; and

(ii) the weighted average of the rates notified to the Agent by each Lender as soon as

practicable and in any event before interest is due to be paid in respect of that Interest

Period to be that which expresses as a percentage rate per annum its cost of funds

relating to its participation in the Loan or that part of the Loan.

(b) If this Clause

 (

Cost of funds

) applies and the Agent or the Borrowers so requires, the Agent

and the Borrowers shall enter into negotiations (for a period of not more than 30 days) with a

view to agreeing a substitute basis for determining the rate of interest or (as the case may be)

an alternative basis for funding.

(c) Subject to Clause

 (

Changes to reference

 r

ates

), any substitute or alternative basis agreed

pursuant to paragraph

 above shall, with the prior consent of all the Lenders and the

Borrowers, be binding on all Parties.

(d) If paragraph

 below does not apply and any rate notified to the Agent under sub-paragraph

of paragraph

 above is less than zero, the relevant rate shall be deemed to be zero.

(e) If this Clause

 (

Cost of funds

) applies pursuant to Clause

 (

Market disruption

) and:

(i) a Lender's Funding Rate is less than the Market Disruption Rate; or

(ii) a Lender does not notify a rate by the time specified in sub-paragraph

 of paragraph

 above,

that Lender's cost of funds relating to its participation in the Loan or the relevant part of the

Loan for that Interest Period shall be deemed, for the purposes of paragraph

 above, to be

the Market Disruption Rate.

(f) If this Clause

 (

Cost of funds

) applies but any Lender does not notify a rate to the Agent by the

time specified in sub-paragraph

 of paragraph

 above the rate of interest shall be calculated

on the basis of the rates notified by the remaining Lenders.

7.4 Break Costs

(a) The Borrower s shall, within three Business Days of demand by a Creditor Party, pay to that

Creditor Party its Break Costs attributable to all or any part of the Loan or Unpaid Sum being

paid by the Borrower s on a day prior to the last day of an Interest Period for the Loan, the

relevant part of the Loan or that Unpaid Sum.

(b) Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a

certificate confirming the amount of its Break Costs for any Interest Period in respect of which

they become or may become payable.

8 REPAYMENT AND PREPAYMENT 

8.1 Amount of repayment instalments

The Borrowers shall repay each Tranche by:

(a) 20 equal consecutive quarterly instalments (each, a "

Repayment Instalment

" and, in the plural

means, all of them) in the amount of X each (rounded to nearest hundred); and

(b) a balloon instalment in the amount of Y (the "

Balloon Instalment

").

In this Clause

 (

Amount of repayment instalments

):

"

Age

" means, in relation to a Ship, the age of that Ship on the Delivery Date of the Tranche

which is used to finance or refinance that Ship, such age to be calculated as from the Relevant

Yard Delivery of that Ship (rounded to two decimals);

"

Delivery Date

" means, in relation to each Ship, the date on which that Ship is delivered by the

relevant Seller to, and accepted by the Borrower which is, or is to be the owner thereof

pursuant to the relevant MOA; 

"

U

" means the product of V and 4;

"

V

" means, in relation to a Tranche, 18 minus the Age of the Ship financed or refinanced by

that Tranche;

"

W

" means X multiplied by 20;

"

X

" means an amount achieved by dividing Z by U;

"

Y

" means, in relation to each Tranche, Z minus W; 

"

Yard Delivery Date

" means:

(i) in relation to Ship A, 2015;

(ii) in relation to Ship B, 2017;

(iii) in relation to Ship C, 2016;

(iv) in relation to Ship D, 2015;

(v) in relation to Ship E, 2018;

(vi) in relation to Ship F, 2015;

(vii) in relation to Ship G, 2018;

(viii) in relation to Ship H, 2016; and

(ix) in relation to Ship I, 2016.

"

Z

" means, in relation to each Tranche, the amount of that Tranche on its Drawdown Date

(after the same has been made available to the Borrowers).

8.2 Repayment Dates

The first Instalment in respect of each Tranche shall be repaid on the date falling three Months

after the first Drawdown Date, each subsequent Repayment Instalment in respect of each

Tranche shall be repaid at quarterly intervals thereafter and the last Repayment Instalment

together with the Balloon Instalment shall be repaid on the Termination Date.

8.3 Final Repayment Date

On the final Repayment Date, the Borrowers shall additionally pay to the Agent for the account

of the Creditor Parties all other sums then accrued or owing under any Finance Document.

8.4 Voluntary prepayment

Subject to the following conditions, the Borrowers may prepay the whole or any part of the

Loan on the last day of an Interest Period applicable to it.

8.5 Conditions for voluntary prepayment

The conditions referred to in Clause

 (

Voluntary prepayment

) are that:

(a) a partial prepayment shall be $500,000 or a higher integral multiple of $500,000;

(b) the Agent has received from the Borrowers at least three days ' prior written notice specifying

the amount to be prepaid and the date on which the prepayment is to be made; 

(c) the Borrowers have provided evidence satisfactory to the Agent that any consent required by

any Borrower or any Security Party in connection with the prepayment has been obtained and

remains in force, and that any regulation relevant to this Agreement which affects any

Borrower or any Security Party has been complied with; and

(d) the Borrowers have complied with Clause

Unwinding of Designated Transactions

) on or prior

to the date of prepayment.

8.6 Effect of notice of prepayment

A prepayment notice may not be withdrawn or amended without the consent of the Agent,

given with the authorisation of the Majority Lenders, and the amount specified in the

prepayment notice shall become due and payable by the Borrowers on the date for

prepayment specified in the prepayment notice.

8.7 Notification of notice of prepayment

The Agent shall notify the Lenders promptly upon receiving a prepayment notice, and shall

provide any Lender which so requests with a copy of any document delivered by the Borrowers

under Clause

 (

Conditions for voluntary prepayment

).

8.8 Mandatory prepayment

The Borrowers shall be obliged to prepay the whole of the Relevant Amount if a Ship is sold or

becomes a Total Loss:

(a) in the case of a sale, on or before the date on which the Mortgage on that Ship is released; or

(b) in the case of a Total Loss, on the earlier of the date falling 180 days after the Total Loss Date

and the date of receipt by the Security Trustee of the proceeds of insurance relating to such

Total Loss.

In this Clause

 (

Mandatory prepayment

) "

Relevant Amount

" means an amount which is the

higher of: (a) the outstanding amount of the Tranche relating to the Ship which has been sold

or become Total Loss and (b) the amount achieved by dividing the Market Value of the Ship

which has been sold or become Total Loss by the aggregate of the Market Value of all Ships

(including the Ship that has become sold or Total Loss) and multiplying it by the Loan on the

date that the relevant Ship is sold or becomes a Total Loss. 

8.9 Mandatory prepayment upon Change of Control 

If a Change of Control occurs:

(a) the Borrower shall promptly notify the Agent upon becoming aware of that event; and

(b) if the Majority Lenders so require, the Agent shall, by not less than 10 Business Days' notice to

the Borrower, cancel the Facilities and declare the Loan, together with accrued interest, and

all other amounts accrued under the Finance Documents immediately due and payable,

whereupon the Facilities will be cancelled and the Loan and all such outstanding interest and

other amounts will become immediately due and payable.

8.10 Amounts payable on prepayment

A prepayment shall be made together with accrued interest (and any other amount payable

under Clause

 (

Indemnities

) or otherwise) in respect of the amount prepaid and, subject to

any Break Costs without premium or penalty. 

8.11 Application of partial prepayment

Each partial prepayment made pursuant to Clauses

 (

Voluntary prepayment

) and

(

Mandatory prepayment upon change of control

) shall be applied pro rata against the then

outstanding Tranches and thereafter pro rata against the then outstanding Repayment

Instalments and the Balloon Instalment of each Tranche. Each partial prepayment made

pursuant to Clause

 (

Mandatory prepayment

) shall be applied against the Tranche relating to

the Ship which has been sold or become Total Loss and, if there is any excess following the

prepayment in full of such Tranche, such excess shall be applied pro rata against the remaining

then outstanding Tranches and thereafter pro rata against the then outstanding Repayment

Instalments and the Balloon Instalment of each such Tranche.

8.12 No re-borrowing

No amount prepaid may be re-borrowed.

8.13 Unwinding of Designated Transactions

On or prior to any repayment or prepayment of the Loan under this Clause

 (

Repayment and

prepayment

) or any other provision of this Agreement, each Borrower shall wholly or partially

reverse, offset, unwind or otherwise terminate one or more of the continuing Designated

Transactions so that the notional principal amount of the continuing Designated Transactions

thereafter remaining does not and will not in the future (taking into account the scheduled

amortisation) exceed the amount of the Loan as reducing from time to time thereafter

pursuant to Clause

 (

Amount of repayment instalments

).

9 CONDITIONS PRECEDENT 

9.1 Documents, fees and no default

Each Lender's obligation to contribute to an Advance is subject to the following conditions

precedent: 

(a) that, on or before the service of the Drawdown Notice, the Agent receives:

(i) the documents described in

 of

 (

Condition precedent documents

) in form and

substance satisfactory to the Agent and its lawyers; and

(ii) the arrangement fee referred to in Clause

 (a) (

Fees

);

(b) that, on or before the Drawdown Date in relation to each Tranche, the Agent receives or is

satisfied that it will receive on the advance of the Tranche the documents described in

 of

(

Condition precedent documents

) in form and substance satisfactory to it and its lawyers;

(c) that, on or before the service of the Drawdown Notice, the Agent receives payment of any

expenses payable pursuant to Clause

 (

Costs of negotiation, preparation etc

.) which is due

and payable on the Drawdown Date relating to that Tranche ;

(d) that both at the date of the Drawdown Notice and at the Drawdown Date:

(i) no Event of Default or Potential Event of Default has occurred or would result from the

borrowing of that Tranche; 

(ii) the representations and warranties in Clause

 (

General

) and those of any Borrower or

any Security Party which are set out in the other Finance Documents would be true

and not misleading if repeated on each of those dates with reference to the

circumstances then existing; 

(iii) none of the circumstances contemplated by Clause

 (

Market disruption

) has occurred

and is continuing; and

(iv) there has been no material adverse change in the financial condition, state of affairs

or prospects of the Borrowers (or any of them), the Corporate Guarantor or any other

Security Party since 8 August 2022 in the light of which the Agent considers that there

is a significant risk that the Borrowers, the Corporate Guarantor or any other Security

Party is, or will later become, unable to discharge its liabilities under the Finance

Documents to which it is a party as they fall due;

(e) that, if the ratio set out in Clause

 (

Minimum required security cover

) were applied

immediately following the making of a Tranche, the Borrowers would not be obliged to provide

additional security or prepay part of the Loan under that Clause; and

(f) that the Agent has received, and found to be acceptable to it, any further opinions, consents,

agreements and documents in connection with the Finance Documents which the Agent may,

with the authorisation of the Majority Lenders, request by notice to the Borrowers prior to the

Drawdown Date.

9.2 Waiver of conditions precedent

If the Majority Lenders, at their discretion, permit a Tranche to be borrowed before certain of

the conditions referred to in Clause

 (

Documents, fees and no default

) are satisfied, the

Borrowers shall ensure that those conditions are satisfied within five Business Days after the

Drawdown Date (or such longer period as the Agent may, with the authorisation of the

Majority Lenders, specify).

10 REPRESENTATIONS AND WARRANTIES

10.1 General

Each Borrower represents and warrants to each Creditor Party as follows.

10.2 Status

(a) Each Borrower is duly incorporated and validly existing and in good standing under the laws of

the Marshall Islands.

10.3 Shares and ownership

(a) Each Borrower is authorised to issue five hundred (500) registered shares with par value of

$0,01 each.

(b) The legal title and beneficial ownership of all those shares is held, free of any Security Interest

or other claim, by the Corporate Guarantor.

10.4 Corporate power

Each Borrower has the corporate capacity, and has taken all corporate action and obtained all

consents necessary for it:

(a) to register permanently the Ship owned by it in its name under the Approved Flag;

(b) to execute the Finance Documents to which that Borrower is a party; and

(c) to borrow under this Agreement, to enter into Designated Transactions under the Master

Agreement and to make all the payments contemplated by, and to comply with, those Finance

Documents to which it is a party.

10.5 Consents in force

All the consents referred to in Clause

 (

Corporate power

) remain in force and nothing has

occurred which makes any of them liable to revocation.

10.6 Legal validity; effective Security Interests

The Finance Documents to which each Borrower is a party, do now or, as the case may be, will,

upon execution and delivery (and, where applicable, registration as provided for in the Finance

Documents): 

(a) constitute that Borrower's legal, valid and binding obligations enforceable against that

Borrower in accordance with their respective terms; and

(b) create legal, valid and binding Security Interests enforceable in accordance with their

respective terms over all the assets to which they, by their terms, relate;

subject to any relevant insolvency laws affecting creditors' rights generally.

10.7 No third party Security Interests

Without limiting the generality of Clause

 (

Legal validity; effective Security Interests

), at the

time of the execution and delivery of each Finance Document to which a Borrower is a party: 

(a) each Borrower which is a party to that Finance Document will have the right to create all the

Security Interests which that Finance Document purports to create; and

(b) no third party will have any Security Interest (except for Permitted Security Interests) or any

other interest, right or claim over, in or in relation to any asset to which any such Security

Interest, by its terms, relates.

10.8 No conflicts

The execution by each Borrower of each Finance Document to which it is a party, and the

borrowing by that Borrower of the Loan (or any part thereof), and its compliance with each

Finance Document to which it is a party will not involve or lead to a contravention of:

(a) any law or regulation; or

(b) the constitutional documents of that Borrower; or

(c) any contractual or other obligation or restriction which is binding on that Borrower or any of

its assets.

10.9 No withholding taxes

All payments which each Borrower is liable to make under the Finance Documents to which it

is a party may be made without deduction or withholding for or on account of any tax payable

under any law of any Pertinent Jurisdiction.

10.10 No default

No Event of Default or Potential Event of Default has occurred.

10.11 Information

All information which has been provided in writing by or on behalf of the Borrowers or any

Security Party to any Creditor Party in connection with any Finance Document satisfied the

requirements of Clause

 (

Information provided to be accurate

); all audited and unaudited

accounts which have been so provided satisfied the requirements of Clause

Form of financial

statements

); and there has been no material adverse change in the financial position or state

of affairs of any Borrower from that disclosed in the latest of those accounts.

10.12 No litigation

No legal or administrative action involving any Borrower (including action relating to any

alleged or actual breach of the ISM Code or the ISPS Code) has been commenced or taken or,

to any Borrower's knowledge, is likely to be commenced or taken.

10.13 Compliance with certain undertakings

At the date of this Agreement, the Borrowers are in compliance with Clauses

 (

Title; negative

pledge

),

 (

No other liabilities or obligations to be incurred

),

 (

Consents

) and

 (

Principal place

of business

).

10.14 Taxes paid

Each Borrower has paid all taxes applicable to, or imposed on or in relation to that Borrower,

its business or the Ship owned by it.

10.15 ISM Code and ISPS Code compliance

All requirements of the ISM Code and the ISPS Code as they relate to the Borrowers, the

Approved Manager and the Ships have been complied with.

10.16 No money laundering

Without prejudice to the generality of Clause

 (

Purpose of the Loan

), in relation to the

borrowing by the Borrowers of the Loan, the performance and discharge of their obligations

and liabilities under the Finance Documents, and the transactions and other arrangements

affected or contemplated by the Finance Documents to which a Borrower is a party, the

Borrowers confirm (i) that they are acting for their own account; (ii) that they will use the

proceeds of the Loan for their own benefit, under their full responsibility and exclusively for

the purposes specified in this Agreement; (iii) that no Borrower and no Security Party nor any

of their respective subsidiaries, directors, or officers, or, to the best of the Borrowers'

knowledge, any affiliate, agent or employee thereof has engaged in any activity or conduct

which would violate any applicable anti-bribery, anti-corruption or anti-money laundering laws

or regulations in any applicable jurisdiction and each Borrower and each Security Party has

instituted and maintains policies and procedures designated to prevent violation of such laws

regulations and rules and (iv) that the foregoing will not involve or lead to a contravention of

any law, official requirement or other regulatory measure or procedure implemented to

combat "money laundering" (as defined in Article 1 of Directive 2005/60/EC of the European

Parliament and of the Council). 

10.17 No immunity

No Borrower, nor any of their assets are entitled to immunity on the grounds of sovereignty

or otherwise from any legal action or proceeding (which shall include, without limitation, suit

attachment prior to judgement, execution or other enforcement).

10.18 Sanctions

(a) Each Borrower, Security Party and member of the Group and their respective subsidiaries,

directors, officers, employees, and to the best of each Borrower's knowledge, their respective

agents or representatives has been and is in compliance with Sanctions.

(b) No Borrower, Security Party or member of the Group, none of their subsidiaries and none of

their respective directors, officers, employees, and to the best of each Borrower's knowledge,

none of their respective agents or representatives:

(i) is a Restricted Party, or is involved in any transaction through which it is likely to

become a Restricted Party or result in the imposition of Sanctions against any party to

a Finance Document; or

(ii) is subject to or involved in any inquiry, claim, action, suit, proceedings or investigation

against it with respect to Sanctions by any Sanctions Authority.

10.19 Compliance with applicable laws

Each Borrower is at all times in compliance with all applicable laws or regulations, including

but not limited to all Environmental Laws.

11 GENERAL UNDERTAKINGS 

11.1 General

Each Borrower undertakes with each Creditor Party to comply with the following provisions of

this Clause

 (

General undertakings

) at all times during the Security Period except as the Agent

may, with the authorisation of the Majority Lenders, otherwise permit.

11.2 Title; negative pledge

Each Borrower will:

(a) hold the legal title to, and own the entire beneficial interest in the Ship owned by it, the

Insurances and Earnings, free from all Security Interests and other interests and rights of every

kind, except for those created by the Finance Documents and the effect of assignments

contained in the Finance Documents and except for Permitted Security Interests; and

(b) not create or permit to arise any Security Interest (except for Permitted Security Interests) over

any other asset, present or future (including, but not limited to, that Borrower's rights against

the Swap Bank under the Master Agreement or all or any part of that Borrower's interest in

any amount payable to that Borrower by the Swap Bank under the Master Agreement).

11.3 No disposal of assets

No Borrower will transfer, lease or otherwise dispose of:

(a) all or a substantial part of its assets, whether by one transaction or a number of transactions,

whether related or not; or

(b) any debt payable to it or any other right (present, future or contingent right) to receive a

payment, including any right to damages or compensation,

but paragraph

 does not apply to any charter of a Ship as to which Clause

 (

Restriction on

chartering, appointment of managers etc.

) applies.

11.4 No other liabilities or obligations to be incurred

No Borrower will incur any liability or obligation except:

(a) under the Finance Documents to which it is a party; 

(b) liabilities or obligations reasonably incurred in the ordinary course of owning, operating and

chartering the Ship; and

(c) in respect of the Designated Transactions.

11.5 Information provided to be accurate

All financial and other information which is provided in writing by or on behalf of a Borrower

under or in connection with any Finance Document will be true and not misleading and will

not omit any material fact or consideration.

11.6 Provision of financial statements

Each Borrower will send or procure that are to be sent to the Agent:

(a) as soon as possible, but in no event later than 180 days after the end of each Financial Year of

the Corporate Guarantor the audited annual consolidated financial statements of the

Corporate Guarantor for that Financial Year of the Corporate Guarantor (commencing with the

financial statements for the year that ended on 31 December 2021); 

(b) as soon as possible, but in no event later than 90 days after the end of each Financial Year of

the Corporate Guarantor the unaudited annual consolidated financial statements of the

Corporate Guarantor for that Financial Year of the Corporate Guarantor (commencing with the

financial statements for the year that ended on 31 December 2021);

(c) as soon as possible, but in no event later than 90 days after 30 June in each Financial Year of

the Corporate Guarantor the unaudited semi-annual consolidated financial statements of the

Corporate Guarantor for the first six-month period of such Financial Year and in the form

published in the relevant press release (commencing with the financial statements for the 6-

month period ended on 30 June 2022) certified as to their correctness by the chief financial

officer of the Corporate Guarantor; and

(d) promptly after a request by the Agent, such further financial or other information in respect

of the Borrowers, the Ships, the Corporate Guarantor, the other Security Parties, the Fleet

Vessels and the Group (including, but not limited to, charter arrangements, Financial

Indebtedness, operating expenses) as the Agent may reasonably require.

11.7 Form of financial statements

All accounts delivered under Clause

 (

Provision of financial statements

) will:

(a) be prepared in accordance with all applicable laws and GAAP consistently applied;

(b) give a true and fair view of the state of affairs of the Group at the date of those accounts and

of its profit for the period to which those accounts relate; and

(c) fully disclose or provide for all significant liabilities of the Group.

11.8 Shareholder and creditor notices

Each Borrower will send the Agent, at the same time as they are despatched, copies of all

communications which are despatched to that Borrower's shareholders or creditors or any

class of them.

11.9 Consents

Each Borrower will maintain in force and promptly obtain or renew, and will promptly send

certified copies to the Agent of, all consents required:

(a) for that Borrower to perform its obligations under any Finance Document to which it is a party; 

(b) for the validity or enforceability of any Finance Document to which it is a party; and

(c) for that Borrower to continue to own and operate the Ship owned by it,

and that Borrower will comply with the terms of all such consents.

11.10 Maintenance of Security Interests

Each Borrower will:

(a) at its own cost, do all that is necessary to ensure that any Finance Document to which it is a

party validly creates the obligations and the Security Interests which it purports to create; and

(b) without limiting the generality of paragraph

, at its own cost, promptly register, file, record

or enrol any Finance Document with any court or authority in all Pertinent Jurisdictions, pay

any stamp, registration or similar tax in all Pertinent Jurisdictions in respect of any Finance

Document, give any notice or take any other step which, in the opinion of the Majority Lenders,

is or has become necessary or desirable for any Finance Document to be valid, enforceable or

admissible in evidence or to ensure or protect the priority of any Security Interest which it

creates. 

11.11 Notification of litigation

Each Borrower will provide the Agent with details of any legal or administrative action involving

that Borrower, any Security Party, the Approved Manager or the Ship owned by it, the Earnings

or the Insurances as soon as such action is instituted or it becomes apparent to that Borrower

that it is likely to be instituted, unless it is clear that the legal or administrative action cannot

be considered material in the context of any Finance Document. 

11.12 No amendment to Master Agreement

No Borrower will agree to any amendment or supplement to, or waive or fail to enforce, the

Master Agreement or any of its provisions.

11.13 Principal place of business

No Borrower will establish, or do anything as a result of which it would be deemed to have, a

place of business in any country other than Greece.

11.14 Confirmation of no default

Each Borrower will, within two Business Days after service by the Agent of a written request,

serve on the Agent a notice which is signed by two directors of that Borrower and which:

(a) states that no Event of Default or Potential Event of Default has occurred; or

(b) states that no Event of Default or Potential Event of Default has occurred, except for a specified

event or matter, of which all material details are given.

The Agent may serve requests under this Clause

 (

Confirmation of no default

) from time to

time but only if asked to do so by a Lender or Lenders having Contributions exceeding ten per

cent. of the Loan or (no Advances have been made) Commitments exceeding ten per cent. of

the Total Commitments; and this Clause

 (

Confirmation of no default

) does not affect the

Borrowers' obligations under Clause

 (

Notification of default

).

11.15 Notification of default

Each Borrower will notify the Agent as soon as that Borrower becomes aware of:

(a) the occurrence of an Event of Default or a Potential Event of Default; or

(b) any matter which indicates that an Event of Default or a Potential Event of Default may have

occurred,

and will keep the Agent fully up to date with all developments.

11.16 Provision of further information

Each Borrower will, as soon as practicable after receiving the request, provide the Agent with

any additional financial or other information relating:

(a) to the Borrowers, the Group, the Corporate Guarantor, the Ships, the other Fleet Vessels, their

Insurances or their Earnings (including, but not limited to, any sales or purchases of any Fleet

Vessels, the incurrence of Financial Indebtedness by members of the Group, details of the

employment of the Fleet Vessels) as the Agent may require; or

(b) to any other matter relevant to, or to any provision of, a Finance Document,

which may be requested by the Agent, the Security Trustee, the Swap Bank or any Lender at

any time.

11.17 Provision of copies and translation of documents

Each Borrower will supply the Agent with a sufficient number of copies of the documents

referred to above to provide one copy for each Creditor Party; and if the Agent so requires in

respect of any of those documents, the Borrowers will provide a certified English translation

prepared by a translator approved by the Agent.

11.18 Know your customer

Promptly upon the Agent's request each Borrower will supply, or procure the supply of, such

documentation and other evidence as is reasonably requested by the Agent in order for each

Creditor Party to carry out and be satisfied with the results of all necessary "know your client"

or other checks which it is required to carry out in relation to the transactions contemplated

by the Finance Documents and to the identity of any parties to the Finance Documents (other

than Creditor Parties) and their directors and officers.

11.19 Payment of taxes

Each Borrower shall pay when due all taxes applicable to, or imposed on, its business or the

Ship owned by it.

11.20 Bribery and anti-corruption laws

(a) No Borrower shall use the proceeds of the Loan for any purpose which would breach the

Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other similar

legislation in other jurisdictions.

(b) Each Borrower shall (and shall procure that each other Security Party and each other member

of the Group shall):

(i) conduct its businesses in compliance with applicable anti-corruption laws; and

(ii) maintain policies and procedures designed to promote and achieve compliance with

such laws.

11.21 Sanctions

(a) Each Borrower shall ensure that none of them or the Security Parties nor any of their respective

subsidiaries or any member of the Group, their respective directors, officers, employees,

agents or representatives or any other persons acting on any of their behalf, is or will become

a Restricted Party.

(b) Each Borrower shall supply to the Agent, promptly upon becoming aware of them, the details

of any inquiry, claim, action, suit, proceeding or investigation pursuant to Sanctions by any

Sanctions Authority against a Borrower, any Security Party, any of their respective direct or

indirect owners, their respective subsidiaries or any member of the Group, any of their joint

ventures or any of their respective directors, officers, employees, agents or representatives,

as well as information on what steps are being taken with regards to answer or oppose such.

(c) Each Borrower shall (and shall procure that the other members of the Group will) implement

and maintain in effect policies and procedures designed to promote and ensure compliance by

them and their respective directors, officers and employees acting on their behalf with

Sanctions and anti-corruption laws and regulations.

11.22 Use of proceeds

(a) No proceeds of the Loan or any part of the Loan shall be made available, directly or indirectly

to or for the benefit of a Restricted Party nor shall they be otherwise directly or indirectly,

applied in a manner or for a purpose prohibited by Sanctions or could result in the imposition

of sanctions against any party to any Finance Document.

(b) The Borrowers shall not repay or prepay the Loan or any part thereof or fund all or any part of

any payment under this Agreement (i) out of proceeds from funds or assets that (A) constitute

property of, or that are beneficially owned directly or indirectly by, any Restricted Party or (B)

are obtained or derived from transactions with or relating to any Restricted Party or

transactions in violation of Sanctions or (ii) in any manner that would cause any Lender to be

in violation of Sanctions.

11.23 No variation, release etc. of MOA

No Borrower shall, whether by a document, by conduct, by acquiescence or in any other way:

(a) vary the MOA to which it is a party in a material manner (other than with the prior consent of

the Agent (acting on the instructions of the Majority Lenders)); or

(b) release, waive, suspend, subordinate or permit to be lost or impaired any interest or right of

any kind which a Borrower has at any time to, in or in connection with, that MOA or in relation

to any matter arising out of or in connection with that MOA.

11.24 Provision of information relating to MOA

Without prejudice to Clause

 (

Provision of further

information

) each Borrower shall:

(a) immediately inform the Agent if any breach of the MOA to which it is a party occurs or a serious

risk of such a breach arises and of any other event or matter affecting that MOA which has or

is reasonably likely to have a Material Adverse Effect; and

(b) upon the reasonable request of the Agent, keep the Agent informed as to any notice of

readiness of delivery of the Ship owned by it.

11.25 No assignment etc. of MOA

No Borrower shall assign, novate, transfer or dispose of any of its rights or obligations under

the MOA to which it is a party.

12 CORPORATE UNDERTAKINGS 

12.1 General

Each Borrower also undertakes with each Creditor Party to comply with the following

provisions of this Clause

 (

Corporate Undertakings

) at all times during the Security Period

except as the Agent may, with the authorisation of the Majority Lenders, otherwise permit.

12.2 Maintenance of status

(a) Each Borrower will maintain its separate corporate existence and remain in good standing

under the laws of the Marshall Islands and will, and shall procure that any other Security Party

(as applicable) will, comply in all respects with the Republic of the Marshall Islands Economic

Substance Regulations 2018 (as amended from time to time).

12.3 Negative undertakings

No Borrower will:

(a) carry on any business other than the ownership, chartering and operation of the Ship owned

by that Borrower; or 

(b) pay any dividend or make any other form of distribution or effect any form of redemption,

purchase or return of share capital (the "

Distribution

") if an Event of Default has occurred at

any relevant time which is continuing or an Event of Default will result from the Distribution;

or

(c) provide any form of credit or financial assistance to:

(i) a person who is directly or indirectly interested in that Borrower's share or loan capital;

or

(ii) any company in or with which such a person is directly or indirectly interested or

connected,

or enter into any transaction with or involving such a person or company on terms which are,

in any respect, less favourable to that Borrower than those which it could obtain in a bargain

made at arms' length; or

(d) open or maintain any account with any bank or financial institution except accounts with the

Agent and the Security Trustee for the purposes of the Finance Documents; or

(e) issue, allot or grant any person a right to any shares in its capital or repurchase or reduce its

issued share capital; or

(f) acquire any shares or other securities other than US or UK Treasury bills and certificates of

deposit issued by major North American or European banks, or enter into any transaction in a

derivative other than the Designated Transactions; or

(g) enter into any form of amalgamation, merger or de-merger or any form of reconstruction or

reorganisation.

13 INSURANCE 

13.1 General

Each Borrower also undertakes with each Creditor Party to comply with the following

provisions of this Clause

 (

Insurance

) at all times during the Security Period except as the

Agent may, with the authorisation of the Majority Lenders, otherwise permit.

13.2 Maintenance of obligatory insurances

Each Borrower shall keep the Ship owned by it insured at the expense of that Borrower against:

(a) fire and usual marine risks (including hull and machinery and excess risks);

(b) war risks (including terrorism, piracy and confiscation);

(c) protection and indemnity risks (other than loss of hire or political risks); and

(d) any other risks against which the Security Trustee considers, having regard to practices and

other circumstances prevailing at the relevant time, it would in the opinion of the Security

Trustee be reasonable for that Borrower to insure and which are specified by the Security

Trustee by notice to that Borrower.

13.3 Terms of obligatory insurances

Each Borrower shall effect such insurances:

(a) in Dollars;

(b) in the case of fire and usual marine risks and war risks, (including hull interest and freight

interest) in such amount as shall from time to time be approved by the Security Trustee but in

any event in an amount not less than the greater of (i) an amount which when aggregated with

the insured value of the other Ships then subject to a Mortgage, 120 per cent. of the aggregate

of the Loan and (ii) the Market Value of the Ship owned by it; 

(c) in the case of hull and machinery policy at an agreed insured value (excluding hull interest and

freight interest) in an amount of not less than an amount which when aggregated with the

agreed insured values under all the other hull and machinery policies for the other Ships then

subject to a Mortgage is not less than the principal amount of the Loan

Provided that

 the

Borrowers are in compliance with their obligations under paragraph

 above at all times; 

(d) in the case of oil pollution liability risks, for an aggregate amount equal to the highest level of

cover from time to time available under basic protection and indemnity club entry and in the

international marine insurance market;

(e) in relation to protection and indemnity risks in respect of the full tonnage of the Ship;

(f) on approved terms; and

(g) through approved brokers and with approved insurance companies and/or underwriters or, in

the case of war risks and protection and indemnity risks, in approved war risks and protection

and indemnity risks associations.

13.4 Further protections for the Creditor Parties

In addition to the terms set out in Clause

 (

Terms of obligatory insurances

), each Borrower

shall procure that the obligatory insurances effected by it shall:

(a) subject always to paragraph

, name that Borrower as the sole named assured unless the

interest of every other named assured is limited:

(i) in respect of any obligatory insurances for hull and machinery and war risks;

(A) to any provable out-of-pocket expenses that it has incurred and which form

part of any recoverable claim on underwriters; and 

(B) to any third party liability claims where cover for such claims is provided by the

policy (and then only in respect of discharge of any claims made against it);

and 

(ii) in respect of any obligatory insurances for protection and indemnity risks, to any

recoveries it is entitled to make by way of reimbursement following discharge of any

third party liability claims made specifically against it

and every other named assured has undertaken in writing to the Security Trustee (in such form

as it requires) that any deductible shall be apportioned between that Borrower and every other

named assured in proportion to the gross claims made or paid by each of them and that it shall

do all things necessary and provide all documents, evidence and information to enable the

Security Trustee to collect or recover any moneys which at any time become payable in respect

of the obligatory insurances;

(b) whenever the Security Trustee requires, name (or be amended to name) the Security Trustee

as additional named assured for its rights and interests, warranted no operational interest and

with full waiver of rights of subrogation against the Security Trustee, but without the Security

Trustee thereby being liable to pay (but having the right to pay) premiums, calls or other

assessments in respect of such insurance;

(c) name the Security Trustee as loss payee with such directions for payment as the Security

Trustee may specify;

(d) provide that all payments by or on behalf of the insurers under the obligatory insurances to

the Security Trustee shall be made without set-off, counterclaim or deductions or condition

whatsoever;

(e) provide that such obligatory insurances shall be primary without right of contribution from

other insurances which may be carried by the Security Trustee or any other Creditor Party; and

(f) provide that the Security Trustee may make proof of loss if that Borrower fails to do so.

13.5 Renewal of obligatory insurances

Each Borrower shall:

(a) at least 21 days before the expiry of any obligatory insurance effected by it:

(i) notify the Security Trustee of the brokers (or other insurers) and any protection and

indemnity or war risks association through or with whom that Borrower proposes to

renew that obligatory insurance and of the proposed terms of renewal; and

(ii) obtain the Security Trustee's approval to the matters referred to in paragraph

(b) at least 14 days before the expiry of any obligatory insurance, renew that obligatory insurance

in accordance with the Security Trustee's approval pursuant to paragraph

; and

(c) procure that the approved brokers and/or the war risks and protection and indemnity

associations with which such a renewal is effected shall promptly after the renewal notify the

Security Trustee in writing of the terms each conditions of the renewal.

13.6 Copies of policies; letters of undertaking

Each Borrower shall ensure that all approved brokers provide the Security Trustee with pro

forma copies of all policies relating to the obligatory insurances which they are to effect or

renew and of a letter or letters of undertaking in a form required by the Security Trustee and

including undertakings by the approved brokers that:

(a) they will have endorsed on each policy, immediately upon issue, a loss payable clause and a

notice of assignment complying with the provisions of Clause

 (

Further protections for the

Creditor Parties

); 

(b) they will hold such policies, and the benefit of such insurances, to the order of the Security

Trustee in accordance with the said loss payable clause; 

(c) they will advise the Security Trustee immediately of any material change to the terms of the

obligatory insurances; 

(d) they will notify the Security Trustee, not less than 14 days before the expiry of the obligatory

insurances, in the event of their not having received notice of renewal instructions from that

Borrower or its agents and, in the event of their receiving instructions to renew, they will

promptly notify the Security Trustee of the terms of the instructions; and

(e) they will not set off against any sum recoverable in respect of a claim relating to the Ship

owned by that Borrower under such obligatory insurances any premiums or other amounts

due to them or any other person whether in respect of that Ship or otherwise, they waive any

lien on the policies, or any sums received under them, which they might have in respect of

such premiums or other amounts, and they will not cancel such obligatory insurances by

reason of non-payment of such premiums or other amounts, and will arrange for a separate

policy to be issued in respect of that Ship forthwith upon being so requested by the Security

Trustee.

13.7 Copies of certificates of entry

Each Borrower shall ensure that any protection and indemnity and/or war risks associations in

which the Ship owned by it is entered provides the Security Trustee with:

(a) a certified copy of the certificate of entry for that Ship owned by it;

(b) a letter or letters of undertaking in such form as may be required by the Security Trustee; and

(c) a certified copy of each certificate of financial responsibility for pollution by oil or other

Environmentally Sensitive Material issued by the relevant certifying authority in relation to

that Ship.

13.8 Deposit of original policies

Each Borrower shall ensure that all policies relating to obligatory insurances effected by it are

deposited with the approved brokers through which the insurances are effected or renewed.

13.9 Payment of premiums

Each Borrower shall punctually pay all premiums or other sums payable in respect of the

obligatory insurances effected by it and produce all relevant receipts when so required by the

Security Trustee.

13.10 Guarantees

Each Borrower shall ensure that any guarantees required by a protection and indemnity or war

risks association are promptly issued and remain in full force and effect.

13.11 Restrictions on employment

No Borrower shall employ its Ship, nor shall permit it to be employed, outside the cover

provided by any obligatory insurances.

13.12 Compliance with terms of insurances

No Borrower shall do nor omit to do (nor permit to be done or not to be done) any act or thing

which would or might render any obligatory insurance invalid, void, voidable or unenforceable

or render any sum payable under an obligatory insurance repayable in whole or in part; and,

in particular:

(a) each Borrower shall take all necessary action and comply with all requirements which may

from time to time be applicable to the obligatory insurances, and (without limiting the

obligation contained in Clause

 (

Copies of policies; letters of undertaking

)) ensure that the

obligatory insurances are not made subject to any exclusions or qualifications to which the

Security Trustee has not given its prior approval;

(b) no Borrower shall make any changes relating to the classification or classification society or

manager or operator of the Ship owned by it approved by the underwriters of the obligatory

insurances;

(c) each Borrower shall make (and promptly supply copies to the Agent of) all quarterly or other

voyage declarations which may be required by the protection and indemnity risks association

in which the Ship owned by it is entered to maintain cover for trading to the United States of

America and Exclusive Economic Zone (as defined in the United States Oil Pollution Act 1990

or any other applicable legislation); and

(d) no Borrower shall employ the Ship owned by it, nor allow it to be employed, otherwise than in

conformity with the terms and conditions of the obligatory insurances, without first obtaining

the consent of the insurers and complying with any requirements (as to extra premium or

otherwise) which the insurers specify.

13.13 Alteration to terms of insurances

(a) No Borrower shall make nor agree to any alteration to the terms of any obligatory insurance

nor waive any right relating to any obligatory insurance. 

(b) Without limiting the generality of the foregoing, no Borrower shall either make or agree to any

alteration to the terms of any war risks and allied perils coverage (including piracy coverage)

whereby trading to conditional (excluded) areas not declared on the annual policy would be

altered without the consent of the Agent.

13.14 Settlement of claims

No Borrower shall settle, compromise or abandon any claim under any obligatory insurance

for Total Loss or for a Major Casualty, and shall do all things necessary and provide all

documents, evidence and information to enable the Security Trustee to collect or recover any

moneys which at any time become payable in respect of the obligatory insurances.

13.15 Provision of copies of communications

Each Borrower shall provide the Security Trustee, at the time of each such communication,

copies of all written communications between a Borrower and:

(a) the approved brokers; 

(b) the approved protection and indemnity and/or war risks associations; and

(c) the approved insurance companies and/or underwriters, which relate directly or indirectly to:

(i) that Borrower's obligations relating to the obligatory insurances including, without

limitation, all requisite declarations and payments of additional premiums or calls; and 

(ii) any credit arrangements made between that Borrower and any of the persons referred

to in paragraphs

 or

 relating wholly or partly to the effecting or maintenance of the

obligatory insurances.

13.16 Provision of information

In addition, each Borrower shall promptly provide the Security Trustee (or any persons which

it may designate) with any information which the Security Trustee (or any such designated

person) requests for the purpose of:

(a) obtaining or preparing any report from an independent marine insurance broker as to the

adequacy of the obligatory insurances effected or proposed to be effected; and/or

(b) effecting, maintaining or renewing any such insurances as are referred to in Clause

(

Mortgagee's interest insurances

) below or dealing with or considering any matters relating to

any such insurances,

and the Borrowers shall, forthwith upon demand, indemnify the Security Trustee in respect of

all fees and other expenses incurred by or for the account of the Security Trustee in connection

with any such report as is referred to in paragraph

13.17 Mortgagee's interest insurances

The Security Trustee shall be entitled from time to time to effect, maintain and renew a

mortgagee's interest marine insurance policy in such amounts, on such terms, through such

insurers and generally in such manner as the Security Trustee may from time to time consider

appropriate and each Borrower shall upon demand fully indemnify the Creditor Parties in

respect of all premiums and other expenses which are incurred in connection with or with a

view to effecting, maintaining or renewing any such insurance or dealing with, or considering,

any matter arising out of any such insurance. 

13.18 Review of insurance requirements

The Agent shall be entitled to review the requirements of this Clause

 (

Insurance

) from time

to time in order to take account of any changes in circumstances after the date of this

Agreement which the Agent reasonably considers significant and capable of affecting the

Borrowers, the Ships and their Insurances (including, without limitation, changes in the

availability or the cost of insurance coverage or the risks to which each Borrower may be

subject), and may appoint insurance consultants in relation to this review at the cost of that

Borrower.

13.19 Modification of insurance requirements

The Agent shall notify the Borrowers of any proposed modification under Clause

 (

Review of

insurance requirements

)to the requirements of this Clause

 (

Insurance

) which the Agent

reasonably considers appropriate in the circumstances, and such modification shall take effect

on and from the date it is notified in writing to the relevant Borrower as an amendment to this

Clause

 (

Insurance

) and shall bind that Borrower accordingly.

13.20 Compliance with mortgagee's instructions

The Agent shall be entitled (without prejudice to or limitation of any other rights which it may

have or acquire under any Finance Document) to require a Ship to remain at any safe port or

to proceed to and remain at any safe port designated by the Agent until the Borrower owning

that Ship implements any amendments to the terms of the obligatory insurances and any

operational changes required as a result of a notice served under Clause

 (

Modification of

insurance requirements

).

14 SHIP COVENANTS 

14.1 General

Each Borrower also undertakes with each Creditor Party to comply with the following

provisions of this Clause

Ship covenants

) at all times during the Security Period except as the

Agent, with the authorisation of the Majority Lenders, may otherwise permit (and in the case

of Clauses

 (

Ship's name and registration

) and

 (

Restrictions on chartering, appointment of

managers etc

.), such permission not to be unreasonably withheld).

14.2 Ship's name and registration

Each Borrower shall keep the Ship owned by it registered in its name under an Approved Flag;

shall not do, omit to do or allow to be done anything as a result of which such registration

might be cancelled or imperilled; and shall not change the name or port of registry of the Ship

owned by it.

14.3 Repair and classification

Each Borrower shall keep the Ship owned by it in a good and safe condition and state of repair:

(a) consistent with first class ship ownership and management practice;

(b) so as to maintain the highest class free of overdue recommendations and conditions with a

classification society which is a member of IACS acceptable to the Agent; and

(c) so as to comply with all laws and regulations applicable to vessels registered at ports in the

applicable Approved Flag State or to vessels trading to any jurisdiction to which that Ship may

trade from time to time, including but not limited to the ISM Code and the ISPS Code.

14.4 Classification society undertaking

Each Borrower shall instruct the classification society referred to in Clause

 (

Repair and

classification

):

(a) to send to the Security Trustee, following receipt of a written request from the Security

Trustee, certified true copies of all original class records held by the classification society in

relation to its Ship;

(b) to allow the Security Trustee (or its agents), at any time and from time to time, to inspect the

original class and related records of its Ship at the offices of the classification society and to

take copies of them;

(c) to notify the Security Trustee immediately in writing if the classification society:

(i) receives notification from that Borrower or any other person that its Ship's

classification society is to be changed; or

(ii) becomes aware of any facts or matters which may result in or have resulted in a

change, suspension, discontinuance, withdrawal or expiry of that Ship's class under the

rules or terms and conditions of that Borrower's or its Ship's membership of the

classification society; and

(d) following receipt of a written request from the Security Trustee:

(i) to confirm that a Borrower is not in default of any of its contractual obligations or

liabilities to the classification society and, without limiting the foregoing, that it has

paid in full all fees or other charges due and payable to the classification society; or

(ii) if a Borrower is in default of any of its contractual obligations or liabilities to the

classification society, to specify to the Security Trustee in reasonable detail the facts

and circumstances of such default, the consequences of such default, and any remedy

period agreed or allowed by the classification society.

14.5 Modification

No Borrower shall make any modification or repairs to, or replacement of, any Ship or

equipment installed on it which would or might materially alter the structure, type or

performance characteristics of that Ship or materially reduce its value.

14.6 Removal of parts

No Borrower shall remove any material part of any Ship, or any item of equipment installed

on, any Ship unless the part or item so removed is forthwith replaced by a suitable part or item

which is in the same condition as or better condition than the part or item removed, is free

from any Security Interest or any right in favour of any person other than the Security Trustee

and becomes on installation on the relevant Ship the property of the relevant Borrower and

subject to the security constituted by the relevant Mortgage

Provided that

 a Borrower may

install equipment owned by a third party if the equipment can be removed without any risk of

damage to the Ship owned by it.

14.7 Surveys

Each Borrower shall submit the Ship owned by it regularly to all periodical or other surveys

which may be required for classification purposes and, if so required by the Security Trustee

provide the Security Trustee, with copies of all survey reports.

14.8 Inspection

Each Borrower shall permit the Security Trustee (by surveyors or other persons appointed by

it for that purpose) to board the Ship owned by it at all reasonable times to inspect its condition

or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities

for such inspections.

14.9 Prevention of and release from arrest

Each Borrower shall promptly discharge:

(a) all liabilities which give or may give rise to maritime or possessory liens on or claims

enforceable against the Ship owned by it, the Earnings or the Insurances;

(b) all taxes, dues and other amounts charged in respect of the Ship owned by it, the Earnings or

the Insurances; and

(c) all other outgoings whatsoever in respect of the Ship owned by it, the Earnings or the

Insurances,

and, forthwith upon receiving notice of the arrest of the Ship owned by it, or of its detention

in exercise or purported exercise of any lien or claim, that Borrower shall procure its release

by providing bail or otherwise as the circumstances may require.

14.10 Compliance with laws etc.

Each Borrower shall:

(a) comply, or procure compliance with the ISM Code, the ISPS Code, all Environmental Laws, all

Sanctions and all other laws or regulations relating to the Ship owned by it, its ownership,

operation and management or to the business of that Borrower;

(b) not employ the Ship owned by it nor allow its employment in any manner contrary to any law

or regulation in any relevant jurisdiction including but not limited to the ISM Code, the ISPS

Code and all Sanctions; and

(c) in the event of hostilities in any part of the world (whether war is declared or not), not cause

or permit the Ship owned by it to enter or trade to any zone which is declared a war zone by

any government or by the Ship's war risks insurers unless the prior written consent of the

Security Trustee has been given and that Borrower has (at its expense) effected any special,

additional or modified insurance cover which the Security Trustee may require.

14.11 Provision of information

Each Borrower shall promptly provide the Security Trustee with any information which it

requests regarding:

(a) the Ship owned by it, its employment, position and engagements;

(b) the Earnings and payments and amounts due to the master and crew of the Ship owned by it; 

(c) any expenses incurred, or likely to be incurred, in connection with the operation, maintenance

or repair of the Ship owned by it and any payments made in respect of that Ship;

(d) any towages and salvages; and

(e) its compliance, the Approved Manager's compliance and the compliance of the Ship owned by

it with the ISM Code, the ISPS Code and all Sanctions,

and, upon the Security Trustee's request, provide copies of any current charter relating to the

Ship owned by it, of any current charter guarantee and copies of the Borrower's or the

Approved Manager's Document of Compliance.

14.12 Notification of certain events

Each Borrower shall immediately notify the Security Trustee by fax, confirmed forthwith, by

letter of:

(a) any casualty which is or is likely to be or to become a Major Casualty;

(b) any occurrence as a result of which the Ship owned by it has become or is, by the passing of

time or otherwise, likely to become a Total Loss;

(c) any requirement or recommendation made by any insurer or classification society or by any

competent authority which is not immediately complied with;

(d) any arrest or detention of the Ship owned by it, any exercise or purported exercise of any lien

on that Ship or its Earnings or any requisition of that Ship for hire;

(e) any intended dry docking of the Ship owned by it;

(f) any Environmental Claim made against that Borrower or in connection with the Ship owned by

it, or any Environmental Incident;

(g) any claim for breach of the ISM Code or the ISPS Code being made against the Borrower, the

Approved Manager or otherwise in connection with the Ship owned by it; or

(h) any other matter, event or incident, actual or threatened, the effect of which will or could lead

to the ISM Code or the ISPS Code not being complied with

and that Borrower shall keep the Security Trustee advised in writing on a regular basis and in

such detail as the Security Trustee shall require of that Borrower's, the Approved Manager's

or any other person's response to any of those events or matters.

14.13 Restrictions on chartering, appointment of managers etc.

No Borrower shall, in relation to the Ship owned by it:

(a) let that Ship on demise charter for any period;

(b) enter into any time or consecutive voyage charter in respect of that Ship for a term which

exceeds, or which by virtue of any optional extensions may exceed, 18 months;

(c) enter into any charter in relation to that Ship under which more than two months' hire (or the

equivalent) is payable in advance;

(d) charter that Ship otherwise than on bona fide arm's length terms at the time when that Ship

is fixed;

(e) appoint a manager of that Ship other than the Approved Manager or agree to any alteration

to the terms of the Approved Manager's appointment;

(f) de activate or lay-up that Ship; or

(g) put that Ship into the possession of any person for the purpose of work being done upon it in

an amount exceeding or likely to exceed $1,000,000 (or the equivalent in any other currency)

unless that person has first given to the Security Trustee and in terms satisfactory to it a written

undertaking not to exercise any lien on that Ship or its Earnings for the cost of such work or for

any other reason.

14.14 Notice of Mortgage

Each Borrower shall keep the relevant Mortgage registered against the Ship owned by it as a

valid first priority or preferred mortgage, carry on board that Ship a certified copy of the

relevant Mortgage and place and maintain in a conspicuous place in the navigation room and

the Master's cabin of that Ship a framed printed notice stating that that Ship is mortgaged by

that Borrower to the Security Trustee.

14.15 Sharing of Earnings

No Borrower shall:

(a) enter into any agreement or arrangement for the sharing of any Earnings; 

(b) enter into any agreement or arrangement for the postponement of any date on which any

Earnings are due; and

(c) the reduction of the amount of any Earnings or otherwise for the release or adverse alteration

of any right of a Borrower to any Earnings. 

14.16 ISPS Code

Each Borrower shall comply with the ISPS Code and in particular, without limitation, shall:

(a) procure that the Ship owned by that Borrower and the company responsible for that Ship's

compliance with the ISPS Code comply with the ISPS Code; 

(b) maintain for that Ship an ISSC; and

(c) notify the Agent immediately in writing of any actual or threatened withdrawal, suspension,

cancellation or modification of the ISSC.

14.17 Charterparty Assignment

If a Borrower enters into any Charter (subject to obtaining the consent of the Agent in

accordance with Clause

 (

Restrictions on chartering, appointment of managers etc

.)), that

Borrower shall at the request of the Agent execute in favour of the Security Trustee (and

register, if applicable) a Charterparty Assignment and shall:

(a) serve notices of the Charterparty Assignment on the Charterer and procure that the Charterer

acknowledges such notice in such form as the Agent may approve or require; and 

(b) deliver to the Agent such other documents equivalent to those referred to at paragraphs 3, 4

and 5 of

 of

 (

Conditions precedent documents

), as the Agent may require.

14.18 Poseidon Principles

Each Borrower shall, upon the request by a Lender and at the cost of the Borrowers, on or

before 31st July in each calendar year, supply or procure the supply by the relevant

classification society to the Agent of all information necessary in order for such Lender to

comply with its obligations under the Poseidon Principles in respect of the preceding year,

including, without limitation, all ship fuel oil consumption data required to be collected and

reported in accordance with Regulation 22A of Annex VI and any Statement of Compliance, in

each case relating to the Ship owned by it for the preceding calendar year provided always

that, for the avoidance of doubt, such information shall be confidential information but the

Borrower acknowledges that, in accordance with the Poseidon Principles, such information will

form part of the information published regarding the relevant Lender's portfolio climate

alignment and that a Lender may disclose such information: (i) either to any classification

society or other entity which a Lender has engaged to make the calculations necessary to

enable that Lender to comply with its reporting obligations under the Poseidon Principles (such

calculations to be made at the cost of the relevant Lender) or (ii) as otherwise permitted under

the terms of this Agreement.

14.19 Inventory of Hazardous Material

Each Borrower shall procure that, on the date falling 18 months after the date of this

Agreement, its Ship has obtained an Inventory of Hazardous Material, which shall be

maintained until the end of the Security Period. 

14.20 Sustainable and socially responsible dismantling of ships

(a) Each Borrower shall (and shall procure that each other member of the Group shall) procure

that for the duration of the Security Period:

(b) the Ship owned by it or any other Fleet Vessel shall be recycled at a recycling yard which

conducts its recycling business in a socially and environmentally responsible manner, in

accordance with the provisions of the Hong Kong Convention (in the event that the Approved

Flag State is not an EEA Member Country) or the EU Ship Recycling Regulation (in the event

that the Approved Flag State is an EEA Member Country); or

(c) where the Ship owned by it or any other Fleet Vessel is sold to an intermediary (whether or

not with the intention of being recycled), it shall provide the intermediary with any ship-

relevant information in its possession which it considers necessary for the development of a

ship recycling plan in accordance with the EU Ship Recycling Regulation.

14.21 Sanctions provisions 

Without limiting Clause

 (

Compliance with laws etc.

), each Borrower shall procure:

(a) each Borrower shall, and shall procure that the Ship owned by it and each Security Party shall,

and, in respect of any charterer, shall use all reasonable endeavours to procure that the

Charterer and any other charterer in respect of its Ship shall, comply in all respects with all

laws to which it may be subject, including, without limitation, all national and international

laws, derivatives, regulations, decrees, rulings and such analogous rules, including, but not

limited to, rules relating to Sanctions.

(b) Each Borrower undertakes to make the Charterer and all other charterers and operators of the

Ship owned by it aware of the requirements of this Clause and Clause

 (

Sanctions

) and shall

procure that they act in accordance with these requirements.

14.22 Change of Approved Manager

(a) Each Borrower may, at its sole discretion, at any time during the Security Period, change the

Approved Manager of its Ship from Diana Shipping Services SA to Diana Wilhelmsen

Management Limited,

provided that

 the Borrowe rs shall give the Agent five Business' Days

prior written notice and shall provide the Agent no later than the date of the change with:

(b) documents of the kind specified in paragraphs

,

,

, and

 of

 of

 (

Condition precedent

documents

) in respect of Diana Wilhelmsen Management Limited;

(c) the documents referred to in paragraph

 of

 of

 (

Condition precedent documents

); and

(d) any other documents that the Agent may reasonably require.

15 SECURITY COVER 

15.1 Minimum required security cover

Clause

 (

Provision of additional security; prepayment

) applies if, at any relevant time during

the Security Period, the Agent notifies the Borrowers that:

(a) the aggregate of the Market Value of the Ships then subject to a Mortgage; plus

(b) the net realisable value of any additional security previously provided under this Clause

(

Security cover

),

is below 125 per cent. of the Loan.

15.2 Provision of additional security; prepayment

If the Agent serves a notice on the Borrowers under Clause

 (

Minimum required security

cover

), the Borrowers shall prepay such part at least of the Loan as will eliminate the shortfall

on or before the date falling one month after the date on which the Agent's notice is served

under Clause

 (

Minimum required security cover

) (the "

Prepayment Date

") unless at least 1

Business Day before the Prepayment Date the Borrowers have provided additional security

which, in the opinion of the Majority Lenders, has a net realisable value at least equal to the

shortfall and is documented in such terms as the Agent may, with the authorisation of the

Majority Lenders, approve or require. 

15.3 Valuation of Ships

The Market Value of a Ship (or any other Fleet Vessel) at any date during the Security Period

is that shown by a valuation to be prepared:

(a) as at a date not more than 14 days previously;

(b) an Approved Broker (selected by the Borrowers and appointed by the Agent);

(c) with or without physical inspection of the Ship (as the Agent may require);

(d) on the basis of a sale for prompt delivery for cash on normal arm's length commercial

terms as between a willing seller and a willing buyer, free of any existing charter or

other contract of employment; and

(e) after deducting the estimated amount of the usual and reasonable expenses which

would be incurred in connection with the sale,

Provided that

 if the Agent reasonably determines that the Market Value of the Ship shown by

a valuation prepared in accordance with this Clause

 (

Valuation of Ships

) does not accurately

reflect the value of that Ship, it shall have the right to appoint (at the Borrowers ' expense) a

second Approved Broker to provide a valuation of that Ship addressed to the Agent and

prepared in accordance with the terms of this Agreement and the Market Value of that Ship

shall be the arithmetic average of the two valuations.

15.4 Value of additional security

The net realisable value of any additional security which is provided under Clause

 (

Provision

of additional security; prepayment

) shall be determined as follows:

(a) if it consists of a Security Interest over a vessel shall be that shown by a valuation complying

with the requirements of Clause

 (

Valuation of Ships

); and

(b) if it consists of cash, the US Dollar amount thereof.

15.5 Valuations binding

Any valuation under Clauses

 (

Provision of additional security; prepayment

),

 (

Valuation of

Ships

) or

 (

Value of additional security

) shall be binding and conclusive as regards the

Borrowers, as shall be any valuation which the Majority Lenders make of any additional

security which does not consist of or include a Security Interest.

15.6 Provision of information

The Borrowers shall promptly provide the Agent and the Approved Broker acting under Clauses

 (

Valuation of Ships

) or

 (

Value of additional security

) with any information which the Agent

or the Approved Broker may request for the purposes of the valuation; and, if the Borrowers

fail to provide the information by the date specified in the request, the valuation may be made

on any basis and assumptions which the Approved Broker or the Majority Lenders (or the

expert appointed by them) consider prudent.

15.7 Payment of valuation expenses

Without prejudice to the generality of the Borrowers' obligations under Clauses

 (

Costs of

negotiation, preparation etc

.),

 (

Costs of variations, amendments, enforcement etc

.) and

(

Miscellaneous indemnities

), the Borrowers shall, on demand, pay the Agent the amount of the

fees and expenses of the Approved Broker instructed by the Agent under this Clause and all

legal and other expenses incurred by any Creditor Party in connection with any matter arising

out of this Clause (provided that no more than one valuation per Ship subject to a Mortgage

per year and, if required by the Agent pursuant to Clause

 (

Valuation of Ships

), one additional

valuation per such Ship per year shall be payable by the Borrowers, save for if an Event of

Default has occurred which is continuing in which case the Borrowers shall be liable to pay for

all valuations that take place during the period such Event of Default is continuing) and all legal

and other expenses incurred by any Creditor Party in connection with any matter arising out

of this Clause.

15.8 Application of prepayment

Clause

Application of partial prepayment

) shall apply in relation to any prepayment pursuant

to Clause

 (

Security cover

).

16 PAYMENTS AND CALCULATIONS 

16.1 Currency and method of payments

All payments to be made by the Lenders or by any Borrower under a Finance Document shall

be made to the Agent or to the Security Trustee, in the case of an amount payable to it:

(a) by not later than 11.00 a.m. (New York City time) on the due date;

(b) in same day Dollar funds settled through the New York Clearing House Interbank Payments

System (or in such other Dollar funds and/or settled in such other manner as the Agent shall

specify as being customary at the time for the settlement of international transactions of the

type contemplated by this Agreement); 

(c) in the case of an amount payable by a Lender to the Agent or by a Borrower to the Agent or

any Lender, to such account as the Agent may from time to time notify to the Borrowers and

the other Creditor Parties; and 

(d) in the case of an amount payable to the Security Trustee, to such account as it may from time

to time notify to the Borrowers and the other Creditor Parties.

16.2 Payment on non-Business Day

If any payment by any Borrower under a Finance Document would otherwise fall due on a day

which is not a Business Day:

(a) the due date shall be extended to the next succeeding Business Day; or

(b) if the next succeeding Business Day falls in the next calendar Month, the due date shall be

brought forward to the immediately preceding Business Day,

and interest shall be payable during any extension under paragraph

 at the rate payable on

the original due date.

16.3 Basis for calculation of periodic payments

All interest and commitment fee and any other payments under any Finance Document which

are of an annual or periodic nature shall accrue from day to day and shall be calculated on the

basis of the actual number of days elapsed and a 360 day year.

16.4 Distribution of payments to Creditor Parties

Subject to Clauses

 (

Permitted deductions by Agent

),

 (

Agent only obliged to pay when

monies received

) and

 (

Refund to Agent of monies not received

):

(a) any amount received by the Agent under a Finance Document for distribution or remittance

to a Lender, the Swap Bank or the Security Trustee shall be made available by the Agent to that

Lender, the Swap Bank or, as the case may be, the Security Trustee by payment, with funds

having the same value as the funds received, to such account as the Lender, the Swap Bank or

the Security Trustee may have notified to the Agent not less than five Business Days previously;

and

(b) amounts to be applied in satisfying amounts of a particular category which are due to the

Lenders and/or the Swap Bank generally shall be distributed by the Agent to each Lender and

the Swap Bank pro rata to the amount in that category which is due to it.

16.5 Permitted deductions by Agent

Notwithstanding any other provision of this Agreement or any other Finance Document, the

Agent may, before making an amount available to a Lender or the Swap Bank, deduct and

withhold from that amount any sum which is then due and payable to the Agent from that

Lender or the Swap Bank under any Finance Document or any sum which the Agent is then

entitled under any Finance Document to require that Lender or the Swap Bank to pay on

demand.

16.6 Agent only obliged to pay when monies received

Notwithstanding any other provision of this Agreement or any other Finance Document, the

Agent shall not be obliged to make available to any Borrower or any Lender or the Swap Bank

any sum which the Agent is expecting to receive for remittance or distribution to that Borrower

or that Lender or the Swap Bank until the Agent has satisfied itself that it has received that

sum.

16.7 Refund to Agent of monies not received

If and to the extent that the Agent makes available a sum to a Borrower or a Lender or the

Swap Bank, without first having received that sum, that Borrower or (as the case may be) the

Lender or the Swap Bank concerned shall, on demand:

(a) refund the sum in full to the Agent; and 

(b) pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against

any funding or other loss, liability or expense incurred by the Agent as a result of making the

sum available before receiving it. 

16.8 Agent may assume receipt

Clause

 (

Refund to Agent of monies not received

) shall not affect any claim which the Agent

has under the law of restitution, and applies irrespective of whether the Agent had any form

of notice that it had not received the sum which it made available.

16.9 Creditor Party accounts

Each Creditor Party shall maintain accounts showing the amounts owing to it by the Borrowers

and each Security Party under the Finance Documents and all payments in respect of those

amounts made by the Borrowers and any Security Party.

16.10 Agent's memorandum account

The Agent shall maintain a memorandum account showing the amounts advanced by the

Lenders and all other sums owing to the Agent, the Security Trustee and each Lender from the

Borrowers and each Security Party under the Finance Documents and all payments in respect

of those amounts made by the Borrowers and any Security Party.

16.11 Accounts prima facie evidence

If any accounts maintained under Clauses

 (

Creditor Party accounts

) and

 (

Agent's

memorandum account

) show an amount to be owing by a Borrower or a Security Party to a

Creditor Party, those accounts shall be prima facie evidence that that amount is owing to that

Creditor Party.

17 APPLICATION OF RECEIPTS 

17.1 Normal order of application

Except as any Finance Document may otherwise provide, any sums which are received or

recovered by any Creditor Party under or by virtue of any Finance Document shall be applied:

(a) FIRST: in or towards satisfaction of any amounts then due and payable under the Finance

Documents in the following order and proportions:

(i) first, in or towards satisfaction pro rata of all amounts then due and payable to the

Creditor Parties under the Finance Documents other than those amounts referred to

at paragraphs

 and

 (including, but without limitation, all amounts payable by any

Borrower under Clauses

 (

Fees and expenses

),

 (

Indemnities

) and

 (

No set-off or Tax

Deduction

) of this Agreement or by any Borrower or any Security Party under any

corresponding or similar provision in any other Finance Document);

(ii) secondly, in or towards satisfaction pro rata of any and all amounts of interest or

default interest payable to the Creditor Parties under the Finance Documents (and, for

this purpose, the expression "

interest

" shall include any net amount which a Borrower

shall have become liable to pay or deliver under section 2(e) (

Obligations

) of the

Master Agreement but shall have failed to pay or deliver to the Swap Bank at the time

of application or distribution under this Clause

 (

Application of receipts

)); and

(iii) thirdly, in or towards satisfaction pro rata of the Loan and the Swap Exposure (in the

case of the latter, calculated as at the actual Early Termination Date applying to each

particular Designated Transaction, or if no such Early Termination Date shall have

occurred, calculated as if an Early Termination Date occurred on the date of application

or distribution hereunder);

(b) SECONDLY: in retention of an amount equal to any amount not then due and payable under

any Finance Document but which the Agent, by notice to the Borrowers, the Security Parties

and the other Creditor Parties, states in its opinion will either or may become due and payable

in the future and, upon those amounts becoming due and payable, in or towards satisfaction

of them in accordance with the provisions of Clause

 (

Normal order of application

); and

(c) THIRDLY: any surplus shall be paid to the Borrowers or to any other person appearing to be

entitled to it.

17.2 Variation of order of application

The Agent may, with the authorisation of the Majority Lenders and the Swap Bank, by notice

to the Borrowers, the Security Parties and the other Creditor Parties provide for a different

manner of application from that set out in Clause

 (

Application of receipts

) either as regards

a specified sum or sums or as regards sums in a specified category or categories.

17.3 Notice of variation of order of application

The Agent may give notices under Clause

 (

Variation of order of application

) from time to

time; and such a notice may be stated to apply not only to sums which may be received or

recovered in the future, but also to any sum which has been received or recovered on or after

the third Business Day before the date on which the notice is served. 

17.4 Appropriation rights overridden

This Clause

 (

Application of receipts

) and any notice which the Agent gives under Clause

(

Variation of order of application

) shall override any right of appropriation possessed, and any

appropriation made, by any Borrower or any Security Party.

18 APPLICATION OF EARNINGS

18.1 Payment of Earnings 

Each Borrower undertakes with each Creditor Party to ensure that, throughout the Security

Period (and subject only to the provisions of the General Assignments) all Earnings of the Ship

owned by it (including but not limited to any sale and/or insurance proceeds) are paid to the

Earnings Account for that Ship.

18.2 Location of accounts

Each Borrower shall promptly:

(a) comply with any requirement of the Agent as to the location or re location of its Earnings

Account; and

(b) execute any documents which the Agent specifies to create or maintain in favour of the

Security Trustee a Security Interest over (and/or rights of set-off, consolidation or other rights

in relation to) its Earnings Account.

18.3 Debits for expenses etc.

The Agent shall be entitled (but not obliged) from time to time to debit any Earnings Account

without prior notice in order to discharge any amount due and payable under Clause

 or

 to

a Creditor Party or payment of which any Creditor Party has become entitled to demand under

Clause

 (

Fees and expenses

) or

 (

Indemnities

).

18.4 Borrowers' obligations unaffected

The provisions of this Clause

 (

Application of Earnings

) do not affect:

(a) the liability of the Borrowers to make payments of principal and interest on the due dates; or

(b) any other liability or obligation of the Borrowers or any Security Party under any Finance

Document. 

18.5 Earnings Accounts balances

Subject to the other terms of this Agreement (including, without limitation, the terms of this

Clause

Application of Earnings

)), the monies on the Earnings Account shall be freely available

to the Borrowers to be used in accordance with and in compliance with the terms and

conditions of this Agreement subject to no Event of Default having occurred which is

continuing and the Agent having given notice to the Borrowers that such monies shall not be

freely available as a result of such Event of Default.

19 EVENTS OF DEFAULT 

19.1 Events of Default

An Event of Default occurs if:

(a) any Borrower or any Security Party fails to pay when due or (if so payable) on demand any sum

payable under a Finance Document or under any document relating to a Finance Document;

or

(b) any breach occurs of Clauses

 (

Waiver of conditions precedent

),

 (

No immunity

),

(

Sanctions

),

 (

Title; negative pledge

),

 (

No disposal of assets

),

 (

Consents

),

 (

Know your

customer

), 11.20 (

Bribery and anti-corruption laws

),

 (

Sanctions

), 11.22 (

Use of proceeds

),

(

Maintenance of status)

,

 (

Negative undertakings

),

 (

Maintenance of obligatory insurances

),

 (

Terms of obligatory insurances

),

 (

Minimum required security cover

),

 (

Provision of

additional security; prepayment

) and 12.4 (

Compliance Check)

 of the Corporate Guarantee; or

(c) any breach by any Borrower or any Security Party occurs of any provision of a Finance

Document (other than a breach covered by paragraphs

 or

) which, in the opinion of the

Majority Lenders, is capable of remedy, and such default continues un-remedied ten days after

written notice from the Agent requesting action to remedy the same; or

(d) (subject to any applicable grace period specified in the Finance Document) any breach by any

Borrower or any Security Party occurs of any provision of a Finance Document (other than a

breach falling within paragraphs

,

 or

); or

(e) any representation, warranty or statement made or repeated by, or by an officer of, the

Borrower or a Security Party in a Finance Document or in a Drawdown Notice or any other

notice or document relating to a Finance Document is materially untrue or misleading when it

is made or repeated; or

(f) any of the following occurs in relation to any Financial Indebtedness of a Relevant Person (in

the case of all Relevant Persons (taken as a whole) exceeding in aggregate $10,000,000 (or the

equivalent in any other currency) at any relevant time

Provided that

 in the case of each

Borrower, individually, any Financial Indebtedness exceeding $500,000 (or the equivalent in

any other currency)):

(i) any Financial Indebtedness of a Relevant Person is not paid when due; or

(ii) any Financial Indebtedness of a Relevant Person becomes due and payable or capable

of being declared due and payable prior to its stated maturity date as a consequence

of any event of default; or

(iii) a lease, hire purchase agreement or charter creating any Financial Indebtedness of a

Relevant Person is terminated by the lessor or owner or becomes capable of being

terminated as a consequence of any termination event; or

(iv) any overdraft, loan, note issuance, acceptance credit, letter of credit, guarantee,

foreign exchange or other facility, or any swap or other derivative contract or

transaction, relating to any Financial Indebtedness of a Relevant Person ceases to be

available or becomes capable of being terminated as a result of any event of default,

or cash cover is required, or becomes capable of being required, in respect of such a

facility as a result of any event of default; or

(v) any Security Interest securing any Financial Indebtedness of a Relevant Person

becomes enforceable; or

(g) any of the following occurs in relation to a Relevant Person:

(i) a Relevant Person becomes, in the opinion of the Majority Lenders, unable to pay its

debts as they fall due; or

(ii) any assets of a Relevant Person are subject to any form of execution, attachment,

arrest, sequestration or distress in respect of a sum of, or sums exceeding, in

aggregate, in the case of all Relevant Persons (taken as a whole) $10,000,000 (or the

equivalent in any other currency) at any relevant time 

Provided that

 in the case of

each Borrower, individually, any sum of, or sums exceeding, in aggregate $500,000 (or

the equivalent in any other currency);

(iii) any administrative or other receiver is appointed over any asset of a Relevant Person;

or

(iv) an administrator is appointed (whether by the court or otherwise) in respect of a

Relevant Person; or

(v) any formal declaration of bankruptcy or any formal statement to the effect that a

Relevant Person is insolvent or likely to become insolvent is made by a Relevant Person

or by the directors of a Relevant Person or, in any proceedings, by a lawyer acting for

a Relevant Person; or 

(vi) a provisional liquidator is appointed in respect of a Relevant Person, a winding up order

is made in relation to a Relevant Person or a winding up resolution is passed by a

Relevant Person; or 

(vii) a resolution is passed, an administration notice is given or filed, an application or

petition to a court is made or presented or any other step is taken by (aa) a Relevant

Person, (bb) the members or directors of a Relevant Person, (cc) a holder of Security

Interests which together relate to all or substantially all of the assets of a Relevant

Person, or (dd) a government minister or public or regulatory authority of a Pertinent

Jurisdiction for or with a view to the winding up of that or another Relevant Person or

the appointment of a provisional liquidator or administrator in respect of that or

another Relevant Person, or that or another Relevant Person ceasing or suspending

business operations or payments to creditors, save that this paragraph does not apply

to a fully solvent winding up of a Relevant Person other than a Borrower or the

Corporate Guarantor which is, or is to be, effected for the purposes of an

amalgamation or reconstruction previously approved by the Majority Lenders and

effected not later than three months after the commencement of the winding up; or

(viii) an administration notice is given or filed, an application or petition to a court is made

or presented or any other step is taken by a creditor of a Relevant Person (other than

a holder of Security Interests which together relate to all or substantially all of the

assets of a Relevant Person) for the winding up of a Relevant Person or the

appointment of a provisional liquidator or administrator in respect of a Relevant

Person in any Pertinent Jurisdiction, unless the proposed winding up, appointment of

a provisional liquidator or administration is being contested in good faith, on

substantial grounds and not with a view to some other insolvency law procedure being

implemented instead and either (aa) the application or petition is dismissed or

withdrawn within 30 days of being made or presented, or (bb) within 30 days of the

administration notice being given or filed, or the other relevant steps being taken,

other action is taken which will ensure that there will be no administration and (in both

cases (aa) or (bb)) the Relevant Person will continue to carry on business in the

ordinary way and without being the subject of any actual, interim or pending

insolvency law procedure; or

(ix) a Relevant Person or its directors take any steps (whether by making or presenting an

application or petition to a court, or submitting or presenting a document setting out

a proposal or proposed terms, or otherwise) with a view to obtaining, in relation to

that or another Relevant Person, any form of moratorium, suspension or deferral of

payments, reorganisation of debt (or certain debt) or arrangement with all or a

substantial proportion (by number or value) of creditors or of any class of them or any

such moratorium, suspension or deferral of payments, reorganisation or arrangement

is effected by court order, by the filing of documents with a court, by means of a

contract or in any other way at all; or

(x) any meeting of the members or directors, or of any committee of the board or senior

management, of a Relevant Person is held or summoned for the purpose of

considering a resolution or proposal to authorise or take any action of a type described

in paragraphs

 to

 or a step preparatory to such action, or (with or without such a

meeting) the members, directors or such a committee resolve or agree that such an

action or step should be taken or should be taken if certain conditions materialise or

fail to materialise; or

(xi) in a country other than England, any event occurs, any proceedings are opened or

commenced or any step is taken which, in the opinion of the Majority Lenders is similar

to any of the foregoing; or

(h) any Borrower ceases or suspends carrying on its business or a part of its business which, in the

opinion of the Majority Lenders, is material in the context of this Agreement; or

(i) it becomes unlawful in any Pertinent Jurisdiction or impossible:

(i) for any Borrower, the Corporate Guarantor or any Security Party to discharge any

liability under a Finance Document or to comply with any other obligation which the

Majority Lenders consider material under a Finance Document;

(ii) for the Agent, the Security Trustee, the Lenders or the Swap Bank to exercise or

enforce any right under, or to enforce any Security Interest created by, a Finance

Document; or

(j) any official consent necessary to enable any Borrower to own, operate or charter the Ship

owned by it or to enable any Borrower or any Security Party to comply with any provision

which the Majority Lenders consider material of a Finance Document is not granted, expires

without being renewed, is revoked or becomes liable to revocation or any condition of such a

consent is not fulfilled; or 

(k) it appears to the Majority Lenders that, without their prior consent, a change has occurred or

probably has occurred after the date of this Agreement in the ownership of any of the shares

in a Borrower or the Approved Manager; or

(l) any provision which the Majority Lenders consider material of a Finance Document proves to

have been or becomes invalid or unenforceable, or a Security Interest created by a Finance

Document proves to have been or becomes invalid or unenforceable or such a Security Interest

proves to have ranked after, or loses its priority to, another Security Interest or any other third

party claim or interest; or

(m) the security constituted by a Finance Document is in any way imperilled or in jeopardy; or

(n) without the prior consent of the Lenders, the shares of the Corporate Guarantor cease to be

listed on the New York Stock Exchange; or

(o) an Event of Default (as defined in section 14 of the Master Agreement) occurs; or

(p) the Master Agreement is terminated, cancelled, suspended, rescinded or revoked or otherwise

ceases to remain in full force and effect for any reason except with the consent of the Swap

Bank; or

(q) any other event occurs or any other circumstances arise or develop including, without

limitation:

(i) a change in the financial position, state of affairs or prospects of any Relevant Person;

or

(ii) any accident or other event involving any Ship or another vessel owned, chartered or

operated by a Relevant Person,

in the light of which the Majority Lenders consider that there is a significant risk that any

Borrower or Corporate Guarantor is, or will later become, unable to discharge its liabilities

under the Finance Documents as they fall due.

19.2 Actions following an Event of Default

On, or at any time after, the occurrence of an Event of Default:

(a) the Agent may, and if so instructed by the Majority Lenders, the Agent shall:

(i) serve on the Borrowers a notice stating that all or part of the Commitments and of the

other obligations of each Lender to the Borrowers under this Agreement are cancelled;

and/or

(ii) serve on the Borrowers a notice stating that all or part of the Loan together with

accrued interest and all other amounts accrued or owing under this Agreement are

immediately due and payable or are due and payable on demand; and/or

(iii) take any other action which, as a result of the Event of Default or any notice served

under paragraph

 or

, the Agent and/or the Lenders are entitled to take under any

Finance Document or any applicable law; and/or

(b) the Security Trustee may, and if so instructed by the Agent, acting with the authorisation of

the Majority Lenders, the Security Trustee shall take any action which, as a result of the Event

of Default or any notice served under paragraph

 or

, the Security Trustee, the Agent and/or

the Lenders and/or the Swap Bank are entitled to take under any Finance Document or any

applicable law.

19.3 Termination of Commitments

On the service of a notice under Clause

 (

Actions following an Event of Default

), the

Commitments and all other obligations of each Lender to the Borrowers under this Agreement

shall be cancelled.

19.4 Acceleration of Loan

On the service of a notice under Clause

 (

Actions following an Event of Default

), all or, as the

case may be, the part of the Loan specified in the notice together with accrued interest and all

other amounts accrued or owing from the Borrowers or any Security Party under this

Agreement and every other Finance Document shall become immediately due and payable or,

as the case may be, payable on demand.

19.5 Multiple notices; action without notice

The Agent may serve notices under Clauses

 and

 (

Actions following an Event of Default

)

simultaneously or on different dates and it and/or the Security Trustee may take any action

referred to in Clause

 (

Actions following an Event of Default

) if no such notice is served or

simultaneously with or at any time after the service of both or either of such notices.

19.6 Notification of Creditor Parties and Security Parties

The Agent shall send to each Lender, the Swap Bank, the Security Trustee and each Security

Party a copy or the text of any notice which the Agent serves on the Borrowers under Clause

(

Actions following an Event of Default

); but the notice shall become effective when it is served

on the Borrowers, and no failure or delay by the Agent to send a copy or the text of the notice

to any other person shall invalidate the notice or provide any Borrower or any Security Party

with any form of claim or defence.

19.7 Creditor Party's rights unimpaired

Nothing in this Clause shall be taken to impair or restrict the exercise of any right given to

individual Lenders or the Swap Bank under a Finance Document or the general law; and, in

particular, this Clause is without prejudice to Clause

 (

Interest of Lenders and Swap Bank

several

). 

19.8 Exclusion of Creditor Party liability

No Creditor Party, and no receiver or manager appointed by the Security Trustee, shall have

any liability to a Borrower or a Security Party:

(a) for any loss caused by an exercise of rights under, or enforcement of a Security Interest created

by, a Finance Document or by any failure or delay to exercise such a right or to enforce such a

Security Interest; or

(b) as mortgagee in possession or otherwise, for any income or principal amount which might have

been produced by or realised from any asset comprised in such a Security Interest or for any

reduction (however caused) in the value of such an asset,

except that this does not exempt a Creditor Party or a receiver or manager from liability for

losses shown to have been directly and mainly caused by the dishonesty or the wilful

misconduct of such Creditor Party's own officers and employees or (as the case may be) such

receiver's or manager's own partners or employees and any other member of the Group.

19.9 Relevant Persons

In this Clause

 (

Events of Default

), a "

Relevant Person

" means a Borrower, the Corporate

Guarantor or a Security Party, and any company which is a subsidiary of the Corporate

Guarantor or a Security Party and any other member of the Group but excluding any company

which is dormant and the value of whose gross assets is $50,000 or less.

19.10 Interpretation

In Clause

Events of Default

), references to an event of default or a termination event include

any event, howsoever described, which is similar to an event of default in a facility agreement

or a termination event in a finance lease; and in Clause

Events of Default

), "

petition

" includes

an application.

19.11 Position of Swap Bank

Neither the Agent nor the Security Trustee shall be obliged, in connection with any action taken

or proposed to be taken under or pursuant to the foregoing provisions of this Clause

, to have

any regard to the requirements of the Swap Bank except to the extent that the Swap Bank is

also a Lender.

20 FEES AND EXPENSES 

20.1 Fees

The Borrowers shall pay to the Agent:

(a) on the date of this Agreement, a non-refundable arrangement fee computed at the rate of one

per cent. of the Total Commitments for distribution among the Lenders pro rata to their

Commitments. 

(b) a commitment fee at a rate equal to 35 per cent. of the Margin per annum on the undrawn

amount of the Total Commitments from time to time. The accrued commitment fee is payable

on the last day of each successive period of three Months which ends during the relevant

Availability Period, on the last day of the relevant Availability Period and, if cancelled, on the

cancelled amount of the relevant Lender's Commitment at the time the cancellation is

effective.

20.2 Costs of negotiation, preparation etc.

The Borrowers shall pay to the Agent on its demand the amount of all expenses incurred by

the Agent or the Security Trustee in connection with the negotiation, preparation, execution

or registration of any Finance Document or any related document or with any transaction

contemplated by a Finance Document or a related document.

20.3 Costs of variations, amendments, enforcement etc.

The Borrowers shall pay to the Agent, on the Agent 's demand, for the account of the Creditor

Party concerned, the amount of all expenses incurred by a Creditor Party in connection with: 

(a) any amendment or supplement to a Finance Document (required for the continuation of the

availability of the Loan or as contemplated under Clause

Changes to reference rates

)), or any

proposal for such an amendment to be made; 

(b) any consent or waiver by the Lenders, the Swap Bank, the Majority Lenders or the Creditor

Party concerned under or in connection with a Finance Document, or any request for such a

consent or waiver;

(c) the valuation of any security provided or offered under Clause

 (

Security Cover

) or any other

matter relating to such security; or

(d) where the Security Trustee, in its absolute opinion, considers that there has been a material

change to the insurances in respect of a Ship, the review of the insurances of that Ship pursuant

to Clause

 (

Review of insurance requirements

); and

(e) any step taken by the Creditor party concerned or the Swap Bank with a view to the protection,

exercise or enforcement of any right or Security Interest created by a Finance Document or for

any similar purpose.

There shall be recoverable under paragraph

 the full amount of all legal expenses, whether

or not such as would be allowed under rules of court or any taxation or other procedure carried

out under such rules.

20.4 Extraordinary management time

The Borrowers shall pay to the Agent on its demand compensation in respect of the reasonable

and documented amount of time which the management of either Servicing Bank has spent in

connection with a matter covered by Clause

 (

Costs of variations, amendments, enforcement

etc.

) and which exceeds the amount of time which would ordinarily be spent in the

performance of the relevant Servicing Bank's routine functions. Any such compensation shall

be based on such reasonable daily or hourly rates as the Agent may notify to the Borrowers

and is in addition to any fee paid or payable to the relevant Servicing Bank.

20.5 Documentary taxes

The Borrowers shall promptly pay any tax payable on or by reference to any Finance

Document, and shall, on the Agent's demand, fully indemnify each Creditor Party against any

claims, expenses, liabilities and losses resulting from any failure or delay by the Borrowers to

pay such a tax.

20.6 Financial Services Authority fees

The Borrowers shall pay to the Agent, on the Agent's demand, for the account of the Lender

concerned the amounts which the Agent from time to time notifies the Borrowers that a

Lender has notified the Agent to be necessary to compensate it for the cost attributable to its

Contribution resulting from the imposition from time to time under or pursuant to the Bank of

England Act 1998 and/or by the Bank of England and/or by the Financial Services Authority (or

other United Kingdom governmental authorities or agencies) of a requirement to pay fees to

the Financial Services Authority calculated by reference to liabilities used to fund its

Contribution.

20.7 Certification of amounts

A notice which is signed by two officers of a Creditor Party, which states that a specified

amount, or aggregate amount, is due to that Creditor Party under this Clause

 and which

indicates (without necessarily specifying a detailed breakdown) the matters in respect of which

the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or

aggregate amount, is due.

21 INDEMNITIES 

21.1 Indemnities regarding borrowing and repayment of Loan

The Borrowers shall fully indemnify the Agent and each Lender on the Agent's demand and the

Security Trustee on its demand in respect of all claims, expenses, liabilities and losses which

are made or brought against or incurred by that Creditor Party, or which that Creditor Party

reasonably and with due diligence estimates that it will incur, as a result of or in connection

with:

(a) a Tranche not being borrowed on the date specified in the Drawdown Notice for any reason

other than a default by the Lender claiming the indemnity; 

(b) the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the

last day of an Interest Period or other relevant period;

(c) any failure (for whatever reason) by the Borrowers to make payment of any amount due under

a Finance Document on the due date or, if so payable, on demand (after giving credit for any

default interest paid by the Borrowers on the amount concerned under Clause

 (

Default

Interest

)) ; and

(d) the occurrence of an Event of Default or a Potential Event of Default and/or the acceleration

of repayment of the Loan under Clause

 (

Events of Default

),

and in respect of any tax (other than tax on its overall net income or a FATCA Deduction) for

which a Creditor Party is liable in connection with any amount paid or payable to that Creditor

Party (whether for its own account or otherwise) under any Finance Document.

21.2 Miscellaneous indemnities

The Borrowers shall fully indemnify each Creditor Party severally on their respective demands

in respect of all claims, expenses, liabilities and losses which may be made or brought against

or incurred by a Creditor Party, in any country, as a result of or in connection with:

(a) any action taken, or omitted or neglected to be taken, under or in connection with any Finance

Document by the Agent, the Security Trustee or any other Creditor Party or by any receiver

appointed under a Finance Document; or

(b) any civil penalty or fine against, and all reasonable costs and expenses (including reasonable

fees of counsel and disbursements) incurred in connection with or the defence thereof by, the

Agent or any other Creditor Party as a result of conduct of any Borrower or any of their

partners, directors, officers, employees, agents or advisors, that violates any Sanctions; or

(c) any other Pertinent Matter,

other than claims, expenses, liabilities and losses which are shown to have been directly and

mainly caused by the dishonesty or wilful misconduct of the officers or employees of the

Creditor Party concerned.

Without prejudice to its generality, this Clause

Miscellaneous indemnities

) covers any claims,

expenses, liabilities and losses which arise, or are asserted, under or in connection with any

law relating to safety at sea, the ISM Code, the ISPS Code or any Environmental Law or any

Sanctions.

21.3 Environmental Indemnity

Without prejudice to its generality, Clause

 (

Miscellaneous indemnities

) covers any claims,

demands, proceedings, liabilities, taxes, losses or expenses of every kind which arise, or are

asserted, under or in connection with any law relating to safety at sea, pollution or the

protection of the environment, the ISM Code or the ISPS Code.

21.4 Currency indemnity

If any sum due from any Borrower or any Security Party to a Creditor Party under a Finance

Document or under any order or judgment relating to a Finance Document has to be converted

from the currency in which the Finance Document provided for the sum to be paid (the

"Contractual Currency") into another currency (the "Payment Currency") for the purpose of:

(a) making or lodging any claim or proof against any Borrower or any Security Party, whether in

its liquidation, any arrangement involving it or otherwise; or

(b) obtaining an order or judgment from any court or other tribunal; or

(c) enforcing any such order or judgment,

the Borrowers shall indemnify the Creditor Party concerned against the loss arising when the

amount of the payment actually received by that Creditor Party is converted at the available

rate of exchange into the Contractual Currency.

In this Clause

Currency indemnity

), the "

available rate of exchange

" means the rate at which

the Creditor Party concerned is able at the opening of business (London time) on the Business

Day after it receives the sum concerned to purchase the Contractual Currency with the

Payment Currency.

This Clause

 (

Currency indemnity

)creates a separate liability of the Borrowers which is distinct

from their other liabilities under the Finance Documents and which shall not be merged in any

judgment or order relating to those other liabilities.

21.5 Application to Master Agreement

For the avoidance of doubt, Clause

 (

Currency indemnity

)does not apply in respect of sums

due from the Borrowers to the Swap Bank under or in connection with the Master Agreement

as to which sums the provisions of section 8 (

Contractual Currency

) of the Master Agreement

shall apply.

21.6 Mandatory Cost

Each Borrower shall, on demand by the Agent, pay to the Agent for the account of the relevant

Lender, such amount which any Lender certifies in a notice to the Agent to be its good faith

determination of the amount necessary to compensate it for complying with:

(a) in the case of a Lender lending from a Facility Office in a Participating Member State, the

minimum reserve requirements (or other requirements having the same or similar purpose) of

the European Central Bank (or any other authority or agency which replaces all or any of its

functions) in respect of loans made from that Facility Office; and

(b) in the case of any Lender lending from a Facility Office in the United Kingdom, any reserve

asset, special deposit or liquidity requirements (or other requirements having the same or

similar purpose) of the Bank of England (or any other governmental authority or agency)

and/or paying any fees to the Financial Conduct Authority and/or the Prudential Regulation

Authority (or any other governmental authority or agency which replaces all or any of their

functions),

which, in each case, is referable to that Lender's participation in the Loan.

21.7 Certification of amounts

A notice which is signed by two officers of a Creditor Party, which states that a specified

amount, or aggregate amount, is due to that Creditor Party under this Clause

 and which

indicates (without necessarily specifying a detailed breakdown) the matters in respect of which

the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or

aggregate amount, is due.

21.8 Sums deemed due to a Lender

For the purposes of this Clause

 (

Indemnities

), a sum payable by the Borrowers to the Agent

or the Security Trustee for distribution to a Lender shall be treated as a sum due to that Lender.

22 NO SET-OFF OR TAX DEDUCTION 

22.1 No deductions

All amounts due from the Borrowers under a Finance Document shall be paid:

(a) without any form of set off, cross-claim or condition; and

(b) free and clear of any tax deduction except a tax deduction which a Borrower is required by law

to make.

22.2 Grossing-up for taxes

If a Borrower is required by law to make a tax deduction from any payment:

(a) that Borrower shall notify the Agent as soon as it becomes aware of the requirement;

(b) that Borrower shall pay the tax deducted to the appropriate taxation authority promptly, and

in any event before any fine or penalty arises; and

(c) the amount due in respect of the payment shall be increased by the amount necessary to

ensure that each Creditor Party receives and retains (free from any liability relating to the tax

deduction) a net amount which, after the tax deduction, is equal to the full amount which it

would otherwise have received.

22.3 Evidence of payment of taxes

Within one month after making any tax deduction, the Borrower concerned shall deliver to the

Agent documentary evidence satisfactory to the Agent that the tax had been paid to the

appropriate taxation authority.

22.4 Exclusion of tax on overall net income

In this Clause

 (

No set-off or Tax Deduction

) "

tax deduction

" means any deduction or

withholding for or on account of any present or future tax except tax on a Creditor Party's

overall net income, other than a FATCA Deduction.

22.5 Application to Master Agreement

For the avoidance of doubt, Clause

 (

No set-off or Tax Deduction

) does not apply in respect of

sums due from the Borrowers to the Swap Bank under or in connection with the Master

Agreement as to which sums the provisions of section 2(d) (

Deduction or Withholding for Tax

)

of the Master Agreement shall apply.

22.6 FATCA Information

(a) Subject to paragraph

 below, each Party shall, within ten Business Days of a reasonable

request by another Party:

(i) confirm to that other Party whether it is:

(A) a FATCA Exempt Party; or

(B) not a FATCA Exempt Party; and

(ii) supply to that other Party such forms, documentation and other information relating

to its status under FATCA as that other Party reasonably requests for the purposes of

that other Party's compliance with FATCA; and

(iii) supply to that other Party such forms, documentation and other information relating

to its status as that other Party reasonably requests for the purposes of that other

Party's compliance with any other law, regulation or exchange of information regime.

(b) If a Party confirms to another Party pursuant to sub-paragraph

 of paragraph

 above that it

is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be

a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

(c) Paragraph

 above shall not oblige any Creditor Party to do anything and sub-paragraph

 of

paragraph

 above shall not oblige any other Party to do anything which would or might in its

reasonable opinion constitute a breach of:

(i) any law or regulation;

(ii) any fiduciary duty; or

(iii) any duty of confidentiality.

(d) If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms,

documentation or other information requested in accordance with sub-paragraphs

 or

 of

paragraph

 above (including, for the avoidance of doubt, where paragraph

 above applies),

then such Party shall be treated for the purposes of the Finance Documents (and payments

under them) as if it is not a FATCA Exempt Party until such time as the Party in question

provides the requested confirmation, forms, documentation or other information.

(e) If a Borrower is a US Tax Obligor, or the Agent reasonably believes that its obligations under

FATCA or any other applicable law or regulation require it, each Lender shall, within ten

Business Days of:

(i) where a Borrower is a US Tax Obligor and the relevant Lender is a Lender as of the date

of this Agreement, the date of this Agreement;

(ii) where a Borrower is a US Tax Obligor on a date where a transfer is effected under

Clause

 (

Transfer by a Lender

) and the relevant Lender is a Transferee Lender, the

relevant date on which such transfer is effected under Clause

 (

Transfer by a Lender

);

or

(iii) where a Borrower is not a US Tax Obligor, the date of a request from the Agent,

supply to the Agent:

(iv) a withholding certificate on Form W-8, Form W-9 or any other relevant form; or

(v) any withholding statement or other document, authorisation or waiver as the Agent

may require to certify or establish the status of such Lender under FATCA or that other

law or regulation.

(f) The Agent shall provide any withholding certificate, withholding statement, document,

authorisation or waiver it receives from a Lender pursuant to paragraph

 above to the

Borrowers.

(g) If any withholding certificate, withholding statement, document, authorisation or waiver

provided to the Agent by a Lender pursuant to paragraph

 above is or becomes materially

inaccurate or incomplete, that Lender shall promptly update it and provide such updated

withholding certificate, withholding statement, document, authorisation or waiver to the

Agent unless it is unlawful for the Lender to do so (in which case the Lender shall promptly

notify the Agent). The Agent shall provide any such updated withholding certificate,

withholding statement, document, authorisation or waiver to the Borrowers.

(h) The Agent may rely on any withholding certificate, withholding statement, document,

authorisation or waiver it receives from a Lender pursuant to paragraph

 or

 above without

further verification. The Agent shall not be liable for any action taken by it under or in

connection with paragraphs

,

 or

 above.

22.7 FATCA Deduction

(a) Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment

required in connection with that FATCA Deduction, and no Party shall be required to increase

any payment in respect of which it makes such a FATCA Deduction or otherwise compensate

the recipient of the payment for that FATCA Deduction.

(b) Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that

there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom

it is making the payment and, in addition, shall notify each Borrower and the Agent and the

Agent shall notify the other Creditor Parties.

23 ILLEGALITY AND SANCTIONS AFFECTING A LENDER

23.1 Illegality

This Clause

 (

Illegality and Sanctions affecting a Lender

) applies if:

(a) a Lender (the "

Notifying Lender

") notifies the Agent that it has become, or will with effect from

a specified date, become:

(i) unlawful or prohibited as a result of the introduction of a new law, an amendment to

an existing law or a change in the manner in which an existing law is or will be

interpreted or applied; or 

(ii) contrary to, or inconsistent with, any regulation or Sanctions,

for the Notifying Lender to maintain or give effect to any of its obligations under this

Agreement in the manner contemplated by this Agreement or to determine or charge interest

rates based upon Term SOFR; and

(b) without prejudice to any of the express obligations of the Security Parties under the Finance

Documents, in the opinion of a Lender acting reasonably anything whatsoever is done or

omitted to be done by a Security Party which would result in that Lender being in breach of or

made subject to Sanctions, or at risk of being in breach of or made subject to Sanctions.

23.2 Notification of illegality

The Agent shall promptly notify the Borrowers, the Security Parties, the Security Trustee and

the other Lenders of the notice under Clause

 (

Illegality

) which the Agent receives from the

Notifying Lender.

23.3 Prepayment; termination of Commitment

On the Agent notifying the Borrowers under Clause

 (

Notification of illegality

), the Notifying

Lender's Commitment shall terminate; and thereupon or, if later, on the date specified in the

Notifying Lender's notice under Clause

 (

Illegality

) as the date on which the notified event

would become effective the Borrowers shall prepay the Notifying Lender's Contribution in

accordance with Clause

 (

Repayment and prepayment

).

23.4 Mitigation

If circumstances arise which would result in a notification under Clause

 (

Illegality

) then,

without in any way limiting the rights of the Notifying Lender under Clause

 (

Prepayment;

termination of Commitment

), the Notifying Lender shall use reasonable endeavours to transfer

its obligations, liabilities and rights under this Agreement and the Finance Documents to

another office or financial institution not affected by the circumstances but the Notifying

Lender shall not be under any obligation to take any such action if, in its opinion, to do would

or might:

(a) have an adverse effect on its business, operations or financial condition; or

(b) involve it in any activity which is unlawful or prohibited or any activity that is contrary to, or

inconsistent with, any regulation; or

(c) involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage.

24 INCREASED COSTS 

24.1 Increased costs

This Clause

 (

Increased costs

) applies if a Lender (the "

Notifying Lender

") notifies the Agent

that the Notifying Lender considers that as a result of:

(a) the introduction or alteration after the date of this Agreement of a law or an alteration after

the date of this Agreement in the manner in which a law is interpreted or applied (disregarding

any effect which relates to the application to payments under this Agreement of a tax on the

Lender's overall net income); or

(b) complying with any regulation (including any which relates to capital adequacy or liquidity

controls or which affects the manner in which the Notifying Lender allocates capital resources

to its obligations under this Agreement) which is introduced, or altered, or the interpretation

or application of which is altered, after the date of this Agreement; or

(c) complying with any regulation (including the "International Convergence of Capital

Measurement and Capital Standards, a Revised Framework" published by the Basel Committee

on Banking Supervision in June 2004, in the form existing on the date of this Agreement and

any other regulation which relates to capital adequacy or liquidity controls or which affects the

manner in which the Notifying Lender allocates capital resources to its obligations under this

Agreement) which is introduced, or altered, or the interpretation or application of which is

altered, after the date of this Agreement; or

(d) the introduction, implementation, application, administration or compliance with Basel III or

CRD IV, or any law or regulation which implements or applies Basel III or CRD IV (regardless of

the date on which it is enacted, adopted or issued and regardless of whether any such

implementation, application or compliance is by a government, regulator, the Creditor Party

or any of its affiliates) after the date of this Agreement,

the Notifying Lender (or a parent company of it) has incurred or will incur an "

increased

cost

".

24.2 Meaning of "increased costs"

In this Clause

 (

Increased costs

), "

increased costs

" means, in relation to a Notifying Lender:

(a) an additional or increased cost incurred as a result of, or in connection with, the

Notifying Lender having entered into, or being a party to, this Agreement or a Transfer

Certificate, of funding or maintaining its Commitment or Contribution or performing

its obligations under this Agreement, or of having outstanding all or any part of its

Contribution or other unpaid sums; 

(b) a reduction in the amount of any payment to the Notifying Lender under this

Agreement or in the effective return which such a payment represents to the Notifying

Lender or on its capital;

(c) an additional or increased cost of funding all or maintaining all or any of the advances

comprised in a class of advances formed by or including the Notifying Lender's

Contribution or (as the case may require) the proportion of that cost attributable to

the Contribution; or

(d) a liability to make a payment, or a return foregone, which is calculated by reference

to any amounts received or receivable by the Notifying Lender under this Agreement,

but not an item attributable to a change in the rate of tax on the overall net income of the

Notifying Lender (or a parent company of it) or an item compensated for by any payment made

pursuant to Clause

 (

Mandatory cost

) or an item covered by the indemnity for tax in Clause

(

Indemnities regarding borrowing and repayment of Loan

) or by Clause

 (

No set-off or Tax

Deduction

) or a FATCA Deduction.

For the purposes of this Clause

 (

Meaning of "increased costs"

) the Notifying Lender may in

good faith allocate or spread costs and/or losses among its assets and liabilities (or any class

of its assets and liabilities) on such basis as it considers appropriate.

24.3 Notification to Borrowers of claim for increased costs

The Agent shall promptly notify the Borrowers and the Security Parties of the notice which the

Agent received from the Notifying Lender under Clause

 (

Increased costs

).

24.4 Payment of increased costs

The Borrowers shall pay to the Agent, on the Agent's demand, for the account of the Notifying

Lender the amounts which the Agent from time to time notifies the Borrowers that the

Notifying Lender has specified to be necessary to compensate the Notifying Lender for the

increased cost.

24.5 Notice of prepayment

If the Borrowers are not willing to continue to compensate the Notifying Lender for the

increased cost under Clause

 (

Payment of increased costs

), the Borrowers may give the Agent

not less than 14 days' notice of its intention to prepay the Notifying Lender's Contribution at

the end of an Interest Period.

24.6 Prepayment; termination of Commitment

A notice under Clause

 (

Notice of prepayment

) shall be irrevocable; the Agent shall promptly

notify the Notifying Lender of the Borrowers' notice of intended prepayment; and:

(a) on the date on which the Agent serves that notice, the Commitment of the Notifying Lender

shall be cancelled; and

(b) on the date specified in its notice of intended prepayment, the Borrowers shall prepay (subject

to any Break Costs, without premium or penalty) the Notifying Lender's Contribution, together

with accrued interest thereon at the applicable rate plus the Margin and the Mandatory Cost

(if any).

24.7 Application of prepayment

Clause

 (

Repayment and Prepayment

) shall apply in relation to the prepayment.

25 SET OFF

25.1 Application of credit balances

Each Creditor Party may without prior notice:

(a) apply any balance (whether or not then due) which at any time stands to the credit of any

account in the name of a Borrower at any office in any country of that Creditor Party in or

towards satisfaction of any sum then due from that Borrower to that Creditor Party under any

of the Finance Documents; and

(b) for that purpose:

(i) break, or alter the maturity of, all or any part of a deposit of that Borrower;

(ii) convert or translate all or any part of a deposit or other credit balance into Dollars; and

(iii) enter into any other transaction or make any entry with regard to the credit balance

which the Creditor Party concerned considers appropriate. 

25.2 Existing rights unaffected

No Creditor Party shall be obliged to exercise any of its rights under Clause

 (

Application of

credit balances

); and those rights shall be without prejudice and in addition to any right of set

off, combination of accounts, charge, lien or other right or remedy to which a Creditor Party is

entitled (whether under the general law or any document).

25.3 Sums deemed due to a Lender

For the purposes of this Clause

 (

Set-off

), a sum payable by the Borrowers to the Agent or the

Security Trustee for distribution to, or for the account of, a Lender shall be treated as a sum

due to that Lender; and each Lender's proportion of a sum so payable for distribution to, or

for the account of, the Lenders shall be treated as a sum due to such Lender.

25.4 No Security Interest

This Clause

 (

Set-off

) gives the Creditor Parties a contractual right of set-off only, and does

not create any equitable charge or other Security Interest over any credit balance of any

Borrower. 

26 TRANSFERS AND CHANGES IN FACILITY OFFICES

26.1 Transfer by Borrowers

No Borrower may, without the consent of the Agent, given on the instructions of all the

Lenders transfer any of its rights, liabilities or obligations under any Finance Document.

26.2 Transfer by a Lender

Subject to Clause

 (

Effective Date of Transfer Certificate

), a Lender (the "

Transferor Lender

")

may at any time cause: 

(a) its rights in respect of all or part of its Contribution; or

(b) its obligations in respect of all or part of its Commitment; or

(c) a combination of (a) and (b),

to be (in the case of its rights) transferred to, or (in the case of its obligations) assumed by,

another bank or financial institution or a trust, fund or other entity which is regularly engaged

in or established for the purpose of making, purchasing or investing in loans, securities or other

financial assets (a "

Transferee Lender

") by delivering to the Agent a completed certificate in

the form set out in

 with any modifications approved or required by the Agent (a "

Transfer

Certificate

") executed by the Transferor Lender and the Transferee Lender. 

However any rights and obligations of the Transferor Lender in its capacity as Agent or Security

Trustee will have to be dealt with separately in accordance with the Agency and Trust Deed.

A transfer pursuant to this Clause

 shall be effected:

(i) without the consent of the Borrowers:

(A) following the occurrence of an Event of Default which is continuing; and/or

(B) if such transfer is to another Lender or an affiliate of a Lender;

(ii) in all other circumstances with the consent of the Borrowers (such consent not to be

unreasonably withheld or delayed) and the Borrowers will be deemed to have given

their consent five Business Days following the request of the Transferor Lender, unless

the consent is expressly refused by the Borrowers within that time.

26.3 Transfer Certificate, delivery and notification

As soon as reasonably practicable after a Transfer Certificate is delivered to the Agent, it shall

(unless it has reason to believe that the Transfer Certificate may be defective):

(a) sign the Transfer Certificate on behalf of itself, the Borrowers, the Security Parties, the Security

Trustee, each of the other Lenders and the Swap Bank;

(b) on behalf of the Transferee Lender, send to each Borrower and each Security Party letters or

faxes notifying them of the Transfer Certificate and attaching a copy of it; and

(c) send to the Transferee Lender copies of the letters or faxes sent under paragraph

 above,

but the Agent shall only be obliged to execute a Transfer Certificate delivered to it by the

Transferor Lender and the Transferee Lender once it is satisfied it has complied with all

necessary "know your customer" or other similar checks under all applicable laws and

regulations in relation to the transfer to that Transferee Lender.

26.4 Effective Date of Transfer Certificate

A Transfer Certificate becomes effective on the date, if any, specified in the Transfer Certificate

as its effective date, 

Provided that

 it is signed by the Agent under Clause

 (

Transfer

Certificate, delivery and notification

) on or before that date.

26.5 No transfer without Transfer Certificate

Except as provided in Clause

 (

Security over Lenders' rights

), no assignment or transfer of any

right or obligation of a Lender under any Finance Document is binding on, or effective in

relation to, any Borrower, any Security Party, the Agent or the Security Trustee unless it is

effected, evidenced or perfected by a Transfer Certificate. 

26.6 Lender re-organisation; waiver of Transfer Certificate

However, if a Lender enters into any merger, de-merger or other reorganisation as a result of

which all its rights or obligations vest in another person (the "

successor

"), the Agent may, if it

sees fit, by notice to the successor and the Borrowers and the Security Trustee waive the need

for the execution and delivery of a Transfer Certificate; and, upon service of the Agent's notice,

the successor shall become a Lender with the same Commitment and Contribution as were

held by the predecessor Lender.

26.7 Effect of Transfer Certificate

A Transfer Certificate takes effect in accordance with English law as follows:

(a) to the extent specified in the Transfer Certificate, all rights and interests (present, future or

contingent) which the Transferor Lender has under or by virtue of the Finance Documents are

assigned to the Transferee Lender absolutely, free of any defects in the Transferor Lender's

title and of any rights or equities which any Borrower or any Security Party had against the

Transferor Lender;

(b) the Transferor Lender's Commitment is discharged to the extent specified in the Transfer

Certificate;

(c) the Transferee Lender becomes a Lender with the Contribution previously held by the

Transferor Lender and a Commitment of an amount specified in the Transfer Certificate;

(d) the Transferee Lender becomes bound by all the provisions of the Finance Documents which

are applicable to the Lenders generally, including those about pro rata sharing and the

exclusion of liability on the part of, and the indemnification of, the Agent and the Security

Trustee and, to the extent that the Transferee Lender becomes bound by those provisions

(other than those relating to exclusion of liability), the Transferor Lender ceases to be bound

by them;

(e) any part of the Loan which the Transferee Lender advances after the Transfer Certificate's

effective date ranks in point of priority and security in the same way as it would have ranked

had it been advanced by the transferor, assuming that any defects in the transferor's title and

any rights or equities of any Borrower or any Security Party against the Transferor Lender had

not existed;

(f) the Transferee Lender becomes entitled to all the rights under the Finance Documents which

are applicable to the Lenders generally, including but not limited to those relating to the

Majority Lenders and those under Clause

 (

Market disruption

) and Clause

 (

Fees and

expenses

), and to the extent that the Transferee Lender becomes entitled to such rights, the

Transferor Lender ceases to be entitled to them; and

(g) in respect of any breach of a warranty, undertaking, condition or other provision of a Finance

Document or any misrepresentation made in or in connection with a Finance Document, the

Transferee Lender shall be entitled to recover damages by reference to the loss incurred by it

as a result of the breach or misrepresentation, irrespective of whether the original Lender

would have incurred a loss of that kind or amount.

The rights and equities of any Borrower or any Security Party referred to above include, but

are not limited to, any right of set off and any other kind of cross claim.

26.8 Maintenance of register of Lenders

During the Security Period the Agent shall maintain a register in which it shall record the name,

Commitment, Contribution and administrative details (including the Facility Office) from time

to time of each Lender holding a Transfer Certificate and the effective date (in accordance with

Clause

 (

Effective Date of Transfer Certificate

)) of the Transfer Certificate; and the Agent shall

make the register available for inspection by any Lender, the Security Trustee and the

Borrowers during normal banking hours, subject to receiving at least three Business Days' prior

notice.

26.9 Reliance on register of Lenders

The entries on that register shall, in the absence of manifest error, be conclusive in determining

the identities of the Lenders and the amounts of their Commitments and Contributions and

the effective dates of Transfer Certificates and may be relied upon by the Agent and the other

parties to the Finance Documents for all purposes relating to the Finance Documents.

26.10 Authorisation of Agent to sign Transfer Certificates

Each Borrower, the Security Trustee, each Lender and the Swap Bank irrevocably authorise the

Agent to sign Transfer Certificates on its behalf.

26.11 Registration fee

In respect of any Transfer Certificate, the Agent shall be entitled to recover a registration fee

of $5,000 from the Transferor Lender or (at the Agent's option) the Transferee Lender.

26.12 Sub-participation; subrogation assignment

A Lender may sub participate all or any part of its rights and/or obligations under or in

connection with the Finance Documents without the consent of, or any notice to, any

Borrower, any Security Party, the Agent or the Security Trustee or any other Creditor Party;

and the Lenders may assign, in any manner and terms agreed by the Majority Lenders, the

Agent and the Security Trustee, all or any part of those rights to an insurer or surety who has

become subrogated to them.

26.13 Disclosure of information

A Lender may disclose to a potential Transferee Lender or sub participant any information

which the Lender has received in relation to any Borrower, any Security Party or their affairs

under or in connection with any Finance Document, unless the information is clearly of a

confidential nature.

26.14 Change of Facility Office

A Lender may change its Facility Office by giving notice to the Agent and the change shall

become effective on the later of:

(a) the date on which the Agent receives the notice; and

(b) the date, if any, specified in the notice as the date on which the change will come into effect.

26.15 Notification

On receiving such a notice, the Agent shall notify the Borrowers and the Security Trustee; and,

until the Agent receives such a notice, it shall be entitled to assume that a Lender is acting

through the Facility Office of which the Agent last had notice.

26.16 Security over Lenders' rights

In addition to the other rights provided to Lenders under this Clause

 (

Transfers and changes

in Facility Offices

), each Lender may without consulting with or obtaining consent from any

Borrower or any Security Party, at any time charge, assign or otherwise create a Security

Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any

Finance Document to secure obligations of that Lender including, without limitation:

(a) any charge, assignment or other Security Interest to secure obligations to a federal reserve or

central bank; and 

(b) in the case of any Lender which is a fund, any charge, assignment or other Security Interest

granted to any holders (or trustee or representatives of holders) of obligations owed, or

securities issued, by that Lender as security for those obligations or securities,

except that no such charge, assignment or Security Interest shall:

(i) release a Lender from any of its obligations under the Finance Documents or substitute

the beneficiary of the relevant charge, assignment or Security Interest for the Lender

as a party to any of the Finance Documents; or 

(ii) require any payments to be made by any Borrower or any Security Party or grant to

any person any more extensive rights than those required to be made or granted to

the relevant Lender under the Finance Documents.

27 VARIATIONS AND WAIVERS 

27.1 Variations, waivers etc. by Majority Lenders

Subject to Clause

 (

Variations, waivers etc. requiring agreement of all Lenders

), a document

shall be effective to vary, waive, suspend or limit any provision of a Finance Document, or any

Creditor Party's rights or remedies under such a provision or the general law, only if the

document is signed, or specifically agreed to by fax, by the Borrowers, by the Agent on behalf

of the Majority Lenders, by the Agent and the Security Trustee in their own rights, and, if the

document relates to a Finance Document to which a Security Party is party, by that Security

Party.

27.2 Variations, waivers etc. requiring agreement of all Lenders

However, as regards the following, Clause

 (

Variations, waivers etc. by Majority Lenders

)

applies as if the words "by the Agent on behalf of the Majority Lenders" were replaced by the

words "by or on behalf of every Lender and the Swap Bank":

(a) a reduction in the Margin;

(b) a postponement to the date for, or a reduction in the amount of, any payment of principal,

interest, fees or other sum payable under this Agreement;

(c) an increase in any Lender's Commitment;

(d) a change to the definition of "

Majority Lenders

";

(e) a change to Clause

 (

Position of Lenders, the Swap Bank and Majority Lenders

), or this Clause

 (

Variations and waivers

);

(f) any release of, or material variation to, a Security Interest, guarantee, indemnity or

subordination arrangement set out in a Finance Document; and

(g) any other change or matter as regards which this Agreement or another Finance Document

expressly provides that each Lender's consent is required.

27.3 Exclusion of other or implied variations

Except for a document which satisfies the requirements of Clauses

 (

Variations, waivers etc.

by Majority Lenders

),

 (

Exclusion of other or implied variations

) and

 (

Changes to reference

rates

), no document, and no act, course of conduct, failure or neglect to act, delay or

acquiescence on the part of the Creditor Parties or any of them (or any person acting on behalf

of any of them) shall result in the Creditor Parties or any of them (or any person acting on

behalf of any of them) being taken to have varied, waived, suspended or limited, or being

precluded (permanently or temporarily) from enforcing, relying on or exercising:

(a) a provision of this Agreement or another Finance Document; or

(b) an Event of Default; or 

(c) a breach by a Borrower or a Security Party of an obligation under a Finance Document or the

general law; or

(d) any right or remedy conferred by any Finance Document or by the general law,

and there shall not be implied into any Finance Document any term or condition requiring any

such provision to be enforced, or such right or remedy to be exercised, within a certain or

reasonable time.

27.4 Changes to reference rates

(a) If a Published Rate Replacement Event has occurred in relation to any Published Rate, any

amendment or waiver which relates to:

(i) providing for the use of a Replacement Reference Rate in place of that Published Rate;

and

(ii) 

(A) aligning any provision of any Finance Document to the use of that Replacement

Reference Rate;

(B) enabling that Replacement Reference Rate to be used for the calculation of

interest under this Agreement (including, without limitation, any

consequential changes required to enable that Replacement Reference Rate

to be used for the purposes of this Agreement);

(C) implementing market conventions applicable to that Replacement Reference

Rate;

(D) providing for appropriate fallback (and market disruption) provisions for that

Replacement Reference Rate; or

(E) adjusting the pricing to reduce or eliminate, to the extent reasonably

practicable, any transfer of economic value from one Party to another as a

result of the application of that Replacement Reference Rate (and if any

adjustment or method for calculating any adjustment has been formally

designated, nominated or recommended by the Relevant Nominating Body,

the adjustment shall be determined on the basis of that designation,

nomination or recommendation),

may be made with the consent of the Agent (acting on the instructions of the Majority

Lenders) and the Borrowers.

(b) If any Lender fails to respond to a request for an amendment or waiver described in paragraph

 above

,

or for any other vote of Lenders in relation to, paragraph

 above within five Business

Days (or such longer time period in relation to any request which the Borrowers and the Agent

may agree) of that request being made:

(i) its Commitment or its participation in the Loan (as the case may be) shall not be

included for the purpose of calculating the Total Commitments or the amount of the

Loan (as applicable) when ascertaining whether any relevant percentage of Total

Commitments or the aggregate of participations in the Loan (as applicable) has been

obtained to approve that request; and

(ii) its status as a Lender shall be disregarded for the purpose of ascertaining whether the

agreement of any specified group of Lenders has been obtained to approve that

request.

(c) In this Clause

"

Published Rate

" means:

(a) SOFR; or

(b) Term SOFR for any Quoted Tenor.

"

Published Rate Replacement Event

" means, in relation to a Published Rate: 

(a) the methodology, formula or other means of determining that Published Rate has, in

the opinion of the Majority Lenders and the Borrowers, materially changed;

(b) 

(i) 

(A) the administrator of that Published Rate or its supervisor publicly

announces that such administrator is insolvent; or

(B) information is published in any order, decree, notice, petition or filing,

however described, of or filed with a court, tribunal, exchange,

regulatory authority or similar administrative, regulatory or judicial

body which reasonably confirms that the administrator of that

Published Rate is insolvent,

provided that, in each case, at that time, there is no successor administrator

to continue to provide that Published Rate;

(ii) the administrator of that Published Rate publicly announces that it has ceased

or will cease to provide that Published Rate permanently or indefinitely and,

at that time, there is no successor administrator to continue to provide that

Published Rate;

(iii) the supervisor of the administrator of that Published Rate publicly announces

that such Published Rate has been or will be permanently or indefinitely

discontinued; or 

(iv) the administrator of that Published Rate or its supervisor announces that that

Published Rate may no longer be used; or

(c) the administrator of that Published Rate (or the administrator of an interest rate which

is a constituent element of that Published Rate) determines that that Published Rate

should be calculated in accordance with its reduced submissions or other contingency

or fallback policies or arrangements and the circumstance(s) or event(s) leading to

such determination are not (in the opinion of the Majority Lenders and the Borrowers)

temporary; or

(d) in the opinion of the Majority Lenders and the Borrowers, that Published Rate is

otherwise no longer appropriate for the purposes of calculating interest under this

Agreement.

"

Quoted Tenor

" means, in relation to Term SOFR, any period for which that rate is customarily

displayed on the relevant page or screen of an information service.

"

Replacement Reference Rate

" means a reference rate which is:

(a) formally designated, nominated or recommended as the replacement for a Published

Rate by:

(i) the administrator of that Published Rate (provided that the market or

economic reality that such reference rate measures is the same as that

measured by that Published Rate); or

(ii) any Relevant Nominating Body,

and if replacements have, at the relevant time, been formally designated, nominated

or recommended under both paragraphs, the "

Replacement Reference Rate

" will be

the replacement under paragraph (ii) above;

(b) in the opinion of the Majority Lenders and the Borrowers, generally accepted in the

international or any relevant domestic syndicated loan markets as the appropriate

successor or alternative to a Published Rate; or

(c) in the opinion of the Majority Lenders and the Borrowers, an appropriate successor or

alternative to a Published Rate.

28 NOTICES 

28.1 General

Unless otherwise specifically provided, any notice under or in connection with any Finance

Document shall be given by letter or fax and references in the Finance Documents to written

notices, notices in writing and notices signed by particular persons shall be construed

accordingly.

28.2 Addresses for communications

A notice by letter or fax shall be sent:

(a) to the Borrowers: c/o Approved Manager

16 Pendelis Street

175 64 Paleo Faliro

Athens

Greece

E-mail: corpgov@dianashippingservices.com

(b) to a Lender: at the address below its name in

 or (as the case

 may require) in the

 relevant Transfer Certificate.

(c) to the Swap Bank: c/o 

Nordea Danmark, Filial af Nordea Bank Abp, Finland

7288 Derivatives Services

PO box 850 DK-0900 Copenhagen K, Denmark

Telephone number: +45 55 47 51 71

E-mail: sls.norway@nordea.com 

(d) to the Lead Arranger, Agent 

or the Security Trustee: Essendropsgate 7

0368 Oslo

Norway

Loan administration matters:

Fax No: +47 24013444

Attn: Structured Loan & Collateral Services NO

or to such other address as the relevant party may notify the Agent or, if the relevant party is

the Agent or the Security Trustee, the Borrowers, the Lenders, the Swap Bank and the Security

Parties.

28.3 Effective date of notices

Subject to Clauses

 (

Service outside business hours

) and

 (

Illegal notices

):

(a) a notice which is delivered personally or posted shall be deemed to be served, and shall take

effect, at the time when it is delivered; and

(b) a notice which is sent by fax shall be deemed to be served, and shall take effect, 2 hours after

its transmission is completed. 

28.4 Service outside business hours

However, if under Clause

 (

Effective date of notices

) a notice would be deemed to be served:

(a) on a day which is not a business day in the place of receipt; or

(b) on such a business day, but after five p.m. local time,

the notice shall (subject to Clause

 (

Illegible notices

)) be deemed to be served, and shall take

effect, at 9 a.m. on the next day which is such a business day.

28.5 Illegible notices

Clauses

 (

Effective date of notices

) and

 (

Service outside business hours

) do not apply if the

recipient of a notice notifies the sender within one hour after the time at which the notice

would otherwise be deemed to be served that the notice has been received in a form which is

illegible in a material respect.

28.6 Valid notices

A notice under or in connection with a Finance Document shall not be invalid by reason that

its contents or the manner of serving it do not comply with the requirements of this Agreement

or, where appropriate, any other Finance Document under which it is served if:

(a) the failure to serve it in accordance with the requirements of this Agreement or other Finance

Document, as the case may be, has not caused any party to suffer any significant loss or

prejudice; or

(b) in the case of incorrect and/or incomplete contents, it should have been reasonably clear to

the party on which the notice was served what the correct or missing particulars should have

been.

28.7 Electronic communication

Any communication to be made between the Agent and a Lender or Swap Bank under or in

connection with the Finance Documents may be made by electronic mail or other electronic

means, if the Agent and the relevant Creditor Party:

(a) agree that, unless and until notified to the contrary, this is to be an accepted form of

communication;

(b) notify each other in writing of their electronic mail address and/or any other

information required to enable the sending and receipt of information by that means;

and

(c) notify each other of any change to their respective addresses or any other such

information supplied to them.

Any electronic communication made between the Agent and a Lender or the Swap Bank will

be effective only when actually received in readable form and, in the case of any electronic

communication made by a Creditor Party to the Agent, only if it is addressed in such a manner

as the Agent shall specify for this purpose.

28.8 English language

Any notice under or in connection with a Finance Document shall be in English.

28.9 Meaning of "notice"

In this Clause

 (

Notices

), "

notice

" includes any demand, consent, authorisation, approval,

instruction, waiver or other communication. 

29 JOINT AND SEVERAL LIABILITY 

29.1 General

All liabilities and obligations of the Borrowers under this Agreement shall, whether expressed

to be so or not, be several and, if and to the extent consistent with Clause

 (

No impairment

of Borrower's obligations

), joint.

29.2 No impairment of Borrower's obligations

The liabilities and obligations of a Borrower shall not be impaired by:

(a) this Agreement being or later becoming void, unenforceable or illegal as regards any other

Borrower;

(b) any Lender, the Swap Bank or the Security Trustee entering into any rescheduling, refinancing

or other arrangement of any kind with any other Borrower;

(c) any Lender, the Swap Bank or the Security Trustee releasing any other Borrower or any Security

Interest created by a Finance Document; or

(d) any combination of the foregoing.

29.3 Principal debtors

Each Borrower declares that it is and will, throughout the Security Period, remain a principal

debtor for all amounts owing under this Agreement and the Finance Documents and no

Borrower shall in any circumstances be construed to be a surety for the obligations of any

other Borrower under this Agreement.

29.4 Subordination

Subject to Clause

 (

Borrower's required action

), during the Security Period, no Borrower shall:

(a) claim any amount which may be due to it from any other Borrower whether in respect of a

payment made, or matter arising out of, this Agreement or any Finance Document, or any

matter unconnected with this Agreement or any Finance Document; or

(b) take or enforce any form of security from any other Borrower for such an amount, or in any

other way seek to have recourse in respect of such an amount against any asset of any other

Borrower; or

(c) set off such an amount against any sum due from it to any other Borrower; or

(d) prove or claim for such an amount in any liquidation, administration, arrangement or similar

procedure involving any other Borrower or other Security Party; or

(e) exercise or assert any combination of the foregoing.

29.5 Borrower's required action

If during the Security Period, the Agent, by notice to a Borrower, requires it to take any action

referred to in paragraphs

 to

 of Clause

 (

Subordination

), in relation to any other Borrower,

that Borrower shall take that action as soon as practicable after receiving the Agent's notice.

30 SUPPLEMENTAL

30.1 Rights cumulative, non-exclusive

The rights and remedies which the Finance Documents give to each Creditor Party are:

(a) cumulative;

(b) may be exercised as often as appears expedient; and

(c) shall not, unless a Finance Document explicitly and specifically states so, be taken to exclude

or limit any right or remedy conferred by any law.

30.2 Severability of provisions

If any provision of a Finance Document is or subsequently becomes void, unenforceable or

illegal, that shall not affect the validity, enforceability or legality of the other provisions of that

Finance Document or of the provisions of any other Finance Document.

30.3 Counterparts

A Finance Document may be executed in any number of counterparts.

30.4 Third Party rights

A person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999

to enforce or to enjoy the benefit of any term of this Agreement.

31 BAIL-IN

Notwithstanding any other term of any Finance Document or any other agreement,

arrangement or understanding between the parties to a Finance Document, each Party

acknowledges and accepts that any liability of any party to a Finance Document under or in

connection with the Finance Documents may be subject to Bail-In Action by the relevant

Resolution Authority and acknowledges and accepts to be bound by the effect of:

(a) any Bail-In Action in relation to any such liability, including (without limitation):

(i) a reduction, in full or in part, in the principal amount, or outstanding amount due

(including any accrued but unpaid interest) in respect of any such liability;

(ii) a conversion of all, or part of, any such liability into shares or other instruments of

ownership that may be issued to, or conferred on, it; and

(iii) a cancellation of any such liability; and

(b) a variation of any term of any Finance Document to the extent necessary to give effect to any

Bail-In Action in relation to any such liability.

32 LAW AND JURISDICTION 

32.1 English law

This Agreement and any non-contractual obligations arising out of or in connection with it shall

be governed by, and construed in accordance with, English law.

32.2 Exclusive English jurisdiction

Subject to Clause

 (

Choice of forum for the exclusive benefit of Creditor Parties

), the courts of

England shall have exclusive jurisdiction to settle any Dispute.

32.3 Choice of forum for the exclusive benefit of Creditor Parties

Clause

 (

Exclusive English jurisdiction

) is for the exclusive benefit of the Creditor Parties, each

of which reserves the rights:

(a) to commence proceedings in relation to any Dispute in the courts of any country other than

England and which have or claim jurisdiction to that Dispute; and

(b) to commence such proceedings in the courts of any such country or countries concurrently

with or in addition to proceedings in England or without commencing proceedings in England.

No Borrower shall commence any proceedings in any country other than England in relation

to a Dispute.

32.4 Process agent

Each Borrower irrevocably appoints Hill Dickinson Services (London) Ltd at its registered office

for the time being at The Broadgate Tower, 20 Primrose Street, London EC2A 2EW, United

Kingdom, to act as its agent to receive and accept on its behalf any process or other document

relating to any proceedings in the English courts which are connected with a Dispute.

32.5 Creditor Party rights unaffected

Nothing in this Clause

Law and Jurisdiction

) shall exclude or limit any right which any Creditor

Party may have (whether under the law of any country, an international convention or

otherwise) with regard to the bringing of proceedings, the service of process, the recognition

or enforcement of a judgment or any similar or related matter in any jurisdiction.

32.6 Meaning of "proceedings" and "Dispute"

In this Clause

 (

Law and Jurisdiction

), "

proceedings

" means proceedings of any kind, including

an application for a provisional or protective measure and a "

Dispute

" means any dispute

arising out of or in connection with this Agreement (including a dispute relating to the

existence, validity or termination of this Agreement) or any non-contractual obligation arising

out of or in connection with this Agreement.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

SCHEDULE 1

LENDERS AND COMMITMENTS 

Lender

Facility Office

Commitment

(US Dollars)

Nordea Bank Abp, filial i Norge

Essendrops gate 7, Postboks

1166, Sentrum, 0107 Oslo

920058817 MVA

Norway

$200,000,000

SCHEDULE 2

DRAWDOWN NOTICE

To: Nordea Bank Abp, filial i Norge

Essendrops gate 7, Postboks 

1166, Sentrum, 0107 Oslo 

920058817 MVA, Norway

Attention: [Loans Administration] [●] 2022

DRAWDOWN NOTICE

1 We refer to the loan agreement (the "

Loan Agreement

") dated [●] 2022 and made between

ourselves, as joint and several Borrowers, the Lenders referred to therein, and yourselves as

Agent, as Security Trustee, as Bookrunner [and] as Lead Arranger and as Swap Bank in

connection with a facility of up to US$200,000,000. Terms defined in the Loan Agreement have

their defined meanings when used in this Drawdown Notice.

2 We request to borrow Tranche [A]/[B]/[C]/[D]/[E]/[F]/[G]/[H]/[I] as follows:

(a) Amount: US$[●];

(b) Drawdown Date: [●] 2022;

(c) [Duration of the first Interest Period shall be [one][three] Months;] and

(d) Payment instructions: account in our name and numbered [●] with [●] of [●].

3 We represent and warrant that:

(a) the representations and warranties in clause 10 (

Representations and Warranties

) of the Loan

Agreement would remain true and not misleading if repeated on the date of this notice with

reference to the circumstances now existing; and

(b) no Event of Default or Potential Event of Default has occurred or will result from the borrowing

of Tranche [A]/[B]/[C]/[D]/[E]/[F]/[G]/[H]/[I].

4 This notice cannot be revoked without the prior consent of the Majority Lenders.

[Name of Signatory]

Director

for and on behalf of

MANRA SHIPPING COMPANY INC.

JABWOT SHIPPING COMPANY INC.

ARORAE SHIPPING COMPANY INC.

TAMANA SHIPPING COMPANY INC.

BERU SHIPPING COMPANY INC.

BONRIKI SHIPPING COMPANY INC.

EJITE SHIPPING COMPANY INC.

TAONGI SHIPPING COMPANY INC.

NAMORIK SHIPPING COMPANY INC.

SCHEDULE 3

CONDITION PRECEDENT DOCUMENTS 

PART A

The following are the documents referred to in Clause

Documents, fees and no default

).

1 A duly executed original of:

(a) this Agreement;

(b) the Corporate Guarantee;

(c) the Agency and Trust Deed;

(d) the Master Agreement;

(e) the Shares Pledges;

(f) the Master Agreement Assignment; and

(g) the Accounts Pledges.

2 Copies of the certificate of incorporation and constitutional documents of each Borrower, the

Corporate Guarantor and any other Security Party.

3 Copies of resolutions of the shareholders and directors of each Borrower and each Security

Party (other than the Corporate Guarantor) authorising the execution of each of the Finance

Documents to which that Borrower or that Security Party is a party and, in the case of a

Borrower, authorising named officers to give the Drawdown Notice.

4 Copies of resolutions of the executive committee of the Corporate Guarantor authorising the

execution of each of the Finance Documents to which it is a party.

5 The original of any power of attorney under which any Finance Document is executed on behalf

of a Borrower, the Corporate Guarantor or any other Security Party.

6 Copies of all consents which any Borrower, the Corporate Guarantor or any Security Party

requires to enter into, or make any payment under, any Finance Document.

7 The originals of any mandates or other documents required in connection with the opening or

operation of the Earnings Accounts.

8 Such documents as the Agent may require for its "Know your customer" and other customary

money laundering and sanctions and counter-terrorist financing checks.

9 Documentary evidence that the agent for service of process named in Clause

 (

Process Agent)

has accepted its appointment.

10 Favourable legal opinions from lawyers appointed by the Agent on such matters concerning

the laws of Marshall Islands and such other relevant jurisdictions as the Agent may require.

11 If the Agent so requires, in respect of any of the documents referred to above, a certified

English translation prepared by a translator approved by the Agent.

12 A copy of the Escrow Agreement together with any amendments, supplements, side letters,

confirmation letters and other ancillaries thereto and, if applicable, a copy of any other

agreement relating to the release of the Balance Funds (as defined in the relevant MOA). 

PART B

The following are the documents referred to in Clause

 (

Documents, fees and no default

)required

before the Drawdown Date. In

 of this

 (

Condition precedent documents

), the following definitions

have the following meanings:

(a) "

Relevant Borrower

" means the Borrower which is the owner of the Relevant Ship; and

(b) "

Relevant Ship

" means the Ship which is to be financed by using the proceeds of the Tranche

being drawn on the Drawdown Date.

1 A duly executed original of the Mortgage and the General Assignment relating to the Relevant

Ship and any Charterparty Assignment.

2 Documentary evidence that:

(a) the Relevant Ship has been unconditionally delivered by the relevant Seller to, and accepted

by, Re levant Borrower under the relevant MOA;

(b) the full purchase price payable and all other sums due to the relevant Seller under the relevant

MOA, other than the sums to be financed pursuant to the Advance under the relevant Tranche,

have been paid to the relevant Seller, including without limitation such evidence of payment

of the relevant Share Consideration (as defined in the relevant MOA) as stipulated in the

Master Agreement (as defined in the relevant MOA);

(c) the Relevant Ship is definitively and permanently registered in the name of the Relevant

Borrower under an Approved Flag;

(d) the Relevant Ship is in the absolute and unencumbered ownership of the Relevant Borrower

save as contemplated by the Finance Documents;

(e) the Relevant Ship maintains the class specified in Clause

 (

Repair and classification

);

(f) the Mortgage relating to the Relevant Ship has been duly registered or recorded against the

Relevant Ship as a valid first priority or, as the case may be, preferred statutory ship mortgage

in accordance with the laws of the applicable Approved Flag State; and

(g) the Relevant Ship is insured in accordance with the provisions of this Agreement and all

requirements therein in respect of insurances have been complied with.

3 Documents establishing that the Relevant Ship will, as from the Drawdown Date, be managed

by the Approved Manager on terms acceptable to the Lenders, together with:

(a) a copy of the Management Agreement and the Manager's Undertaking duly signed by the

Approved Manager; and

(b) copies of the Approved Manager's Document of Compliance and of the Relevant Ship's Safety

Management Certificate (together with any other details of the applicable safety management

system which the Agent requires) and ISSC.

3.1 Copies of the MOA, the Master Agreement (as defined in the MOA) and of all documents

signed or issued by the Relevant Borrower or the relevant Seller (or both of them) under or in

connection with it.

3.2 Such documentary evidence as the Agent and its legal advisers may require in relation to the

due authorisation and execution of the MOA by each of the parties to it.

4 Favourable legal opinions from lawyers appointed by the Agent on such matters concerning

the laws of Marshall Islands, the Approved Flag State and such other relevant jurisdictions as

the Agent may require. 

5 At the cost of the Borrowers a favourable opinion from an independent insurance consultant

acceptable to the Agent on such matters relating to the insurances for the Ship as the Agent

may require.

6 Two valuations of each Ship addressed to the Agent and dated not earlier than 40 days before

the Drawdown Date and prepared in accordance with Clause

 (

Valuation of ships

) by two

Approved Brokers (each selected by the Borrowers and approved by the Agent) which

evidences compliance with Clause

 (

Minimum required security cover

) immediately after the

Drawdown Date.

7 If the Agent so requires, in respect of any of the documents referred to above, a certified

English translation prepared by a translator approved by the Agent.

Each of the documents specified in paragraphs 2, 3, 5 and 9 of

 and every other copy document

delivered under this Schedule shall be certified as a true and up to date copy by a director or the

secretary (or equivalent officer) of each Borrower or a qualified lawyer.

SCHEDULE 4

TRANSFER CERTIFICATE 

The Transferor and the Transferee accept exclusive responsibility for ensuring that this Certificate

and the transaction to which it relates comply with all legal and regulatory requirements applicable

to them respectively.

To: Nordea Bank Abp, filial i Norge for itself and for and on behalf of the Borrower, [each Security

Party], the Security Trustee, each Lender and the Swap Bank, as defined in the Loan Agreement

referred to below.

[●]

1 This Certificate relates to a Loan Agreement (the "

Agreement

") dated [●] 2022 and made

between (1) Manra Shipping Company Inc., Jabwot Shipping Company Inc., Arorae Shipping

Company Inc., Tamana Shipping Company Inc., Beru Shipping Company Inc., Bonriki Shipping

Company Inc., Ejite Shipping Company Inc., Taongi Shipping Company Inc. and Namorik

Shipping Company Inc. as joint and several borrowers (the "

Borrowers

"), (2) the banks and

financial institutions named therein, (3) Nordea Bank Abp, filial i Norge as Agent, (4) Nordea

Bank Abp, filial i Norge as Security Trustee, (5) Nordea Bank Abp, filial i Norge as Lead Arranger

[and] (6) Nordea Bank Abp, filial I Norge as Bookrunner and (7) Nordea Bank Abp as Swap Bank

for a loan facility of up to US$200,000,000.

2 In this Certificate, terms defined in the Agreement shall, unless the contrary intention appears,

have the same meanings when used in this Certificate and:

"

Relevant Parties

" means the Agent, the Borrower, [each Security Party], the Security Trustee,

each Lender and the Swap Bank;

"

Transferor

" means [full name] of [facility office]; and

"

Transferee

" means [full name] of [facility office].

3 The effective date of this Certificate is [●],

Provided that

 this Certificate shall not come into

effect unless it is signed by the Agent on or before that date.

4 [The Transferor assigns to the Transferee absolutely all rights and interests (present, future or

contingent) which the Transferor has as Lender under or by virtue of the Agreement and every

other Finance Document in relation to [●] per cent. of its Contribution, which percentage

represents $[●].]

5 [By virtue of this Transfer Certificate and Clause

 (

Transfers and changes in Facility Offices

) of

the Loan Agreement, the Transferor is discharged [entirely from its Commitment which

amounts to $[●] [from [●] per cent. of its Commitment, which percentage represents $[●]] and

the Transferee acquires a Commitment of $[●].]

6 The Transferee undertakes with the Transferor and each of the Relevant Parties that the

Transferee will observe and perform all the obligations under the Finance Documents which

Clause

 (

Transfers and Changes in Facility Offices

) of the Loan Agreement provides will

become binding on it upon this Certificate taking effect.

7 The Agent, at the request of the Transferee (which request is hereby made) accepts, for the

Agent itself and for and on behalf of every other Relevant Party, this Certificate as a Transfer

Certificate taking effect in accordance with Clause

 (

Transfers and changes in Facility Offices

)

of the Agreement.

8 The Transferor:

(a) warrants to the Transferee and each Relevant Party that:

(i) the Transferor has full capacity to enter into this transaction and has taken all

corporate action and obtained all consents which are required in connection with this

transaction; and

(ii) this Certificate is valid and binding as regards the Transferor;

(b) warrants to the Transferee that the Transferor is absolutely entitled, free of encumbrances, to

all the rights and interests covered by the assignment in paragraph 4; and

(c) undertakes with the Transferee that the Transferor will, at its own expense, execute any

documents which the Transferee reasonably requests for perfecting in any relevant jurisdiction

the Transferee 's title under this Certificate or for a similar purpose.

9 The Transferee:

(a) confirms that it has received a copy of the Agreement and each of the other Finance

Documents;

(b) agrees that it will have no rights of recourse on any ground against either the Transferor, the

Agent, the Security Trustee, any Lender or the Swap Bank in the event that:

(i) any of the Finance Documents prove to be invalid or ineffective;

(ii) any Borrower or any Security Party fails to observe or perform its obligations, or to

discharge its liabilities, under any of the Finance Documents; and

(iii) it proves impossible to realise any asset covered by a Security Interest created by a

Finance Document, or the proceeds of such assets are insufficient to discharge the

liabilities of the Borrowers or any Security Party under any of the Finance Documents; 

(c) agrees that it will have no rights of recourse on any ground against the Agent, the Security

Trustee, any Lender or the Swap Bank in the event that this Certificate proves to be invalid or

ineffective; 

(d) warrants to the Tra nsferor and each Relevant Party that:

(i) it has full capacity to enter into this transaction and has taken all corporate action and

obtained all consents which it needs to take or obtain in connection with this

transaction; and

(ii) this Certificate is valid and binding as regards the Transferee; and

(e) confirms the accuracy of the administrative details set out below regarding the Transferee.

10 The Transferor and the Transferee each undertake with the Agent and the Security Trustee

severally, on demand, fully to indemnify the Agent and/or the Security Trustee in respect of

any claim, proceeding, liability or expense (including all legal expenses) which they or either of

them may incur in connection with this Certificate or any matter arising out of it, except such

as are shown to have been mainly and directly caused by the gross and culpable negligence or

dishonesty of the Agent's or the Security Trustee's own officers or employees.

11 The Transferee shall repay to the Transferor on demand so much of any sum paid by the

Transferor under paragraph 9 as exceeds one-half of the amount demanded by the Agent or

the Security Trustee in respect of a claim, proceeding, liability or expense which was not

reasonably foreseeable at the date of this Certificate; but nothing in this paragraph shall affect

the liability of each of the Transferor and the Transferee to the Agent or the Security Trustee

for the full amount demanded by it.

[Name of Transferor] [Name of Transferee]

By: By:

Date: Date:

Agent

Signed for itself and for and on behalf of itself

as Agent and for every other Relevant Party

[Name of Agent]

By:

Date:

Administrative Details of Transferee

Name of Transferee: 

Facility Office: 

Contact Person

(Loan Administration Department): 

Telephone: 

Fax: 

Contact Person

(Credit Administration Department): 

Telephone: 

Fax: 

Account for payments: 

Note

: This Transfer Certificate alone may not be sufficient to transfer a proportionate share of the

Transferor 's interest in the security constituted by the Finance Documents in the Transferor 's or

Transferee 's jurisdiction. It is the responsibility of each Lender to ascertain whether any other

documents are required for this purpose.

SCHEDULE 5

DESIGNATION NOTICE

Nordea Bank Abp, filial i Norge

Essendrops gate 7, Postboks 

1166, Sentrum, 0107 Oslo

920058817 MVA, Norway

 [●]

Dear Sirs

Loan Agreement dated [●] 2022 made between (i) Manra Shipping Company Inc., Jabwot Shipping

Company Inc., Arorae Shipping Company Inc., Tamana Shipping Company Inc., Beru Shipping

Company Inc., Bonriki Shipping Company Inc., Ejite Shipping Company Inc., Taongi Shipping

Company Inc. and Namorik Shipping Company Inc. as joint and several Borrowers, (ii) the Lenders,

(iii) yourselves as Agent, Security Trustee, Bookrunner and Lead Arranger and (iv) Nordea Bank Abp

as Swap Bank (the "Loan Agreement").

We refer to:

1 the Loan Agreement; 

2 the Master Agreement dated [●] 2022 made between ourselves and the Swap Bank; and

3 a Confirmation delivered pursuant to the said Master Agreement dated [●] and addressed by

[●] to us.

In accordance with the terms of the Loan Agreement, we hereby give you notice of the said

Confirmation and hereby confirm that the Transaction evidenced by it will be designated as a

"Designated Transaction" for the purposes of the Loan Agreement and the Finance Documents.

Yours faithfully,

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

for and on behalf of

MANRA SHIPPING COMPANY INC.

JABWOT SHIPPING COMPANY INC.

ARORAE SHIPPING COMPANY INC.

TAMANA SHIPPING COMPANY INC.

BERU SHIPPING COMPANY INC.

BONRIKI SHIPPING COMPANY INC.

EJITE SHIPPING COMPANY INC.

TAONGI SHIPPING COMPANY INC.

NAMORIK SHIPPING COMPANY INC.

SCHEDULE 6

SELECTION NOTICE

From:

MANRA SHIPPING COMPANY INC.

JABWOT SHIPPING COMPANY INC.

ARORAE SHIPPING COMPANY INC.

TAMANA SHIPPING COMPANY INC.

BERU SHIPPING COMPANY INC.

BONRIKI SHIPPING COMPANY INC.

EJITE SHIPPING COMPANY INC.

TAONGI SHIPPING COMPANY INC.

NAMORIK SHIPPING COMPANY INC.

To:

Nordea Bank Abp, filial i Norge

Essendrops gate 7, Postboks 

1166, Sentrum, 0107 Oslo 

920058817 MVA, Norway

Dated: [

●

]

Loan Agreement dated [●] 2022 made between (i) Manra Shipping Company Inc., Jabwot Shipping

Company Inc., Arorae Shipping Company Inc., Tamana Shipping Company Inc., Beru Shipping

Company Inc., Bonriki Shipping Company Inc., Ejite Shipping Company Inc., Taongi Shipping

Company Inc. and Namorik Shipping Company Inc. as joint and several Borrowers, (ii) the Lenders,

(iii) yourselves as Agent, Security Trustee, Bookrunner and Lead Arranger and (iv) Nordea Bank Abp

as Swap Bank (the "Loan Agreement").

1 We refer to the Loan Agreement. This is a Selection Notice. Terms defined in the Loan

Agreement have the same meaning in this Selection Notice unless given a different meaning

in this Selection Notice.

2 We request [that the next Interest Period for the Loan be [

●

]]OR[ an Interest Period for a part

of the Loan in an amount equal to [

●

] (which is the amount of the Repayment Instalment next

due) ending on [

●

] (which is the Repayment Date relating to that Repayment Instalment) and

that the Interest Period for the remaining part of the Loan shall be [

●

]].

3 This Selection Notice is irrevocable.

Yours faithfully

____________________

[

●

]

authorised signatory for

MANRA SHIPPING COMPANY INC.

JABWOT SHIPPING COMPANY INC.

ARORAE SHIPPING COMPANY INC.

TAMANA SHIPPING COMPANY INC.

BERU SHIPPING COMPANY INC.

BONRIKI SHIPPING COMPANY INC.

EJITE SHIPPING COMPANY INC.

TAONGI SHIPPING COMPANY INC.

NAMORIK SHIPPING COMPANY INC.

EXECUTION PAGES

THE BORROWERS

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

MANRA SHIPPING COMPANY INC. 

)

in the presence of: )

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

JABWOT SHIPPING COMPANY INC. 

)

in the presence of: )

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

ARORAE SHIPPING COMPANY INC. 

)

in the presence of: )

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

TAMANA SHIPPING COMPANY INC. 

)

in the presence of: )

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

BERU SHIPPING COMPANY INC. 

)

in the presence of: )

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

BONRIKI SHIPPING COMPANY INC. 

)

in the presence of: )

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

EJITE SHIPPING COMPANY INC. 

)

in the presence of: )

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

TAONGI SHIPPING COMPANY INC. 

)

in the presence of: )

SIGNED

 by )

 )

attorney-in-fact )

for and on behalf of )

NAMORIK SHIPPING COMPANY INC. 

)

in the presence of: )

THE LENDERS

SIGNED

 by )

)

attorney-in-fact )

for and on behalf of )

NORDEA BANK ABP, FILIAL I NORGE

 )

in the presence of: )

THE SWAP BANK

SIGNED

 by )

)

attorney-in-fact )

for and on behalf of )

NORDEA BANK ABP 

 )

in the presence of: )

THE AGENT

SIGNED

 by )

)

attorney-in-fact )

for and on behalf of )

NORDEA BANK ABP, FILIAL I NORGE

 )

in the presence of: )

THE SECURITY TRUSTEE

SIGNED

 by )

)

attorney-in-fact )

for and on behalf of )

NORDEA BANK ABP, FILIAL I NORGE

 )

in the presence of: )

THE LEAD ARRANGER

SIGNED

 by )

)

attorney-in-fact )

for and on behalf of )

NORDEA BANK ABP, FILIAL I NORGE

 )

in the presence of: )

THE BOOKRUNNER

SIGNED

 by )

)

attorney-in-fact )

for and on behalf of )

NORDEA BANK ABP, FILIAL I NORGE

 )

in the presence of: )

EX-4.47

Exhibit 4.47

RIGHT OF FIRST REFUSAL

AGREEMENT

This Right of First Refusal Agreement (this 

"Agreement") 

is made effective as 

of

November 8, 2021 between Diana Shipping Inc., a Marshall Islands corporation (the

"Grantor"),

and

OceanPal Inc., a Marshall Islands corporation (the

"Company").BACKGROUND

The Company is a wholly-owned subsidiary of the Grantor, and the Grantor intends to

distribute of all of the 

Company's

issued and 

outstanding

common shares to the 

Grantor's

shareholders (the 

"Spin-Off")

such that the Company will be an independent publicly 

traded

company following the Spin-Off. In connection with the Spin-Off , the Grantor desires to grant the

Company a right of first refusal to acquire one or all of six vessels identified in Exhibit A hereto 

(each, a "Subject Vessel" ) when and if the Grantor determined to sell such Subject

Vessel.AGREEMENT

For good and valuable consideration, the receipt and sufficiency of which are hereby

acknowledged,

the Grantor and the Company agree to the

following:

1. Vessel Sale Restriction. The Grantor hereby agrees that it shall not sell,

transfer

or

otherwise dispose of, whether by one or a series of transactions and whether directly 

or

indirectly, 

any Subject Vessel (a "Sale") except as expressly permitted pursuant to 

this

Agreement

following the delivery by the Grantor to the Company of an Offer Notice with respect to the Subject 

Vessel proposed to be sold. If any affiliate of the Company shall at any

time

become the owner

of a Subject Vessel, then the Company shall cause such affiliate to be bound by the terms hereof and

all terms of this Agreement shall apply to such affiliate as if it were

the Company.

2. Offer Notice; Response Notice. The Grantor may, from time to time, deliver

to

the

Company notice of a potential or contemplated Sale (each such notice, an "Offer 

Notice").

Each 

Offer Notice shall include a description of the proposed purchase price, which 

purchase

price shall

be equal to the fair market value of the applicable Subject Vessel, as determined by

the

average

of two

independent shipbroker valuations

from

brokers mutually agreeable to the

Grantor

and the Company, 

and proposed terms and conditions of such Sale. Within seven (7) 

business

days after receipt of any

Offer Notice, the Company may, in its sole discretion, deliver notice

to

the Grantor (a "Response 

Notice") that the Company accepts the price and terms and

conditions

as those offered in the Offer

Notice, subject to the negotiation and execution of a memorandum 

of

agreement for the sale of the

Subject Vessel as contemplated below and thereafter, the

Grantor

and the Company shall have thirty

(30) days from the date on which the Company delivers 

the

applicable Response Notice to 

negotiate in good faith, on an exclusive basis, the terms 

of

purchase and sale agreement for the 

applicable Subject Vessel (a "Contract of Sale"), 

which

terms shall be no less favorable to the 

Company than the purchase price and other terms and conditions contained in the Offer Notice and

shall contain a due diligence period,

customary

representations and warranties and other provisions

customary in similar types of

transactions, as

negotiated in good faith by the parties. The Company

shall have the right to designate any

direct

or indirect wholly owned subsidiary to consummate the

purchase of the Subject

Vessel.

3. 

Termination

of Vessel Sale Restriction. If, following the delivery by the

Grantor

to

the Company of an Offer Notice with respect to a Subject Vessel, (i) the Company fails

to

timely deliver a Response Notice with respect to such Offer Notice as provided in Section 

2

above, (ii) the Company shall have delivered a Response Notice to the Grantor, and the

Grantor

and

the Company have not executed a Contract of Sale within the time period contemplated by Section

2, above and such failure was not the result of a default by the Grantor hereunder, or

(iii) a

 Contract 

of Sale has been entered into by the Grantor and the Company and thereafter is terminated other

than on account of a breach by the Grantor, then the Grantor shall be free to sell such Subject Vessel

(A) for a purchase price which is no less than one hundred percent (100%) of the purchase price

contained in the applicable Offer Notice, and (B) otherwise upon

substantially

the same terms and 

conditions contemplated by the Offer Notice, so long as such Sale is consummated within 

three (3) months after the date on which the Company received 

the

applicable Offer Notice. 

Upon such Sale described in the immediately preceding sentence, said right of first refusal (with respect

to such Subject Vessel only) shall thereupon

automatically

terminate and shall be of no further force

and effect and such right of first refusal shall not be binding upon the

Grantor's

successors or

assigns. If such proposed Sale is not consummated

as

permitted hereunder within such three (3) month

period, the

Company's

right of first refusal shall be deemed to be reinstated and Seller shall not have

the right to sell such Subject Vessel until it has again complied with the provisions of this Agreement,

including delivering an Offer

Notice

with respect to such Subject

Vessel.

4. Notices. All notices, requests, demands and other communications to any party

hereunder will be in writing (including prepaid overnight courier or electronic mail) and will be given

to such party at its respective address set forth below or at such other address as such party may

hereafter specify for the purpose by notice to the other party hereto. Each such notice, request or

other

communication

will be effective when received at the address specified in

this

Section or when

delivery at such address is

refused.

Notices to the Grantor will be made as

follows:

Diana Shipping

Inc.

Pendelis

16

175 64 Palaio Faliro

Athens,

Greece

Attention: Ioannis

Zafirakis

Tel: +30

2109470100

Email:

izafirakis@dianashippinginc.com

Notices to the Company will be made as

follows:

OceanPal

Inc.

Pendelis

26

175 64 Palaio

Faliro

Athens,

Greece

Attention: Eleftherios

Papatrifon

Tel: +30 210

9485360

Email:

lpapatrifon@oceanpal.com

5. Term. This Agreement shall terminate at such time that the Sale of each

Subject

Vessel

has been consummated in accordance with this

Agreement.

6. Governing Law. This Agreement and the rights and obligations of the parties

hereto will be governed by and construed in accordance with the laws of the State of New York.

7. Further Assurances. The Grantor agrees to execute, acknowledge and deliver all such

instruments and take all such actions as the Company from time to time may reasonably request in

order to further effectuate the purposes of this Agreement and to cany out the terms hereof and to 

better assure and confirm to the Company its rights, powers and remedies hereunder.

8. Binding Effect; Assignment. This Agreement will be binding upon and inure to the

benefit of the parties hereto and to their respective heirs, executors, administrators, successors and

permitted assigns. This Agreement is not assignable by either party without the prior written consent

of the other party.

9. Severability. If any term, covenant or condition of this Agreement is held to be

invalid, illegal or unenforceable in any respect, then this Agreement will be construed as if such

invalid, illegal, or unenforceable provision or part of a provision had never been contained in this

Agreement.

9. Counterparts. This Agreement may be executed in multiple counterparts, each of

which will be deemed an original and all of such counterparts together will constitute one agreement.

To

facilitate execution of this Agreement, the parties may execute and exchange counterparts of

signature pages by electronic transmission (e.g., through use of a Portable Document Format or

"PDF" file).

[Signature page follows.]

IN WITNESS WHEREOF, the parties hereto have executed or caused this Agreement to be

executed as of the date set forth

above.

DIANA SHIPPING INC.

By:

Name:

 Ioannis Zafirakis

Title

 Director, Chief Financial Officer, Chief

Strategy Officer, Treasurer and Secretary 

OCEANPAL INC.

By:

Name:

 Eleftherios Papatrifon 

Title

 Director and Chief Executive Officer 

[Signature page to the Right of First Refusal Agreement]

EXHIBIT A

Vessel

Name1

Semirio

2Boston3Melia4Aliki5Baltimore6Artemis

EX-4.48

exhibit448

XML

Cover	12 Months Ended
	Dec. 31, 2022 shares
Entity Listings [Line Items]
Document type	20-F
Document registration statement	false
Document annual report	true
Document period end date	Dec. 31, 2022
Current fiscal year end date	--12-31
Document transition report	false
Document shell company report	false
Entity file number	001-32458
Entity registrant name	DIANA SHIPPING INC.
Entity incorporation state country code	1T
Entity address, address line one	Pendelis 16
Entity address, city or town	Athens
Entity address, postal zip code	175 64 Palaio Faliro
Entity address, country	GR
Contact personnel name	Mr. Ioannis Zafirakis
Entity common stock shares outstanding	102,653,619
Entity well known seasoned issuer	No
Entity voluntary filers	No
Entity current reporting status	Yes
Entity interactive data current	Yes
Entity filer category	Accelerated Filer
Entity emerging growth company	false
Document accounting standard	U.S. GAAP
Entity shell company	false
Entity central index key	0001318885
Document fiscal year focus	2022
Document fiscal period focus	FY
ICFR auditor attestation flag	true
Amendment flag	false
Auditor firm ID	1457
Auditor name	Ernst & Young (Hellas) Certified Auditors Accountants S.A.
Auditor location	Athens, Greece
Business Contact [Member]
Entity Listings [Line Items]
Entity address, address line one	Pendelis 16
Entity address, city or town	Athens
Entity address, postal zip code	175 64 Palaio Faliro
Entity address, country	GR
Contact personnel name	Mr. Ioannis Zafirakis
City area code	210
Local phone number	9470-100
Contact personnel fax number	30-210-9470-101
Contact personnel email address	izafirakis@dianashippinginc.com
Common Stock [Member]
Entity Listings [Line Items]
Title of 12(b) security	Common Stock, $0.01 par value including the Preferred Stock Purchase Rights
Trading symbol	DSX
Security exchange name	NYSE
Series B Cumulative Redeemable Perpetual Preferred Shares at 8.875% [Member]
Entity Listings [Line Items]
Title of 12(b) security	8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, $0.01 par value
Trading symbol	DSXPRB
Security exchange name	NYSE

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents (Note 2(e))	$ 76,428	$ 110,288
Time deposits (Note 2(e))	46,500	0
Accounts receivable, trade (Note 2(f))	6,126	2,832
Due from related parties, net of provision for credit losses (Note 3(c) and 8(b))	216	952
Inventories (Note 2(g))	4,545	6,089
Prepaid expenses and other assets	6,749	5,484
Total Current Assets	140,564	125,645
Fixed Assets:
Advances for vessel acquisitions (Note 4)	24,123	16,287
Vessels, net (Note 4)	949,616	643,450
Property and equipment, net (Note 5)	22,963	22,842
Total fixed assets	996,702	682,579
Other Noncurrent Assets
Restricted cash, non-current (Note 6)	21,000	16,500
Equity method investments (Note 3(c))	506	0
Investments in related party (Note 3(f))	7,744	7,644
Other non-current assets	101	1,455
Deferred costs (Note 2(n))	16,302	8,127
Total Non-current Assets	1,042,355	716,305
Total assets	1,182,919	841,950
Current Liabilities
Current portion of long-term debt, net of deferred financing costs (Note 6)	91,495	41,148
Current portion of finance liabilities, net of deferred financing costs (Note 7)	8,802	0
Accounts payable	11,242	9,777
Due to related parties (Note 3(a) and (c))	136	596
Accrued liabilities	12,134	7,878
Deferred revenue (Note 2(p))	7,758	5,732
Total Current Liabilities	131,567	65,131
Non-current Liabilities
Long-term debt, net of current portion and deferred financing costs (Note 6)	431,016	382,527
Finance liabilities, net of current portion and deferred financing costs (Note 7)	132,129	0
Other non-current liabilities	879	1,097
Total Noncurrent Liabilities	564,024	383,624
Commitments and contingencies (Note 8)
Stockholders' Equity
Preferred stock (Note 9)	26	26
Common stock, $0.01 par value; 200,000,000 shares authorized and 102,653,619 and 84,672,258 issued and outstanding on December 31, 2022 and 2021, respectively (Note 9)	1,027	847
Additional paid in capital	1,061,015	982,537
Accumulated other comprehensive income	253	71
Accumulated deficit	(574,993)	(590,286)
Total Stockholders' Equity	487,328	393,195
Total Liabilities and Stockholders' Equity	$ 1,182,919	$ 841,950

XML

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	102,653,619	84,672,258
Common stock, shares outstanding	102,653,619	84,672,258

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
REVENUES:
Time charter revenues (Note 2(q))	$ 289,972,000	$ 214,203,000	$ 169,733,000
OPERATING EXPENSES
Voyage expenses (Notes 2(q) and 10)	6,942,000	5,570,000	13,525,000
Vessel operating expenses (Note 2(r))	72,033,000	74,756,000	85,847,000
Depreciation and amortization of deferred charges (Note 2(m) and (n))	43,326,000	40,492,000	42,991,000
General and administrative expenses	29,367,000	29,192,000	32,778,000
Management fees to related party (Note 3(c))	511,000	1,432,000	2,017,000
Vessel impairment charges (Note 2(l))			104,395,000
(Gain)/loss on sale of vessels (Notes 4)	(2,850,000)	(1,360,000)	1,085,000
Insurance recoveries (Note 8(a))	(1,789,000)
Other operating (income)/loss	(265,000)	603,000	(230,000)
Operating income/(loss), total	142,697,000	63,518,000	(112,675,000)
OTHER INCOME / (EXPENSES):
Interest expense and finance costs (Note 11)	(27,419,000)	(20,239,000)	(21,514,000)
Interest and other income	2,737,000	176,000	728,000
(Loss)/gain on extinguishment of debt	(435,000)	(980,000)	374,000
Gain on spin-off of OceanPal Inc. (Note 3(f))		15,252,000
Gain on dividend distribution (Note 3(f))	589,000
Gain/(loss) from equity method investments (Note 3(c))	894,000	(333,000)	(1,110,000)
Total other expenses, net	(23,634,000)	(6,124,000)	(21,522,000)
Net income/(loss)	119,063,000	57,394,000	(134,197,000)
Dividends on series B preferred shares (Notes 9(b) and 12)	(5,769,000)	(5,769,000)	(5,769,000)
Net income/(loss) attributable to common stockholders	$ 113,294,000	$ 51,625,000	$ (139,966,000)
Earnings/(loss) per common share, basic (Note 12)	$ 1.42	$ 0.64	$ (1.62)
Earnings/(loss) per common share, diluted (Note 12)	$ 1.36	$ 0.61	$ (1.62)
Weighted average number of common shares outstanding, basic (Note 12)	80,061,040	81,121,781	86,143,556
Weighted average number of common shares outstanding, diluted (Note 12)	83,318,901	84,856,840	86,143,556

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
Net income/(loss)	$ 119,063	$ 57,394	$ (134,197)
Other comprehensive income/(loss) - Defined benefit plan	182	2	(40)
Comprehensive income/(loss)	$ 119,245	$ 57,396	$ (134,237)

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Series B Preferred Stock [Member]	Preferred Stock [Member] Series B Preferred Stock [Member]	Preferred Stock [Member] Series C Preferred Stock [Member]	Preferred Stock [Member] Series D Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Other Comprehensive Income / (Loss) [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] Series B Preferred Stock [Member]
Balance, shares at Dec. 31, 2019			2,600,000	10,675		91,193,339
Balance at Dec. 31, 2019	$ 570,064		$ 26			$ 912	$ 1,021,633	$ 109	$ (452,616)
Net income/(loss)	(134,197)								(134,197)
Issuance of restricted stock and compensation cost, shares (Note 9(h))						2,200,000
Issuance of restricted stock and compensation cost (Note 9(h))	10,511					$ 22	10,489
Stock repurchased and retired, shares (Note 9(e))						(4,118,337)
Stock repurchased and retired (Note 9(e))	(11,999)					$ (41)	(11,958)
Dividends on series B preferred stock (Note 9(b))	(5,769)								(5,769)
Other comprehensive income/(loss)	(40)							(40)
Balance, shares at Dec. 31, 2020			2,600,000	10,675		89,275,002
Balance at Dec. 31, 2020	428,570		$ 26			$ 893	1,020,164	69	(592,582)
Net income/(loss)	57,394								57,394
Issuance of stock, shares					400
Issuance of stock	254						254
Issuance of restricted stock and compensation cost, shares (Note 9(h))						8,260,000
Issuance of restricted stock and compensation cost (Note 9(h))	7,442					$ 83	7,359
Stock repurchased and retired, shares (Note 9(e))						(12,862,744)
Stock repurchased and retired (Note 9(e))	(45,369)					$ (129)	(45,240)
Dividends on series B preferred stock (Note 9(b))	(5,769)								(5,769)
Dividends on common stock (Note 9(f))	(8,820)								(8,820)
OceanPal Inc. spin-off (Note 9(g))	(40,509)								(40,509)
Other comprehensive income/(loss)	2							2
Balance, shares at Dec. 31, 2021			2,600,000	10,675	400	84,672,258
Balance at Dec. 31, 2021	393,195		$ 26			$ 847	982,537	71	(590,286)
Net income/(loss)	119,063								119,063
Issuance of stock, shares						877,581
Issuance of stock	5,322					$ 9	5,313
Issuance of restricted stock and compensation cost, shares (Note 9(h))						1,470,000
Issuance of restricted stock and compensation cost (Note 9(h))	9,282					$ 15	9,267
Stock repurchased and retired, shares (Note 9(e))						(820,000)
Stock repurchased and retired (Note 9(e))	(3,799)					$ (8)	(3,791)
Issuance of common stock for vessel acquisitions, shares (Notes 4 and 9(e))						16,453,780
Issuance of common stock for vessel acquisitions (Notes 4 and 9(e))	67,853					$ 164	67,689
Dividends on series B preferred stock (Note 9(b))		$ (5,769)								$ (5,769)
Dividends on common stock (Note 9(f))	(79,812)								(79,812)
Dividends in kind (Note 9(g))	(18,189)								(18,189)
Other comprehensive income/(loss)	182							182
Balance, shares at Dec. 31, 2022			2,600,000	10,675	400	102,653,619
Balance at Dec. 31, 2022	$ 487,328		$ 26			$ 1,027	$ 1,061,015	$ 253	$ (574,993)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash Flows from Operating Activities:
Net income/(loss)	$ 119,063,000	$ 57,394,000	$ (134,197,000)
Adjustments to reconcile net income/(loss) to cash provided by operating activities
Depreciation and amortization of deferred charges	43,326,000	40,492,000	42,991,000
Asset Impairment loss (Note 2(l))			104,395,000
Amortization of debt issuance costs (Note 11)	2,286,000	1,865,000	1,066,000
Compensation cost on restricted stock (Note 9(h))	9,282,000	7,442,000	10,511,000
Provision for credit loss and write offs (Note 2(z) and 3(c))	133,000	300,000
Dividend income (Note 3(f))	(100,000)	(69,000)
Pension and other postretirement benefits	182,000	2,000	(40,000)
(Gain)/loss on sale of vessels (Notes 4)	(2,850,000)	(1,360,000)	1,085,000
Gain on dividend distribution (Note 3(f))	(589,000)
(Gain)/loss on extinguishment of debt (Note 6)	435,000	980,000	(374,000)
Gain on OceanPal spinoff (Note 3(f))		(15,252,000)
(Gain)/loss from equity method investments (Note 3(c))	(894,000)	333,000	1,110,000
(Increase) / Decrease
Accounts receivable, trade	(3,427,000)	1,568,000	2,627,000
Due from related parties	736,000	(56,000)	(1,173,000)
Inventories	1,768,000	(1,581,000)	809,000
Prepaid expenses and other assets	(1,265,000)	1,759,000	1,967,000
Other non-current assets	(16,000)	(1,177,000)	(252,000)
Increase / (Decrease)
Accounts payable, trade and other	1,465,000	1,219,000	(2,836,000)
Due to related parties	(72,000)	154,000	(31,000)
Accrued liabilities	3,956,000	(2,610,000)	(780,000)
Deferred revenue	2,026,000	2,890,000	310,000
Other non-current liabilities	(218,000)	(57,000)	168,000
Drydock cost	(16,368,000)	(4,531,000)	(10,122,000)
Net Cash Provided by Operating Activities	158,859,000	89,705,000	17,234,000
Cash Flows from Investing Activities:
Payments to acquire vessels and vessel improvements (Note 4)	(230,302,000)	(17,393,000)	(6,001,000)
Proceeds from sale of vessels, net of expenses (Note 4)	4,372,000	33,731,000	15,623,000
Proceeds from sale of related party investment			1,500,000
Time deposits (Note 2(e))	(46,500,000)
Payments to joint venture (Note 3(c))		(375,000)	(500,000)
Investment in spun-off subsidiary (Note 3(f))		(1,000,000)
Payments to acquire furniture and fixtures (Note 5)	(667,000)	(1,600,000)	(138,000)
Net Cash Provided by/(Used in) Investing Activities	(273,097,000)	13,363,000	10,484,000
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt and finance liabilities (Notes 6 and 7)	275,133,000	101,279,000
Proceeds from issuance of common stock, net of expenses (Note 9(e))	5,266,000
Proceeds from issuance of preferred stock, net of expenses (Note 9(d))		254,000
Payments of dividends, preferred stock (Note 9(b))	(5,769,000)	(5,769,000)	(5,769,000)
Payments of dividends, common stock (Note 9(f))	(79,812,000)	(8,820,000)
Payments for repurchase of common stock (Note 9(e))	(3,799,000)	(45,369,000)	(11,999,000)
Payments of financing costs (Notes 6 and 7)	(3,302,000)	(7,594,000)	(567,000)
Repayments of long-term debt and finance liabilities (Notes 6 and 7)	(102,839,000)	(93,170,000)	(54,762,000)
Net Cash Provided by / (Used in) Financing Activities	84,878,000	(59,189,000)	(73,097,000)
Cash, Cash Equivalents and Restricted Cash, Period Increase/(Decrease)	(29,360,000)	43,879,000	(45,379,000)
Cash, Cash Equivalents and Restricted Cash, Beginning Balance	126,788,000	82,909,000	128,288,000
Cash, Cash Equivalents and Restricted Cash, Ending Balance	97,428,000	126,788,000	82,909,000
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents	76,428,000	110,288,000	62,909,000
Restricted cash, non-current	21,000,000	16,500,000	20,000,000
Cash, Cash Equivalents and Restricted Cash, Total	97,428,000	126,788,000	82,909,000
SUPPLEMENTAL CASH FLOW INFORMATION
Non-cash acquisition of assets (Note 4)	136,038,000	441,000
Non-cash debt assumed (Note 6)	20,571,000
Stock issued in noncash financing activities (Note 4)	67,909,000
Transfer to investments (Note 4)	1,370,000	441,000	2,474,000
Non-cash debt assumed (Note 6)	47,782,000
Interest paid	$ 21,306,000	$ 19,608,000	$ 21,397,000

XML

Basis of Presentation and General Information

12 Months Ended

Dec. 31, 2022

Basis of Presentation and General Information

Basis of Presentation and General Information

1. Basis of Presentation and General Information 

The accompanying 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 Company is engaged in the ocean transportation of dry bulk cargoes worldwide 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

50

% owned joint venture (Note 3). The fees paid to DSS are eliminated in consolidation. 

The outbreak of war between Russia and the Ukraine has disrupted supply chains and caused instability

in the energy markets and the global economy, which have experienced significant volatility. The United

States and the European Union, among other countries, have announced sanctions against Russia,

including sanctions targeting the Russian oil sector, among those a prohibition on the import of oil and coal

from Russia to the United States.

As of December 31, 2022, and during the year ended December 31, 2022, the Company’s operations, or

counterparties, have not been significantly affected by the war in Ukraine and their implications, however,

as volatility continues it is difficult to predict the long-term impact on the industry and on the Company’s

business and it is possible that in the future third parties with whom the Company has or will have contracts

may be impacted by such events and sanctions. The Company is constantly monitoring the developing

situation, as well as its charterers’ and other counterparties’ response to the market and continuously

evaluates the effect on its operations. As events continue to evolve and additional information becomes

available, the Company’s estimates may change in future periods.

XML

Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Significant Accounting Policies

Significant Accounting Policies

2. Significant Accounting Policies

a) Principles of Consolidation

: The accompanying consolidated financial statements have been

prepared in accordance with U.S. generally accepted accounting principles and include the accounts of

Diana Shipping Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have

been eliminated upon consolidation. Under Accounting Standards Codification (“ASC”) 810

“Consolidation”, the Company consolidates entities in which it has a controlling financial interest, by first

considering if an entity meets the definition of a variable interest entity ("VIE") for which the Company is

deemed to be the primary beneficiary under the VIE model, or if the Company controls an entity through a

majority of voting interest based on the voting interest model. The Company evaluates financial

instruments, service contracts, and other arrangements to determine if any variable interests relating to an

entity exist. For entities in which the Company has a variable interest, the Company determines if the entity

is a VIE by considering whether the entity’s equity investment at risk is sufficient to finance its activities

without additional subordinated financial support and whether the entity’s at-risk equity holders have the

characteristics of a controlling financial interest. In performing the analysis of whether the Company is the

primary beneficiary of a VIE, the Company considers whether it individually has the power to direct the

activities of the VIE that most significantly affect the entity’s performance and also has the obligation to

absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The

Company had identified it had variable interests in DWM, as it was considered that all of its activities either

involved or were conducted on behalf of the Company and its related parties but was not the primary

beneficiary. The Company has reconsidered this initial determination and determined that since DWM

meets the definition of a business and the Company does not have any obligations to absorb losses of the

joint venture, DWM is not a VIE. If the Company holds a variable interest in an entity that previously was

not a VIE, it reconsiders whether the entity has become a VIE.

b) Use of Estimates:

The preparation of consolidated financial statements in conformity with U.S.

generally accepted accounting principles requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at

the date of the consolidated financial statements and the reported amounts of revenues and expenses

during the reporting period. Actual results could differ from those estimates.

c) Other Comprehensive Income / (Loss):

The Company separately presents certain transactions,

which are recorded directly as components of stockholders’ equity. Other Comprehensive Income / (Loss)

is presented in a separate statement.

d) Foreign Currency Translation:

The functional currency of the Company is the U.S. dollar because

the Company’s vessels operate in international shipping markets, and therefore primarily transact business

in U.S. dollars. The Company’s accounting records are maintained in U.S. dollars. Transactions involving

other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the

time of the transactions. At the balance sheet dates, monetary assets and liabilities which are denominated

in other currencies are translated into U.S. dollars at the year-end exchange rates. Resulting gains or

losses are included in other operating (income)/loss in the accompanying consolidated statements of

operations.

e) Cash, Cash Equivalents and Time Deposits:

The Company considers highly liquid investments

such as time deposits, certificates of deposit and their equivalents with an original maturity of up to about

three months to be cash equivalents. Time deposits with maturity above three months are removed from

cash and cash equivalents and are separately presented as time deposits. Restricted cash consists mainly

of cash deposits required to be maintained at all times under the Company’s loan facilities (Note 6).

f) Accounts Receivable, Trade:

The amount shown as accounts receivable, trade, at each balance

sheet date, includes receivables from charterers for hire from lease agreements, net of provisions for

doubtful accounts, if any. At each balance sheet date, all potentially uncollectible accounts are assessed

individually for purposes of determining the appropriate provision for doubtful accounts. As of December

31, 2022 and 2021 there was

no

 provision for doubtful accounts. The Company does not recognize interest

income on trade receivables as all balances are settled within a year.

g) Inventories:

Inventories consist of lubricants and victualling which are stated, on a consistent

basis, at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the

ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

When evidence exists that the net realizable value of inventory is lower than its cost, the difference is

recognized as a loss in earnings in the period in which it occurs. Cost is determined by the first in, first out

method. Amounts removed from inventory are also determined by the first in first out method. Inventories

may also consist of bunkers, when on the balance sheet date, a vessel is without employment. Bunkers, if

any, are also stated at the lower of cost or net realizable value and cost is determined by the first in, first

out method.

h) Vessel Cost

: Vessels are stated at cost which consists of the contract price and any material

expenses incurred upon acquisition or during construction. Expenditures for conversions and major

improvements are also capitalized when they appreciably extend the life, increase the earning capacity or

improve the efficiency or safety of the vessels; otherwise, these amounts are charged to expense as

incurred. Interest cost incurred during the assets' construction periods that theoretically could have been

avoided if expenditure for the assets had not been made is also capitalized. The capitalization rate, applied

on accumulated expenditures for the vessel, is based on interest rates applicable to outstanding borrowings

of the period.

i) Vessels held for sale:

 The Company classifies assets as being held for sale when the respective

criteria are met. Long-lived assets or disposal groups classified as held for sale are measured at the lower

of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet

the criteria to be held for sale. The fair value less cost to sell of an asset held for sale is assessed at each

reporting period it remains classified as held for sale. When the plan to sell an asset changes, the asset is

reclassified as held and used, measured at the lower of its carrying amount before it was recorded as held

for sale, adjusted for depreciation, and the asset’s fair value at the date of the decision not to sell.

j) Sale and leaseback:

 In accordance with ASC 842-40 in a sale-leaseback transaction where the

sale of an asset and leaseback of the same asset by the seller is involved, the Company, as seller-lessee,

should firstly determine whether the transfer of an asset shall be accounted for as a sale under ASC 606.

For a sale to have occurred, the control of the asset would need to be transferred to the buyer and the

buyer would need to obtain substantially all the benefits from the use of the asset. As per the

aforementioned guidance, sale and leaseback transactions, which include an obligation for the Company,

as seller-lessee, to repurchase the asset, or other situations where the leaseback would be classified as a

finance lease, are determined to be failed sales under ASC 842-40. Consequently, the Company does not

derecognize the asset from its balance sheet and accounts for any amounts received under the sale and

leaseback agreement as a financing arrangement.

k) Property and equipment:

 The Company owns the land and building where its offices are located.

The Company also owns part of a plot acquired for office use (Note 5). Land is stated at cost and it is not

subject to depreciation. The building has an estimated useful life of

55 years

 with

no

 residual value.

Furniture, office equipment and vehicles have a useful life of

5 years

, except for a car owned by the

Company, which has a useful life of

10 years

. Computer software and hardware have a useful life of

three

years

. Depreciation is calculated on a straight-line basis.

l) Impairment of Long-Lived Assets:

Long-lived assets are reviewed for impairment whenever

events or changes in circumstances (such as market conditions, obsolesce or damage to the asset,

potential sales and other business plans) indicate that the carrying amount of an asset may not be

recoverable. When the estimate of undiscounted projected net operating cash flows, excluding interest

charges, expected to be generated by the use of an asset over its remaining useful life and its eventual

disposition is less than its carrying amount, the Company evaluates the asset for impairment loss.

Measurement of the impairment loss is based on the fair value of the asset, determined mainly by third

party valuations. 

For vessels, the Company calculates undiscounted projected net operating cash flows by considering the

historical and estimated vessels’ performance and utilization with the significant assumption being future

charter rates for the unfixed days, using the most recent

10

-year average of historical 1 year time charter

rates available for each type of vessel over the remaining estimated life of each vessel, net of commissions.

Historical ten-year blended average one-year time charter rates are in line with the Company’s overall

chartering strategy, they reflect the full operating history of vessels of the same type and particulars with

the Company’s operating fleet and they cover at least a full business cycle, where applicable. When the

10-year average of historical 1 year time charter rates is not available for a type of vessels, the Company

uses the average of historical 1 year time charter rates of the available period. Other assumptions used in

developing estimates of future undiscounted cash flow are charter rates calculated for the fixed days using

the fixed charter rate of each vessel from existing time charters, the expected outflows for scheduled

vessels’ maintenance; vessel operating expenses; fleet utilization, and the vessels’ residual value if sold

for scrap. Assumptions are in line with the Company’s historical performance and its expectations for future

fleet utilization under its current fleet deployment strategy. This calculation is then compared with the

vessels’ net book value plus unamortized deferred costs. The difference between the carrying amount of

the vessel plus unamortized deferred costs and their fair value is recognized in the Company's accounts

as impairment loss.

The Company’s impairment assessment resulted in the

recognition of impairment

 on certain vessels’

carrying value in 2020 amounting to $

104,395

.

No

 impairment loss was identified or recorded in 2021 and

2022.

For property and equipment, the Company determines undiscounted projected net operating cash flows

by considering an estimated monthly rent the Company would have to pay in order to lease a similar

property, during the useful life of the building.

No

 impairment loss was identified or recorded for 2022, 2021

and 2020 and the Company has not identified any other facts or circumstances that would require the write

down of the value of its land or building in the near future.

m) Vessel Depreciation:

Depreciation is computed using the straight-line method over the estimated

useful life of the vessels, after considering the estimated salvage (scrap) value. Each vessel’s salvage

value is equal to the product of its lightweight tonnage and estimated scrap rate. Management estimates

the useful life of the Company’s vessels to be

25 years

 from the date of initial delivery from the shipyard.

Second-hand vessels are depreciated from the date of their acquisition through their remaining estimated

useful life. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its

remaining useful life is adjusted at the date such regulations are adopted.

n) Deferred Costs

: The Company follows the deferral method of accounting for dry-docking and

special survey costs whereby actual costs incurred are deferred and amortized on a straight-line basis over

the period through the date the next survey is scheduled to become due. Unamortized deferred costs of

vessels that are sold or impaired are written off and included in the calculation of the resulting gain or loss

in the year of the vessel’s sale (Note 4) or impairment.

o) Financing Costs

: Fees paid for obtaining finance liabilities, fees paid to lenders for obtaining new

loans, new bonds, or refinancing existing ones accounted as loan modification, are deferred and recorded

as a contra to debt. Other fees paid for obtaining loan facilities not used at the balance sheet date are

deferred. Fees relating to drawn loan facilities are amortized to interest and finance costs over the life of

the related debt using the effective interest method and fees incurred for loan facilities not used at the

balance sheet date are amortized using the straight-line method according to their availability terms.

Unamortized fees relating to loans or bonds repaid or repurchased or refinanced as debt extinguishment

are written off in the period the repayment, prepayment, repurchase or extinguishment is made and

included in the determination of gain/loss on debt extinguishment. Loan commitment fees are expensed in

the period incurred, unless they relate to loans obtained to finance vessels under construction, in which

case, they are capitalized to the vessels’ cost.

p) Concentration of Credit Risk

: Financial instruments, which potentially subject the Company to

significant concentrations of credit risk, consist principally of cash and trade accounts receivable. The

Company places its temporary cash investments, consisting mostly of deposits, with various qualified

financial institutions and performs periodic evaluations of the relative credit standing of those financial

institutions that are considered in the Company’s investment strategy. The Company limits its credit risk

with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and

generally does not require collateral for its accounts receivable and does not have any agreements to

mitigate credit risk.

q) Accounting for Revenues and Expenses:

Revenues are generated from time charter

agreements which contain a lease as they meet the criteria of a lease under ASC 842. Agreements with

the same charterer are accounted for as separate agreements according to their specific terms and

conditions. All agreements contain a minimum non-cancellable period and an extension period at the option

of the charterer. Each lease term is assessed at the inception of that lease. Under a time charter agreement,

the charterer pays a daily hire for the use of the vessel and reimburses the owner for hold cleanings, extra

insurance premiums for navigating in restricted areas and damages caused by the charterers. Revenues

from time charter agreements providing for varying annual rates are accounted for as operating leases and

thus recognized on a straight-line basis over the non-cancellable rental periods of such agreements, as

service is performed. The charterer pays to third parties port, canal and bunkers consumed during the term

of the time charter agreement, unless they are for the account of the owner, in which case, they are included

in voyage expenses. Voyage expenses also include commissions on time charter revenue (paid to the

charterers, the brokers and the managers) and gain or loss from bunkers resulting 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 (Note 10). Under a time charter agreement,

the owner pays for the operation and the maintenance of the vessel, including crew, insurance, spares and

repairs, which are recognized in operating expenses. The Company, as lessor, has elected not to allocate

the consideration in the agreement to the separate lease and non-lease components (operation and

maintenance of the vessel) as their timing and pattern of transfer to the charterer, as the lessee, are the

same and the lease component, if accounted for separately, would be classified as an operating lease.

Additionally, the lease component is considered the predominant component, as the Company has

assessed that more value is ascribed to the vessel rather than to the services provided under the time

charter contracts. In time charter agreements apart from the agreed hire rate, the Company may be entitled

to an additional income, such as ballast bonus. Ballast bonus is paid by charterers for repositioning the

vessel. The Company analyzes terms of each contract to assess whether income from ballast bonus is

accounted together with the lease component over the duration of the charter or as service component

under ASC 606. Deferred revenue includes cash received prior to the balance sheet date for which all

criteria to recognize as revenue have not been met.

r) Repairs and Maintenance:

 All repair and maintenance expenses including underwater inspection

expenses are expensed in the year incurred. Such costs are included in vessel operating expenses in the

accompanying consolidated statements of operations.

s) Earnings / (loss) per Common Share:

 Basic earnings / (loss) per common share are computed

by dividing net income / (loss) available to common stockholders by the weighted average number of

common shares outstanding during the year. Shares issuable at little or no cash consideration upon

satisfaction of certain conditions, are considered outstanding and included in the computation of basic

earnings/(loss) per share as of the date that all necessary conditions have been satisfied. Diluted earnings

per common share, reflects the potential dilution that could occur if securities or other contracts to issue

common stock were exercised.

t) Segmental Reporting:

The Company engages in the operation of dry-bulk vessels which has been

identified as one reportable segment. The operation of the vessels is the main source of revenue

generation, the services provided by the vessels are similar and they all operate under the same economic

environment. Additionally, the vessels do not operate in specific geographic areas, as they trade worldwide;

they do not trade in specific trade routes, as their trading (route and cargo) is dictated by the charterers;

and the Company does not evaluate the operating results for each type of dry bulk vessels (i.e. Panamax,

Capesize etc.) for the purpose of making decisions about allocating resources and assessing performance.

u) Fair Value Measurements

: The Company classifies and discloses its assets and liabilities carried

at fair value in one of the following categories: Level 1: Quoted market prices in active markets for identical

assets or liabilities; Level 2: Observable market-based inputs or unobservable inputs that are corroborated

by market data; Level 3: Unobservable inputs that are not corroborated by market data.

v) Share Based Payments:

 The Company issues restricted share awards which are measured at

their grant date fair value and are not subsequently re-measured. That cost is recognized over the period

during which an employee is required to provide service in exchange for the award—the requisite service

period (usually the vesting period). No compensation cost is recognized for equity instruments for which

employees do not render the requisite service unless the board of directors determines otherwise.

Forfeitures of awards are accounted for when and if they occur. If an equity award is modified after the

grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair

value of the modified award over the fair value of the original award immediately before the modification.

w) Equity method investments:

 Investments in common stock in entities over which the Company

exercises significant influence but does not exercise control are accounted for by the equity method of

accounting. Under this method, the Company records such an investment at cost and adjusts the carrying

amount for its share of the earnings or losses of the entity subsequent to the date of investment and reports

the recognized earnings or losses in income. Dividends received, if any, reduce the carrying amount of the

investment. When the carrying value of an equity method investment is reduced to zero because of losses,

the Company does not provide for additional losses unless it is committed to provide further financial

support to the investee. As of December 31, 2021, the Company’s investment in DWM is classified as a

liability because the Company absorbed such losses (Note 3(c)). The Company also evaluates whether a

loss in value of an investment that is other than a temporary decline should be recognized. Evidence of a

loss in value might include absence of an ability to recover the carrying amount of the investment or inability

of the investee to sustain an earnings capacity that would justify the carrying amount of the investment.

x) Going concern:

Management evaluates, at each reporting period, whether there are conditions or

events that raise substantial doubt about the Company's ability to continue as a going concern within one

year from the date the financial statements are issued.

y) Shares repurchased and retired:

The Company’s shares repurchased for retirement, are

immediately cancelled and the Company’s share capital is accordingly reduced. Any excess of the cost of

the shares over their par value is allocated in additional paid-in capital, in accordance with ASC 505-30-

30, Treasury Stock.

z) Financial Instruments, credit losses

: At each reporting date, the Company evaluates its financial

assets individually for credit losses and presents such assets in the net amount expected to be collected

on such financial asset. When financial assets present similar risk characteristics, these are evaluated on

a collective basis. When developing an estimate of expected credit losses, the Company considers

available information relevant to assessing the collectability of cash flows such as internal information, past

events, current conditions and reasonable and supportable forecasts. As of December 31, 2021, the

Company assessed the financial condition of DWM, changed its estimate on the recoverability of its

receivable due from DWM relating to the fine paid by the Company on behalf of DWM (Notes 3(c) and 8(b))

and determined that part of the amount may not be recoverable. As a result, the Company recorded as of

December 31, 2021, an allowance for credit losses amounting to $

300

, based on probability of default as

there was no previous loss record. The allowance for credit losses was included in “Other operating

(income)/loss” in the 2021 accompanying consolidated statements of operations. The allowance was

reversed in 2022 as the full amount was recovered and its reversal is included in “Other operating

(income)/loss” in the 2022 accompanying consolidated statements of operations.

No

 credit losses were

identified and recorded in 2020 and 2022.

aa) Financial Instruments, Recognition and Measurement:

According to ASC 321-10-35-2, the

Company has elected to measure equity securities without a readily determinable fair value, that do not

qualify for the practical expedient in ASC 820

Fair Value Measurement

to estimate fair value using the NAV

per share (or its equivalent), at its cost minus impairment, if any. If the Company identifies observable price

changes in orderly transactions for the identical or a similar investment of the same issuer, it shall measure

equity securities at fair value as of the date that the observable transaction occurred. The Company shall

continue to apply this measurement until the investment does not qualify to be measured in accordance

with this paragraph. At each reporting period, the Company reassesses whether an equity investment

without a readily determinable fair value qualifies to be measured in accordance with this paragraph. The

Company may subsequently elect to measure equity securities at fair value and the election to measure

securities at fair value shall be irrevocable. Any resulting gains or losses on the securities for which that

election is made shall be recorded in earnings at the time of the election. At each reporting period, the

Company also evaluates indicators such as the investee’s performance and its ability to continue as going

concern and market conditions, to determine whether an investment is impaired in which case, the

Company will estimate the fair value of the investment to determine the amount of the impairment loss.

ab) Non-monetary transactions and spinoffs:

Non-monetary transactions are recorded based on the

fair values of the assets (or services) involved unless the fair value of neither the asset received, nor the

asset relinquished is determinable within reasonable limits. Also, under ASC 845-10-30-10 Nonmonetary

Transactions, Overall, Initial Measurement, Nonreciprocal Transfers with Owners and ASC 505-60 Spinoffs

and Reverse Spinoffs, if the pro-rata spinoff of a consolidated subsidiary or equity method investee does

not meet the definition of a business under ASC 805, the nonreciprocal transfer of nonmonetary assets is

accounted for at fair value, if the fair value of the nonmonetary asset distributed is objectively measurable

and would be clearly realizable to the distributing entity in an outright sale at or near the time of the

distribution, and the spinor recognizes a gain or loss for the difference between the fair value and book

value of the spinee. A transaction is considered pro rata if each owner receives an ownership interest in

the transferee in proportion to its existing ownership interest in the transferor (even if the transferor retains

an ownership interest in the transferee). In accordance with ASC 805 Business Combinations: Clarifying

the Definition of a Business, if substantially all of the fair value of the gross assets distributed in a spinoff

are concentrated in a single identifiable asset or group of similar identifiable assets, then the spinoff of a

consolidated subsidiary does not meet the definition of a business (Note 3(f)). Other nonreciprocal transfers

of nonmonetary assets to owners are accounted for at fair value if the fair value of the nonmonetary asset

distributed is objectively measurable and would be clearly realizable to the distributing entity in an outright

sale at or near the time of the distribution.

ac) Contracts in entity’s equity:

 Under ASC 815-40 contracts that require settlement in shares are

considered equity instruments, unless an event that is not in the entity’s control would require net cash

settlement. Additionally, the entity should have sufficient authorized and unissued shares, the contract

contains an explicit share limit, there is no requirement to net cash settle the contract in the event the entity

fails to make timely filings with the Securities and Exchange Commission (SEC) and there are no cash

settled top-off or make-whole provisions. The Company follows the provision of ASC 480 “Distinguishing

Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine whether the warrants issued

should be classified as permanent equity, temporary equity or liability. The Company has determined that

warrants are free standing instruments and are out of scope of ASC 480 and meet all criteria for equity

classification.

New Accounting Pronouncements - Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the

Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and

exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by

reference rate reform. ASU 2020-04 applies to contracts that reference LIBOR or another reference rate

expected to be terminated because of reference rate reform. The amendments in this Update are effective

for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the

amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of

an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an

interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements

are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this Update

must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. An

entity may elect to apply the amendments in this Update to eligible hedging relationships existing as of the

beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships

entered into after the beginning of the interim period that includes March 12, 2020. An entity may elect

certain optional expedients for hedging relationships that exist as of December 31, 2022 and maintain

those optional expedients through the end of the hedging relationship. In December 2022, the FASB issued

ASU No. 2022-06, Deferral of the Sunset Date of Reference Rate Reform (Topic 848). Topic 848 provides

optional expedients and exceptions for applying GAAP to transactions affected by reference rate (e.g.,

LIBOR) reform if certain criteria are met, for a limited period of time to ease the potential burden in

accounting for (or recognizing the effects of) reference rate reform on financial reporting. The ASU deferred

the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company is exposed

to LIBOR and LIBOR changes under its loan agreements with several banks. As of December 31, 2022,

the Company used LIBOR and will continue to use LIBOR until it is discontinued or replaced by another

rate to be agreed with the related banks. During 2022, the Company entered into a new loan agreement

and elected to use term SOFR as a replacement for LIBOR and it is probable that it will use the same rate

when the agreements under LIBOR are modified. The Company does not expect that the change of LIBOR

to term SOFR will have a significant impact in its results of operations and cash flows.

XML

Transactions with related parties

12 Months Ended

Dec. 31, 2022

Transactions with related parties

Transactions with related parties

3. Transactions with related parties

a) Altair Travel Agency S.A. (“Altair”):

 The Company uses the services of an affiliated travel agent,

Altair, which is controlled by the Company’s Chairman of the Board. Travel expenses for 2022, 2021 and

2020 amounted to $

2,644

, $

2,210

 and $

1,854

, respectively, and are mainly included in “Vessels, net book

value”, “Vessel operating expenses” and “General and administrative expenses” in the accompanying

consolidated financial statements. As of December 31, 2022 and 2021, an amount of $

136

 and $

138

,

respectively, was payable to Altair and is included in “Due to related parties” in the accompanying

consolidated balance sheets. 

b) Steamship Shipbroking Enterprises Inc. or Steamship:

 Steamship is a company controlled by

the Company’s Chairman of the Board which provides brokerage services to DSI for a fixed monthly fee

plus commission on the sale of vessels, pursuant to a Brokerage Services Agreement. For 2022, 2021 and

2020 brokerage fees amounted to $

3,309

, $

3,309

 and $

2,653

, respectively, and are included in “General

and administrative expenses” in the accompanying consolidated statements of operations. For 2022, 2021,

and 2020, commissions on the sale and purchase of vessels amounted to $

1,219

, $

712

 and $

576

,

respectively and are included in the calculation of impairment charge when the vessels were recorded at

fair value less cost to sell, or the gain/loss on the sale of vessels. As of December 31, 2022 and 2021,

there was

no

 amount due to Steamship. 

c) Diana Wilhelmsen Management Limited, or DWM:

 DWM is a joint venture between Diana Ship

Management Inc., a wholly owned subsidiary of DSI, and Wilhelmsen Ship Management Holding AS, an

unaffiliated third party, each holding

50

% of DWM. The DWM office is located in Athens, Greece. During

2021 and 2020, each

50

% shareholder of DWM contributed an amount of $

375

 and $

500

, respectively, as

additional investment to DWM. As of December 31, 2022, the investment in DWM amounted to $

506

 and

is separately presented in “Equity method investments” in the accompanying 2022 consolidated balance

sheet and as of December 31, 2021, the investment in DWM was a liability amounting to $

388

 and is

included in “Due to related parties” in the accompanying 2021 consolidated balance sheet. In 2022, the

investment in DWM resulted in gain of $

894

, and in 2021 and in 2020, resulted in a loss of $

333

 and

$

1,110

, respectively, included in “Gain/(loss) from equity method investments” in the accompanying

consolidated statements of operations.

From October 8, 2019 until May 24, 2021, DSS outsourced the management of certain vessels to DWM

for which DSS was paying a fixed monthly fee per vessel and a percentage of those vessels’ gross

revenues. On May 24, 2021, the management of the same vessels was transferred to DWM directly,

whereas the vessel owning companies of these vessels entered into new management agreements with

DWM under which they pay a fixed monthly fee and a percentage of their gross revenues. Management

fees paid to DWM in 2022, 2021 and 2020 amounted to $

511

, $

1,432

 and $

2,017

, respectively, and are

separately presented as “Management fees to related party” in the accompanying consolidated statements

of operations. Additionally, in 2022, the Company paid to DWM management fees amounting to $

272

,

included in “Advances for vessel acquisitions” and “Vessels, net”, relating to the management of

four

Ultramax vessels the Company assigned to DWM with new management agreements and incurred during

the predelivery period of the vessels. Commissions for 2022, 2021 and 2020 amounted to $

162

, $

200

 and

$

353

, respectively, and are included in “Voyage expenses” (Note 10). As of December 31, 2022 and 2021,

there was an amount of $

216

 and $

952

 due from DWM, included in “Due from related parties” in the

accompanying consolidated balance sheets (Note 8(b)). As of December 31, 2021, the amount due from

related parties includes a provision of $

300

 for credit losses (Note 2 (z)), which in 2022 was reversed, as

the due amount was collected.

d) Series D Preferred Stock

: On June 22, 2021, the Company issued

400

 shares Series D Preferred

Stock, to an affiliate of its Chief Executive Officer, Mrs. Semiramis Paliou for an aggregate purchase price

of $

254

 net of expenses (Note 9).

e) Sale and purchase of Bond by executives

: On June 22, 2021, entities affiliated with executive

officers and directors of the Company sold their bonds of the Company’s 9.5% Senior Unsecured Bond

and participated in the 8.375% Senior Unsecured Bond with an aggregate principal amount of $

21,000

(Note 6).

f) OceanPal Inc., or OceanPal:

 in November 2021, the Company entered into a Contribution and

Conveyance agreement with its wholly owned subsidiary OceanPal, to contribute to it

three

 of its

shipowning subsidiaries and working capital of $

1,000

 in exchange for

500,000

 of OceanPaI's Series B

Preferred Shares;

10,000

 of OceanPal's Series C Convertible Preferred Shares; and

100

% of the common

shares of OceanPal to be issued and outstanding on the spinoff with cancellation of the existing outstanding

common shares. On November 29, 2021, the Company completed a pro rata distribution of the common

stock of OceanPal to the Company’s stockholders of record as of the close of business on November 3,

2021. Each of the Company’s stockholders received one share of OceanPal Inc. common stock for each

ten shares of the Company’s common stock held as of the close of business on November 3, 2021. As of

December 31, 2021, the Company evaluated OceanPal’s spinoff and concluded that it was a pro rata

distribution to the owners of the Company of shares of a consolidated subsidiary that does not meet the

definition of a business under ASC 805 Business Combinations, as the fair value of the gross assets

contributed to OceanPal was concentrated in a group of similar identifiable assets, the vessels. The

Company also assessed that the fair value of the nonmonetary assets transferred to OceanPal was

objectively measurable and clearly realizable to the transferor in an outright sale at or near the time of the

distribution. The spinoff was measured at fair value and a gain of $

15,252

, being the difference between

the fair value and book value of the OceanPal, was recognized and separately presented as “Gain on

spinoff of OceanPal Inc.” in the accompanying consolidated statements of operations. 

The fair value of the assets contributed, amounting to $

48,084

 less the fair value of

500,000

 of OceanPal’s

Series B Preferred Shares and

10,000

 of OceanPal’s Series C Convertible Preferred Shares, issued by

OceanPal to Diana in connection with the transaction, amounting to $

7,575

, was recorded as dividend in

the Company’s consolidated statement of stockholders’ equity for the year ended December 31, 2021. The

fair value of the vessels was measured on the date of the spinoff, on November 29, 2021, and was

determined through Level 2 inputs of the fair value hierarchy by taking into consideration third party

valuations which were based on the last done deals of sale of vessels, on a charter free basis, with similar

characteristics, such as type, size and age at the specific dates. The fair value of the remaining assets

contributed approximated their carrying value. 

Since the spinoff, the Company is the holder of Series B Preferred Shares and Series C Convertible

Preferred Shares of OceanPal, or together the “OceanPal Shares”. Series B Preferred Shares entitle the

holder to

2,000

 votes on all matters submitted to vote of the stockholders of the Company, provided

however, that the total number of votes shall not exceed

34

% of the total number of votes, provided further,

that the total number of votes entitled to vote, including common stock or any other voting security, would

not exceed

49

% of the total number of votes. 

Series C Preferred Shares do not have voting rights unless related to amendments of the Articles of

Incorporation that adversely alter the preference, powers or rights of the Series C Preferred Shares or to

issue Parity Stock or create or issue Senior Stock. Series C Preferred Shares have become convertible

into common stock at the Company’s option since the first anniversary of the issue date, at a conversion

price equal to the lesser of $

6.5

 and the 10-trading day trailing VWAP of OceanPal’s common shares,

subject to adjustments. Additionally, Series C Preferred Shares have a cumulative preferred dividend

accruing at the rate of

8

% per annum, payable in cash or, at OceanPal’s election, in kind and has a

liquidation preference equal to the stated value of $

10,000

. As there was no observable market for the

OceanPal Shares, at the spinoff the Series B Preferred Shares were recorded at their par value, or $

5

,

which the Company assessed was the fair value, and Series C Preferred Shares were recorded at $

7,570

,

being the fair value of the shares determined through Level 2 inputs of the fair value hierarchy by taking

into consideration a third party valuation based on the income approach, taking into account the present

value of the future cash flows the Company expects to receive from holding the equity instrument.

During 2022 and for the period from the spinoff to December 31, 2021, the Company assessed the

existence of an observable market for the OceanPal Shares, the existence of observable price changes

for identical or similar investments of the same issuer and the existence of any indications for impairment.

As per the Company’s assessment no such have been identified as of December 31, 2022 and 2021 and

for the periods then ended and the investments continued to qualify to be measured at cost. As of

December 31, 2022 and 2021, the aggregate value of investments without readily determinable fair values

amounted to $

7,744

 and $

7,644

, respectively, including accrued dividends of $

169

 and $

69

, respectively,

and are separately presented as “Investments in related party” in the accompanying consolidated balance

sheets. Additionally, as of December 31, 2021, an amount of $

70

 was due to OceanPal, as a result of the

spinoff, included in “Due to related parties”, which was settled in 2022.

On September 20, 2022, OceanPal issued

25,000

 Series D Preferred Shares, par value $

0.01

 per share,

as part of the consideration provided to the Company for the acquisition of Baltimore, which was sold to

OceanPal, pursuant to a Memorandum of Agreement dated June 13, 2022, for $

22,000

 before

commissions, of which $

4,400

 was in cash and the balance of $

17,600

 through the Series D Preferred

shares (Note 4). The Company has initially measured its investments on Series D preferred shares at their

fair value on their issuance date on September 20, 2022 and has elected to subsequently measure such

investments in accordance with the paragraph ASC 321-10-35-2 (Note 2(aa)). The fair value of Series D

Preferred Shares, of $

17,600

, was determined through Level 2 inputs of the fair value hierarchy by taking

into consideration a third-party valuation which was based on the income approach, taking into account the

present value of the future cash flows the Company expects to receive from holding the equity instrument.

The shares are convertible into common stock at the Company’s option, provided however that the

Company would not beneficially own greater than

49

% of the outstanding shares of common stock; they

have no voting rights; they have a cumulative dividend accruing at the rate of

7

% per annum payable in

cash or, at OceanPal’s election, in PIK shares (Series D Preferred shares issued to the holder in lieu of

cash dividends); and they have a liquidation preference equal $

1,000

 per share. From the date of the

acquisition of the investment in Series D preferred shares and up to the date of its distribution to the

Company's shareholders (see discussion below), the Company did not identify any indications for

impairment or any observable prices for identical or similar investments of the same issuer. 

On December 15, 2022, the Company distributed those shares as non-cash dividend (dividend in kind) to

its shareholders of record on November 28, 2022. The shareholders had the option to receive Series D

Preferred Shares or common shares of OceanPal at the conversion rate determined before distribution

according to the terms of the designation statement. The Company’s shareholders received

72,011,457

common shares of OceanPal, and

9,172

 Series D Preferred Shares. The Company accounted for the

transaction as a nonreciprocal transfer with its owners in accordance with ASC 845 and measured their

fair value on the date of declaration at $

18,189

. The fair value of the Series D Preferred Shares was

determined through Level 2 inputs of the fair value hierarchy, by using the income approach, taking into

account the present value of the future cash flows, the holder of shares would expect to receive from

holding the equity instrument. This resulted in gain of $

589

, being the difference between the fair value and

the carrying value of the investment and is separately presented as “Gain on dividend distribution” in the

accompanying consolidated statements of operations.

During 2022 and 2021, dividend income deriving from the Company’s investments in OceanPal amounted

to $

917

 and $

69

, respectively.

XML

Advances for vessel acquisitions and Vessels, net

12 Months Ended

Dec. 31, 2022

Advances for vessel acquisitions and Vessels, net

Advances for vessel acquisitions and Vessels, net

4. Advances for vessel acquisitions and Vessels, net

Advances for Vessel Acquisitions

As of December 31, 2022 and 2021, advances for vessel acquisitions amounted to $

24,123

 and $

16,287

,

respectively, and related to advances paid and predelivery costs incurred for the acquisition of the vessels

described below. As of December 31, 2022, an amount of $

20,571

 included in advances for vessels

acquisitions was held at an escrow account of the designated escrow agent and were the funds borrowed

for the acquisition of one vessel which was delivered to the Company in January 2023 (Note 15).

Vessel Acquisitions

On July 15, 2021 the Company signed, through a separate wholly owned subsidiary, a Memorandum of

Agreement to acquire from an unaffiliated third party, the 2011 built Kamsarmax dry bulk vessel

Leonidas

P.C.

, for a purchase price of $

22,000

. The Company paid an advance of $

4,400

, being

20

% of the purchase

price, included in Advances for vessel acquisitions, in the accompanying 2021 consolidated balance sheet.

The balance of the purchase price was paid on the vessel’s delivery on February 16, 2022, and the advance

and predelivery costs were transferred to Vessels. The Company incurred $

927

 of additional predelivery

expenses.

On December 3, 2021, the Company signed, through a separate wholly owned subsidiary, a Memorandum

of Agreement to acquire from an unaffiliated third party, the Capesize dry bulk vessel

Florida,

 being under

construction, for a purchase price of $

59,275

. The Company paid an amount of $

11,855

, being

20

%

advance of the purchase price included in Advances for vessel acquisitions, in the accompanying 2021

consolidated balance sheet. The balance of the purchase price was paid on the vessel’s delivery on March

29, 2022 and the advance and predelivery costs were transferred to Vessels. The Company incurred

$

1,504

 of additional predelivery expenses.

On August 10, 2022, the Company entered into a master agreement with Sea Trade Holdings Inc. (or “Sea

Trade”), an unaffiliated third party, to acquire nine Ultramax vessels for an aggregate purchase price of

$

330,000

, of which $

220,000

 would be paid in cash and $

110,000

 through an aggregate of

18,487,393

newly issued common shares of the Company, issuable on the delivery of each vessel. In addition to the

master agreement, in August 2022, the Company entered into

nine

 separate memoranda of agreement for

the acquisition of each vessel and issued nine warrants to Sea Trade, for the issuance of the shares,

exercisable on the delivery date of each vessel. During the fourth quarter of 2022, the Company took

delivery of

eight

 vessels for an aggregate value of $

263,719

, of which $

67,909

 was the value of the newly

issued common shares (Notes 9 and 14) and $

4,364

 of additional predelivery expenses. The value of the

shares was determined based on the closing price of the Company’s common stock on the date of delivery

of each vessel, which was also the date of issuance, determined through Level 1 inputs of the fair value

hierarchy. Also, as of December 31, 2022, an amount of $

24,123

 was presented in Advances for vessel

acquisitions being part of the purchase price for the acquisition of the ninth vessel, and additional

predelivery expenses, amounting to $

169

 (Note 15).

Vessel Disposals

On March 16, 2021, the Company through a separate wholly owned subsidiary entered into a Memorandum

of Agreement to sell to an unaffiliated third party the vessel

Naias

, for a sale price of $

11,250

 before

commissions. At the date of the agreement to sell the vessel, the vessel was measured at the lower of its

carrying amount or fair value (sale price) less costs to sell, which was the vessel’s carrying value at $

9,010

,

and was classified in current assets as vessel held for sale, according to the provisions of ASC 360, as all

criteria required for this classification were met. The vessel was delivered to the buyer on July 30, 2021

and the sale of the vessel resulted in gain amounting to $

1,564

, included in “(Gain)/loss on sale of vessels”

in the consolidated statement of operations. 

On June 13, 2022, the Company through a separate wholly owned subsidiary entered into a Memorandum

of Agreement to sell to OceanPal, the vessel

Baltimore

, for a sale price of $

22,000

 before commissions

(Note 3 (f)). On the date of the agreement, the vessel was classified as held for sale according to the

provisions of ASC 360, as all criteria required for this classification were met, at carrying value of $

16,722

and unamortized deferred costs of $

41

, measured at the lower of carrying value and fair value (sale price)

less costs to sell. The vessel was delivered to OceanPal on September 20, 2022 and the sale resulted in

gain amounting to $

2,850

, included in “(Gain)/loss on sale of vessels” in the consolidated statement of

operations.

The amounts reflected in Vessels, net in the accompanying consolidated balance sheets are analyzed as

follows:

Vessel Cost

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2020

$

872,431

$

(156,253)

$

716,178

- Additions for improvements

1,106

-

1,106

- Additions for improvements reclassified from other non-

current assets

441

-

441

- Vessel disposals

(16,120)

7,110

(9,010)

- Vessels contributed to OceanPal

(47,429)

17,127

(30,302)

- Depreciation for the year

-

(34,963)

(34,963)

Balance, December 31, 2021

$

810,429

$

(166,979)

$

643,450

- Additions for vessel acquisitions and improvements

358,504

-

358,504

- Additions for improvements reclassified from other non-

current assets

1,370

-

1,370

- Vessel disposals

(29,175)

12,453

(16,722)

- Depreciation for the year

-

(36,986)

(36,986)

Balance, December 31, 2022

$

1,141,128

$

(191,512)

$

949,616

Additions for vessel improvements mainly relate to the implementation of ballast water treatment and other

works necessary for the vessels to comply with new regulations and be able to navigate to additional ports.

As of December 31, 2022 and 2021, an amount of $

1,370

 and $

441

, respectively, was reclassified to

Vessels, net from other non-current assets and related to ballast water treatment equipment paid in a

previous period but delivered on the vessels during the years ended December 31, 2022 and 2021.

XML

Property and Equipment, net

12 Months Ended

Dec. 31, 2022

Property and Equipment, net

Property and Equipment, net

5. Property and Equipment, net

In November 2021, DSS acquired

1/3

 of a land owned by a then related party company, to which DSS

owned also 1/3, for the purchase price of €

1.1

 million. The total acquisition cost, including expenses and

taxes amounted to $

1,358

.

The Company owns the land and building of its principal corporate offices in Athens, Greece. Additionally,

DSS owns, together with a related party company, another plot of land in the nearby area, acquired for

office use. 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, 2020

$

27,198

$

(5,494)

$

21,704

- Additions in property and equipment

1,600

-

1,600

- Depreciation for the year

-

(462)

(462)

- Disposal of assets

(529)

529

-

Balance, December 31, 2021

$

28,269

$

(5,427)

$

22,842

- Additions in property and equipment

667

-

667

- Depreciation for the year

-

(546)

(546)

Balance, December 31, 2022

$

28,936

$

(5,973)

$

22,963

XML

Long-term debt

12 Months Ended

Dec. 31, 2022

Long-term debt

Long-term debt

6. Long-term debt

The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as

follows:

2022

2021

Senior unsecured bond

125,000

125,000

Secured long-term debt

405,120

306,843

Total long-term debt

$

530,120

$

431,843

Less: Deferred financing costs 

(7,609)

(8,168)

Long-term debt, net of deferred financing costs

$

522,511

$

423,675

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

current

(91,495)

(41,148)

Long-term debt, excluding current maturities

$

431,016

$

382,527

Senior Unsecured Bond

: 

On

September 27, 2018

, the Company issued a $

100,000

 senior unsecured bond maturing in September

2023 of which entities affiliated with executive officers and directors of the Company purchased $

16,200

aggregate principal amount of the bond. The bond was fully repurchased and retired on September 27,

2021 upon the exercise of the Company’s call option pursuant to the Bond terms discussed below. The

bond bore interest at a US Dollar fixed-rate coupon of

9.50

% which was

payable semi-annually in arrears

in March and September of each year

.

The bond was callable in whole or in parts in three years at a price

equal to 103.8% of nominal value; in four years at a price equal to 101.9% of the nominal value and in four

and a half years at a price equal to 100% of nominal value.

 The bond included financial and other covenants

and was trading on the Oslo Stock Exchange under the ticker symbol “DIASH01”. On July 7, 2020, the

Company repurchased $

8,000

 of nominal value of the bond. On June 22, 2021, the Company refinanced

$

74,200

 of nominal value of the bond at a price equal to

106.25

% of nominal value, or $

78,838

, with a

newly issued bond, discussed below. The Company applied the debt modification guidance for the part of

the transaction refinanced by existing investors amounting to $

73,400

 and the debt extinguishment for the

remaining $

800

. An amount of $

5,272

 consisting of the costs paid to the investors who participated in the

refinancing and unamortized deferred fees were deferred over the term of the new bond and an amount of

$

57

 was recorded as loss on debt extinguishment. On September 27, 2021, the Company exercised the

call option and redeemed the balance of the bond at the price of

103.8

%. In 2021 and 2020, the repurchase

of the bond resulted in loss of $

880

 and gain of $

374

, respectively, which is included in “(Loss)/gain on

extinguishment of debt” in the consolidated statements of operations. 

On

June 22, 2021

, the Company issued a $

125,000

 senior unsecured bond maturing in June 2026, which

refinanced the previous bond. 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. Entities affiliated with executive officers and directors of the Company purchased an aggregate of

$

21,000

 principal amount of the bond. The bond bears interest from June 22, 2021 at a US Dollar fixed-

rate coupon of

8.375

% and is payable semi-annually in arrears in June and December of each year. The

bond is callable in whole or in parts in June 2024 at a price equal to

103.35

% of nominal value; between

June 2025 to December 2025 at a price equal to

101.675

% of the nominal value and after December 2025

at a price equal to

100

% of nominal value. The bond includes financial and other covenants and is trading

at Oslo Stock Exchange under the ticker symbol “DIASH02”. 

Secured Term Loans:

Under the secured term loans outstanding as of December 31, 2022,

34

 vessels of the Company’s fleet

are mortgaged with first preferred or priority ship mortgages, having an aggregate carrying value of

$

722,961

. 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 December 31, 2022 and 2021, minimum cash deposits required to be maintained at all times under

the Company’s loan facilities, amounted to $

21,000

 and $

16,500

, 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. For 2022 and 2021, the weighted average

interest rate of the secured term loans was

3.8

% and

2.45

%, respectively.

As of December 31, 2022 and 2021, the Company had the following agreements with banks, either as a

borrower or as a guarantor, to guarantee the loans of its subsidiaries:

Export-Import Bank of China and DnB NOR Bank ASA:

 On

February 15, 2012

, the Company drew

down a first tranche of $

37,450

, under a secured loan agreement, which was repayable in

40

quarterly

instalments of approximately $

628

 each and a balloon of $

12,332

 payable together with the last instalment

on

February 15, 2022

. On

May 18, 2012

, the Company drew down, under the same agreement, a second

tranche of $

34,640

, which was repayable in

40

quarterly

 instalments of approximately $

581

 each and a

balloon of $

11,410

 payable together with the last instalment on

May 18, 2022

. The loan which bore interest

at LIBOR plus a margin of

2.50

% per annum was prepaid in full on May 17, 2021, and unamortized costs

were written off to “(Loss)/gain on extinguishment of debt” in the 2021 consolidated statement of operations.

Commonwealth Bank of Australia, London Branch:

 On January 13, 2014, the Company drew down

$

9,500

 under a secured loan agreement, which was repayable in

32

 equal consecutive

quarterly

instalments of $

156

 each and a balloon of $

4,500

 payable on

January 13, 2022

. The loan which bore

interest at

LIBOR

 plus a margin of

2.25

%, was prepaid in full on May 18, 2021 and unamortized costs were

written off to “(Loss)/gain on extinguishment of debt” in the 2021 consolidated statement of operations.

BNP Paribas (“BNP”):

 On December 19, 2014, the Company drew down $

53,500

 under a secured loan

agreement, to finance part of the acquisition cost of the

G. P. Zafirakis

 and the

P. S. Palios

maturing on

November 30, 2021

. The agreement was refinanced on June 29, 2020, to extend the maturity to

May 19,

2024

. The loan is repayable in equal semi-annual instalments of approximately $

1,574

 and a balloon of

$

23,596

 payable together with the last instalment. The refinanced loan bears interest at LIBOR plus a

margin of

2.5

%. 

On July 16, 2018, the Company drew down $

75,000

 under a secured loan agreement with BNP. The loan

is repayable in consecutive quarterly instalments of $

1,562.5

 and a balloon instalment of $

43,750

 payable

together with the last instalment on

July 17, 2023

. The loan bears interest at LIBOR plus a margin of

2.3

%.

Nordea Bank AB, London Branch (“Nordea”):

 On March 19, 2015, the Company drew down $

93,080

under a secured loan agreement, maturing on

March 19, 2021

. The loan bore interest at LIBOR plus a

margin of

2.1

%. On May 7, 2020, the loan was refinanced to extend the maturity to March 19, 2022 and on

July 29, 2021, the Company entered into a supplemental agreement with Nordea, to extend the loan

maturity to March 2024 and to draw down an additional amount of $

460

. The balance of the refinanced

loan, including the additional $

460

 drawn on July 30, 2021, is repayable in equal consecutive quarterly

instalments of $

1,862

 and a balloon instalment of $

26,522

 payable together with the last instalment on

March 19, 2024

, all other terms of the loan remaining the same. In July 2022, the Company prepaid an

amount of $

4,786

, due to the sale of

Baltimore

to OceanPal (Note 4). Unamortized finance costs relating

to the part of the loan prepaid, were written off to “(Loss)/gain on extinguishment of debt” in the 2022

consolidated statement of operations. Following this prepayment, the loan is repayable in equal

quarterly

instalments of $

1,636

 and a balloon of $

23,313

 payable together with the last instalment on

March 19,

2024

. 

On September 30, 2022, the Company entered into a $

200

 million loan agreement to finance the acquisition

price of

9

 ultramax vessels (Note 4). The Company drew down $

197,236

 under the loan, in tranches for

each vessel on their delivery to the Company. On December 12, 2022, the Company prepaid $

21,937

under the loan, attributed to DSI Andromeda, following the vessel’s sale under a sale and leaseback

agreement. (Note 7). Unamortized finance costs relating to the part of the loan prepaid, were written off to

“(Loss)/gain on extinguishment of debt” in the 2022 consolidated statement of operations. Following this

prepayment, the loan is repayable in

20

 equal

quarterly

 instalments of an aggregate amount of $

3,719

,

and a balloon amounting to $

100,912

 payable together with the last instalment on

October 11, 2027

. The

loan bears interest at term SOFR plus a margin of

2.25

%. Loan fees amounted to $

2,069

 presented as

contra to debt and commitment fees amounted to $

191

, included in Interest expense and finance costs in

the accompanying 2022 consolidated statement of operations.

ABN AMRO Bank N.V., or ABN:

 On May 22, 2020, the Company signed a term loan facility with ABN, in

the amount of $

52,885

 to combine two loans outstanding with ABN. Tranche A is payable in consecutive

quarterly

 instalments of $

800

 each and a balloon instalment of $

9,000

 payable together with the last

instalment on

June 28, 2024

. The tranche bears interest at LIBOR plus a margin of

2.25

%. Tranche B is

repayable in equal consecutive

quarterly

 instalments of about $

994

 each and a balloon of $

13,391

 payable

together with the last instalment on

June 28, 2024

, and bears interest at LIBOR plus a margin of

2.4

%. 

On May 20, 2021, the Company, drew down $

91,000

 under a secured sustainability linked loan facility with

ABN AMRO Bank N.V, dated May 14, 2021, which was used to refinance existing loans. The loan was

repayable in consecutive

quarterly

 instalments of $

3,390

 each and a balloon of $

23,200

 payable together

with the last instalment, on

May 20, 2026

. On August 22, 2022, and following the sale and leaseback

agreements of the vessels

Santa Barbara

 and

New Orleans

, which were mortgaged to secure the loan, the

Company prepaid an amount of $

30,791

, which was the part of the loan attributed to the two vessels.

Unamortized finance costs relating to the part of the loan prepaid, were written off to “(Loss)/gain on

extinguishment of debt” in the 2022 consolidated statement of operations. Following this prepayment, the

loan is repayable in consecutive

quarterly

 instalments of $

1,980

 and a balloon of $

13,553

 payable together

with the last instalment, on

May 20, 2026

. The loan bears interest at LIBOR plus a margin of

2.15

% per

annum, which may be adjusted annually by maximum

10

 basis points upwards or downwards, subject to

the performance under certain sustainability KPIs.

Danish Ship Finance A/S:

 On April 30, 2015, the Company drew down $

30,000

 under a loan agreement,

which was repayable in

28

 equal consecutive

quarterly

 instalments of $

500

 each and a balloon of $

16,000

payable together with the last instalment on

April 30, 2022

. The loan which bore interest at LIBOR plus a

margin of

2.15

% was prepaid in full on May 20, 2021, and unamortized costs were written off to “(Loss)/gain

on extinguishment of debt” in the 2021 consolidated statement of operations.

ING Bank N.V.:

On November 19, 2015, the Company drew down advance A amounting to $

27,950

 under

a secured loan agreement, which was repayable in

28

 consecutive

quarterly

 instalments of about $

466

each and a balloon instalment of about $

14,907

 payable together with the last instalment on

November 19,

2022

. Advance B amounting to $

11,733

 was drawn on October 6, 2015, and was repayable in

28

consecutive

quarterly

 instalments of about $

293

 each and a balloon instalment of about $

3,520

 payable

together with the last instalment on

October 6, 2022

. The loan which bore interest at LIBOR plus a margin

of

1.65

% was prepaid in full on May 20, 2021, and unamortized costs were written off to “(Loss)/gain on

extinguishment of debt” in the 2021 consolidated statement of operations.

Export-Import Bank of China:

 On January 4, 2017, the Company drew down $

57,240

 under a secured

loan agreement, which is repayable in equal

quarterly

 instalments of $

954

, each, until its maturity on

January 4, 2032

 and bears interest at LIBOR plus a margin of

2.3

%.

DNB Bank ASA.:

 On March 14, 2019, the Company drew down $

19,000

 under a secured loan agreement,

which is repayable in consecutive

quarterly

 instalments of $

477.3

 and a balloon of $

9,454

 payable together

with the last instalment on

March 14, 2024

. The loan bears interest at LIBOR plus a margin of

2.4

%.

As of December 31, 2022 and 2021, the Company was in compliance with all of its loan covenants.

The maturities of the Company’s bond and debt facilities described above as of December 31, 2022, and

throughout their term, are shown in the table below and do not include the related debt issuance costs:

Period

Principal Repayment

Year 1

$

93,830

Year 2

112,645

Year 3

26,615

Year 4

161,207

Year 5

119,605

Year 6 and thereafter

16,218

Total

$

530,120

XML

Finance Liabilities

12 Months Ended

Dec. 31, 2022

Finance Liabilities

Finance Liabilities

7. Finance Liabilities

The amount of finance liabilities shown in the 2022 accompanying consolidated balance sheet is analyzed

as follows:

2022

Finance liabilities

142,370

Less: Deferred financing costs 

(1,439)

Finance liabilities, net of deferred financing costs

$

140,931

Less: Current finance liabilities, net of deferred financing costs, current

(8,802)

Finance liabilities, excluding current maturities

$

132,129

On March 29, 2022, the Company sold

Florida

 to an unrelated third party for $

50,000

 (Note 4) and leased

back the vessel under a bareboat agreement, for a period of

ten years

, under which the Company pays

hire, monthly in advance. Under the bareboat charter, the Company has the option to repurchase the vessel

after the end of the third year of the charter period, or each year thereafter, until the termination of the

lease, at specific prices, subject to irrevocable and written notice to the owner. If not repurchased earlier,

the Company has the obligation to repurchase the vessel for $

16,350

, on the expiration of the lease on the

tenth year. Issuance costs amounted to $

513

.

On August 17, 2022, the Company entered into

two

 sale and leaseback agreements with two unaffiliated

Japanese third parties for

New Orleans

 and

Santa Barbara,

for an aggregate amount of $

66,400

. 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

eight years

, each,

and has purchase options beginning at the end of the third year of each vessel's bareboat charter period,

or each year thereafter, until the termination of the lease, at specific prices, subject to irrevocable and

written notice to the owner. If not repurchased earlier, the Company has the obligation to repurchase the

vessels for $

13,000

, each, on the expiration of each lease on the eighth year. Issuance costs amounted to

$

665

.

On December 6, 2022, the Company sold

DSI Andromeda

 to an unrelated third party for $

29,850

 (Note 4)

and leased back the vessel under a bareboat agreement, for a period of

ten years

, under which the

Company pays hire, monthly in advance. Under the bareboat charter, the Company has the option to

repurchase the vessel after the end of the third year of the charter period, or each year thereafter, until the

termination of the lease, at specific prices, subject to irrevocable and written notice to the owner. If not

repurchased earlier, the Company has the obligation to repurchase the vessel for $

8,050

, on the expiration

of the lease on the tenth year. Issuance costs amounted to $

354

.

Under the bareboat charter parties, the Company is responsible for the operation and maintenance of the

vessels and the owner of the vessels shall not retain any control, possession, or command of the vessel

during the charter period.

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 December 31, 2022,

the weighted average remaining lease term of the above lease agreements was

8.69

 years and the average

interest rate was

4.61

%.

As of December 31, 2022, and throughout the term of the leases, the Company has annual finance liabilities

as shown in the table below:

Period

Principal Repayment

Year 1

$

9,033

Year 2

9,437

Year 3

9,808

Year 4

10,224

Year 5

10,661

Year 6 and thereafter

93,207

Total

$

142,370

XML

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies

Commitments and Contingencies

8. Commitments and Contingencies

a) Various claims, suits, and complaints, including those involving government regulations and product

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 $

1

 billion per vessel per

incident, by the P&I Association in which the Company’s vessels are entered. In 2022, the Company

recorded a gain of $

1,789

 from insurance recoveries received from its insurers for claims covered under

its insurance policies, which is separately presented as insurance recoveries in the accompanying 2022

consolidated statement of operations.

b) In February 2021, DWM, as managers of the vessel

Protefs

, entered into a plea agreement with the

United States pursuant to which DWM, plead guilty for alleged violations of law concerning

maintenance of books and records and the handling of oil wastes of the vessel

Protefs.

On September

23, 2021, in the sentencing hearing of the

Protefs

 case, the judge accepted DWM’s guilty pleas and

among others, imposed to DWM a fine of $

2,000

 which was paid by the Company. An amount of $

1,000

of this fine was recorded as due from DWM (Note 3(c) and as of December 31, 2021, the receivable

was decreased by a provision for credit losses (Note 2(z). In 2022 the provision was reversed as the

full amount was recovered.

c) Pursuant to the sale and lease back agreements signed between the Company and its counterparties,

the Company has purchase obligations to repurchase the vessels

Florida, Santa Barbara, New Orleans

and

 DSI Andromeda

upon expiration of their lease contracts, as described in Note 7.

d) As of December 31, 2022, 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 December

31, 2022 and until their expiration was as follows:

Period

Amount

Year 1

$

163,438

Year 2

22,980

Year 3

9,454

Year 4

9,454

Year 5

725

 Total

$

206,051

XML

Capital Stock and Changes in Capital Accounts

12 Months Ended

Dec. 31, 2022

Capital Stock and Changes in Capital Accounts

Stockholders Equity Note Disclosure [Text Block]

9. Capital Stock and Changes in Capital Accounts

a) Preferred stock

:

 As of December 31, 2022, and, 2021, the Company’s authorized preferred stock

consists of

25,000,000

 shares (all in registered form), par value $

0.01

 per share, of which

1,000,000

 shares

are designated as Series A Participating Preferred Shares,

5,000,000

 shares are designated as Series B

Preferred Shares,

10,675

 shares are designated as Series C Preferred Shares and

400

 are designated as

Series D Preferred Shares. As of December 31, 2022 and 2021, the Company had

zero

 Series A

Participating Preferred Shares issued and outstanding.

b) Series B Preferred Stock:

 As of December 31, 2022, and, 2021, the Company had

2,600,000

Series B Preferred Shares issued and outstanding with par value $

0.01

 per share, at $

25.00

 per share and

with liquidation preference at $

25.00

 per share.

Holders of Series B Preferred Shares have no voting rights

other than the ability, subject to certain exceptions, to elect one director if dividends for six quarterly

dividend periods (whether or not consecutive) are in arrears and certain other limited protective voting

rights.

 Also, holders of Series B Preferred Shares, rank prior to the holders of common shares with respect

to dividends, distributions and payments upon liquidation and are subordinated to all of the existing and

future indebtedness.

Dividends 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 the dividend rate of

8.875

% per annum,

or $

2.21875

 per share per annum. For 2022, 2021 and 2020 dividends on Series B Preferred Shares

amounted to $

5,769

, $

5,769

 and $

5,769

, respectively. Since February 14, 2019, the Company may

redeem, in whole or in part, the Series B Preferred Shares at a redemption price of $

25.00

 per share plus

an 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 December 31, 2022, and, 2021, the Company had

10,675

 shares

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

0.01

 per share, owned by an affiliate

of its Chief Executive Officer, Mrs. Semiramis Paliou.

The Series C Preferred Stock votes with the common

shares of the Company, and each share entitles the holder thereof to 1,000 votes on all matters submitted

to a vote of the shareholders of the Company.

 The Series C Preferred Stock has no dividend or liquidation

rights and cannot be transferred without the consent of the Company except to the holder’s affiliates and

immediate family members.

d) Series D Preferred Stock

: As of December 31, 2022, and, 2021, the Company had

400

 shares of

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

0.01

 per share, owned by an affiliate of

its Chief Executive Officer, Mrs. Semiramis Paliou. The Series D Preferred Stock is not redeemable and

has

no

 dividend or liquidation rights. The Series D Preferred Stock vote with the common shares of the

Company, and each share of the Series D Preferred Stock entitles the holder thereof to up to

100,000

votes, on all matters submitted to a vote of the shareholders of the Company, subject to a maximum number

of votes eligible to be cast by such holder derived from the Series D Preferred Shares and any other voting

security of the Company held by the holder to be equal to the lesser of (i) 36% of the total number of votes

entitled to vote on any matter put to shareholders of the Company and (ii) the sum of the holder’s aggregate

voting power derived from securities other than the Series D Preferred Stock and 15% of the total number

of votes entitled to be cast on matters put to shareholders of the Company. The Series D Preferred Stock

is transferable only to the holder’s immediate family members and to affiliated persons or entities. 

e) Issuance and Repurchase of Common Shares:

In February 2020, the Company repurchased, in

a tender offer

3,030,303

 shares of its common stock at a price of $

3.30

 per share and in March 2020,

repurchased

1,088,034

 shares of common stock under its share repurchase plan authorized in May 2014,

at an average price of $

1.72

 per share. The aggregate cost of the shares repurchased amounted to

$

11,999

, including expenses. In February 2021, the Company repurchased in a tender offer

6,000,000

shares at the price of $

2.50

 per share. In

August 2021, the Company repurchased, in another tender offer,

3,333,333

 shares, at a price of $

4.50

 per share and in December 2021, repurchased

3,529,411

 shares at

a price of $

4.25

 per share. The aggregate cost of the share repurchases was $

45,369

, including expenses.

In 2022, the Company issued under its ATM program

877,581

 shares of common stock, at an average

price of $

6.27

 per share and received net proceeds of $

5,322

. During 2022, the Company repurchased

under its share repurchase program

820,000

 shares of common stock, at an average price of $

4.56

 per

share, for an aggregate cost of $

3,799

, including expenses. In addition, during the fourth quarter, the

Company issued

16,453,780

 common shares to Sea Trade (Note 4), upon exercise by Sea Trade of the

eight out of nine warrants mentioned in (i) below, for the acquisition of eight vessels, at an average price

of $

4.13

.

f) Dividend on Common Stock:

On March 21, 2022, the Company paid a dividend on its common

stock of $

0.20

 per share, to its shareholders of record as of March 9, 2022. On June 17, 2022, the Company

paid a dividend on its common stock of $

0.25

 per share, to its shareholders of record as of June 6, 2022.

On August 19, 2022, the Company paid a dividend on its common stock of $

0.275

 per share, to its

shareholders of record as of August 8, 2022. On December 15, 2022, the Company paid a dividend on its

common stock of $

0.175

 per share, to its shareholders of record as of November 28, 2022. During 2022,

the Company paid total cash dividends on common stock amounting to $

79,812

.

g) Dividend in Kind:

On December 15, 2022, the Company distributed the Company’s investment in

the Series D Preferred Shares of OceanPal in the form of a stock dividend amounting to $

18,189

, or $

0.18

per share, to its shareholders of record as of November 28, 2022 (Notes 3(f) and 4). On November 29,

2021, the Company distributed to its shareholders of record on November 3, 2021, the common stock of

OceanPal, acquired in a spin-off, amounting to $

40,509

 (Note 3(d)).

h) Incentive Plan:

On February 25, 2022, the Company’s Board of Directors approved the award of

1,470,000

 shares of restricted common stock to executive management and non-executive directors,

pursuant to the Company’s Equity Incentive Plan, as annual bonus. The fair value of the restricted shares

based on the closing price on the date of the Board of Directors’ approval was $

6,101

. The cost of these

awards will be recognized in income ratably over the restricted shares vesting period which will be

3

 years.

As of December 31, 2022,

15,194,759

 shares remained reserved for issuance according to the Company’s

incentive plan.

Restricted stock in 2022, 2021 and 2020 is analyzed as follows:

Number of Shares

Weighted Average

Grant Date Price

Outstanding at December 31, 2019

3,833,233

$

3.63

Granted

2,200,000

2.72

Vested

(3,610,221)

3.52

Outstanding at December 31, 2020

2,423,012

$

2.95

Granted

8,260,000

2.85

Vested

(1,168,363)

3.20

Outstanding at December 31, 2021

9,514,649

$

2.83

Granted

1,470,000

4.15

Vested

(3,118,060)

2.86

Outstanding at December 31, 2022

7,866,589

$

3.07

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 being recognized ratably in the consolidated statement of operations over

the respective vesting periods. In 2022, 2021, and 2020, compensation cost amounted to $

9,282

, $

7,442

,

and $

10,511

, respectively, and is included in “General and administrative expenses” presented in the

accompanying consolidated statements of operations.

As of December 31, 2022 and 2021, the total unrecognized cost relating to restricted share awards was

$

16,873

 and $

20,054

, respectively. As of December 31, 2022, the weighted-average period over which the

total compensation cost related to non-vested awards not yet recognized is expected to be recognized is

2.54

 years.

XML

Voyage expenses

12 Months Ended

Dec. 31, 2022

Voyage expenses

Voyage expenses

10. Voyage expenses

The amounts in the accompanying consolidated statements of operations are analyzed as follows:

2022

2021

2020

Commissions

$

14,412

$

10,794

$

8,310

(Gain)/loss from bunkers

(8,100)

(5,955)

3,708

Port expenses and other

630

731

1,507

Total 

$

6,942

$

5,570

$

13,525

XML

Interest and Finance Costs

12 Months Ended

Dec. 31, 2022

Interest and Finance Costs

Interest and Finance Costs

11. Interest and Finance Costs

The amounts in the accompanying consolidated statements of operations are analyzed as follows:

2022

2021

2020

Interest expense, debt

$

21,983

$

18,067

$

20,163

Finance liabilities interest expense

2,735

-

-

Amortization of debt and finance liabilities issuance costs

2,286

1,865

1,066

Loan and other expenses

415

307

285

Interest expense and finance costs

$

27,419

$

20,239

$

21,514

XML

Earnings/(loss) per Share

12 Months Ended

Dec. 31, 2022

Earnings/(loss) per Share

Earnings/(loss) per Share

12. Earnings/(loss) per Share

All common shares issued (including the restricted shares issued under the Company’s incentive plans)

are the Company’s common stock and have equal rights to vote and participate in dividends. The

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

participating securities) as outstanding until the time/service-based vesting restriction has lapsed.

Incremental shares are the number of shares assumed issued under the treasury stock method weighted

for the periods the non-vested shares were outstanding. In 2022 and 2021, there were

3,257,861

 and

3,735,059

 incremental shares, respectively, included in the denominator of the diluted earnings per share

calculation. In 2020, incremental shares were

no

t included in the calculation of the diluted earnings per

share, as the Company incurred losses and the effect of such shares would be anti-dilutive.

Profit or loss attributable to common equity holders is adjusted by the amount of dividends on Series B

Preferred Stock as follows:

2022

2021

2020

Net income/(loss)

$

119,063

$

57,394

$

(134,197)

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Net income/(loss) attributable to common stockholders

$

113,294

$

51,625

$

(139,966)

Weighted average number of common shares, basic

80,061,040

81,121,781

86,143,556

Incremental shares 

3,257,861

3,735,059

-

Weighted average number of common shares, diluted 

83,318,901

84,856,840

86,143,556

Earnings/(loss) per share, basic

$

1.42

$

0.64

$

(1.62)

Earnings/(loss) per share, diluted

$

1.36

$

0.61

$

(1.62)

XML

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes

Income Taxes

13. Income Taxes

Under the laws of the countries of the companies’ incorporation and / or vessels’ registration, the

companies are not subject to tax on international shipping income; however, they are subject to registration

and tonnage taxes, which are included in vessel operating expenses in the accompanying consolidated

statements of operations.

The vessel-owning companies with vessels that have called on the United States are obliged to file tax

returns with the Internal Revenue Service. However, pursuant to the Internal Revenue Code of the United

States, U.S. source income from the international operations of ships is generally exempt from U.S. tax.

The applicable tax is

50

% of

4

% of U.S.-related gross transportation income unless an exemption applies.

The Company and each of its subsidiaries expects it qualifies for this statutory tax exemption for the 2022,

2021 and 2020 taxable years, and the Company takes this position for United States federal income tax

return reporting purposes.

XML

Financial Instruments and Fair Value Disclosures

12 Months Ended

Dec. 31, 2022

Financial Instruments and Fair Value Disclosures

Financial Instruments and Fair Value Disclosures

14. Financial Instruments and Fair Value Disclosures

Interest rate risk and concentration of credit risk

Financial instruments, which potentially subject the Company to significant concentrations of credit risk,

consist principally of cash and trade accounts receivable. 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. 

In 2022, 2021 and 2020, charterers that individually accounted for

10

% or more of the Company’s time

charter revenues were as follows:

Charterer

2022

2021

2020

Cargill International SA

19%

10%

18%

Koch Shipping PTE LTD. Singapore

15%

*

16%

*Less than 10%

The Company is exposed to interest rate fluctuations associated with its variable rate borrowings. Currently,

the company does not have any derivative instruments to manage such fluctuations.

Fair value of assets and liabilities

The carrying values of financial assets reflected in the accompanying consolidated balance sheet,

approximate their respective fair values due to the short-term nature of these financial instruments. The

fair value of long-term bank loans with variable interest rates approximates the recorded values, generally

due to their variable interest rates. 

Fair value measurements disclosed 

As of December 31, 2022, the Bond having a fixed interest rate and a carrying value of $

125,000

 (Note 6)

had a fair value of $

120,525

 determined through the Level 1 input of the fair value hierarchy as defined in

FASB guidance for Fair Value Measurements.

On September 20, 2022, the Company acquired

25,000

 Series D Preferred Shares of OceanPal, par at

$

17,600

, determined through Level 2 inputs of the fair value hierarchy by taking into consideration a third-

party valuation which was based on the income approach, taking into account the present value of the

future cash flows the Company expects to receive from holding the equity instrument. 

On December 15, 2022, the Company distributed the Series D Preferred Shares as non-cash dividend and

measured their fair value on the date of declaration at $

18,189

. Their fair value was determined through

Level 2 inputs of the fair value hierarchy, by using the income approach, taking into account the present

value of the future cash flows, the holder of shares would expect to receive from holding the equity

instrument which resulted in gain of $

589

 (Note 3(f).

Other Fair value measurements

Description (in thousands of US Dollars)

December 31,

2021

Quoted Prices in

Active Markets

(Level 1)

Significant Other

Observable

Inputs (Level 2)

Non-recurring fair value measurements

Investments in related parties (1)

7,575

7,575

December 31,

2022

Quoted Prices in

Active Markets

(Level 1)

Significant Other

Observable

Inputs (Level 2)

Non-recurring fair value measurements

Long-lived assets held for use (2)

67,909

67,909

Total non-recurring fair value measurements

67,909

67,909

-

On November 29, 2021, Series B preferred shares and Series C preferred shares were recorded

at $

5

 and $

7,570

, respectively, being the fair value of the shares on the date of issuance to the

Company by OceanPal (Note 3(f)).

(2) During the fourth quarter of 2022, the Company took delivery of

eight

 vessels under its master

agreement with Sea Trade, acquired for the purchase price of $

263,719

, of which $

195,810

 was

paid in cash and $

67,909

 was paid through newly issued common stock (Note 4). The fair value of

the common shares issued to Sea Trade was determined based on the closing price of the

Company’s shares on the date of delivery of each vessel, which was also the date of issuance of

such shares.

XML

Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events

Subsequent Events

15. Subsequent Events

a) Series B Preferred Stock Dividends:

On January 17, 2023, the Company paid a quarterly

dividend on its series B preferred stock, amounting to $

0.5546875

 per share, or $

1,442

, to its

stockholders of record as of January 13, 2023.

b) Sale of vessels and loan prepayments:

 On January 23, 2023, the Company, through a wholly

owned subsidiary, entered into an agreement with an unrelated third party to sell the vessel Aliki

for the sale price of $

15,080

. The vessel was delivered to her new owners on February 8, 2023.

Additionally, on February 1, 2023, the Company, through a wholly-owned subsidiary, entered into

an agreement with OceanPal, a related party company, to sell the vessel Melia for the sale price of

$

14,000

, of which $

4,000

 in cash and $

10,000

 through

13,157

 of OceanPal Series D Preferred

Shares. The vessel was delivered to her new owners on February 8, 2023. The sale of the vessels

resulted in gain. On February 2, 2023, the Company prepaid $

8,134

 under one of its loan

agreements with Nordea, being the part of the loan secured by

Melia

 and

Aliki

, and the repayment

schedule was adjusted accordingly.

c) Delivery of Ultramax vessel:

 On January 30, 2023, the Company took delivery of the ninth

Ultramax dry bulk vessel, under the Company’s agreement with Sea Trade and issued

2,033,613

common shares to Sea Trade, at $

0.01

 par value per share (Note 4), having a fair value of $

7,809

,

based on the closing price of the Company’s stock on the date of delivery, determined through

Level 1 account hierarchy. 

d) Acquisition of Ultramax vessel:

 On February 14, 2023, the Company signed a Memorandum of

Agreement to acquire from an unaffiliated third party the m/v Nord Potomac, a 2016 built Ultramax

dry bulk vessel, for a purchase price of $

27,900

, of which the Company paid a

10

% advance of the

purchase price. The Company anticipates taking delivery of the vessel by the beginning of April

2023.

e)

Restricted share awards:

 On February 22, 2023, the Company’s Board of Directors approved the

award of

1,750,000

. shares of restricted common stock to executive management and non-

executive directors, pursuant to the Company’s amended plan, as annual bonus. The fair value of

the restricted shares based on the closing price on the date of the Board of Directors’ approval was

$

7,945

. The cost of these awards will be recognized ratably over the restricted shares vesting period

which will be

3

 years.

f) Loan prepayment:

 On March 14, 2023, the Company prepaid $

11,841

 being the outstanding

balance of its loan with DNB Bank (Note 6).

g) Dividend on Common Stock and Dividend in Kind:

 On March 20, 2023, the Company paid a

quarterly dividend on its common stock of $

0.15

 per share, or $

15,965

, to shareholders of record

as of March 13, 2023 based on the Company’s results of operations during the fourth quarter ended

December 31, 2022. The Company will also distribute on May 16, 2023, to its shareholders of record

on April 24, 2023, the

13,157

 Series D Preferred Shares of OceanPal Inc. acquired as part of the

non-cash consideration of the sale of

Melia

 described in (b) above.

XML

Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2022

Significant Accounting Policies

Principles of Consolidation

a) Principles of Consolidation

: The accompanying consolidated financial statements have been

prepared in accordance with U.S. generally accepted accounting principles and include the accounts of

Diana Shipping Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have

been eliminated upon consolidation. Under Accounting Standards Codification (“ASC”) 810

“Consolidation”, the Company consolidates entities in which it has a controlling financial interest, by first

considering if an entity meets the definition of a variable interest entity ("VIE") for which the Company is

deemed to be the primary beneficiary under the VIE model, or if the Company controls an entity through a

majority of voting interest based on the voting interest model. The Company evaluates financial

instruments, service contracts, and other arrangements to determine if any variable interests relating to an

entity exist. For entities in which the Company has a variable interest, the Company determines if the entity

is a VIE by considering whether the entity’s equity investment at risk is sufficient to finance its activities

without additional subordinated financial support and whether the entity’s at-risk equity holders have the

characteristics of a controlling financial interest. In performing the analysis of whether the Company is the

primary beneficiary of a VIE, the Company considers whether it individually has the power to direct the

activities of the VIE that most significantly affect the entity’s performance and also has the obligation to

absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The

Company had identified it had variable interests in DWM, as it was considered that all of its activities either

involved or were conducted on behalf of the Company and its related parties but was not the primary

beneficiary. The Company has reconsidered this initial determination and determined that since DWM

meets the definition of a business and the Company does not have any obligations to absorb losses of the

joint venture, DWM is not a VIE. If the Company holds a variable interest in an entity that previously was

not a VIE, it reconsiders whether the entity has become a VIE.

Use of Estimates

b) Use of Estimates:

The preparation of consolidated financial statements in conformity with U.S.

generally accepted accounting principles requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at

the date of the consolidated financial statements and the reported amounts of revenues and expenses

during the reporting period. Actual results could differ from those estimates.

Other Comprehensive Income / (Loss)

c) Other Comprehensive Income / (Loss):

The Company separately presents certain transactions,

which are recorded directly as components of stockholders’ equity. Other Comprehensive Income / (Loss)

is presented in a separate statement.

Foreign Currency Translation

d) Foreign Currency Translation:

The functional currency of the Company is the U.S. dollar because

the Company’s vessels operate in international shipping markets, and therefore primarily transact business

in U.S. dollars. The Company’s accounting records are maintained in U.S. dollars. Transactions involving

other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the

time of the transactions. At the balance sheet dates, monetary assets and liabilities which are denominated

in other currencies are translated into U.S. dollars at the year-end exchange rates. Resulting gains or

losses are included in other operating (income)/loss in the accompanying consolidated statements of

operations.

Cash, Cash Equivalents and Time Deposits

e) Cash, Cash Equivalents and Time Deposits:

The Company considers highly liquid investments

such as time deposits, certificates of deposit and their equivalents with an original maturity of up to about

three months to be cash equivalents. Time deposits with maturity above three months are removed from

cash and cash equivalents and are separately presented as time deposits. Restricted cash consists mainly

of cash deposits required to be maintained at all times under the Company’s loan facilities (Note 6).

Accounts Receivable, Trade

f) Accounts Receivable, Trade:

The amount shown as accounts receivable, trade, at each balance

sheet date, includes receivables from charterers for hire from lease agreements, net of provisions for

doubtful accounts, if any. At each balance sheet date, all potentially uncollectible accounts are assessed

individually for purposes of determining the appropriate provision for doubtful accounts. As of December

31, 2022 and 2021 there was

no

 provision for doubtful accounts. The Company does not recognize interest

income on trade receivables as all balances are settled within a year.

Inventories

g) Inventories:

Inventories consist of lubricants and victualling which are stated, on a consistent

basis, at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the

ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

When evidence exists that the net realizable value of inventory is lower than its cost, the difference is

recognized as a loss in earnings in the period in which it occurs. Cost is determined by the first in, first out

method. Amounts removed from inventory are also determined by the first in first out method. Inventories

may also consist of bunkers, when on the balance sheet date, a vessel is without employment. Bunkers, if

any, are also stated at the lower of cost or net realizable value and cost is determined by the first in, first

out method.

Vessel Cost

h) Vessel Cost

: Vessels are stated at cost which consists of the contract price and any material

expenses incurred upon acquisition or during construction. Expenditures for conversions and major

improvements are also capitalized when they appreciably extend the life, increase the earning capacity or

improve the efficiency or safety of the vessels; otherwise, these amounts are charged to expense as

incurred. Interest cost incurred during the assets' construction periods that theoretically could have been

avoided if expenditure for the assets had not been made is also capitalized. The capitalization rate, applied

on accumulated expenditures for the vessel, is based on interest rates applicable to outstanding borrowings

of the period.

Vessels held for sale

i) Vessels held for sale:

 The Company classifies assets as being held for sale when the respective

criteria are met. Long-lived assets or disposal groups classified as held for sale are measured at the lower

of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet

the criteria to be held for sale. The fair value less cost to sell of an asset held for sale is assessed at each

reporting period it remains classified as held for sale. When the plan to sell an asset changes, the asset is

reclassified as held and used, measured at the lower of its carrying amount before it was recorded as held

for sale, adjusted for depreciation, and the asset’s fair value at the date of the decision not to sell.

Sale and leaseback

j) Sale and leaseback:

 In accordance with ASC 842-40 in a sale-leaseback transaction where the

sale of an asset and leaseback of the same asset by the seller is involved, the Company, as seller-lessee,

should firstly determine whether the transfer of an asset shall be accounted for as a sale under ASC 606.

For a sale to have occurred, the control of the asset would need to be transferred to the buyer and the

buyer would need to obtain substantially all the benefits from the use of the asset. As per the

aforementioned guidance, sale and leaseback transactions, which include an obligation for the Company,

as seller-lessee, to repurchase the asset, or other situations where the leaseback would be classified as a

finance lease, are determined to be failed sales under ASC 842-40. Consequently, the Company does not

derecognize the asset from its balance sheet and accounts for any amounts received under the sale and

leaseback agreement as a financing arrangement.

Property and equipment

k) Property and equipment:

 The Company owns the land and building where its offices are located.

The Company also owns part of a plot acquired for office use (Note 5). Land is stated at cost and it is not

subject to depreciation. The building has an estimated useful life of

55 years

 with

no

 residual value.

Furniture, office equipment and vehicles have a useful life of

5 years

, except for a car owned by the

Company, which has a useful life of

10 years

. Computer software and hardware have a useful life of

three

years

. Depreciation is calculated on a straight-line basis.

Impairment of Long-Lived Assets

l) Impairment of Long-Lived Assets:

Long-lived assets are reviewed for impairment whenever

events or changes in circumstances (such as market conditions, obsolesce or damage to the asset,

potential sales and other business plans) indicate that the carrying amount of an asset may not be

recoverable. When the estimate of undiscounted projected net operating cash flows, excluding interest

charges, expected to be generated by the use of an asset over its remaining useful life and its eventual

disposition is less than its carrying amount, the Company evaluates the asset for impairment loss.

Measurement of the impairment loss is based on the fair value of the asset, determined mainly by third

party valuations. 

For vessels, the Company calculates undiscounted projected net operating cash flows by considering the

historical and estimated vessels’ performance and utilization with the significant assumption being future

charter rates for the unfixed days, using the most recent

10

-year average of historical 1 year time charter

rates available for each type of vessel over the remaining estimated life of each vessel, net of commissions.

Historical ten-year blended average one-year time charter rates are in line with the Company’s overall

chartering strategy, they reflect the full operating history of vessels of the same type and particulars with

the Company’s operating fleet and they cover at least a full business cycle, where applicable. When the

10-year average of historical 1 year time charter rates is not available for a type of vessels, the Company

uses the average of historical 1 year time charter rates of the available period. Other assumptions used in

developing estimates of future undiscounted cash flow are charter rates calculated for the fixed days using

the fixed charter rate of each vessel from existing time charters, the expected outflows for scheduled

vessels’ maintenance; vessel operating expenses; fleet utilization, and the vessels’ residual value if sold

for scrap. Assumptions are in line with the Company’s historical performance and its expectations for future

fleet utilization under its current fleet deployment strategy. This calculation is then compared with the

vessels’ net book value plus unamortized deferred costs. The difference between the carrying amount of

the vessel plus unamortized deferred costs and their fair value is recognized in the Company's accounts

as impairment loss.

The Company’s impairment assessment resulted in the

recognition of impairment

 on certain vessels’

carrying value in 2020 amounting to $

104,395

.

No

 impairment loss was identified or recorded in 2021 and

2022.

For property and equipment, the Company determines undiscounted projected net operating cash flows

by considering an estimated monthly rent the Company would have to pay in order to lease a similar

property, during the useful life of the building.

No

 impairment loss was identified or recorded for 2022, 2021

and 2020 and the Company has not identified any other facts or circumstances that would require the write

down of the value of its land or building in the near future.

Vessel Depreciation

m) Vessel Depreciation:

Depreciation is computed using the straight-line method over the estimated

useful life of the vessels, after considering the estimated salvage (scrap) value. Each vessel’s salvage

value is equal to the product of its lightweight tonnage and estimated scrap rate. Management estimates

the useful life of the Company’s vessels to be

25 years

 from the date of initial delivery from the shipyard.

Second-hand vessels are depreciated from the date of their acquisition through their remaining estimated

useful life. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its

remaining useful life is adjusted at the date such regulations are adopted.

Deferred Costs

n) Deferred Costs

: The Company follows the deferral method of accounting for dry-docking and

special survey costs whereby actual costs incurred are deferred and amortized on a straight-line basis over

the period through the date the next survey is scheduled to become due. Unamortized deferred costs of

vessels that are sold or impaired are written off and included in the calculation of the resulting gain or loss

in the year of the vessel’s sale (Note 4) or impairment.

Financing Costs

o) Financing Costs

: Fees paid for obtaining finance liabilities, fees paid to lenders for obtaining new

loans, new bonds, or refinancing existing ones accounted as loan modification, are deferred and recorded

as a contra to debt. Other fees paid for obtaining loan facilities not used at the balance sheet date are

deferred. Fees relating to drawn loan facilities are amortized to interest and finance costs over the life of

the related debt using the effective interest method and fees incurred for loan facilities not used at the

balance sheet date are amortized using the straight-line method according to their availability terms.

Unamortized fees relating to loans or bonds repaid or repurchased or refinanced as debt extinguishment

are written off in the period the repayment, prepayment, repurchase or extinguishment is made and

included in the determination of gain/loss on debt extinguishment. Loan commitment fees are expensed in

the period incurred, unless they relate to loans obtained to finance vessels under construction, in which

case, they are capitalized to the vessels’ cost.

Concentration of Credit Risk

p) Concentration of Credit Risk

: Financial instruments, which potentially subject the Company to

significant concentrations of credit risk, consist principally of cash and trade accounts receivable. The

Company places its temporary cash investments, consisting mostly of deposits, with various qualified

financial institutions and performs periodic evaluations of the relative credit standing of those financial

institutions that are considered in the Company’s investment strategy. The Company limits its credit risk

with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and

generally does not require collateral for its accounts receivable and does not have any agreements to

mitigate credit risk.

Accounting for Revenues and Expenses

q) Accounting for Revenues and Expenses:

Revenues are generated from time charter

agreements which contain a lease as they meet the criteria of a lease under ASC 842. Agreements with

the same charterer are accounted for as separate agreements according to their specific terms and

conditions. All agreements contain a minimum non-cancellable period and an extension period at the option

of the charterer. Each lease term is assessed at the inception of that lease. Under a time charter agreement,

the charterer pays a daily hire for the use of the vessel and reimburses the owner for hold cleanings, extra

insurance premiums for navigating in restricted areas and damages caused by the charterers. Revenues

from time charter agreements providing for varying annual rates are accounted for as operating leases and

thus recognized on a straight-line basis over the non-cancellable rental periods of such agreements, as

service is performed. The charterer pays to third parties port, canal and bunkers consumed during the term

of the time charter agreement, unless they are for the account of the owner, in which case, they are included

in voyage expenses. Voyage expenses also include commissions on time charter revenue (paid to the

charterers, the brokers and the managers) and gain or loss from bunkers resulting 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 (Note 10). Under a time charter agreement,

the owner pays for the operation and the maintenance of the vessel, including crew, insurance, spares and

repairs, which are recognized in operating expenses. The Company, as lessor, has elected not to allocate

the consideration in the agreement to the separate lease and non-lease components (operation and

maintenance of the vessel) as their timing and pattern of transfer to the charterer, as the lessee, are the

same and the lease component, if accounted for separately, would be classified as an operating lease.

Additionally, the lease component is considered the predominant component, as the Company has

assessed that more value is ascribed to the vessel rather than to the services provided under the time

charter contracts. In time charter agreements apart from the agreed hire rate, the Company may be entitled

to an additional income, such as ballast bonus. Ballast bonus is paid by charterers for repositioning the

vessel. The Company analyzes terms of each contract to assess whether income from ballast bonus is

accounted together with the lease component over the duration of the charter or as service component

under ASC 606. Deferred revenue includes cash received prior to the balance sheet date for which all

criteria to recognize as revenue have not been met.

Repairs and Maintenance

r) Repairs and Maintenance:

 All repair and maintenance expenses including underwater inspection

expenses are expensed in the year incurred. Such costs are included in vessel operating expenses in the

accompanying consolidated statements of operations.

Earnings / (loss) per Common Share

s) Earnings / (loss) per Common Share:

 Basic earnings / (loss) per common share are computed

by dividing net income / (loss) available to common stockholders by the weighted average number of

common shares outstanding during the year. Shares issuable at little or no cash consideration upon

satisfaction of certain conditions, are considered outstanding and included in the computation of basic

earnings/(loss) per share as of the date that all necessary conditions have been satisfied. Diluted earnings

per common share, reflects the potential dilution that could occur if securities or other contracts to issue

common stock were exercised.

Segmental Reporting

t) Segmental Reporting:

The Company engages in the operation of dry-bulk vessels which has been

identified as one reportable segment. The operation of the vessels is the main source of revenue

generation, the services provided by the vessels are similar and they all operate under the same economic

environment. Additionally, the vessels do not operate in specific geographic areas, as they trade worldwide;

they do not trade in specific trade routes, as their trading (route and cargo) is dictated by the charterers;

and the Company does not evaluate the operating results for each type of dry bulk vessels (i.e. Panamax,

Capesize etc.) for the purpose of making decisions about allocating resources and assessing performance.

Fair Value Measurements

u) Fair Value Measurements

: The Company classifies and discloses its assets and liabilities carried

at fair value in one of the following categories: Level 1: Quoted market prices in active markets for identical

assets or liabilities; Level 2: Observable market-based inputs or unobservable inputs that are corroborated

by market data; Level 3: Unobservable inputs that are not corroborated by market data.

Share Based Payments

v) Share Based Payments:

 The Company issues restricted share awards which are measured at

their grant date fair value and are not subsequently re-measured. That cost is recognized over the period

during which an employee is required to provide service in exchange for the award—the requisite service

period (usually the vesting period). No compensation cost is recognized for equity instruments for which

employees do not render the requisite service unless the board of directors determines otherwise.

Forfeitures of awards are accounted for when and if they occur. If an equity award is modified after the

grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair

value of the modified award over the fair value of the original award immediately before the modification.

Equity method investments

w) Equity method investments:

 Investments in common stock in entities over which the Company

exercises significant influence but does not exercise control are accounted for by the equity method of

accounting. Under this method, the Company records such an investment at cost and adjusts the carrying

amount for its share of the earnings or losses of the entity subsequent to the date of investment and reports

the recognized earnings or losses in income. Dividends received, if any, reduce the carrying amount of the

investment. When the carrying value of an equity method investment is reduced to zero because of losses,

the Company does not provide for additional losses unless it is committed to provide further financial

support to the investee. As of December 31, 2021, the Company’s investment in DWM is classified as a

liability because the Company absorbed such losses (Note 3(c)). The Company also evaluates whether a

loss in value of an investment that is other than a temporary decline should be recognized. Evidence of a

loss in value might include absence of an ability to recover the carrying amount of the investment or inability

of the investee to sustain an earnings capacity that would justify the carrying amount of the investment.

Going concern

x) Going concern:

Management evaluates, at each reporting period, whether there are conditions or

events that raise substantial doubt about the Company's ability to continue as a going concern within one

year from the date the financial statements are issued.

Shares repurchased and retired

y) Shares repurchased and retired:

The Company’s shares repurchased for retirement, are

immediately cancelled and the Company’s share capital is accordingly reduced. Any excess of the cost of

the shares over their par value is allocated in additional paid-in capital, in accordance with ASC 505-30-

30, Treasury Stock.

Financial Instruments, credit losses

z) Financial Instruments, credit losses

: At each reporting date, the Company evaluates its financial

assets individually for credit losses and presents such assets in the net amount expected to be collected

on such financial asset. When financial assets present similar risk characteristics, these are evaluated on

a collective basis. When developing an estimate of expected credit losses, the Company considers

available information relevant to assessing the collectability of cash flows such as internal information, past

events, current conditions and reasonable and supportable forecasts. As of December 31, 2021, the

Company assessed the financial condition of DWM, changed its estimate on the recoverability of its

receivable due from DWM relating to the fine paid by the Company on behalf of DWM (Notes 3(c) and 8(b))

and determined that part of the amount may not be recoverable. As a result, the Company recorded as of

December 31, 2021, an allowance for credit losses amounting to $

300

, based on probability of default as

there was no previous loss record. The allowance for credit losses was included in “Other operating

(income)/loss” in the 2021 accompanying consolidated statements of operations. The allowance was

reversed in 2022 as the full amount was recovered and its reversal is included in “Other operating

(income)/loss” in the 2022 accompanying consolidated statements of operations.

No

 credit losses were

identified and recorded in 2020 and 2022.

Financial Instruments, Recognition and Measurement

aa) Financial Instruments, Recognition and Measurement:

According to ASC 321-10-35-2, the

Company has elected to measure equity securities without a readily determinable fair value, that do not

qualify for the practical expedient in ASC 820

Fair Value Measurement

to estimate fair value using the NAV

per share (or its equivalent), at its cost minus impairment, if any. If the Company identifies observable price

changes in orderly transactions for the identical or a similar investment of the same issuer, it shall measure

equity securities at fair value as of the date that the observable transaction occurred. The Company shall

continue to apply this measurement until the investment does not qualify to be measured in accordance

with this paragraph. At each reporting period, the Company reassesses whether an equity investment

without a readily determinable fair value qualifies to be measured in accordance with this paragraph. The

Company may subsequently elect to measure equity securities at fair value and the election to measure

securities at fair value shall be irrevocable. Any resulting gains or losses on the securities for which that

election is made shall be recorded in earnings at the time of the election. At each reporting period, the

Company also evaluates indicators such as the investee’s performance and its ability to continue as going

concern and market conditions, to determine whether an investment is impaired in which case, the

Company will estimate the fair value of the investment to determine the amount of the impairment loss.

Non-monetary transactions

ab) Non-monetary transactions and spinoffs:

Non-monetary transactions are recorded based on the

fair values of the assets (or services) involved unless the fair value of neither the asset received, nor the

asset relinquished is determinable within reasonable limits. Also, under ASC 845-10-30-10 Nonmonetary

Transactions, Overall, Initial Measurement, Nonreciprocal Transfers with Owners and ASC 505-60 Spinoffs

and Reverse Spinoffs, if the pro-rata spinoff of a consolidated subsidiary or equity method investee does

not meet the definition of a business under ASC 805, the nonreciprocal transfer of nonmonetary assets is

accounted for at fair value, if the fair value of the nonmonetary asset distributed is objectively measurable

and would be clearly realizable to the distributing entity in an outright sale at or near the time of the

distribution, and the spinor recognizes a gain or loss for the difference between the fair value and book

value of the spinee. A transaction is considered pro rata if each owner receives an ownership interest in

the transferee in proportion to its existing ownership interest in the transferor (even if the transferor retains

an ownership interest in the transferee). In accordance with ASC 805 Business Combinations: Clarifying

the Definition of a Business, if substantially all of the fair value of the gross assets distributed in a spinoff

are concentrated in a single identifiable asset or group of similar identifiable assets, then the spinoff of a

consolidated subsidiary does not meet the definition of a business (Note 3(f)). Other nonreciprocal transfers

of nonmonetary assets to owners are accounted for at fair value if the fair value of the nonmonetary asset

distributed is objectively measurable and would be clearly realizable to the distributing entity in an outright

sale at or near the time of the distribution.

Contracts in entity's equity

ac) Contracts in entity’s equity:

 Under ASC 815-40 contracts that require settlement in shares are

considered equity instruments, unless an event that is not in the entity’s control would require net cash

settlement. Additionally, the entity should have sufficient authorized and unissued shares, the contract

contains an explicit share limit, there is no requirement to net cash settle the contract in the event the entity

fails to make timely filings with the Securities and Exchange Commission (SEC) and there are no cash

settled top-off or make-whole provisions. The Company follows the provision of ASC 480 “Distinguishing

Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine whether the warrants issued

should be classified as permanent equity, temporary equity or liability. The Company has determined that

warrants are free standing instruments and are out of scope of ASC 480 and meet all criteria for equity

classification.

New Accounting Pronouncements - Not Yet Adopted

New Accounting Pronouncements - Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the

Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and

exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by

reference rate reform. ASU 2020-04 applies to contracts that reference LIBOR or another reference rate

expected to be terminated because of reference rate reform. The amendments in this Update are effective

for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the

amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of

an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an

interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements

are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this Update

must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. An

entity may elect to apply the amendments in this Update to eligible hedging relationships existing as of the

beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships

entered into after the beginning of the interim period that includes March 12, 2020. An entity may elect

certain optional expedients for hedging relationships that exist as of December 31, 2022 and maintain

those optional expedients through the end of the hedging relationship. In December 2022, the FASB issued

ASU No. 2022-06, Deferral of the Sunset Date of Reference Rate Reform (Topic 848). Topic 848 provides

optional expedients and exceptions for applying GAAP to transactions affected by reference rate (e.g.,

LIBOR) reform if certain criteria are met, for a limited period of time to ease the potential burden in

accounting for (or recognizing the effects of) reference rate reform on financial reporting. The ASU deferred

the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company is exposed

to LIBOR and LIBOR changes under its loan agreements with several banks. As of December 31, 2022,

the Company used LIBOR and will continue to use LIBOR until it is discontinued or replaced by another

rate to be agreed with the related banks. During 2022, the Company entered into a new loan agreement

and elected to use term SOFR as a replacement for LIBOR and it is probable that it will use the same rate

when the agreements under LIBOR are modified. The Company does not expect that the change of LIBOR

to term SOFR will have a significant impact in its results of operations and cash flows.

XML

Advances for vessel acquisitions and Vessels, net (Tables)

12 Months Ended

Dec. 31, 2022

Advances for vessel acquisitions and Vessels, net

Schedule of Vessels, net in the accompanying consolidated balance sheets

Vessel Cost

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2020

$

872,431

$

(156,253)

$

716,178

- Additions for improvements

1,106

-

1,106

- Additions for improvements reclassified from other non-

current assets

441

-

441

- Vessel disposals

(16,120)

7,110

(9,010)

- Vessels contributed to OceanPal

(47,429)

17,127

(30,302)

- Depreciation for the year

-

(34,963)

(34,963)

Balance, December 31, 2021

$

810,429

$

(166,979)

$

643,450

- Additions for vessel acquisitions and improvements

358,504

-

358,504

- Additions for improvements reclassified from other non-

current assets

1,370

-

1,370

- Vessel disposals

(29,175)

12,453

(16,722)

- Depreciation for the year

-

(36,986)

(36,986)

Balance, December 31, 2022

$

1,141,128

$

(191,512)

$

949,616

XML

Property and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2022

Property and Equipment, net

Schedule of property and equipment

Property and

Equipment

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2020

$

27,198

$

(5,494)

$

21,704

- Additions in property and equipment

1,600

-

1,600

- Depreciation for the year

-

(462)

(462)

- Disposal of assets

(529)

529

-

Balance, December 31, 2021

$

28,269

$

(5,427)

$

22,842

- Additions in property and equipment

667

-

667

- Depreciation for the year

-

(546)

(546)

Balance, December 31, 2022

$

28,936

$

(5,973)

$

22,963

XML

Long-term debt (Tables)

12 Months Ended

Dec. 31, 2022

Long-term debt

Schedule of Long-term Debt Instruments

2022

2021

Senior unsecured bond

125,000

125,000

Secured long-term debt

405,120

306,843

Total long-term debt

$

530,120

$

431,843

Less: Deferred financing costs 

(7,609)

(8,168)

Long-term debt, net of deferred financing costs

$

522,511

$

423,675

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

current

(91,495)

(41,148)

Long-term debt, excluding current maturities

$

431,016

$

382,527

Schedule of Maturities of Long-term Debt

Period

Principal Repayment

Year 1

$

93,830

Year 2

112,645

Year 3

26,615

Year 4

161,207

Year 5

119,605

Year 6 and thereafter

16,218

Total

$

530,120

XML

Finance Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Finance Liabilities

Analysis of Finance Liabilities on Balance Sheets

2022

Finance liabilities

142,370

Less: Deferred financing costs 

(1,439)

Finance liabilities, net of deferred financing costs

$

140,931

Less: Current finance liabilities, net of deferred financing costs, current

(8,802)

Finance liabilities, excluding current maturities

$

132,129

Annual Lease Liabilities

Period

Principal Repayment

Year 1

$

9,033

Year 2

9,437

Year 3

9,808

Year 4

10,224

Year 5

10,661

Year 6 and thereafter

93,207

Total

$

142,370

XML

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies

Schedule of fixed non cancelable time charter contracts

Period

Amount

Year 1

$

163,438

Year 2

22,980

Year 3

9,454

Year 4

9,454

Year 5

725

 Total

$

206,051

XML

Capital Stock and Changes in Capital Accounts (Tables)

12 Months Ended

Dec. 31, 2022

Capital Stock and Changes in Capital Accounts

Schedule of share-based compensation restricted stock and restricted stock units activity

Number of Shares

Weighted Average

Grant Date Price

Outstanding at December 31, 2019

3,833,233

$

3.63

Granted

2,200,000

2.72

Vested

(3,610,221)

3.52

Outstanding at December 31, 2020

2,423,012

$

2.95

Granted

8,260,000

2.85

Vested

(1,168,363)

3.20

Outstanding at December 31, 2021

9,514,649

$

2.83

Granted

1,470,000

4.15

Vested

(3,118,060)

2.86

Outstanding at December 31, 2022

7,866,589

$

3.07

XML

Voyage expenses (Tables)

12 Months Ended

Dec. 31, 2022

Voyage expenses

Schedule of voyage expenses analysis

2022

2021

2020

Commissions

$

14,412

$

10,794

$

8,310

(Gain)/loss from bunkers

(8,100)

(5,955)

3,708

Port expenses and other

630

731

1,507

Total 

$

6,942

$

5,570

$

13,525

XML

Interest and Finance Costs (Tables)

12 Months Ended

Dec. 31, 2022

Interest and Finance Costs

Schedule Of Interest And Finance Costs

2022

2021

2020

Interest expense, debt

$

21,983

$

18,067

$

20,163

Finance liabilities interest expense

2,735

-

-

Amortization of debt and finance liabilities issuance costs

2,286

1,865

1,066

Loan and other expenses

415

307

285

Interest expense and finance costs

$

27,419

$

20,239

$

21,514

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Earnings (loss) per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings/(loss) per Share

Schedule of Earnings Per Share, Basic and Diluted

2022

2021

2020

Net income/(loss)

$

119,063

$

57,394

$

(134,197)

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Net income/(loss) attributable to common stockholders

$

113,294

$

51,625

$

(139,966)

Weighted average number of common shares, basic

80,061,040

81,121,781

86,143,556

Incremental shares 

3,257,861

3,735,059

-

Weighted average number of common shares, diluted 

83,318,901

84,856,840

86,143,556

Earnings/(loss) per share, basic

$

1.42

$

0.64

$

(1.62)

Earnings/(loss) per share, diluted

$

1.36

$

0.61

$

(1.62)

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Financial Instruments and Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2022

Financial Instruments and Fair Value Disclosures

Schedule of company's charter revenues

Charterer

2022

2021

2020

Cargill International SA

19%

10%

18%

Koch Shipping PTE LTD. Singapore

15%

*

16%

*Less than 10%

Schedule of other fair value measurements

Description (in thousands of US Dollars)

December 31,

2021

Quoted Prices in

Active Markets

(Level 1)

Significant Other

Observable

Inputs (Level 2)

Non-recurring fair value measurements

Investments in related parties (1)

7,575

7,575

December 31,

2022

Quoted Prices in

Active Markets

(Level 1)

Significant Other

Observable

Inputs (Level 2)

Non-recurring fair value measurements

Long-lived assets held for use (2)

67,909

67,909

Total non-recurring fair value measurements

67,909

67,909

-

On November 29, 2021, Series B preferred shares and Series C preferred shares were recorded

at $

5

 and $

7,570

, respectively, being the fair value of the shares on the date of issuance to the

Company by OceanPal (Note 3(f)).

(2) During the fourth quarter of 2022, the Company took delivery of

eight

 vessels under its master

agreement with Sea Trade, acquired for the purchase price of $

263,719

, of which $

195,810

 was

paid in cash and $

67,909

 was paid through newly issued common stock (Note 4). The fair value of

the common shares issued to Sea Trade was determined based on the closing price of the

Company’s shares on the date of delivery of each vessel, which was also the date of issuance of

such shares.

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Basis of Presentation and General Information (Narrative) (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Entity Information [Line Items]
Date of incorporation	Mar. 08, 1999
Diana Wilhelmsen Management Limited [Member]
Entity Information [Line Items]
Equity method investment, ownership percentage	50.00%	50.00%	50.00%

XML

Significant Accounting Policies (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies Disclosure [Line Items]
Accounts receivable, provision for doubtful accounts	$ 0	$ 0
Impairment	$ 0	0	$ 104,395
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration	Asset Impairment Charges
Restricted cash, non-current	$ 21,000,000	16,500,000	20,000,000
Vessels' net book value	949,616,000	643,450,000	716,178,000
Direct Operating Costs	$ 6,942,000	5,570,000	13,525,000
Time period for measurement of time charter rate, input for calculation of vessel impairments	10 years
Provision for Doubtful Accounts	$ 133,000	300,000
Diana Wilhelmsen Management Limited [Member]
Accounting Policies Disclosure [Line Items]
Provision for Doubtful Accounts	$ 0	300,000	0
Building [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	55 years
Property and equipment, residual value	$ 0
Impairment	$ 0	$ 0	$ 0
Furniture [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	P5Y
Office Equipment [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	P5Y
Vehicles [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	P5Y
Car [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	P10Y
Computer Software and Hardware [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	P3Y
Vessels [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	25 years

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Transactions with Related Parties (Altair and Steamship) (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Due to related parties, current	$ 136,000	$ 596,000
Altair Travel Agency S.A. [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	2,644,000	2,210,000	$ 1,854,000
Due to related parties, current	136,000	138,000
Steamship Shipbroking Enterprises [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	3,309,000	3,309,000	2,653,000
Due to related parties, current	0	0
Commissions charged by a related party (Note 4(d))	$ 1,219,000	$ 712,000	$ 576,000

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Transactions with Related Parties (DWM) (Narrative) (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) Vessels	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Related Party Transaction [Line Items]
Payments to acquire interest joint venture		$ 375,000	$ 500,000
Equity method investments	$ 506,000	0
Due to related parties, current	136,000	596,000
Gain/(loss) from equity method investments	894,000	(333,000)	(1,110,000)
Management fees to related party	511,000	1,432,000	$ 2,017,000
Due from related parties	216,000	952,000
Provision for credit loss	$ 133,000	$ 300,000
Diana Wilhelmsen Management Limited [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	50.00%	50.00%	50.00%
Equity method investments	$ 506,000
Diana Wilhelmsen Management Limited [Member]
Related Party Transaction [Line Items]
Due to related parties, current		$ 388,000
Gain/(loss) from equity method investments	894,000	(333,000)	$ (1,110,000)
Provision for credit loss	0	300,000	0
Diana Wilhelmsen Management Limited [Member] | Management Agreements [Member]
Related Party Transaction [Line Items]
Management fees to related party	$ 511,000	1,432,000	2,017,000
Number of vessels under new management agreements | Vessels	4
Commissions charged by a related party (Note 4(d))	$ 162,000	200,000	353,000
Due from related parties	216,000	952,000
Provision for credit loss		300,000
Diana Wilhelmsen Management Limited [Member] | Advances For Vessel Acquisitions And Vessels, Net [Member] | Management Agreements [Member]
Related Party Transaction [Line Items]
Management fees to related party	$ 272,000
Each 50% Shareholder of DWM [Member]
Related Party Transaction [Line Items]
Payments to acquire interest joint venture		$ 375,000	$ 500,000

XML

Transactions with Related Parties (Series D Preferred Stock and Sale and Purchase of Bond by Executives) (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
	Jun. 22, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Proceeds from issuance of stock, net of expenses		$ 254
Purchase of Bond by executives | 8.375% Senior Unsecured Bond
Related Party Transaction [Line Items]
Proceeds from Issuance of Unsecured Debt	$ 21,000
Series D Preferred Stock [Member] | Mrs. Semiramis Paliou
Related Party Transaction [Line Items]
Issuance of new shares	400
Proceeds from issuance of stock, net of expenses	$ 254

XML

Transactions with Related Parties (OceanPal) (Narrative) (Details)				1 Months Ended	12 Months Ended
	Dec. 15, 2022 USD ($) shares	Sep. 20, 2022 USD ($) $ / shares shares	Nov. 29, 2021 USD ($) $ / shares	Nov. 30, 2021 USD ($) Vessels shares	Dec. 31, 2022 USD ($) shares $ / shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)
Related Party Transaction [Line Items]
Gain on spin-off of OceanPal Inc.						$ 15,252,000
Preferred shares, par value					$ 7,744,000	7,644,000
Accrued dividends					100,000	69,000
Due to related parties, current					136,000	596,000
Cash and cash equivalents					76,428,000	110,288,000	$ 62,909,000
Equity Securities Fv-Ni Realized Gain					589,000
Vessels					1,141,128,000	810,429,000	$ 872,431,000
OceanPal [Member]
Related Party Transaction [Line Items]
Accrued dividends					$ 917,000	69,000
OceanPal [Member] | Spin Off [Member]
Related Party Transaction [Line Items]
Number of vessel owing subsidiary shares as capital contribution | Vessels				3
Percentage of common stock to be exchanged				100.00%
Fair value						7,575,000
Gain on spin-off of OceanPal Inc.			$ 15,252,000
Cash and cash equivalents				$ 1,000,000
Fair value				$ 48,084,000
OceanPal [Member]
Related Party Transaction [Line Items]
Maximum total number of votes entitled to vote, including common stock or any other voting security					49.00%
Preferred shares, par value					$ 7,744,000	7,644,000
Accrued dividends					$ 169,000	69,000
Due to related parties, current						$ 70,000
OceanPal [Member] | Baltimore [Member]
Related Party Transaction [Line Items]
Proceeds from sale of productive assets		$ 4,400,000
Purchase price of vessel		$ 22,000,000
OceanPal [Member] | Baltimore [Member]
Related Party Transaction [Line Items]
Maximum percentage of votes as a percentage of total votes					49.00%
Series B Preferred Stock [Member] | OceanPal [Member] | Spin Off [Member]
Related Party Transaction [Line Items]
Shares exchanged for working capital contribution | shares				500,000		500,000
Series B Preferred Stock [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Number of votes of stockholders | shares					2,000
Maximum percentage of votes as a percentage of total votes					34.00%
Equity Securities, fair value			$ 5,000
Series C Convertible Preferred Stock [Member] | OceanPal [Member] | Spin Off [Member]
Related Party Transaction [Line Items]
Shares exchanged for working capital contribution | shares				10,000		10,000
Series C Preferred Stock [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Conversion price | $ / shares			$ 6.5
Cumulative preferred dividend accruing rate			8.00%
Preferred stock liquidation preference per share | $ / shares			$ 10,000
Equity Securities, fair value			$ 7,570,000
Series D Preferred Stock [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Issuance of new shares | shares	9,172	25,000
Cumulative preferred dividend accruing rate					7.00%
Par value | $ / shares		$ 0.01
Preferred stock liquidation preference per share | $ / shares					$ 1,000
Series D Preferred Stock [Member] | OceanPal [Member] | Baltimore [Member]
Related Party Transaction [Line Items]
Equity Securities Fv-Ni Realized Gain					$ 589,000
Balance amount through preferred shares, sale consideration received		$ 17,600,000
Investments, fair value		$ 17,600,000
Series D Preferred Stock [Member] | OceanPal [Member] | Baltimore [Member]
Related Party Transaction [Line Items]
Equity Securities Fv-Ni Realized Gain					$ 589,000
Equity Securities, fair value	$ 18,189,000
Common Stock [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Issuance of new shares | shares	72,011,457

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Advances for vessel acquisitions and Vessels, net (Narrative) (Details) $ in Thousands					1 Months Ended	3 Months Ended	12 Months Ended
	Aug. 10, 2022 USD ($) shares	Jun. 13, 2022 USD ($)	Dec. 03, 2021 USD ($)	Jul. 15, 2021 USD ($)	Aug. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) Vessels	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Aug. 11, 2022 shares
Property, Plant and Equipment [Line Items]
Reclassification to Vessels							$ 1,370	$ 441
Asset Acquisition [Line Items]
Number of warrants | shares										18,487,393
Number Of Vessels Delivered To Company | Vessels						8
Advances for vessel acquisitions						$ 24,123	24,123	16,287
Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) from sale of vessels							(2,850)	(1,360)	$ 1,085
Vessels' net book value						949,616	949,616	643,450	716,178
Vessels						1,141,128	1,141,128	$ 810,429	$ 872,431
Najas
Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of vessel						11,250	11,250
Gain (loss) from sale of vessels							(1,564)
Vessels' net book value						9,010	9,010
Baltimore
Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of vessel						22,000	22,000
Gain (loss) from sale of vessels		$ (2,850)
Unamortized deferred costs		$ 41
Vessels' net book value						16,722	16,722
Vessel Acquisitions
Asset Acquisition [Line Items]
Advances for vessels acquisitions held at an escrow account						$ 20,571	20,571
Leonidas P.C.
Asset Acquisition [Line Items]
Advances for vessel acquisitions				$ 4,400
Percentage of advance amount paid				20.00%
Additional predelivery expenses.				$ 927
Purchase price of vessel acquired				$ 22,000
Florida
Asset Acquisition [Line Items]
Advances for vessel acquisitions			$ 11,855
Percentage of advance amount paid			20.00%
Additional predelivery expenses.			$ 1,504
Purchase price of vessel acquired			$ 59,275
Nine Ultramax vessels
Asset Acquisition [Line Items]
Total amount of equity interest	$ 110,000
Eight of nine Utramax vessels
Asset Acquisition [Line Items]
Additional predelivery expenses.					$ 4,364
Purchase price of vessel acquired					263,719
Total amount of equity interest					$ 67,909
Ninth of nine Ultramax vessels
Asset Acquisition [Line Items]
Additional predelivery expenses.							$ 169
Ultramax
Asset Acquisition [Line Items]
Asset acquisition price of acquisition expected	330,000
Amount to be paid in cash	$ 220,000
Ultramax | Newly Issued Common Shares, Issuable On Delivery Of Each Vessel [Member]
Asset Acquisition [Line Items]
Number of warrants | shares	18,487,393
Class Of Warrant Or Right Unissued | shares	9

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Advances for vessel acquisitions and Vessels, net (Schedule of Vessels, net in the accompanying consolidated balance sheets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Vessel Cost
Beginning balance	$ 810,429	$ 872,431
Vessels additions and improvements	358,504	1,106
Reclassification to Vessels	1,370	441
Vessel disposals	(29,175)	(16,120)
Vessels contributed to OceanPal		(47,429)
Ending balance	1,141,128	810,429
Accumulated Depreciation
Beginning balance	(166,979)	(156,253)
Vessel disposals	12,453	7,110
Vessels contributed to OceanPal		17,127
Depreciation for the year	(36,986)	(34,963)
Ending balance	(191,512)	(166,979)
Net Book Value
Beginning balance	643,450	716,178
Vessels additions and improvements	358,504	1,106
Reclassification to Vessels	1,370	441
Vessel disposal	(16,722)	(9,010)
Vessels contributed to OceanPal		(30,302)
Depreciation for the year	(36,986)	(34,963)
Ending balance	$ 949,616	$ 643,450

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Property and Equipment, net (Narrative) (Details) - DSS $ in Thousands, € in Millions	1 Months Ended
	Nov. 30, 2021 EUR (€)	Nov. 30, 2021 USD ($)
Percentage of land acquired	33.33%	33.33%
Purchase price of land | €	€ 1.1
Payments To Acquire Land Held For Use | $		$ 1,358

XML

Property and Equipment, net (Schedule of property and equipment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Movement in Property, Plant and Equipment [Roll Forward]
Property and Equipment, Beginning Balance	$ 28,269	$ 27,198
Additions in property and equipment	667	1,600
Disposal of assets		(529)
Property and Equipment, Ending Balance	28,936	28,269
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward]
Accumulated Depreciation, Property and Equipment, Beginning Balance	(5,427)	(5,494)
Depreciation for the year	(546)	(462)
Disposal of assets		529
Accumulated Depreciation, Property and Equipment, Ending Balance	(5,973)	(5,427)
Property, Plant and Equipment, Net, by Type [Abstract]
Property And Equipment Net, Beginning Balance	22,842	21,704
Additions in property and equipment	667	1,600
Depreciation for the year	(546)	(462)
Property And Equipment Net, Ending Balance	$ 22,963	$ 22,842

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Long-term debt (Narrative I) (Details) $ in Thousands					12 Months Ended
	Sep. 27, 2021	Jun. 22, 2021 USD ($)	Sep. 27, 2018 USD ($)	Dec. 19, 2014 USD ($)	Dec. 31, 2022 USD ($) Vessels	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jul. 07, 2020 USD ($)
Debt Instrument [Line Items]
Gain on extinguishment of Debt					$ (435)	$ (980)	$ 374
Minimum cash deposits required to be maintained					$ 21,000	$ 16,500	20,000
Secured Debt [Member]
Debt Instrument [Line Items]
Number Of Vessels Collateral For Debt | Vessels					34
Long-term Debt, Weighted Average Interest Rate					3.80%	2.45%
Debt Instrument Collateral Amount					$ 722,961
Minimum cash deposits required to be maintained					$ 21,000	$ 16,500
8.375% Senior Unsecured Bond
Debt Instrument [Line Items]
Debt Instrument, Issuance Date					Jun. 22, 2021
Debt Instrument, Face Amount		$ 125,000
Debt Instrument, Interest Rate, Stated Percentage		8.375%
8.375% Senior Unsecured Bond | Officers And Directors
Debt Instrument [Line Items]
Proceeds from Issuance of Unsecured Debt		$ 21,000
8.375% Senior Unsecured Bond | June 2024 to May 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage					103.35%
8.375% Senior Unsecured Bond | June 2025 to December 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage					101.675%
8.375% Senior Unsecured Bond | After December 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage					100.00%
9.5% Senior Unsecured Bond
Debt Instrument [Line Items]
Debt Instrument, Issuance Date					Sep. 27, 2018
Debt Instrument, Face Amount			$ 100,000
Debt Instrument, Payment Terms					payable semi-annually in arrears in March and September of each year
Debt Instrument, Interest Rate, Stated Percentage			9.50%
Debt Instrument, Redemption Price, Percentage	103.80%	106.25%
Fees paid						5,272
Gain on extinguishment of Debt						(57)
Repurchased bonds		$ 78,838
Nominal value of bond repurchased		74,200						$ 8,000
Debt Instrument, Call Feature					The bond was callable in whole or in parts in three years at a price equal to 103.8% of nominal value; in four years at a price equal to 101.9% of the nominal value and in four and a half years at a price equal to 100% of nominal value.
Gain (Loss) on Repurchase of Debt Instrument						$ (880)	$ 374
Debt extinguishment, amount		800
Debt refinanced, amount excluding extinguishment		$ 73,400
9.5% Senior Unsecured Bond | Officers And Directors
Debt Instrument [Line Items]
Proceeds from Issuance of Unsecured Debt			$ 16,200
9.5% Senior Unsecured Bond | In three years [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			103.80%
9.5% Senior Unsecured Bond | In four years [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			101.90%
9.5% Senior Unsecured Bond | In four and a half years [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			100.00%
BNP Paribas [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt				$ 53,500
Debt Instrument, Maturity Date				Nov. 30, 2021

XML

Long-term debt (Narrative II) (Details) - Export-Import Bank of China and DnB NOR Bank ASA [Member] - Secured Debt [Member] $ in Thousands		12 Months Ended
	Feb. 15, 2012 USD ($)	Dec. 31, 2022 USD ($) Installments
First Tranche [Member]
Debt Instrument [Line Items]
Debt Instrument, Issuance Date		Feb. 15, 2012
Proceeds From Issuance Of Secured Debt	$ 37,450
Debt Instrument, Number of installments | Installments		40
Debt Instrument, Frequency of Periodic Payments		quarterly
Debt Instrument, Periodic Payment, Principal		$ 628
Debt Instrument, Balloon Payment		$ 12,332
Debt Instrument, Maturity Date		Feb. 15, 2022
Second Tranche [Member]
Debt Instrument [Line Items]
Debt Instrument, Issuance Date		May 18, 2012
Proceeds From Issuance Of Secured Debt		$ 34,640
Debt Instrument, Number of installments | Installments		40
Debt Instrument, Frequency of Periodic Payments		quarterly
Debt Instrument, Periodic Payment, Principal		$ 581
Debt Instrument, Balloon Payment		$ 11,410
Debt Instrument, Maturity Date		May 18, 2022
Second Tranche [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage		2.50%

XML

Long-term debt (Narrative III) (Details)									1 Months Ended	3 Months Ended	12 Months Ended
	Dec. 12, 2022 USD ($)	Sep. 30, 2022 USD ($) Vessels	Jul. 30, 2021 USD ($)	Jun. 29, 2020 USD ($)	Jul. 16, 2018 USD ($)	Mar. 19, 2015 USD ($)	Dec. 19, 2014 USD ($)	Jan. 13, 2014 USD ($)	Jul. 31, 2022 USD ($)	Mar. 19, 2015	Dec. 31, 2022 USD ($) Installments	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Loan expenses and other											$ 415,000	$ 307,000	$ 285,000
Commonwealth Bank of Australia, London Branch [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt								$ 9,500,000
Debt Instrument, Number of installments | Installments											32
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 156,000
Debt Instrument, Balloon Payment											$ 4,500,000
Debt Instrument, Maturity Date											Jan. 13, 2022
Debt Instrument, Description of Variable Rate Basis											LIBOR
Commonwealth Bank of Australia, London Branch [Member] | Secured Debt [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage											2.25%
BNP Paribas [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt							$ 53,500,000
Debt Instrument, Maturity Date							Nov. 30, 2021
BNP Paribas [Member] | Secured Debt [Member] | Second Agreement [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt					$ 75,000,000
Debt Instrument, Periodic Payment, Principal				$ 1,574,000	1,562,500
Debt Instrument, Balloon Payment				$ 23,596,000	$ 43,750,000
Debt Instrument, Maturity Date				May 19, 2024	Jul. 17, 2023
BNP Paribas [Member] | Secured Debt [Member] | Second Agreement [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage				2.50%	2.30%
Nordea Bank AB, London Branch [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt						$ 93,080,000
Debt Instrument, Maturity Date						Mar. 19, 2021
Nordea Bank AB, London Branch [Member] | Secured Debt [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage										2.10%
Nordea Bank AB, London Branch [Member] | Secured Debt [Member] | Refinancing Agreement
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt			$ 460,000
Debt Instrument, Periodic Payment, Principal			1,862,000
Debt Instrument, Balloon Payment			$ 26,522,000
Debt Instrument, Maturity Date										Mar. 19, 2024
Repayment of secured loan agreement									$ 4,786,000
Nordea Bank AB, London Branch [Member] | Secured Debt [Member] | New Repayments Terms Following July2022 Prepayment [Member]
Debt Instrument [Line Items]
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 1,636,000
Debt Instrument, Balloon Payment											$ 23,313,000
Debt Instrument, Maturity Date											Mar. 19, 2024
Nordea Bank AB, London Branch [Member] | Secured Debt [Member] | Loan Agreement - 9 Ultramax Vessels [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt		$ 197,236,000
Debt Instrument, Number of installments | Installments											20
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 3,719,000
Debt Instrument, Balloon Payment											$ 100,912,000
Debt Instrument, Maturity Date											Oct. 11, 2027
Repayment of secured loan agreement	$ 21,937,000
Debt Instrument, Face Amount		$ 200,000,000
Number of vessels priced | Vessels		9
Loan fees											$ 2,069,000
Loan expenses and other											$ 191,000
Nordea Bank AB, London Branch [Member] | Secured Debt [Member] | Loan Agreement - 9 Ultramax Vessels [Member] | SOFR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage											2.25%

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Long-term debt (Narrative IV)) (Details) - Secured Debt [Member]							2 Months Ended	4 Months Ended	12 Months Ended
	Aug. 22, 2022 USD ($)	May 20, 2021 USD ($)	May 22, 2020 USD ($)	Jan. 04, 2017 USD ($)	Nov. 19, 2015 USD ($) Installments	Oct. 06, 2015 USD ($) Installments	Mar. 14, 2019 USD ($)	Apr. 30, 2015 USD ($)	Dec. 31, 2022 USD ($) Installments
ABN AMRO Bank N.V. [Member] | Third Agreement [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt		$ 91,000,000
Debt Instrument, Frequency of Periodic Payments									quarterly
Debt Instrument, Periodic Payment, Principal	$ 1,980,000	3,390,000
Debt Instrument, Balloon Payment	$ 13,553,000	$ 23,200,000
Debt Instrument, Maturity Date	May 20, 2026	May 20, 2026
Repayment of secured loan agreement	$ 30,791,000
ABN AMRO Bank N.V. [Member] | Third Agreement [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage	2.15%
Maximum annual increase (decrease) to basis rate	10.00%
ABN AMRO Bank N.V. [Member] | Term loan facility
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt			$ 52,885,000
ABN AMRO Bank N.V. [Member] | Term loan facility | First Tranche [Member]
Debt Instrument [Line Items]
Debt Instrument, Frequency of Periodic Payments									quarterly
Debt Instrument, Periodic Payment, Principal									$ 800,000
Debt Instrument, Balloon Payment									$ 9,000,000
Debt Instrument, Maturity Date									Jun. 28, 2024
ABN AMRO Bank N.V. [Member] | Term loan facility | First Tranche [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage									2.25%
ABN AMRO Bank N.V. [Member] | Term loan facility | Second Tranche [Member]
Debt Instrument [Line Items]
Debt Instrument, Frequency of Periodic Payments									quarterly
Debt Instrument, Periodic Payment, Principal									$ 994,000
Debt Instrument, Balloon Payment									$ 13,391,000
Debt Instrument, Maturity Date									Jun. 28, 2024
ABN AMRO Bank N.V. [Member] | Term loan facility | Second Tranche [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage									2.40%
Danish Ship Finance A/S
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt								$ 30,000,000
Debt Instrument, Number of installments | Installments									28
Debt Instrument, Frequency of Periodic Payments									quarterly
Debt Instrument, Periodic Payment, Principal									$ 500,000
Debt Instrument, Balloon Payment									$ 16,000,000
Debt Instrument, Maturity Date									Apr. 30, 2022
Danish Ship Finance A/S | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage									2.15%
ING Bank N.V. [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage									1.65%
ING Bank N.V. [Member] | First Tranche [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt					$ 27,950,000
Debt Instrument, Number of installments | Installments					28
Debt Instrument, Frequency of Periodic Payments									quarterly
Debt Instrument, Periodic Payment, Principal					$ 466,000
Debt Instrument, Balloon Payment					$ 14,907,000
Debt Instrument, Maturity Date					Nov. 19, 2022
ING Bank N.V. [Member] | Second Tranche [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt						$ 11,733,000
Debt Instrument, Number of installments | Installments						28
Debt Instrument, Frequency of Periodic Payments									quarterly
Debt Instrument, Periodic Payment, Principal						$ 293,000
Debt Instrument, Balloon Payment						$ 3,520,000
Debt Instrument, Maturity Date						Oct. 06, 2022
Export-Import Bank of China [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt				$ 57,240,000
Debt Instrument, Frequency of Periodic Payments									quarterly
Debt Instrument, Periodic Payment, Principal									$ 954,000
Debt Instrument, Maturity Date									Jan. 04, 2032
Export-Import Bank of China [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage									2.30%
DNB Bank ASA [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt							$ 19,000,000
Debt Instrument, Frequency of Periodic Payments									quarterly
Debt Instrument, Periodic Payment, Principal									$ 477,300
Debt Instrument, Balloon Payment									$ 9,454,000
Debt Instrument, Maturity Date									Mar. 14, 2024
DNB Bank ASA [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage									2.40%

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Long-term debt (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Long-term debt
Senior unsecured bond	$ 125,000	$ 125,000
Secured long-term debt	405,120	306,843
Total long-term debt	530,120	431,843
Less: Deferred financing costs	(7,609)	(8,168)
Long-term debt, net of deferred financing costs	522,511	423,675
Less: Current portion of long term debt, net of deferred financing costs current	(91,495)	(41,148)
Long-term debt, excluding current maturities	$ 431,016	$ 382,527

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Long-term debt (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Maturities of Long-term Debt [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 93,830
Long-term Debt, Maturities, Repayments of Principal in Year Two	112,645
Long-term Debt, Maturities, Repayments of Principal in Year Three	26,615
Long-term Debt, Maturities, Repayments of Principal in Year Four	161,207
Long-term Debt, Maturities, Repayments of Principal in Year Five	119,605
Long-term Debt, Maturities, Repayments of Principal after Year Five	16,218
Total long-term debt	$ 530,120	$ 431,843

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Finance Liabilities (Narrative) (Details) $ in Thousands				12 Months Ended
	Dec. 06, 2022 USD ($)	Aug. 17, 2022 USD ($) Vessels	Mar. 29, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Property, Plant and Equipment [Line Items]
Finance Lease Liability				$ 140,931
Lease obligation issuance costs				$ 3,302	$ 7,594	$ 567
Weighted average remaining lease term				8 years 8 months 8 days
Average interest rate				4.61%
Florida 2022 Built Capesize Vessel [Member]
Property, Plant and Equipment [Line Items]
Finance Lease Liability			$ 50,000
Term for bareboat charter party			10 years
Lease obligation to purchase vessel			$ 16,350
Lease obligation issuance costs			$ 513
New Orleans And Santa Barbara Vessels [Member]
Property, Plant and Equipment [Line Items]
Finance Lease Liability		$ 66,400
Term for bareboat charter party		8 years
Lease obligation issuance costs		$ 665
Number of sale and leaseback agreements | Vessels		2
New Orleans Vessel [Member]
Property, Plant and Equipment [Line Items]
Lease obligation to purchase vessel		$ 13,000
Santa Barbara Vessel [Member]
Property, Plant and Equipment [Line Items]
Lease obligation to purchase vessel		$ 13,000
DSI Andromeda [Member]
Property, Plant and Equipment [Line Items]
Finance Lease Liability	$ 29,850
Term for bareboat charter party	10 years
Lease obligation to purchase vessel	$ 8,050
Lease obligation issuance costs	$ 354

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Finance Liabilities (Analysis of Finance Liabilities on Balance Sheets) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Finance Liabilities
Total finance liabilities	$ 142,370
Finance liabilities, net of deferred financing costs	140,931
Less: Current finance liabilities, net of deferred financing costs, current	(8,802)	$ 0
Finance liabilities, excluding current maturities	132,129	0
Lessee Lease Description [Line Items]
Less: Deferred financing costs	(7,609)	$ (8,168)
Finance Liabilities [Member]
Lessee Lease Description [Line Items]
Less: Deferred financing costs	$ (1,439)

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Finance Liabilities (Annual Lease Liabilities) (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Finance Liabilities
Year 1	$ 9,033
Year 2	9,437
Year 3	9,808
Year 4	10,224
Year 5	10,661
Year 6 and thereafter	93,207
Total finance liabilities	$ 142,370

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Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Sep. 23, 2021
Loss Contingencies [Line Items]
Insurance maximum amount	$ 1,000,000
Insurance Recoveries	1,789
Total amount of fine	$ 2,000
Diana Wilhelmsen Management Limited (DWM)
Loss Contingencies [Line Items]
Due From Related Parties		$ 1,000

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Commitments and Contingencies (Schedule of fixed non cancelable time charter contracts) (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Year 1	$ 163,438
Year 2	22,980
Year 3	9,454
Year 4	9,454
Year 5	725
Total	$ 206,051

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Capital Stock and Changes in Capital Accounts (Narrative stocks) (Details)							1 Months Ended					3 Months Ended	12 Months Ended
	Dec. 15, 2022 USD ($) $ / shares	Aug. 19, 2022 $ / shares	Jun. 17, 2022 $ / shares	Mar. 21, 2022 $ / shares	Nov. 29, 2021 USD ($)	Jun. 22, 2021 USD ($) $ / shares shares	Dec. 31, 2021 $ / shares shares	Aug. 31, 2021 $ / shares shares	Feb. 28, 2021 $ / shares shares	Mar. 31, 2020 $ / shares shares	Feb. 28, 2020 $ / shares shares	Dec. 31, 2022 shares $ / shares	Dec. 31, 2022 USD ($) shares $ / shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) shares
Class Of Stock [Line Items]
Cash dividends on preferred stock | $													$ 5,769,000	$ 5,769,000	$ 5,769,000
Payments for repurchase of common stock | $													3,799,000	45,369,000	11,999,000
Proceeds from issuance of stock, net of expenses | $														254,000
Cash dividend | $													79,812,000	8,820,000
Dividends in stock, value | $					$ 40,509,000									40,509,000
Dividends Paid-in-kind | $	$ 18,189,000												18,189,000
Issuance of stock | $													$ 5,322,000	254,000
Dividends Paid-in-kind, per share | $ / shares	$ 0.18
ATM Program [Member]
Class Of Stock [Line Items]
Shares issued price per share | $ / shares												$ 6.27	$ 6.27
Issuance of stock | $													$ 5,322,000
Series B Preferred Stock [Member]
Class Of Stock [Line Items]
Cash dividends on preferred stock | $													$ 5,769,000	$ 5,769,000	$ 5,769,000
Series D Preferred Stock [Member] | Mrs. Semiramis Paliou
Class Of Stock [Line Items]
Issuance of new shares						400
Preferred stock, Par value per share | $ / shares						$ 0.01
Cash dividends on preferred stock | $						$ 0
Preferred stock number of voting rights						100,000
Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, Shares authorized							25,000,000					25,000,000	25,000,000	25,000,000
Preferred stock, Par value per share | $ / shares							$ 0.01					$ 0.01	$ 0.01	$ 0.01
Preferred Stock [Member] | Series A Participating Preferred Stock
Class Of Stock [Line Items]
Preferred stock, Shares authorized							1,000,000					1,000,000	1,000,000	1,000,000
Issuance of preferred stock, shares							0					0	0	0
Preferred stock, Shares outstanding							0					0	0	0
Preferred Stock [Member] | Series B Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, Shares authorized							5,000,000					5,000,000	5,000,000	5,000,000
Preferred stock, Par value per share | $ / shares							$ 0.01					$ 0.01	$ 0.01	$ 0.01
Issuance of preferred stock, shares							2,600,000					2,600,000	2,600,000	2,600,000
Preferred stock, Shares outstanding							2,600,000					2,600,000	2,600,000	2,600,000
Shares issued price per share | $ / shares							$ 25.00					$ 25.00	$ 25.00	$ 25.00
Preferred stock liquidation preference per share | $ / shares							$ 25.00					25.00	$ 25.00	$ 25.00
Preferred stock voting rights													Holders of Series B Preferred Shares have no voting rights other than the ability, subject to certain exceptions, to elect one director if dividends for six quarterly dividend periods (whether or not consecutive) are in arrears and certain other limited protective voting rights.
Preferred stock dividend rate percentage													8.875%
Preferred stock dividend rate per dollar amount | $ / shares													$ 2.21875
Preferred stock, Redemption price per share | $ / shares												$ 25.00	$ 25.00
Preferred Stock [Member] | Series C Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, Shares authorized							10,675					10,675	10,675	10,675
Issuance of preferred stock, shares							10,675					10,675	10,675	10,675
Preferred stock, Shares outstanding							10,675					10,675	10,675	10,675
Shares issued price per share | $ / shares							$ 0.01					$ 0.01	$ 0.01	$ 0.01
Preferred stock voting rights													The Series C Preferred Stock votes with the common shares of the Company, and each share entitles the holder thereof to 1,000 votes on all matters submitted to a vote of the shareholders of the Company.
Preferred stock number of voting rights												1,000	1,000
Preferred Stock [Member] | Series D Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, Shares authorized							400					400	400	400
Issuance of new shares														400
Common Stock [Member]
Class Of Stock [Line Items]
Issuance of new shares													877,581
Shares issued price per share | $ / shares												$ 4.13	$ 4.13
Stock repurchased shares							3,529,411	3,333,333	6,000,000	1,088,034	3,030,303		820,000	12,862,744	4,118,337
Shares repurchase price per share | $ / shares							$ 4.25	$ 4.50	$ 2.50	$ 1.72	$ 3.30		$ 4.56
Payments for repurchase of common stock | $													$ 3,799,000	$ 45,369,000	$ 11,999,000
Dividend paid on common stock per share | $ / shares	$ 0.175	$ 0.275	$ 0.25	$ 0.20
Cash dividend | $	$ 79,812,000
Issuance of stock | $													$ 9,000
Issuance of common stock for vessel acquisitions, shares (Notes 4 and 9(e))												16,453,780	16,453,780

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Capital Stock and Changes in Capital Accounts (Narrative incentive plan) (Details) - USD ($) $ in Thousands		12 Months Ended
	Feb. 25, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock capital shares reserved for future issuance		15,194,759
Compensation cost on restricted stock		$ 9,282	$ 7,442	$ 10,511
Unrecognized cost for unvested restricted shares		$ 16,873	$ 20,054
Total compensation cost not yet recognized, Period for recognition		2 years 6 months 14 days
Granted		1,470,000	8,260,000	2,200,000
Restricted Stock | Executive Management And Non-Executive Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Unrecognized cost for unvested restricted shares	$ 6,101
Granted	1,470,000

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Capital Stock and Changes in Capital Accounts (Narrative warrants) (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) Vessels shares	Aug. 11, 2022 $ / shares shares
Share-based Arrangements with Employees and Nonemployees
Number of warrants		18,487,393
Number of shares permitted to purchase from warrants		9
Price per share | $ / shares		$ 0.01
Number of warrants outstanding	1
Number of vessels not delivered to company | Vessels	1
Proceeds from warrant exercises | $	$ 0

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Capital Stock and Changes in Capital Accounts (Schedule of share-based compensation restricted stock and restricted stock units activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Non vested restricted common stock, beginning balance	9,514,649	2,423,012	3,833,233
Granted	1,470,000	8,260,000	2,200,000
Vested	(3,118,060)	(1,168,363)	(3,610,221)
Non vested restricted common stock, ending balance	7,866,589	9,514,649	2,423,012
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, beginning balance	$ 2.83	$ 2.95	$ 3.63
Weighted Average Grant Date Fair Value, Granted	4.15	2.85	2.72
Weighted Average Grant Date Fair Value, Vested	2.86	3.20	3.52
Weighted Average Grant Date Fair Value, ending balance	$ 3.07	$ 2.83	$ 2.95

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Voyage Expenses (Schedule of voyage expenses analysis) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Voyage expenses
Commissions	$ 14,412	$ 10,794	$ 8,310
Loss from bunker	(8,100)	(5,955)	3,708
Port expenses and other	630	731	1,507
Total	$ 6,942	$ 5,570	$ 13,525

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Interest and Finance Costs (Schedule of interest and finance costs) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest and Finance Costs
Interest expense, debt	$ 21,983	$ 18,067	$ 20,163
Finance liabilities interest expense	2,735
Amortization of debt and finance liabilities issuance costs	2,286	1,865	1,066
Loan and other expenses	415	307	285
Interest expense and finance costs	$ 27,419	$ 20,239	$ 21,514

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Earnings/(loss) per Share (Narrative) (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Abstract]
Denominator of the diluted earnings per share calculation			0
Incremental shares	3,257,861	3,735,059

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Earnings/(loss) per Share (Schedule of earnings per share, basic and diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Abstract]
Net income/(loss)	$ 119,063	$ 57,394	$ (134,197)
Dividends on series B preferred shares	(5,769)	(5,769)	(5,769)
Net income/(loss) attributable to common stockholders	$ 113,294	$ 51,625	$ (139,966)
Weighted average number of common shares, basic	80,061,040	81,121,781	86,143,556
Incremental shares	3,257,861	3,735,059
Weighted average number of common shares, diluted	83,318,901	84,856,840	86,143,556
Earnings/(loss) per share, basic	$ 1.42	$ 0.64	$ (1.62)
Earnings/(loss) per share, diluted	$ 1.36	$ 0.61	$ (1.62)

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Income Taxes (Narrative) (Details)	Dec. 31, 2022
Income Tax Uncertainties [Abstract]
Shipping Income Percentage	50.00%
Tax Rate On US Source Shipping Income	4.00%

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Financial Instruments and Fair Value Disclosures (Narrative) (Details) - USD ($)			12 Months Ended
	Dec. 15, 2022	Sep. 20, 2022	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value			$ 125,000,000	$ 125,000,000
Gain on dividend distribution (Note 3(f))			589,000
OceanPal [Member] | Series D Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Issuance of new shares	9,172	25,000
Baltimore [Member] | OceanPal [Member] | Series D Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance amount through preferred shares, sale consideration received		$ 17,600,000
Gain on dividend distribution (Note 3(f))			589,000
Investments, fair value		17,600,000
Level 2 [Member] | OceanPal [Member] | Series D Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Securities, fair value	$ 18,189,000
Investments, fair value		$ 17,600,000
8.375% Senior Unsecured Bond.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value			125,000,000
8.375% Senior Unsecured Bond. | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value			$ 120,525,000

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Financial Instruments and Fair Value Disclosures (Schedule of company's charter revenues) (Details) - Customer Concentration Risk - Revenue Benchmark	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Minimum
Concentration Risk [Line Items]
Percentage of charter revenues	10.00%	10.00%	10.00%
Cargill International SA
Concentration Risk [Line Items]
Percentage of charter revenues	0.19%	0.10%	0.18%
Koch Shipping PTE LTD. Singapore
Concentration Risk [Line Items]
Percentage of charter revenues	0.15%		0.16%

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Financial Instruments and Fair Value Disclosures (Schedule of other fair value measurements (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2022 USD ($) Vessels	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Nov. 29, 2021 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchase price		$ 230,302	$ 17,393	$ 6,001
Issuance of common stock for vessel acquisitions		67,853
Series B Preferred Stock [Member] | Equity Securities, Investment In Oceanpal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure					$ 5
Series C Preferred Stock [Member] | Equity Securities, Investment In Oceanpal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure					$ 7,570
Non recurring fair value measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 67,909	67,909
Non recurring fair value measurements | Investments in related parties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure			7,575
Non recurring fair value measurements | Long Lived Assets Held For Use
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 67,909	67,909
Non recurring fair value measurements | Long Lived Assets Held For Use | Master Agreement With Sea Trade [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number Of Vessels Delivered | Vessels	8
Purchase price of vessel acquired	$ 263,719
Purchase price	195,810
Issuance of common stock for vessel acquisitions		67,909
Non recurring fair value measurements | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	67,909	67,909
Non recurring fair value measurements | Level 1 [Member] | Long Lived Assets Held For Use
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 67,909	$ 67,909
Non recurring fair value measurements | Level 2 [Member] | Investments in related parties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure			$ 7,575

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Subsequent Events (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands										12 Months Ended
	Apr. 24, 2023	Mar. 20, 2023	Mar. 14, 2023	Feb. 22, 2023	Feb. 14, 2023	Feb. 02, 2023	Feb. 01, 2023	Jan. 30, 2023	Jan. 17, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jan. 23, 2023
Subsequent Event [Line Items]
Cash proceeds from sale of vessels										$ 4,372	$ 33,731	$ 15,623
Common stock, par value per share										$ 0.01	$ 0.01
Issuance of common stock for vessel acquisitions										$ 67,853
Cash dividend										$ 79,812	$ 8,820
Restricted common stock granted in period										1,470,000	8,260,000	2,200,000
Fair value of approved awards										$ 16,873	$ 20,054
Subsequent Events.
Subsequent Event [Line Items]
Dividend paid on common stock per share		$ 0.15
Cash proceeds from sale of vessels							$ 4,000
Purchase price of vessel							14,000						$ 15,080
Repayment of secured loan agreement			$ 11,841
Stock Issued During Period Shares Purchase Of Assets								2,033,613
Common stock, par value per share								$ 0.01
Issuance of common stock for vessel acquisitions								$ 7,809
Cash dividend		$ 15,965
Subsequent Events. | Ultramax
Subsequent Event [Line Items]
Purchase price of vessel acquired					$ 27,900
Percent of paid in advance of purchase price					10.00%
Subsequent Events. | Nordea Loan [Member]
Subsequent Event [Line Items]
Repayment of secured loan agreement						$ 8,134
Restricted Stock | Subsequent Events.
Subsequent Event [Line Items]
Vesting period (in years)				3 years
Restricted common stock granted in period				1,750,000
Fair value of approved awards				$ 7,945
Series B Preferred Stock [Member] | Subsequent Events.
Subsequent Event [Line Items]
Preferred Stock, Dividends per share									$ 0.5546875
Dividends, Preferred Stock									$ 1,442
Series D Preferred Stock [Member] | Scenario Forecast [Member]
Subsequent Event [Line Items]
Issuance of new shares	13,157
Series D Preferred Stock [Member] | Subsequent Events.
Subsequent Event [Line Items]
Value Of Shares In PPE Purchase Price							$ 10,000
Shares Received In Ppe Sale							13,157