Lars Eide

Lars Moen Eide of Arctic Securities inquired about the strategic rationale for acquiring a stake in Genco Shipping & Trading Limited. He asked about the investment horizon and why Diana prioritized this over repurchasing its own shares, which trade at a higher discount to NAV.

Answer

Ioannis Zafirakis, Director and Chief Strategy Officer, explained the Genco purchase is a medium- to long-term investment. He cited Genco's quality management, a differing chartering strategy, its dividend payments, and the strategic value of Diana becoming a major shareholder as key reasons, deeming it a better option than a buyback at this time.

Lars Moen Eide from Arctic Securities questioned the rationale behind the recent investment in Genco Shipping & Trading Limited, asking about the investment's time horizon and why the company chose this over repurchasing its own shares, which traded at a steeper discount to NAV.

Answer

Ioannis Zafirakis, Director and Co-Chief Financial Officer, explained the Genco investment is a medium to long-term strategic move. He cited Genco's quality as a well-run, dividend-paying company with a different chartering strategy. Zafirakis emphasized the value of Diana Shipping's strategic positioning as a major shareholder, deeming it a better current option than share buybacks, without ruling out future repurchases.

Lars Eide asked which geopolitical and economic developments, such as China's GDP targets or potential US policy changes, the company is monitoring most closely and expects to have the biggest impact.

Answer

Executive Stamatios Tsantanis responded that the company's primary focus is on the fundamentals of supply and demand. He emphasized that demand for raw materials has remained very strong, and the recent market weakness was driven by an effective supply increase from smaller vessels, not a drop in demand. He views a full-blown trade war as a low probability but believes the inertia of global GDP growth will support strong demand for raw materials going forward.

Lars Eide from Arctic Securities questioned which geopolitical and economic developments, such as China's GDP targets or potential U.S. policy shifts, Seanergy is monitoring most closely and their expected market impact.

Answer

Executive Stamatios Tsantanis responded that the company sees continued strong demand for raw materials, which is the primary fundamental driver, even with events like China's real estate issues. He emphasized that market fluctuations are more often driven by effective vessel supply, as seen with the Kamsarmax impact, rather than demand problems. While a global trade war is considered a low probability, he noted it would affect all shipping segments, but believes the inertia of global GDP growth will sustain demand.

Lars Eide of Arctic Securities asked for clarification on recent reports of potential bauxite export disruptions from Guinea and their potential market impact.

Answer

Executive Stamatios Tsantanis acknowledged hearing unsubstantiated rumors about disruptions in West Africa but stated he does not anticipate any long-term effects on that front, expecting the situation to return to normality soon.