Diana Shipping Inc. Annual Report 2023

← All annual reports

FY2023 Annual Report · Diana Shipping Inc.

Loading PDF…

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

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

For the fiscal year ended December 31, 2023

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

☐ 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

____________________________________________________________________________________________________________________________________________________________________________________________________________
(Exact name of Registrant as specified in its charter)
Diana Shipping Inc.

(Translation of Registrant’s name into English)

DIANA SHIPPING INC.

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
Common Stock, $0.01 par value including the Preferred Stock Purchase Rights
8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, $0.01 par value
Warrants to Purchase Common Stock, Expiring on or about December 14, 2026

Trading
Symbol(s)
DSX
DSXPRB
DSX WS

Name of each exchange on which
registered
New York Stock Exchange
New York Stock Exchange
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.

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, 2023, there were 113,065,725 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.

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.

☐ Yes ☑ No

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
by the International Accounting Standards Board □

Other ☐

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.

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).

☐ Item 17 ☐ Item 18

☐ 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

TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS

PART I
Item 1.
Item 2.
Item 3.
Item 4.
Item 4A.
Item 5.
Item 6.
Item 7.
Item 8.
Item 9.
Item 10.
Item 11.
Item 12.

Identity of Directors, Senior Management and Advisers
Offer Statistics and Expected Timetable
Key Information
Information on the Company
Unresolved Staff Comments
Operating and Financial Review and Prospects
Directors, Senior Management and Employees
Major Shareholders and Related Party Transactions
Financial Information
The Offer and Listing
Additional Information
Quantitative and Qualitative Disclosures about Market Risk
Description of Securities Other than Equity Securities

Defaults, Dividend Arrearages and Delinquencies
Material Modifications to the Rights of Security Holders and Use of Proceeds
Controls and Procedures
Audit Committee Financial Expert
Code of Ethics
Principal Accountant Fees and Services
Exemptions from the Listing Standards for Audit Committees
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
Change in Registrant’s Certifying Accountant

PART II
Item 13.
Item 14.
Item 15.
Item 16A.
Item 16B.
Item 16C.
Item 16D.
Item 16E.
Item 16F.
Item 16G. Corporate Governance
Item 16H. Mine Safety Disclosure
Item 16I.
Item 16J.
Item 16K.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Insider Trading Policies
Cybersecurity

PART III
Item 17.
Item 18.
Item 19.

Financial Statements
Financial Statements
Exhibits

8
8
8
43
68
68
85
93
98
99
100
109
110

111
111
111
112
112
112
113
113
113
114
115
115
115
115

117
117
117

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, interest rates, and inflationary pressures;

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

•

changes in demand in the dry-bulk shipping industry;

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;

• any continuing impacts of coronavirus (COVID-19) or other global or regional pandemics 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.
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.

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

[Reserved]

Capitalization and Indebtedness

Not Applicable.

Reasons for the Offer and Use of Proceeds

Not Applicable.

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.

• 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.

• 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.

• 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.

• 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.

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.

•

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.

Risks Relating to Our Outstanding Warrants

•

The issuance of our common stock upon the exercise of our Warrants may depress our
stock price.

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.

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.

In 2023, the period market for dry bulk vessels experienced fluctuations influenced by various factors. Dry
bulk market conditions remained volatile reflecting the impact of war in Ukraine, geopolitical tensions, trade
policies, and environmental regulations. However, there were regional variations in market conditions,
with China's demand recovering and some other areas experiencing stronger demand due to infrastructure
projects or agricultural exports. Panama Canal and Suez Canal disruptions during the year surely affected
market and the longer these issues go on, the more of a market support it will be. The markets rallied
strongly at the end of last year, with the Baltic Capesize index rallying to heights which since 2010 was
only exceeded in October 2021. The Panamax, Ultramax, Supramax and Handysize indices rallied to levels
which since 2010 was exceeded only during most of 2021 and early 2022. Fundamentals maintain bullish
and can support a positive outlook for 2024 which as always are subject to revisions.

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
conflicts between Russia and Ukraine and Israel and Hamas, 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 for reasons including but not limited to reductions in canal capacities and
geopolitical conflicts and military responses;

international sanctions, embargoes, import and export restrictions, nationalizations, piracy, and
terrorist attacks;

•

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

economic slowdowns caused by public health pandemics.

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 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.

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.

In addition, the conflict between Israel and Hamas, which began in October 2023, has resulted in an
increased number of vessel attacks in the Red Sea. Various shipping companies and/or commercial
managers have indicated that their vessels would avoid crossing the Red Sea and consequently the Suez
Canal, and for the time being divert vessels around southern Africa’s Cape of Good Hope, which
occasionally adds substantial time and cost to East-West voyages. While we are unable to ascertain the
immediate impact of this conflict, any further attacks or piracy attempts, or continued diversion of vessels
from the Suez Canal, may affect our business, financial condition, and results of operations.

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.

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, 2023, we had total outstanding indebtedness of $517.0 million under
our various credit facilities and bond and a further $133.3 million of finance liabilities.

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. The growth of China’s economy has slowed during 2023. A continued economic
slowdown in China or the Asia Pacific region or in 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, inflationary pressures 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 2023, the BDI ranged from
a low of 530 to a high of 3,346 and closed at 1,714 on April 2, 2024. 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.

The previous year worldwide economies 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 was 6.5% in December 2022, driven in large part by increases in
energy costs. In December 2023, the U.S. consumer price index dropped to 3.4% and it remains to be
seen whether inflationary pressures will increase again and to what degree. 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.

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.

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, economic sanctions restrictions.

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, and in the Red Sea in connection with
the conflict between Israel and Hamas. 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
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.

While Ukraine continued to deploy a number of counter-attacks in 2023 and as of December 2023 held
important areas in ground operations, after over two years of fighting Russia still maintains a foothold in a
number of key cities and areas. 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. 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, including as a result of the current conflict between Israel and Hamas.

Outbreaks of epidemic and pandemic diseases and governmental responses thereto could
adversely affect our business.

Our operations are subject to risks related to pandemics, epidemics or other infectious disease outbreaks
and government responses thereto. COVID-19, which was initially declared a pandemic by the World
Health Organization on March 11, 2020 and was declared no longer a global health emergency on May 5,
2023, negatively affected economic conditions, supply chains, labor markets, and demand for certain
shipped goods both regionally and globally as a result of government efforts to combat the pandemic,
including the enactment or imposition of travel bans, quarantines and other emergency public health
measures.

The extent to which our business, the global economy and dry bulk transportation industry may be
negatively affected by future pandemics, epidemics or other outbreaks of infectious diseases is highly
uncertain and will depend on numerous evolving factors that we cannot predict, including, but not limited
to (i) the duration and severity of the infectious disease outbreak; (ii) the imposition of restrictive measures

to combat the outbreak and slow disease transmission; (iii) the introduction of financial support measures
to reduce the impact of the outbreak on the economy; (iv) volatility in the demand for and price of oil and
gas; (v) shortages or reductions in the supply of essential goods, services or labor; and (vi) fluctuations in
general economic or financial conditions tied to the outbreak, such as a sharp increase in interest rates or
reduction in the availability of credit. We cannot predict the effect that an outbreak of a new COVID-19
variant or strain, or any future infectious disease outbreak, pandemic or epidemic may have on our
business, results of operations and financial condition, which could be material and adverse.

Our operating results may be affected by seasonal fluctuations.

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.

In addition, if the recent sharp increase in crude oil prices and widening of the spread between the prices
of high sulfur fuel and low sulfur fuel resulting from conflict between Russia and Ukraine and Israel and
Hamas continues, this might lead to a decrease in the economic viability of older vessels that lack fuel
efficiency and a reduction of useful lives of these vessels.

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
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,
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 2023 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 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 cases, control
the operation of our vessels, we have monitoring processes in place 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 different 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
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, 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 2023 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
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.

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, 2023, 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.

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.
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, our risk of cyber-attacks and other sources of security breaches and incidents may be elevated
as a result of the ongoing conflicts between Russia and Ukraine. and the Israel-Hamas conflict. 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.

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.

Further, in July 2023, the SEC adopted amendments to its rules on cybersecurity risk management,
strategy, governance, and incident disclosure. The amendments, require us to report material cybersecurity
incidents involving our information systems and periodic reporting regarding our policies and procedures
to identify and manage cybersecurity risks, amongst other disclosures.

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. In July 2023, nations at the
International Maritime Organization’s Marine Environment Protection Committee (“MEPC”) 80 updated the
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 20% by 2030, compared to
2008 emission levels; and (3) reducing the total annual greenhouse emissions by at least 70% by 2040
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.

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. 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. On March 6, 2024, the SEC adopted final rules to
require registrants to disclose certain climate-related information in SEC filings of all public companies. The
final rules require companies to disclose, among other things: material climate-related risks; activities to
mitigate or adapt to such risks; information about the registrant's board of directors' oversight of climate-
related risks and management’s role in managing material climate-related risks; and information on any
climate-related targets or goals that are material to the registrant's business, results of operations, or
financial condition. Further, to facilitate investors' assessment of certain climate-related risks, the final rules
require disclosure of Scope 1 and/or Scope 2 greenhouse gas (GHG) emissions on a phased-in basis
when those emissions are material; the filing of an attestation report covering the required disclosure of
such registrants’ Scope 1 and/or Scope 2 emissions, also on a phased-in basis; and disclosure of the
financial statement effects of severe weather events and other natural conditions including, for example,

costs and losses. The final rules include a phased-in compliance period for all registrants, with the
compliance date dependent on the registrant’s filer status and the content of the disclosure. However, on
March 15, 2024, the U.S. Court of Appeals for the Fifth Circuit granted an administrative stay on the SEC's
recent climate disclosure rule.

We may face increasing pressures from investors, future 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
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
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 of which 39 vessels in
operation, owned and chartered-in, and two under construction and we have agreed to sell one of our
vessels. 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, 2023, we had $517.0 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:

•

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.

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
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.

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 of which 39 in operation, owned and
chartered-in, having a combined carrying capacity of 4.4 million dead weight tons, or dwt, and a weighted
average age of 10.4 years and two Kamsarmax vessels under construction. 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.

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
2023, 2022, and 2021, approximately 13%, 34% and 10%, respectively, of our revenues were derived from
one, two and one 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.

Certain of our vessels are owned through joint ventures that we have entered into, and our views
about the operations of those vessels may differ from our joint venture partners and adversely
affect our interest in the joint ventures.

We have entered into two joint venture arrangements pursuant to which we own minority interests in four
CSOV newbuilding contracts through Windward Offshore GmbH & Co. KG and one dry bulk vessel through
Bergen Ultra, and we may enter into additional joint venture arrangement in the future. As a minority interest
holder in these joint ventures, we share voting and operational control of these joint ventures and the
operations of these vessel that we own through these joint ventures. Our joint venture partners may have
interests that are different from ours which may result in conflicting views as to the operation the vessels
owned by the joint ventures or the conduct of the business of the joint venture. We may not be able to
resolve such conflicts in our favor and such conflicts or differing view could have a material adverse effect
on our interest in the joint venture or our business in general.

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
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 2023 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 2023
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
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.

Changes in tax laws and unanticipated tax liabilities could materially and adversely affect the taxes
we pay, results of operations and financial results.

We are subject to income and other taxes in the United States and foreign jurisdictions, and our results of
operations and financial results may be affected by tax and other initiatives around the world. For instance,
there is a high level of uncertainty in today’s tax environment stemming from global initiatives put forth by
the Organisation for Economic Co-operation and Development’s (“OECD”) two-pillar base erosion and
profit shifting project. In October 2021, members of the OECD put forth two proposals: (i) Pillar One
reallocates profit to the market jurisdictions where sales arise versus physical presence; and (ii) Pillar Two
compels multinational corporations with €750 million or more in annual revenue to pay a global minimum
tax of 15% on income received in each country in which they operate. The reforms aim to level the playing

field between countries by discouraging them from reducing their corporate income taxes to attract foreign
business investment. Over 140 countries agreed to enact the two-pillar solution to address the challenges
arising from the digitalization of the economy and, in 2024, these guidelines were declared effective and
must now be enacted by those OECD member countries. It is possible that these guidelines, including the
global minimum corporate tax rate measure of 15%, could increase the burden and costs of our tax
compliance, the amount of taxes we incur in those jurisdictions and our global effective tax rate, which
could have a material adverse impact on our results of operations and financial results.

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 2021, our board of directors elected to declare quarterly dividends from
the fourth quarter of 2021 until the first quarter of 2024 and two special non-cash dividends. 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 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 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;

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 var ious 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.

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”.
Effective as of October 17, 2023 the Marshall Islands has been designated as a cooperating jurisdiction
for tax purposes. If the Marshall Islands is added to the list of non-cooperative jurisdictions in the future
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.

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 23,750,097 shares, or approximately 19.8% 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 200,000 votes, on all matters submitted to a vote of the stockholders of the Company,
provided however, that to the extent the total number of votes one or more holders of Series D Preferred
Stock is entitled to vote (including any voting power of such holders derived from Series D Preferred Stock,
shares of Common Stock or any other voting security of the Company issued and outstanding as of the
date hereof or that may be issued in the future) on any matter submitted to a vote of stockholders of the
Company would exceed 36% of the total number of votes eligible to be cast on such matter, the total
number of votes that holders of Series D Preferred Stock may exercise derived from the Series D Preferred
Stock together with Common Shares and any other voting securities of the Company beneficially owned
by such holder, shall be reduced to 36% of the total number of votes entitled to vote on any matter put to
stockholders 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 1,000,000,000 shares of
common stock, of which, as of December 31, 2023, 113,065,725 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.

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

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 50,000,000 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
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.

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.

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.

Risks Relating to Our Outstanding Warrants

The issuance of our common stock upon the exercise of the Warrants may depress our stock price.

We could issue up to 33,919,605 shares of common stock in connection with the exercise of the Warrants.
The issuances of the shares of common stock upon exercise of the Warrants and the resale of such shares
after their issuance, or the perception that such sales could occur, could result in downward pressure on
our stock price and could impact our ability to raise capital through the sale of additional shares in the
future. See “Item 4. Information on the Company— A. History and development of the Company— Warrant
Distribution" for a more detailed discussion of our Warrants.

Item 4.

Information on the Company

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.

Recent Developments

Vessel acquisitions

In January 2023, we took delivery of DSI Aquarius, a 2016 built Ultramax dry bulk vessel of 60,309 dwt, for
a purchase price of $24.0 million in cash and 2,033,613 newly issued common shares. The vessel is one
of nine modern Ultramax dry bulk vessels that we entered into an agreement to purchase in August 2022.

In February 2024, we signed shipbuilding contracts for two 81,200 dwt methanol dual fuel new-building
Kamsarmax dry bulk vessels, for a purchase price of $46 million each, to be built at Tsuneishi Group
(Zhoushan) Shipbuilding Inc., China. The vessels are expected to be delivered to the Company by the
second half of 2027 and the first half of 2028, respectively.

Vessel disposals

In January 2023, we agreed to sell to an unrelated third party the vessel Aliki for $15.08 million. The vessel
was delivered to her new owners on February 8, 2023.

In February 2023, we agreed to sell to OceanPal, a related party, the vessel Melia for $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.

In October 2023, we agreed to sell to an unrelated third party the vessel Boston for $18.0 million. The
vessel was delivered to her new owners on December 6, 2023.

In January 2024, we agreed to sell to an unrelated third party the vessel Artemis for the purchase price of
$13.0 million. The vessel was delivered to her new owners on March 5, 2024.

In February 2024, we agreed to sell to an unrelated third party, the vessel Houston, for $23.3 million. The
vessel is expected to be delivered to the buyer latest by September 16, 2024.

Please read Note 6 – Advances for vessel acquisitions and Vessels, net of 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, 2023.

Other transactions

In February 2023, we signed a Memorandum of Agreement to acquire from an unaffiliated third-party an
Ultramax dry bulk vessel for a purchase price of $27.9 million. On April 28, 2023, the vessel’s ship owning
company was deconsolidated from the Company’s financial statements due to the Company’s loss of
control. Upon the deconsolidation, we retained 25% of the the total partnership interests.

In November 2023, we entered into a joint venture agreement, with two unrelated companies to form
Windward Offshore GmbH & Co. KG, or Windward, for the purpose of establishing and operating an
offshore wind vessel company. We agreed to contribute Euro 25.0 million, being 45.45% of Windward’s
capital, to construct two CSOVs. In January 2024, we committed to increase our contribution to the
partnership to Euro 50.0 million, being 45.87% of Windward’s capital in order for the partnership to place
orders for two additional CSOVs.

Dividends

On March 20, 2023, we paid a cash dividend on our common stock of $0.15 per share, or $16 million, to
all shareholders of record as of March 13, 2023 and on June 9, 2023, we distributed our Series D Preferred
Shares of OceanPal to our shareholders of record as of April 24, 2023.

On July 10, 2023, we distributed a dividend of $0.15 per share to our shareholders of record as of June
12, 2023, and paid $12.4 million in cash to shareholders who elected to receive cash and distributed
965,044 newly issued common shares to shareholders who elected to receive shares.

On September 8, 2023, we distributed a dividend of $0.15 per share to our shareholders of record as of
August 14, 2023, and paid $13.0 million in cash to shareholders who elected to receive cash and distributed
831,672 newly issued common shares to shareholders who elected to receive shares.

On December 4, 2023, we distributed a dividend of $0.15 per share to all shareholders of record as of
November 27, 2023, in the form of common stock and distributed 4,831,777 newly issued common shares.

On March 12, 2024, we paid a cash dividend of $0.075 per share, or $9.0 million, to all shareholders of
record as of March 5, 2024.

Please read Note 11 – Capital Stock and Changes in Capital Accounts and Note 17 – Subsequent events
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, 2023.

Loans

In February 2023, we early prepaid $8.1 million of outstanding debt due to the sale of Melia to OceanPal
and Aliki to an unaffiliated third party.

On March 14, 2023, we early prepaid $11.8 million, being the outstanding balance of our loan with DNB
Bank ASA.

In April 2023, both loans held with BNP were refinanced through a new $100 million loan facility with Danish
Ship Finance and the outstanding balance of both loans, amounting to $75.2 million was prepaid in full.

On June 26, 2023, we prepaid in full both loans held with ABN Bank amounting to $68.7 million, which
were refinanced under a new loan agreement with DNB Bank ASA of $100.0 million, drawn on June 27,
2023. As part of the loan agreement, we entered into an interest rate swap with DNB for a notional amount
of $30.0 million, being 30% of the loan amount under which we pay a fixed rate and receive floating under
term SOFR.

On June 27, 2023, we drew down $22.5 million and prepaid in full the outstanding balance of our loan with
Nordea Bank of $20.9 million.

On June 29, 2023, we repurchased $5.9 million nominal value of the $125.0 million senior unsecured bond
issued in June 2021 with maturity in June 2026.

A full description of the Company’s loan facilities as of December 31, 2023 is included in Item 5 Operating
and Financial Review and Prospects and Note 8 of our consolidated financial statements and Notes
thereto, included elsewhere in this Annual Report.

Warrant Distribution

On December 14, 2023, we issued warrants to purchase common shares (the “Warrants”) to the holders
of record of Common Stock as of the close of business on December 6, 2023 (the “Record Date”) on the
terms and conditions described in the Warrant Agreement (as defined below and attached as exhibit 2.10
to this annual report). Each holder received one Warrant for every five shares of issued and outstanding
shares of common stock held as of the Record Date (rounded down to the nearest whole number for any
fractional Warrant). Each Warrant entitles the holder to purchase, at the holder’s sole and exclusive
election, at the exercise price, one share of common stock plus, to the extent, described below, the Bonus
Share Fraction. A Bonus Share Fraction entitles a holder to receive an additional 0.5 of a share of common
stock for each Warrant exercised (the “Bonus Share Fraction”) without payment of any additional exercise
price. Since the dividend ex-Date on March 4, 2024, the Bonus Share Fraction was adjusted to 0.51292 of
a share of common stock for each Warrant exercised.

The right to receive the Bonus Share Fraction will expire at 5:00 p.m. New York City time (the “Bonus Share
Expiration Date”) upon the earlier of (i) the date specified by the Registrant upon not less than 20 business
days’ notice and (ii) the first business day following the last day of the first 30 consecutive trading day
period in which the daily VWAP of the shares of common stock has been at least equal to the then

applicable trigger price for at least 20 trading days (whether or not consecutive) (the “Bonus Price
Condition”). Any Warrant exercised with an exercise date after the Bonus Share Expiration Date will not be
entitled to any Bonus Share Fraction. The Company will make a public announcement of the Bonus Share
Expiration Date (i) at least 20 business days prior to such date, in the case of the Company setting a Bonus
Share Expiration Date and (ii) prior to market open on the Bonus Share Expiration Date in the case of a
Bonus Price Condition.

Unless earlier redeemed, the Warrants will expire and cease to be exercisable at 5:00 p.m. New York City
time on December 14, 2026 (the “Expiration Date”).

In connection with the Warrant distribution, we filed a prospectus supplement, dated December 14, 2023,
pursuant to our existing shelf registration statement on Form F-3 declared effective on July 9, 2021,
registering up to 33,919,605 shares of common stock to be issued upon exercise of the Warrants under
the Securities Act of 1933, as amended.

The Warrants commenced trading on the New York Stock Exchange under the ticker “DSX WS” on
December 14, 2023.

As of the date of this annual report, out of the 22,613,070 Warrants distributed in this transaction, 3,051,471
Warrants have been exercised and 4,597,192 common shares have been issued.

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 consisted of 41 vessels of which 39 in operation, owned and chartered-
in, having a combined carrying capacity of 4.4 million dead weight tons, or dwt, and a weighted average
age of 10.4 years and two Kamsarmax vessels under construction.

As of December 31, 2023, we had a fleet of 40 dry bulk carriers, owned and chartered-in, consisting of nine
Ultramax, seven Panamax, six Kamsarmax, five Post-Panamax, nine Capesize and four Newcastlemax
vessels, having a combined carrying capacity of approximately 4.5 million dwt and a weighted average age
of 10.5 years.

As of December 31, 2022, we had a fleet of 42 dry bulk carriers, consisting of eight Ultramax, eight
Panamax, six Kamsarmax, five Post-Panamax, eleven Capesize and four 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.

During 2023, 2022 and 2021, we had a fleet utilization of 99.7%, 98.9% and 99.1%, respectively, our
vessels achieved daily time charter equivalent rates of $16,713, $22,735 and $15,759, respectively, and
we generated revenues of $262.1 million, $290.0 million and $214.2 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 CEO Mrs.
Semiramis Paliou, 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 February 23, 2024.

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 April 3, 2024)

VESSEL

BUILT DWT

SISTER
SHIPS*

GROSS
RATE (USD
PER DAY)

COM**

CHARTERERS

DELIVERY DATE
TO
CHARTERERS***

REDELIVERY DATE TO
OWNERS****

NOTES

1 DSI Phoenix

2017 60,456

2 DSI Pollux

2015 60,446

3 DSI Pyxis

2018 60,362

4 DSI Polaris

2018 60,404

5 DSI Pegasus

2015 60,508

6 DSI Aquarius

2016 60,309

7 DSI Aquila

2015 60,309

8 DSI Altair

2016 60,309

9 Ultramax Bulk Carriers

13,250

5.00% ASL Bulk Marine Limited

4/Nov/22

15/Apr/2024 - 4/May/2024

14,000

4.75%

Cargill Ocean
Transportation
(Singapore) Pte. Ltd.

28/Dec/23

20/Aug/2025 - 20/Oct/2025

14,250

5.00%

ASL Bulk Marine Limited

24/Sep/23

10/Oct/2024 - 10/Dec/2024

13,100

5.00%

ASL Bulk Marine Limited

12/Nov/22

12/May/2024 - 12/Jul/2024

14,000

5.00% Reachy Shipping (SGP)

7/Dec/22

15/Jul/2024 - 15/Sep/2024

Pte. Ltd.

14,200

5.00%

Engelhart CTP Freight
(Switzerland) SA

1/Feb/23

18/Jan/2024

14,500

5.00%

Stone Shipping Ltd

18/Jan/24

1/Dec/2024 - 1/Feb/2025

12,500

5.00% Western Bulk Carriers

11/Nov/23

10/Nov/2024 - 10/Jan/2025

13,800

5.00% Western Bulk Carriers

23/Jun/23

10/Aug/2024 - 10/Oct/2024

9 DSI Andromeda

2016 60,309

10 ARTEMIS

2006 76,942

11 LETO

2010 81,297

12 SELINA

2010 75,700

13 MAERA

2013 75,403

14 ISMENE

2013 77,901

15 CRYSTALIA

2014 77,525

16 ATALANDI

2014 77,529

17 MAIA

2009 82,193

18 MYRSINI

2010 82,117

19 MEDUSA

2010 82,194

20 MYRTO

2013 82,131

21 ASTARTE

2013 81,513

22 LEONIDAS P. C.

2011 82,165

23 ALCMENE

2010 93,193

24 AMPHITRITE

2012 98,697

25 POLYMNIA

2012 98,704

26 ELECTRA

2013 87,150

13,500

5.00% Bunge SA, Geneva

27/Nov/23

20/Feb/2025 - 20/Apr/2025

2, 3

6 Panamax Bulk Carriers

12,000

5.00% Jera Global Markets Pte.

14/Oct/23

23/Feb/2024

14,500

4.75%

12,000

4.75%

12,000

4.75%

13,750

5.00%

12,650

5.00%

11,250

5.00%

Ltd.

Cargill International
S.A., Geneva

ST Shipping and
Transport Pte. Ltd.

Paralos Shipping Pte.,
Ltd.

Reachy Shipping (SGP)
Pte. Ltd.

29/Jan/23

5/Apr/2024 - 30/Apr/2024

20/May/23

15/Sep/2024 - 15/Nov/2024

16/Dec/22

29/Jan/2024

29/Jan/24

20/Nov/2024 - 20/Jan/2025

13/Sep/23

15/Apr/2025 - 30/Jun/2025

6/Sep/23

05/Apr/2024 - 15/Apr/2024

13,900

5.00%

Louis Dreyfus Company
Freight Asia Pte. Ltd.

13,250

4.75%

Aquavita International
S.A.

15/Feb/23

10/Apr/2024 - 5/May/2024

6 Kamsarmax Bulk Carriers

13,500

5.00%

ST Shipping and
Transport Pte. Ltd.

23/Sep/23

15/Jun/2024 - 20/Aug/2024

15,000

5.00%

Salanc Pte. Ltd.

22/Nov/22

20/Apr/2024 - 28/Jun/2024

14,250

5.00%

12,650

5.00%

ASL Bulk Shipping
Limited

Cobelfret S.A.,
Luxemburg

14/May/23

10/Feb/2025 - 15/Apr/2025

15/Jul/23

1/Nov/2024 - 15/Jan/2025

15,000

5.00% Reachy Shipping (SGP)

29/Apr/23

1/Aug/2024 - 1/Oct/2024

17,000

4.75%

17,000

5.00%

Pte. Ltd.

Cargill International
S.A., Geneva

Ming Wah International
Shipping Company
Limited

17/Mar/23

22/Feb/2024

22/Feb/24

20/Aug/2025 - 20/Oct/2025

5 Post-Panamax Bulk Carriers

13,000

5.00%

16,000

5.00%

14,250

15,000

5.00%

15,000

5.00%

14,500

5.00%

2/Jan/23

23/Mar/2024

24/Mar/24

13/May/2024-18/May/2024

9/Nov/22

13/Jan/2024

13/Jan/24

15/Nov/2024 - 15/Jan/2025

14/Jan/23

15/Apr/2024 - 31/May/2024

13/Apr/23

1/Jun/2024 - 1/Aug/2024

SwissMarine Pte. Ltd.,
Singapore
Triangle Merchant
Maritime Co., Limited

Cobelfret S.A.,
Luxembourg

Cobelfret S.A.,
Luxemburg

27 PHAIDRA

2013 87,146

28 SEMIRIO

2007 174,261

29 HOUSTON

2009 177,729

30 NEW YORK

2010 177,773

31 SEATTLE

2011 179,362

32 P. S. PALIOS

2013 179,134

33 G. P. ZAFIRAKIS

2014 179,492

34 SANTA BARBARA

2015 179,426

35 NEW ORLEANS

2015 180,960

36 FLORIDA

2022 182,063

37 LOS ANGELES

2012 206,104

38 PHILADELPHIA

2012 206,040

39 SAN FRANCISCO

2017 208,006

40 NEWPORT NEWS

2017 208,021

12,250

4.75%

Aquavita International
S.A.

9/May/23

1/Sep/2024 - 15/Nov/2024

9 Capesize Bulk Carriers

14,150

5.00% Solebay Shipping Cape
Company Limited, Hong
Kong

18/Aug/23

20/Nov/2024 - 30/Jan/2025

13,000

5.00% EGPN Bulk Carrier Co.,

21/Nov/22

1/Jul/2024 - 31/Aug/2024

Limited

16,000

5.00%

SwissMarine Pte. Ltd.,
Singapore

17,500

5.00% Solebay Shipping Cape
Company Limited, Hong
Kong

11/Jun/23

1/Oct/2024 - 7/Dec/2024

1/Oct/23

15/Jul/2025 - 30/Sep/2025

31,000

5.00%

Classic Maritime Inc.

11/Jun/22

15/Apr/2024 - 30/Jun/2024

17,000

5.00% Solebay Shipping Cape
Company Limited, Hong
Kong

21,250

5.00%

Smart Gain Shipping
Co., Limited

12/Jan/23

15/Jun/2024 - 15/Aug/2024

7/May/23

10/Oct/2024 - 10/Dec/2024

20,000

5.00% Kawasaki Kisen Kaisha,

7/Dec/23

15/Aug/2025 - 31/Oct/2025

12, 13

Ltd.

25,900

5.00%

Bunge S.A., Geneva

29/Mar/22

29/Jan/2027 - 29/May/2027

17,700

4 Newcastlemax Bulk Carriers
5.00% Nippon Yusen Kabushiki

15/Jan/23

20/May/2024 - 5/Aug/2024

26,000

5.00%

Kaisha, Tokyo

C Transport Maritime
Ltd., Bermuda

22,500

5.00%

Nippon Yusen Kabushiki
Kaisha, Tokyo

22,000

5.00%

SwissMarine Pte. Ltd.,
Singapore

12/Apr/22

04/Feb/2024

4/Feb/24

20/Apr/2025 - 20/Jul/2025

18/Feb/23

5/Jan/2025 - 5/Mar/2025

20,000

5.00% Nippon Yusen Kabushiki

20/Sep/23

10/Mar/2025 - 10/Jun/2025

Kaisha, Tokyo

* 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.

1Based on latest information.

2The fixture includes the option for redelivery of vessel east of Suez against a gross ballast bonus of US$250,000.

3Bareboat chartered-in for a period of ten years.

4Vessel has been sold and delivered to her new Owners on March 5, 2024.

5Charterers will compensate the Owners at a rate of 105% of the Baltic Panamax Index 5 TC average as published by the Baltic
Exchange on a daily basis or the vessel’s present charter party rate, whichever is higher, for the excess period commencing from
December 29, 2023 until the actual redelivery date.

6Vessel will be delivered to the new Charterers during the second quarter of 2024.

7Vessel off hire for 6.83 days.

8Redelivery date based on an estimated time charter trip duration of about 50-55 days.

9The charter rate will be US$12,250 per day for the first 30 days of the charter period.

10The charter rate was US$10,000 per day for the first 30 days of the charter period.

11Vessel has been sold and it is expected to be delivered to her new Owners by latest September 16, 2024.

12Bareboat chartered-in for a period of eight years.

13Vessel off hire for 3.65 days.

Our Customers

Our customers include regional and international companies, mainly with concentrations below 10% of our
gross revenues. During 2023, only one of our charterers accounted for 13% of our revenues. During 2022,
two of our charterers accounted for 34% of our revenues, in aggregate, and during 2021, one of our
charterers accounted for 10% of our revenues.

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 2023, 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, is 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.
In 2023, the BDI ranged from a low of 530 to a high of 3,346 and closed at 1,714 on April 2, 2024.

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.

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 and 28 years
in 2021.

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 2023 generally were lower as compared to 2022. Consistent with these trends
were the market values of our dry bulk carriers. As charter rates and vessel values partially decreased
during 2023, 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.

• 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
2023 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.

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 relates to oil leakage or
spilling; 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
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. In July 2023, MEPC 80 announced three
new ECA proposals, including the Canadian Arctic waters and the North-East Atlantic Ocean. 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.

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. In July 2023, MEPC
80 announced three new ECA proposals, including the Canadian Arctic waters and the North-East Atlantic
Ocean. The amendments will enter into force on May 1, 2024. In July 2023, MEPC 80 approved the plan
for reviewing CII regulations and guidelines, which must be completed at the latest by January 1, 2026.
There will be no immediate changes to the CII framework, including correction factors and voyage
adjustments, before the review is completed.

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.

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
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.

In June 2022, SOLAS also set out new amendments that took effect on January 1, 2024, which include
new requirements for: (1) the design for safe mooring operations, (2) the Global Maritime Distress and
Safety System (“GMDSS”), (3) watertight integrity, (4) watertight doors on cargo ships, (5) fault-isolation of
fire detection systems, (6) life-saving appliances, and (7) safety of ships using LNG as fuel. These new
requirements may impact the cost of our operations.

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. In July 2023,
MEPC 80 approved a plan for a comprehensive review of the BWM Convention. over the next three years
and the corresponding development of a package of amendments to the Convention. MEPC 80 also
adopted further amendments relating to Appendix II of the BWM Convention concerning the form of the
Ballast Water Record Book, which are expected to enter into force in February 2025. A protocol for ballast
water compliance monitoring devices and unified interpretation of the form of the BWM Convention
certificate were also adopted.

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.

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. Vessels of 24 meters in length or more but less than 400 gross
tonnage engaged in international voyages will have to carry a Declaration on Anti-fouling Systems signed
by the owner or authorized agent.

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
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
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. After being blocked by the
courts, in September 2023, the Biden administration announced a scaled back offshore oil drilling plan,
including just three oil lease sales in the Gulf of Mexico. 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
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”), thereby
expanding federal authority under the CWA. Following litigation on the revised WOTUS rule, in December
2018, the EPA and Department of the Army proposed a revised, limited definition of 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. . In January 2023,
the revised WOTUS rule was codified in place of the vacated NWPR. On May 25, 2023, the United States
Supreme Court ruled in the case Sackett v. EPA that only wetlands and permanent bodies of water with a
"continuous surface connection" to "traditional interstate navigable waters" are covered by the CWA, further
narrowing the application of the WOTUS rule. On August 2023, the EPA and the Department of the Army
issued the final WOTUS rule, effective September 8, 2023, that largely reinstated the pre-2015 definition
and applied the Sackett ruling.

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.

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”) as
part of its “Fit-for-55” legislation to reduce net greenhouse gas emissions by at least 55% by 2030. 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 equivalent to a portion of their carbon
emissions: 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. General cargo vessels and off-
shore vessels between 400-5,000 gross tonnage will be included in the MRV regulation from 2025 and
their inclusion in EU ETS will be reviewed in 2026. Furthermore, starting from January 1, 2026, the ETS
regulations will expand to include emissions of two additional greenhouse gases: nitrous oxide and
methane. Compliance with the Maritime EU ETS will result in additional compliance and administration
costs to properly incorporate the provisions of the Directive into our business routines. Additional EU
regulations which are part of the EU’s "Fit-for-55," could also affect our financial position in terms of
compliance and administration costs when they take effect.

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 3rd 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.

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, which the U.S. officially rejoined on February 19, 2021.

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. At MEPC 77, the Member States agreed to initiate the revision of
the Initial IMO Strategy on Reduction of GHG emissions from ships, recognizing the need to strengthen
the ambition during the revision process. In July 2023, MEPC 80 adopted a revised strategy, which includes
an enhanced common ambition to reach net-zero greenhouse gas emissions from international shipping
around or close to 2050, a commitment to ensure an uptake of alternative zero and near-zero greenhouse
gas fuels by 2030, as well as i). reducing the total annual greenhouse gas emissions from international
shipping by at least 20%, striving for 30%, by 2030, compared to 2008; and ii). reducing the total annual
greenhouse gas emissions from international shipping by at least 70%, striving for 80%, by 2040, compared
to 2008.

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. Under the European Climate Law, the EU committed to reduce its net greenhouse gas
emissions by at least 55% by 2030 through its “Fit-for-55” legislation package. As part of this initiative,
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.

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
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,
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.

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.

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. On July 6, 2023, the Company purchased the remaining 1/3 from Alpha Sigma
Shipping Corp, a related party company, for the purchase price of $1.2 million and became its sole owner.
In 2024, we purchased two additional plots of land from unrelated third parties for an aggregate amount of
approximately $1.9 million. All plots of land are 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)

(2)

(3)

(4)

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.

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.

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.

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:

Fleet Data:
Average number of vessels (1)
Number of vessels at year-end
Weighted average age of vessels at year-end (in years)
Ownership days (2)
Available days (3)
Operating days (4)
Fleet utilization (5)

As of and for the
Year Ended December 31,
2022

2023

2021

41.1
40.0
10.5
14,986
14,867
14,824
99.7%

35.4
42.0
10.2
12,924
12,449
12,306
98.9%

36.6
33.0
10.4
13,359
13,239
13,116
99.1%

Average Daily Results:
Time charter equivalent (TCE) rate (6)
Daily vessel operating expenses (7)

16,713 $
5,704

22,735 $
5,574

15,759
5,596

The following table reflects the calculation of our TCE rates for the periods presented:

Time charter revenues

Less: voyage expenses

Time charter equivalent revenues

Available days

Time charter equivalent (TCE) rate

Time Charter Revenues

Year Ended December 31,
2022

2021

2023

(in thousands of U.S. dollars, except for TCE rates, which
are expressed in U.S. dollars, and available days)

262,098 $

289,972 $

214,203

(13,621)

(6,942)

(5,570)

248,477 $

283,030 $

208,633

14,867

16,713 $

12,449

22,735 $

13,239

15,759

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.

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 2023 decreased compared to previous years, due to the significant
decrease in charter rates, despite the increase in the size of our fleet, evident in the increase of the average
number of vessels. In 2024, the average number of vessels will decrease, as currently our fleet consists of
41 vessels of which 39 vessels in operation, owned and chartered-in, and two under construction, and we
have agreed to sell one of our vessels. As a result, although we have observed that the time charter rates
have increased since the beginning of 2024, we expect our revenues in 2024 to decrease compared to
2023.

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 2024,
we expect our voyage expenses to decrease compared to 2023, 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 increased since 2021 due to the increase in ownership days. For 2024, we expect
our operating expenses to decrease compared to 2023, as a result of the average decrease of the size of
the fleet compared to 2023.

Vessel Depreciation

The cost of our vessels is depreciated on a straight-line basis over the estimated useful life of each vessel.
Depreciation is based on the cost of the vessel less its estimated salvage value. We estimate the useful
life of our dry bulk vessels to be 25 years from the date of initial delivery from the shipyard, which we believe
is common in the dry bulk shipping industry. Furthermore, we estimate the salvage values of our vessels

based on historical average prices of the cost of the light-weight ton of vessels being scrapped. Effective
July 1, 2023, the Company changed its estimated scrap rate of its vessels from $250 per lightweight ton to
$400 per lightweight ton, calculated based on the average demolition prices in different markets, during the
last 15 years. During 2022, we took delivery of ten vessels and sold one and in 2023, we took delivery of
one vessel and sold three. Following these transactions vessel depreciation has increased since 2021. For
2024, we expect depreciation expense to decrease due to the increase of the scrap rate in 2023 and the
decrease in the number of vessels in our fleet as in 2024 we have sold one vessel and we have agreed to
sell another one.

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 increasing, especially in 2023,
mainly due to payroll costs and donations. For 2024, 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, 2023 our aggregate debt amounted to $517.0 million and
our finance liabilities amounted to $133.3 million. During 2023, we replaced LIBOR, being the reference
rate to calculate interest expense in our loan facilities having a floating rate, with term SOFR through loan
refinancings and one loan modification. Interest rates, which have been increasing since the beginning of
2022, continued to increase in 2023 and in combination with the increased average debt outstanding in
2023, interest costs increased significantly. For 2024, we expect interest and finance costs to remain at the
same levels with 2023, as we do not expect interest rates to increase, while debt outstanding is expected
to decrease.

We manage our exposure in interest rates, by maintaining a mix of financing under agreements with floating
and fixed interest rates. More specifically, during 2022, we refinanced part of our loans having a floating
interest rate, with sale and leaseback transactions with fixed rates. Also, in 2023, we entered into an interest
rate swap for 30% of our $100 million loan facility with DNB, dated June 26, 2023, under which we pay
fixed interest and receive floating. Through these agreements and our bond, also bearing fixed interest
rate, we manage part of our exposure in interest rates caused by the remaining agreements which bear
floating interest rates.

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.

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;

•

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

•

fluctuations in foreign exchange rates.

Results of Operations

Year ended December 31, 2023 compared to the year ended December 31, 2022

Time charter revenues. Time charter revenues decreased by $27.9 million, or 9.6%, to $262.1 million in
2023, compared to $290.0 million in 2022. The decrease in time charter revenues was due to decreased
average time charter rates, which decreased our TCE rate to $16,713 in 2023 from $22,735 in 2022,
representing a 26% decrease. This decrease was partly offset by increased operating days during 2023,
as compared to last year. Operating days in 2023 were 14,824 compared to 12,306 in 2022, mainly
resulting from the acquisition of eight Ultramax vessels in the fourth quarter of 2022 and one more in first
quarter of 2023.

Voyage expenses. Voyage expenses increased by $6.7 million, or 97%, to $13.6 million in 2023 as
compared to $6.9 in 2022. This increase was mainly due to the decreased gain on bunkers amounting to
$0.5 million in 2023 compared to $8.1 million in 2022. 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. This
decrease was partially counterbalanced due to decreased commissions, which is the main part of voyage
expenses, and which in 2023 decreased to $13.3 million compared to $14.4 million in 2022.

Vessel operating expenses. Vessel operating expenses increased by $13.5 million, or 19%, to $85.5 million
in 2023 compared to $72.0 million in 2022. The increase in operating expenses is attributable to the
increase in ownership days in 2023, as a result of the acquisition of eight Ultramax vessels in the fourth
quarter of 2022 and one more in first quarter of 2023. Operating expenses also increased due to increased
crew costs, insurances, spares and other consumables. Total daily operating expenses were $5,704 in
2023 compared to $5,574 in 2022.

Depreciation and amortization of deferred charges. Depreciation and amortization of deferred charges
increased by $6.5 million, or 15%, to $49.8 million in 2023, compared to $43.3 million in 2022. This increase
was due to the acquisition of nine vessels, as noted above. This increase was partially offset due to the
fact that, effective July 1, 2023, the Company changed its estimated scrap rate of its vessels from $250
per lightweight ton to $400 and the sale of vessel Boston in the fourth quarter of 2023. A further decrease
incurred due to decreased amortization of deferred cost as a result of the drydock cost incurred for seven
vessels having drydock surveys in 2023 and twelve in 2022.

General and administrative expenses. General and administrative expenses increased by $3.6 million, or
12%, to $33.0 million in 2023 compared to $29.4 million in 2022. The increase was mainly due to the
increased payroll costs and travelling expenses. A further increase by $0.6 million was attributed to donations.

Management fees to related party. Management fees to a related party increased by $0.8 million, or 160%
to $1.3 million in 2023 compared to $0.5 million in 2022. The increase was attributable to increased average
number of vessels managed by DWM in 2023 compared to 2022, due to the acquisition of three Ultramax
vessels in the fourth quarter of 2022 and one more in first quarter of 2023, whose management was
assigned to DWM.

Gain on sale of vessels. Gain on sale of vessels increased by $2.4 million, or 83%, to $5.3 million which
resulted from the sale of vessels Aliki, Melia and Boston in 2023 compared to $2.9 million in 2022 which
resulted from the sale of Baltimore in 2022.

Insurance recoveries. Insurance recoveries amounted to null balance in 2023, compared to $1.8 million in
2022 which consisted of amounts received from our insurers for claims covered under the insurance policies
during 2022.

Interest expense and finance costs. Interest expense and finance costs increased by $21.9 or 80% to
$49.3 million in 2023 compared to $27.4 million in 2022. The increase was primarily attributable to increased
average outstanding balance of debt and finance liabilities in 2023, resulting from the refinances performed.
A further increase was also derived from increased average interest rates resulting from our loan
agreements, having a variable interest rate. In 2023, the weighted average interest rate of our secured loan
agreements was 7.3% compared to 3.8% in 2022.

Interest and other income. Interest and other income increased by $5.5 million, or 204%, to $8.2 million in
2023 compared to $2.7 million in 2022. The increase is mainly attributable to increased deposit rates in
2023 compared to 2022.

Loss on extinguishment of debt. In 2023, loss on extinguishment of debt increased by $0.3, or 75% to $0.7
million and consisted of the prepayment in full of six loan agreements refinanced by other banks. In 2022,
loss on extinguishment of debt amounted 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 one vessel sold and three
vessels refinanced in sale and leaseback transactions in 2022.

Loss on derivatives. Loss on derivates amounted to $0.4 million in 2023 and represents the fair value of
an interest rate swap dated July 6, 2023 in which the Company entered into with DNB. The notional amount
of the agreement is $30 million and the Company pays a fixed rate of 4.268% and receives floating under
term SOFR.

Gain on related party Investments. Gain on related party Investments amounted to $1.5 million in 2023,
compared to $0.6 million in 2022. On October 17, 2023, the Company realized a gain of $1.7 million which
derived from the conversion of 9,793 of the 10,000 Series C Preferred shares of OceanPal to 3,649,474
common shares of OceanPal, having a fair value of $9.2 million, based on the closing price of OceanPal’s
common shares on the date of conversion. This gain was the difference between the book value of
OceanPal’s Series C Preferred shares and the fair value of the converted common shares and was partially
offset by an unrealized loss of $1.0 million, resulting from the measurement of OceanPal’s common shares
at fair value on December 31, 2023, based on the closing price of the shares on that date. Additionally, the
Company distributed to its shareholders as a noncash dividend, its 13,157 Series D Preferred Shares of
OceanPal, which resulted in gain of $0.8 million. The gain of $0.6 million in 2022 represents the gain
recognized upon the distribution of 25,000 Convertible Series D Preferred Shares of OceanPal Inc. as a
noncash 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 on deconsolidation of subsidiary. Gain on deconsolidation of subsidiary amounted to $0.8 million in
2023 and represents the gain from the Company’s 25% interest in Bergen Ultra measured at fair value on
the date of its deconsolidation from the Company’s financial statements.

Unrealized gain on equity securities. Unrealized gain on equity securities amounted to $2.8 million in 2023
and resulted from the measurement of equity securities, having a book value of $17.9 million, at fair value
of $20.7 million on December 31, 2023, determined through Level 1 of the fair value hierarchy.

Unrealized gain on warrants. Unrealized gain on warrants amounted $1.6 million in 2023, which resulted
from the fair value adjustment as of December 31, 2023 of the value of the 22,613,070 warrants issued on
December 14, 2023.

Gain/(loss) from equity method investments. In 2023, loss from equity method investments, amounted to
$0.3 million, compared to a gain of $0.9 million in 2022 The loss in 2023 is attributed to a loss of $0.7
million from our 45.45% interest in Windward, which was partly offset by a gain of $0.2 million from our
50% interest in DWM, and a gain of $0.2 million from our 25% interest in Bergen. The gain in the prior year
derived from our 50% interest in DWM.

Year ended December 31, 2022 compared to the year ended December 31, 2021

For a discussion of the year ended December 31, 2022 compared to the year ended December 31, 2021,
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, 2022 filed with the SEC on March 27, 2023.

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
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, 2023 and 2022, working capital, which is current assets minus current liabilities,
including the current portion of long-term debt and finance liabilities, amounted to $97.1 million and $9.0
million, respectively. The increase in working capital is mainly due to increased cash and cash equivalents
and our investment in equity securities amounting to $20.7 million, which did not exist in the prior year. In
addition, the Company’s current portion of long-term debt decreased compared to last year as in 2022,
current portion of long-term debt included a balloon of $43.8 million under one of our loan agreements
which was refinanced in 2023.

Cash and cash equivalents, including restricted cash, was $121.6 million as of December 31, 2023 and
$97.4 million as of December 31, 2022. Restricted cash mainly consists of the minimum liquidity
requirements under our loan facilities. As of December 31, 2023 and 2022, restricted cash amounted to
$20.0 million and $21.0 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. As of December 31, 2023, the time deposits above three
months amounted to $40.0 million, compared to $46.5 million as of December 31, 2022. Cash and cash
equivalents are primarily held in U.S. dollars.

Net Cash Provided by Operating Activities

Net cash provided by operating activities decreased by $88.5 million, or 56%. In 2023, net cash provided
by operating activities was $70.4 million compared to net cash provided by operating activities of
$158.9 million in 2022. This decrease in cash from operating activities was mainly attributable to decreased
revenues as a result of decreased average time charter rates compared to 2022. Cash provided by
operating activities was also affected by our investment in equity securities acquired in 2023 for $17.9
million. This decrease was partly offset by decreased dry-docking costs incurred for seven vessels in 2023
compared to twelve vessels in 2022.

Net Cash Used in Investing Activities

Net cash provided by investing activities was $24.9 million for 2023, which consists of $29.7 million paid
for vessel acquisitions and improvements due to new regulations; $36.6 million of proceeds from the sale
of three vessels in 2023; $10.5 million paid to acquire investments in Windward and Cohen; $1.0 million

cash divested from deconsolidation of Bergen Ultra; decreased investment by $6.5 million in time deposits
with maturity above three months;$25.2 million proceeds from convertible loan with limited partnership;
$0.2 million paid to acquire other assets; and $2.0 million relating to the acquisition of equipment.

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 Financing Activities

Net cash used in financing activities was $71.1 million for 2023, which consists of $57.7 million proceeds
from issuance of long term debt and finance liabilities; $79.8 million of indebtedness and finance liabilities
that we repaid; $5.8 million and $41.4 million of cash dividends paid on our preferred and common stock,
respectively; and $1.8 million of finance costs paid in relation to new loan agreements.

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.

For a detailed discussion of cash flows for the year ended December 31, 2022 compared to the year ended
December 31, 2021 please see “Item 5. Operating and Financial Review and Prospects - B. Liquidity and
Capital Resources” included in our 2022 Annual Report filed on Form 20-F with the SEC on March 27,
2023.

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 entered into two agreements for the construction of two 81,200
dwt methanol dual fuel new-building Kamsarmax dry bulk vessels, for $46 million each. The vessels are
expected to be delivered to the Company by the second half of 2027 and the first half of 2028 respectively.
On February 15, 2024, we paid an aggregate amount of $16.1 million, representing 17.5% of the purchase
price of both vessels. Additionally, we have committed to contribute Euro 50 million to Windward for the
construction of four CSOVs, with deliveries scheduled to occur between the third quarter of 2025 and the
fourth quarter of 2026. As of the date of this report, we have paid an aggregate of Euro 24.3 million, or
$26.1 million. We also 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 may also incur capital expenditures for vessel
improvements to meet new regulations. In the next twelve months, we will require capital to fund ongoing
operations, debt service, the payment of our preferred dividends and the payment of our bareboat charters.

As of the date of this annual report, we have contracted revenues covering around 71% of our ownership
days in 2024, in time charter agreements having an average time charter rate in excess of our break-even
rate as of December 31, 2023, and we have also fixed around 12% of our ownerships days in 2025. We
believe that contracted and anticipated revenues will result in internally generated cash flows and together
with available cash and cash equivalents, which as of December 31, 2023 amounted to $101.6 million and
having additional investments in time deposits of $40.0 million which mature in 2024, 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. We may also incur additional debt to finance part of the
construction cost of our methanol vessels on order.

Long-term Debt and Finance Liabilities

As of December 31, 2023, we had $517.0 million of long term debt outstanding under our facilities and
Bond, under the agreements described below.

Secured Term Loans

On January 4, 2017, we drew down $57.24 million, under a secured loan agreement with the Export-Import
Bank of China, dated January 7, 2016, to finance part of the construction cost of San Francisco and
Newport News, both delivered on January 4, 2017. The loan is payable in equal quarterly instalments of
about $1.0 million each, the last of which is payable by January 4, 2032. On July 19, 2023, we amended
the terms of the loan to replace LIBOR with term SOFR and the margin was increased from 2.3% to 2.45%.

On September 30, 2022, we 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 but prepaid $21.9 million in December 2022 due to a vessel sale and
leaseback transaction. The loan is repayable in equal quarterly instalments of an aggregate amount of $3.7
million, and a balloon of $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%.

On April 12, 2023, we entered into a $100 million term loan facility with Danish Ship Finance A/S to
refinance an aggregate of $75.2 million outstanding balance under existing loans with BNP Paribas and
working capital. The loan is repayable in twenty equal consecutive quarterly instalments of $3.3 million
each and a balloon of $34 million payable together with the last instalment on April 19, 2028, and bears
interest at term SOFR plus a margin of 2.2%.

On June 20, 2023, the Company entered into a $22.5 million loan agreement with Nordea to refinance
$20.9 million outstanding balance of an existing loan. The new loan is repayable in equal quarterly
instalments of about $1.1 million and bears interest at term SOFR plus a margin of 2.25%. The loan matures
on June 27, 2028.

On June 26, 2023, we entered into a $100 million loan agreement with DNB Bank ASA, or DNB, to refinance
an aggregate of $68.7 million outstanding balance under existing loans with ABN AMRO Bank N.V, and
for working capital purposes. The loan is repayable in equal quarterly instalments of $3.8 million until
December 27, 2029, and bears term SOFR plus a margin of 2.2%, subject to sustainability margin
adjustment. Additionally, the loan is subject to a margin reset, according to which the borrowers and the
lenders will enter into discussions to agree on a new margin. Unless the parties agree on a new margin,
the loan will be mandatorily repayable on June 27, 2027. As part of the loan agreement, on July 6, 2023,
we entered into an interest rate swap with DNB for a notional amount of $30 million and quarterly
amortization of $1.2 million. Under the interest rate swap, we pay a fixed rate of 4.268% and receive floating
under term SOFR. The swap has a termination date on December 27, 2029, and a mandatory break on
June 27, 2027, which is the margin reset date of the loan, according to which the swap will be terminated
if the loan is prepaid. As of December 31, 2023, the interest rate swap was a liability having a fair value of
$0.4 million.

Under the secured term loans outstanding as of December 31, 2023, 33 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, 2022 and 2023, and the date of this annual report, we were in compliance with all of
our loan covenants.

Senior Unsecured Bond due 2026

On June 22, 2021, the Company 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. Entities affiliated with
executive officers and directors of the Company purchased an aggregate of $21 million principal amount
of the bond. The bond bears interest 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 part 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 nominal value and after December 2025 at a price equal to 100% of nominal value. On
June 29, 2023, we repurchased $5.9 million nominal value of the bond and recognized a loss of $0.2
million. The bond includes financial and other covenants and is trading at Oslo Stock Exchange under the
ticker symbol “DIASH02”.

Finance Liabilities

On March 29, 2022, we entered into a $50 million sale and leaseback agreement with an unaffiliated third
party, for a period of ten years, under which we pay hire, monthly in advance and 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 an aggregate amount of $66.4 million, for a period of eight years, each, under which we
pay hire, monthly in advance, and we have the option to purchase the vessels 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 $13.0 million, each, on the expiration of each lease on the
eighth year.

On December 6, 2022, we entered into a sale and leaseback agreement for $29.9 million with an
unaffiliated third party, for a period of ten years, under which we pay hire, monthly in advance, and 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.

Commitments and Contingencies

On March 30, 2023, we entered into a corporate guarantee with Nordea under which we guaranteed the
performance by Bergen Ultra, an equity method investee owning one dry bulk carrier, of its obligations
under a loan agreement with the bank maturing on March 30, 2028. The Company considers the likelihood
of having to make any payments under the guarantee to be remote, as the loan is also secured by an
account pledge by Bergen, first preferred mortgage on the vessel, a first priority general assignment of the
earnings, insurances and requisition compensation of the vessel, a charter party assignment, a partnership
interests security deed, and a manager’s undertaking. As of December 31, 2023, the loan had an
outstanding balance of $14.8 million.

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.

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 2023, the BDI
ranged from a low of 530 to a high of 3,346 and closed at 1,714 on April 2, 2024. 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 62% of our fleet ownership days in 2024 at rates above our break-even rate. Nevertheless,
our revenues and results of operations in 2024 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.

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
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 2023 to calculate undiscounted projected net operating cash flow was $12,775 for
Panamax, Kamsarmax and Post-Panamax vessels, $16,608 for Ultramax vessels and $16,115 for our
Capesize and Newcastlmax vessels, compared to $12,431, 16,876 and $16,128, respectively in 2022.
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 2023,
according to our assessment, the carrying value plus unamortized deferred cost of vessels for which
impairment indicators existed as of December 31, 2023, was $378.2 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, 2023 and 2022 and (ii) what we
believe the charter-free market value of each of our vessels was as of December 31, 2023 and 2022, the
aggregate carrying value of 12 and 17 of the vessels in our fleet as of December 31, 2023 and 2022,
respectively, exceeded their aggregate charter-free market value by approximately $49 million and $83
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, 2023 and 2022, 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 12 and 17 vessels would be sold at a price that reflects our estimate of their charter-free market
values as of December 31, 2023 and 2022, respectively.

Vessel

1 Alcmene
2 Aliki
3 Amphitrite
4 Artemis
5 Astarte
6 Atalandi
7 Boston
8 Crystalia
9 Electra

10 G.P. Zafirakis
11 Houston
12 Ismene
13 Leto
14 Los Angeles
15 Maera
16 Maia
17 Medusa
18 Melia
19 Myrsini
20 Myrto
21 New Orleans
22 New York
23 Newport News
24 P.S. Palios
25 Phaidra
26 Philadelphia
27 Polymnia
28 San Francisco
29 Santa Barbara
30 Seattle
31 Selina
32 Semirio
33 LEONIDAS P.C.
34 Florida
35 DSI Pyxis
36 DSI Pollux
37 DSI Phoenix
38 DSI Polaris
39 DSI Andromeda
40 DSI Aquila
41 DSI Pegasus
42 DSI Altair
43 DSI Aquarius

Total

Dwt
93,193
180,235
98,697
76,942
81,513
77,529
177,828
77,525
87,150
179,492
177,729
77,901
81,297
206,104
75,403
82,193
82,194
76,225
82,117
82,131
180,960
177,773
208,021
179,134
87,146
206,040
98,704
208,006
179,426
179,362
75,700
174,261
82,165
182,063
60,362
60,446
60,456
60,404
60,309
60,309
60,508
60,309
60,309
4,915,571

Year Built
2010
2005
2012
2006
2013
2014
2007
2014
2013
2014
2009
2013
2010
2012
2013
2009
2010
2005
2010
2013
2015
2010
2017
2013
2013
2012
2012
2017
2015
2011
2010
2007
2011
2022
2018
2015
2017
2018
2016
2015
2015
2016
2016

Carrying Value plus unamortized
deferred cost
(in millions of US dollars)

2023

2022

9.6
-
14.0
11.0
18.0
15.7
-
15.4
14.1
22.1
18.4
11.7
12.9
23.5
11.7
12.4
12.4
-
14.2
17.8
31.6
14.0
40.5
35.3 *
13.5
24.2
14.2
40.6
34.8 *
21.3
9.1
16.1
20.8 *
57.0
35.6 *
29.9 *
32.7 *
36.2 *
31.8 *
29.9 *
28.8 *
31.3 *
31.0 *
915

10.1
13.0
14.7
11.9
19.1
16.4
18.2 *
16.1
14.9
23.0
19.4
10.6
13.7
24.8
12.3
13.4
13.1
10.8
15.1
18.9
33.1 *
14.5
42.4 *
37.4 *
13.0
25.5
15.0
42.5 *
36.4 *
22.6
9.3
17.6 *
21.7 *
59.1 *
36.1 *
31.4 *
34.3 *
36.9 *
33.3 *
31.5 *
30.3 *
32.5 *
-
966

_______________________________
*Indicates dry bulk vessels for which we believe, as of December 31, 2023 and 2022, 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 $49 million and $83 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 11% 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:

Ultramax
Panamax/Kamsarmax/Post-Panamax
Capesize/Newcastlemax

Average estimated daily time
charter equivalent rate used
$16,608
$12,775
$16,115

Average break-even
rate
$12,195
$9,314
$11,721

It should be noted that as of December 31, 2023, twelve 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:

Vessel type

Ultramax
Panamax/Kamsarmax/Post-
Panamax
Capesize/Newcastlemax

1-year
(period)

$15,131

$13,536
$15,623

Impairment
charge
(in USD
million)

-
-

Impairment
charge
(in USD
million)

-
-

Impairment
charge
(in USD
million)

-
-

5-year
(period)

$17,191

$15,652
$17,974

3-year
(period)

$20,740

$18,618
$19,900

Item 6.

Directors, Senior Management and Employees

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
Semiramis Paliou
Simeon Palios
Anastasios Margaronis
Ioannis Zafirakis

Konstantinos Psaltis
Kyriacos Riris
Apostolos Kontoyannis
Konstantinos Fotiadis
Eleftherios Papatrifon
Simon Frank Peter Morecroft
Jane Sih Ho Chao
Maria Dede
Margarita Veniou

Age

Position

49 Class III Director and Chief Executive Officer
82 Class I Director and Chairman
68 Class I Director and President
52 Class I Director, Chief Financial Officer, Chief

Strategy Officer, Treasurer and Secretary

85 Class II Director
74 Class II Director
75 Class III Director
73 Class III Director
54 Class II Director
65 Class II Director
48 Class I Director
51 Chief Accounting Officer
45 Chief Corporate Development, Governance &

Communications Officer

Maria Christina Tsemani

45 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 2026.

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.

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 July 2023, she serves as 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, Bureau
Veritas, American Bureau of Shipping and Hellenic War Risks

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. (ex. Diana
Containerships 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. (ex. Diana Containerships 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
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. (ex. Diana Containerships 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 and
Chief Financial Officer (Interim Chief Financial Officer until February 2021) and Treasurer since February
2020 and he is also the Chief Strategy Officer of the Company. Mr. Zafirakis is also member of the
Executive Committee of the Company. Mr. Zafirakis has held various executive positions such as Chief
Operating Officer, Executive Vice-President and Vice-President. In addition, Mr. Zafirakis is the Chief
Financial Officer of Diana Shipping Services S.A., where he also serves as Director and Treasurer. Also,
he has served as a Director of OceanPal Inc. since April 2021. He has also served as the President,
Secretary and Interim Chief Financial Officer of OceanPal Inc. from November 2021 to April 2023. He is
also member of the Executive Committee of OceanPal Inc.

From June 1997 to February 2005, Mr. Zafirakis was employed by Diana Shipping Agencies S.A., where
he held a number of positions in finance and accounting. From January 2010 to February 2020, he also
served as Director and Secretary of Performance Shipping Inc. (ex. Diana Containerships Inc.), where he
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. In 2024, Mr. Zafirakis attended and completed the
Advanced Management Programme at INSEAD Business School in Singapore. Mr. Zafirakis has also
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
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, while he is currently the Vice Chairman of the Board and the Chairman of the Audit and the
Risk Committee of the Group.

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. (ex.

Diana Containerships Inc.) from the completion of Performance Shipping Inc. (ex. Diana Containerships
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 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, she also serves as the Finance Manager and Chief Accounting Officer 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.
and she has also served as the company’s Board Secretary since April 2023. 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. (ex. Diana Containerships 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, Greece. She completed the Sustainability Leadership and
Corporate Responsibility course at the London Business School and has obtained the Certification in
Shipping 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 20 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.

Compensation

Aggregate executive compensation (including amounts paid to Steamship) for 2023 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 2023, fees for 2023 amounted to $3.9 million and we also paid
commissions for vessel sales and purchases amounting to $0.9 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 2023, 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 shares of common stock, amended on May 31, 2018 to increase the shares of common
stock to 13,000,000 and further amended on January 8, 2021, referred to as “the Plan”, to increase the
number of shares of common stock available for the issuance of equity awards by 20 million shares.
Currently, 11,144,759 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
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 2023 and as of the date of this annual report, our board of directors awarded an aggregate amount
of 1,750,000 shares and 2,300,000 shares, respectively of restricted common stock, of which 1,487,500
shares and 1,955,000 shares, respectively were awarded to senior management, and 262,500 shares and
345,000 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 2023, compensation costs relating to the aggregate amount of restricted stock awards amounted to $9.9
million.

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.

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.

Clawback Policy

In December 2023, our Board of Directors adopted a policy regarding the recovery of erroneously awarded
compensation (“Clawback Policy”) in accordance with the applicable rules of NYSE and Section 10D and
Rule 10D-1 of the Securities Exchange Act of 1934, as amended. In the event we are required to prepare
an accounting restatement due to material noncompliance with any financial reporting requirements under
U.S. securities laws or otherwise erroneous data or if we determine there has been a significant misconduct
that causes material financial, operational or reputational harm, we shall be entitled to recover a portion or
all of any incentive-based compensation, if any, provided to certain executives who, during a three-year
period preceding the date on which an accounting restatement is required, received incentive
compensation based on the erroneous financial data that exceeds the amount of incentive-based
compensation the executive would have received based on the restatement.

Our Clawback Policy shall be administered by our Compensation Committee who has the authority, in
accordance with the applicable laws, rules and regulations, to interpret and make determinations necessary
for the administration of the Clawback Policy, and may forego recovery in certain instances, including if it
determines that recovery would be impracticable.

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, 2023, 2022 and
2021.

Shoreside
Seafaring
Total

2023

Year Ended December 31,
2022

2021

112
906
1,018

113
907
1,020

111
708
819

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.”

Disclosure of Registrant's Action to Recover Erroneously Awarded

F.
Compensation

Not applicable.

Item 7.

Major Shareholders and Related Party Transactions

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.

Title of Class
Common Stock,
par value $0.01

Identity of Person or Group

Semiramis Paliou (1)
Anastasios Margaronis (2)
Sea Trade Holdings Inc. (3)

Number of
Shares Owned
23,750,097
12,114,535
19,165,545

All other officers and directors as a group (4)

12,316,914

Percent of
Class

19.8%
10.1%
16.0%

10.3%

* Based on 119,962,917 common shares outstanding as of April 1, 2024.

(1)

Mrs. Semiramis Paliou indirectly may be deemed to beneficially own 19.8% 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. The shares include 5,427,977
shares of common stock issuable to Semiramis Paliou upon exercise of 3,527,501 warrants
distributed on December 14, 2023. As of December 31, 2021, 2022 and 2023, Mrs. Semiramis
Paliou owned indirectly 17.8%, 18.9% and 20.3%, 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. Each share of Series D Preferred Stock
shall entitle the holder thereof to two hundred thousand (200,000) votes on all matters submitted
to a vote of the stockholders of the Company, provided however, that, notwithstanding any other
provision of the Series D Preferred Stock statement of designation, to the extent that the total
number of votes one or more holders of Series D Preferred Stock is entitled to vote (including
any voting power of such holders derived from Series D Preferred Stock, shares of Common
Stock or any other voting security of the Company issued and outstanding as of the date hereof
or that may be issued in the future) on any matter submitted to a vote of stockholders of the
Company would exceed 36.0% of the total number of votes eligible to be cast on such matter,
the total number of votes that holders of Series D Preferred Stock may exercise derived from
the Series D Preferred Stock together with Common Shares and any other voting securities of

the Company beneficially owned by such holder, shall be reduced to 36% of the total number
of votes that may be cast on such matter submitted to a vote of stockholders.

(2)

(3)

(4)

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 12,114,535
shares. These shares include 2,758,710 shares of common stock issuable to Anastasios
Margaronis upon exercise of 1,792,814 warrants distributed on December 14, 2023.

This information is derived from a Schedule 13G/A filed with the SEC on February 12, 2024,
adjusting the percentage figure based on the common shares issued and outstanding as of the
date of this report. The shares include 4,422,817 shares of common stock issuable to Sea Trade
Holdings Inc. upon the exercise of 2,948,545 warrants distributed on December 14, 2023.

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 3,089,992 shares, or 2.6% of our outstanding common stock,
beneficially owned through Abra Marinvest Inc.; and Mr. Simeon Palios may be deemed to
beneficially own 5,017,536 shares, or 4.2% 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 April 1, 2024, we had 83 shareholders of record, 65 of which were located in the United States and
held an aggregate of 105,578,632 of our common shares, representing 88.01% 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 104,663,529 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 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.

Related Party Transactions

OceanPal Inc., or OceanPal

Since November 2021, we own 500,000 of OceanPal’s Series B Preferred Shares. As of October 17, 2023
we own 207 shares of OceanPal’s Series C Convertible Preferred Shares issued to us in the OceanPal
spin-off. 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. 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 June 9, 2023, we distributed the
Series D Preferred Shares as a non-cash dividend to our shareholders of record on April 24, 2023.

Dividend income from the OceanPal preferred shares during 2023 amounted to $0.8 million.

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 and three vessels were sold to third parties.

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. Each share of Series D Preferred Stock shall entitle the holder thereof to two hundred
thousand (200,000) votes on all matters submitted to a vote of the stockholders of the Company, provided

however, that, notwithstanding any other provision of Series D Preferred Stock statement of designation,
to the extent that the total number of votes one or more holders of Series D Preferred Stock is entitled to
vote (including any voting power of such holders derived from Series D Preferred Stock, shares of Common
Stock or any other voting security of the Company issued and outstanding as of the date hereof or that
may be issued in the future) on any matter submitted to a vote of stockholders of the Company would
exceed 36.0% of the total number of votes eligible to be cast on such matter, the total number of votes that
holders of Series D Preferred Stock may exercise derived from the Series D Preferred Stock together with
Common Shares and any other voting securities of the Company beneficially owned by such holder, shall
be reduced to 36% of the total number of votes that may be cast on such matter submitted to a vote of
stockholders. 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. 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. 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
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.

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 2023, brokerage fees amounted to $3.9 million
and we paid an additional amount of $0.9 million for commissions on the sale and purchases of vessels.
The terms of this relationship are currently governed by a Brokerage Services Agreement dated February
23, 2024 due to expire on December 31, 2024.

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 and CEO Ms. Semiramis Paliou provides us with travel related services. Travel related
expenses in 2023, amounted to $2.5 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 2023 amounted to $1.3 million,
commissions on revenues amounted to $0.4 million.

Bergen Ultra

Bergen Ultra, or Bergen, is a limited partnership which owns a dry bulk carrier. One of our subsidiaries,

Diana General Partner Inc., owns 3% of the partnership and acts as the General Partner and another
subsidiary, Komi Shipping Company Inc., owns 22% of the partnership. The remaining partnership interests
are owned by unaffiliated parties. On March 30, 2023, we entered into a corporate guarantee with Nordea
to secure Bergen’s obligations under a $15.4 million loan facility. We have also entered into an
administrative service agreement under which DSS provides administrative services to Bergen for an
annual fee of $15 and a commission agreement under which the Company is paid a commission of 0.8%
per annum, on the outstanding balance of the loan, as compensation for the guarantee it provided to
Nordea. During 2023, income from administrative fees amounted to $10,192 and we received $61,267 as
payment for the guarantee commission.

Real Estate Acquisition

In July 2023 we purchased the remaining 1/3 interest in a parcel of land that the Company did not already
own from Alpha Sigma Shipping Corp, a related party company, for the purchase price of $1.2 million and
became the sole owner of the parcel. Please see Item 4.(D), Property, plants and equipment.

Interests of Experts and Counsel

Not Applicable.

Item 8.

Financial information

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 and for each quarter thereafter, until
the first quarter of 2024 and two special noncash dividends, 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
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.

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 17 “Subsequent events” of our annual
consolidated financial statements.

Item 9.

The Offer and Listing

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.

Our Warrants to Purchase Common Stock, expiring on or about December 14, 2026, have traded on the
NYSE under the symbol “DSX WS” since December 14, 2023.

Plan of distribution

Not Applicable.

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 and our
Warrants have traded on the NYSE under the symbol “DSX WS” since December 14, 2023. Since February
1, 2022, our 8.375% Senior Unsecured Bond due 2026 commenced trading on the Oslo Stock Exchange,
under the symbol "DIASH02."

Selling Shareholders

Not Applicable.

Dilution

Not Applicable.

Expenses of the Issue

Not Applicable.

Item 10. Additional Information

Share capital

Not Applicable.

Memorandum and articles of association

Our current amended and restated articles of incorporation are filed as exhibit 1.1 hereto, and our current
amended and restated bylaws are filed as exhibit 1.2 hereto. 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 Exhibit 2.8 to this annual report titled “Description of Securities Registered Pursuant to
Section 12 of the Securities Exchange Act of 1934.”

Stockholders Rights Agreement

On February 2, 2024, we entered into an Amended and Restated Stockholders Rights Agreement with
Computershare Trust Company, N.A., as Rights Agent, to amend and restate the Stockholders Rights
Agreement, dated January 15, 2016.

Under the Amended and Restated 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 $25.00 per share. The Rights will separate from the common stock and become exercisable only
if a person or group acquires beneficial ownership of 15% 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
15% 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 Amended and Restated Stockholders Rights Agreement's terms, it will expire on
February 1, 2034. A copy of the Amended and Restated 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, as amended on February 2, 2024.

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.

100

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.

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.

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

101

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, 2023, approximately 2.4% of the Company’s shipping income was
attributable to the transportation of cargoes either to or from a U.S. port. Accordingly, approximately 1.2%
of the Company’s shipping income would be treated as derived from U.S. sources for the year ended
December 31, 2023. 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 $0.1 for the year ended December 31, 2023.

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
country. Accordingly, the Company and each of the subsidiaries satisfy the Country of Organization
Requirement.

For the 2023 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 2023 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

102

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 2023 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 2023 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 2023 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 2023
taxable year and intends to take this position on its 2023 U.S. federal income tax returns.

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 2023 taxable year and in the absence of exemption
under Section 883 of the Code, the Company would be subject to $0.1 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

103

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
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

104

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 PFIC 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.

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

105

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
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,

106

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.”

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.

107

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,
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

108

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.

Changes in Global Tax Laws

Long-standing international tax initiatives that determine each country’s jurisdiction to tax cross-border
international trade and profits are evolving as a result of, among other things, initiatives such as the Anti-
Tax Avoidance Directives, as well as the Base Erosion and Profit Shifting reporting requirements,
mandated and/or recommended by the EU, G8, G20 and Organization for Economic Cooperation and
Development, including the imposition of a minimum global effective tax rate for multinational businesses
regardless of the jurisdiction of operation and where profits are generated (Pillar Two). As these and other
tax laws and related regulations change (including changes in the interpretation, approach and guidance
of tax authorities), our financial results could be materially impacted. Given the unpredictability of these
possible changes and their potential interdependency, it is difficult to assess whether the overall effect of
such potential tax changes would be cumulatively positive or negative for our earnings and cash flow, but
such changes could adversely affect our financial results.

On December 12, 2022, the European Union member states agreed to implement the OECD’s Pillar Two
global corporate minimum tax rate of 15% on companies with revenues of at least €750 million effective
from 2024. Various countries have either adopted implementing legislation or are in the process of drafting
such legislation. Any new tax law in a jurisdiction where we conduct business or pay tax could have a
negative effect on our company.

Dividends and paying agents

Not Applicable.

Statement by experts

Not Applicable.

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.

Subsidiary information

Not Applicable.

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 were paying interest at LIBOR plus a margin until June 30, 2023 and since then we

109

pay term SOFR plus a margin. 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 2023, could have
increased our interest cost from $29.6 million to $33.6 million.

We will continue to have debt outstanding, which could impact our results of operations and financial
condition. We manage our exposure in interest rates, by maintaining a mix of financing under agreements
with floating and fixed interest rates. More specifically, during 2022, we refinanced part of our loans having
a floating interest rate, with sale and leaseback transactions with fixed rates. Also, in 2023, we entered into
an interest rate swap for 30% of our $100 million loan facility with DNB, dated June 26, 2023, under which
we pay fixed interest and receive floating. Through these agreements and our bond, also bearing fixed
interest rate, we manage part of our exposure in interest rates caused by the remaining agreements which
bear floating interest rates.

As of December 31, 2023, 2022 and 2021, 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 29% in 2023 and around 32% in 2022) and about half of our general and administrative expenses
(around 44% in 2023 and around 45% in 2022) 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 2023 and 2022, these non-US dollar expenses represented 15% and 12%,
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, 2023 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 2023 and 2022 amounted to € 383,250 and € 383,250, or approximately
$416,000 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 during 2023 amounted to € 22,050, as compared to € 71,288 in 2022 and relate to audit
services provided in connection with the Company’s filings with the SEC.

c) Tax Fees

During 2023 and 2022, we received services for which fees amounted to $11,025 and $10,500,
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. During 2023,
we did not repurchase any shares of common stock and as of December 31, 2023 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.

Item 16F. Change in Registrant’s Certifying Accountant

Not applicable.

113

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.

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.

114

Item 16H. Mine Safety Disclosure

Not applicable.

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

Item 16J. Insider Trading Policies

Pursuant to applicable SEC transition guidance, the disclosure required by Item 16J will be applicable to
us beginning in the fiscal year ending December 31, 2024.

Item 16K. Cybersecurity

Risk management and strategy

We have security measures in place to mitigate the risk of cybersecurity threats affecting our technology
environment and our business. In 2023, the Company successfully achieved ISO 27001 certification,
demonstrating that our Information Security Management System (ISMS) meets the rigorous requirements
of this internationally recognized standard. The Company's security team regularly conducts significant
internal changes, and the underlying controls of our cyber risk management program are now formally
aligned with ISO 27001.

Cybersecurity training is carried out on a company-wide basis to all employees and seafarers while online
performance cybersecurity is delivered to our crew monthly. To help build cultural awareness of these risks
within the Company, additional phishing campaigns have been implemented within the organization which
have motivated the staff to react, helping to enhance awareness of these risks and mitigate their
occurrence. The security team have further enhanced our processes and increased our defenses by
implementing a cybersecurity testing program, carried out on a yearly basis by external consultants.
Penetration testing was also carried out in parallel during 2023. A centralized monitoring system, powered
by Microsoft's cloud-based Security Information and Event Management (SIEM) solution, is in place
throughout the year. This system aggregates security data from various sources, uses built-in artificial
intelligence to detect and investigate threats, and enables our security team to respond to incidents rapidly.
We have also created a comprehensive Business Continuity and Disaster Recovery plan to ensure
business resilience and minimize potential disruptions.

to staff

For the year 2024, the security team has planned a comprehensive collaboration with a third-party company
to enhance our cybersecurity awareness and training initiatives. This partnership includes the design and
implementation of a multi-faceted approach
training, encompassing synchronous and
asynchronous security awareness sessions, custom-tailored phishing campaigns and the creation of
informative cybersecurity awareness newsletters to keep our staff up to date on the latest best practices
and emerging risks. Furthermore, the collaboration will focus on the customization and digitalization of our
vessels' cybersecurity awareness program, ensuring that our seafarers maintain a robust security posture
while at sea.] We will continue to acquire relevant tools to support the identification of third-party risks and
further strengthen our defense. In parallel to these security measures, our Company has established a
Data Management Platform over Microsoft Azure Technologies, to act as a centralized and secure source
of truth for our operations. The Data Management Platform was integrated with our core systems and
implementation of key reports was initiated. The goal for 2024 is to build Financial and Operational reports

115

that will enable better, faster and more accurate monitoring of Company activities and improve decision
making and productivity. To further support this transition, relevant personnel will be digitally upskilled,
while being provided with the necessary tools to help them make better decisions, ensuring greater
productivity and enhancing vessel efficiency. We are committed to enhance and enrich our operational
excellence through our external 3rd parties’ inspections and audits (PSC-Vetting inspections Audits). We
openly share our results and “lessons learnt” within the industry and organizations, we compare and
benchmark our performance and we continuously improve our safety footprint.

Governance

Our board of directors considers cybersecurity risk as part of its risk oversight function and has delegated
the day-to-day oversight of cybersecurity and other technology risks to the Cyber Security Officer. The
Cyber Security Officer is responsible for assessing and managing cybersecurity threats and for reporting
cybersecurity updates, including updates on monitoring strategies and efforts to prevent cybersecurity
threats, to the board of directors on a quarterly basis or more often as needed.

The audit committee receives regular reports from management on our cybersecurity risks. In addition,
management updates the audit committee, as necessary, regarding any material cybersecurity incidents,
as well as any incidents with lesser impact potential. The audit committee reviews the Company's
cybersecurity risks and assess’ the steps that management has taken to protect against threats to the
Company's information systems and security.

Our board of directors oversees the Company’s cybersecurity risk exposures and the steps taken by
management to monitor and mitigate cybersecurity risks. The board of directors ensures allocation and
prioritization of resources and overall strategic direction for cybersecurity and ensures alignment with the
Company’s overall strategy.

Cybersecurity Threats

During the year ended December 31, 2023 and until the date of this annual report, we did not identify any
cybersecurity threats that have materially affected or are reasonably likely to materially affect our business
strategy, results of operations, or financial condition. For more information about the cybersecurity risks we
face, please see Item 3. Key Information — D. Risk Factors — “A cyber-attack could materially disrupt our
business.”

116

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
1.1 Amended and Restated Articles of Incorporation of Diana Shipping Inc. (originally known as Diana

Description

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 Statement 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 Statement of Designation of Rights, Preferences and Privileges of Series C Preferred Stock of the

Company (18)

2.8 Description of Securities**
2.9 Amended and Restated Statement of Designation of Rights, Preferences and Privileges of Series D

Preferred Stock of the Company (22)

2.10 Warrant Agreement dated December 14, 2023, between Computershare Inc., and its affiliate,

Computershare Trust Company, N.A. and the Registrant (including the form of the Warrants) (27)

4.1 Amended and Restated 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)

117

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)

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)

118

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)
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(26)
4.46: Nordea Loan Agreement dated September 30, 2022(26)
4.47: Right of First Refusal Agreement with OceanPal Inc.(26)
4.48: Amended and Restated Contribution and Conveyance Agreement with OceanPal Inc.(26)
4.49: Loan Agreement dated April 12, 2023 with Danish Ship Finance A/S**
4.50: Loan Agreement dated June 26, 2023 with DNB Bank ASA**
4.51: Loan Agreement dated June 20, 2023 with Nordea Bank ABP**
4.52: Amended and Restatement Deed re Secured Loan Agreement, dated July 19, 2023**
4.53: Brokerage Services Agreement, dated February 23, 2024**
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**
97.1 Policy Regarding the Recovery of Erroneously Awarded Compensation**.
101 The following materials from the Company's Annual Report on Form 20-F for the fiscal year ended
December 31, 2023, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated
Balance Sheets as of December 31, 2023 and 2022; (ii) Consolidated Statements of Income for the
years ended December 31, 2023, 2022 and 2021; (iii) Consolidated Statements of Comprehensive
Income for the years ended December 31, 2023, 2022 and 2021; (iv) Consolidated Statements of
Stockholders' Equity for the years ended December 31, 2023, 2022 and 2021; (v) Consolidated
Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021; 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 99.2 to the Company's Form 6-K filed on November 15, 2023.
(2) Filed as Exhibit 99.3 to the Company's Form 6-K filed on November 15, 2023.
(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 February 2, 2024.
(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.

119

(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 September 8, 2023.
(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.
(26) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 27, 2023.
(27) Filed as an Exhibit to the Company’s Form 6-K filed on December 14, 2023.

120

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.

SIGNATURES

DIANA SHIPPING INC.

/s/ Ioannis Zafirakis
Ioannis Zafirakis
Chief Financial Officer
Dated: April 4, 2024

121

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, 2023 and 2022 ...................................

F-6

Consolidated Statements of Income for the years ended December 31, 2023, 2022 and
2021 ..................................................................................................................................

Consolidated Statements of Comprehensive Income for the years ended December 31,
2023, 2022 and 2021 .........................................................................................................

Consolidated Statements of Stockholders' Equity for the years ended December 31,
2023, 2022 and 2021 .........................................................................................................

F-7

F-8

F-9

Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022
and 2021 ...........................................................................................................................

F-11

Notes to Consolidated Financial Statements......................................................................

F-13

F-1

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, 2023 and 2022, the related consolidated statements of income, comprehensive
income, stockholders' equity and cash flows for each of the three years in the period ended December 31,
2023, 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, 2023 and 2022, and the results of its operations and its cash flows for
each of the three years in the period ended December 31, 2023, 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, 2023, 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 April 4,
2024 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-2

Description
of the
matter

Recoverability assessment of vessels held and used

At December 31, 2023, the carrying value of the Company’s vessels plus
unamortized deferred costs was $ 915,470 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.

the
We evaluated management’s recoverability assessment by comparing
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
April 4, 2024

F-3

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, 2023,
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, 2023, 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,
2023 and 2022, the related consolidated statements of income, comprehensive income, stockholders’
equity and cash flows for each of the three years in the period ended December 31, 2023, and the related
notes and our report dated April 4, 2024 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-4

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
April 4, 2024

F-5

DIANA SHIPPING INC.
CONSOLIDATED BALANCE SHEETS
December 31, 2023 and 2022
(Expressed in thousands of U.S. Dollars – except for share and per share data)

2023

2022

ASSETS
Current Assets
Cash and cash equivalents (Note 2(e))
Time deposits (Note 2(e))
Accounts receivable, trade (Note 2(f))
Due from related parties (Note 4)
Inventories (Note 2(g))
Prepaid expenses and other assets
Investments in equity securities (Note 5(b))
Fair value of derivatives

Total Current Assets

Fixed Assets:
Advances for vessel acquisitions (Note 6)
Vessels, net (Note 6)
Property and equipment, net (Note 7)

Total fixed assets
Other Noncurrent Assets
Restricted cash, non-current (Note 8)
Due from related parties, non-current (Note 4)
Equity method investments (Note 4)
Investments in related party (Note 5(a))
Other non-current assets
Deferred costs

Total Non-current Assets
Total Assets

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt, net of deferred financing costs (Note 8)
Current portion of finance liabilities, net of deferred financing costs (Note 9)
Accounts payable
Due to related parties (Note 3)
Accrued liabilities
Deferred revenue

Total Current Liabilities

Non-current Liabilities
Long-term debt, net of current portion and deferred financing costs (Note 8)
Finance liabilities, net of current portion and deferred financing costs (Note 9)
Fair value of derivatives
Warrant liability (Note 11(g))
Other non-current liabilities

Total Noncurrent Liabilities

Commitments and contingencies (Note 10)
Stockholders' Equity
Preferred stock (Note 11)

Common stock, $0.01 par value; 1,000,000,000 and 200,000,000 shares authorized and
113,065,725 and 102,653,619 issued and outstanding on December 31, 2023 and 2022,
respectively (Note 11)
Additional paid in capital
Accumulated other comprehensive income
Accumulated deficit

Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

101,592 $
40,000
5,870
149
5,056
8,696
20,729
129

182,221

-
900,192
24,282

924,474

20,000
319
15,769
8,318
31
15,278

984,189
1,166,410 $

49,512 $
9,221
9,663
759
12,416
3,563
85,134

461,131
122,908
568
6,332
1,316
592,255
-

1,131
1,101,425
308
(613,869)
489,021
1,166,410 $

76,428
46,500
6,126
216
4,545
6,749
-
-
140,564

24,123
949,616
22,963
996,702

21,000
-
506
7,744
101
16,302
1,042,355
1,182,919

91,495
8,802
11,242
136
12,134
7,758
131,567

431,016
132,129
-
-
879
564,024
-

1,027
1,061,015
253
(574,993)
487,328
1,182,919

The accompanying notes are an integral part of these consolidated financial statements.

F-6

DIANA SHIPPING INC.
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2023, 2022 and 2021
(Expressed in thousands of U.S. Dollars – except for share and per share data)

REVENUES:
Time charter revenues
OPERATING EXPENSES
Voyage expenses (Note 12)
Vessel operating expenses
Depreciation and amortization of deferred charges
General and administrative expenses
Management fees to a related party (Note 4(a))

Gain on sale of vessels (Note 6)

Insurance recoveries

Other operating (income)/loss

Operating income, total

OTHER INCOME / (EXPENSES):

2023

2022

2021

262,098 $

289,972 $

214,203

13,621
85,486
49,785
32,968
1,313

(5,323)

(1,464)

85,712 $

6,942
72,033
43,326
29,367
511

(2,850)

(1,789)

(265)

5,570
74,756
40,492
29,192
1,432

(1,360)

603

142,697 $

63,518

Interest expense and finance costs (Note 13)

(49,331)

(27,419)

(20,239)

Interest and other income

Loss on derivative instruments (Note 8)

Loss on extinguishment of debt (Note 8)

Gain on spin-off of OceanPal Inc.

Gain on deconsolidation of subsidiary (Note 4(b))

Gain on related party investments (Note 5(a))

Unrealized gain on equity securities (Note 5(b))

Unrealized gain on warrants (Note 11 (g))

Gain/(loss) from equity method investments (Note 4)

Total other expenses, net

Net income

Dividends on series B preferred shares (Notes 11(b) and
14)

Net income attributable to common stockholders

Earnings per common share, basic (Note 14)

Earnings per common share, diluted (Note 14)

Weighted average number of common shares
outstanding, basic (Note 14)

Weighted average number of common shares
outstanding, diluted (Note 14)

8,170

(439)

(748)

844

1,502

2,813

1,583

(262)

2,737

(435)

589

894

(35,868) $

(23,634) $

49,844 $

119,063 $

(5,769)

44,075 $

113,294 $

0.44 $

0.42 $

1.42 $

1.36 $

176

(980)

15,252

-
-

(333)

(6,124)

57,394

(5,769)

51,625

0.64

0.61

100,166,629

80,061,040

81,121,781

101,877,142

83,318,901

84,856,840

The accompanying notes are an integral part of these consolidated financial statements.

F-7

DIANA SHIPPING INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the years ended December 31, 2023, 2022 and 2021
(Expressed in thousands of U.S. Dollars)

Net income
Other comprehensive income - Defined benefit plan
Comprehensive income

2023

2022

2021

49,844 $

49,899 $

119,063 $

182

119,245 $

57,394
2
57,396

The accompanying notes are an integral part of these consolidated financial statements.

F-8

DIANA SHIPPING INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the years ended December 31, 2023, 2022 and 2021
(Expressed in thousands of U.S. Dollars – except for share data)

Preferred Stock
Series B

Preferred Stock
Series C

Preferred Stock
Series D

# of Shares

Par
Valu
e

# of
Shares

Par
Valu
e

# of
Shares

Par
Valu
e

Common Stock

# of Shares

Par
Value

Additional
Paid-in
Capital

Other
Comprehe
nsive
Income

Accumulat
ed Deficit

Total
Equity

BALANCE,
December 31, 2020
Net income

Issuance of Series
D Preferred Stock
(Note 11(d))
Issuance of
restricted stock and
compensation cost
Stock repurchased
(Note 11(h))
and retired (Note
11(e))
Dividends on series
B preferred stock
(Note 11(b))
Dividends on
common stock
(Note 11(f))
OceanPal Inc.
spinoff (Note 11(g))

Other
comprehensive
income
BALANCE,
December 31, 2021

2,600,000 $ 26
-
- -

10,675 $
- -

2,600,000 $ 26

10,675 $

Net income

Issuance of
restricted stock and
compensation cost
(Note 11(h))
Stock repurchased
and retired (Note
11(e))
Issuance of
common stock
(Note 11(e))
Issuance of
common stock for
vessel acquisitions
(Notes 6 and 11(e))
Dividends on series
B preferred stock
(Note 11(b))
Dividends on
common stock
(Note 11(f))

Dividends in kind

(Note 11(g))

-
-

- $
- -

400

400 $

-
-

89,275,002 $
- -

893 $ 1,020,164 $
- -

- -

69 $
- -

(592,582) $
57,394

428,570
57,394

254

8,260,000

7,359

(12,862,744)

(129)

(45,240)

254

7,442

(45,369)

(5,769)

(8,820)

(40,509)

84,672,258 $

847 $

982,537 $

71 $

(590,286) $

393,195

119,063

1,470,000

9,267

(820,000)

(8)

(3,791)

877,581

5,313

16,453,780

164

67,689

-
-

F-9

-
-

9,282

(3,799)

5,322

67,853

(5,769)

(79,812)
(18,189)

Other
comprehensive
income
BALANCE,
December 31, 2022
Net income

Issuance of
restricted stock and
compensation cost
(Note 11(h))
Issuance of
common stock
(Note 11(e))
Issuance of
common stock for
vessel acquisitions
(Notes 6 and 11(e))
Dividends on series
B preferred stock
(Note 11(b))
Dividends on
common stock
(Note 11(f))
Warrants (Note
11(g))
Dividends in kind
(Note 11(g))
Other
comprehensive
income
BALANCE,
December 31, 2023

-
-
2,600,000 $ 26

10,675 $

-
-
-

-
-
2,600,000 $ 26

-
-
-

10,675 $

-
-

-
-
-

-
-

-
400 $

-
-
-

-
400 $

-
-

-
-
-

-
-

102,653,619 $ 1,027 $ 1,061,015 $

182
253 $

(574,993) $

182
487,328

49,844

1,750,000

9,920

6,628,493

22,780

2,033,613

7,710

-
-
-

113,065,725 $ 1,131 $ 1,101,425 $

-
-
-

9,938

22,846

7,730

(5,769)

(64,276)
(7,914)
(10,761)

55
308 $

(613,869) $

55
489,021

The accompanying notes are an integral part of these consolidated financial statements.

F-10

DIANA SHIPPING INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2023, 2022 and 2021
(Expressed in thousands of U.S. Dollars)

Cash Flows from Operating Activities:
Net income

Adjustments to reconcile net income to cash provided by
operating activities

Depreciation and amortization of deferred charges
Amortization of debt issuance costs (Note 13)
Compensation cost on restricted stock (Note 11(h))
Provision for credit loss
Dividend income (Note 5(a))
Pension and other postretirement benefits
Loss on derivative instruments (Note 8)
Gain on sale of vessels (Notes 6)
Gain on related parties investments (Note 5(a))
Loss on extinguishment of debt (Note 8)
Gain on OceanPal spinoff
Gain on deconsolidation of subsidiary (Note 4 (b))
Gain / (Loss) from equity method investments (Note 4)
Unrealized gain on equity securities (Note 5(b))
Unrealized gain on warrants (Note 11(g))
(Increase) / Decrease
Accounts receivable, trade
Due from related parties

Inventories

Prepaid expenses and other assets
Other non-current assets

Investments in equity securities

Increase / (Decrease)
Accounts payable, trade and other
Due to related parties
Accrued liabilities
Deferred revenue
Other non-current liabilities

Drydock cost

Cash Flows from Investing Activities:

Payments to acquire vessels and vessel improvements (Notes
6 and 4(b))

Proceeds from sale of vessels, net of expenses (Note 6)
Payments to acquire investments (Note 4)
Time deposits
Payments to joint ventures
Payments to acquire other assets (Note 4(b))
Cash divested from deconsolidation (Note 4(b))

Proceeds from convertible loan with limited partnership (Note
4(b))

Payments to acquire property, furniture and fixtures (Note 7)

Net Cash Provided By/(Used in) Investing Activities
Cash Flows from Financing Activities:

Proceeds from issuance of long-term debt and finance liabilities
(Notes 8 and 9)

Proceeds from issuance of common stock (Note 11(e))
Payments for issuance of common stock (Note 11(e))
Proceeds from issuance of preferred stock, net of expenses
Payments of dividends, preferred stock (Note 11(b))
Payments of dividends, common stock (Note 11(f))
Payments for repurchase of common stock
Payments of financing costs (Notes 8 and 9)

Repayments of long-term debt and finance liabilities (Notes 8
and 9)

2023

2022

2021

49,844 $

119,063 $

57,394

49,785
2,620
9,938
-
(3)
55
439
(5,323)
(1,502)
748
-
(844)
262
(2,813)
(1,583)

256
(252)
(511)
(1,950)
70
(17,916)

(1,761)
(57)
282
(4,195)
437

(5,646)

43,326
2,286
9,282
133
(100)
182
-
(2,850)
(589)
435
-
-
(894)
-
-

(3,427)
736
1,768
(1,265)
(16)

1,465
(72)
3,956
2,026
(218)

(16,368)

(29,732)
36,560
(10,595)
6,500
-
(216)
(771)

25,189
(2,006)

(230,302)
4,372
-
(46,500)
-
-
-

-
(667)

24,929 $

(273,097) $

57,696
-
(79)
-
(5,769)
(41,427)
-
(1,724)

275,133
5,266
-
-
(5,769)
(79,812)
(3,799)
(3,302)

40,492
1,865
7,442
300
(69)
2
-
(1,360)
-
980
(15,252)
-
333
-
-

1,568
(56)
(1,581)
1,759
(1,177)

1,219
154
(2,610)
2,890
(57)

(4,531)

89,705

(17,393)
33,731
-
-
(375)
-
(1,000)

-
(1,600)

13,363

101,279
-
-
254
(5,769)
(8,820)
(45,369)
(7,594)

(79,842)

(102,839)

(93,170)

F-11

Net Cash Provided by Operating Activities

70,380 $

158,859 $

Net Cash Provided by/(Used In) Financing Activities

(71,145) $

84,878 $

(59,189)

Cash, Cash Equivalents and Restricted Cash, Period
Increase/(Decrease)

Cash, Cash Equivalents and Restricted Cash, Beginning
Balance

Cash, Cash Equivalents and Restricted Cash, Ending
Balance

24,164

(29,360)

43,879

97,428

126,788

82,909

121,592 $

97,428 $

126,788

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents
Restricted cash, non-current
Cash, Cash Equivalents and Restricted Cash, Total

101,592 $
20,000
121,592 $

76,428
21,000
97,428 $

110,288
16,500
126,788

SUPPLEMENTAL CASH FLOW INFORMATION

Non-cash acquisition of assets (Note 6)

7,809 $

136,038

Non-cash debt assumed
Non-cash Finance Liability
Stock issued in noncash financing activities (Note 6)
Non-cash investments acquired (Notes 6 and 5(a))
Noncash dividend (Note 11(f) and 11(g))
Transfer to Investments
Interest paid

-
-
7,809
10,000
41,521
-

46,473 $

20,571
47,782
67,909
-
-
1,370
21,306

The accompanying notes are an integral part of these consolidated financial statements.

-
-
-
-
-
441
19,608

F-12

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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 4(a)). The fees paid to DSS are eliminated in
consolidation.

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. 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

F-13

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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 8). As of
December 31, 2023 and 2022, accrued interest income amounted to $1,206 and $578, respectively and is
included in prepaid expenses and other assets in the accompanying consolidated balance sheets.

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, 2023 and 2022 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.

Vessel Cost: Vessels are stated at cost which consists of the contract price and any material
h)
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.

F-14

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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 7). 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 did not result in the recognition of impairment on any vessel and
therefore no impairment loss was identified or recorded in 2023, 2022 and 2021.

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 2023, 2022
and 2021 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.

F-15

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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. Effective July 1, 2023, the
Company changed its estimated scrap rate of its vessels from $250 per lightweight ton to $400 per
lightweight ton, calculated based on the average demolition prices in different markets, during the last 15
years. For the period from July 1, 2023 to December 31, 2023, this increase in vessels’ salvage values
resulted in decreased depreciation expense, increased operating income and increased net income by
$3,773 and increased earnings per share, basic and diluted, by $0.04.

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 6) 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.

Concentration of Credit Risk: Financial instruments, which potentially subject the Company to
p)
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

F-16

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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 12). 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: All repair and maintenance expenses including underwater inspection
r)
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: Basic earnings / (loss) per common share are computed
s)
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

F-17

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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: Investments in common stock in entities over which the Company
w)
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 (or fair value if a
consequence of deconsolidation) 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 and are recorded as receivable
on dividend declaration. 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. 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. For equity method
investments that the Company has elected to account for using the fair value option, all subsequent
changes in fair value are included in gain/loss on related party investments.

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.

Financial Instruments, credit losses: At each reporting date, the Company evaluates its financial
z)
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 4(a)) 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 income. 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 2023 and 2022.

aa)
Financial Instruments, Investments-Equity Securities, Recognition and Measurement: The
Company initially recognizes equity securities at the transaction price. Equity Investments with readily
determinable fair values are subsequently measured at fair value through net income. Unrealized holding
gains and losses for these securities are recorded in earnings. According to ASC 321-10-35-2, the

F-18

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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. 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 the classification of certain
freestanding financial instruments as permanent equity, temporary equity or liability. The Company, when
assessing the accounting of the warrants and the pre-funded warrants, takes into consideration ASC 480
to determine whether the warrants and the pre-funded warrants should be classified as permanent equity
instead of temporary equity or liability. The Company further analyses the key features of the warrants and
the pre-funded warrants and examines whether these fall under the definition of a derivative according to
ASC 815 applicable guidance or whether certain of these features affect the classification. In cases when
derivative accounting is deemed inappropriate, no bifurcation of these features is performed.

F-19

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

ad) Guarantees: Guarantees issued by the Company, excluding those that guarantee its own
performance, are recognized at fair value at the time the guarantees are issued, or upon deconsolidation
of a subsidiary. A liability for the fair value of the obligation undertaken in issuing the guarantee is
recognized. If it becomes probable that the Company will have to perform under a guarantee (Note 10(c)),
the Company will recognize an additional liability if the amount of the loss can be reasonably estimated.
The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a
subsidiary's debt to a third party. For those guarantees excluded from the above guidance requiring the
fair value recognition provision of the liability, financial statement disclosures of such items are made.

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 Mr. Palios and the Company’s CEO
Mrs. Semiramis Paliou. Travel expenses for 2023, 2022 and 2021 amounted to $2,525, $2,644 and $2,210,
respectively, and are mainly included in vessel operating expenses and general and administrative
expenses in the accompanying consolidated financial statements. As of December 31, 2023 and 2022, an
amount of $62 and $136, 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 CEO Mrs. Semiramis Paliou and provides brokerage services to DSI for a fixed monthly
fee plus commission on the sale of vessels, pursuant to a Brokerage Services Agreement. For 2023, 2022
and 2021 brokerage fees amounted to $3,900, $3,309 and $3,309, respectively, and are included in general
and administrative expenses in the accompanying consolidated statements of income. For 2023, 2022,
and 2021, commissions to Steamship amounted to $906, $1,219 and $712, respectively and are included
in gain on the sale of vessels, vessel cost and equity method investments. As of December 31, 2023 and
2022, an amount of $697 and $0, respectively, was due to Steamship.

Equity Method Investments

a)
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. As of December 31, 2023 and 2022, the investment in
DWM amounted to $734 and $506 and is included in equity method investments in the accompanying
consolidated balance sheets. In 2023 and 2022, the investment in DWM resulted in a gain of $228, and
$894, respectively, and in 2021, resulted in a loss of $333, included in loss from equity method investments
in the accompanying consolidated statements of income.

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 to DWM in 2023, 2022 and 2021 amounted to $1,313, $511 and $1,432, respectively, and are
separately presented as management fees to related party in the accompanying consolidated statements
of income. Additionally, in 2023 and 2022, the Company paid to DWM management fees amounting to $19
and $272, respectively, 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 2023, 2022 and 2021 amounted
to $390, $162 and $200, respectively, and are included in voyage expenses (Note 12). As of December

F-20

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

31, 2023 and 2022, there was an amount of $25 and $216 due from DWM, included in due from related
parties in the accompanying consolidated balance sheets.

b)
Bergen Ultra LP, or Bergen: Bergen is a limited partnership which was established for the purpose
of acquiring, owning, chartering and/or operating a vessel. Bergen was a wholly owned subsidiary of Diana,
which on February 14, 2023, signed a Memorandum of Agreement to acquire for $27,900, from an
unrelated third-party an Ultramax dry bulk vessel, delivered on April 10, 2023. On March 30, 2023, Bergen
entered into a loan agreement with Nordea for a $15,400 loan to finance part of the purchase price of the
vessel. On the same date, the Company entered into a corporate guarantee with Nordea to secure
Bergen’s obligations under the loan. On April 28, 2023, the Company entered into (i) an investment
agreement with an unrelated third party to acquire 75% of the limited partnership interests, for $11,025; (ii)
an amended limited partnership agreement under which the Company acts as the General Partner of the
partnership through its wholly owned subsidiary Diana General Partner Inc.; (iii) an administrative service
agreement under which DSS provides administrative services to Bergen for an annual fee of $15; (iv) a
commission agreement under which the Company is paid a commission of 0.8% per annum, on the
outstanding balance of the loan, as compensation for the guarantee it provided to Nordea and (v) a
convertible loan agreement for $27,900 plus other expenses, with Bergen under which Bergen would have
to repay all expenditures made by the Company for the acquisition of the vessel. Pursuant to the terms of
the convertible loan, on April 28, 2023, the Company received from Bergen $25,189 in cash while an
amount of $3,675 was converted into partnership interests in Bergen, representing 25% of the total
partnership interests.

Upon the provisions of the amended partnership agreement, the general partner irrevocably delegated the
authority to Bergen’s board of directors to have the power to oversee and direct the operations,
management and policies of Bergen. The Company evaluated its variable interests in Bergen under ASC
810 and concluded that Bergen is a VIE and that the Company does not individually have the power to
direct the activities of the VIE that most significantly affect the partnership’s performance. From April 28,
2023 the Company no longer retains the power to control the board of directors. As of the same date,
Bergen has been considered as an affiliate entity and not as a controlled subsidiary of the Company. The
Company accounted for the deconsolidation of Bergen in accordance with ASC 610 and the retained
noncontrolling interest of 25% was accounted for under the equity method due to the Company’s significant
influence over Bergen.

On the date of deconsolidation, the Company measured the fair value of the retained noncontrolling interest
at $4,519 through Level 2 inputs of the fair value hierarchy. The Company in order to calculate the fair
value of its 25% interest in accordance with ASC 610, took into consideration the fair value of the distinct
assets and liabilities of Bergen on the date of the deconsolidation. This resulted in gain on deconsolidation
amounting to $844, separately presented in the accompanying 2023 consolidated statement of income,
being the difference between the fair value of the retained noncontrolling interest plus the carrying value
the liabilities assumed by Bergen and the carrying value of the assets derecognized.

For 2023, the investment in Bergen resulted in gain of $181 and is included in loss from equity method
investments in the 2023 accompanying consolidated statement of income. As of December 31, 2023, the
investment in Bergen amounted to $4,700 and is included in equity method investments in the
accompanying 2023 consolidated balance sheet. Also, for 2023, income from management fees from
Bergen amounted to $10, included in time charter revenues and income from the commission paid on the
loan guarantee amounted to $28, included in interest and other income in the 2023 accompanying
consolidated statement of income. As of December 31, 2023, there was an amount of $443 due from
Bergen included in due from related parties, current and non-current.

F-21

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

c)
Windward Offshore GmbH, or Windward: On November 7, 2023, the Company through its wholly
owned subsidiary Diana Energize Inc., or Diana Energize, entered into a joint venture agreement, with two
unrelated companies to form Windward Offshore GmbH & Co. KG or Windward, based in Germany, for the
purpose of establishing and operating an offshore wind vessel company with the aim of becoming a leading
provider of service vessels to the growing offshore wind industry and acquire certain vessels. Diana
Energize agreed to contribute 25,000,000 Euro, being 45.45% of the limited partnership’s capital and as of
December 31, 2023, the investment amounted to $10,063 mainly consisting of advances to fund the
construction of two vessels and working capital. For 2023, the investment in Windward resulted in a loss
of $671 and is included in loss from equity method investments in the 2023 accompanying consolidated
statement of income.

d)
Cohen Global Maritime Inc., or Cohen: On September 12, 2023, the Company through its wholly
owned subsidiary Cebu Shipping Company Inc., or Cebu, acquired 24% of Cohen, a company organized
in the Republic of the Philippines for the purpose of engaging in the manning agency business. As of
December 31, 2023, the Company’s investment in Cohen amounted to $272, consisting of advances paid
to acquire the license required to engage in the manning agency business.

Investments in related parties and other

a)
OceanPal Inc., or OceanPal: As of December 31, 2023 and 2022, the Company was the holder
of 500,000 Series B Preferred Shares and 207 and 10,000, respectively, of Series C Convertible Preferred
Shares of OceanPal.

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 B Preferred
Shares have no dividend or distribution rights.

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 a liquidation preference
equal to the stated value of $1,000 and are convertible into common stock at the Company’s option
commencing upon 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. Dividends
on each share of Series C Preferred Shares are cumulative and accrue at the rate of 8% per annum.
Dividends are payable in cash or, at OceanPal’s election, in kind.

On October 17, 2023, the Company converted 9,793 of the 10,000 Series C Preferred shares of OceanPal
to 3,649,474 common shares, having a fair value of $9,160 determined through Level 1 inputs of the fair
value hierarchy, based on the closing price of OceanPal’s common shares on the date of conversion. Upon
conversion the Company realized a gain of $1,742, being the difference between the book value of the
9,793 Series C Preferred shares and the fair value of the common shares acquired and is included in gain
on related party investments, separately presented in the accompanying consolidated statements of
income. Following the conversion, the Company is the beneficial owner of 49% of the outstanding common
stock of OceanPal and since the shares are listed at NASDAQ, the Company elected to account for its
common stock ownership in OceanPal at fair value.

As of December 31, 2023, the Company’s investment in the common stock of OceanPal amounted to
$8,138, being the fair value of OceanPal’s common shares on that date, determined through Level 1 inputs

F-22

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

of the fair value hierarchy, and the Company recorded an unrealized loss on investment of $1,022, included
in gain on related party investments, separately presented in the accompanying consolidated statements
of income.

As the Company applied the fair value option to its investment in the common shares of OceanPal that
would otherwise be accounted for under the equity method of accounting, it also applied fair value to all of
its financial interests in OceanPal, being the Series B preferred shares and Series C preferred shares which
until then, the Company applied the guidance for equity securities without readily determinable fair values.
As of December 31, 2023 and 2022, the Company’s investment in Series B preferred shares and Series C
preferred shares, amounted to $180 and $7,744, respectively, including $3 and $169, respectively,
dividends receivable on the Series C preferred shares, and are separately presented in investments in
related parties in the accompanying consolidated balance sheets. As of December 31, 2023, the Company
recorded a gain of $21, presented in gain on related party Investments, being the difference between the
book value of the investments and the fair value determined through Level 3 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.

On September 20, 2022, the Company acquired 25,000 OceanPal Cumulative Convertible Series D
Preferred Shares, par value $0.01 per share, as part of the consideration provided to the Company for the
sale of Baltimore to OceanPal, pursuant to a Memorandum of Agreement dated June 13, 2022 (Note 6).
Similarly, on February 8, 2023, the Company acquired 13,157 shares of OceanPal Series D Cumulative
Convertible Preferred Shares, as part of the consideration provided to the Company for sale of Melia to
OceanPal, pursuant to a Memorandum of Agreement dated February 1, 2023 (Note 6).

Series D preferred shares were convertible into common stock at the holder’s option, at a conversion price
equal to the 10-trading day trailing VWAP of OceanPal’s common shares, provided however that the holder
would not beneficially own greater than 49% of OceanPal’s outstanding shares of common stock. Series
D preferred shares have no voting rights; dividends were cumulative, 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 had a liquidation preference equal $1,000 per share.

On the date of issuance, the Company measured its investments on Series D preferred shares at their fair
value and elected to subsequently measure such investments in accordance with paragraph ASC 321-10-
35-2 (Note 2(aa)). The fair value of Series D Preferred Shares was determined 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 25,000 Series D Preferred Shares as non-cash
dividend 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 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 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 related party investments in the accompanying consolidated statements of income.

On June 9, 2023, the Company distributed the 13,157 Series D Preferred Shares as a non-cash dividend
to its shareholders of record on April 24, 2023. The Company accounted for the transaction as a

F-23

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

nonreciprocal transfer with its owners in accordance with ASC 845 and measured the fair value of the
preferred shares on the date of declaration at $10,761. The fair value of the Series D Preferred Shares
was determined 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 $761, being the difference between the fair value and the carrying value of the investment and is
separately presented as gain on related party investment in the 2023 accompanying consolidated
statement of income.

For 2023, 2022 and 2021, dividend income from the Series C and Series D OceanPal preferred shares
amounted to $801, $917 and $69, respectively, included in interest and other income in the accompanying
consolidated statements of income.

b)
Investment in equity securities: During 2023, the Company acquired equity securities of an entity
listed in the NYSE which as of December 31, 2023 had a fair value of $20,729. The equity securities were
initially recorded at cost amounting to $17,916 and measured subsequently at fair value, since their fair
values were readily determinable, determined through Level 1 of the fair value hierarchy. The securities
are considered marketable securities that are available to be converted into cash to fund current operations
and classified in current assets in the accompanying 2023 consolidated balance sheet. Unrealized gain on
the investment amounted to $2,813 and is separately presented in unrealized gain on equity securities in
the accompanying consolidated statements of income.

Advances for vessel acquisitions and Vessels, net

Vessel Acquisitions

On July 15, 2021 the Company agreed to acquire from an unaffiliated third party, the 2011 built Kamsarmax
dry bulk vessel Leonidas P.C., for a purchase price of $22,000, delivered on February 16, 2022. The
Company incurred $927 of additional predelivery expenses.

On December 3, 2021, the Company agreed to acquire from an unaffiliated third party, the Capesize dry
bulk vessel Florida, for a purchase price of $59,275, delivered on March 29, 2022. 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 the fourth quarter
of 2022, the Company took delivery of eight vessels for $195,810 in cash and 16,453,780 newly issued
common shares having a fair value of $67,909 (Notes 11 and 16). The Company also incurred $4,364 of
additional predelivery expenses.

On January 30, 2023, the Company took delivery of the ninth vessel for $23,955 in cash and 2,033,613
newly issued common shares, having a fair value of $7,809. Part of the purchase price of the vessel and
additional predelivery expenses were already paid in 2022 and presented as of December 31, 2022 in
advances for vessel acquisitions in the accompanying consolidated balance sheet. The Company incurred
$555 of additional predelivery expenses.

The value of the shares issued in 2022 and in 2023, was determined through Level 1 inputs of the fair value
hierarchy based on the closing price of the Company’s common stock on the date of issuance which was
the date of delivery of each vessel.

F-24

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

On February 14, 2023, the Company signed a Memorandum of Agreement to acquire from an unaffiliated
third-party an Ultramax dry bulk vessel for a purchase price of $27,900. On April 28, 2023, the vessel’s
ship owning company was deconsolidated from the Company’s financial statements due to the Company’s
loss of control described in note 4(b) and the net book value of the vessel amounting to $27,908 is included
in both vessel acquisitions and vessel disposals.

Vessel Disposals

On June 13, 2022, the Company sold to OceanPal, the vessel Baltimore, for a sale price of $22,000 of
which $4,400 in cash and $17,600 in 25,000 newly issued OceanPal Series D Preferred Shares (Note
5(a)). 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 on sale of vessels in the accompanying consolidated statements of
income.

On January 23, 2023, the Company sold to an unrelated third party the vessel Aliki for a sale price of
$15,080 and on February 1, 2023, the Company, sold to OceanPal the vessel Melia for a sale price of
$14,000, of which $4,000 in cash and $10,000 in 13,157 newly issued OceanPal Series D Preferred Shares
(Note 5(a)). On the date of the agreements, the vessels, having an aggregate carrying value of $23,198
and unamortized deferred costs of $405 were classified as held for sale, measured at carrying value which
was the lower of their carrying value and fair value (sale price) less costs to sell. Both vessels were
delivered to their new owners on February 8, 2023. The sale of the vessels resulted in gain amounting to
$4,995, included in gain on sale of vessels in the accompanying consolidated statements of income.

On October 5, 2023, the Company sold to an unrelated third party the vessel Boston for a sale price of
$17,998. The vessel was delivered to the buyer on December 6, 2023 and the sale of the vessel resulted
in gain of $328, included in gain on sale of vessels in the accompanying consolidated statements of income.

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, 2021
- Additions for vessel acquisitions and improvements
- Additions for improvements reclassified from other non-
current assets
- Vessel disposals
- Depreciation for the year
Balance, December 31, 2022
- Additions for vessel acquisitions and improvements
- Vessel disposals
- Vessel disposal due to deconsolidation of subsidiary (Note
4(b))
- Depreciation for the year
Balance, December 31, 2023

810,429 $
358,504
1,370
(29,175)
-
1,141,128 $
61,682
(60,655)
(27,908)
-
1,114,247 $

(166,979) $
-
-
12,453
(36,986)
(191,512) $
-
21,688
-
(44,231)
(214,055) $

643,450
358,504
1,370
(16,722)
(36,986)
949,616
61,682
(38,967)
(27,908)
(44,231)
900,192

F-25

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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, an amount of $1,370 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 year ended December 31, 2022.

7. Property and Equipment, net

The Company owns the land and building of its principal corporate offices in Athens, Greece and a plot of
a land of which on July 6, 2023, DSS purchased 1/3 from Alpha Sigma Shipping Corp, a related party
company, for the purchase price of $1,208 and became its sole owner. 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:

Balance, December 31, 2021
- Additions in property and equipment
- Depreciation for the year
Balance, December 31, 2022
- Additions in property and equipment
- Depreciation for the year
Balance, December 31, 2023

Long-term debt

Property and
Equipment

Accumulated
Depreciation

Net Book
Value

28,269 $
667
-
28,936 $
2,006
-
30,942 $

(5,427) $
-
(546)
(5,973) $
-
(687)
(6,660) $

22,842
667
(546)
22,963
2,006
(687)
24,282

The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as
follows:

2023

2022

Senior unsecured bond
Secured long-term debt

Total long-term debt

Less: Deferred financing costs

Long-term debt, net of deferred financing costs

Less: Current long-term debt, net of deferred financing costs,
current

Long-term debt, excluding current maturities

Senior Unsecured Bond:

119,100
397,857

516,957 $
(6,314)

510,643 $

(49,512)

461,131 $

125,000
405,120

530,120
(7,609)

522,511

(91,495)

431,016

On June 22, 2021, the Company issued a $125,000 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. 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 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 part 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 nominal value and after December 2025 at a price equal to 100% of nominal value. On June

F-26

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

29, 2023, the Company repurchased $5,900 nominal value of the bond for $5,851. In this respect, the
Company recognized an amount of $159 as loss on debt extinguishment, representing the difference
between the reacquisition price of $5,851 and the net carrying amount of the debt being extinguished of
$5,900 less deferred financing fees of $208. 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, 2023, 33 vessels of the Company’s fleet
are mortgaged with first preferred or priority ship mortgages, having an aggregate carrying value of
$699,014. 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, 2023 and 2022, minimum cash deposits required to be maintained at all times under
the Company’s loan facilities, amounted to $20,000 and $21,000, 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. In 2023 and 2022 , the weighted average interest rate of
the secured term loans was 7.3% and 3.8%, respectively.

As of December 31, 2023 and 2022, the Company had the following agreements with banks, either as a
borrower or as a guarantor, to guarantee the loans of its subsidiaries:

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 was 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 bore 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
was 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 bore interest at LIBOR plus a margin
of 2.3%.

In April 2023, both loans were refinanced through a new loan facility with Danish Ship Finance and the
outstanding balance of both loans, amounting to $75,193 was prepaid in full and the Company recorded a
loss on debt extinguishment amounting to $107.

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 agreement was amended on May
7, 2020, and supplemented on July 29, 2021, with an additional borrowing of $460. In July 2022 and in

F-27

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

February 2023, the Company prepaid an amount of $4,786 and $8,134, respectively, following the sale of
vessels. On June 20, 2023, the Company entered into a new loan agreement with Nordea to refinance the
outstanding balance of the existing loan amounting to $20,934. On June 27, 2023, the Company drew
down $22,500 and prepaid in full the outstanding balance of $20,934 and recorded a loss on debt
extinguishment amounting to $220. The new loan is repayable in twenty equal quarterly instalments of
$1,125 and bears interest at term SOFR plus a margin of 2.25%. The loan matures on June 27, 2028.

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 $197,236 under the loan, in tranches for each vessel
on their delivery to the Company but prepaid $21,937 in December 2022 due to a vessel sale and leaseback
transaction. The loan is repayable in equal quarterly instalments of an aggregate amount of $3,719, and a
balloon of $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 income.

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 was repayable 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 bore interest at LIBOR plus a margin of 2.25%. Tranche
B was 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 bore 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. In August 2022,
the Company prepaid $30,791 due to vessel sale and leaseback transactions and since then, the loan was
repayable in quarterly instalments of $1,980 and a balloon of $13,553 payable together with the last
instalment, on May 20, 2026. The loan bore interest at LIBOR plus a margin of 2.15% per annum, which
could be adjusted annually by maximum 10 basis points upwards or downwards, subject to the
performance under certain sustainability KPIs.

On June 26, 2023, the Company prepaid in full both loans amounting to $68,677, which were refinanced
under a new loan agreement with DNB Bank ASA and the Company recorded a loss on debt
extinguishment amounting to $237.

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 term SOFR plus a margin of 2.45%.

DNB Bank ASA or DNB: 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 bore interest at LIBOR plus a margin
of 2.4%. On March 14, 2023, the outstanding balance of the loan amounting to $11,841 was prepaid in full
and the Company recorded a loss on debt extinguishment amounting to $25.

On June 26, 2023, the Company entered into a $100,000 loan agreement which was drawn on June 27,
2023, to refinance the outstanding balance of the ABN loans mentioned above and for working capital
purposes. The loan is repayable in 26 equal quarterly instalments of $3,846 until December 27, 2029, and
bears term SOFR plus a margin of 2.2%, subject to sustainability margin adjustment. Additionally, the loan

F-28

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

is subject to a margin reset, according to which the borrowers and the lenders will enter into discussions
to agree on a new margin. Unless the parties agree on a new margin, the loan will be mandatorily repayable
on June 27, 2027. As part of the loan agreement, on July 6, 2023, the Company entered into an interest
rate swap with DNB for a notional amount of $30,000, being 30% of the loan amount and quarterly
amortization of $1,154. Under the interest rate swap, the Company pays a fixed rate of 4.268% and
receives floating under term SOFR, has a trade date on June 27, 2023, and termination date on December
27, 2029, and also has a mandatory break on June 27, 2027, the margin reset date of the loan, according
to which the swap will be terminated if the loan is prepaid. As of December 31, 2023, the fair value of the
interest rate swap amounted to $439 and is separately presented in current assets and non-current
liabilities, amounting to $129 and $568 respectively, in the 2023 accompanying consolidated balance
sheet. Loss from the interest rate swap amounted to $439 and is separately presented as loss on derivative
instruments in the 2023 consolidated statement of income.

Danish Ship Finance A/S or Danish: On April 12, 2023, the Company signed a term loan facility with
Danish, for $100,000 to refinance the outstanding balance of the Company’s loans with DNB Bank ASA
and BNP, mentioned above and working capital. On April 18 and 19, 2023, the Company drew down
$100,000 which is repayable in twenty equal consecutive quarterly instalments of $3,301 each and a
balloon of $33,972 payable together with the last instalment on April 19, 2028, and bears interest at term
SOFR plus a margin of 2.2%.

As of December 31, 2023 and 2022, the Company was in compliance with all of its loan covenants.

As of December 31, 2023, the maturities of the Company’s bond and debt facilities throughout their term,
are shown in the table below and do not include the related debt issuance costs.

Period
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6 and thereafter

Total

Finance Liabilities

Principal Repayment

51,783
51,783
170,883
152,696
62,026
27,786

516,957

The amount of finance liabilities shown in the accompanying consolidated balance sheet is analyzed as
follows:

Finance liabilities
Less: Deferred financing costs

December 31, 2023 December 31, 2022
142,370
(1,439)

133,337
(1,208)

Finance liabilities, net of deferred financing costs

Less: Current finance liabilities, net of deferred financing costs,
current

Finance liabilities, excluding current maturities

132,129 $

(9,221)

122,908 $

140,931

(8,802)

132,129

F-29

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

On March 29, 2022, the Company sold Florida to an unrelated third party for $50,000 (Note 6) 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.

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.

On December 6, 2022, the Company sold DSI Andromeda to an unrelated third party for $29,850 (Note 6)
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.

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, 2023,
the weighted average remaining lease term of the above lease agreements was 7.70 years, the average
interest rate was 4.83% and the sublease income during 2023 was $34,560, included in time charter
revenues.

As of December 31, 2023, and throughout the term of the leases, the Company has annual finance liabilities
as shown in the table below:

Period
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6 and thereafter

Total

Principal Repayment
9,437
9,808
10,224
10,661
11,151
82,056

133,337

F-30

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

10. 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) 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 9.

c) On March 30, 2023, the Company entered into a corporate guarantee with Nordea under which the
Company guarantees the performance by Bergen of all of its obligations under the loan until the maturity
of the loan on March 30, 2028 (Note 4 (b)). The Company considers the likelihood of having to make
any payments under the guarantee to be remote, as the loan is also secured by an account pledge by
Bergen, first preferred mortgage on the vessel, a first priority general assignment of the earnings,
insurances and requisition compensation of the vessel, a charter party assignment, a partnership
interests security deed, and a manager’s undertaking. Accordingly, as of December 31, 2023, the
Company did not record a provision for losses under the guarantee of Bergen’s loan amounting to
$14,778 on that date.

d) As of December 31, 2023, 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, 2023 and until their expiration was as follows:

Period
Year 1
Year 2
Year 3
Year 4
Total

Amount

127,297
24,629
9,454
725
162,105

11. Capital Stock and Changes in Capital Accounts

Preferred stock: As of December 31, 2023, and 2022, the Company’s authorized preferred stock
a)
consists of 50,000,000 shares and 25,000,000 shares, respectively (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 shares are designated as Series D Preferred Shares. As of December 31, 2023 and 2022,
the Company had zero Series A Participating Preferred Shares issued and outstanding.

F-31

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

b)
Series B Preferred Stock: As of December 31, 2023, and 2022, 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. In 2023, 2022 and 2021, 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, 2023, and 2022, 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, 2023, and 2022, 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 200,000
votes, on all matters submitted to a vote of the stockholders of the Company, provided however, that,
notwithstanding any other provision of the Series D Preferred Stock statement of designation, to the extent
that the total number of votes one or more holders of Series D Preferred Stock is entitled to vote (including
any voting power of such holders derived from Series D Preferred Stock, shares of Common Stock or any
other voting security of the Company issued and outstanding as of the date hereof or that may be issued
in the future) on any matter submitted to a vote of stockholders of the Company would exceed 36.0% of
the total number of votes eligible to be cast on such matter, the total number of votes that holders of Series
D Preferred Stock may exercise derived from the Series D Preferred Stock together with Common Shares
and any other voting securities of the Company beneficially owned by such holder, shall be reduced to
36% of the total number of votes that may be cast on such matter submitted to a vote of stockholders.

Issuance and Repurchase of Common Shares: In February 2021, the Company repurchased in
e)
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, in the
fourth quarter of 2022, the Company issued 16,453,780 common shares to Sea Trade (Note 6), upon

F-32

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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. On January 30, 2023, the Company issued 2,033,613 common
shares, at $3.84, to Sea Trade upon exercise by Sea Trade of a warrant it held for the acquisition of a
vessel (Note 6). The Company did not 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.

Dividend on Common Stock: On March 21, 2022, the Company paid a dividend on its common
f)
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.

On March 20, 2023, the Company paid a dividend of $0.15 per share, or $15,965, to its shareholders of
record as of March 13, 2023. On July 10, 2023, the Company distributed a dividend of $0.15 per share to
all shareholders of record as of June 12, 2023, and paid $12,424 in cash to its shareholders who elected
to receive cash and distributed 965,044 newly issued common shares to its shareholders who elected to
receive shares. On September 8, 2023, the Company distributed a dividend of $0.15 per share to all
shareholders of record as of August 14, 2023, and paid $13,041 in cash to its shareholders who elected to
receive cash and distributed 831,672 newly issued common shares to its shareholders who elected to
receive shares. On December 4, 2023, the Company distributed a dividend of $0.15 per share to all
shareholders of record as of November 27, 2023 in the form of common stock and distributed 4,831,777
newly issued common shares.

g)
Dividend in Kind: 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. 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. On June 9, 2023, the Company distributed the Company’s investment
in the Series D Preferred Shares of OceanPal in the form of a stock dividend amounting to $10,761, or
$0.10 per share, to its shareholders of record as of April 24, 2023 (Notes 5(a)).

On December 14, 2023, the Company distributed 22,613,070 warrants to its shareholders of record on
December 6, 2023. Holders received one warrant for every five shares of issued and outstanding shares
of common stock held as of the record date (rounded down to the nearest whole number for any fractional
warrant. Each Warrant entitle the Holder to purchase, at the Holder’s sole and exclusive election, at the
exercise price of $4 per warrant, one share of common stock plus a bonus share fraction. A bonus share
fraction entitles a Holder to receive an additional half of a share of common stock for each warrant exercised
without payment of any additional exercise price. If all warrants were exercised as of December 31, 2023,
the Company would have issued 33,919,605 common shares with a fair value of $100,741 and would have
received $90,452 of proceeds. The warrants were measured on the date of distribution at fair value,
determined through level 1 account hierarchy, being the opening price of the warrants on the NYSE on the
date of distribution as they are listed under the ticker DSX_W. The value of the warrants was measured at
$7,914, or $0.35 per warrant and was recorded as liability under the terms of ASC 480. As of December
31, 2023, the warrant liability was remeasured at fair value and recorded at $6,332, resulting in a gain of
$1,583 separately presented in the 2023 consolidated statement of income as unrealized gain on warrants.
As of December 31, 2023, no warrants had been exercised.

F-33

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

Incentive Plan: As of December 31, 2023, 13,444,759 shares remained reserved for issuance

h)
according to the Company’s incentive plan.

Restricted stock in 2023, 2022 and 2021 is analyzed as follows:

Outstanding as of December 31, 2020
Granted
Vested
Outstanding as of December 31, 2021
Granted
Vested
Outstanding as of December 31, 2022
Granted
Vested
Outstanding as of December 31, 2023

Number of Shares Weighted Average
Grant Date Price
2.95
2.85
3.20
2.83
4.15
2.86
3.07
4.54
3.05
3.45

2,423,012 $
8,260,000
(1,168,363)
9,514,649 $
1,470,000
(3,118,060)
7,866,589 $
1,750,000
(2,822,753)
6,793,836 $

The fair value of the restricted shares has been determined with reference to the closing price of the
Company’s stock on the date such awards were approved by the Company’s board of directors. The
aggregate compensation cost is recognized ratably in the consolidated statement of income over the
respective vesting periods. In 2023, 2022 and 2021, compensation cost amounted to $9,938, $9,282 and
$7,442, respectively, and is included in general and administrative expenses in the accompanying
consolidated statements of income.

As of December 31, 2023 and 2022, the total unrecognized cost relating to restricted share awards was
$14,880 and $16,873, respectively. As of December 31, 2023, the weighted-average period over which the
total compensation cost related to non-vested awards not yet recognized is expected to be recognized is
1.95 years.

i)
Warrants: On August 11, 2022, the Company issued nine warrants to Sea Trade (Note 6) 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, which was exercised on January 30, 2023,
upon delivery of the ninth Ultramax vessel (Note 6). The Company did not 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.

12. Voyage expenses

The amounts in the accompanying consolidated statements of income are analyzed as follows:

F-34

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

Commissions
Gain from bunkers
Port expenses and other
Total

13.

Interest and Finance Costs

2023

2022

2021

13,331 $
(474)
764
13,621 $

14,412 $
(8,100)
630
6,942 $

10,794
(5,955)
731
5,570

The amounts in the accompanying consolidated statements of income are analyzed as follows:

Interest expense, debt
Finance liabilities interest expense

Amortization of debt and finance liabilities issuance
costs
Loan and other expenses

Interest expense and finance costs

2023

2022

2021

39,617 $
6,786

2,620
308
49,331 $

21,983 $
2,735

2,286
415
27,419 $

18,067
-

1,865
307
20,239

14. Earnings 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 per share does not treat the non-vested shares (not considered participating
securities) as outstanding until the time/service-based vesting restriction has lapsed. The dilutive effect on
unexercised warrants (Note 11(g)) that are in-the-money, is computed using the treasury stock method
which assumes that the proceeds upon exercise of these warrants are used to purchase common shares
at the average market price for the period. 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 2023,
2022 and 2021, there were 1,710,513, 3,257,861, and 3,735,059 incremental shares, respectively,
included in the denominator of the diluted earnings per share calculation.

F-35

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

Net income attributable to common stockholders is adjusted by the dividends on Series B Preferred Stock.
Net income attributable to common stockholders is further adjusted by the unrealized gain on warrants as
of December 31, 2023 to calculate the diluted earnings per share.

2023

2022

2021

Net income
Dividends on series B preferred shares
Net income attributable to common stockholders $

49,844 $
(5,769)
44,075 $

119,063 $
(5,769)
113,294 $

57,394
(5,769)
51,625

Weighted average number of common shares, basic

100,166,629

80,061,040

81,121,781

Earnings per share, basic

Net income
Dividends on series B preferred shares
Unrealized gain on warrants
Adjusted net income attributable to common
stockholders

0.44 $

1.42 $

0.64

49,844 $
(5,769)
(1,583)

119,063 $
(5,769)
-

57,394
(5,769)
-

42,492 $

113,294 $

51,625

Weighted average number of common shares, basic
Incremental shares

100,166,629
1,710,513

80,061,040
3,257,861

81,121,781
3,735,059

Weighted average number of common shares, diluted 101,877,142

83,318,901

84,856,840

Earnings per share, diluted

0.42 $

1.36 $

0.61

15.

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 2023,
2022 and 2021 taxable years, and the Company takes this position for United States federal income tax
return reporting purposes.

16. 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

F-36

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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 2023, 2022 and 2021, charterers that individually accounted for 10% or more of the Company’s time
charter revenues were as follows:

Charterer
Cargill International SA
Koch Shipping PTE LTD. Singapore

*Less than 10%

2023

2022

2021

13%
*

19%
15%

10%

The Company is exposed to interest rate fluctuations associated with its variable rate borrowings. On July
6, 2023, the company entered into an interest rate swap with DNB (Notes 8 and 13) to manage part of such
exposure.

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, 2023, the Bond having a fixed interest rate and a carrying value of $119,100 (Note 8)
had a fair value of $118,505 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 at
$17,600, determined 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 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.

On February 8, 2023, the Company acquired 13,157 shares of OceanPal Series D Preferred Shares, as
part of the consideration provided to the Company for sale of Melia to OceanPal, at $10,000, 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 June 9, 2023, the Company distributed the Series D Preferred Shares as a non-cash dividend and
measured their fair value on the date of declaration at $10,761. The fair value was determined by using

F-37

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

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 $761.

Other Fair value measurements

Description (in thousands of US Dollars)
Non-recurring fair value measurements
Long-lived assets held for use
Total non-recurring fair value measurements

Assets
Recurring fair value measurements
Investments in equity securities
Investments in related party
Interest rate swap, asset
Total recurring fair value measurements

Non-recurring fair value measurements
Equity method investments
Long-lived assets held for use
Total non-recurring fair value measurements

Liabilities
Recurring fair value measurements
Interest rate swap, liability
Warrant liability
Total recurring fair value measurements

17. Subsequent Events

December 31,
2022

Quoted Prices
in Active
Markets
(Level 1)

67,909 $
67,909

67,909
67,909

December 31,
2023

Quoted Prices
in Active
Markets
(Level 1)

Significant
Other
Observable
Inputs (Level 2)

Significant
Other
Observable
Inputs (Level 3)

20,729
8,315
129
29,173 $

4,519 $
7,809
12,328 $

20,729 $
8,138

28,867 $

7,809
7,809 $

129
129 $

4,519 $
-
4,519

568
6,332
6,900

6,332
6,332

568

177

a) Exercise of warrants: Since January 4, 2024 and until April 1, 2024, holders of warrants exercised
3,051,471 warrants under which 4,597,192 shares of common stock were issued and the proceeds
from the exercise of warrants amounted to $12,206.

b) Series B Preferred Stock Dividends: On January 15, 2024, 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 12, 2024.

c) Acquisition of property: On January 18, 2024, the Company acquired from unaffiliated third
parties a plot of land for the purchase price of Euro 310,000 to be utilized for corporate purposes.
On March 6, 2024, the Company acquired from unaffiliated third parties another plot of land for the
purchase price of Euro 1,300,000.

F-38

DIANA SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

d) Sale of Vessel Artemis: On January 19, 2024, the Company, through a wholly owned subsidiary,
entered into an agreement with an unrelated third party to sell the vessel Artemis for the sale price
of $12,990. The vessel was delivered to the new owners on March 5, 2024.

e) Commissioning Service Operation Vessels (CSOVs): On January 24, 2024, Diana Energize Inc.
increased its equity commitment to Euro 50 million, being approximately 45.87% of the limited
partnership’s capital (Note 4 (c)).

f) Methanol Dual Fuel New-Building Kamsarmax Dry Bulk Vessels: On February 8, 2024, the
Company signed an agreement to order through Marubeni Corporation or its guaranteed nominee,
an unaffiliated third party, two 81,200 dwt methanol dual fuel new-building Kamsarmax dry bulk
vessels, for a purchase price of $46,000 each, built at Tsuneishi Group (Zhoushan) Shipbuilding
Inc., China. The vessels are expected to be delivered to the Company by the second half of 2027
and the first half of 2028 respectively. On February 15, 2024, the Company paid the first instalment,
amounted $8,050 for each vessel, representing the 17.5% of the contract price.

g) Sale of Vessel Houston: On February 22, 2024, the Company, through a wholly owned subsidiary,
entered into an agreement with an unrelated third party to sell the vessel Houston for the sale price
of $23,300, with delivery to the new owners latest by September 16, 2024.

h) Common Stock Dividend: On February 23, 2024, the Company declared a cash dividend on its
common stock of $0.075 per share, based on the Company’s results of operations during the fourth
quarter ended December 31, 2023. The cash dividend was paid on March 12, 2024, to all
shareholders of record as of March 5, 2024.

F-39