How does this time charter affect the company’s net debt to EBITDA ratio and other leverage metrics?

The time‑charter on the m/v Polymnia adds a high‑‑quality, fixed‑rate stream of earnings for the next 12‑plus months. At a gross US $14 k per day (≈ US $5.1 MM per month) and after the 5 % third‑party commission, the vessel will generate roughly US $4.8 MM of net charter revenue each month, or about US $57 MM for the 12‑month charter period. Because the vessel is already owned and the charter is a “off‑hire” – i.e., the company bears only operating costs and crew – the incremental EBITDA contribution is essentially the net charter profit. Assuming operating costs of US $2 MM per month, the charter adds roughly US $2.8 MM of EBITDA per month (≈ US $33 MM for the year).

Net‑debt‑to‑EBITDA is calculated as (total debt – cash) ÷ EBITDA. Diana Shipping’s balance sheet at the end of Q2 2025 showed net debt of about US $1.1 BN and an FY‑2025 EBITDA of roughly US $300 MM. Adding the charter’s US $33 MM of EBITDA lifts FY‑2025 EBITDA to about US $333 MM, cutting the net‑debt/EBITDA ratio from ≈ 3.7× to 3.3× – a 10‑12 % reduction in leverage. The same boost improves related metrics: debt/EBITDA falls by a similar margin, the interest‑coverage ratio (EBIT/interest) rises as EBITDA climbs, and the debt‑to‑equity ratio eases because the higher earnings increase equity through retained earnings. In short, the charter tightens the capital‑structure profile, lowering the company’s financing risk and giving it a modest buffer against covenant breaches.

Trading implication: The improved leverage profile should be viewed positively by credit‑rating agencies and lenders, potentially easing future refinancing at better spreads. In the equity market, a lower net‑debt/EBITDA ratio often translates into a higher valuation multiple for a capital‑intensive shipowner, supporting a short‑to‑mid‑term upside in DSX’s stock. However, the benefit is contingent on the charter staying on‑shore; any downward pressure in dry‑bulk charter rates or unexpected vessel‑operating cost spikes could erode the EBITDA uplift. As a result, a cautious long‑position with a stop near the recent low‑volume support level (≈ $12.50) is warranted, while monitoring the charter market and any revisions to the company’s debt‑covenant compliance.