Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 262

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 19
Chunk 262
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projected net operating

cash

flows expected to be generated

over the remaining useful life

of the vessel, including estimates and assumptions related

to the future charter rates. Future

charter rates are the most

significant and subjective assumption that the

Company

uses for its impairment analysis. For periods

of time where the vessels are not fixed

under time charter contracts, the

Company estimates the future

daily time charter equivalent rate

(the “future charter rate”)

for the vessels’ unfixed days

based on the most recent 10-year

average of historical 1 year

time charter rates available

for each type of vessel, as such

averages take

into account the volatility and cyclicalit

y

of the market.

We identified future charter

rates on vessels with impairment

indicators used in the undiscounted

projected net

operating cash flows as a critical audit matter

because of the complex judgements made

by management to estimate

them and the significant impact they have

on the undiscounted projected net

cash flows expected to be generated

over

the remaining useful life of the vessel.

This required a high degree of auditor judgment

and an increased extent of effort

when performing audit procedures

to

evaluate the reasonableness of

management’s future charter

rates.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the future charter rates on vessels with impairment

indicators utilized in the

undiscounted projected net operating cash flows included the following,

among others:

•

We tested the effectiveness of controls over management’s review of the impairment

analysis, including the

future charter rates used within the undiscounted projected net operating cash flows.

•

We evaluated the reasonableness of the Company’s estimate of future charter rates through

the performance of

the following procedures:

1.

Evaluating the Company’s methodology for estimating the future charter rates utilized

in the

undiscounted projected net operating cash flows by comparing them

to 1) the Company’s historical rates,

2) historical rate information of similar size vessels published by a third-party broker and

3) other external

market sources, including reports on prospective market outlook.

2.

Evaluating management’s ability to accurately forecast future charter rates by comparing

actual results to

management’s historical forecasts.

/s/

Deloitte Certified Public Accountants S. A.

Athens, Greece

March 21, 2025

We have served as the