Diana Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2017

Tuesday, 21. November 2017 14:05

ATHENS, Greece, Nov. 21, 2017 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported a net loss of $24.5 million and net loss attributed to common stockholders of $25.9 million for the third quarter of 2017, including an $8.4 million impairment loss on the m/v Melite which was sold for scrap in October 2017 after her grounding in July 2017 and the receipt from the insurers of the insured value. This compares to a net loss of $78.3 million and net loss attributed to common stockholders of $79.8 million for the third quarter of 2016.

Time charter revenues were $43.9 million for the third quarter of 2017, compared to $27.1 million for the same quarter of 2016. The increase in time charter revenues was due to increased average time charter rates achieved for the Company’s vessels during the quarter and increased revenues resulting from the enlargement of the fleet.

Net loss and net loss attributed to common stockholders for the nine months ended September 30, 2017 amounted to $74.8 million and $79.1 million, respectively. This compares to a net loss and net loss attributed to common stockholders of $141.0 million and $145.3 million, respectively, for the same period of 2016. Time charter revenues were $113.0 million for the nine months ended September 30, 2017, compared to $86.2 million for the same period of 2016.


 Fleet Employment Profile (As of November 17, 2017)
 Diana Shipping Inc.’s fleet is employed as follows:
         
 VesselSister Ships*Gross
Rate
(USD Per
Day)
Com**CharterersDelivery
Date to Charterers***
Redelivery Date to Owners****Notes
 BUILT  DWT
 22 Panamax Bulk Carriers
DANAEA$7,750  5.00%Phaethon International Company AG24-May-1725-Nov-17 - 29-Dec-17
 2001  75,106       
DIONEA$7,050  5.00%Caravel Shipping Limited, Hong Kong4-May-1727-Nov-17 - 18-Feb-18
 2001  75,172       
NIREFSA$9,400  5.00%Jaldhi Overseas Pte. Ltd., Singapore5-May-175-Jun-18 - 5-Sep-18 
 2001  75,311       
ALCYON $5,000  5.00%Dampskibsselskabet Norden A/S, Copenhagen4-May-1620-Jul-17 
   A$8,800  5.00%Hudson Shipping Lines Incorporated20-Jul-1720-Jul-18 - 20-Oct-18 
 2001  75,247       
TRITONA$6,500  5.00%Ausca Shipping Limited, Hong Kong8-Jun-178-Jul-18 - 23-Oct-18 
 2001  75,336       
OCEANISA$7,000  5.00%Ausca Shipping Limited, Hong Kong30-May-1730-Jul-18 - 14-Nov-18 
 2001  75,211       
THETISB$5,150  5.00%Transgrain Shipping B.V., Rotterdam19-Jun-1614-Jul-17 
   $8,350  5.00%Ausca Shipping Limited, Hong Kong14-Jul-1714-Jul-18 - 14-Oct-18 
 2004  73,583       
PROTEFSB$7,900  5.00%Hudson Shipping Lines Incorporated24-Jun-1724-Jun-18 - 9-Oct-18 
 2004  73,630       
CALIPSOB$9,000  5.00%Transgrain Shipping B.V., Rotterdam14-Mar-1730-Jan-18 - 14-May-18 
 2005  73,691       
10 CLIO $5,350  5.00%Transgrain Shipping B.V., Rotterdam22-May-169-Jul-17 
  B$8,550  5.00%Phaethon International Company AG9-Jul-179-Aug-18 - 9-Nov-18 
 2005  73,691       
11 NAIAS $7,500  5.00%Glencore Agriculture B.V., Rotterdam27-Dec-1611-Nov-17
   B$10,000  5.00%Phaethon International Company AG24-Nov-179-Feb-19 - 24-May-19
 2006  73,546       
12 ARETHUSAB$7,200  5.00%Noble Resources International Pte. Ltd., Singapore23-Jan-1727-Nov-17 - 23-Mar-181,4
 2007  73,593       
13 ERATOC$7,250  5.00%Phaethon International Company AG25-May-1725-Nov-17 - 30-Dec-17
 2004  74,444       
14 CORONISC$9,000  5.00%Narina Maritime Ltd16-May-1716-Apr-18 - 16-Jul-18
 2006  74,381       
15 MELITED$8,000  5.00%Uniper Global Commodities SE, Düsseldorf6-Dec-16- - -6,7,8
 2004  76,436       
16 MELIAD$9,500  5.00%Nidera S.P.A., Roma19-Mar-174-Feb-18 - 4-May-18
 2005  76,225       
17 ARTEMIS $5,350  5.00%Bunge S.A., Geneva7-Jun-168-Jul-17 
   $9,000  5.00%Ausca Shipping Limited, Hong Kong8-Jul-178-Jul-18 - 8-Oct-18 
 2006  76,942       
18 LETO $7,750  5.00%Glencore Agriculture B.V., Rotterdam29-Dec-1627-Nov-17 - 29-Jan-18
 2010  81,297       
19 SELINAE$7,100  5.00%BG Shipping Co., Limited, Hong Kong23-Feb-1726-Nov-17 - 8-Feb-18
 2010  75,700       
20 MAERA $8,500  5.00%Transgrain Shipping B.V., Rotterdam15-Jun-1722-Aug-1710,11
  E$11,900  5.00%Unico Logistics Co., Ltd., Seoul19-Sep-1719-Jun-18 - 19-Aug-18 
 2013  75,403       
21 ISMENE $5,850  5.00%Glencore Grain B.V., Rotterdam7-Aug-1616-Sep-17 
   $12,000  5.00%DHL Project & Chartering Limited, Hong Kong16-Sep-1716-Sep-18 - 16-Dec-18 
 2013  77,901       
22 CRYSTALIA $6,250  5.00%SwissMarine Services S.A., Geneva28-Jun-163-Oct-17 
  F$11,100  5.00%Glencore Agriculture B.V., Rotterdam3-Oct-173-Oct-18 - 18-Jan-19 
 2014  77,525       
23 ATALANDIF$5,300  5.00%Glencore Grain B.V., Rotterdam26-Mar-1626-Nov-17 - 26-Apr-18 
 2014  77,529       
 5 Kamsarmax Bulk Carriers
24 MAIA $7,500  5.00%RWE Supply & Trading GmbH, Essen13-Nov-1527-Jul-1712 
  G$10,125  5.00%Glencore Agriculture B.V., Rotterdam27-Jul-1727-Jul-18 - 27-Oct-18 
 2009  82,193       
25 MYRSINIG$8,650  5.00%RWE Supply & Trading GmbH, Essen8-Jun-1731-Aug-18 - 31-Dec-18 
 2010  82,117       
26 MEDUSA $6,300  5.00%Quadra Commodities S.A., Geneva7-Apr-166-Jul-17 
  G$10,000  4.75%Cargill International S.A., Geneva6-Jul-176-Jul-18 - 6-Oct-18 
 2010  82,194       
27 MYRTOG$8,000  4.75%Cargill International S.A., Geneva17-Jan-1717-Jan-18 - 17-Apr-18 
 2013  82,131       
28 ASTARTE $9,000  5.00%Glencore Agriculture B.V., Rotterdam12-Jun-1712-Aug-18 - 12-Nov-18 
 2013  81,513       
 5 Post-Panamax Bulk Carriers
29 ALCMENE $8,000  4.75%Cargill International S.A., Geneva8-Jun-178-Jul-18 - 23-Oct-18 
 2010  93,193       
30 AMPHITRITE $7,700  5.00%Bunge S.A., Geneva15-Jul-158-Sep-1713,14
  H$11,150  4.75%Cargill International S.A., Geneva28-Sep-1728-Oct-18  28-Jan-19 
 2012  98,697       
31 POLYMNIAH$10,100  4.75%Cargill International S.A., Geneva15-Mar-1731-Mar-18 - 15-Jul-18 
 2012  98,704       
32 ELECTRAI$8,000  5.00%Uniper Global Commodities SE, Düsseldorf11-Jun-1711-Jul-18 - 11-Nov-18 
 2013  87,150       
33 PHAIDRAI$7,750  5.00%Jera Trading Singapore Pte. Ltd.19-May-1726-Nov-17 - 3-Jan-18
 2013  87,146       
 14 Capesize Bulk Carriers
34 NORFOLK $12,000  5.00%Trafigura Maritime Logistics Pte. Ltd., Singapore26-Apr-1724-Nov-17
 2002  164,218       
35 ALIKI $10,300  5.00%SwissMarine Services S.A., Geneva14-Feb-1730-Dec-17 - 14-Apr-18 
 2005  180,235       
36 BALTIMORE $11,300  4.75%Cargill International S.A., Geneva16-Feb-1716-Mar-18 - 1-Jul-18 
 2005  177,243       
37 SALT LAKE CITY $9,000  5.00%Uniper Global Commodities SE, Düsseldorf20-Jan-1720-Jan-18 - 20-May-18 
 2005  171,810       
38 SIDERIS GSJ$13,000  5.00%Rio Tinto Shipping (Asia) Pte., Ltd., Singapore21-Jun-1721-Jul-18 - 21-Nov-18 
 2006  174,186       
39 SEMIRIOJ$14,150  5.00%Koch Shipping Pte. Ltd., Singapore21-May-1721-May-18 - 21-Sep-18 
 2007  174,261       
40 BOSTONJ$13,000  4.75%Clearlake Shipping Pte. Ltd., Singapore9-Aug-1520-Nov-171,15
 2007  177,828       
41 HOUSTONJ$10,000  5.00%SwissMarine Services S.A., Geneva17-Feb-172-Mar-18 - 17-May-1816 
 2009  177,729       
42 NEW YORKJ$14,450  5.00%Koch Shipping Pte. Ltd., Singapore23-Apr-1725-Nov-17 - 29-Dec-17
 2010  177,773       
43 SEATTLEK$11,700  5.00%Koch Shipping Pte. Ltd., Singapore8-Feb-178-Apr-18 - 23-Jul-18 
 2011  179,362       
44 P. S. PALIOSK$10,550  5.00%Koch Shipping Pte. Ltd., Singapore27-Jan-1727-Jan-18 - 11-Jun-1817 
 2013  179,134       
45 G. P. ZAFIRAKISL$6,500  5.00%RWE Supply & Trading GmbH, Essen14-Feb-1614-Aug-17 
   $15,000  5.00%14-Aug-1729-Sep-18 - 14-Jan-19 
 2014  179,492       
46 SANTA BARBARAL$12,000  4.75%Cargill International S.A., Geneva24-Jan-179-Jan-18 - 24-Apr-18 
 2015  179,426       
47 NEW ORLEANS $11,250  5.00%Koch Shipping Pte. Ltd., Singapore10-Dec-1610-Dec-17 - 10-Apr-18 
 2015  180,960       
 4 Newcastlemax Bulk Carriers
48 LOS ANGELESMBCI_2014
5TCs AVG
+ 14% 
  5.00%SwissMarine Services S.A., Geneva22-Jan-177-Feb-18 - 22-Apr-18 
 2012  206,104      
49 PHILADELPHIAM$15,500  5.00%Koch Shipping Pte. Ltd., Singapore14-Mar-1714-Jan-18 - 29-Apr-18 
 2012  206,040       
50 SAN FRANCISCON$11,750  5.00%Koch Shipping Pte. Ltd., Singapore5-Jan-175-Jan-18 - 20-May-18 
 2017  208,006       
51 NEWPORT NEWSNBCI_2014
5TCs AVG
+ 24% 
  5.00%SwissMarine Services S.A., Geneva10-Jan-1710-Nov-18 - 10-Mar-19 
 2017  208,021      
* Each dry bulk carrier is a "sister ship", or closely similar, to other dry bulk carriers that have the same letter.
** Total commission percentage paid to third parties.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
 
1 Based on latest information.
2 Currently without an active charterparty. Vessel on scheduled drydocking.
3 Estimated delivery date to the charterers.
4 Vessel off-hire from June 27, 2017 to July 1, 2017.
5 Vessel off-hire for drydocking from August 11, 2017 to August 30, 2017.
6 As of July 25, 2017, vessel is off-hire due to a grounding incident.
7 On September 21, 2017, the Owners of the m/v Melite advised Charterers and cargo receivers that due to the impossibility of performance of the voyage under the relevant Bills of Lading, the Time Charterparty contract had been rendered frustrated and cargo owners were asked to make arrangements for the on carriage of their cargo or other disposal thereof.
8 ''Melite'' sold and delivered to her new Owners on October 24, 2017.
9 Since September 17, 2017, Charterers have changed to COFCO Agri Freight SA.
10 Charter included a one time gross ballast bonus payment of US$350,000.
11 Vessel on scheduled drydocking from August 24, 2017 to September 19, 2017.
12 Charterers have agreed to pay the weighted average of the 4 T/C routes on 14th July 2017 plus 20% for the excess period commencing July 13, 2017.
13 Charterers have agreed to pay the P2A_03 route plus 10%, as published by The Baltic Exchange on August 30, 2017, for the excess period commencing August 30, 2017.
14 Vessel on scheduled drydocking from September 8, 2017 to September 28, 2017.
15 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
16 Charterers will pay US$5,150 per day for the first 15 days of the charter period.
17 Vessel off-hire for drydocking from July 9, 2017 to July 20, 2017.



Summary of Selected Financial & Other Data (unaudited)
   Three months ended September 30, Nine months ended September 30,
   2017  2016  2017  2016 
          
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$ 43,920  $ 27,122  $ 112,960  $ 86,240  
 Voyage expenses  2,478    2,122    5,597    12,439  
 Vessel operating expenses  22,697    21,218    66,337    65,093  
 Net loss  (24,493)   (78,312)   (74,782)   (140,981) 
 Net loss attributed to common stockholders  (25,936)   (79,754)   (79,109)   (145,308) 
FLEET DATA
 Average number of vessels 51.0   46.0   49.4    44.9  
 Number of vessels 51.0   46.0   51.0    46.0  
 Weighted average age of vessels 8.2   7.9   8.2    7.9  
 Ownership days  4,692    4,232    13,495    12,310  
 Available days  4,632    4,227    13,275    12,232  
 Operating days  4,533    4,201    13,005    12,144  
 Fleet utilization 97.9%  99.4%  98.0%  99.3% 
AVERAGE DAILY RESULTS
 Time charter equivalent (TCE) rate (1)$ 8,947  $ 5,914  $ 8,088  $ 6,033  
 Daily vessel operating expenses (2)$ 4,837  $ 5,014  $ 4,916  $ 5,288  

_____________________

(1)           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 is a non-GAAP measure.  TCE rate 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.

(2)           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.

Conference Call and Webcast Information

The Company’s management will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Tuesday, November 21, 2017.

Investors may access the webcast by visiting the Company’s website at www.dianashippinginc.com, and clicking on the webcast link. The conference call also may be accessed by telephone by dialing 1-877-407-8291 (for U.S.-based callers) or 1-201-689-8345 (for international callers), and asking the operator for the Diana Shipping Inc. conference call.

A replay of the webcast will be available soon after the completion of the call and will be accessible for 30 days on www.dianashippinginc.com. A telephone replay also will be available for 30 days by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers), and providing the Replay ID number 13672574.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership of dry bulk vessels. The Company’s vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release 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 statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

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. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe 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 our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

(See financial tables attached)



DIANA SHIPPING INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except share and per share data
          
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
          
   Three months ended September 30, Nine months ended September 30,
   2017  2016  2017  2016 
          
REVENUES:        
 Time charter revenues$ 43,920  $ 27,122  $ 112,960  $ 86,240  
          
EXPENSES:        
 Voyage expenses  2,478    2,122    5,597    12,439  
 Vessel operating expenses  22,697    21,218    66,337    65,093  
 Depreciation and amortization of deferred charges  22,363    20,626    65,083    60,940  
 General and administrative expenses   5,737    5,975    18,175    18,718  
 Management fees to related party  480    360    1,341    1,080  
 Impairment loss  8,446    -    8,446    -  
 Other loss/(income)  43    (53)   287    22  
 Operating loss  (18,324)   (23,126)   (52,306)   (72,052) 
          
OTHER INCOME / (EXPENSES):        
 Interest and finance costs  (6,799)   (5,698)   (19,874)   (16,309) 
 Interest and other income  1,460    540    3,028    1,637  
 Loss from equity method investments  (830)   (50,028)   (5,630)   (54,257) 
 Total other expenses, net  (6,169)   (55,186)   (22,476)   (68,929) 
          
Net loss$ (24,493) $ (78,312) $ (74,782) $ (140,981) 
          
Dividends on series B preferred shares  (1,443)   (1,442)   (4,327)   (4,327) 
          
Net loss attributed to common stockholders  (25,936)   (79,754)   (79,109)   (145,308) 
          
Loss per common share, basic and diluted$ (0.25) $ (0.99) $ (0.85) $ (1.81) 
          
Weighted average number of common shares, basic and diluted 102,280,234   80,534,351   93,485,656   80,370,383  
          
   Three months ended September 30, Nine months ended September 30,
   2017  2016  2017  2016 
          
Net loss$ (24,493) $ (78,312) $ (74,782) $ (140,981) 
Other comprehensive loss (Actuarial loss)  (7)   (8)   (21)   (23) 
Comprehensive loss$ (24,500) $ (78,320) $ (74,803) $ (141,004) 



CONDENSED CONSOLIDATED BALANCE SHEET DATA   
(in thousands of U.S. Dollars)   
        
   September 30, 2017  December 31, 2016*
ASSETS  (unaudited)  
        
Cash and cash equivalents$37,201 $98,142 
Other current assets 27,932  17,174 
Advances for vessels under construction and acquisitions and other vessel costs  46,863 
Vessels' net book value 1,495,711  1,403,912 
Other fixed assets, net 22,733  23,114 
Restricted cash 25,500  23,000 
Due from related parties, non-current 82,617  45,417 
Equity method investments 3,226  6,014 
Other non-current assets 7,338  5,027 
 Total assets $1,702,258 $1,668,663 
      
LIABILITIES AND STOCKHOLDERS' EQUITY    
      
Long-term debt, net of deferred financing costs$622,056 $598,181 
Other liabilities 19,031  13,893 
Total stockholders' equity 1,061,171  1,056,589 
 Total liabilities and stockholders' equity $1,702,258 $1,668,663 
      
*The balance sheet data have been derived from the audited consolidated financial statements at that date.


OTHER FINANCIAL DATA (unaudited)
   Three months ended September 30,  Nine months ended September 30,
   2017  2016   2017  2016  
          
Net Cash provided by / (used in) operating activities$ 8,251  $ (4,981) $ 11,172  $ (18,606) 
Net Cash provided by / (used in) investing activities  28    (737)   (165,684)   (46,295) 
Net Cash provided by / (used in) financing activities$ (13,351) $ (11,538) $ 96,071  $ 3,065  
Corporate Contact:
Ioannis Zafirakis
Director, Chief Operating Officer and Secretary
Telephone: + 30-210-9470100
Email: izafirakis@dianashippinginc.com
Website: www.dianashippinginc.com

Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net

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