Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2017

Thursday, 22. February 2018 14:30

ATHENS, Greece, Feb. 22, 2018 (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 $436.9 million and net loss attributed to common stockholders of $438.4 million for the fourth quarter of 2017, including a $422.5 million impairment loss. Accordingly, for the fourth quarter ended December 31, 2017, net loss and net loss attributed to common stockholders, adjusted for impairment, amounted to $14.5 million and $15.9 million, respectively1. For the fourth quarter of 2016, net loss and net loss attributed to common stockholders amounted to $23.3 million and $24.7 million, respectively.

Time charter revenues were $48.9 million for the fourth quarter of 2017, compared to $28.0 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 year ended December 31, 2017 amounted to $511.7 million and $517.5 million, respectively. This compares to a net loss and net loss attributed to common stockholders of $164.2 million and $170.0 million, respectively, for the same period of 2016. Time charter revenues were $161.9 million for the year ended December 31, 2017, compared to $114.3 million for the same period of 2016.

1 See the reconciliation of adjusted net loss and net loss attributed to common stockholders to net loss and net loss attributed to common stockholders and adjusted loss per share to loss per share included in this release.

 Fleet Employment Profile (As of February 22, 2018)
 Diana Shipping Inc.’s fleet is employed as follows:
(USD Per
Date to
Redelivery Date to Owners****Notes
 22 Panamax Bulk Carriers
DANAEA$7,7505.00%Phaethon International
   $10,0005.00%Company AG22-Dec-1722-Jan-19 - 7-May-19 
 2001  75,106       
DIONEA$7,0505.00%Caravel Shipping Limited, Hong
   $10,3505.00%Ausca Shipping Limited, Hong
23-Jan-1823-Mar-19 - 8-Jul-19 
 2001  75,172       
NIREFSA$9,4005.00%Jaldhi Overseas Pte. Ltd.,
5-May-175-Jun-18 - 5-Sep-18 
 2001  75,311       
ALCYONA$8,8005.00%Hudson Shipping Lines
20-Jul-1720-Jul-18 - 20-Oct-18 
 2001  75,247       
TRITONA$6,5005.00%Ausca Shipping Limited, Hong
8-Jun-178-Jul-18 - 23-Oct-18 
 2001  75,336       
OCEANISA$7,0005.00%Ausca Shipping Limited, Hong
30-May-1730-Jul-18 - 14-Nov-18 
 2001  75,211       
THETISB$8,3505.00%Ausca Shipping Limited, Hong
14-Jul-1714-Jul-18 - 14-Oct-18 
 2004  73,583       
PROTEFSB$7,9005.00%Hudson Shipping Lines
24-Jun-1724-Jun-18 - 9-Oct-18 
 2004  73,630       
CALIPSOB$9,0005.00%Transgrain Shipping B.V.,
14-Mar-1723-Feb-18 - 30-Mar-18
 2005  73,691       
10 CLIOB$8,5505.00%Phaethon International
Company AG
9-Jul-179-Aug-18 - 9-Nov-18 
 2005  73,691       
11 NAIASB$7,5005.00%Glencore Agriculture B.V.,
   $10,0005.00%Phaethon International
Company AG
26-Nov-1711-Feb-19 - 26-May-19 
 2006  73,546       
12 ARETHUSAB$7,2005.00%Noble Resources International
Pte. Ltd., Singapore
23-Jan-171-Mar-18 - 23-Mar-182,4
 2007  73,593       
13 ERATOC$7,2505.00%Phaethon International
Company AG
   $10,5005.00%30-Dec-172-Mar-19 - 30-May-19 
 2004  74,444       
14 CORONISC$9,0005.00%Narina Maritime Ltd16-May-1716-Apr-18 - 16-Jul-18 
 2006  74,381       
15 MELIA $9,5005.00%Nidera S.P.A., Roma19-Mar-1727-Feb-18 - 4-May-18
 2005  76,225       
16 ARTEMIS $9,0005.00%Ausca Shipping Limited, Hong
8-Jul-178-Jul-18 - 8-Oct-18 
 2006  76,942       
17 LETO $7,7505.00%Glencore Agriculture B.V.,
   $12,5005.00%10-Jan-1810-May-19 - 25-Aug-19 
 2010  81,297       
18 SELINAD$7,1005.00%BG Shipping Co., Limited, Hong
   $12,2505.00%6-Feb-186-Jun-19 - 6-Sep-19 
 2010  75,700       
19 MAERAD$11,9005.00%Unico Logistics Co., Ltd., Seoul19-Sep-1719-Jun-18 - 19-Aug-18 
 2013  75,403       
20 ISMENE $12,0005.00%DHL Project & Chartering
Limited, Hong Kong
16-Sep-1716-Sep-18 - 16-Dec-18 
 2013  77,901       
21 CRYSTALIAE$6,2505.00%SwissMarine Services S.A.,
   $11,1005.00%Glencore Agriculture B.V.,
3-Oct-173-Oct-18 - 18-Jan-19 
 2014  77,525       
22 ATALANDIE$5,3005.00%Glencore Grain B.V., Rotterdam26-Mar-1625-Feb-18 - 26-Apr-18
 2014  77,529       
 5 Kamsarmax Bulk Carriers
23 MAIAF$10,1255.00%Glencore Agriculture B.V.,
27-Jul-1727-Jul-18 - 27-Oct-18 
 2009  82,193       
24 MYRSINIF$8,6505.00%RWE Supply & Trading GmbH,
8-Jun-1731-Aug-18 - 31-Dec-18 
 2010  82,117       
25 MEDUSAF$10,0004.75%Cargill International S.A.,
6-Jul-176-Jul-18 - 6-Oct-18 
 2010  82,194       
26 MYRTOF$8,0004.75%Cargill International S.A.,
17-Jan-1726-Feb-18 - 17-Apr-182,7
 2013  82,131       
27 ASTARTE $9,0005.00%Glencore Agriculture B.V.,
12-Jun-1712-Aug-18 - 12-Nov-18 
 2013  81,513       
 5 Post-Panamax Bulk Carriers
28 ALCMENE $8,0004.75%Cargill International S.A.,
8-Jun-178-Jul-18 - 23-Oct-18 
 2010  93,193       
29 AMPHITRITEG$11,1504.75%Cargill International S.A.,
28-Sep-1728-Oct-18 - 28-Jan-19 
 2012   98,697       
30 POLYMNIAG$10,1004.75%Cargill International S.A.,
15-Mar-1731-Mar-18 - 15-Jul-18 
 2012  98,704       
31 ELECTRAH$8,0005.00%Uniper Global Commodities SE,
11-Jun-1711-Jul-18 - 11-Nov-18 
 2013  87,150       
32 PHAIDRAH$7,7505.00%Jera Trading Singapore Pte. Ltd.19-May-1713-Jan-18
   $12,7005.00%Uniper Global Commodities SE,
13-Jan-1813-Jan-19 - 13-Apr-19 
 2013  87,146       
 14 Capesize Bulk Carriers
33 NORFOLK $12,0005.00%Trafigura Maritime Logistics Pte.
Ltd., Singapore
   $13,2505.00%SwissMarine Services S.A.,
1-Dec-171-Sep-19 - 1-Dec-19 
 2002  164,218       
34 ALIKI $10,3005.00%SwissMarine Services S.A.,
14-Feb-1725-Feb-18 - 14-Apr-18
 2005  180,235       
35 BALTIMORE $11,3004.75%Cargill International S.A.,
16-Feb-1716-Mar-18 - 1-Jul-18 
 2005  177,243       
36 SALT LAKE CITY $9,0005.00%Uniper Global Commodities SE,
20-Jan-171-Mar-18 - 20-May-18
 2005  171,810       
37 SIDERIS GSI$13,0005.00%Rio Tinto Shipping (Asia) Pte.,
Ltd., Singapore
21-Jun-1721-Jul-18 - 21-Nov-18 
 2006  174,186       
38 SEMIRIOI$14,1505.00%Koch Shipping Pte. Ltd.,
21-May-1721-May-18 - 21-Sep-18 
 2007  174,261       
39 BOSTONI$13,0004.75%Clearlake Shipping Pte. Ltd.,
   $17,0005.00%EGPN Bulk Carrier Co., Limited,
Hong Kong
6-Dec-176-Apr-19 - 6-Jul-19 
 2007  177,828       
40 HOUSTONI$10,0005.00%SwissMarine Services S.A.,
17-Feb-172-Mar-18 - 17-May-1811 
 2009  177,729       
41 NEW YORKI$14,4505.00%Koch Shipping Pte. Ltd.,
   $16,0005.00%DHL Project & Chartering
Limited, Hong Kong
2-Feb-182-Jun-19 - 2-Sep-19 
 2010  177,773       
42 SEATTLEJ$11,7005.00%Koch Shipping Pte. Ltd.,
8-Feb-178-Apr-18 - 23-Jul-18 
 2011  179,362       
43 P. S. PALIOSJ$10,5505.00%Koch Shipping Pte. Ltd.,
27-Jan-1728-Feb-18 - 11-Jun-18
 2013  179,134       
44 G. P. ZAFIRAKISK$15,0005.00%RWE Supply & Trading GmbH,
14-Aug-1729-Sep-18 - 14-Jan-19 
 2014  179,492       
45 SANTA BARBARAK$12,0004.75%Cargill International S.A.,
24-Jan-1727-Feb-18 - 24-Apr-18
 2015  179,426       
46 NEW ORLEANS $11,2505.00%Koch Shipping Pte. Ltd.,
10-Dec-1624-Feb-18 - 10-Apr-18
 2015  180,960       
 4 Newcastlemax Bulk Carriers
+ 14%
5.00%SwissMarine Services S.A.,
22-Jan-1724-Feb-18 - 22-Apr-18
 2012  206,104       
48 PHILADELPHIAL$15,5005.00%Koch Shipping Pte. Ltd.,
14-Mar-1726-Feb-18 - 29-Apr-18
 2012  206,040       
49 SAN FRANCISCOM$11,7505.00%Koch Shipping Pte. Ltd.,
5-Jan-1728-Feb-18 - 20-May-18
 2017  208,006       
+ 24%
5.00%SwissMarine Services S.A.,
10-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 The charter rate was US$7,200 for the first ninety (90) days of the charter period.
2 Based on latest information.
3 Vessel on scheduled drydocking from November 11, 2017 to November 26, 2017.
4 Vessel currently off-hire for drydocking.
5 Since September 17, 2017, Charterers have changed to COFCO Agri Freight SA.
6 The charter rate was US$4,500 for the first thirty (30) days of the charter period.
7 Vessel off-hire for drydocking from December 24, 2017 to January 12, 2018.
8 Charterers have agreed to pay the weighted average of the 4 T/C routes, as published by the Baltic Exchange on January 3, 2018 plus 12%, for the excess period commencing from January 3, 2018.
9 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
10 The compensation for the overlapping period from November 20, 2017 to December 6, 2017, which is beyond the maximum contractual period, is still pending to be agreed between Owners and Clearlake Shipping Pte. Ltd., Singapore.
11 The charter rate was US$5,150 for the first fifteen (15) days of the charter period.
12 Charterers have agreed to pay the weighted average of the 5 T/C routes, as published by the Baltic Exchange on January 2, 2018 plus 10%, for the excess period commencing from December 29, 2017.

Summary of Selected Financial & Other Data (unaudited)
   Three months ended December 31, Year ended December 31,
   2017 2016 2017 2016
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$48,936$28,020$161,897$114,259
 Voyage expenses 3,020 1,387 8,617 13,826
 Vessel operating expenses 24,021 20,863 90,358 85,955
 Net loss (436,932) (23,256) (511,714) (164,237)
 Net loss attributed to common stockholders (438,374) (24,698) (517,483) (170,006)
 Average number of vessels 50.3 46.0 49.6 45.2
 Number of vessels 50.0 46.0 50.0 46.0
 Weighted average age of vessels 8.4 8.2 8.4 8.2
 Ownership days 4,624 4,232 18,119 16,542
 Available days 4,615 4,215 17,890 16,447
 Operating days 4,562 4,210 17,566 16,354
 Fleet utilization 98.9% 99.9% 98.2% 99.4%
 Time charter equivalent (TCE) rate (1)$9,949$6,319$8,568 $6,106
 Daily vessel operating expenses (2)$5,195$4,930$4,987 $5,196
(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.

 Non-GAAP Measures

This press release includes a discussion of net loss and loss per share adjusted for impairment losses as identified in the reconciliations provided below. The Company believes that discussion of these additional non-GAAP measures provides investors with meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance. The following shows the difference between net loss to adjusted net loss, and loss per share to adjusted loss per share for the three months ended December 31, 2017 and 2016 (in thousands, except per share amounts):

  Three months ended December 31,
  2017 2016
Adjusted net loss and net loss attributed to common stockholders    
Net loss$ (436,932)$ (23,256)
Impairment loss  422,466   -  
Adjusted net loss$ (14,466)$ (23,256)
Dividends on series B preferred shares (1,442)  (1,442)
Adjusted net loss attributed to common stockholders$ (15,908)$ (24,698)
Adjusted loss per share    
Loss per common share, basic and diluted$ (4.28)$ (0.31)
Impairment loss  4.13   -  
Adjusted loss per share, basic and diluted$ (0.15)$ (0.31)


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 Thursday, February 22, 2018.

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 13675888.

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)

Expressed in thousands of U.S. Dollars, except share and per share data
   Three months ended December 31, Year ended December 31,
   2017 2016 2017 2016
 Time charter revenues$48,936$28,020$161,897$114,259
 Voyage expenses 3,020 1,387 8,617 13,826
 Vessel operating expenses 24,021 20,863 90,358 85,955
 Depreciation and amortization of deferred charges  21,920 20,638 87,003 81,578
 General and administrative expenses   8,157 6,792 26,332 25,510
 Management fees to related party 542 384 1,883 1,464
 Impairment loss 422,466 - 442,274 -
 Insurance recoveries, net of other loss 482 - (10,879) -
 Gain on contract termination - (5,500) - (5,500)
 Other (income)/loss 9 (275) 296 (253)
 Operating loss(431,681) (16,269) (483,987) (88,321)
 Interest and finance costs (6,754) (5,640) (26,628) (21,949)
 Interest and other income 1,480 773 4,508  2,410
 Loss from equity method investments 23 (2,120) (5,607) (56,377)
 Total other expenses, net (5,251) (6,987) (27,727) (75,916)
Net loss$(436,932)$(23,256)$(511,714)$(164,237)
Dividends on series B preferred shares (1,442) (1,442) (5,769) (5,769)
Net loss attributed to common stockholders (438,374) (24,698) (517,483) (170,006)
Loss per common share, basic and diluted$(4.28)$(0.31)$(5.41)$(2.11)
Weighted average number of common shares, basic and diluted 102,394,183 80,653,373 95,731,093  80,441,517
   Three months ended December 31, Year ended December 31,
   2017 2016 2017 2016
Net loss$(436,932)$(23,256)$(511,714)$(164,237)
Other comprehensive income/(loss) (Actuarial gain/(loss)) 130 (61) 109  (84)
Comprehensive loss$(436,802)$(23,317)$(511,605)$(164,321)

(in thousands of U.S. Dollars)    
   2017  2016*
ASSETS  (unaudited)   
Cash and cash equivalents $40,227$98,142
Other current assets 98,534 17,174
Advances for vessels under construction and acquisitions and other vessel costs - 46,863
Vessels, net of depreciation 1,053,578 1,403,912
Other fixed assets, net 22,650 23,114
Restricted cash 25,582 23,000
Due from related parties, non-current - 45,417
Investments in related parties 3,249 6,014
Other non-current assets 2,902 5,027
 Total assets $1,246,722$1,668,663
Long-term debt, net of deferred financing costs$601,384$598,181
Other liabilities 20,580 13,893
Total stockholders' equity 624,758 1,056,589
 Total liabilities and stockholders' equity $1,246,722$1,668,663
*   The balance sheet data have been derived from the audited consolidated financial statements at that date.

   Three months ended December 31,  Year ended December 31,
   2017 2016  2017 2016 
Net Cash provided by / (used in) operating activities $12,241$(2,392)$23,413$(20,998)
Net Cash provided by / (used in) investing activities  13,351 4,676 (152,333) (41,619)
Net Cash provided by / (used in) financing activities $(22,484)$(12,524)$73,587$(9,459)

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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