Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2018

Thursday, 26. July 2018 13:45

ATHENS, Greece, July 26, 2018 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported net income of $2.0 million and net income attributed to common stockholders of $0.5 million for the second quarter of 2018, compared to a net loss of $23.8 million and a net loss attributed to common stockholders of $25.3 million reported in the second quarter of 2017.

Time charter revenues were $53.4 million for the second quarter of 2018, compared to $37.8 million for the same period of 2017. The increase in time charter revenues was due to increased average time charter rates that the Company achieved for its vessels during the quarter and increased ownership days resulting from the enlargement of the fleet.

Net loss and net loss attributed to common stockholders for the six months ended June 30, 2018 amounted to $1.1 million and $4.0 million, respectively. This compares to a net loss and net loss attributed to common stockholders of $50.3 million and $53.2 million, respectively, for the same period of 2017. Time charter revenues were $101.8 million for the six months ended June 30, 2018, compared to $69.0 million for the same period of 2017.


 Fleet Employment Profile (As of July 25, 2018)
 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$10,0005.00%Phaethon International Company AG22-Dec-1722-Jan-19 - 7-May-19 
 2001  75,106       
DIONEA$10,3505.00%Ausca Shipping Limited, Hong Kong23-Jan-1823-Mar-19 - 8-Jul-19 
 2001  75,172       
NIREFSA$9,4005.00%Jaldhi Overseas Pte. Ltd., Singapore5-May-1727-Jul-18 - 30-Aug-181,2
 2001  75,311       
ALCYONA$8,8005.00%Hudson Shipping Lines Incorporated20-Jul-177-Aug-18 - 18-Dec-182,3,4
 2001  75,247       
TRITONA$6,5005.00%Ausca Shipping Limited, Hong Kong8-Jun-178-Aug-18 - 23-Oct-18
 2001  75,336       
OCEANISA$7,0005.00%Ausca Shipping Limited, Hong Kong30-May-176-Aug-18 - 14-Nov-18
 2001  75,211       
THETISB$8,3505.00%Ausca Shipping Limited, Hong Kong14-Jul-176-Aug-18 - 14-Oct-18
 2004  73,583       
PROTEFSB$7,9005.00%Hudson Shipping Lines Incorporated24-Jun-174-Aug-18 - 13-Oct-18
 2004  73,630       
CALIPSOB$12,2005.00%Glencore Agriculture B.V., Rotterdam12-Mar-1828-May-19 - 12-Sep-19 
 2005  73,691       
10 CLIOB$8,5505.00%Phaethon International Company AG9-Jul-179-Aug-18 - 9-Nov-18 
 2005  73,691       
11 NAIASB$10,0005.00%Phaethon International Company AG26-Nov-1711-Feb-19 - 26-May-19 
 2006  73,546       
12 ARETHUSAB$7,2005.00%Noble Resources International Pte. Ltd., Singapore23-Jan-1727-Apr-18 
   $12,6005.00%Glencore Agriculture B.V., Rotterdam27-Apr-1827-Apr-19 - 27-Jul-19 
 2007  73,593       
13 ERATOC$10,5005.00%Phaethon International Company AG30-Dec-172-Mar-19 - 30-May-19 
 2004  74,444       
14 CORONISC$9,0005.00%Narina Maritime Ltd16-May-1730-Jul-18 - 5-Aug-18
 2006  74,381       
15 MELIA $9,5005.00%Nidera S.P.A., Roma19-Mar-1728-Apr-18
   $12,0005.00%United Bulk Carriers International S.A., Luxemburg28-Apr-1828-Sep-19 - 28-Dec-19 
 2005  76,225       
16 ARTEMIS $9,0005.00%Ausca Shipping Limited, Hong Kong8-Jul-175-Aug-18 - 8-Oct-18
 2006  76,942       
17 LETO $12,5005.00%Glencore Agriculture B.V., Rotterdam10-Jan-1810-May-19 - 25-Aug-19 
 2010  81,297       
18 SELINAD$12,2505.00%BG Shipping Co., Limited, Hong Kong6-Feb-186-Jun-19 - 6-Sep-19 
 2010  75,700       
19 MAERAD$11,9005.00%Unico Logistics Co., Ltd., Seoul19-Sep-174-Jul-18 
   $11,7505.00%ST Shipping and Transport Pte. Ltd., Singpore4-Jul-1820-Jan-19 - 4-Apr-19 
 2013  75,403       
20 ISMENE $12,0005.00%DHL Project & Chartering Limited, Hong Kong16-Sep-1716-Sep-18 - 16-Dec-18 
 2013  77,901       
21 CRYSTALIAE$11,1005.00%Glencore Agriculture B.V., Rotterdam3-Oct-173-Oct-18 - 18-Jan-19 
 2014  77,525       
22 ATALANDIE$5,3005.00%Glencore Grain B.V., Rotterdam26-Mar-1627-Apr-18 
   $13,5005.00%Uniper Global Commodities SE, Düsseldorf27-Apr-1827-Jun-19 - 27-Sep-19 
 2014  77,529       
 5 Kamsarmax Bulk Carriers
23 MAIAF$10,1255.00%Glencore Agriculture B.V., Rotterdam27-Jul-173-Aug-18 - 27-Oct-18
 2009  82,193       
24 MYRSINIF$8,6505.00%RWE Supply & Trading GmbH, Essen8-Jun-1731-Aug-18 - 31-Dec-18 
 2010  82,117       
25 MEDUSAF$10,0004.75%Cargill International S.A., Geneva6-Jul-174-Aug-18 - 6-Oct-18
 2010  82,194       
26 MYRTOF$8,0004.75%Cargill International S.A., Geneva17-Jan-1725-Apr-18
   $14,0004.75%25-Apr-1825-May-19 - 25-Jul-19 
 2013  82,131       
27 ASTARTE $9,0005.00%Glencore Agriculture B.V., Rotterdam12-Jun-1712-Aug-18 - 12-Nov-18 
 2013   81,513       
 5 Post-Panamax Bulk Carriers
28 ALCMENE $8,0004.75%Cargill International S.A., Geneva8-Jun-177-Aug-18 - 23-Oct-18
 2010  93,193       
29 AMPHITRITEG$11,1504.75%Cargill International S.A., Geneva28-Sep-1728-Oct-18 - 28-Jan-19 
 2012  98,697       
30 POLYMNIAG$10,1004.75%Cargill International S.A., Geneva15-Mar-179-Jul-18 
   $16,0004.75%9-Jul-189-Sep-19 - 9-Dec-19 
 2012  98,704       
31 ELECTRAH$8,0005.00%Uniper Global Commodities SE, Düsseldorf11-Jun-173-Aug-18 - 11-Nov-18
 2013  87,150       
32 PHAIDRAH$12,7005.00%Uniper Global Commodities SE, Düsseldorf13-Jan-1813-Jan-19 - 13-Apr-19
 2013  87,146       
 14 Capesize Bulk Carriers
33 NORFOLK $13,2505.00%SwissMarine Services S.A., Geneva1-Dec-171-Sep-19 - 1-Dec-19 
 2002  164,218       
34 ALIKI $10,3005.00%SwissMarine Services S.A., Geneva14-Feb-179-Apr-18 
   $18,0005.00%9-Apr-189-Dec-19 - 9-Feb-20 
 2005  180,235       
35 BALTIMORE $11,3004.75%Cargill International S.A., Geneva16-Feb-1728-May-18 
   $18,0505.00%Koch Shipping Pte. Ltd., Singapore6-Jun-1822-May-19 - 21-Aug-19 
 2005  177,243       
36 SALT LAKE CITY $9,0005.00%Uniper Global Commodities SE, Düsseldorf20-Jan-171-May-18 
   $16,2504.75%Cargill International S.A., Geneva1-May-181-Jan-19 - 1-Mar-19 
 2005  171,810       
37 SIDERIS GSI$13,0005.00%Rio Tinto Shipping (Asia) Pte., Ltd., Singapore21-Jun-178-Aug-18 - 21-Nov-18
 2006  174,186       
38 SEMIRIOI$14,1505.00%Koch Shipping Pte. Ltd., Singapore21-May-175-Aug-18 - 21-Sep-18
 2007  174,261       
39 BOSTONI$17,0005.00%EGPN Bulk Carrier Co., Limited, Hong Kong6-Dec-176-Apr-19 - 6-Jul-19 
 2007  177,828       
40 HOUSTONI$10,0005.00%SwissMarine Services S.A., Geneva17-Feb-179-May-18
   $19,0005.00%9-May-1825-Jan-19 - 24-Apr-19 
 2009  177,729       
41 NEW YORKI$16,0005.00%DHL Project & Chartering Limited, Hong Kong2-Feb-182-Jun-19 - 2-Sep-19 
 2010  177,773       
42 SEATTLEJ$11,7005.00%Koch Shipping Pte. Ltd., Singapore8-Feb-1730-Jul-182,9
 2011  179,362       
43 P. S. PALIOSJ$10,5505.00%Koch Shipping Pte. Ltd., Singapore27-Jan-1724-May-18 
   $17,3505.00%24-May-189-Jun-19 - 24-Aug-19 
 2013  179,134       
44 G. P. ZAFIRAKISK$15,0005.00%RWE Supply & Trading GmbH, Essen14-Aug-1729-Sep-18 - 14-Jan-19 
 2014  179,492       
45 SANTA BARBARAK$12,0004.75%Cargill International S.A., Geneva24-Jan-1724-Apr-18 
   $20,2504.75%24-Apr-189-Oct-19 - 9-Dec-19 
 2015  179,426       
46 NEW ORLEANS $21,0005.00%SwissMarine Services S.A., Geneva24-Mar-1824-Feb-19 - 24-Apr-19 
 2015  180,960       
 4 Newcastlemax Bulk Carriers
47 LOS ANGELESLBCI_2014 5TCs AVG + 14%5.00%SwissMarine Services S.A., Geneva22-Jan-1716-Apr-18 
   $19,1505.00%16-Apr-181-Jan-19 - 16-Apr-19 
 2012  206,104       
48 PHILADELPHIAL$15,5005.00%Koch Shipping Pte. Ltd., Singapore14-Mar-1713-May-1810,11
   $20,0005.00%18-Jun-183-Feb-20 - 18-May-20 
 2012  206,040       
49 SAN FRANCISCOM$11,7505.00%Koch Shipping Pte. Ltd., Singapore5-Jan-1714-May-18 
   $24,0005.00%14-May-184-Mar-19 - 24-May-19 
 2017  208,006       
50 NEWPORT NEWSMBCI_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 Vessel off-hire for drydocking from April 24, 2018 to May 13, 2018.
2 Based on latest information.
3 Vessel off-hire for drydocking from May 11, 2018 to May 30, 2018.
4 Vessel off hire for unscheduled maintenance from May 30, 2018 to July 10, 2018.
5 Since September 17, 2017, Charterers have changed to COFCO Agri Freight SA.
6 Charterers have agreed to pay the weighted average of the Baltic Panamax 4 T/C routes, as published by the Baltic Exchange on April 17, 2018 plus 15%, for the excess period commencing from April 17, 2018. If such a hire is less than the current rate, then the current rate of US$8,000 to apply.
7 Vessel off-hire for drydocking from April 22, 2018 to May 30, 2018.
8 The charter rate was US$5,150 for the first fifteen (15) days of the charter period.
9 The compensation for the overlapping period from July 23, 2018 till the actual redelivery date, which is beyond the maximum contractual period, is still pending to be agreed between Owners and Koch Shipping Pte. Ltd., Singapore.
10 Charterers have agreed to pay the weighted average of the Baltic Capesize 5 T/C routes, as published by the Baltic Exchange on May 2, 2018 plus 15%, for the excess period commencing from May 2, 2018.
11 Vessel on unscheduled maintenance from May 13, 2018 to June 18, 2018.



Summary of Selected Financial & Other Data (unaudited)
   Three months ended June 30, Six months ended June 30,
   2018 2017 2018 2017
          
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$53,445 $37,752 $101,810 $69,040 
 Voyage expenses 763  2,059  2,840  3,119 
 Vessel operating expenses 24,561  22,324  47,491  43,640 
 Net income/(loss) 1,956  (23,819) (1,096) (50,290)
 Net income/(loss) attributed to common stockholders 514  (25,261) (3,980) (53,174)
FLEET DATA
 Average number of vessels 50.0  49.4  50.0  48.6 
 Number of vessels 50.0  51.0  50.0  51.0 
 Weighted average age of vessels 8.9  7.9  8.9  7.9 
 Ownership days 4,550  4,491  9,050  8,804 
 Available days 4,475  4,367  8,919  8,643 
 Operating days 4,383  4,271  8,818  8,472 
 Fleet utilization 97.9% 97.8% 98.9% 98.0%
AVERAGE DAILY RESULTS
 Time charter equivalent (TCE) rate (1)$11,773 $8,173 $11,097 $7,627 
 Daily vessel operating expenses (2)$5,398 $4,971 $5,248 $4,957 

_____________________

(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 Thursday, July 26, 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 13681280.

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 INCOME/(LOSS)
          
   Three months ended June 30, Six months ended June 30,
   2018 2017 2018 2017
          
REVENUES:        
 Time charter revenues$53,445 $37,752 $101,810 $69,040 
          
EXPENSES:        
 Voyage expenses 763  2,059  2,840  3,119 
 Vessel operating expenses 24,561  22,324  47,491  43,640 
 Depreciation and amortization of deferred charges 13,050  21,646  26,027  42,719 
 General and administrative expenses  6,728  6,651  13,718  12,438 
 Management fees to related party 600  440  1,200  861 
 Other loss/(gain) (502) 176  (178) 245 
 Operating income/(loss)8,245  (15,544) 10,712  (33,982)
          
OTHER INCOME / (EXPENSES):        
 Interest and finance costs (7,346) (6,687) (14,293) (13,076)
 Interest and other income 1,062  928  2,475  1,568 
 Gain/(loss) from equity method investments (5) (2,516) 10  (4,800)
 Total other expenses, net (6,289) (8,275) (11,808) (16,308)
          
Net income / (loss)$1,956 $(23,819)$(1,096)$(50,290)
          
Dividends on series B preferred shares (1,442) (1,442) (2,884) (2,884)
          
Net income / (loss) attributed to common stockholders  514   (25,261)  (3,980)  (53,174)
          
Earnings / (loss) per common share, basic and diluted$ - $ (0.26)$ (0.04)$ (0.60)
          
Weighted average number of common shares, basic and diluted 103,959,717  96,691,952  103,544,233  89,015,484 
          
   Three months ended June 30, Six months ended June 30,
   2018  2017  2018  2017 
         (audited)
Net income/(loss)$ 1,956 $ (23,819)$ (1,096)$ (50,290)
Other comprehensive loss (Actuarial loss)  (8)  (7)  (16)  (14)
Comprehensive income/(loss)$ 1,948 $ (23,826)$ (1,112)$ (50,304)



CONDENSED CONSOLIDATED BALANCE SHEET DATA   
(in thousands of U.S. Dollars)  
       
   June 30, 2018  December 31, 2017*
ASSETS (unaudited)  
       
Cash and cash equivalents$82,345$40,227
Due from related parties 33,953 82,660
Other current assets 17,106 15,874
Vessels, net of depreciation 1,030,371 1,053,578
Other fixed assets, net 22,499 22,650
Restricted cash 25,582 25,582
Investments in related parties 3,259 3,249
Other non-current assets 3,878 2,902
 Total assets $1,218,993$1,246,722
      
LIABILITIES AND STOCKHOLDERS' EQUITY    
      
Long-term debt, net of deferred financing costs$571,916$601,384
Other liabilities 22,654 20,580
Total stockholders' equity 624,423 624,758
 Total liabilities and stockholders' equity $1,218,993$1,246,722
      
*The balance sheet data have been derived from the audited consolidated financial statements at that date.


OTHER FINANCIAL DATA (unaudited)
   Three months ended June 30,  Year ended June 30,
   2018 2017  2018 2017 
          
Net Cash provided by operating activities$17,986 $3,513 $27,791 $2,921 
Net Cash provided by / (used in) investing activities 17,135  (107,691) 47,325  (165,712)
Net Cash provided by / (used in) financing activities$(17,059)$63,749 $(32,998)$109,422 
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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