Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2019

Tuesday, 30. July 2019 14:27

ATHENS, Greece, July 30, 2019 (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 $1.3 million and net loss attributed to common stockholders of $2.7 million for the second quarter of 2019, including a $2.8 million impairment loss. This compares to net income of $2.0 million and net income attributed to common stockholders of $0.5 million reported in the second quarter of 2018.

Time charter revenues were $55.4 million for the second quarter of 2019, compared to $53.4 million for the same period of 2018. 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 was partly offset by decreased revenues due to the sale of two vessels in December 2018 and three vessels in the first half of 2019.

Net income and net loss attributed to common stockholders for the six months ended June 30, 2019 amounted to $1.7 million and $1.2 million, respectively, including a $7.5 million impairment loss. This compares to a net loss and net loss attributed to common stockholders of $1.1 million and $4.0 million, respectively, for the same period of 2018. Time charter revenues were $115.7 million for the six months ended June 30, 2019, compared to $101.8 million for the same period of 2018.

 Fleet Employment Profile (As of July 26, 2019)
 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
 16 Panamax Bulk Carriers
-DANAEA$8,1005.00%Phaethon International Company AG7-Feb-191-Apr-191
 2001  75,106       
-DIONEA$10,3505.00%Ausca Shipping Limited, Hong Kong23-Jan-1816-Apr-192
 2001  75,172       
1NIREFSA$10,7503.75%Hudson Shipping Lines Incorporated11-Aug-181-Aug-19 - 11-Oct-193,4
 2001  75,311       
2OCEANISA$10,3505.00%Ausca Shipping Limited, Hong Kong16-Nov-181-Jan-20 - 31-Mar-205
 2001  75,211       
-THETISB$10,6503.75%Hudson Shipping Lines Incorporated16-Nov-1828-Jun-196
 2004  73,583       
3PROTEFSB$11,0003.75%Hudson Shipping Lines Incorporated19-Sep-184-Sep-19 - 19-Dec-19 
 2004  73,630       
4CALIPSOB$12,2005.00%Glencore Agriculture B.V., Rotterdam12-Mar-181-Aug-19 - 12-Sep-193,7
 2005  73,691       
5CLIOB$10,6005.00%Ausca Shipping Limited, Hong Kong10-Nov-1810-Sep-19 - 10-Dec-19 
 2005  73,691       
6NAIASB$10,0005.00%Phaethon International Company AG26-Jan-1926-Dec-20 - 10-Apr-21 
 2006  73,546       
7ARETHUSAB$12,6005.00%Glencore Agriculture B.V., Rotterdam27-Apr-182-May-19 
   $9,1505.00%Ausca Shipping Limited, Hong Kong2-May-192-May-20 - 2-Aug-20 
 2007  73,593       
-ERATOC$7,2505.00%Ausca Shipping Limited, Hong Kong27-Mar-1918-Apr-198
   $5,5005.00%Tongli Shipping Pte. Ltd.18-Apr-194-Jun-199,10
 2004  74,444       
8CORONISC$11,3005.00%CJ International Italy Societa Per Azioni10-Oct-1811-Aug-19 - 11-Nov-19 
 2006  74,381       
9MELIA $12,0005.00%United Bulk Carriers International S.A., Luxemburg28-Apr-1828-Sep-19 - 28-Dec-19 
 2005  76,225       
10ARTEMIS $12,6005.00%Ausca Shipping Limited, Hong Kong17-Sep-1817-Sep-19  17-Dec-19 
 2006   76,942       
11LETO $12,5005.00%Glencore Agriculture B.V., Rotterdam10-Jan-1831-May-19 
   $13,0005.00%Uniper Global Commodities SE, Düsseldorf31-May-191-May-20 - 1-Jul-20 
 2010  81,297       
12SELINAD$12,2505.00%BG Shipping Co., Limited, Hong Kong6-Feb-1815-Jul-1911
   $11,7505.00%Ausca Shipping Limited, Hong Kong15-Jul-1915-Feb-20 - 15-Apr-20 
 2010  75,700       
13MAERAD$9,4505.00%Glencore Agriculture B.V., Rotterdam27-Mar-1910-Apr-20 - 10-Jul-20 
 2013  75,403       
14ISMENE $12,1255.00%Koch Shipping Pte. Ltd., Singapore12-Dec-181-Jan-20 - 31-Mar-20 
 2013  77,901       
15CRYSTALIAE$10,5005.00%Glencore Agriculture B.V., Rotterdam2-Mar-192-May-20 - 2-Aug-20 
 2014  77,525       
16ATALANDIE$13,5005.00%Uniper Global Commodities SE, Düsseldorf27-Apr-189-Jul-1912
   $12,2505.00%9-Jul-199-Jun-20 - 24-Aug-20 
 2014  77,529       
 5 Kamsarmax Bulk Carriers
17MAIAF$13,3005.00%Glencore Agriculture B.V., Rotterdam12-Nov-181-Jan-20 - 31-Mar-20 
 2009  82,193       
18MYRSINIF$12,7505.00%Glencore Agriculture B.V., Rotterdam22-Dec-1822-Oct-19 - 22-Dec-19 
 2010  82,117       
19MEDUSAF$14,0004.75%Cargill International S.A., Geneva3-Sep-183-Oct-19 - 3-Dec-19 
 2010  82,194       
20MYRTOF$14,0004.75%Cargill International S.A., Geneva25-Apr-1818-Jul-19 
   $14,0004.75%18-Jul-193-Apr-20 - 18-Jun-20 
 2013  82,131       
21ASTARTE $14,2505.00%Glencore Agriculture B.V., Rotterdam16-Oct-1816-Dec-19 - 16-Mar-20 
 2013  81,513       
 5 Post-Panamax Bulk Carriers
22ALCMENE $11,5005.00%BG Shipping Co., Limited, Hong Kong21-Nov-1821-Oct-19 - 21-Jan-20 
 2010  93,193       
23AMPHITRITEG$12,7505.00%Uniper Global Commodities SE, Düsseldorf27-Jan-1927-Mar-20 - 27-Jun-2013
 2012  98,697       
24POLYMNIAG$16,0004.75%Cargill International S.A., Geneva9-Jul-189-Sep-19 - 9-Dec-19 
 2012  98,704       
25ELECTRAH$13,5005.00%Uniper Global Commodities SE, Düsseldorf19-Oct-1815-Sep-19 - 15-Dec-19 
 2013  87,150       
26PHAIDRAH$12,7005.00%Uniper Global Commodities SE, Düsseldorf13-Jan-1811-Apr-19 
   $10,8005.00% 11-Apr-1927-May-20 - 26-Aug-20 
 2013  87,146       
 14 Capesize Bulk Carriers
27NORFOLK $13,2505.00%SwissMarine Services S.A., Geneva1-Dec-171-Sep-19 - 1-Dec-19 
 2002  164,218       
28ALIKI $18,0005.00%SwissMarine Services S.A., Geneva9-Apr-189-Dec-19 - 9-Feb-20 
 2005  180,235       
29BALTIMORE $18,0505.00%Koch Shipping Pte. Ltd., Singapore6-Jun-1819-May-1914
   $15,0005.00% 19-May-194-Dec-20 - 3-Apr-21 
 2005  177,243       
30SALT LAKE CITY $9,7504.75%Cargill International S.A., Geneva24-Mar-1924-Nov-20 - 24-Feb-21 
 2005  171,810       
31SIDERIS GSI$15,3505.00%Berge Bulk Shipping Pte. Ltd., Singapore15-Dec-1815-Dec-19 - 30-Mar-20 
 2006  174,186       
32SEMIRIOI$20,0505.00%Pacific Bulk Cape Company Limited, Hong Kong1-Sep-1830-Jun-19 
   $16,0004.75%Cargill International S.A., Geneva30-Jun-1930-Sep-20 - 30-Dec-20 
 2007  174,261       
33BOSTONI$17,0005.00%EGPN Bulk Carrier Co., Limited, Hong Kong6-Dec-177-Jun-19 
   $15,3005.00%Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany7-Jun-191-Apr-21 - 30-Jun-21 
 2007  177,828       
34HOUSTONI$10,1255.00%Koch Shipping Pte. Ltd., Singapore17-Feb-1917-Apr-20 - 1-Aug-20 
 2009  177,729       
35NEW YORKI$16,0005.00%DHL Project & Chartering Limited, Hong Kong2-Feb-187-Jun-19 
   $15,5005.00%Singapore Marine Pte. LTD., Singapore7-Jun-197-Nov-20 - 22-Jan-21 
 2010  177,773       
36SEATTLEJ$16,0005.00%SwissMarine Services S.A., Geneva24-Dec-1824-Apr-20 - 24-Jul-20 
 2011  179,362       
37P. S. PALIOSJ$17,3505.00%Koch Shipping Pte. Ltd., Singapore24-May-185-Jun-19 
   $17,5005.00%SwissMarine Services S.A., Geneva5-Jun-1921-Jan-20 - 20-Mar-20 
 2013  179,134       
38G. P. ZAFIRAKISK$17,0005.00%SwissMarine Services S.A., Geneva31-Dec-1831-May-20 - 31-Aug-20 
 2014  179,492       
39SANTA BARBARAK$20,2504.75%Cargill International S.A., Geneva24-Apr-189-Oct-19 - 9-Dec-19 
 2015  179,426       
40NEW ORLEANS $21,0005.00%SwissMarine Services S.A., Geneva24-Mar-1810-Apr-19 
   $15,0004.75%Cargill International S.A., Geneva10-Apr-1926-Jul-20 - 25-Nov-20 
 2015  180,960       
 4 Newcastlemax Bulk Carriers
41LOS ANGELESL$13,2505.00%SwissMarine Services S.A., Geneva6-Mar-196-Jun-20 - 6-Sep-20 
 2012  206,104       
42PHILADELPHIAL$20,0005.00%Koch Shipping Pte. Ltd., Singapore18-Jun-183-Feb-20 - 18-May-20 
 2012  206,040       
43SAN FRANCISCOM$16,0005.00%Koch Shipping Pte. Ltd., Singapore5-Mar-195-Oct-20 - 20-Jan-21 
 2017  208,006       
44NEWPORT NEWSM$16,5005.00%SwissMarine Services S.A., Geneva25-Feb-1925-Jun-20 - 25-Sep-20 
 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 ''Danae'' sold and delivered to her new Owners on April 1, 2019.
2 ''Dione'' sold and delivered to her new Owners on April 18, 2019.
3 Based on latest information.
4 Vessel sold and expected to be delivered to her new Owners at the latest by October 30, 2019.
5 Vessel off hire for drydocking from May 27, 2019 to July 4, 2019.
6 ''Thetis'' sold and delivered to her new Owners on July 5, 2019.
7 Vessel off hire for unscheduled maintenance from May 1, 2019 to June 12, 2019.
8 Redelivery date based on an estimated time charter trip duration of about 22 days.
9 Charterers had the option to redeliver the vessel until June 2, 2019, for a charter rate of US$7,000, in case it exceeded the first twenty-nine (29) days.
10 ''Erato'' sold and delivered to her new Owners on June 6, 2019.
11 Vessel off hire for unscheduled maintenance from April 7, 2019 to April 10, 2019.
12 Vessel off hire for drydocking from June 8, 2019 to July 9, 2019.
13 Vessel off hire for unscheduled maintenance from April 30, 2019 to May 13, 2019.
14 Koch Shipping Pte. Ltd., Singapore has agreed to compensate the owners with the difference between the previous and the current charter rate for the early redelivery of the vessel on May 19, 2019, till the minimum agreed redelivery date, May 22, 2019.

Summary of Selected Financial & Other Data (unaudited)
   Three months ended June 30, Six months ended June 30,
   2019  2018  2019  2018 
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$55,385 $53,445 $115,686 $101,810 
 Voyage expenses 2,966  763  5,739  2,840 
 Vessel operating expenses 22,892  24,561  45,251  47,491 
 Net income/(loss) (1,299) 1,956  1,676  (1,096)
 Net income/(loss) attributed to common stockholders (2,741) 514  (1,208) (3,980)
 Average number of vessels 45.9  50.0  47.0  50.0 
 Number of vessels 45.0  50.0  45.0  50.0 
 Weighted average age of vessels 9.3  8.9  9.3  8.9 
 Ownership days 4,179  4,550  8,499  9,050 
 Available days 4,122  4,475  8,398  8,919 
 Operating days 4,054  4,383  8,317  8,818 
 Fleet utilization 98.4% 97.9% 99.0% 98.9%
 Time charter equivalent (TCE) rate (1)$12,717 $11,773 $13,092 $11,097 
 Daily vessel operating expenses (2)$5,478 $5,398 $5,324 $5,248 


(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, July 30, 2019.

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 13692315.

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, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s 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 the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s 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 the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

(See financial tables attached)

Expressed in thousands of U.S. Dollars, except share and per share data
   Three months ended June 30, Six months ended June 30,
   2019  2018  2019  2018 
 Time charter revenues$55,385 $53,445 $115,686 $101,810 
 Voyage expenses 2,966  763  5,739  2,840 
 Vessel operating expenses 22,892  24,561  45,251  47,491 
 Depreciation and amortization of deferred charges 12,279  13,050  24,728  26,027 
 General and administrative expenses  6,110  6,728  13,645  13,718 
 Management fees to related party 518  600  1,030  1,200 
 Impairment loss 2,769  -  7,519  - 
 Loss from sale of vessels 2,118  -  2,118  - 
 Other gain (7) (502) (67) (178)
 Operating income$5,740  8,245  15,723  10,712 
 Interest and finance costs (7,799) (7,346) (15,503) (14,293)
 Interest and other income 785  1,062  1,501  2,475 
 Gain/(loss) from equity method investment (25) (5) (45) 10 
 Total other expenses, net$(7,039) (6,289) (14,047) (11,808)
Net income/(loss)$(1,299)$1,956 $1,676 $(1,096)
Dividends on series B preferred shares (1,442) (1,442) (2,884) (2,884)
Net income/(loss) attributed to common stockholders (2,741) 514  (1,208) (3,980)
Loss per common share, basic and diluted$(0.03)$- $(0.01)$(0.04)
Weighted average number of common shares, basic and diluted 96,870,527  103,959,717  98,751,900  103,544,233 
   Three months ended June 30, Six months ended June 30,
   2019  2018  2019  2018 
Net income/(loss)$(1,299)$1,956 $1,676 $(1,096)
Other comprehensive loss (Actuarial loss) (9) (8) (18) (16)
Comprehensive income/(loss)$(1,308)$1,948 $1,658 $(1,112)

(in thousands of U.S. Dollars)  
   2019 2018 *
ASSETS  (unaudited)  
Cash and cash equivalents$121,419$126,825
Other current assets 23,359 15,147
Vessels, net 933,263 991,403
Other fixed assets, net 22,266 22,425
Restricted cash 23,082 24,582
Investments in related parties 3,219 3,263
Other non-current assets 3,636 4,151
 Total assets $1,130,244$1,187,796
Long-term debt, net of deferred financing costs$495,021$530,547
Other liabilities 25,841 29,565
Total stockholders' equity 609,382 627,684
 Total liabilities and stockholders' equity $1,130,244$1,187,796
*The balance sheet data have been derived from the audited consolidated financial statements at that date.

   Three months ended June 30,  Six months ended June 30,
   2019  2018  2019  2018 
Net cash provided by operating activities$14,830 $17,986 $32,952 $27,791 
Net cash provided by investment activities 17,140  17,135  20,140  47,325 
Net cash used in financing activities$(23,925)$(17,059)$(59,998)$(32,998)

Corporate Contact:
Ioannis Zafirakis
Director, Chief Strategy 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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