Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2020

Monday, 27. July 2020 14:34

ATHENS, Greece, July 27, 2020 (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 $10.8 million and a net loss attributed to common stockholders of $12.2 million for the second quarter of 2020, including a $2.6 million impairment loss. This compares to a net loss of $1.3 million and net loss attributed to common stockholders of $2.7 million reported in the second quarter of 2019.

Time charter revenues were $41.0 million for the second quarter of 2020, compared to $55.4 million for the same period of 2019. The decrease in time charter revenues was mainly due to decreased revenues due to the sale of six vessels in 2019 and one vessel in 2020 and also due to decreased average time charter rates that the Company achieved for its vessels during the quarter.

Net loss for the six months ended June 30, 2020 amounted to $113.6 million and net loss attributed to common stockholders amounted to $116.5 million, including a $95.7 million impairment loss and $1.1 million loss from sale of vessels. This compares to net income of $1.7 million and net loss attributed to common stockholders of $1.2 million for the first half of 2019. Time charter revenues were $84.7 million for the first half of 2020, compared to $115.7 million for the same period of 2019.

 Fleet Employment Profile (As of July 24, 2020)
 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
 14 Panamax Bulk Carriers
1OCEANIS $9,2005.00%Phaethon International Company AG9-Jan-209-Jan-21 - 24-Mar-21 
 2001  75,211       
2PROTEFSA$9,9005.00%Phaethon International Company AG30-Nov-191-Jan-21 - 31-Mar-211,2
 2004  73,630       
3CALIPSOA$4,7505.00%Uniper Global Commodities SE, Düsseldorf13-Apr-2028-May-203
   $8,2505.00%28-May-2015-Oct-20 - 31-Dec-20 
 2005  73,691       
4NAIASA$10,0005.00%Phaethon International Company AG26-Jan-1926-Dec-20 - 10-Apr-21 
 2006  73,546       
5ARETHUSAA$9,1505.00%Ausca Shipping Limited, Hong Kong2-May-1926-May-20 
   $5,5005.00%Oldendorff  GmbH & Co. KG, Luebeck1-Jun-2026-Jul-204,5
 2007  73,593       
6CORONIS $8,0005.00%Koch Shipping Pte. Ltd., Singapore20-Feb-205-Nov-20 - 4-Jan-21 
 2006  74,381       
7MELIA $10,7504.75%Cargill International S.A., Geneva13-Feb-2028-Apr-206,7,8
 2005  76,225       
8ARTEMIS $10,1505.00%Koch Shipping Pte. Ltd., Singapore28-Nov-1913-Aug-20 - 28-Oct-20 
 2006  76,942       
9LETO $13,0005.00%Uniper Global Commodities SE, Düsseldorf31-May-1921-May-20 
   $9,0004.75%Cargill International S.A., Geneva21-May-2015-Jul-21 - 30-Sep-21 
 2010  81,297       
10SELINAB$4,7504.75%Cargill International S.A., Geneva27-Mar-2020-May-209
   $11,0005.00%ST Shipping and Transport Pte. Ltd., Singapore5-Jul-205-Jul-21 - 5-Sep-21 
 2010  75,700       
11MAERAB$9,4505.00%Glencore Agriculture B.V., Rotterdam27-Mar-1911-Jun-20 
   $8,6005.00%Ausca Shipping Limited, Hong Kong11-Jun-201-Jul-21 - 30-Sep-21 
 2013  75,403       
12ISMENE $10,8005.00%Phaethon International Company AG10-Jan-2010-Feb-21 - 25-Apr-21 
 2013  77,901       
13CRYSTALIAC$10,5005.00%Glencore Agriculture B.V., Rotterdam2-Mar-1922-May-20 
   $8,7505.00%22-May-201-Jul-21 - 30-Sep-21 
 2014  77,525       
14ATALANDIC$12,2505.00%Uniper Global Commodities SE, Düsseldorf9-Jul-1914-Jun-20 
   $9,3005.00%14-Jun-2014-Jul-21 - 14-Oct-21 
 2014  77,529       
 5 Kamsarmax Bulk Carriers
15MAIAD$11,2005.00%Aquavita International S.A.31-Jan-2031-Mar-21 - 15-Jun-21 
 2009  82,193       
16MYRSINID$11,5005.00%Ausca Shipping Limited, Hong Kong4-Dec-194-Jan-21 - 19-Mar-2110
 2010  82,117       
17MEDUSAD$11,0004.75%Cargill International S.A., Geneva16-Nov-191-Oct-20 - 16-Dec-20 
 2010  82,194       
18MYRTOD$14,0004.75%Cargill International S.A., Geneva18-Jul-193-Apr-20 
   $10,0004.75%3-Apr-201-Jul-21 - 15-Sep-21 
 2013  82,131       
19ASTARTE $11,7505.00%Aquavita International S.A.18-Jan-2018-Mar-21 - 2-Jun-21 
 2013  81,513       
 5 Post-Panamax Bulk Carriers
20ALCMENE $4,0004.75%Cargill International S.A., Geneva2-Apr-201-Jun-20 
   $8,5004.75%1-Jun-2017-Apr-21 - 2-Jul-21 
 2010  93,193       
21AMPHITRITEE$10,2505.00%SwissMarine Pte. Ltd., Singapore21-Mar-206-Apr-21 - 21-Jun-21 
 2012  98,697       
22POLYMNIAE$11,0004.75%Cargill International S.A., Geneva15-Nov-1915-Oct-20 - 30-Dec-20 
 2012  98,704       
23ELECTRAF$10,2505.00%Oldendorff Carriers GMBH & Co. KG, Lübeck21-Nov-1921-Oct-20 - 21-Dec-20 
 2013  87,150       
24PHAIDRAF$10,8005.00%Uniper Global Commodities SE, Düsseldorf11-Apr-1929-May-20 
   $9,4005.00%29-May-2029-Apr-21 - 29-Jul-2111
 2013  87,146       
 13 Capesize Bulk Carriers
25ALIKI $11,3005.00%Koch Shipping Pte. Ltd., Singapore23-Apr-201-Jan-21 - 15-Mar-2112
 2005  180,235       
26BALTIMORE $15,0005.00%Koch Shipping Pte. Ltd., Singapore19-May-194-Dec-20 - 3-Apr-2113
 2005  177,243       
27SALT LAKE CITY $9,7504.75%Cargill International S.A., Geneva24-Mar-1924-Nov-20 - 24-Feb-2114
 2005  171,810       
28SIDERIS GSG$12,7005.00%Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany7-Mar-2015-Oct-20 - 31-Dec-20 
 2006  174,186       
29SEMIRIOG$16,0004.75%Cargill International S.A., Geneva30-Jun-1930-Sep-20 - 30-Dec-20 
 2007  174,261       
30BOSTONG$15,3005.00%Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany7-Jun-191-Apr-21 - 30-Jun-21 
 2007  177,828       
31HOUSTONG$10,1255.00%Koch Shipping Pte. Ltd., Singapore17-Feb-1912-Apr-20 
   $6,2505.00%C Transport Maritime Ltd., Bermuda13-Apr-2013-May-20 
   $12,4005.00%13-May-201-Jul-21 - 30-Sep-21 
 2009  177,729       
32NEW YORKG$15,5005.00%Singapore Marine Pte. LTD., Singapore7-Jun-197-Nov-20 - 22-Jan-2115
 2010   177,773       
33SEATTLEH$16,0005.00%SwissMarine Services S.A., Geneva24-Dec-1824-Apr-20 
   $12,3005.00%Pacbulk Shipping Pte. Ltd., Singapore27-Apr-201-Oct-21 - 31-Dec-21 
 2011  179,362       
34P. S. PALIOSH$6,0005.00%C Transport Maritime Ltd., Bermuda24-Mar-2028-Apr-20 
   $12,0505.00%28-Apr-209-Apr-21 - 24-Jun-21 
 2013  179,134       
35G. P. ZAFIRAKISI$17,0005.00%SwissMarine Services S.A., Geneva31-Dec-1831-May-20 
   $13,2005.00%Koch Shipping Pte. Ltd., Singapore31-May-201-Oct-21 - 31-Dec-21 
 2014  179,492       
36SANTA BARBARAI$17,2505.00%Pacbulk Shipping Pte. Ltd., Singapore28-Dec-1928-Dec-20 - 28-Feb-21 
 2015  179,426       
37NEW ORLEANS $15,0004.75%Cargill International S.A., Geneva10-Apr-1910-Aug-20 - 25-Nov-2016
 2015  180,960       
 4 Newcastlemax Bulk Carriers
38LOS ANGELESJ$13,2505.00%SwissMarine Services S.A., Geneva6-Mar-196-Jun-20 
   $14,2505.00%Engelhart CTP Freight (Switzerland) SA6-Jun-201-Oct-21 - 31-Dec-21 
 2012  206,104       
39PHILADELPHIAJ$14,5005.00%BHP Billiton Freight Singapore Pte. Ltd5-Feb-205-Apr-21 - 5-Jul-21 
 2012  206,040       
40SAN FRANCISCOK$16,0005.00%Koch Shipping Pte. Ltd., Singapore5-Mar-195-Oct-20 - 20-Jan-21 
 2017  208,006       
41NEWPORT NEWSK$16,5005.00%SwissMarine Services S.A., Geneva25-Feb-1915-Aug-20 - 25-Sep-2016
 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.
**** 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 unscheduled maintenance from April 28, 2020 to May 6, 2020.
2 Vessel off hire from June 11, 2020 to July 10, 2020.
3 Vessel on scheduled drydocking from March 9, 2020 to April 13, 2020.
4 Redelivery date based on an estimated time charter trip duration of about 53 days.
5 Vessel sold and expected to be delivered to her new owners at the latest by August 31, 2020
6 Charter included a one-time gross ballast bonus payment of US$107,500.
7 Currently without an active charterparty.
8 Vessel on scheduled drydocking from April 28, 2020 to July 17, 2020.
9 Vessel on scheduled drydocking from May 20, 2020 to June 23, 2020.
10 Vessel off hire for drydocking from March 16, 2020 to May 17, 2020.
11 Vessel off hire for unscheduled maintenance from July 2, 2020 to July 4, 2020.
12 Vessel on scheduled drydocking from January 23, 2020 to April 15, 2020.
13 Vessel off hire for drydocking for about 40.8 days.
14 Vessel currently off hire for drydocking.
15 Vessel off hire for drydocking from February 18, 2020 to April 27, 2020.
16 Based on latest information.

Summary of Selected Financial & Other Data (unaudited)
   Three months ended June 30, Six months ended June 30,
   2020 2019 2020 2019
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$40,975 $55,385 $84,735 $115,686 
 Voyage expenses 3,827  2,966  7,561  5,739 
 Vessel operating expenses 20,806  22,892  42,123  45,251 
 Net income/(loss) (10,794) (1,299) (113,617) 1,676 
 Net loss attributed to common stockholders (12,236) (2,741) (116,501) (1,208)
 Average number of vessels 41.0  45.9  41.4  47.0 
 Number of vessels 41.0  45.0  41.0  45.0 
 Weighted average age of vessels 9.5  9.3  9.5  9.3 
 Ownership days 3,731  4,179  7,532  8,499 
 Available days 3,507  4,122  7,025  8,398 
 Operating days 3,446  4,054  6,838  8,317 
 Fleet utilization 98.3% 98.4% 97.3% 99.0%
 Time charter equivalent (TCE) rate (1)$10,593 $12,717 $10,986 $13,092 
 Daily vessel operating expenses (2)$5,577 $5,478 $5,593 $5,324 

Non-GAAP Measures

(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 Monday, July 27, 2020.

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 13706603.

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 severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations, personnel, and on the demand for seaborne transportation of bulk products; 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,
   2020  2019  2020  2019 
 Time charter revenues$40,975 $55,385 $84,735 $115,686 
 Voyage expenses 3,827  2,966  7,561  5,739 
 Vessel operating expenses 20,806  22,892  42,123  45,251 
 Depreciation and amortization of deferred charges 11,737  12,279  23,284  24,728 
 General and administrative expenses 6,739  6,110  16,285  13,645 
 Management fees to related party 497  518  1,014  1,030 
 Impairment loss 2,556  2,769  95,693  7,519 
 Loss from sale of vessels -  2,118  1,078  2,118 
 Other loss/(gain) 99  (7) (142) (67)
 Operating income/(loss)$(5,286)$5,740 $(102,161)$15,723 
 Interest and finance costs (5,655) (7,799) (12,009) (15,503)
 Interest income 203  785  639  1,501 
 Loss from equity method investment (56) (25) (86) (45)
 Total other expenses, net$(5,508)$(7,039)$(11,456)$(14,047)
Net income/(loss)$(10,794)$(1,299)$(113,617)$1,676 
Dividends on series B preferred shares (1,442) (1,442) (2,884) (2,884)
Net loss attributed to common stockholders (12,236) (2,741) (116,501) (1,208)
Loss per common share, basic and diluted$(0.14)$(0.03)$(1.35)$(0.01)
Weighted average number of common shares, basic and diluted 85,552,271  96,870,527  86,012,939  98,751,900 
   Three months ended June 30, Six months ended June 30,
   2020  2019  2020  2019 
Net income/(loss)$(10,794)$(1,299)$(113,617)$1,676 
Other comprehensive loss (Actuarial loss) (6) (9) (13) (18)
Comprehensive income/(loss)$(10,800)$(1,308)$(113,630)$1,658 

(in thousands of U.S. Dollars)  
   June 30, 2020 December 31, 2019*
ASSETS (unaudited)  
Cash, cash equivalents and restricted cash$101,690$128,288
Other current assets 28,535 29,751
Vessels, net 763,533 882,297
Other fixed assets, net 21,908 22,077
Investments in related parties 94 1,680
Other non-current assets 9,403 7,187
 Total assets $925,163$1,071,280
Long-term debt, net of deferred financing costs$454,275$474,951
Other liabilities 23,834 26,265
Total stockholders' equity 447,054 570,064
 Total liabilities and stockholders' equity $925,163$1,071,280
*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,
  2020  2019  2020  2019 
Net cash provided by operating activities$4,447 $14,830 $11,737 $32,952 
Net cash provided by/(used in) investment activities (1,100) 17,140  (2,264) 20,140 
Net cash used in financing activities$(12,857)$(23,925)$(36,071)$(59,998)
Corporate Contact:
Ioannis Zafirakis
Director, Interim Chief Financial Officer, Chief Strategy Officer, Treasurer 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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