Diana Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2020
Monday, 23. November 2020 14:23
ATHENS, Greece, Nov. 23, 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 $13.2 million and a net loss attributed to common stockholders of $14.6 million for the third quarter of 2020, including a $6.8 million impairment loss which resulted from the agreement to sell the vessels Sideris G.S. and Coronis. This compares to net income of $1.8 million and net income attributed to common stockholders of $0.3 million reported in the third quarter of 2019.
Time charter revenues were $42.3 million for the third quarter of 2020, compared to $53.5 million for the same period of 2019. The decrease in time charter revenues was mainly due to the decrease in ownership days resulting from the sale of six vessels in 2019 and two vessels 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 nine months ended September 30, 2020 amounted to $126.8 million and net loss attributed to common stockholders amounted to $131.1 million, including a $102.5 million impairment loss and $1.1 million loss on sale of vessels. This compares to net income of $3.4 million and net loss attributed to common stockholders of $0.9 million for the same period of 2019 including a $7.5 million impairment loss and $2.8 million loss on sale of vessels. Time charter revenues were $127.1 million for the nine months ended September 30, 2020, compared to $169.2 million for the same period of 2019.
Fleet Employment Profile (As of November 20, 2020)
Diana Shipping Inc.’s fleet is employed as follows:
* 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 from June 11, 2020 to July 10, 2020.
2 Vessel off hire for unscheduled maintenance from August 28, 2020 to September 4, 2020.
3 Based on latest information.
4 "Arethusa" sold and delivered to her new owners on August 8, 2020.
5 Vessel sold and expected to be delivered to her new Owners at the latest by January 20, 2021.
6 Vessel on scheduled drydocking from April 28, 2020 to July 17, 2020.
7 Charter includes a one time ballast bonus payment of US$500,000.
8 Currently without an active charterparty. Vessel on scheduled drydocking.
9 Vessel off hire for unscheduled maintenance from July 2, 2020 to July 4, 2020.
10 Vessel off hire for drydocking from June 24, 2020 to August 1, 2020.
Summary of Selected Financial & Other Data (unaudited)
Three months ended September 30,
Nine months ended September 30,
2020
2019
2020
2019
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
Time charter revenues
$
42,341
$
53,534
$
127,076
$
169,220
Voyage expenses
2,944
3,315
10,505
9,054
Vessel operating expenses
21,318
21,981
63,441
67,232
Net income/(loss)
(13,151
)
1,770
(126,767
)
3,446
Net income/(loss) attributed to common stockholders
(14,593
)
328
(131,094
)
(880
)
FLEET DATA
Average number of vessels
40.4
43.8
41.1
45.9
Number of vessels
40.0
43.0
40.0
43.0
Weighted average age of vessels
10.0
9.4
10.0
9.4
Ownership days
3,719
4,027
11,251
12,526
Available days
3,670
3,960
10,695
12,358
Operating days
3,572
3,938
10,410
12,255
Fleet utilization
97.3
%
99.4
%
97.3
%
99.2
%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1)
$
10,735
$
12,682
$
10,900
$
12,961
Daily vessel operating expenses (2)
$
5,732
$
5,458
$
5,639
$
5,367
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, November 23, 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 13712525.
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.
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)
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 September 30,
Nine months ended September 30,
2020
2019
2020
2019
REVENUES:
Time charter revenues
$
42,341
$
53,534
$
127,076
$
169,220
EXPENSES:
Voyage expenses
2,944
3,315
10,505
9,054
Vessel operating expenses
21,318
21,981
63,441
67,232
Depreciation and amortization of deferred charges
9,399
12,113
32,682
36,841
General and administrative expenses
9,463
7,137
25,748
20,782
Management fees to related party
497
537
1,511
1,567
Vessel impairment charges
6,832
-
102,525
7,519
Loss on sale of vessels
7
716
1,085
2,835
Other loss/(gain)
271
(489
)
129
(556
)
Operating income/(loss)
$
(8,390
)
$
8,224
$
(110,550
)
$
23,946
OTHER INCOME / (EXPENSES):
Interest expense and finance costs
(4,874
)
(7,206
)
(16,883
)
(22,709
)
Interest income
55
754
694
2,255
Gain on extinguishment of debt
374
-
374
-
Loss from equity method investment
(316
)
(2
)
(402
)
(46
)
Total other expenses, net
$
(4,761
)
$
(6,454
)
$
(16,217
)
$
(20,500
)
Net income/(loss)
$
(13,151
)
$
1,770
$
(126,767
)
$
3,446
Dividends on series B preferred shares
(1,442
)
(1,442
)
(4,327
)
(4,326
)
Net income/(loss) attributed to common stockholders
(14,593
)
328
(131,094
)
(880
)
Loss per common share, basic and diluted
$
(0.17
)
$
-
$
(1.53
)
$
(0.01
)
Weighted average number of common shares, basic
85,745,586
93,359,239
85,923,171
96,934,593
Weighted average number of common shares, diluted
85,745,586
94,274,398
85,923,171
96,934,593
Three months ended September 30,
Nine months ended September 30,
2020
2019
2020
2019
Net income/(loss)
$
(13,151
)
$
1,770
$
(126,767
)
$
3,446
Other comprehensive loss (Actuarial loss)
(6
)
(9
)
(20
)
(27
)
Comprehensive income/(loss)
$
(13,157
)
$
1,761
$
(126,787
)
$
3,419
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands of U.S. Dollars)
September 30, 2020
December 31, 2019*
ASSETS
(unaudited)
Cash, cash equivalents and restricted cash
$
90,386
$
128,288
Other current assets
35,455
29,751
Vessels, net
731,433
882,297
Other fixed assets, net
21,736
22,077
Investments in related parties
28
1,680
Other non-current assets
9,290
7,187
Total assets
$
888,328
$
1,071,280
LIABILITIES AND STOCKHOLDERS' EQUITY
Long-term debt, net of deferred financing costs
$
430,890
$
474,951
Other liabilities
20,965
26,265
Total stockholders' equity
436,473
570,064
Total liabilities and stockholders' equity
$
888,328
$
1,071,280
*
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,
2020
2019
2020
2019
Net cash provided by/(used in) operating activities
$
(430
)
$
11,523
$
11,307
$
44,475
Net cash provided by investing activities
13,862
12,244
11,598
32,384
Net cash used in financing activities
$
(24,736
)
$
(18,914
)
$
(60,807
)
$
(78,912
)
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
Related Links:
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