Diana Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2019

Monday, 02. December 2019 14:29

ATHENS, Greece, Dec. 02, 2019 (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 $1.8 million and net income attributed to common stockholders of $0.3 million for the third quarter of 2019. This compares to net income of $14.8 million and net income attributed to common stockholders of $13.3 million reported in the third quarter of 2018.

Time charter revenues were $53.5 million for the third quarter of 2019, compared to $61.5 million for the same period of 2018. The decrease in time charter revenues was mainly due to decreased revenues due to the sale of two vessels in December 2018 and five vessels during the nine months ended September 30, 2019 and decreased average time charter rates that the Company achieved for its vessels during the quarter.

Net income for the nine months ended September 30, 2019 amounted to $3.4 million and net loss attributed to common stockholders amounted to $0.9 million, including a $7.5 million impairment loss. This compares to net income and net income attributed to common stockholders of $13.7 million and $9.3 million, respectively, for the same period of 2018. Time charter revenues were $169.2 million for the nine months ended September 30, 2019, compared to $163.3 million for the same period of 2018.

  
 Fleet Employment Profile (As of November 28, 2019)
 Diana Shipping Inc.’s fleet is employed as follows:
          
 Vessel
Sister
Ships*
Gross Rate
(USD Per
Day)
Com**CharterersDelivery Date
to
Charterers***
Redelivery Date
to
Owners****
Notes
 BUILT   DWT       
 14 Panamax Bulk Carriers
 NIREFSA$10,7503.75%Hudson Shipping Lines Incorporated11-Aug-1829-Aug-191
 2001   75,311       
1OCEANISA$10,3505.00%Ausca Shipping Limited, Hong Kong16-Nov-181-Jan-20 - 31-Mar-202
 2001   75,211       
2PROTEFSB$11,0003.75%Hudson Shipping Lines Incorporated19-Sep-1829-Nov-193
    $9,9005.00%Phaethon International Company AG29-Nov-191-Jan-21 - 31-Mar-214
 2004   73,630       
3CALIPSOB$12,2005.00%Glencore Agriculture B.V., Rotterdam12-Mar-1823-Sep-195
    $15,4005.00%Crystal Sea Shipping Co., Limited1-Nov-1926-Dec-196
 2005   73,691       
 CLIOB$10,6005.00%Ausca Shipping Limited, Hong Kong10-Nov-185-Nov-197
 2005   73,691       
4NAIASB$10,0005.00%Phaethon International Company AG26-Jan-1926-Dec-20 - 10-Apr-21 
 2006   73,546       
5ARETHUSAB$9,1505.00%Ausca Shipping Limited, Hong Kong2-May-192-May-20 - 2-Aug-20 
 2007     73,593       
6CORONIS  $11,3005.00%CJ International Italy Societa Per Azioni10-Oct-1810-Nov-19 
    $12,0005.00%Dampskibsselskabet Norden A/S, Copenhagen10-Nov-1910-Dec-198
 2006   74,381       
7MELIA $12,0005.00%United Bulk Carriers International S.A., Luxemburg28-Apr-1822-Nov-199
 2005     76,225       
8ARTEMIS $12,6005.00%Ausca Shipping Limited, Hong Kong17-Sep-1828-Nov-1910
 2006     76,942       
9LETO $13,0005.00%Uniper Global Commodities SE, Düsseldorf31-May-191-May-20 - 1-Jul-20 
 2010     81,297       
10SELINAC$12,2505.00%BG Shipping Co., Limited, Hong Kong6-Feb-1815-Jul-19 
    $11,7505.00%Ausca Shipping Limited, Hong Kong15-Jul-1915-Feb-20 - 15-Apr-20 
 2010     75,700       
11MAERAC$9,4505.00%Glencore Agriculture B.V., Rotterdam27-Mar-1910-Apr-20 - 10-Jul-20 
 2013     75,403       
12ISMENE $12,1255.00%Koch Shipping Pte. Ltd., Singapore12-Dec-181-Jan-20 - 31-Mar-20 
 2013     77,901       
13CRYSTALIAD$10,5005.00%Glencore Agriculture B.V., Rotterdam2-Mar-192-May-20 - 2-Aug-20 
 2014   77,525       
14ATALANDID$13,5005.00%Uniper Global Commodities SE, Düsseldorf27-Apr-189-Jul-1911
    $12,2505.00%9-Jul-199-Jun-20 - 24-Aug-20 
 2014   77,529       
 5 Kamsarmax Bulk Carriers
15MAIAE$13,3005.00%Glencore Agriculture B.V., Rotterdam12-Nov-181-Jan-20 - 31-Mar-2012
 2009     82,193       
16MYRSINI E$12,7505.00%Glencore Agriculture B.V., Rotterdam22-Dec-186-Dec-1910
 2010     82,117       
17MEDUSAE$14,0004.75%Cargill International S.A., Geneva3-Sep-1815-Nov-19 
    $11,0004.75%16-Nov-191-Oct-20 - 16-Dec-20 
 2010     82,194       
18MYRTOE$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       
19ASTARTE $14,2505.00%Glencore Agriculture B.V., Rotterdam16-Oct-1816-Dec-19 - 16-Mar-20 
 2013     81,513       
 5 Post-Panamax Bulk Carriers
20ALCMENE $11,5005.00%BG Shipping Co., Limited, Hong Kong21-Nov-1816-Nov-19 
    $9,5005.00%Oriental Bulk Shipping PTE. LTD16-Nov-1926-Dec-1913
 2010     93,193       
21AMPHITRITEF$12,7505.00%Uniper Global Commodities SE, Düsseldorf27-Jan-1927-Mar-20 - 27-Jun-20 
 2012     98,697       
22POLYMNIAF$16,0004.75%Cargill International S.A., Geneva9-Jul-1815-Nov-19 
    $11,0004.75%15-Nov-1915-Oct-20 - 30-Dec-20 
 2012   98,704       
23ELECTRAG$13,5005.00%Uniper Global Commodities SE, Düsseldorf19-Oct-1818-Nov-19 
    $10,2505.00%Oldendorff Carriers GMBH & Co. KG, Lübeck21-Nov-1921-Oct-20 - 21-Dec-20 
 2013   87,150       
24PHAIDRAG$10,8005.00%Uniper Global Commodities SE, Düsseldorf11-Apr-1927-May-20 - 26-Aug-20 
 2013   87,146       
 14 Capesize Bulk Carriers
25NORFOLK $13,2505.00%SwissMarine Services S.A., Geneva1-Dec-172-Nov-19 
    $17,7505.00%Koch Shipping Pte. Ltd., Singapore2-Nov-1920-Feb-20 - 20-Apr-20 
 2002   164,218       
26ALIKI $18,0005.00%SwissMarine Services S.A., Geneva9-Apr-189-Dec-19 - 9-Feb-20 
 2005   180,235       
27BALTIMORE $15,0005.00%Koch Shipping Pte. Ltd., Singapore19-May-194-Dec-20 - 3-Apr-21 
 2005   177,243       
28SALT LAKE CITY $9,7504.75%Cargill International S.A., Geneva24-Mar-1924-Nov-20 - 24-Feb-21 
 2005   171,810       
29SIDERIS GSH$15,3505.00%Berge Bulk Shipping Pte. Ltd., Singapore15-Dec-1815-Dec-19 - 30-Mar-20 
 2006   174,186       
30SEMIRIOH$16,0004.75%Cargill International S.A., Geneva30-Jun-1930-Sep-20 - 30-Dec-20 
 2007   174,261       
31BOSTONH$15,3005.00%Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany7-Jun-191-Apr-21 - 30-Jun-21 
 2007   177,828       
32HOUSTONH$10,1255.00%Koch Shipping Pte. Ltd., Singapore17-Feb-1917-Apr-20 - 1-Aug-2014
 2009   177,729       
33NEW YORKH$15,5005.00%Singapore Marine Pte. LTD., Singapore7-Jun-197-Nov-20 - 22-Jan-21 
 2010   177,773       
34SEATTLEI$16,0005.00%SwissMarine Services S.A., Geneva24-Dec-1824-Apr-20 - 24-Jul-20 
 2011     179,362       
35P. S. PALIOSI$17,5005.00%SwissMarine Services S.A., Geneva5-Jun-1921-Jan-20 - 20-Mar-20 
 2013   179,134       
36G. P. ZAFIRAKISJ$17,0005.00%SwissMarine Services S.A., Geneva31-Dec-1831-May-20 - 31-Aug-2015
 2014   179,492       
37SANTA BARBARAJ$20,2504.75%Cargill International S.A., Geneva24-Apr-187-Dec-1910
 2015     179,426       
38NEW ORLEANS $15,0004.75%Cargill International S.A., Geneva10-Apr-1926-Jul-20 - 25-Nov-20 
 2015   180,960       
 4 Newcastlemax Bulk Carriers
39LOS ANGELESK$13,2505.00%SwissMarine Services S.A., Geneva6-Mar-196-Jun-20 - 6-Sep-20 
 2012   206,104       
40PHILADELPHIAK$20,0005.00%Koch Shipping Pte. Ltd., Singapore18-Jun-183-Feb-20 - 18-May-20 
 2012   206,040       
41SAN FRANCISCOL$16,0005.00%Koch Shipping Pte. Ltd., Singapore5-Mar-195-Oct-20 - 20-Jan-21 
 2017   208,006       
42NEWPORT NEWSL$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 ''Nirefs'' sold and delivered to her new owners on September 5, 2019.
2 Vessel off hire for drydocking from May 27, 2019 to July 4, 2019.
3 Estimated redelivery date from the charterers.
4 Estimated delivery date to the charterers.
5 Vessel off hire from September 23, 2019 to November 1, 2019.
6 Redelivery date based on an estimated time charter trip duration of about 55 days.
7 "Clio" sold and delivered to her new owners on November 21, 2019.
8 Redelivery date based on an estimated time charter trip duration of about 30 days.
9 Currently without an active charterparty.
10 Based on latest information.
11 Vessel off hire for drydocking  from June 8, 2019 to July 9, 2019 
12 Vessel off hire for drydocking from August 27, 2019 to October 6, 2019.
13 Redelivery date based on an estimated time charter trip duration of about 40 days.
14 Vessel currently off hire for drydocking.
15 Vessel off hire for drydocking from August 21, 2019 to September 12, 2019.
 


 
Summary of Selected Financial & Other Data (unaudited)
   Three months ended September 30, Nine months ended September 30,
   2019  2018  2019  2018 
          
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$53,534 $61,505 $169,220 $163,315 
 Voyage expenses 3,315  1,818  9,054  4,658 
 Vessel operating expenses 21,981  22,809  67,232  70,300 
 Net income/(loss) 1,770  14,767  3,446  13,672 
 Net income/(loss) attributed to common stockholders 328  13,325  (880) 9,345 
FLEET DATA
 Average number of vessels 43.8  50.0  45.9  50.0 
 Number of vessels 43.0  50.0  43.0  50.0 
 Weighted average age of vessels 9.4  9.1  9.4  9.1 
 Ownership days 4,027  4,600  12,526  13,650 
 Available days 3,960  4,600  12,358  13,519 
 Operating days 3,938  4,576  12,255  13,394 
 Fleet utilization 99.4% 99.5% 99.2% 99.1%
AVERAGE DAILY RESULTS
 Time charter equivalent (TCE) rate (1)$12,682 $12,975 $12,961 $11,736 
 Daily vessel operating expenses (2)$5,458 $4,958 $5,367 $5,150 


 _____________________
(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, December 2, 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 13696449.

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)


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,
   2019 2018 2019 2018
          
REVENUES:        
 Time charter revenues$53,534 $61,505 $169,220 $163,315 
EXPENSES:        
 Voyage expenses 3,315  1,818  9,054  4,658 
 Vessel operating expenses 21,981  22,809  67,232  70,300 
 Depreciation and amortization of deferred charges 12,113  13,177  36,841  39,204 
 General and administrative expenses  7,137  6,805  20,782  20,522 
 Management fees to related party 537  600  1,567  1,800 
 Impairment loss -  -  7,519  - 
 Loss from sale of vessels 716  -  2,835  - 
 Other gain (489) (118) (556) (296)
 Operating income$8,224  16,414  23,946  27,127 
          
OTHER INCOME / (EXPENSES):        
 Interest and finance costs (7,206) (7,175) (22,709) (21,468)
 Interest and other income 754  5,508  2,255  7,982 
 Gain/(loss) from equity method investment (2) 20  (46) 31 
 Total other expenses, net$(6,454) (1,647) (20,500) (13,455)
          
Net income$1,770 $14,767 $3,446 $13,672 
Dividends on series B preferred shares (1,442) (1,442) (4,326) (4,327)
Net income/(loss) attributed to common stockholders 328  13,325  (880) 9,345 
Earnings/(loss) per common share, basic and diluted$- $0.13 $(0.01)$0.09 
Weighted average number of common shares, basic 93,359,239  103,959,717  96,934,593  103,684,250 
          
Weighted average number of common shares, diluted 94,274,398  105,234,812  96,934,593  104,567,959 
          
   Three months ended September 30, Nine months ended September 30,
   2019  2018  2019  2018 
          
Net income/(loss)$1,770 $14,767 $3,446 $13,672 
Other comprehensive loss (Actuarial loss) (9) (8) (27) (24)
Comprehensive income/(loss)$1,761 $14,759 $3,419 $13,648 
             


    
CONDENSED CONSOLIDATED BALANCE SHEET DATA   
(in thousands of U.S. Dollars)   
        
   September 30, 2019
 December 31, 2018*
ASSETS  (unaudited)  
        
Cash and cash equivalents$127,272 $126,825 
Other current assets 16,929  15,147 
Vessels, net 915,383  991,403 
Other fixed assets, net 22,162  22,425 
Restricted cash, non-current 21,500  24,582 
Investments in related parties 3,217  3,263 
Other non-current assets 5,642  4,151 
 Total assets $1,112,105 $1,187,796 
        
LIABILITIES AND STOCKHOLDERS' EQUITY      
        
Long-term debt, net of deferred financing costs$485,527 $530,547 
Other liabilities 22,659  29,565 
Total stockholders' equity 603,919  627,684 
 Total liabilities and stockholders' equity $1,112,105 $1,187,796 
        
*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,
  2019 2018
 2019 2018
          
Net cash provided by operating activities$11,523 $24,180 $44,475 $51,971 
Net cash provided by investment activities 12,244  38,563  32,384  85,888 
Net cash provided by/(used in) financing activities$(18,914)$31,436 $(78,912)$(1,562)


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
Related Links: 
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