Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2019

Friday, 21. February 2020 13:53

ATHENS, Greece, Feb. 21, 2020 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported net loss of $14.0 million and net loss attributed to common stockholders of $15.4 million for the fourth quarter of 2019, including a $6.5 million impairment loss and $3.3 million loss from sale of vessels. This compares to net income of $2.9 million and net income attributed to common stockholders of $1.5 million reported in the fourth quarter of 2018.

Time charter revenues were $51.5 million for the fourth quarter of 2019, compared to $62.9 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 six vessels in 2019 and decreased average time charter rates that the Company achieved for its vessels during the quarter.

Net loss for 2019 amounted to $10.5 million and net loss attributed to common stockholders amounted to $16.3 million, including a $14.0 million impairment loss and $6.2 million loss from sale of vessels. This compares to net income and net income attributed to common stockholders of $16.6 million and $10.8 million, respectively, for 2018. Time charter revenues were $220.7 million for 2019, compared to $226.2 million for 2018.

 Fleet Employment Profile (As of February 20, 2020)
 Diana Shipping Inc.’s fleet is employed as follows:
Rate (USD
Per Day)
Com**CharterersDelivery Date
Redelivery Date to Owners****Notes
 14 Panamax Bulk Carriers
1OCEANIS $10,3505.00%Ausca Shipping Limited, Hong Kong16-Nov-189-Jan-201
   $9,2005.00%Phaethon International Company AG9-Jan-209-Jan-21 - 24-Mar-21 
 2001  75,211       
2PROTEFSA$11,0003.75%Hudson Shipping Lines Incorporated19-Sep-1830-Nov-19 
   $9,9005.00%Phaethon International Company AG30-Nov-191-Jan-21 - 31-Mar-21 
 2004  73,630       
3CALIPSOA$15,4005.00%Crystal Sea Shipping Co., Limited1-Nov-1925-Feb-202
 2005  73,691       
-CLIOA$10,6005.00%Ausca Shipping Limited, Hong Kong10-Nov-185-Nov-193
 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-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-1913-Dec-19 
   $5,3005.00%Tongli Shipping Pte. Ltd.3-Jan-205-Feb-204
   $8,0005.00%Koch Shipping Pte. Ltd., Singapore20-Feb-205-Nov-20 - 4-Jan-21 
 2006  74,381       
7MELIA $12,0005.00%United Bulk Carriers International S.A., Luxemburg28-Apr-1822-Nov-19 
   $10,7505.00%Cargill International S.A., Geneva13-Feb-203-Apr-205,6
 2005  76,225       
8ARTEMIS $12,6005.00%Ausca Shipping Limited, Hong Kong17-Sep-1828-Nov-19 
   $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-191-May-20 - 1-Jul-207
 2010  81,297       
10SELINAB$12,2505.00%BG Shipping Co., Limited, Hong Kong6-Feb-1815-Jul-19 
   $11,7505.00%Ausca Shipping Limited, Hong Kong15-Jul-1915-Feb-208, 9
 2010  75,700       
11MAERAB$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-1810-Jan-20 
   $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-192-May-20 - 2-Aug-20 
 2014  77,525       
14ATALANDIC$12,2505.00%Uniper Global Commodities SE, Düsseldorf9-Jul-199-Jun-20 - 24-Aug-20 
 2014  77,529       
 5 Kamsarmax Bulk Carriers
15MAIAD$13,3005.00%Glencore Agriculture B.V., Rotterdam12-Nov-1831-Jan-2010
   $11,2005.00%Aquavita International S.A.31-Jan-2031-Mar-21 - 15-Jun-21 
 2009  82,193       
16MYRSINID$12,7505.00%Glencore Agriculture B.V., Rotterdam22-Dec-184-Dec-19 
   $11,5005.00%Ausca Shipping Limited, Hong Kong4-Dec-194-Jan-21 - 19-Mar-21 
 2010  82,117       
17MEDUSAD$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       
18MYRTOD$14,0004.75%Cargill International S.A., Geneva18-Jul-193-Apr-20 - 18-Jun-20 
 2013  82,131       
19ASTARTE $14,2505.00%Glencore Agriculture B.V., Rotterdam16-Oct-1818-Jan-20 
   $11,7505.00%Aquavita International S.A.18-Jan-2018-Mar-21 - 2-Jun-21 
 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-1910-Jan-2011
 2010  93,193       
21AMPHITRITEE$12,7505.00%Uniper Global Commodities SE, Düsseldorf27-Jan-1927-Mar-20 - 27-Jun-20 
 2012  98,697       
22POLYMNIAE$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       
23ELECTRAF$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       
24PHAIDRAF$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-208
 2002  164,218       
26ALIKI $18,0005.00%SwissMarine Services S.A., Geneva9-Apr-1823-Jan-2011
 2005  180,235       
27BALTIMORE $15,0005.00%Koch Shipping Pte. Ltd., Singapore19-May-194-Dec-20 - 3-Apr-2112
 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 GSG$15,3505.00%Berge Bulk Shipping Pte. Ltd., Singapore15-Dec-1827-Feb-2013
 2006  174,186       
30SEMIRIOG$16,0004.75%Cargill International S.A., Geneva30-Jun-1930-Sep-20 - 30-Dec-20 
 2007  174,261       
31BOSTONG$15,3005.00%Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany7-Jun-191-Apr-21 - 30-Jun-21 
 2007  177,828       
32HOUSTONG$10,1255.00%Koch Shipping Pte. Ltd., Singapore17-Feb-1917-Apr-20 - 1-Aug-2014
 2009  177,729       
33NEW YORKG$15,5005.00%Singapore Marine Pte. LTD., Singapore7-Jun-197-Nov-20 - 22-Jan-2115
 2010  177,773       
34SEATTLEH$16,0005.00%SwissMarine Services S.A., Geneva24-Dec-1824-Apr-20 - 24-Jul-20 
 2011  179,362       
35P. S. PALIOSH$17,5005.00%SwissMarine Services S.A., Geneva5-Jun-1925-Feb-20 - 20-Mar-2013
 2013  179,134       
36G. P. ZAFIRAKISI$17,0005.00%SwissMarine Services S.A., Geneva31-Dec-1831-May-20 - 31-Aug-20 
 2014  179,492       
37SANTA BARBARAI$20,2504.75%Cargill International S.A., Geneva24-Apr-189-Dec-1916
   $17,2505.00%Pacbulk Shipping Pte. Ltd., Singapore28-Dec-1928-Dec-20 - 28-Feb-21 
 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 ANGELESJ$13,2505.00%SwissMarine Services S.A., Geneva6-Mar-196-Jun-20 - 6-Sep-20 
 2012   206,104       
40PHILADELPHIAJ$20,0005.00%Koch Shipping Pte. Ltd., Singapore18-Jun-183-Feb-20 
   $14,5005.00%BHP Billiton Freight Singapore Pte. Ltd5-Feb-205-Apr-21 - 5-Jul-21 
 2012  206,040       
41SAN FRANCISCOK$16,0005.00%Koch Shipping Pte. Ltd., Singapore5-Mar-195-Oct-20 - 20-Jan-21 
 2017  208,006       
42NEWPORT NEWSK$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 Vessel off hire for drydocking from May 27, 2019 to July 4, 2019.
2 Redelivery date based on an estimated time charter trip duration of about 116 days.
3 "Clio" sold and delivered to her new Owners on November 21, 2019.
4 Charter included a one time gross ballast bonus payment of US$56,000.
5 Charter includes a one time gross ballast bonus payment of US$107,500.
6 Relivery date based on an estimated time charter trip duration of about 50 days.
7 Vessel off hire for drydocking from December 16, 2019 to February 10, 2020.
8 Currently without an active charterparty.
9 Ausca Shipping Limited has agreed to compensate the owners for the early redelivery of the vessel until the minimum agreed redelivery date, February 15, 2020.
10 Vessel off hire for drydocking from August 27, 2019 to October 6, 2019.
11 Currently without an active charterparty. Vessel on scheduled drydocking.
12 Vessel off hire for drydocking for about 40.8 days.
13 Based on latest information.
14 Vessel off hire for drydocking from November 14, 2019 to December 10, 2019.
15 Vessel currently off hire for drydocking.
16 Vessel for scheduled drydocking from December 12, 2019 to December 28, 2019.

Summary of Selected Financial & Other Data (unaudited)
   Three months ended December 31, Year ended December 31,
   2019  2018  2019  2018 
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$51,508 $62,874 $220,728 $226,189 
 Voyage expenses 4,488  2,747  13,542  7,405 
 Vessel operating expenses 23,368  25,210  90,600  95,510 
 Net income/(loss) (13,981) 2,908  (10,535) 16,580 
 Net income/(loss) attributed to common stockholders (15,423) 1,466  (16,304) 10,811 
 Average number of vessels 42.6  49.5  45.0  49.9 
 Number of vessels 42.0  48.0  42.0  48.0 
 Weighted average age of vessels 9.5  9.1  9.5  9.1 
 Ownership days 3,915  4,554  16,442  18,204 
 Available days 3,834  4,445  16,192  17,964 
 Operating days 3,716  4,405  15,971  17,799 
 Fleet utilization 96.9% 99.1% 98.6% 99.1%
 Time charter equivalent (TCE) rate (1)$12,264 $13,527 $12,796 $12,179 
 Daily vessel operating expenses (2)$5,969 $5,536 $5,510 $5,247 


(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 Friday, February 21, 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 13698627.

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 December 31, Year ended December 31,
   2019  2018  2019  2018 
 Time charter revenues$51,508 $62,874 $220,728 $226,189 
 Voyage expenses 4,488  2,747  13,542  7,405 
 Vessel operating expenses 23,368  25,210  90,600  95,510 
 Depreciation and amortization of deferred charges 12,063  13,001  48,904  52,206 
 General and administrative expenses  7,819  8,995  28,601  29,518 
 Management fees to related party 589  594  2,155  2,394 
 Impairment loss 6,467  -  13,987  - 
 Loss from sale of vessels 3,336  1,448  6,171  1,448 
 Other gain (298) (245) (854) (542)
 Operating income/(loss)$(6,324)$11,124 $17,622 $38,250 
 Interest and finance costs (6,722) (9,039) (29,432) (30,506)
 Interest and other income 602  839  2,858  8,822 
 Gain/(loss) from investments (1,537) (16) (1,583) 14 
 Total other expenses, net$(7,657)$(8,216)$(28,157)$(21,670)
Net income/(loss)$(13,981)$2,908 $(10,535)$16,580 
Dividends on series B preferred shares (1,442) (1,442) (5,769) (5,769)
Net income/(loss) attributed to common stockholders (15,423) 1,466  (16,304) 10,811 
Earnings/(loss) per common share, basic and diluted$(0.17)$0.01 $(0.17)$0.10 
Weighted average number of common shares, basic 90,017,536  103,892,507  95,191,116  103,736,742 
Weighted average number of common shares, diluted 90,017,536  105,150,906  95,191,116  104,715,883 
   Three months ended December 31, Year ended December 31,
   2019  2018  2019  2018 
Net income/(loss)$(13,981)$2,908 $(10,535)$16,580 
Other comprehensive income/(loss) (Actuarial income/(loss)) (151) 17  (178) (7)
Comprehensive income/(loss)$(14,132)$2,925 $(10,713)$16,573 

(in thousands of U.S. Dollars)  
   2019 2018 *
ASSETS  (unaudited)  
Cash and cash equivalents$107,288$126,825
Other current assets 29,751 15,147
Vessels, net 882,297 991,403
Other fixed assets, net 22,077 22,425
Restricted cash, non-current 21,000 24,582
Investments in related parties 1,680 3,263
Other non-current assets 7,187 4,151
 Total assets $1,071,280$1,187,796
Long-term debt, net of deferred financing costs$474,951$530,547
Other liabilities 26,265 29,565
Total stockholders' equity 570,064 627,684
 Total liabilities and stockholders' equity $1,071,280$1,187,796
*The balance sheet data have been derived from the audited consolidated financial statements at that date.

   Three months ended December 31,  Year ended December 31,
   2019  2018  2019  2018 
Net cash provided by operating activities$5,407 $27,959 $49,882 $79,930 
Net cash provided by investment activities 6,013  13,482  38,397  99,370 
Net cash used in financing activities$(32,486)$(92,140)$(111,398)$(93,702)

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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