Diana Shipping Inc. Reports Financial Results For the First Quarter Ended March 31, 2020

Thursday, 14. May 2020 14:28

ATHENS, Greece, May 14, 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 and net loss attributed to common stockholders of $102.8 million and $104.3 million for the first quarter of 2020, including a $93.1 million impairment loss. This compares to net income of $3.0 million and net income attributed to common stockholders of $1.5 million reported in the first quarter of 2019, including a $4.8 million impairment loss. Loss per share for the first quarter of 2020 was $1.21 compared to earnings per share of $0.02 for the same period in 2019. Adjusted loss per share, excluding impairment loss, was $0.13 for the quarter compared to adjusted earnings per share of $0.07 for the same quarter last year.

Time charter revenues were $43.8 million for the first quarter of 2020, compared to $60.3 million for the same period of 2019. The decrease in time charter revenues was due to decreased average time charter rates that the Company achieved for its vessels during the quarter and decreased revenues due to the sale of one vessel in the first quarter of 2020 and six vessels in 2019.

 Fleet Employment Profile (As of May 13, 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
 BUILT  DWT
         
 14 Panamax Bulk Carriers
1OCEANIS $10,3505.00%Ausca Shipping Limited, Hong Kong16-Nov-189-Jan-20 
   $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
 2004  73,630       
3CALIPSOA$15,4005.00%Crystal Sea Shipping Co., Limited1-Nov-192-Mar-202
   $4,7505.00%Uniper Global Commodities SE, Düsseldorf13-Apr-2028-May-20 
   $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-1920-May-20 - 1-Jun-203
 2007  73,593       
6CORONIS $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 $10,7505.00%Cargill International S.A., Geneva13-Feb-2028-Apr-205,6
 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-1920-May-20 - 1-Jun-203,7
 2010  81,297       
10SELINAB$11,7505.00%Ausca Shipping Limited, Hong Kong15-Jul-1915-Feb-208
   $6,5005.00%Daelim Corporation26-Feb-2021-Mar-20 
   $4,7504.75%Cargill International S.A., Geneva27-Mar-2021-May-209
 2010  75,700       
11MAERAB$9,4505.00%Glencore Agriculture B.V., Rotterdam27-Mar-1926-May-20 - 10-Jul-203
 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-1923-May-20 - 1-Jul-203
 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-20 
   $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 $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 $9,5005.00%Oriental Bulk Shipping PTE. LTD16-Nov-1910-Jan-2011
   $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$12,7505.00%Uniper Global Commodities SE, Düsseldorf27-Jan-1921-Mar-20 
   $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-1927-May-20 - 26-Aug-20 
 2013  87,146       
 13 Capesize Bulk Carriers
-NORFOLK $17,7505.00%Koch Shipping Pte. Ltd., Singapore2-Nov-1920-Feb-2012
 2002  164,218       
25ALIKI $18,0005.00%SwissMarine Services S.A., Geneva9-Apr-1823-Jan-2013
   $11,3005.00%Koch Shipping Pte. Ltd., Singapore23-Apr-201-Jan-21 - 15-Mar-21 
 2005  180,235       
26BALTIMORE $15,0005.00%Koch Shipping Pte. Ltd., Singapore19-May-194-Dec-20 - 3-Apr-2114
 2005  177,243       
27SALT LAKE CITY $9,7504.75%Cargill International S.A., Geneva24-Mar-1924-Nov-20 - 24-Feb-21 
 2005  171,810       
28SIDERIS GSG$15,3505.00%Berge Bulk Shipping Pte. Ltd., Singapore15-Dec-187-Mar-20 
   $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$17,5005.00%SwissMarine Services S.A., Geneva5-Jun-1924-Mar-20 
   $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 - 31-Aug-20 
 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-1926-Jul-20 - 25-Nov-20 
 2015  180,960       
 4 Newcastlemax Bulk Carriers
38LOS ANGELESJ$13,2505.00%SwissMarine Services S.A., Geneva6-Mar-196-Jun-20 - 15-Jun-203
 2012  206,104       
39PHILADELPHIAJ$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       
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-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 unscheduled maintenance from April 28, 2020 to May 6, 2020.
2 Vessel on scheduled drydocking from March 9, 2020 to April 13, 2020.
3 Based on latest information.
4 Charter included a one time gross ballast bonus payment of US$56,000.
5 Charter included a one time gross ballast bonus payment of US$107,500.
6 Currently without an active charterparty. Vessel on scheduled drydocking.
7 Vessel off hire for drydocking from December 16, 2019 to February 10, 2020.
8 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.
9 Redelivery date based on an estimated time charter trip duration of about 55 days.
10 Vessel currently off hire for drydocking.
11 Vessel on scheduled drydocking from January 10, 2020 to March 19, 2020.
12 'Norfolk' sold and delivered to her new Owners on March 11, 2020.
13 Vessel on scheduled drydocking from January 23, 2020 to April 15, 2020.
14 Vessel off hire for drydocking for about 40.8 days.
15 Vessel off hire for drydocking from February 18, 2020 to April 27, 2020.
 

Summary of Selected Financial & Other Data (unaudited)

  Three months ended March 31,
  2020 2019
     
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
Time charter revenues$43,760 $60,301 
Voyage expenses 3,734  2,774 
Vessel operating expenses 21,317  22,358 
Net income/(loss) (102,823) 2,976 
Net income/(loss) attributed to common stockholders (104,265) 1,534 
FLEET DATA
Average number of vessels 41.8  48.0 
Number of vessels 41.0  48.0 
Weighted average age of vessels 9.5  9.4 
Ownership days 3,801  4,320 
Available days 3,518  4,276 
Operating days 3,391  4,263 
Fleet utilization 96.4% 99.7%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1)$11,377 $13,453 
Daily vessel operating expenses (2)$5,608 $5,175 

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.

This press release includes a discussion of net income/(loss) and income/(loss) per share adjusted for impairment loss as identified in the reconciliations provided below. The Company believes that discussion of these additional non-GAAP measures provides investors with meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance. The following shows the difference between net loss to adjusted net loss, and loss per share to adjusted loss per share for the three months ended March 31, 2020 and net income to adjusted net income, and earnings per share to adjusted earnings per share for the three months ended March 31, 2019 (in thousands, except per share amounts):

  Three months ended March 31,
  2020 2019
Adjusted net income/(loss) and net income/(loss) attributed to common stockholders    
     
Net income/(loss)$(102,823)$2,976 
Impairment loss 93,137  4,750 
Adjusted net income/(loss)$(9,686)$7,726 
     
Dividends on series B preferred shares(1,442) (1,442)
Adjusted net income/(loss) attributed to common stockholders$(11,128)$6,284 
     
Adjusted income/(loss) per share    
Income/(loss) per common share, basic and diluted$(1.21)$0.02 
Impairment loss per share 1.08  0.05 
     
Adjusted income/(loss) per share, basic and diluted$(0.13)$0.07 
       

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 Thursday, May 14, 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 13702465.

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)

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 March 31,
  2020 2019
REVENUES:    
Time charter revenues$43,760 $60,301 
     
EXPENSES:    
Voyage expenses 3,734  2,774 
Vessel operating expenses 21,317  22,358 
Depreciation and amortization of deferred charges 11,547  12,449 
General and administrative expenses 9,546  7,535 
Management fees to related party 517  512 
Impairment loss 93,137  4,750 
Loss from sale of vessels 1,078  - 
Other gain (241) (60)
Operating income/(loss)$(96,875)$9,983 
     
OTHER INCOME / (EXPENSES):    
Interest and finance costs (6,354) (7,704)
Interest income 436  716 
Loss from equity method investment (30) (19)
Total other expenses, net$(5,948)$(7,007)
     
Net income/(loss)$(102,823)$2,976 
Dividends on series B preferred shares (1,442) (1,442)
Net income/(loss) attributed to common stockholders (104,265) 1,534 
Earnings/(loss) per common share, basic and diluted$(1.21)$0.02 
Weighted average number of common shares, basic 86,473,606  100,654,177 
     
Weighted average number of common shares, diluted 86,473,606  100,685,910 
     
  Three months ended March 31,
  2020 2019
     
Net income/(loss)$(102,823)$2,976 
Other comprehensive loss (Actuarial loss) (7) (9)
Comprehensive income/(loss)$(102,830)$2,967 
       


CONDENSED CONSOLIDATED BALANCE SHEET DATA  
(in thousands of U.S. Dollars)  
     
  March 31, 2020 December 31, 2019*
ASSETS (unaudited)  
     
Cash and cash equivalents$90,700$107,288
Other current assets 23,544 29,751
Vessels, net 781,968 882,297
Other fixed assets, net 21,989 22,077
Restricted cash, non-current 20,500 21,000
Investments in related parties 150 1,680
Other non-current assets 5,377 7,187
Total assets $944,228$1,071,280
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Long-term debt, net of deferred financing costs$465,441$474,951
Other liabilities 21,088 26,265
Total stockholders' equity 457,699 570,064
Total liabilities and stockholders' equity $944,228$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 March 31,
  2020 2019
     
Net cash provided by operating activities$7,290 $18,122 
Net cash provided by/(used in) investment activities (1,164) 3,000 
Net cash used in financing activities$(23,214)$(36,073)
       
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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