DIANA SHIPPING INC. report financial results for the third quarter and nine months ended September 30, 2012 – Announces delivery of the post-panamax dry bulk carrier m/v Polymnia and entry into time charter contract – Announces time charter contract for the m/v Arethusa
ATHENS, GREECE, November 20, 2012 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the ownership and operation of dry bulk vessels, today reported net income of $12.3 million for the third quarter of 2012, compared to net income of $26.4 million reported in the third quarter of 2011.
Time charter revenues were $56.2 million for the third quarter of 2012, compared to $64.2 million for the same period of 2011, mainly due to reduced time charter rates. The decrease in time charter revenues was partly offset by revenues derived from the increase in ownership days resulting from the addition to the Company’s fleet of the vessels Leto delivered in January 2012, Los Angeles delivered in February 2012, Philadelphia and Melia delivered in May 2012, and Amphitrite delivered in August 2012.
Net income to Diana Shipping Inc. for the nine months ended September 30, 2012 amounted to $49.6 million, compared to net income of $87.3 million for the same period of 2011. Time charter revenues were $171.4 million for the nine months ended September 30, 2012, compared to $198.3 million for 2011.
Delivery of the m/v Polymnia and Entry into Time Charter Contract
In addition, the Company also announced that, through a separate wholly-owned subsidiary, it has taken delivery today of the m/v “Polymnia”, a 98, 704 dwt newly built Post-Panamax dry bulk carrier that the Company entered into an agreement to purchase in October 2012.
The Company also announced that it has entered into a time charter contract with Sino East Transportation Ltd., Hong Kong, through the aforementioned subsidiary, for the newly delivered Polymnia at a gross charter rate of US$8, 000 per day, minus a 5% commission paid to third parties, for a period of about forty-five (45) to fifty-five (55) days. The charter is expected to commence tomorrow, November 21, 2012.
Time Charter Contract for the m/v Arethusa
The Company also announced that it has entered into a time charter contract with Cargill International S.A., Geneva, through a separate wholly-owned subsidiary, for one of its Panamax dry bulk carriers, the m/v “Arethusa”, at a gross charter rate of US$7, 300 per day, minus a 5% commission paid to third parties, for a period of minimum eighteen (18) months to maximum twenty-four (24) months. The charter is expected to commence on November 23, 2012.
This employment is anticipated to generate approximately US$3.9 million of gross revenue for the minimum scheduled period of the charter.
The Arethusa is a 73, 593 dwt Panamax dry bulk vessel built in 2007.
Including the newly-delivered m/v Polymnia, Diana Shipping Inc.’s fleet currently consists of 30 dry bulk carriers (17 Panamax, 3 Post-Panamax, 8 Capesize and 2 Newcastlemax), as well as 2 new-building Ice Class Panamax vessels expected to be delivered to the Company during the fourth quarter of 2013. As of today, the combined carrying capacity of our current fleet, excluding the two vessels not yet delivered, is approximately 3.4 million dwt with a weighted average age of 5.9 years. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, www.dianashippinginc.com. Information contained on the Company’s website does not constitute a part of this press release.