Home ShipmanagementAccountancy Diana Shipping Inc. Reports Financial Results for the First Quarter Ended March 31, 2020

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

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

ATHENS, GREECE, May 14, 2020 – 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:
  Vessel Sister Ships* Gross Rate (USD Per Day) Com** Charterers Delivery Date to Charterers*** Redelivery Date to Owners**** Notes
BUILT    DWT
14 Panamax Bulk Carriers
1 OCEANIS $10,350 5.00% Ausca Shipping Limited, Hong Kong 16-Nov-18 9-Jan-20
$9,200 5.00% Phaethon International Company AG 9-Jan-20 9-Jan-21 – 24-Mar-21
2001    75,211
2 PROTEFS A $9,900 5.00% Phaethon International Company AG 30-Nov-19 1-Jan-21 – 31-Mar-21 1
2004    73,630
3 CALIPSO A $15,400 5.00% Crystal Sea Shipping Co., Limited 1-Nov-19 2-Mar-20 2
$4,750 5.00% Uniper Global Commodities SE, Düsseldorf 13-Apr-20 28-May-20
$8,250 5.00% 28-May-20 15-Oct-20 – 31-Dec-20
2005    73,691
4 NAIAS A $10,000 5.00% Phaethon International Company AG 26-Jan-19 26-Dec-20 – 10-Apr-21
2006    73,546
5 ARETHUSA A $9,150 5.00% Ausca Shipping Limited, Hong Kong 2-May-19 20-May-20 – 1-Jun-20 3
2007     73,593
6 CORONIS $5,300 5.00% Tongli Shipping Pte. Ltd. 3-Jan-20 5-Feb-20 4
$8,000 5.00% Koch Shipping Pte. Ltd., Singapore 20-Feb-20 5-Nov-20 – 4-Jan-21
2006    74,381
7 MELIA $10,750 5.00% Cargill International S.A., Geneva 13-Feb-20 28-Apr-20 5,6
2005     76,225
8 ARTEMIS $10,150 5.00% Koch Shipping Pte. Ltd., Singapore 28-Nov-19 13-Aug-20 – 28-Oct-20
2006     76,942
9 LETO $13,000 5.00% Uniper Global Commodities SE, Düsseldorf 31-May-19 20-May-20 – 1-Jun-20 3,7
2010     81,297
10 SELINA B $11,750 5.00% Ausca Shipping Limited, Hong Kong 15-Jul-19 15-Feb-20 8
$6,500 5.00% Daelim Corporation 26-Feb-20 21-Mar-20
$4,750 4.75% Cargill International S.A., Geneva 27-Mar-20 21-May-20 9
2010     75,700
11 MAERA B $9,450 5.00% Glencore Agriculture B.V., Rotterdam 27-Mar-19 26-May-20 – 10-Jul-20 3
2013     75,403
12 ISMENE $12,125 5.00% Koch Shipping Pte. Ltd., Singapore 12-Dec-18 10-Jan-20
$10,800 5.00% Phaethon International Company AG 10-Jan-20 10-Feb-21 – 25-Apr-21
2013     77,901
13 CRYSTALIA C $10,500 5.00% Glencore Agriculture B.V., Rotterdam 2-Mar-19 23-May-20 – 1-Jul-20 3
2014    77,525
14 ATALANDI C $12,250 5.00% Uniper Global Commodities SE, Düsseldorf 9-Jul-19 9-Jun-20 – 24-Aug-20
2014    77,529
5 Kamsarmax Bulk Carriers
15 MAIA D $13,300 5.00% Glencore Agriculture B.V., Rotterdam 12-Nov-18 31-Jan-20
$11,200 5.00% Aquavita International S.A. 31-Jan-20 31-Mar-21 – 15-Jun-21
2009     82,193
16 MYRSINI D $11,500 5.00% Ausca Shipping Limited, Hong Kong 4-Dec-19 4-Jan-21 – 19-Mar-21 10
2010     82,117
17 MEDUSA D $11,000 4.75% Cargill International S.A., Geneva 16-Nov-19 1-Oct-20 – 16-Dec-20
2010     82,194
18 MYRTO D $14,000 4.75% Cargill International S.A., Geneva 18-Jul-19 3-Apr-20
$10,000 4.75% 3-Apr-20 1-Jul-21 – 15-Sep-21
2013     82,131
19 ASTARTE $14,250 5.00% Glencore Agriculture B.V., Rotterdam 16-Oct-18 18-Jan-20
$11,750 5.00% Aquavita International S.A. 18-Jan-20 18-Mar-21 – 2-Jun-21
2013     81,513
5 Post-Panamax Bulk Carriers
20 ALCMENE $9,500 5.00% Oriental Bulk Shipping PTE. LTD 16-Nov-19 10-Jan-20 11
$4,000 4.75% Cargill International S.A., Geneva 2-Apr-20 1-Jun-20
$8,500 4.75% 1-Jun-20 17-Apr-21 – 2-Jul-21
2010     93,193
21 AMPHITRITE E $12,750 5.00% Uniper Global Commodities SE, Düsseldorf 27-Jan-19 21-Mar-20
$10,250 5.00% SwissMarine Pte. Ltd., Singapore 21-Mar-20 6-Apr-21 – 21-Jun-21
2012     98,697
22 POLYMNIA E $11,000 4.75% Cargill International S.A., Geneva 15-Nov-19 15-Oct-20 – 30-Dec-20
2012    98,704
23 ELECTRA F $10,250 5.00% Oldendorff Carriers GMBH & Co. KG, Lübeck 21-Nov-19 21-Oct-20 – 21-Dec-20
2013    87,150
24 PHAIDRA F $10,800 5.00% Uniper Global Commodities SE, Düsseldorf 11-Apr-19 27-May-20 – 26-Aug-20
2013    87,146
13 Capesize Bulk Carriers
NORFOLK $17,750 5.00% Koch Shipping Pte. Ltd., Singapore 2-Nov-19 20-Feb-20 12
2002    164,218
25 ALIKI $18,000 5.00% SwissMarine Services S.A., Geneva 9-Apr-18 23-Jan-20 13
$11,300 5.00% Koch Shipping Pte. Ltd., Singapore 23-Apr-20 1-Jan-21 – 15-Mar-21
2005    180,235
26 BALTIMORE $15,000 5.00% Koch Shipping Pte. Ltd., Singapore 19-May-19 4-Dec-20 – 3-Apr-21 14
2005    177,243

 

 

27 SALT LAKE CITY $9,750 4.75% Cargill International S.A., Geneva 24-Mar-19 24-Nov-20 – 24-Feb-21
2005    171,810
28 SIDERIS GS G $15,350 5.00% Berge Bulk Shipping Pte. Ltd., Singapore 15-Dec-18 7-Mar-20
$12,700 5.00% Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany 7-Mar-20 15-Oct-20 – 31-Dec-20
2006    174,186
29 SEMIRIO G $16,000 4.75% Cargill International S.A., Geneva 30-Jun-19 30-Sep-20 – 30-Dec-20
2007    174,261
30 BOSTON G $15,300 5.00% Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany 7-Jun-19 1-Apr-21 – 30-Jun-21
2007    177,828
31 HOUSTON G $10,125 5.00% Koch Shipping Pte. Ltd., Singapore 17-Feb-19 12-Apr-20
$6,250 5.00% C Transport Maritime Ltd., Bermuda 13-Apr-20 13-May-20
$12,400 5.00% 13-May-20 1-Jul-21 – 30-Sep-21
2009    177,729
32 NEW YORK G $15,500 5.00% Singapore Marine Pte. LTD., Singapore 7-Jun-19 7-Nov-20 – 22-Jan-21 15
2010    177,773
33 SEATTLE H $16,000 5.00% SwissMarine Services S.A., Geneva 24-Dec-18 24-Apr-20
$12,300 5.00% Pacbulk Shipping Pte. Ltd., Singapore 27-Apr-20 1-Oct-21 – 31-Dec-21
2011     179,362
34 P. S. PALIOS H $17,500 5.00% SwissMarine Services S.A., Geneva 5-Jun-19 24-Mar-20
$6,000 5.00% C Transport Maritime Ltd., Bermuda 24-Mar-20 28-Apr-20
$12,050 5.00% 28-Apr-20 9-Apr-21 – 24-Jun-21
2013    179,134
35 G. P. ZAFIRAKIS I $17,000 5.00% SwissMarine Services S.A., Geneva 31-Dec-18 31-May-20 – 31-Aug-20
2014    179,492
36 SANTA BARBARA I $17,250 5.00% Pacbulk Shipping Pte. Ltd., Singapore 28-Dec-19 28-Dec-20 – 28-Feb-21
2015     179,426
37 NEW ORLEANS $15,000 4.75% Cargill International S.A., Geneva 10-Apr-19 26-Jul-20 – 25-Nov-20
2015    180,960
4 Newcastlemax Bulk Carriers
38 LOS ANGELES J $13,250 5.00% SwissMarine Services S.A., Geneva 6-Mar-19 6-Jun-20 – 15-Jun-20 3
2012    206,104
39 PHILADELPHIA J $20,000 5.00% Koch Shipping Pte. Ltd., Singapore 18-Jun-18 3-Feb-20
$14,500 5.00% BHP Billiton Freight Singapore Pte. Ltd 5-Feb-20 5-Apr-21 – 5-Jul-21
2012    206,040

 

 

40 SAN FRANCISCO K $16,000 5.00% Koch Shipping Pte. Ltd., Singapore 5-Mar-19 5-Oct-20 – 20-Jan-21
2017   208,006
41 NEWPORT NEWS K $16,500 5.00% SwissMarine Services S.A., Geneva 25-Feb-19 25-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.

 

ATHENS, GREECE, May 14, 2020 – 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:
  Vessel Sister Ships* Gross Rate (USD Per Day) Com** Charterers Delivery Date to Charterers*** Redelivery Date to Owners**** Notes
BUILT    DWT
14 Panamax Bulk Carriers
1 OCEANIS $10,350 5.00% Ausca Shipping Limited, Hong Kong 16-Nov-18 9-Jan-20
$9,200 5.00% Phaethon International Company AG 9-Jan-20 9-Jan-21 – 24-Mar-21
2001    75,211
2 PROTEFS A $9,900 5.00% Phaethon International Company AG 30-Nov-19 1-Jan-21 – 31-Mar-21 1
2004    73,630
3 CALIPSO A $15,400 5.00% Crystal Sea Shipping Co., Limited 1-Nov-19 2-Mar-20 2
$4,750 5.00% Uniper Global Commodities SE, Düsseldorf 13-Apr-20 28-May-20
$8,250 5.00% 28-May-20 15-Oct-20 – 31-Dec-20
2005    73,691
4 NAIAS A $10,000 5.00% Phaethon International Company AG 26-Jan-19 26-Dec-20 – 10-Apr-21
2006    73,546
5 ARETHUSA A $9,150 5.00% Ausca Shipping Limited, Hong Kong 2-May-19 20-May-20 – 1-Jun-20 3
2007     73,593
6 CORONIS $5,300 5.00% Tongli Shipping Pte. Ltd. 3-Jan-20 5-Feb-20 4
$8,000 5.00% Koch Shipping Pte. Ltd., Singapore 20-Feb-20 5-Nov-20 – 4-Jan-21
2006    74,381
7 MELIA $10,750 5.00% Cargill International S.A., Geneva 13-Feb-20 28-Apr-20 5,6
2005     76,225
8 ARTEMIS $10,150 5.00% Koch Shipping Pte. Ltd., Singapore 28-Nov-19 13-Aug-20 – 28-Oct-20
2006     76,942
9 LETO $13,000 5.00% Uniper Global Commodities SE, Düsseldorf 31-May-19 20-May-20 – 1-Jun-20 3,7
2010     81,297
10 SELINA B $11,750 5.00% Ausca Shipping Limited, Hong Kong 15-Jul-19 15-Feb-20 8
$6,500 5.00% Daelim Corporation 26-Feb-20 21-Mar-20
$4,750 4.75% Cargill International S.A., Geneva 27-Mar-20 21-May-20 9
2010     75,700
11 MAERA B $9,450 5.00% Glencore Agriculture B.V., Rotterdam 27-Mar-19 26-May-20 – 10-Jul-20 3
2013     75,403
12 ISMENE $12,125 5.00% Koch Shipping Pte. Ltd., Singapore 12-Dec-18 10-Jan-20
$10,800 5.00% Phaethon International Company AG 10-Jan-20 10-Feb-21 – 25-Apr-21
2013     77,901
13 CRYSTALIA C $10,500 5.00% Glencore Agriculture B.V., Rotterdam 2-Mar-19 23-May-20 – 1-Jul-20 3
2014    77,525
14 ATALANDI C $12,250 5.00% Uniper Global Commodities SE, Düsseldorf 9-Jul-19 9-Jun-20 – 24-Aug-20
2014    77,529
5 Kamsarmax Bulk Carriers
15 MAIA D $13,300 5.00% Glencore Agriculture B.V., Rotterdam 12-Nov-18 31-Jan-20
$11,200 5.00% Aquavita International S.A. 31-Jan-20 31-Mar-21 – 15-Jun-21
2009     82,193
16 MYRSINI D $11,500 5.00% Ausca Shipping Limited, Hong Kong 4-Dec-19 4-Jan-21 – 19-Mar-21 10
2010     82,117
17 MEDUSA D $11,000 4.75% Cargill International S.A., Geneva 16-Nov-19 1-Oct-20 – 16-Dec-20
2010     82,194
18 MYRTO D $14,000 4.75% Cargill International S.A., Geneva 18-Jul-19 3-Apr-20
$10,000 4.75% 3-Apr-20 1-Jul-21 – 15-Sep-21
2013     82,131
19 ASTARTE $14,250 5.00% Glencore Agriculture B.V., Rotterdam 16-Oct-18 18-Jan-20
$11,750 5.00% Aquavita International S.A. 18-Jan-20 18-Mar-21 – 2-Jun-21
2013     81,513
5 Post-Panamax Bulk Carriers
20 ALCMENE $9,500 5.00% Oriental Bulk Shipping PTE. LTD 16-Nov-19 10-Jan-20 11
$4,000 4.75% Cargill International S.A., Geneva 2-Apr-20 1-Jun-20
$8,500 4.75% 1-Jun-20 17-Apr-21 – 2-Jul-21
2010     93,193
21 AMPHITRITE E $12,750 5.00% Uniper Global Commodities SE, Düsseldorf 27-Jan-19 21-Mar-20
$10,250 5.00% SwissMarine Pte. Ltd., Singapore 21-Mar-20 6-Apr-21 – 21-Jun-21
2012     98,697
22 POLYMNIA E $11,000 4.75% Cargill International S.A., Geneva 15-Nov-19 15-Oct-20 – 30-Dec-20
2012    98,704
23 ELECTRA F $10,250 5.00% Oldendorff Carriers GMBH & Co. KG, Lübeck 21-Nov-19 21-Oct-20 – 21-Dec-20
2013    87,150
24 PHAIDRA F $10,800 5.00% Uniper Global Commodities SE, Düsseldorf 11-Apr-19 27-May-20 – 26-Aug-20
2013    87,146
13 Capesize Bulk Carriers
NORFOLK $17,750 5.00% Koch Shipping Pte. Ltd., Singapore 2-Nov-19 20-Feb-20 12
2002    164,218
25 ALIKI $18,000 5.00% SwissMarine Services S.A., Geneva 9-Apr-18 23-Jan-20 13
$11,300 5.00% Koch Shipping Pte. Ltd., Singapore 23-Apr-20 1-Jan-21 – 15-Mar-21
2005    180,235
26 BALTIMORE $15,000 5.00% Koch Shipping Pte. Ltd., Singapore 19-May-19 4-Dec-20 – 3-Apr-21 14
2005    177,243

 

 

27 SALT LAKE CITY $9,750 4.75% Cargill International S.A., Geneva 24-Mar-19 24-Nov-20 – 24-Feb-21
2005    171,810
28 SIDERIS GS G $15,350 5.00% Berge Bulk Shipping Pte. Ltd., Singapore 15-Dec-18 7-Mar-20
$12,700 5.00% Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany 7-Mar-20 15-Oct-20 – 31-Dec-20
2006    174,186
29 SEMIRIO G $16,000 4.75% Cargill International S.A., Geneva 30-Jun-19 30-Sep-20 – 30-Dec-20
2007    174,261
30 BOSTON G $15,300 5.00% Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany 7-Jun-19 1-Apr-21 – 30-Jun-21
2007    177,828
31 HOUSTON G $10,125 5.00% Koch Shipping Pte. Ltd., Singapore 17-Feb-19 12-Apr-20
$6,250 5.00% C Transport Maritime Ltd., Bermuda 13-Apr-20 13-May-20
$12,400 5.00% 13-May-20 1-Jul-21 – 30-Sep-21
2009    177,729
32 NEW YORK G $15,500 5.00% Singapore Marine Pte. LTD., Singapore 7-Jun-19 7-Nov-20 – 22-Jan-21 15
2010    177,773
33 SEATTLE H $16,000 5.00% SwissMarine Services S.A., Geneva 24-Dec-18 24-Apr-20
$12,300 5.00% Pacbulk Shipping Pte. Ltd., Singapore 27-Apr-20 1-Oct-21 – 31-Dec-21
2011     179,362
34 P. S. PALIOS H $17,500 5.00% SwissMarine Services S.A., Geneva 5-Jun-19 24-Mar-20
$6,000 5.00% C Transport Maritime Ltd., Bermuda 24-Mar-20 28-Apr-20
$12,050 5.00% 28-Apr-20 9-Apr-21 – 24-Jun-21
2013    179,134
35 G. P. ZAFIRAKIS I $17,000 5.00% SwissMarine Services S.A., Geneva 31-Dec-18 31-May-20 – 31-Aug-20
2014    179,492
36 SANTA BARBARA I $17,250 5.00% Pacbulk Shipping Pte. Ltd., Singapore 28-Dec-19 28-Dec-20 – 28-Feb-21
2015     179,426
37 NEW ORLEANS $15,000 4.75% Cargill International S.A., Geneva 10-Apr-19 26-Jul-20 – 25-Nov-20
2015    180,960
4 Newcastlemax Bulk Carriers
38 LOS ANGELES J $13,250 5.00% SwissMarine Services S.A., Geneva 6-Mar-19 6-Jun-20 – 15-Jun-20 3
2012    206,104
39 PHILADELPHIA J $20,000 5.00% Koch Shipping Pte. Ltd., Singapore 18-Jun-18 3-Feb-20
$14,500 5.00% BHP Billiton Freight Singapore Pte. Ltd 5-Feb-20 5-Apr-21 – 5-Jul-21
2012    206,040

 

 

40 SAN FRANCISCO K $16,000 5.00% Koch Shipping Pte. Ltd., Singapore 5-Mar-19 5-Oct-20 – 20-Jan-21
2017   208,006
41 NEWPORT NEWS K $16,500 5.00% SwissMarine Services S.A., Geneva 25-Feb-19 25-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)

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