Home ShipmanagementAccountancy Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2021

Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2021

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Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2021

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ATHENS, GREECE, August 3, 2021 – Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported net income of $2.8 million and net income attributed to common stockholders of $1.4 million for the second quarter of 2021. This compares to a net loss of $10.8 million and net loss attributed to common stockholders of $12.2 million, including a $2.6 million impairment loss, reported in the second quarter of 2020.

Time charter revenues were $47.0 million for the second quarter of 2021, compared to $41.0 million for the same quarter of 2020. The increase in time charter revenues was mainly due to increased average time charter rates that the Company achieved for its vessels during the quarter. This increase was partly offset by decreased revenues due to decreased ownership days compared to last year, resulting from the sale of vessels.

Net income for the six months ended June 30, 2021 amounted to $1.5 million and net loss attributed to common stockholders amounted to $1.4 million. This compares to a net loss of $113.6 million and net loss attributed to common stockholders of $116.5 million, including a $95.7 million impairment loss and $1.1 million loss from sale of vessels, for the same period of 2020. Time charter revenues were $88.1 million for the first half of 2021, compared to $84.7 million for the same period of 2020.

 Fleet Employment Profile (As of August 02, 2021)
 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
         
 10 Panamax Bulk Carriers
1PROTEFSA$10,6505.00%Reachy International (HK) Co., Limited8-Feb-2110-Mar-22 – 20-May-22 
 2004    73,630       
2CALIPSOA$10,4005.00%Viterra Chartering B.V., Rotterdam22-Jan-211-Oct-21 – 15-Dec-21 
 2005    73,691       
NAIASA$11,0004.75%Cargill International S.A., Geneva27-Jan-2117-May-21  
   $25,0005.00%Nasshipping Inc.17-May-2121-Jun-21  
   $23,2505.00%AS Klaveness Chartering, Oslo21-Jun-2119-Jul-21 1
 2006    73,546       
3MELIA $10,0005.00%Ausca Shipping Limited, Hong Kong20-Aug-2011-Jun-21 2
   $25,7505.00%Viterra Chartering B.V., Rotterdam11-Jun-217-Apr-22 – 7-Jun-22 
 2005     76,225       
4ARTEMIS $10,2505.00%Glencore Agriculture B.V., Rotterdam30-Nov-205-Jan-22 – 30-Mar-22 
 2006     76,942       
5LETO $9,0004.75%Cargill International S.A., Geneva21-May-208-Aug-21 – 30-Sep-213
 2010     81,297       
6SELINAB$11,0005.00%ST Shipping and Transport Pte. Ltd., Singapore5-Jul-207-Aug-21 – 7-Sep-213
 2010     75,700       
7MAERAB$8,6005.00%Ausca Shipping Limited, Hong Kong11-Jun-208-Aug-21 – 3-Oct-213
 2013     75,403       
8ISMENE $16,5005.00%Tongli Shipping Pte. Ltd.11-Mar-2115-Oct-21 – 15-Dec-21 
 2013     77,901       
9CRYSTALIAC$8,7505.00%Glencore Agriculture B.V., Rotterdam22-May-209-Aug-21 – 30-Sep-213
 2014    77,525       
10ATALANDIC$9,3005.00%Uniper Global Commodities SE, Düsseldorf14-Jun-2010-Aug-21 – 14-Oct-213
 2014    77,529       
 6 Kamsarmax Bulk Carriers
11MAIAD$11,2005.00%Aquavita International S.A.31-Jan-2020-Jun-21 4
   $25,0005.00%Viterra Chartering B.V., Rotterdam20-Jun-211-May-22 – 30-Jun-22 
 2009     82,193       
12MYRSINID$11,5005.00%Ausca Shipping Limited, Hong Kong4-Dec-1911-May-21  
   $27,7505.00%Bocimar International N.V.11-May-2115-Oct-21 – 30-Nov-21 
 2010     82,117       
13MEDUSAD$11,0004.75%Cargill International S.A., Geneva19-Nov-2010-Jan-22 – 20-Mar-22 
 2010     82,194       
14MYRTOD$10,0004.75%Cargill International S.A., Geneva3-Apr-2011-Aug-21 – 15-Sep-213
 2013     82,131       
15ASTARTE $11,7505.00%Aquavita International S.A.18-Jan-2020-May-21  
   $25,0005.00%Mitsui O.S.K. Lines Ltd.20-May-211-Nov-21 – 15-Dec-21 
 2013     81,513       
16MAGNOLIA – – –5
 tbr. LEONIDAS P. C.       
 2011     82,165       
 5 Post-Panamax Bulk Carriers
17ALCMENE $8,5004.75%Cargill International S.A., Geneva2-Apr-2028-Jul-21 6
   $25,5005.00%Refined Success Limited28-Jul-2130-Oct-21  
 2010     93,193       
18AMPHITRITEE$10,2505.00%SwissMarine Pte. Ltd., Singapore21-Mar-206-Jun-21  
   $30,0005.00%Jera Global Markets Pte. Ltd.6-Jun-212-Jul-21 7
   $30,2505.00%Jera Global Markets Pte. Ltd.23-Jul-216-Sep-21 8
 2012     98,697       
19POLYMNIAE$12,1005.00%CLdN Cobelfret SA, Luxembourg22-Nov-2015-Oct-21 – 25-Dec-219
 2012    98,704       
20ELECTRAF$23,5005.00%Refined Success Limited23-Mar-2128-Apr-21  
   $21,0005.00%Tongli Shipping Pte. Ltd.28-Apr-2110-Feb-22 – 10-Apr-22 
 2013    87,150       
21PHAIDRAF$9,4005.00%Uniper Global Commodities SE, Düsseldorf29-May-2015-Jul-21  
   $27,0005.00%Refined Success Limited15-Jul-2119-Aug-21 10
 2013    87,146       
 12 Capesize Bulk Carriers
22ALIKI $20,5005.00%Solebay Shipping Cape Company Limited, Hong Kong18-Mar-2115-Jan-22 – 15-Mar-22 
 2005    180,235       
23BALTIMORE $13,0005.00%Koch Shipping Pte. Ltd., Singapore21-Dec-2011-Aug-21 – 5-Oct-213
 2005    177,243       
24SALT LAKE CITY $13,0005.00%C Transport Maritime Ltd., Bermuda9-Jan-211-Apr-22 – 30-Jun-22 
 2005    171,810       
25SEMIRIOG$13,5005.00%SwissMarine Pte. Ltd., Singapore1-Jan-215-Oct-21 – 20-Dec-21 
 2007    174,261       
26BOSTONG$15,3005.00%Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany7-Jun-1916-Jun-21  
   $25,5005.00%C Transport Maritime Ltd., Bermuda16-Jun-2115-Apr-22 – 15-Jun-22 
 2007    177,828       
27HOUSTONG$12,4005.00%C Transport Maritime Ltd., Bermuda13-Apr-2010-Aug-21 – 30-Sep-213
 2009    177,729       
28NEW YORKG$14,0005.00%EGPN Bulk Carrier Co., Limited, Hong Kong29-Dec-2016-Apr-22 – 30-Jun-22 
 2010    177,773       
29SEATTLEH$12,3005.00%Pacbulk Shipping Pte. Ltd., Singapore27-Apr-201-Oct-21 – 20-Feb-2211
 2011     179,362       
30P. S. PALIOSH$12,0505.00%C Transport Maritime Ltd., Bermuda24-Mar-205-Jun-21  
   $26,5004.75%Olam International Limited, Singapore5-Jun-2115-Feb-22 – 15-Apr-22 
 2013    179,134       
31G. P. ZAFIRAKISI$13,2005.00%Koch Shipping Pte. Ltd., Singapore31-May-201-Oct-21 – 31-Dec-21 
 2014    179,492       
32SANTA BARBARAI$17,2504.75%Cargill International S.A., Geneva9-Jan-215-Jan-22 – 5-Mar-22 
 2015     179,426       
33NEW ORLEANS $15,5005.00%Nippon Yusen Kabushiki Kaisha3-Dec-2025-Jan-22 – 25-Mar-22 
 2015    180,960       
 4 Newcastlemax Bulk Carriers
34LOS ANGELESJ$14,2505.00%Engelhart CTP Freight (Switzerland) SA6-Jun-201-Oct-21 – 31-Dec-21 
 2012    206,104       
35PHILADELPHIAJ$14,5005.00%BHP Billiton Freight Singapore Pte. Ltd5-Feb-2022-Apr-21  
   $28,5005.00%Classic Maritime Inc.22-Apr-211-Mar-22 – 1-May-22 
 2012    206,040       
36SAN FRANCISCOK$17,7505.00%Olam International Limited, Singapore11-Feb-2127-May-21  
   $24,7005.00% 27-May-2115-Jan-22 – 15-Mar-22 
 2017   208,006       
37NEWPORT NEWSK$18,4005.00%Koch Shipping Pte. Ltd., Singapore8-Sep-2016-Oct-21 – 30-Dec-21 
 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 sold delivered to her new owners on July 30, 2021.
2 Charter included a one time ballast bonus payment of US$500,000.
3 Based on latest information.
4 Charterers have agreed to pay US$30,664 per day, for the excess period commencing from June 15, 2021 till June 20, 2021.
5 Expected date of delivery to the Company on February 28, 2022.
6 Charterers have agreed to pay the weighted average of the Baltic Panamax 5 T/C routes, as published by the Baltic Exchange on July 2, 2021 for the excess period commencing from July 2, 2021 till July 28, 2021.
7 Vessel on scheduled drydocking from July 2, 2021 to July 23, 2021.
8 Redelivery date based on an estimated time charter trip duration of about 45 days.
9 Vessel currently off hire for drydocking.
10 Redelivery date based on an estimated time charter trip duration of about 35 days.
11 Vessel on scheduled drydocking from April 10, 2021 to May 30, 2021.
Summary of Selected Financial & Other Data (unaudited)
   Three months ended June 30, Six months ended June 30,
   2021 2020 2021 2020
          
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$47,023$40,975$88,074$84,735
 Voyage expenses 2,292 3,827 4,072 7,561
 Vessel operating expenses 19,179 20,806 37,731 42,123
 Net income/(loss) 2,815 (10,794) 1,520 (113,617)
 Net income/(loss) attributed to common stockholders 1,373 (12,236) (1,364) (116,501)
FLEET DATA
 Average number of vessels 37.0 41.0 37.6 41.4
 Number of vessels 37.0 41.0 37.0 41.0
 Weighted average age of vessels 10.4 9.5 10.4 9.5
 Ownership days 3,367 3,731 6,801 7,532
 Available days 3,319 3,507 6,753 7,025
 Operating days 3,305 3,446 6,692 6,838
 Fleet utilization 99.6% 98.3% 99.1% 97.3%
AVERAGE DAILY RESULTS
 Time charter equivalent (TCE) rate (1)$13,477$10,593$12,439$10,986
 Daily vessel operating expenses (2)$5,696$5,577$5,548$5,593

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.

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 Tuesday, August 3, 2021.

Investors may access the webcast by visiting the Company’s website at www.dianashippinginc.com, and clicking on the webcast link. An accompanying investor presentation also will be available via the webcast link and on the Company’s website. 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 13721321.

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 LOSS
   Three months ended June 30, Six months ended June 30,
   2021 2020 2021 2020
REVENUES:        
 Time charter revenues$47,023$40,975$88,074$84,735
EXPENSES:        
 Voyage expenses 2,292 3,827 4,072 7,561
 Vessel operating expenses 19,179 20,806 37,731 42,123
 Depreciation and amortization of deferred charges 10,092 11,737 20,141 23,284
 General and administrative expenses  7,211 6,739 13,909 16,285
 Management fees to related party 405 497 854 1,014
 Vessel impairment charges  2,556  95,693
 Loss on sale of vessels (2)  203 1,078
 Other loss/(income) 102 99 (4) (142)
 Operating income/(loss)$7,744$(5,286)$11,168$(102,161)
          
OTHER INCOME / (EXPENSES):        
 Interest expense and finance costs (4,706) (5,655) (9,342) (12,009)
 Interest income 22 203 50 639
 Loss on extinguishment of debt (158)  (158) 
 Loss from equity method investment (87) (56) (198) (86)
 Total other expenses, net$(4,929)$(5,508)$(9,648)$(11,456)
          
Net income/(loss)$2,815$(10,794)$1,520$(113,617)
Dividends on series B preferred shares (1,442) (1,442) (2,884) (2,884)
Net income/(loss) attributed to common stockholders 1,373 (12,236) (1,364) (116,501)
Earnings/(loss) per common share, basic and diluted$0.02$(0.14)$(0.02)$(1.35)
Weighted average number of common shares, basic 82,020,353 85,552,271 82,792,000 86,012,939
          
Weighted average number of common shares, diluted 85,576,754 85,552,271 82,792,000 86,012,939
          
   Three months ended June 30, Six months ended June 30,
   2021 2020 2021 2020
          
Net income/(loss)$2,815$(10,794)$1,520$(113,617)
Other comprehensive loss (Actuarial loss)  (6)  (13)
Comprehensive income/(loss)$2,815$(10,800)$1,520$(113,630)
CONDENSED CONSOLIDATED BALANCE SHEET DATA  
(in thousands of U.S. Dollars)  
      
   June 30, 2021 December 31, 2020*
ASSETS  (unaudited)  
      
Cash, cash equivalents and restricted cash$154,995$82,909
Other current assets 23,597 41,752
Vessels, net 690,819 716,178
Other fixed assets, net 21,629 21,704
Other non-current assets 8,594 9,867
 Total assets$899,634$872,410
      
LIABILITIES AND STOCKHOLDERS’ EQUITY    
      
Long-term debt, net of deferred financing costs$461,515$420,314
Other liabilities 22,386 23,526
Total stockholders’ equity 415,733 428,570
 Total liabilities and stockholders’ equity$899,634$872,410
      
*The balance sheet data have been derived from the audited consolidated financial statements at that date.
OTHER FINANCIAL DATA (unaudited)
   Three months ended June 30, Six months ended June 30,
   2021 2020 2021 2020
          
Net cash provided by operating activities$21,023$4,447$27,442$11,737
Net cash provided by/(used in) investing activities (483) (1,100) 22,075 (2,264)
Net cash provided by/(used in) financing activities$48,420$(12,857)$22,569$(36,071)

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