Home ShipmanagementAccountancy Diana reports financial results for Q4 and year end 31/12/21; declares cash dividend of 20c per share for Q4 2021

Diana reports financial results for Q4 and year end 31/12/21; declares cash dividend of 20c per share for Q4 2021

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Diana reports financial results for Q4 and year end 31/12/21; declares cash dividend of 20c per share for Q4 2021

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DIANA SHIPPING INC. REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2021 DECLARES CASH DIVIDEND OF 20 CENTS PER SHARE FOR THE FOURTH QUARTER OF 2021

ATHENS, GREECE, February 25, 2022 – Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported net income of $41.1 million and net income attributed to common stockholders of $39.7 million for the fourth quarter of 2021, including a gain of $15.3 million from the spin-off of OceanPal Inc. This compares to a net loss of $7.4 million and net loss attributed to common stockholders of $8.9 million, including a $1.9 million impairment loss, reported in the fourth quarter of 2020.

Time charter revenues were $68.8 million for the fourth quarter of 2021, compared to $42.7 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 year ended December 31, 2021 amounted to $57.4 million and net income attributed to common stockholders amounted to $51.6 million, including a $1.4 million gain on sale of vessels and $15.3 million gain from the spin-off of OceanPal Inc. This compares to a net loss of $134.2 million and net loss attributed to common stockholders of $140.0 million, including a $104.4 million impairment loss and $1.1 million loss on sale of vessels, for the same period of 2020. Time charter revenues were $214.2 million for the year ended December 31, 2021, compared to $169.7 million for the same period of 2020.

Dividend Declaration

The Company declared a cash dividend on its common stock of $0.20 per share, based on the Company’s results of operations during the fourth quarter ended December 31, 2021. The cash dividend will be payable on or about March 21, 2022 to all shareholders of record as of March 9, 2022. The Company has 84.67 million shares of common stock issued and outstanding.

 Fleet Employment Profile (As of February 24, 2022)
 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
         
 8 Panamax Bulk Carriers
PROTEFSA$10,6505.00%Reachy International (HK) Co., Limited8-Feb-2129-Nov-211
 2004    73,630       
CALIPSOA$10,4005.00%Viterra Chartering B.V., Rotterdam22-Jan-2129-Nov-211
 2005    73,691       
1MELIA $25,7505.00%Viterra Chartering B.V., Rotterdam11-Jun-217-Apr-22 – 7-Jun-22 
 2005     76,225       
2ARTEMIS $10,2505.00%Glencore Agriculture B.V., Rotterdam30-Nov-2010-Mar-22 – 25-Mar-222
 2006     76,942       
3LETO $9,0004.75%Cargill International S.A., Geneva21-May-203-Oct-21 
   $25,5004.75%Aquavita International S.A.3-Oct-211-Feb-23 – 15-Apr-23 
 2010     81,297       
4SELINAB$26,5005.00%ASL Bulk Shipping HK Limited2-Sep-2115-Jun-22 – 15-Sep-22 
 2010     75,700       
5MAERAB$26,0005.00%ASL Bulk Shipping HK Limited18-Sep-211-Oct-22 – 15-Dec-22 
 2013     75,403       
6ISMENE $16,5005.00%Tongli Shipping Pte. Ltd.11-Mar-2123-Nov-21 
   $18,5004.75%Cargill International S.A., Geneva23-Nov-2115-Dec-22 – 15-Feb-23 
 2013     77,901       
7CRYSTALIAC$26,1005.00%Uniper Global Commodities SE, Düsseldorf21-Sep-211-Oct-22 – 15-Dec-22 
 2014    77,525       
8ATALANDIC$9,3005.00%Uniper Global Commodities SE, Düsseldorf14-Jun-205-Oct-21 
   $24,5004.75%Aquavita International S.A.5-Oct-2115-Feb-23 – 30-Apr-23 
 2014    77,529       
 6 Kamsarmax Bulk Carriers
9MAIAD$25,0005.00%Viterra Chartering B.V., Rotterdam20-Jun-211-May-22 – 30-Jun-223
 2009     82,193       
10MYRSINID$27,7505.00%Bocimar International N.V.11-May-2115-Nov-21 
   $22,0004.75%Cargill International S.A., Geneva15-Nov-211-Dec-22 – 31-Jan-23 
 2010     82,117       
11MEDUSAD$11,0004.75%Cargill International S.A., Geneva19-Nov-203-Mar-222
 2010     82,194       
12MYRTOD$28,5005.00%Solebay Shipping Transocean Company Limited10-Sep-2115-Aug-22 – 15-Oct-22 
 2013     82,131       
13ASTARTE $25,0005.00%Mitsui O.S.K. Lines Ltd.20-May-2128-Dec-214,5
   $21,5005.00%Tongli Shipping Pte. Ltd.30-Jan-2215-Apr-23 – 15-Jun-23 
 2013     81,513       
14LEONIDAS P. C. $24,5004.75%Cargill International S.A., Geneva18-Feb-221-Mar-23 – 30-Apr-236
 2011     82,165       
 5 Post-Panamax Bulk Carriers
15ALCMENE $25,5005.00%Refined Success Limited28-Jul-2125-Nov-217
   $17,1005.00%SwissMarine Pte. Ltd., Singapore25-Nov-2120-Dec-22 – 5-Mar-23 
 2010     93,193       
16AMPHITRITEE$27,0005.00%BG Shipping Co., Limited, Hong Kong13-Sep-2115-Oct-22 – 15-Dec-22 
 2012     98,697       
17POLYMNIAE$12,1005.00%CLdN Cobelfret SA, Luxembourg22-Nov-204-Feb-228
   $24,7505.00%4-Feb-2215-Jan-23 – 15-Mar-23 
 2012    98,704       
18ELECTRAF$21,0005.00%Tongli Shipping Pte. Ltd.28-Apr-2110-Mar-22 – 10-Apr-222
 2013    87,150       
19PHAIDRAF$28,0005.00%Uniper Global Commodities SE, Düsseldorf2-Sep-211-Jul-22 – 15-Sep-22 
 2013    87,146       
 (11 + 1 TBD) Capesize Bulk Carriers
20ALIKI $20,5005.00%Solebay Shipping Cape Company Limited, Hong Kong18-Mar-2121-Feb-22 
   $24,5005.00%Koch Shipping Pte. Ltd., Singapore21-Feb-221-Feb-23 – 15-Apr-23 
 2005    180,235       
21BALTIMORE $56,0004.75%Olam International Limited, Singapore27-Sep-2127-Dec-21 
   $10,5005.00%Trafigura Maritime Logistics Pte. Ltd.8-Feb-224-Apr-229,10
 2005    177,243       
SALT LAKE CITY $13,0005.00%C Transport Maritime Ltd., Bermuda9-Jan-2129-Nov-211
 2005    171,810       
22SEMIRIOG$13,5005.00%SwissMarine Pte. Ltd., Singapore1-Jan-2115-Dec-21 
   $19,7005.00%C Transport Maritime Ltd., Bermuda15-Dec-2115-Aug-23 – 15-Nov-23 
 2007    174,261       
23BOSTONG$25,5005.00%C Transport Maritime Ltd., Bermuda16-Jun-2115-Apr-22 – 15-Jun-22 
 2007    177,828       
24HOUSTONG$27,0005.00%Koch Shipping Pte. Ltd., Singapore30-Aug-2115-Jul-22 – 15-Oct-22 
 2009    177,729       
25NEW YORKG$14,0005.00%EGPN Bulk Carrier Co., Limited, Hong Kong29-Dec-2016-Apr-22 – 30-Jun-22 
 2010    177,773       
26SEATTLEH$12,3005.00%Pacbulk Shipping Pte. Ltd., Singapore27-Apr-2027-Feb-2211
   $26,5005.00%Solebay Shipping Cape Company Limited, Hong Kong27-Feb-221-Oct-23 – 15-Dec-2312
 2011     179,362       
27P. S. PALIOSH$26,5004.75%Olam International Limited, Singapore5-Jun-217-Mar-22 – 15-Apr-222
 2013    179,134       
28G. P. ZAFIRAKISI$13,2005.00%Koch Shipping Pte. Ltd., Singapore31-May-201-Dec-21 
   $22,7504.75%Cargill International S.A., Geneva1-Dec-211-Nov-22 – 31-Dec-22 
 2014    179,492       
29SANTA BARBARAI$17,2504.75%Cargill International S.A., Geneva9-Jan-216-Mar-22 – 12-Mar-222,13
 2015     179,426       
30NEW ORLEANS $15,5005.00%Nippon Yusen Kabushiki Kaisha3-Dec-208-Mar-22 – 25-Mar-222
 2015    180,960       
31(tbn. FLORIDA) 14,15
  
 2022   181,500       
 4 Newcastlemax Bulk Carriers
32LOS ANGELESJ$14,2505.00%Engelhart CTP Freight (Switzerland) SA6-Jun-2023-Dec-2116
   $26,2505.00%Koch Shipping Pte. Ltd., Singapore30-Jan-2215-Jan-23 – 15-Mar-23 
 2012    206,104       
33PHILADELPHIAJ$28,5005.00%Classic Maritime Inc.22-Apr-217-Mar-22 – 16-Mar-222
 2012    206,040       
34SAN FRANCISCOK$24,7005.00%Olam International Limited, Singapore11-Feb-2118-Feb-2217,18
   $30,5005.00%Koch Shipping Pte. Ltd., Singapore18-Feb-221-Mar-23 – 15-May-23 
 2017   208,006       
35NEWPORT NEWSK$18,4005.00%Koch Shipping Pte. Ltd., Singapore8-Sep-2016-Dec-21 
   $28,0005.00%16-Dec-211-Jul-23  –  30/Sep/202319
 2017   208,021       
** 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 was delivered to her new owners on November 29, 2021.
2 Based on latest information.
3 Vessel off-hire for about 29 days.
4 The charterers agreed to compensate the owners, for all the days over and above the maximum redelivery date (December 15, 2021), with hire rate equal to the average of Baltic Panamax 82 Index 5TC weighted time charter average or the vessel’s present Charter Party rate, whichever is higher.
5 Vessel on scheduled drydocking from December 28, 2021 to January 30, 2022.
6 Vessel was delivered to the Company on February 16, 2022.
7 Charterers compensated owners with hire equal to the average of BPI P3A_82 route for the overrun days starting on October 30, 2021 and paid pro rata until the actual redelivery date and time of the vessel back to owners and only in case the BPI P3A_82 route for the overrun days was higher than current hire rate i.e. USD25,500 otherwise current hire rate to remain for that day.
8 Charterers have agreed to compensate the owners, for all the days over and above the new maximum redelivery date (January 13, 2022), with hire rate equal to the average of Baltic Panamax 82 Index 5TC weighted time charter average plus 15% or vessel’s present Charter Party rate, whichever is higher.
9 Redelivery date based on an estimated time charter trip duration of about 55 days.
10 Charter included a one time ballast bonus payment of US$1,000,000.
11 Expected redelivery date from the charterers.
12 Expected delivery date to the charterers.
13 Charterers have agreed to compensate the owners, for all the days over and above the maximum redelivery date (March 5, 2022), with hire rate equal to the average of Baltic Cape Index 5TC weighted time charter average plus 23% or vessel’s present Charter Party rate, whichever is higher.
14 The dwt is based on shipbuilding contract.
15 Expected date of delivery to the Company by the end of the first quarter of 2022.
16 Vessel on scheduled drydocking from December 23, 2021 to January 30, 2022.
17 The charter rate was US$17,750 per day for the first one hundred five (105) days of the charter period.
18 Vessel on scheduled drydocking from November 2, 2021 to November 20, 2021.
19 Vessel currently off hire for drydocking.
Summary of Selected Financial & Other Data (unaudited)
   Three months ended December 31, Year ended December 31,
   2021 2020 2021 2020
          
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues$68,845$42,657$214,203$169,733
 Voyage expenses 821 3,020 5,570 13,525
 Vessel operating expenses 18,194 22,407 74,756 85,847
 Net income/(loss) 41,140 (7,430) 57,394 (134,197)
 Net income/(loss) attributed to common stockholders 39,698 (8,872) 51,625 (139,966)
FLEET DATA
 Average number of vessels 35.0 40.0 36.6 40.8
 Number of vessels 33.0 40.0 33.0 40.0
 Weighted average age of vessels 10.4 10.2 10.4 10.2
 Ownership days 3,216 3,680 13,359 14,931
 Available days 3,184 3,623 13,239 14,318
 Operating days 3,171 3,610 13,116 14,020
 Fleet utilization 99.6% 99.6% 99.1% 97.9%
AVERAGE DAILY RESULTS
 Time charter equivalent (TCE) rate (1)$21,364$10,940$15,759$10,910
 Daily vessel operating expenses (2)$5,657$6,089$5,596$5,750

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 Friday, February 25, 2022.

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 13726800.

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 short to medium-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 December 31, Year ended December 31,
   2021 2020 2021 2020
REVENUES:        
 Time charter revenues$68,845$42,657$214,203$169,733
EXPENSES:        
 Voyage expenses 821 3,020 5,570 13,525
 Vessel operating expenses 18,194 22,407 74,756 85,847
 Depreciation and amortization of deferred charges 10,089 10,309 40,492 42,991
 General and administrative expenses  8,130 7,030 29,192 32,778
 Management fees to related party 238 506 1,432 2,017
 Vessel impairment charges  1,869  104,395
 (Gain)/loss on sale of vessels   (1,360) 1,085
 Other expense/(gain) 303 (359) 603 (230)
 Operating income/(loss)$31,070$(2,125)$63,518$(112,675)
          
OTHER INCOME / (EXPENSES):        
 Interest expense and finance costs (5,216) (4,632) (20,239) (21,514)
 Interest and other income 97 35 176 728
 (Loss)/gain on extinguishment of debt   (980) 374
 (Loss)/gain on related party investments 15,189 (708) 14,919 (1,110)
 Total other income/(expenses), net$10,070$(5,305)$(6,124)$(21,522)
          
Net income/(loss)$41,140$(7,430)$57,394$(134,197)
Dividends on series B preferred shares (1,442) (1,442) (5,769) (5,769)
Net income/(loss) attributed to common stockholders 39,698 (8,872) 51,625 (139,966)
Earnings/(loss) per common share, basic$0.51$(0.10)$0.64$(1.62)
          
Earnings/(loss) per common share, diluted$0.48$(0.10)$0.61$(1.62)
Weighted average number of common shares, basic 78,495,204 86,799,922 81,121,781 86,143,556
          
Weighted average number of common shares, diluted 83,432,834 86,799,922 84,856,840 86,143,556
          
   Three months ended December 31, Year ended December 31,
   2021 2020 2021 2020
          
Net income/(loss)$41,140$(7,430)$57,394$(134,197)
Other comprehensive income/(loss) (Actuarial income/(loss)) 2 (20) 2 (40)
Comprehensive income/(loss)$41,142$(7,450)$57,396$(134,237)
CONDENSED CONSOLIDATED BALANCE SHEET DATA  
(in thousands of U.S. Dollars)  
      
   December 31, 2021 December 31, 2020*
ASSETS  (unaudited)  
      
Cash, cash equivalents and restricted cash$126,788$82,909
Other current assets 15,566 41,752
Vessels, net 643,450 716,178
Other fixed assets, net 39,129 21,704
Investments in related parties 7,644 
Other non-current assets 9,582 9,867
 Total assets$842,159$872,410
      
LIABILITIES AND STOCKHOLDERS’ EQUITY    
      
Long-term debt, net of deferred financing costs$423,675$420,314
Other liabilities 25,080 23,526
Total stockholders’ equity 393,404 428,570
 Total liabilities and stockholders’ equity$842,159$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 December 31, Year ended December 31,
   2021 2020 2021 2020
          
Net cash provided by operating activities$32,216$5,927$89,705$17,234
Net cash provided by/(used in) investing activities (14,702) (1,114) 13,363 10,484
Net cash used in financing activities$(36,975)$(12,290)$(59,189)$(73,097)

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