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Press release from GlobeNewswire (a Nasdaq OMX company)

Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2012

Thursday, August 02, 2012

Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 201204:45 EDT Thursday, August 02, 2012ATHENS, Greece, Aug. 2, 2012 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX), a global shipping company specializing in the ownership and operation of dry bulk vessels, today reported net income of $17.4 million for the second quarter of 2012, compared to net income of $27.7 million reported in the second quarter of 2011. Time charter revenues were $57.6 million for the second quarter of 2012, compared to $64.6 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 Arethusa, delivered in July 2011; Leto, delivered in January 2012; Los Angeles, delivered in February 2012; and Philadelphia and Melia, delivered in May 2012. Net income to Diana Shipping Inc. for the six months ended June 30, 2012 amounted to $37.3 million, compared to net income of $60.8 million for the same period of 2011. Time charter revenues were $115.2 million for the six months ended June 30, 2012, compared to $134.1 million for the same period of 2011.Time Charter Contracts Separately, the Company also announced that it has entered into time charter contracts with Ultrabulk A/S, Copenhagen, Denmark, through separate wholly-owned subsidiaries, for two of its Panamax dry bulk carriers, the m/v "Naias" and the m/v "Oceanis". The gross charter rate for each vessel is US$9,250 per day, minus a 5% commission paid to third parties, for a period of minimum seventeen (17) months to maximum twenty-three (23) months. The Oceanis charter is expected to commence in mid-August 2012 and the Naias charter is expected to commence at the end of August 2012. The employment of the two vessels is anticipated to generate approximately US$9.4 million of gross revenue for the minimum scheduled period of the charters. The Naias is a 73,546 dwt Panamax dry bulk vessel built in 2006 and the Oceanis is a 75,211 dwt Panamax dry bulk vessel built in 2001.  Fleet Employment Profile (As of August 2, 2012)   Currently Diana's fleet is employed as follows:                   VesselSister Ships*Gross Rate (USD Per Day)Com**ChartererDelivery Date to ChartererRedelivery Date to Owners***Notes  BUILT DWT         Panamax Bulk Carriers                   1  CORONIS C $10,600 5.00% EDF Trading Limited, London 12-Mar-12 27-Nov-13 - 27-Jun-14     2006 74,381                                 2  ERATO C $12,200 5.00% Hyundai Merchant Marine Co., Ltd., Seoul, South Korea 26-Nov-11 26-Dec-12 - 10-Apr-13     2004 74,444                                 3  ARETHUSA B $13,250 5.00% Cargill International S.A., Geneva 8-Jul-11 17-May-12 1        $9,250 5.00% DS Norden A/S, Copenhagen 17-May-12 2-Oct-12 - 1-Jan-13     2007 73,593                                 4  NAIAS B $19,750 5.00% J. Aron & Company, New York 24-Sep-10 24-Aug-12 2        $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 24-Aug-12 24-Jan-14 - 24-Jul-14     2006 73,546                                 5  CLIO B $10,750 5.00% Cargill International S.A., Geneva 22-Feb-12 22-Aug-13 - 22-Feb-14 3    2005 73,691                                 6  CALIPSO B $12,250 5.00% Louis Dreyfus Commodities Suisse S.A., Geneva 11-Oct-11 11-Aug-13 - 11-Dec-13 4    2005 73,691                                 7  PROTEFS B $11,750 4.75% Cargill International S.A., Geneva 6-Aug-11 25-Aug-12 2    2004 73,630   $9,000 5.00%   25-Aug-12 25-Aug-14 - 25-Jan-15                     8  THETIS B $10,500 5.00% EDF Trading Limited, London 22-Feb-12 22-Aug-13 - 22-Jun-14     2004 73,583                                 9  DIONE A $20,500 5.00% Louis Dreyfus Commodities Suisse S.A., Geneva 26-Sep-10 19-Jul-12         $9,700 5.00% EDF Trading Limited, London 19-Jul-12 19-Jul-14 - 19-Dec-14 5    2001 75,172                                 10  DANAE A $15,600 5.00% Hyundai Merchant Marine Co., Ltd., Seoul, South Korea 18-Apr-11 18-Mar-13 - 18-May-13 6    2001 75,106                                 11  OCEANIS A $19,750 5.00% China National Chartering Co. Ltd. (Sinochart BJ), Beijing 17-Sep-10 14-Aug-12 2,7       $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 14-Aug-12 14-Jan-14 - 14-Jul-14     2001 75,211                                 12  TRITON A $19,500 4.75% Resource Marine Pte., Ltd, Singapore 11-Dec-10 11-Nov-13 - 11-Feb-14 8    2001 75,336                                 13  ALCYON A $34,500 4.75% Cargill International S.A., Geneva 21-Feb-08 21-Nov-12 - 21-Feb-13 9    2001 75,247                                 14  NIREFS A $12,250 5.00% Morgan Stanley Capital Group Inc. 18-Dec-11 18-Jan-13 - 18-Apr-13     2001 75,311                                 15  MELIA G $10,900 5.00% STX Panocean Co., Ltd., Seoul 2-May-12 2-Apr-13 - 2-Jul-13     2005 76,225               16  MELITE G $16,500 5.00% Cargill International S.A., Geneva 1-Feb-11 1-Jan-13 - 1-Mar-13     2004 76,436                                 17  LETO   $12,900 5.00% EDF Trading Limited, London 17-Jan-12 17-Jan-14 - 17-Nov-14     2010 81,297                                  Post-Panamax Bulk Carriers                   18  ALCMENE   $20,250 5.00% Cargill International S.A., Geneva 20-Nov-10 5-Oct-12 - 4-Jan-13     2010 93,193                                 19  HULL No. SS-118   -- -- -- -- -- -- -- 10    (tbn Amphitrite)                 2012 98,697                                  Capesize Bulk Carriers                   20  NORFOLK   $74,750 3.75% Corus UK Limited 12-Feb-08 12-Jan-13 - 12-Mar-13 11    2002 164,218                                 21  ALIKI   $26,500 5.00% Minmetals Logistics Group Co. Ltd., Beijing 1-Mar-11 1-Feb-16 - 1-Apr-16     2005 180,235                                 22  SALT LAKE CITY   $55,800 5.00% Refined Success Limited 28-Sep-07 29-Jul-12 12,13       $13,000 5.00% Morgan Stanley Capital Group Inc. 9-Aug-12 9-Jun-14 - 9-Dec-14     2005 171,810                                 23  SIDERIS GS D $30,500 5.00% BHP Billiton Marketing AG 16-Oct-10 16-Feb-13 - 16-Jun-13     2006 174,186                                 24  SEMIRIO D $17,350 5.00% Cargill International S.A., Geneva 30-May-11 15-Mar-13 - 14-Aug-13     2007 174,261                                 25  BOSTON D $14,000 5.00% Morgan Stanley Capital Group Inc. 29-Oct-11 29-Aug-13 - 29-Dec-13 14    2007 177,828                                 26  HOUSTON D $55,000 4.75% Shagang Shipping Co. 3-Nov-09 3-Oct-14 - 3-Jan-15 15    2009 177,729                                 27  NEW YORK D $48,000 3.75% Nippon Yusen Kaisha, Tokyo (NYK) 3-Mar-10 3-Jan-15 - 3-May-15     2010 177,773                                  Newcastlemax Bulk Carriers                   28  LOS ANGELES E $18,000 5.00% EDF Trading Limited, London 9-Feb-12 9-Dec-15 - 9-Apr-16     2012 206,104               29  PHILADELPHIA E $18,000 5.00% EDF Trading Limited, London 17-May-12 17-Jan-16 - 17-Jul-16 16    2012 206,040                                  Vessels Under Construction                   30  HULL H2528 F -- -- -- -- -- -- -- 17    2013 76,000               31  HULL H2529 F -- -- -- -- -- -- -- 17    2013 76,000               * 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. *** Charterers' optional period to redeliver the vessel to owners. Charterers have the right to add the off hire days, if any, and therefore the optional period may be extended. 1 The previous charterers, Cargill International S.A., Geneva have agreed to compensate the owners for the difference between the new rate and the previous rate from May 17, 2012 to May 24, 2012, for the early redelivery. 2 Estimated date. 3 The previous charterers, Daelim Corporation, Seoul, have agreed to compensate the owners for the early redelivery by paying US$17,000 gross per day, minus 5% commission paid to third parties, starting from the date of redelivery to owners, on February 22, 2012, to the minimum agreed redelivery date, April 8, 2012. 4 Vessel off-hire for drydocking from March 27, 2012 to April 17, 2012. 5 The previous charterers, Louis Dreyfus Commodities Suisse S.A., Geneva, have agreed to compensate the owners for the early redelivery by paying US$ 11,875 gross per day, minus 5% commission paid to third parties, starting from the date of redelivery to owners, on July 19, 2012, to the minimum agreed redelivery date, July 26, 2012. 6 Vessel off-hire for unscheduled maintenance from May 5, 2012 to May 9, 2012. 7 The previous charterers, China National Chartering Co. Ltd (Sinochart BJ), Beijing have agreed to compensate the owners for the early redelivery date till the minimum agreed redelivery date, August 17, 2012. 8 Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank Limited. 9 Vessel off-hire from July 28, 2012 to July 30, 2012. 10 Expected date of delivery in the middle of August (based on latest information received by the sellers). 11 Since September 2010 charterer's name has changed to Tata Steel UK, Limited. 12 The previous charterers, Refined Success Limited, have agreed to compensate the owners for the early redelivery. 13 Vessel currently in drydock. 14 Morgan Stanley Capital Group Inc. has the option to employ the vessel for a further minimum eleven (11) to a maximum thirteen (13) month period at a gross rate of US$15,000 per day starting twenty-four (24) months after delivery of the vessel to the charterer. 15 Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group Co. 16 Vessel off-hire for unscheduled maintenance from June 1, 2012 to June 5, 2012. 17 Year of delivery and dwt are based on shipbuilding contract. Summary of Selected Financial & Other Data     For the three months ended June 30,For the six months ended June 30, 2012201120122011  (unaudited) (unaudited) (unaudited) (unaudited)INCOME STATEMENT DATA (in thousands of US Dollars):     Time charter revenues $57,583  $64,615  $115,185  $134,051  Voyage expenses 2,922  2,657  5,101  5,561  Vessel operating expenses 15,371  14,073  30,028  26,442  Net income attributed to Diana Shipping Inc. 17,377  27,676  37,338  60,813 FLEET DATA      Average number of vessels 27.2  23.0  26.3  23.2  Number of vessels 28.0  23.0  28.0  23.0  Weighted average age of vessels (in years) 5.9  5.9  5.9  5.9  Ownership days 2,472  2,093  4,785  4,199  Available days 2,456  2,025  4,739  4,131  Operating days 2,445  1,997  4,723  4,098  Fleet utilization 99.6% 98.6% 99.7% 99.2%AVERAGE DAILY RESULTS      Time charter equivalent (TCE) rate (1) $22,256  $30,597  $23,229  $31,104  Daily vessel operating expenses (2) $6,218  $6,724  $6,275  $6,297  (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 Diana Shipping Inc. will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Thursday, August 2, 2012. 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 Account number 362 and Replay ID number 397233.About the Company Diana Shipping Inc. is a leading global provider of shipping transportation services through the ownership and operation 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, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include 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 our operating expenses, including bunker prices, drydocking and insurance costs, the market for our 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, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.DIANA SHIPPING INC.FINANCIAL TABLES Expressed in thousands of U.S. Dollars, except share and per share data     UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF INCOME        For the three months ended June 30,For the six months ended June 30,  2012201120122011         REVENUES:     Time charter revenues $ 57,583  $ 64,615  $ 115,185  $ 134,051  Other revenues  618   279   1,186   401           EXPENSES:         Voyage expenses  2,922   2,657   5,101   5,561  Vessel operating expenses  15,371   14,073   30,028   26,442  Depreciation and amortization of deferred charges  15,327   13,567   29,915   27,064  General and administrative expenses  6,564   6,204   12,682   12,750  Foreign currency gains (378) (206) (772) (198)Operating income  18,395   28,599   39,417   62,833           OTHER INCOME / (EXPENSES):         Interest and finance costs (1,855) (1,176) (3,398) (2,458) Interest income  517   226   895   439  Loss from derivative instruments (39) (490) (240) (575) Income from investment in Diana Containerships Inc.  359   517   664   572 Total other expenses, net (1,018) (923) (2,079) (2,022)         Net Income  $ 17,377  $ 27,676  $ 37,338  $ 60,811           Loss assumed by non-controlling interests  --   --   --   2          Net income attributed to Diana Shipping Inc.  17,377   27,676   37,338   60,813          Earnings per common share, basic and diluted $ 0.21  $ 0.34  $ 0.46  $ 0.75          Weighted average number of common shares, basic 81,393,077  81,089,440  81,309,564  81,027,892          Weighted average number of common shares, diluted 81,393,077  81,123,577  81,309,564  81,049,777   UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME          For the three months ended June 30,For the six months ended June 30,   2012 2011 20122011Net income $ 17,377   $ 27,676  $ 37,338   $ 60,811           Comprehensive loss assumed by non-controlling interests  --   --   --   2          Comprehensive income attributed to Diana Shipping Inc.  $17,377  $ 27,676  $ 37,338   $ 60,813       CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEET DATA    (in thousands of U.S. Dollars)            June 30, 2012December 31, 2011  ASSETS              Cash and cash equivalents $451,476  $416,674     Other current assets 13,492  16,017     Advances for vessels under construction and acquisitions and other vessel costs 8,736  63,440     Vessels' net book value 1,191,560  1,046,719     Other fixed assets, net 22,194  21,659     Investments 29,172  29,842     Other non-current assets 6,990  10,120     Total assets $1,723,620  $1,604,471            LIABILITIES AND STOCKHOLDERS' EQUITY                Current liabilities, including current portion of long-term debt $58,086  $48,095     Long-term debt, net of current portion and of deferred financing costs 417,254  345,638     Other non-current liabilities 1,967  1,860     Total stockholders' equity 1,246,313  1,208,878     Total liabilities and stockholders' equity $1,723,620  $1,604,471     OTHER FINANCIAL DATA   For the three months ended June 30,For the six months ended June 30,   20122011 20122011     (unaudited) (unaudited) (unaudited) (unaudited)  Net Cash provided by Operating Activities $ 31,590  $ 38,901  $ 68,033  $ 81,065   Net Cash used in Investing Activities  (55,559)  (35,116)  (117,293)  (47,556)  Net Cash provided by / (used in) Financing Activities  33,423   (1,497)  84,062   (3,310)            CONTACT: Corporate Contact: Ioannis Zafirakis Director, Executive Vice-President and Secretary Telephone: + 30-210-9470100 Email: izafirakis@dianashippinginc.com Investor and Media Relations: Edward Nebb Comm-Counsellors, LLC Telephone: + 1-203-972-8350 Email: enebb@optonline.net