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Press release from GlobeNewswire (a Nasdaq OMX company)

Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2012

Thursday, March 14, 2013

Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 201204:30 EDT Thursday, March 14, 2013ATHENS, Greece, March 14, 2013 (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 $5.0 million for the fourth quarter of 2012, compared to net income of $20.2 million reported in the fourth quarter of 2011. Time charter revenues were $49.4 million for the fourth quarter of 2012, compared to $57.4 million for the same period of 2011, mainly due to reduced time charter rates. The decrease in time charter revenues was partly offset by revenues derived from the increase in ownership days resulting from the addition to the Company's fleet of the vessels Leto, delivered in January 2012; Los Angeles, delivered in February 2012; Philadelphia and Melia, delivered in May 2012; Amphitrite, delivered in August 2012; and Polymnia, delivered in November 2012. Net income to Diana Shipping Inc. for 2012 amounted to $54.6 million, compared to net income of $107.5 million for 2011. Time charter revenues were $220.8 million for 2012, compared to $255.7 million for 2011.      Fleet Employment Profile (As of March 13, 2013)  Currently Diana's fleet is employed as follows:       Vessel BUILT DWT Sister Ships* Gross Rate (USD Per Day) Com** Charterer Delivery Date to Charterer Redelivery Date to Owners*** Notes Panamax Bulk Carriers 1 CORONIS C $10,600 5.00% EDF Trading Limited, UK 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 9-Jan-13         $6,500 5.00% Cargill International S.A., Geneva 9-Jan-13 9-Jul-14 - 9-Jan-15     2004 74,444               3 ARETHUSA B $9,250 5.00% DS Norden A/S, Copenhagen 17-May-12 22-Nov-12         $7,300 5.00% Cargill International S.A., Geneva 22-Nov-12 22-May-14 - 22-Nov-14     2007 73,593               4 NAIAS B $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 2-Sep-12 2-Feb-14 - 2-Aug-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     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     2005 73,691               7 PROTEFS B $9,000 5.00% Cargill International S.A., Geneva 14-Sep-12 14-Sep-14 - 14-Feb-15     2004 73,630               8 THETIS B $10,500 5.00% EDF Trading Limited, UK 22-Feb-12 22-Aug-13 - 22-Jun-14 1   2004 73,583               9 DIONE A $9,700 5.00% EDF Trading Limited, UK 19-Jul-12 19-Jul-14 - 19-Dec-14     2001 75,172               10 DANAE A $15,600 5.00% Hyundai Merchant Marine Co., Ltd., Seoul, South Korea 18-Apr-11 10-Mar-13 2,3       $8,250 5.00% Intermare Transport GmbH, Hamburg 10-Mar-13 10-Sep-14 - 10-Jan-15     2001 75,106               11 OCEANIS A $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 4   2001 75,336               13 ALCYON A $34,500 4.75% Cargill International S.A., Geneva 21-Feb-08 19-Nov-12 5,6       $7,750 5.00% EDF Trading Limited, UK 21-Dec-12 21-Nov-14 - 21-May-15     2001 75,247               14 NIREFS A $12,250 5.00% Morgan Stanley Capital Group Inc. 18-Dec-11 29-Jan-13 7,8       $8,000 5.00% Intermare Transport GmbH, Hamburg 29-Jan-13 29-Jul-14 - 29-Jan-15     2001 75,311               15 MELIA G $10,900 5.00% STX Panocean Co., Ltd., Seoul 2-May-12 2-Apr-13 - 2-Jul-13 9   2005 76,225               16 MELITE G $16,500 5.00% Cargill International S.A., Geneva 1-Feb-11 28-Dec-12 10   2004 76,436   $7,750 5.00%   28-Dec-12 1-Jul-14 - 1-Jan-15   17 LETO   $12,900 5.00% EDF Trading Limited, UK 17-Jan-12 17-Jan-14 - 17-Nov-14     2010 81,297                  Kamsarmax Bulk Carriers 18 MAIA H $10,900 5.00% Glencore Grain B.V., Rotterdam 27-Feb-13 12-Aug-14 - 27-Feb-15     2009 82,193               19 MYRTO H $9,000 5.00% Cargill International S.A., Geneva 25-Jan-13 25-Jul-14 - 25-Jan-15     2013 82,131                  Post-Panamax Bulk Carriers 20 ALCMENE   $20,250 5.00% Cargill International S.A., Geneva 20-Nov-10 24-Oct-12 11       $6,250 5.00% Oldendorff GmbH Co., KG, Luebeck 1-Nov-12 11-Dec-12         $7,000 5.00% NCS Shipping Fareast Company Limited, British Virgin Islands 26-Dec-12 13-Feb-13 12       $7,250 5.00% ADM International Sarl, Rolle, Switzerland 22-Feb-13 7-Aug-14 - 22-Feb-15     2010  93,193               21 AMPHITRITE   $10,000 5.00% Bunge S.A., Geneva 15-Aug-12 31-May-14 - 30-Oct-14 13   2012 98,697               22 POLYMNIA   $8,000 5.00% Sino East Transportation Ltd, Hong Kong 21-Nov-12 7-Jan-13         $7,600 5.00% Augustea Bunge Maritime Limited, Malta 16-Jan-13 16-Jul-14 - 16-Jan-15 14   2012 98,704                    Capesize Bulk Carriers 23 NORFOLK   $74,750 3.75% Corus UK Limited 12-Feb-08 16-Jan-13 15   2002 164,218   $10,700 4.50% Clearlake Shipping Pte. Ltd., Singapore 16-Jan-13 16-Jul-14 - 16-Jan-15   24 ALIKI   $26,500 5.00% Minmetals Logistics Group Co. Ltd., Beijing 1-Mar-11 1-Feb-16 - 1-Apr-16     2005 180,235               25 SALT LAKE CITY   $13,000 5.00% Morgan Stanley Capital Group Inc. 11-Aug-12 11-Jun-14 - 11-Dec-14     2005 171,810               26 SIDERIS GS D $30,500 5.00% BHP Billiton Marketing AG 16-Oct-10 14-Mar-13 16,17       $13,500 4.75% Cargill International S.A., Geneva 14-Mar-13 14-Dec-14 - 14-Jun-15 18   2006 174,186               27 SEMIRIO D $17,350 5.00% Cargill International S.A., Geneva 30-May-11 16-Mar-13 16       $14,000 4.75%   16-Mar-13 16-Jan-15 - 16-Jun-15 18   2007 174,261               28 BOSTON D $14,000 5.00% Morgan Stanley Capital Group Inc. 29-Oct-11 29-Aug-13 - 29-Dec-13 19   2007 177,828               29 HOUSTON D $55,000 4.75% Shagang Shipping Co. 3-Nov-09 3-Oct-14 - 3-Jan-15 20   2009 177,729               30 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 31 LOS ANGELES E $18,000 5.00% EDF Trading Limited, UK 9-Feb-12 9-Dec-15 - 9-Apr-16     2012 206,104               32 PHILADELPHIA E $18,000 5.00% EDF Trading Limited, UK 17-May-12 17-Jan-16 - 17-Jul-16     2012 206,040                    Vessels Under Construction 33 HULL H2528 F -- -- -- -- -- -- -- 21   2013 76,000               34 HULL H2529 F -- -- -- -- -- -- -- 21   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 Vessel off-hire from September 23, 2012 to October 3, 2012. 2 Vessel off-hire for unscheduled maintenance from March 04, 2013 to March 06, 2013. 3 Huyndai Merchant Marine Co. Ltd., Seoul, South Korea, has agreed to compensate the owners for the early redelivery of the vessel on March 10, 2013 till the minimum agreed redelivery date, March 18, 2013. 4 Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank Limited. 5 Cargill International S.A., Geneva, has agreed to compensate the owners for the early redelivery of the vessel on November 19, 2012 till the minimum agreed redelivery date, November 21, 2012. 6 Vessel off-hire for scheduled maintenance from November 19, 2012 to December 21, 2012. 7 Vessel off-hire for drydocking from September 26, 2012 to October 15, 2012. 8 Vessel off-hire for unscheduled maintenance from October 18, 2012 to November 30, 2012. 9 Vessel off-hire for drydocking from November 27, 2012 to December 10, 2012. 10 Cargill International S.A., Geneva has agreed to compensate the owners for the early redelivery of the vessel on December 28, 2012 till the minimum agreed redelivery date, January 1, 2013. 11 Vessel drydocked from October 24, 2012 to November 1, 2012. 12 Charter includes a one-time gross ballast bonus payment of US$390,000. 13 The charterer has the option to employ the vessel for a further 11 to 14 month period at a gross charter rate of US$11,300 per day. The optional period, if exercised, must be declared on or before the end of the 21st month of employment and will only commence at the end of the 24th month. 14 The charterer has the option to further employ the vessel for about 11 to maximum 13 months at a gross charter rate of US$11,000 per day. The optional period, if exercised, must be declared on or before the 22nd month of employment and will only commence at the end of the 24th month. 15 Since September 2010 charterers' name has changed to Tata Steel UK, Limited. 16 Estimated redelivery date from the charterers. 17 Since October 25, 2012 charterers have changed to BHP Billiton Singapore Pte, Ltd. 18 Estimated date of delivery to the charterers. 19 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. 20 Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group Co. 21 Year of delivery and dwt are based on shipbuilding contract.  Summary of Selected Financial & Other Data (unaudited)          Three months ended December 31,Years ended December 31, 2012201120122011INCOME STATEMENT DATA (in thousands of US Dollars): Time charter revenues $ 49,379 $ 57,370 $ 220,785 $ 255,669 Voyage expenses 2,083 1,931 8,274 10,597 Vessel operating expenses 19,316 14,868 66,293 55,375 Net income attributed to Diana Shipping Inc. 5,016 20,241 54,639 107,497FLEET DATA Average number of vessels 29.5 24.0 27.6 23.6 Number of vessels 30.0 24.0 30.0 24.0 Weighted average age of vessels 6.0 6.3 6.0 6.3 Ownership days 2,710 2,208 10,119 8,609 Available days 2,675 2,156 9,998 8,474 Operating days 2,575 2,139 9,865 8,418 Fleet utilization 96.3% 99.2% 98.7% 99.3%AVERAGE DAILY RESULTS Time charter equivalent (TCE) rate (1) $ 17,681 $ 25,714 $ 21,255 $ 28,920 Daily vessel operating expenses (2) $ 7,128 $ 6,734 $ 6,551 $ 6,432 ____________________ (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, March 14, 2013. 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 408925.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. (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 INCOME AND COMPREHENSIVE INCOME            Three months ended December 31,Years ended December 31,  2012201120122011          REVENUES:       (audited) Time charter revenues $ 49,379 $ 57,370 $ 220,785 $ 255,669 Other revenues 648 365 2,447 1,117          EXPENSES:         Voyage expenses 2,083 1,931 8,274 10,597 Vessel operating expenses 19,316 14,868 66,293 55,375 Depreciation and amortization of deferred charges 16,102 14,109 62,010 55,278 General and administrative expenses 6,009 6,275 24,913 25,123 Foreign currency gains (264) (161) (1,374) (503)Operating income 6,781 20,713 63,116 110,916          OTHER INCOME / (EXPENSES):         Interest and finance costs (2,054) (1,254) (7,618) (4,924) Interest income 247 336 1,432 1,033 Gain / (loss) from derivative instruments (3) 217 (518) (737) Income / (loss) from investment in Diana Containerships Inc. 45 229 (1,773) 1,207Total other expenses, net (1,765) (472) (8,477) (3,421)          Net Income $ 5,016 $ 20,241 $ 54,639 $ 107,495 Loss assumed by non-controlling interests -- -- -- 2          Net income attributed to Diana Shipping Inc. 5,016 20,241 54,639 107,497Earnings per common share, basic $ 0.06 $ 0.25 $ 0.67 $ 1.33Earnings per common share, diluted $ 0.06 $ 0.25 $ 0.67 $ 1.33          Weighted average number of common shares, basic 80,788,412 81,180,109 81,083,485 81,081,774Weighted average number of common shares, diluted 80,901,900 81,270,341 81,083,485 81,124,348            Three months ended December 31,  Years ended December 31,    2012201120122011Net income $ 5,016 $ 20,241 $ 54,639 $ 107,495 Comprehensive loss assumed by non-controlling interests -- -- -- 2 Other comprehensive income / (loss) (Actuarial gain / (loss)) 306 (96) 306 (96)         Comprehensive income attributed to Diana Shipping Inc. $ 5,322 $ 20,145 $ 54,945 $ 107,401                CONDENSED CONSOLIDATED BALANCE SHEET DATA (in thousands of U.S. Dollars)        20122011ASSETS (unaudited) (unaudited)       Cash and cash equivalents $ 446,624 $ 416,674 Other current assets 20,362 16,017 Advances for vessels under construction and acquisitions and other vessel costs 11,502 63,440 Vessels' net book value 1,211,138 1,046,719 Other fixed assets, net 22,774 21,659 Other non-current assets 30,402 39,962Total assets $ 1,742,802 $ 1,604,471      LIABILITIES AND STOCKHOLDERS' EQUITY           Current liabilities, including current portion of long-term debt $ 61,477 $ 48,095 Long-term debt, net of current portion and deferred financing costs 414,080 345,638 Other non-current liabilities 821 1,860 Total stockholders' equity 1,266,424 1,208,878Total liabilities and stockholders' equity $ 1,742,802 $ 1,604,471                OTHER FINANCIAL DATA (unaudited)  Three months ended December 31,Years ended  December 31,  2012201120122011           Net Cash provided by Operating Activities $ 22,334 $ 33,707 $ 119,886 $ 154,230 Net Cash used in Investing Activities (28,248) (9,613) (169,913) (90,428) Net Cash provided by / (used in) Financing Activities 84 (2,687) 79,977 7,458          CONTACT: Corporate Contact: Ioannis Zafirakis Director, Executive Vice-President and Secretary Telephone: + 30-210-9470100 Email: izafirakis@dianashippinginc.com Website: www.dianashippinginc.com Investor and Media Relations: Edward Nebb Comm-Counsellors, LLC Telephone: + 1-203-972-8350 Email: enebb@optonline.net