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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, 2013

Tuesday, July 30, 2013

Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2013

04:50 EDT Tuesday, July 30, 2013

ATHENS, Greece, July 30, 2013 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX), a global shipping company specializing in the ownership and operation of dry bulk vessels, today reported a net loss of $5.2 million for the second quarter of 2013, compared to net income of $17.4 million reported in the second quarter of 2012.

Time charter revenues were $40.0 million for the second quarter of 2013, compared to $57.6 million for the same quarter of 2012, 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 Philadelphia and Melia, delivered in May 2012; Amphitrite, delivered in August 2012; Polymnia, delivered in November 2012; Myrto, delivered in January 2013; and Maia, delivered in February 2013.

Net loss for the six months ended June 30, 2013 amounted to $8.4 million, compared to net income of $37.3 million for the same period of 2012. Time charter revenues were $82.6 million for the six months ended June 30, 2013, compared to $115.2 million for the same period of 2012.

  Fleet Employment Profile (As of July 30, 2013)  
  Currently Diana's fleet is employed as follows:  
     
  Vessel Sister Gross Rate     Delivery Date Redelivery Date    
  BUILT  DWT Ships* (USD Per Day) Com** Charterer to Charterer to Owners*** Notes  
  Panamax Bulk Carriers  
1 DANAE A $8,250 5.00% Intermare Transport GmbH, Hamburg 10-Mar-13 10-Sep-14 - 10-Jan-15    
  2001  75,106                
2 DIONE A $9,700 5.00% EDF Trading Limited, UK 19-Jul-12 19-Jul-14 - 19-Dec-14    
  2001  75,172                
3 NIREFS A $8,000 5.00% Intermare Transport GmbH, Hamburg 29-Jan-13 29-Jul-14 - 29-Jan-15    
  2001  75,311                
4 ALCYON A $7,750 5.00% EDF Trading Limited, UK 21-Dec-12 21-Nov-14 - 21-May-15    
  2001  75,247                
5 TRITON A $19,500 4.75% Resource Marine Pte., Ltd, Singapore 11-Dec-10 11-Nov-13 - 11-Feb-14 1  
  2001  75,336                
6 OCEANIS A $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 14-Aug-12 14-Jan-14 - 14-Jul-14    
  2001  75,211                
7 THETIS B $10,500 5.00% EDF Trading Limited, UK 22-Feb-12 22-Aug-13 - 22-Jun-14    
  2004  73,583                
8 PROTEFS B $9,000 5.00% Cargill International S.A., Geneva 14-Sep-12 14-Sep-14 - 14-Feb-15    
  2004  73,630                
9 CALIPSO B $12,250 5.00% Louis Dreyfus Commodities Suisse S.A., Geneva 11-Oct-11 29-Jul-13    
      $8,100 4.75% Cargill International S.A., Geneva 29-Jul-13 29-Apr-15 - 29-Aug-15 2  
  2005  73,691                
10 CLIO B $10,750 5.00% Cargill International S.A., Geneva 22-Feb-12 22-Aug-13 3  
      $8,600 4.75%   22-Aug-13 22-May-15 - 22-Aug-15 4  
  2005  73,691                
11 NAIAS B $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 2-Sep-12 2-Feb-14 - 2-Aug-14    
  2006  73,546                
12 ARETHUSA B $7,300 5.00% Cargill International S.A., Geneva 22-Nov-12 22-May-14 22-Nov-14 5  
  2007   73,593                
13 ERATO C $6,500 5.00% Cargill International S.A., Geneva 9-Jan-13 9-Jul-14 - 9-Jan-15    
  2004  74,444                
14 CORONIS C $10,600 5.00% EDF Trading Limited, UK 12-Mar-12 27-Nov-13 - 27-Jun-14    
  2006  74,381                
15 MELITE D $7,750 5.00% Cargill International S.A., Geneva 28-Dec-12 1-Jul-14 - 1-Jan-15    
  2004  76,436                
16 MELIA D $10,900 5.00% STX Panocean Co., Ltd., Seoul 2-May-12 17-Apr-13    
          Rio Tinto Shipping Pty, Ltd., Melbourne 17-Apr-13 2-Mar-14 - 17-May-14    
  2005  76,225   $9,700 3.75%          
17 SHOYO   -- -- -- -- -- -- -- 6  
  (tbr ARTEMIS)                
  2006  76,942                
18 LETO   $12,900 5.00% EDF Trading Limited, UK 17-Jan-12 17-Jan-14 - 17-Nov-14    
  2010  81,297                
     
  Kamsarmax Bulk Carriers  
19 MAIA E $10,900 5.00% Glencore Grain B.V., Rotterdam 27-Feb-13 12-Aug-14 - 27-Feb-15    
  2009  82,193                
20 MYRTO E $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  
21 ALCMENE   $7,250 5.00% ADM International Sarl, Rolle, Switzerland 22-Feb-13 7-Aug-14 - 22-Feb-15    
  2010  93,193              
22 AMPHITRITE   $10,000 5.00% Bunge S.A., Geneva 15-Aug-12 31-May-14 - 30-Oct-14 7  
  2012  98,697                
23 POLYMNIA   $7,600 5.00% Augustea Bunge Maritime Limited, Malta 16-Jan-13 16-Jul-14 - 16-Jan-15 8  
  2012  98,704                
     
  Capesize Bulk Carriers  
24 NORFOLK   $10,700 4.50% Clearlake Shipping Pte. Ltd., Singapore 16-Jan-13 16-Jul-14 - 16-Jan-15    
  2002  164,218                
25 ALIKI   $26,500 5.00% Minmetals Logistics Group Co. Ltd., Beijing 1-Mar-11 1-Feb-16 - 1-Apr-16    
  2005  180,235                
26 BALTIMORE   $15,000 5.00% RWE Supply & Trading GmbH, Essen 8-Jul-13 8-Jul-16 - 8-Jan-17 9  
  2005  177,243                
27 SALT LAKE CITY   $13,000 5.00% Morgan Stanley Capital Group Inc. 11-Aug-12 11-Jun-14 - 11-Dec-14    
  2005  171,810                
28 SIDERIS GS F $13,500 4.75% Cargill International S.A., Geneva 14-Mar-13 14-Dec-14 - 14-Jun-15    
  2006  174,186                
29 SEMIRIO F $14,000 4.75% Cargill International S.A., Geneva 19-Mar-13 19-Jan-15 - 19-Jun-15    
  2007  174,261                
30 BOSTON F $14,000 5.00% Morgan Stanley Capital Group Inc. 29-Oct-11 25-Aug-13 3  
      $14,250 4.75% Clearlake Shipping Pte. Ltd., Singapore 25-Aug-13 10-Aug-15 - 9-Feb-16 4  
  2007  177,828                
31 HOUSTON F $55,000 4.75% Shagang Shipping Co. 3-Nov-09 3-Oct-14 - 3-Jan-15 10  
  2009  177,729                
32 NEW YORK F $48,000 3.75% Nippon Yusen Kaisha, Tokyo (NYK) 3-Mar-10 3-Jan-15 - 3-May-15    
  2010  177,773                
     
  Newcastlemax Bulk Carriers  
33 LOS ANGELES G $18,000 5.00% EDF Trading Limited, UK 9-Feb-12 9-Dec-15 - 9-Apr-16    
  2012  206,104                
34 PHILADELPHIA G $18,000 5.00% EDF Trading Limited, UK 17-May-12 17-Jan-16 - 17-Jul-16    
  2012  206,040                
     
  Vessels Under Construction  
35 HULL H2528 H -- -- -- -- -- -- -- 11  
  (tbn CRYSTALIA)                
  2013  76,000                
36 HULL H2529 H -- -- -- -- -- -- -- 11  
  (tbn ATALANDI)                
  2014  76,000                
37 HULL H2548 I -- -- -- -- -- -- -- 12  
  2016  208,500                
38 HULL H2549 I -- -- -- -- -- -- -- 12  
  2016  208,500                
* 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 Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank Limited.  
2 The previous charterers, Louis Dreyfus Commodities Suisse S.A., Geneva, have agreed to compensate the owners for the early redelivery of the vessel by paying the difference between the new rate and the previous rate, from the estimated redelivery date from the previous charterers, to August 11, 2013.  
3 Estimated redelivery date from the charterers.  
4 Estimated delivery date to the charterers.  
5 Vessel off-hire for unscheduled maintenance from April 14, 2013 to April 16, 2013.  
6 Expected date of delivery to the buyers during September 2013.  
7 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.  
8 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.  
9 Vessel delivered to the Company on June 13, 2013. Due to scheduled maintenance, the vessel was delivered to the charterers on July 8, 2013.  
10 Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group Co.  
11 Based on latest information received by the yard.  
12 Year of delivery and dwt are based on shipbuilding contract.  
 
 
Summary of Selected Financial & Other Data (unaudited)
   Three months ended June 30,  Six months ended June 30,
  2013 2012 2013 2012
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):    
Time charter revenues $ 40,005 $ 57,583 $ 82,605 $ 115,185
Voyage expenses 2,093 2,922 4,291 5,101
Vessel operating expenses 19,569 15,371 37,527 30,028
Net income / (loss) (5,246) 17,377 (8,430) 37,338
FLEET DATA        
Average number of vessels 32.2 27.2 31.7 26.3
Number of vessels 33.0 28.0 33.0 28.0
Weighted average age of vessels 6.4 5.9 6.4 5.9
Ownership days 2,930 2,472 5,736 4,785
Available days 2,930 2,456 5,736 4,739
Operating days 2,906 2,445 5,678 4,723
Fleet utilization 99.2% 99.6% 99.0% 99.7%
AVERAGE DAILY RESULTS        
Time charter equivalent (TCE) rate (1) $ 12,939 $ 22,256 $ 13,653 $ 23,229
Daily vessel operating expenses (2) $ 6,679 $ 6,218 $ 6,542 $ 6,275
         

(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 Tuesday, July 30, 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 417255.

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 OPERATIONS AND COMPREHENSIVE INCOME / (LOSS)
 
   Three months ended June 30,  Six months ended June 30, 
  2013 2012 2013 2012
         
 REVENUES:        
 Time charter revenues $ 40,005 $ 57,583 $ 82,605 $ 115,185
 Other revenues  --  618  447  1,186
         
 EXPENSES:        
 Voyage expenses  2,093  2,922  4,291  5,101
 Vessel operating expenses  19,569  15,371  37,527  30,028
 Depreciation and amortization of deferred charges  15,919  15,327  31,468  29,915
 General and administrative expenses  5,479  6,564  10,943  12,682
 Foreign currency gains  (317)  (378)  (391)  (772)
 Operating income / (loss)  (2,738)  18,395  (786)  39,417
         
 OTHER INCOME / (EXPENSES):        
 Interest and finance costs  (2,025)  (1,855)  (4,089)  (3,398)
 Interest income   150  517  350  895
 Loss from derivative instruments  (30)  (39)  (33)  (240)
 Income / (loss) from investment in Diana Containerships Inc.  (603)  359  (3,872)  664
 Total other expenses, net  (2,508)  (1,018)  (7,644)  (2,079)
         
 Net Income / (loss)  (5,246)  17,377  (8,430)  37,338
         
Earnings / (loss) per common share, basic and diluted $ (0.06) $ 0.21 $ (0.10) $ 0.46
         
Weighted average number of common shares, basic and diluted 81,382,997 81,393,077 81,222,049 81,309,564
     
     
  Three months ended June 30, Six months ended June 30, 
  2013 2012 2013 2012
Net income / (loss) $ (5,246) $ 17,377 $ (8,430) $ 37,338
Other comprehensive loss (Actuarial loss)  --  --  (98)  --
Comprehensive income / (loss) $ (5,246) $ 17,377 $ (8,528) $ 37,338
   
   
CONDENSED CONSOLIDATED BALANCE SHEET DATA (unaudited)  
(in thousands of U.S. Dollars)  
     
  June 30,
2013
December 31,
2012
ASSETS    
     
Cash and cash equivalents $ 375,346 $ 446,624
Other current assets 16,155 20,362
Advances for vessels under construction and acquisitions and other vessel costs 39,459 11,502
Vessels' net book value 1,255,909 1,211,138
Other fixed assets, net 22,985 22,774
Other non-current assets 22,690 30,402
Total assets $ 1,732,544 $ 1,742,802
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities, including current portion of long-term debt $ 61,694 $ 61,477
Long-term debt, net of current portion and deferred financing costs 408,047 414,080
Other non-current liabilities 839 821
Total stockholders' equity 1,261,964 1,266,424
Total liabilities and stockholders' equity $ 1,732,544 $ 1,742,802
 
 
OTHER FINANCIAL DATA (unaudited)
   Three months ended June 30,   Six months ended June 30,
  2013 2012 2013 2012
         
 Net Cash provided by Operating Activities $ 16,454 $ 31,590 $ 33,848 $ 68,033
 Net Cash used in Investing Activities  (52,506)  (55,559)  (100,186)  (117,293)
 Net Cash provided by / (used in) Financing Activities  (932)  33,423  (4,940)  84,062
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

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