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Press release from GlobeNewswire (a Nasdaq OMX company)

Diana Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2013

Tuesday, November 19, 2013

Diana Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2013

04:45 EST Tuesday, November 19, 2013

ATHENS, Greece, Nov. 19, 2013 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX), a global shipping company specializing in the ownership of dry bulk vessels, today reported a net loss of $3.2 million for the third quarter of 2013, compared to net income of $12.3 million reported for the third quarter of 2012.

Time charter revenues were $41.9 million for the third quarter of 2013, compared to $56.2 million for the same period 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 enlargement of our fleet.

Net loss for the nine months ended September 30, 2013 amounted to $11.6 million, compared to net income of $49.6 million for the same period of 2012. Time charter revenues were $124.5 million for the nine months ended September 30, 2013, compared to $171.4 million for the same period of 2012.

  Fleet Employment Profile (As of November 18, 2013)
  Currently Diana Shipping Inc.'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
                 
DANAE A $8,250 5.00% Intermare Transport GmbH, Hamburg 10-Mar-13 10-Sep-14 - 10-Jan-15  
  2001 75,106              
DIONE A $9,700 5.00% EDF Trading Limited, UK 19-Jul-12 19-Jul-14 - 19-Dec-14  
  2001 75,172              
NIREFS A $8,000 5.00% Intermare Transport GmbH, Hamburg 29-Jan-13 29-Jul-14 - 29-Jan-15  
                 
  2001 75,311              
ALCYON A $7,750 5.00% EDF Trading Limited, UK 21-Dec-12 21-Nov-14 - 21-May-15  
  2001 75,247              
TRITON A $19,500 4.75% Resource Marine Pte., Ltd, Singapore 11-Dec-10 8-Nov-13 1,2
      $11,000 5.00% CCX Shipping Co., Ltd, Hong Kong 11-Nov-13 29-Nov-13 - 1-Dec-13
  2001 75,336              
OCEANIS A $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 14-Aug-12 14-Jan-14 - 14-Jul-14  
  2001 75,211              
THETIS B $10,500 5.00% EDF Trading Limited, UK 22-Feb-12 1-Sep-13  
      $8,300 5.00%   1-Sep-13 1-Jul-15 - 1-Dec-15  
  2004 73,583              
PROTEFS B $9,000 5.00% Cargill International S.A., Geneva 14-Sep-12 14-Sep-14 - 14-Feb-15  
  2004 73,630              
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
  2005 73,691              
10  CLIO B $10,750 5.00% Cargill International S.A., Geneva 22-Feb-12 22-Aug-13  
      $8,600 4.75%   22-Aug-13 22-May-15 - 22-Aug-15  
  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  
  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 $9,700 3.75% Rio Tinto Shipping Pty, Ltd., Melbourne 17-Apr-13 2-Mar-14 - 17-May-14  
  2005 76,225              
17  ARTEMIS   $9,375 3.75% Rio Tinto Shipping Pty, Ltd., Melbourne 26-Aug-13 26-Jun-15 - 26-Oct-15  
  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  MYRSINI E $15,500 4.75% Clearlake Shipping Pte. Ltd., Singapore 12-Oct-13 12-Feb-14 - 27-Apr-14
  2010 82,117              
21  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
22  ALCMENE   $7,250 5.00% ADM International Sarl, Rolle, Switzerland 22-Feb-13 7-Aug-14 - 22-Feb-15  
  2010  93,193              
23  AMPHITRITE   $10,000 5.00% Bunge S.A., Geneva 15-Aug-12 31-May-14 - 30-Oct-14
  2012 98,697              
24  POLYMNIA   $7,600 5.00% Augustea Bunge Maritime Limited, Malta 16-Jan-13 16-Jul-14 - 16-Jan-15 8,9
  2012  98,704              
   
  Capesize Bulk Carriers
25  NORFOLK   $10,700 4.50% Clearlake Shipping Pte. Ltd., Singapore 16-Jan-13 16-Jul-14 - 16-Jan-15
  2002 164,218              
26  ALIKI   $26,500 5.00% Minmetals Logistics Group Co. Ltd., Beijing 1-Mar-11 1-Feb-16 - 1-Apr-16  
  2005 180,235              
27  BALTIMORE   $15,000 5.00% RWE Supply & Trading GmbH, Essen 8-Jul-13 8-Jul-16 - 8-Jan-17 10 
  2005 177,243              
28  SALT LAKE CITY   $13,000 5.00% Morgan Stanley Capital Group Inc. 11-Aug-12 11-Jun-14 - 11-Dec-14  
  2005 171,810              
29  SIDERIS GS F $13,500 4.75% Cargill International S.A., Geneva 14-Mar-13 14-Dec-14 - 14-Jun-15  
  2006 174,186              
30  SEMIRIO F $14,000 4.75% Cargill International S.A., Geneva 19-Mar-13 19-Jan-15 - 19-Jun-15  
  2007 174,261              
31  BOSTON F $14,000 5.00% Morgan Stanley Capital Group Inc. 29-Oct-11 24-Aug-13  
      $14,250 4.75% Clearlake Shipping Pte. Ltd., Singapore 24-Aug-13 9-Aug-15 - 8-Feb-16
  2007 177,828              
32  HOUSTON F $55,000 4.75% Shagang Shipping Co. 3-Nov-09 3-Oct-14 - 3-Jan-15 11 
  2009 177,729              
33  NEW YORK F $48,000 3.75% Nippon Yusen Kaisha, Tokyo (NYK) 3-Mar-10 3-Jan-15 - 3-May-15  
  2010 177,773              
34  JK PIONEER   $18,350 5.00% RWE Supply & Trading GmbH, Essen 26-Nov-13 11-Sep-15 - 31-Dec-15 12 
  (tbr P. S. PALIOS)              
  2013 179,134              
   
  Newcastlemax Bulk Carriers
35  LOS ANGELES G $18,000 5.00% EDF Trading Limited, UK 9-Feb-12 9-Dec-15 - 9-Apr-16  
  2012 206,104              
36  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
37  HULL H2528 H -- -- -- -- -- -- -- 13 
  (tbn CRYSTALIA)              
  2014 76,000              
38  HULL H2529 H -- -- -- -- -- -- -- 13 
  (tbn ATALANDI)              
  2014 76,000              
39  HULL H2548 I -- -- -- -- -- -- -- 14 
  2016 208,500              
40  HULL H2549 I -- -- -- -- -- -- -- 14 
  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 Resource Marine Pte., Ltd, Singapore has agreed to compensate the owners for the early redelivery of the vessel on November 8, 2013 till the minimum agreed redelivery date, November 11, 2013.
3 Redelivery dates based on an estimated voyage duration of about 18-20 days.
4 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 July 29, 2013 to August 11, 2013.
5 Vessel off-hire from October 20, 2013 to October 21, 2013.
6 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
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 Since October 12, 2013, charterers have changed to Bunge S.A., Geneva.
10 Vessel delivered to the Company on June 13, 2013. Due to scheduled maintenance, the vessel was delivered to the charterers on July 8, 2013.
11 Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group Co.
12 Estimated date.
13 Based on latest information received by the yard.
14 Year of delivery and dwt are based on shipbuilding contract.
 
 
Summary of Selected Financial & Other Data (unaudited)
  Three months ended September 30, Nine months ended September 30,
  2013 2012 2013 2012
 
 
       
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):    
Time charter revenues $ 41,936  $ 56,220  $ 124,541  $ 171,405 
Voyage expenses 2,031  1,090  6,321  6,191 
Vessel operating expenses 19,735  16,950  57,262  46,977 
Net income / (loss) (3,179) 12,285  (11,609) 49,623 
FLEET DATA        
Average number of vessels 33.4  28.5  32.3  27.0 
Number of vessels 34.0  29.0  34.0  29.0 
Weighted average age of vessels 6.7  5.9  6.7  5.9 
Ownership days 3,072  2,624  8,808  7,409 
Available days 3,072  2,584  8,808  7,323 
Operating days 3,062  2,567  8,740  7,290 
Fleet utilization 99.7% 99.3% 99.2% 99.5%
AVERAGE DAILY RESULTS        
Time charter equivalent (TCE) rate (1) $ 12,990  $ 21,335  $ 13,422  $ 22,561 
Daily vessel operating expenses (2) $ 6,424  $ 6,460  $ 6,501  $ 6,341 
         
 
(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, November 19, 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 422637.

About the Company

Diana Shipping Inc. is a leading 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, 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 September 30, Nine months ended September 30,
  2013 2012 2013 2012
         
REVENUES:        
Time charter revenues $ 41,936  $ 56,220  $ 124,541  $ 171,405 
Other revenues  --   614   446   1,800 
         
EXPENSES:        
Voyage expenses  2,031   1,090   6,321   6,191 
Vessel operating expenses  19,735   16,950   57,262   46,977 
Depreciation and amortization of deferred charges  16,397   15,993   47,865   45,908 
General and administrative expenses  5,399   6,222   16,342   18,904 
Foreign currency gains  (182)  (338)  (573)  (1,110)
Operating income / (loss)  (1,444)  16,917   (2,230)  56,335 
         
OTHER INCOME / (EXPENSES):        
Interest and finance costs  (2,057)  (2,165)  (6,146)  (5,564)
Interest and other income   520   291   870   1,186 
Loss from derivative instruments  (58)  (276)  (92)  (516)
Loss from investment in Diana Containerships Inc.  (140)  (2,482)  (4,011)  (1,818)
Total other expenses, net  (1,735)  (4,632)  (9,379)  (6,712)
         
Net Income / (loss)  (3,179)  12,285   (11,609)  49,623 
         
Earnings / (loss) per common share, basic and diluted $ (0.04) $ 0.15  $ (0.14) $ 0.61 
         
Weighted average number of common shares, basic and diluted 81,382,997  80,931,326  81,276,288  81,182,564 
         
  Three months ended September 30, Nine months ended September 30,
  2013 2012 2013 2012
Net income / (loss) $ (3,179) $ 12,285  $ (11,609) $ 49,623 
Other comprehensive loss (Actuarial loss)  --   --   (98)  -- 
Comprehensive income / (loss) $ (3,179) $ 12,285  $ (11,707) $ 49,623 
     
     
CONDENSED CONSOLIDATED BALANCE SHEET DATA (unaudited)    
(in thousands of U.S. Dollars)    
 
 
   
  September 30, 2013 December 31, 2012
ASSETS    
     
Cash and cash equivalents $ 315,740  $ 446,624 
Other current assets 14,990  20,362 
Advances for vessels under construction and acquisitions and other vessel costs 40,904  11,502 
Vessels' net book value 1,261,502  1,211,138 
Other fixed assets, net 22,931  22,774 
Other non-current assets 70,920  30,402 
Total assets $ 1,726,987  $ 1,742,802 
 
 
   
LIABILITIES AND STOCKHOLDERS' EQUITY    
 
 
   
Current liabilities, including current portion of long-term debt $ 61,475  $ 61,477 
Long-term debt, net of current portion and deferred financing costs 403,787  414,080 
Other non-current liabilities 873  821 
Total stockholders' equity 1,260,852  1,266,424 
Total liabilities and stockholders' equity $ 1,726,987  $ 1,742,802 
         
OTHER FINANCIAL DATA (unaudited)        
  Three months ended September 30, Nine months ended September 30,
  2013 2012  2013 2012 
 
 
       
 Net Cash provided by operating activities $ 17,157  $ 29,519  $ 51,005  $ 97,552 
 Net Cash used in investing activities  (72,353)  (24,372)  (172,539)  (141,665)
 Net Cash provided by / (used in) financing activities $ (4,410) $ (4,169) $ (9,350) $ 79,893 
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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