Diana Shipping Inc reports financial results for Q3 and nine months ended 30 Sept 2014

Dry Bulkcarriers, Markets, News — By on November 25, 2014 at 4:25 PM

ATHENS, GREECE, November 25, 2014 – Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported net income of $7.7 million and net income available to common stockholders of $6.3 million for the third quarter of 2014, compared to net loss and net loss available to common stockholders of $3.2 million reported in the third quarter of 2013.

Time charter revenues were $45.1 million for the third quarter of 2014, compared to $41.9 million for the same quarter of 2013. This increase was mainly due to the increase in ownership days resulting from the enlargement of our fleet and was partly offset by decreased time charter rates compared to the third quarter of 2013.

Net loss and net loss available to common stockholders forsideris GS FUNNEL the nine months ended September 30, 2014 amounted to $4.0 million and $7.7 million, respectively, compared to net loss and net loss available to common stockholders of $11.6 million for the same period of 2013. Time charter revenues were $129.4 million for the nine months ended September 30, 2014, compared to $124.5 million for the same period of 2013.

Share Repurchase Plan

As previously announced, on May 23, 2014, the Company’s Board of Directors authorized a share repurchase plan, under which, during the third quarter of 2014, the Company repurchased and retired 1, 038, 645 shares at an aggregate cost of approximately $10.0 million, or an average of $9.65 per common share, decreasing the Company’s issued and outstanding shares as of September 30, 2014 to 82, 352, 725.

 

 

Fleet Employment Profile (As of November 24, 2014)
Currently Diana Shipping Inc.’s fleet is employed as follows:

 

Vessel

Sister Ships*

Gross Rate (USD Per Day)

Com**

Charterer

Delivery Date to Charterer

Redelivery Date to Owners***

Notes

BUILT    DWT

Panamax Bulk Carriers

1

DANAE

A

$8, 250

5.00%

Intermare Transport GmbH, Hamburg

10-Mar-13

24-Dec-14 – 10-Jan-15

1

2001    75, 106

2

DIONE

A

$9, 700

5.00%

EDF Trading Limited, UK

19-Jul-12

10-Sep-14

$9, 250

5.00%

RWE Supply & Trading GmbH, Essen

12-Sep-14

12-Oct-15 – 27-Feb-16

2001    75, 172

3

NIREFS

A

$8, 000

5.00%

Intermare Transport GmbH, Hamburg

29-Jan-13

15-Nov-14

$10, 700

5.00%

RICS Shipping Co. Ltd., Seoul

15-Nov-14

20-Dec-14

2

2001    75, 311

4

ALCYON

A

$7, 750

5.00%

EDF Trading Limited, UK

21-Dec-12

7-Dec-14 – 21-May-15

1

2001    75, 247

5

TRITON

A

$11, 000

5.00%

Bunge S.A., Geneva

16-Dec-13

24-Oct-14

2001    75, 336

$9, 250

5.00%

Glencore Grain B.V., Rotterdam

24-Oct-14

24-Sep-15 – 24-Dec-15

6

OCEANIS

A

$9, 000

5.00%

Glencore Grain B.V., Rotterdam

19-Jun-14

19-Jan-15 – 19-Apr-15

2001    75, 211

7

THETIS

B

$8, 300

5.00%

EDF Trading Limited, UK

1-Sep-13

1-Jul-15 – 1-Dec-15

2004    73, 583

8

PROTEFS

B

$9, 000

5.00%

Cargill International S.A., Geneva

14-Sep-12

19-Dec-14 – 14-Mar-15

1, 3, 4

2004    73, 630

9

CALIPSO

B

$8, 100

4.75%

Cargill International S.A., Geneva

29-Jul-13

29-Apr-15 – 29-Aug-15

2005    73, 691

10

CLIO

B

$8, 600

4.75%

Cargill International S.A., Geneva

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

4-Aug-14

$5, 500

5.00%

Bunge S.A., Geneva

4-Aug-14

3-Sep-14

$8, 500

5.00%

3-Sep-14

4-Jul-15 – 4-Oct-15

2006    73, 546

12

ARETHUSA

B

$7, 300

5.00%

Cargill International S.A., Geneva

22-Nov-12

20-Oct-14

$8, 250

5.00%

Intergis Co., Ltd, Seoul

20-Oct-14

20-Nov-14

5

$8, 250

5.00%

Glencore Grain B.V., Rotterdam

20-Nov-14

5-Mar-15 – 4-Jun-15

2007     73, 593

13

ERATO

C

$6, 500

5.00%

Cargill International S.A., Geneva

9-Jan-13

15-Nov-14

6

$8, 500

5.00%

27-Nov-14

6-Jan-15 – 8-Jan-15

1, 7

2004    74, 444

RWE Supply & Trading GmbH, Essen

14

CORONIS

C

$11, 550

5.00%

Oberon Holdings Limited

12-Jun-14

12-May-15 – 12-Aug-15

2006    74, 381

15

MELITE

D

$7, 750

5.00%

Cargill International S.A., Geneva

28-Dec-12

19-Dec-14 – 1-Jan-15

1

2004     76, 436

16

MELIA

D

$12, 000

3.75%

Rio Tinto Shipping Pty, Ltd., Melbourne

10-May-14

10-Apr-15 – 10-Jul-15

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

19-Jul-14

$11, 350

4.75%

Cargill International S.A., Geneva

19-Jul-14

19-Jun-15 – 19-Sep-15

2010     81, 297

19

CRYSTALIA

E

$15, 800

5.00%

Glencore Grain B.V., Rotterdam

21-Feb-14

21-Aug-15 – 21-Nov-15

2014    77, 525

20

ATALANDI

E

$13, 500

5.00%

Glencore Grain B.V., Rotterdam

13-May-14

13-Apr-15 – 13-Jul-15

2014    77, 529

Kamsarmax Bulk Carriers

21

MAIA

F

$10, 900

5.00%

Glencore Grain B.V., Rotterdam

27-Feb-13

11-Sep-14

8

$12, 000

5.00%

RWE Supply & Trading GmbH, Essen

29-Sep-14

29-Sep-15 – 29-Jan-16

2009     82, 193

22

MYRSINI

F

$15, 500

4.75%

Clearlake Shipping Pte. Ltd., Singapore

12-Feb-14

15-Feb-15 – 10-May-15

9, 10

2010     82, 117

23

MYRTO

F

$9, 000

5.00%

Cargill International S.A., Geneva

25-Jan-13

19-Dec-14 – 25-Jan-15

1

2013     82, 131

Post-Panamax Bulk Carriers

24

ALCMENE

$7, 250

5.00%

ADM International Sarl, Rolle, Switzerland

22-Feb-13

13-Jan-15 – 22-Feb-15

1

2010     93, 193

25

AMPHITRITE

$10, 000

5.00%

Bunge S.A., Geneva

15-Aug-12

15-Aug-14

11

$11, 300

15-Aug-14

15-Jul-15 – 15-Oct-15

2012     98, 697

26

POLYMNIA

$7, 600

5.00%

Bunge S.A., Geneva

16-Jan-13

7-Dec-14 – 16-Jan-15

1, 12

2012    98, 704

Capesize Bulk Carriers

27

NORFOLK

$10, 700

4.50%

Clearlake Shipping Pte. Ltd., Singapore

16-Jan-13

7-Dec-14 – 16-Jan-15

1, 9, 13

2002    164, 218

28

ALIKI

$26, 500

5.00%

Minmetals Logistics Group Co. Ltd., Beijing

1-Mar-11

1-Feb-16 – 1-Apr-16

14

2005    180, 235

29

BALTIMORE

$15, 000

5.00%

RWE Supply & Trading GmbH, Essen

8-Jul-13

8-Jul-16 – 8-Jan-17

2005    177, 243

30

SALT LAKE CITY

$13, 000

5.00%

Morgan Stanley Capital Group Inc.

11-Aug-12

23-Nov-14

$16, 200

5.00%

Kawasaki Kisen Kaisha, Ltd., Tokyo

23-Nov-14

28-Dec-14

15

2005    171, 810

31

SIDERIS GS

G

$13, 500

4.75%

Cargill International S.A., Geneva

14-Mar-13

19-Dec-14 – 14-Jun-15

1

2006    174, 186

32

SEMIRIO

G

$14, 000

4.75%

Cargill International S.A., Geneva

19-Mar-13

19-Jan-15 – 19-Jun-15

2007    174, 261

33

BOSTON

G

$14, 250

4.75%

Clearlake Shipping Pte. Ltd., Singapore

24-Aug-13

9-Aug-15 – 8-Feb-16

9

2007    177, 828

34

HOUSTON

G

$20, 500

4.75%

Clearlake Shipping Pte. Ltd., Singapore

3-Dec-13

24-Dec-14 – 18-Feb-15

1, 9, 16

2009    177, 729

35

NEW YORK

G

$48, 000

3.75%

Nippon Yusen Kaisha, Tokyo (NYK)

3-Mar-10

2-Dec-14

1, 17

2010    177, 773

36

P. S. PALIOS

$18, 350

5.00%

RWE Supply & Trading GmbH, Essen

3-Dec-13

18-Sep-15 – 31-Dec-15

2013    179, 134

37

G. P. ZAFIRAKIS

$25, 250

5.00%

RWE Supply & Trading GmbH, Essen

23-Aug-14

14-Feb-16 – 23-Jun-16

2014    179, 492

Newcastlemax Bulk Carriers

38

LOS ANGELES

H

$18, 000

5.00%

EDF Trading Limited, UK

9-Feb-12

9-Dec-15 – 9-Apr-16

2012    206, 104

39

PHILADELPHIA

H

$18, 000

5.00%

EDF Trading Limited, UK

17-May-12

17-Jan-16 – 17-Jul-16

2012    206, 040

Vessels Under Construction

40

HULL DY6006

– – –

18

2016   82, 000

41

HULL H2548

I

– – –

18

2016   208, 500

42

HULL H2549

I

– – –

18

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 Based on latest information.
2 Redelivery date based on an estimated time charter trip duration of about 35 days.
3 During September 2014, the vessel was off-hire for drydocking for approximately 12 days.
4 On October 14, 2014, the Company signed an addendum, extending the initially agreed maximum redelivery date by a month.
5 Charterers exercised their option to redeliver the vessel back to owners at West Coast India area and paid US$8, 250 per day for the entire period instead  of US$7, 600 per day previously announced.
6 Vessel off-hire for drydocking from August 1, 2014 to August 16, 2014.
7 Redelivery dates based on an estimated time charter trip duration of about 40-42 days.
8 Vessel off-hire for drydocking from September 11, 2014 to September 29, 2014.
9 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
10 The vessel was off-hire for approximately 10 days.
11 On May 13, 2014, the charterers exercised 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.
12 Prior to October 12, 2013, chartered to Augustea Bunge Maritime Limited, Malta.
13 Vessel off-hire for drydocking from September 9, 2014 to October 14, 2014.
14 Vessel off-hire for drydocking from October 17, 2014 to November 14, 2014.
15 Redelivery date based on an estimated time charter trip duration of about 35 days.
16 Vessel off-hire for drydocking from July 27, 2014 to August 5, 2014.
17 Nippon Yusen Kaisha, Tokyo (NYK) has agreed to compensate the owners in case of a redelivery of the vessel earlier than the previously agreed minimum date, i.e. January 3, 2015.
18 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,

 

 

2014

 

2013

 

2014

 

2013

 

STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):

 

Time charter revenues

$

 45, 147

$

 41, 936

$

 129, 442

$

 124, 541

 

Voyage expenses

 2, 568

 2, 031

 7, 207

 6, 321

 

Vessel operating expenses

 21, 997

 19, 735

 64, 587

 57, 262

 

Net income / (loss)

 7, 742

 (3, 179)

 (4, 033)

 (11, 609)

 

Net income / (loss) available to common stockholders

 6, 300

 (3, 179)

 (7, 671)

 (11, 609)

FLEET DATA
Average number of vessels

38.4

33.4

37.5

32.3

Number of vessels

 39

34.0

 39

34.0

Weighted average age of vessels

6.8

6.7

6.8

6.7

Ownership days

 3, 537

 3, 072

 10, 234

 8, 808

Available days

 3, 463

 3, 072

 10, 120

 8, 808

Operating days

 3, 454

 3, 062

 10, 063

 8, 740

Fleet utilization

99.7%

99.7%

99.4%

99.2%

AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1)

$

 12, 295

$

 12, 990

$

 12, 079

$

 13, 422

Daily vessel operating expenses (2)

$

 6, 219

$

 6, 424

$

 6, 311

$

 6, 501

 

_____________________

(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 Tuesday, November 25, 2014.

 

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 13593167.

 

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, vessel 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,

 

 

2014

 

2013

 

2014

 

2013

 

REVENUES:      
Time charter revenues

$

 45, 147

$

 41, 936

$

 129, 442

$

 124, 541

Other revenues

 –

 –

 –

 446

EXPENSES:
Voyage expenses

 2, 568

 2, 031

 7, 207

 6, 321

Vessel operating expenses

 21, 997

 19, 735

 64, 587

 57, 262

Depreciation and amortization of deferred charges

 17, 998

 16, 397

 52, 212

 47, 865

  General and administrative expenses

 6, 203

 5, 399

 18, 736

 16, 342

Foreign currency gain

 (130)

 (182)

 (280)

 (573)

Operating loss

 (3, 489)

 (1, 444)

 (13, 020)

 (2, 230)

OTHER INCOME / (EXPENSES):
Interest and finance costs

 (2, 198)

 (2, 057)

 (6, 261)

 (6, 146)

Interest and other income

 899

 520

 2, 742

 870

Income / (loss) from derivative instruments

 –

 (58)

 68

 (92)

Income / (loss) from investment in Diana Containerships Inc.

 12, 530

 (140)

 12, 438

 (4, 011)

  Total other income / (expenses), net

 11, 231

 (1, 735)

 8, 987

 (9, 379)

 
Net income / (loss)

 7, 742

 (3, 179)

 (4, 033)

 (11, 609)

   
Earnings allocated to preferred stock

 (1, 442)

 –

 (3, 638)

 –

   
Net income / (loss) attributed to common stockholders

 6, 300

 (3, 179)

 (7, 671)

 (11, 609)

   
Earnings / (loss) per common share, basic and diluted

$

 0.08

$

 (0.04)

$

 (0.09)

$

 (0.14)

 
Weighted average number of common shares, basic

81, 745, 223

81, 382, 997

81, 864, 186

81, 276, 288

 
Weighted average number of common shares, diluted

82, 065, 783

81, 382, 997

81, 864, 186

81, 276, 288

Three months ended September 30,

Nine months ended September 30,

2014

 

2013

 

2014

 

2013

Net income / (loss) $

 7, 742

$

 (3, 179)

$

 (4, 033)

$

 (11, 609)

Other comprehensive loss (Actuarial loss)

 –

 –

 –

 (98)

Comprehensive income / (loss) $

 7, 742

$

 (3, 179)

$

 (4, 033)

$

 (11, 707)

 

 

CONDENSED CONSOLIDATED BALANCE SHEET DATA (unaudited)  
(in thousands of U.S. Dollars)

 

 

     

 

September 30, 2014

 

December 31, 2013

ASSETS  
           
Cash and cash equivalents $

201, 176

$

240, 633

Other current assets

17, 199

11, 235

Advances for vessels under construction and acquisitions and other vessel costs

19, 329

38, 862

Vessels’ net book value  

1, 390, 757

 

1, 320, 375

Other fixed assets, net  

22, 804

 

22, 826

Other non-current assets

120, 824

68, 050

Total assets $

1, 772, 089

$

1, 701, 981

 
LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

   

 

 

Current liabilities, including current portion of long-term debt

$

93, 025

$

62, 752

Long-term debt, net of current portion and deferred financing costs

373, 975

385, 025

Other non-current liabilities

738

812

Total stockholders’ equity

1, 304, 351

1, 253, 392

Total liabilities and stockholders’ equity $

1, 772, 089

$

1, 701, 981

 

OTHER FINANCIAL DATA (unaudited)

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2014

 

2013 

 

2014

 

2013 

 Net Cash provided by operating activities $

 11, 610

$

 17, 157

$

 32, 410

$

 51, 005

 Net Cash used in investing activities

 (102, 841)

 (72, 353)

 (141, 102)

 (172, 539)

 Net Cash provided by / (used in) financing activities $

 (16, 699)

$

 (4, 410)

$

 69, 235

$

 (9, 350)

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