Diana reports financial results for Q2 and Six Months ended June 30, 2017

Dry Bulkcarriers, Markets, News, Reports, Statistics, Stock Markets — By on July 26, 2017 at 5:01 PM

Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2017

ATHENS, GREECE, July 26, 2017 – Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported a net loss of $23.8 million and net loss attributed to common stockholders of $25.3 million for the second quarter of 2017. This compares to a net loss of $31.3 million and  net loss attributed to common stockholders of $32.7 million for the second quarter of 2016.

Time charter revenues were $37.8 million for the second quarter of 2017, compared to $28.3 million for the same quarter of 2016. The increase in time charter revenues was due to increased average time charter rates achieved for the Company’s vessels during the quarter and increased revenues resulting from the enlargement of the fleet.

Net loss and net loss attributed to common stockholders for the six months ended June 30, 2017 amounted to $50.3 million and $53.2 million, respectively. This compares to a net loss and net loss attributed to common stockholders of $62.7 million and $65.6 million, respectively, for the same period of 2016. Time charter revenues were $69.0 million for the six months ended June 30, 2017, compared to $59.1 million for the same period of 2016.

Fleet Employment Profile (As of July 24, 2017)
Diana Shipping Inc.’s fleet is employed as follows:
  Vessel Sister Ships* Gross Rate (USD Per Day) Com** Charterers Delivery Date to Charterers*** Redelivery Date to Owners**** Notes
BUILT    DWT
23 Panamax Bulk Carriers
1 DANAE A $9,000 4.75% Cargill International S.A., Geneva 8-Mar-17 24-May-17 1
Phaethon International Company AG
2001    75,106 $7,750 5.00% 24-May-17 9-Oct-17 – 29-Dec-17
2 DIONE A $7,200 5.00% Caravel Shipping Limited, Hong Kong

 

3-Feb-17 4-May-17
2001    75,172 $7,050 5.00% 4-May-17 3-Nov-17 – 18-Feb-18
3 NIREFS A $6,500 5.00% Raffles Shipping International Pte. Ltd., Singapore 14-Feb-17 5-May-17
Jaldhi Overseas Pte. Ltd., Singapore
2001    75,311 $9,400 5.00% 5-May-17 5-Jun-18 – 5-Sep-18
4 ALCYON A $5,000 5.00% Dampskibsselskabet Norden A/S, Copenhagen 4-May-16 20-Jul-17
2001    75,247 $8,800 5.00% Hudson Shipping Lines Incorporated 20-Jul-17 20-Jul-18 – 20-Oct-18
5 TRITON A $6,300 5.00% Windrose SPS Shipping and Trading S.A., Geneva 25-Oct-16 4-Jun-17
2001    75,336 $6,500 5.00% Ausca Shipping Limited, Hong Kong 8-Jun-17 8-Jul-18 – 23-Oct-18
6 OCEANIS A $5,200 5.00% Nidera S.P.A., Roma 30-Jun-16 30-May-17
2001    75,211 $7,000 5.00% Ausca Shipping Limited, Hong Kong 30-May-17 30-Jul-18 – 14-Nov-18
7 THETIS B $5,150 5.00% Transgrain Shipping B.V., Rotterdam 19-Jun-16 14-Jul-17
2004    73,583 $8,350 5.00% Ausca Shipping Limited, Hong Kong 14-Jul-17 14-Jul-18 – 14-Oct-18
8 PROTEFS B $4,500 5.00% Transgrain Shipping B.V., Rotterdam 23-Feb-16 2-Jun-17 2
2004    73,630 $7,900 5.00% Hudson Shipping Lines Incorporated 24-Jun-17 24-Jun-18 – 9-Oct-18
9 CALIPSO  B $9,000 5.00% Transgrain Shipping B.V., Rotterdam 14-Mar-17 30-Jan-18 – 14-May-18
2005    73,691
10 CLIO B $5,350 5.00% Transgrain Shipping B.V., Rotterdam 22-May-16 9-Jul-17
2005    73,691 $8,550 5.00% Phaethon International Company AG 9-Jul-17 9-Aug-18 – 9-Nov-18
11 NAIAS B $7,500 5.00% Glencore Agriculture B.V., Rotterdam 27-Dec-16 1-Aug-17 – 11-Nov-17 3
2006    73,546
12 ARETHUSA B $7,200 5.00% Noble Resources International Pte. Ltd., Singapore 23-Jan-17 23-Nov-17 – 23-Mar-18 4
2007     73,593
13 ERATO C $4,650 5.00% Glencore Grain B.V., Rotterdam 26-Mar-16 25-May-17
2004    74,444 $7,250 5.00% Phaethon International Company AG 25-May-17 10-Oct-17 – 30-Dec-17
14 CORONIS C $4,750 5.00% Narina Maritime Ltd 19-Mar-16 16-May-17
2006    74,381 $9,000 5.00% 16-May-17 16-Apr-18 – 16-Jul-18
15 MELITE D $8,000 5.00% Uniper Global Commodities SE, Düsseldorf 6-Dec-16 2-Aug-17 – 6-Oct-17 3
2004     76,436
16 MELIA D $9,500 5.00% Nidera S.P.A., Roma 19-Mar-17 4-Feb-18 – 4-May-18
2005     76,225
17 ARTEMIS $5,350 5.00% Bunge S.A., Geneva 7-Jun-16 8-Jul-17
2006     76,942 $9,000 5.00% Ausca Shipping Limited, Hong Kong 8-Jul-17 8-Jul-18 – 8-Oct-18
18 LETO $7,750 5.00% Glencore Agriculture B.V., Rotterdam 29-Dec-16 29-Sep-17 – 29-Jan-18
2010     81,297
19  SELINA E $4,500 5.00% BG Shipping Co., Limited, Hong Kong 24-Jan-17 23-Feb-17
2010     75,700 $7,100 5.00% 23-Feb-17 24-Oct-17 – 8-Feb-18
20 MAERA E $4,500 5.00% United Bulk Carriers International S.A., Luxembourg 10-May-16 30-Apr-17 5
2013     75,403 $8,500 5.00% Transgrain Shipping B.V., Rotterdam 15-Jun-17 14-Aug-17 6,7
21 ISMENE $5,850 5.00% Glencore Grain B.V., Rotterdam 7-Aug-16 29-Jul-17 – 22-Sep-17 3
2013     77,901
22 CRYSTALIA F $6,250 5.00% SwissMarine Services S.A., Geneva 28-Jun-16 2-Aug-17  21-Oct-17 3,8
2014    77,525
23 ATALANDI F $5,300 5.00% Glencore Grain B.V., Rotterdam 26-Mar-16 26-Nov-17 – 26-Apr-18
2014    77,529
5 Kamsarmax Bulk Carriers
24 MAIA G $7,500 5.00% RWE Supply & Trading GmbH, Essen 13-Nov-15 29-Jul-17 3,9
2009     82,193
25 MYRSINI G $5,550 5.00% RWE Supply & Trading GmbH, Essen

 

9-Mar-16 8-Jun-17
2010     82,117 $8,650 5.00% 8-Jun-17 31-Aug-18  31-Dec-18
26 MEDUSA G $6,300 5.00% Quadra Commodities S.A., Geneva 7-Apr-16 6-Jul-17
2010     82,194 $10,000 4.75% Cargill International S.A., Geneva 6-Jul-17 6-Jul-18 – 6-Oct-18
27 MYRTO G $8,000 4.75% Cargill International S.A., Geneva 17-Jan-17 17-Jan-18 – 17-Apr-18
2013     82,131
28 ASTARTE $9,000 5.00% Glencore Agriculture B.V., Rotterdam 12-Jun-17 12-Aug-18 – 12-Nov-18 10
2013     81,513
5 Post-Panamax Bulk Carriers
29 ALCMENE $6,750 5.00% ADM International Sarl, Rolle, Switzerland 13-May-15 1-Jun-17
2010     93,193 $8,000 4.75% Cargill International S.A., Geneva 8-Jun-17 8-Jul-18 – 23-Oct-18
30 AMPHITRITE H $7,700 5.00% Bunge S.A., Geneva 15-Jul-15 31-Jul-17 – 30-Aug-17 3
2012     98,697
31 POLYMNIA H $10,100 4.75% Cargill International S.A., Geneva 15-Mar-17 31-Mar-18 – 15-Jul-18 11
2012    98,704
32 ELECTRA I $8,000 5.00% Uniper Global Commodities SE, Düsseldorf 11-Jun-17 11-Jul-18 – 11-Nov-18 12
2013    87,150
33 PHAIDRA I $7,750 5.00% Jera Trading Singapore Pte. Ltd. 19-May-17 19-Sep-17 – 3-Jan-18
2013    87,146
14 Capesize Bulk Carriers
34 NORFOLK $12,000 5.00% Trafigura Maritime Logistics Pte. Ltd., Singapore 26-Apr-17 11-Oct-17 – 26-Dec-17
2002    164,218
35 ALIKI $10,300 5.00% SwissMarine Services S.A., Geneva 14-Feb-17 30-Dec-17 – 14-Apr-18
2005    180,235
36 BALTIMORE $11,300 4.75% Cargill International S.A., Geneva 16-Feb-17 16-Mar-18 – 1-Jul-18
2005    177,243
37 SALT LAKE CITY $9,000 5.00% Uniper Global Commodities SE, Düsseldorf 20-Jan-17 20-Jan-18 – 20-May-18
2005    171,810
38 SIDERIS GS J $6,500 5.00% Rio Tinto Shipping (Asia) Pte., Ltd., Singapore

 

22-Dec-15 21-Jun-17
2006    174,186 $13,000 5.00% 21-Jun-17 21-Jul-18 – 21-Nov-18
39 SEMIRIO J $4,800 5.00% SwissMarine Services S.A., Geneva 6-Feb-16 21-May-17 13
2007    174,261 $14,150 5.00% Koch Shipping Pte. Ltd., Singapore 21-May-17 21-May-18 – 21-Sep-18
40 BOSTON J $13,000 4.75% Clearlake Shipping Pte. Ltd., Singapore 9-Aug-15 1-Aug-17 – 24-Oct-17 3,14,15
2007    177,828
41 HOUSTON J $10,000 5.00% SwissMarine Services S.A., Geneva 17-Feb-17 2-Mar-18 – 17-May-18 16
2009    177,729
42 NEW YORK J $5,200 5.00% Rio Tinto Shipping (Asia) Pte., Ltd., Singapore 3-Feb-16 23-Apr-17
2010    177,773 $14,450 5.00% Koch Shipping Pte. Ltd., Singapore 23-Apr-17 8-Oct-17 – 29-Dec-17
43 SEATTLE K $11,700 5.00% Koch Shipping Pte. Ltd., Singapore 8-Feb-17 8-Apr-18 – 23-Jul-18
2011     179,362
44 P. S. PALIOS K $10,550 5.00% Koch Shipping Pte. Ltd., Singapore 27-Jan-17 27-Jan-18 – 11-Jun-18 17
2013    179,134
45 G. P. ZAFIRAKIS L $6,500 5.00% RWE Supply & Trading GmbH, Essen 14-Feb-16 31-Jul-17 – 14-Aug-17 3
2014    179,492
46 SANTA BARBARA L $12,000 4.75% Cargill International S.A., Geneva 24-Jan-17 9-Jan-18 – 24-Apr-18
2015     179,426
47 NEW ORLEANS $11,250 5.00% Koch Shipping Pte. Ltd., Singapore 10-Dec-16 10-Dec-17 – 10-Apr-18
2015    180,960
4 Newcastlemax Bulk Carriers
48 LOS ANGELES M BCI_2014 5TCs AVG + 14% 5.00% SwissMarine Services S.A., Geneva 22-Jan-17 7-Feb-18 – 22-Apr-18
2012    206,104
49 PHILADELPHIA M $15,500 5.00% Koch Shipping Pte. Ltd., Singapore 14-Mar-17 14-Jan-18 – 29-Apr-18
2012    206,040
50 SAN FRANCISCO N $11,750 5.00% Koch Shipping Pte. Ltd., Singapore 5-Jan-17 5-Jan-18 – 20-May-18
2017   208,006
51 NEWPORT NEWS N BCI_2014 5TCs AVG + 24% 5.00% SwissMarine Services S.A., Geneva 10-Jan-17 10-Nov-18 – 10-Mar-19
2017   208,021
* 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.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
1 Charter included a one time gross ballast bonus payment of US$400,000.
2 Vessel on scheduled drydocking from June 2, 2017 to June 24, 2017.
3 Based on latest information.
4 Vessel off-hire from June 27, 2017 to July 1, 2017.
5 Charterers have agreed to pay the BPI 4 T/C Average as published by The Baltic Exchange on 28th April 2017 and in any case not below the current rate of USD 4,500 for the excess period commencing April 28, 2017.
6 Charter includes a one time gross ballast bonus payment of US$350,000.
7 Redelivery date based on an estimated time charter trip duration of about 60 days.
8 Vessel off-hire for drydocking from March 2, 2017 to April 26, 2017.
9 Charterers have agreed to pay the weighted average of the 4 T/C routes on 14th July 2017 plus 20% for the excess period commencing July 13, 2017.
10 Vessel on scheduled drydocking from May 26, 2017 to June 12, 2017.
11 Vessel off-hire for drydocking from April 30, 2017 to May 14, 2017.
12 Vessel on scheduled drydocking from May 29, 2017 to June 11, 2017.
13 Vessel on scheduled drydocking from March 16, 2017 to April 2, 2017.
14 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
15 Vessel off-hire for drydocking from June 1, 2017 to June 23, 2017.
16 Charterers will pay US$5,150 per day for the first 15 days of the charter period.
17 Vessel off-hire for drydocking from July 9, 2017 to July 20, 2017.

 

 

Summary of Selected Financial & Other Data (unaudited)
    Three months ended June 30,   Six months ended June 30,
    2017   2016   2017   2016
 
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
  Time charter revenues $  37,752 $  28,326 $  69,040 $  59,118
  Voyage expenses  2,059  3,562  3,119  10,318
  Vessel operating expenses  22,324  21,933  43,640  43,874
  Net loss  (23,819)  (31,284)  (50,290)  (62,670)
  Net loss attributed to common stockholders  (25,261)  (32,726)  (53,174)  (65,554)
FLEET DATA
Average number of vessels 49.4 45.6 48.6  44.4
Number of vessels 51.0 46.0 51.0  46.0
Weighted average age of vessels 7.9 7.7 7.9  7.7
Ownership days  4,491  4,147  8,804  8,078
Available days  4,367  4,125  8,643  8,005
Operating days  4,271  4,099  8,472  7,943
Fleet utilization 97.8% 99.4% 98.0% 99.2%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $  8,173 $  6,003 $  7,627 $  6,096
Daily vessel operating expenses (2) $  4,971 $  5,289 $  4,957 $  5,431

___________________

(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 Wednesday, July 26, 2017.

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 13665613.

About the Company

Diana Shipping Inc. is a 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 LOSS
       
    Three months ended June 30,   Six months ended June 30,
    2017   2016   2017   2016
 
REVENUES:      
Time charter revenues $  37,752 $  28,326 $  69,040 $  59,118
EXPENSES:
Voyage expenses  2,059  3,562  3,119  10,318
Vessel operating expenses  22,324  21,933  43,640  43,874
Depreciation and amortization of deferred charges  21,646  20,309  42,719  40,314
General and administrative expenses  6,651  6,465  12,438  12,743
  Management fees to related party  440  360  861  720
Other income/(expenses)  176  (86)  245  75
Operating loss  (15,544)  (24,217)  (33,982)  (48,926)
OTHER INCOME / (EXPENSES):
Interest and finance costs  (6,687)  (5,586)  (13,076)  (10,611)
Interest and other income  928  541  1,568  1,097
Loss from equity method investments  (2,516)  (2,022)  (4,800)  (4,230)
  Total other expenses, net  (8,275)  (7,067)  (16,308)  (13,744)
 
Net loss $  (23,819) $  (31,284) $  (50,290) $  (62,670)
   
Dividends on series B preferred shares  (1,442)  (1,442)  (2,884)  (2,884)
   
Net loss attributed to common stockholders  (25,261)  (32,726)  (53,174)  (65,554)
   
Loss per common share, basic and diluted $  (0.26) $  (0.41) $  (0.60) $  (0.82)
 
Weighted average number of common shares, basic and diluted 96,691,952 80,534,351 89,015,484 80,287,498
Three months ended June 30, Six months ended June 30,
2017   2016   2017   2016
           
Net loss $  (23,819) $  (31,284) $  (50,290) $  (62,670)
Other comprehensive loss (Actuarial loss)  (7)  (8)  (14)  (15)
Comprehensive loss $  (23,826) $  (31,292) $  (50,304) $  (62,685)

 

CONDENSED CONSOLIDATED BALANCE SHEET DATA  
(in thousands of U.S. Dollars)    
     
  June 30, 2017 December 31, 2016*
ASSETS    (unaudited)
           
Cash and cash equivalents $ 42,273 $ 98,142
Other current assets 18,295 17,174
Advances for vessels under construction and acquisitions and other vessel costs 46,863
Vessels’ net book value   1,536,345   1,403,912
Other fixed assets, net   22,849   23,114
Restricted cash   25,500   23,000
Due from related parties, non-current   82,617   45,417
Equity method investments   4,214   6,014
Other non-current assets 7,116 5,027
Total assets $ 1,739,209 $ 1,668,663
 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
   
Long-term debt, net of deferred financing costs $ 633,602 $ 598,181
Other liabilities 20,321 13,893
Total stockholders’ equity 1,085,286 1,056,589
Total liabilities and stockholders’ equity $ 1,739,209 $ 1,668,663
* The balance sheet data have been derived from the audited consolidated financial statements at that date.

 

OTHER FINANCIAL DATA (unaudited)
    Three months ended June 30,   Six months ended June 30,
    2017   2016    2017   2016 
Net Cash provided by / (used in) operating activities $  3,513 $  (4,192) $  2,921 $  (13,625)
Net Cash used in investing activities  (107,691)  (19,010)  (165,712)  (45,558)
Net Cash provided by financing activities $  63,749 $  809 $  109,422 $  14,603
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