Diana reports Financial Results for Q4 and Year Ended December 31, 2017

Company Profiles, Dry Bulkcarriers, Markets, News, Statistics, Stock Markets — By on February 22, 2018 at 4:03 PM

Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2017

ATHENS, GREECE, February 22, 2018 – 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 $436.9 million and net loss attributed to common stockholders of $438.4 million for the fourth quarter of 2017, including a $422.5 million impairment loss. Accordingly, for the fourth quarter ended December 31, 2017, net loss and net loss attributed to common stockholders, adjusted for impairment, amounted to $14.5 million and $15.9 million, respectively[1]. For the fourth quarter of 2016, net loss and net loss attributed to common stockholders amounted to $23.3 million and $24.7 million, respectively.

Time charter revenues were $48.9 million for the fourth quarter of 2017, compared to $28.0 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 year ended December 31, 2017 amounted to $511.7 million and $517.5 million, respectively. This compares to a net loss and net loss attributed to common stockholders of $164.2 million and $170.0 million, respectively, for the same period of 2016. Time charter revenues were $161.9 million for the year ended December 31, 2017, compared to $114.3 million for the same period of 2016.

Fleet Employment Profile (As of February 22, 2018)
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
22 Panamax Bulk Carriers
1 DANAE A $7,750 5.00% Phaethon International Company AG 24-May-17 22-Dec-17
$10,000 5.00% 22-Dec-17 22-Jan-19 – 7-May-19
2001    75,106
2 DIONE A $7,050 5.00% Caravel Shipping Limited, Hong Kong 3-Feb-17 23-Jan-18 1
$10,350 5.00% Ausca Shipping Limited, Hong Kong 23-Jan-18 23-Mar-19 – 8-Jul-19
2001    75,172
3 NIREFS A $9,400 5.00% Jaldhi Overseas Pte. Ltd., Singapore 5-May-17 5-Jun-18 – 5-Sep-18
2001    75,311
4 ALCYON A $8,800 5.00% Hudson Shipping Lines Incorporated 20-Jul-17 20-Jul-18 – 20-Oct-18
2001    75,247
5 TRITON A $6,500 5.00% Ausca Shipping Limited, Hong Kong 8-Jun-17 8-Jul-18 – 23-Oct-18
2001    75,336
6 OCEANIS A $7,000 5.00% Ausca Shipping Limited, Hong Kong 30-May-17 30-Jul-18 – 14-Nov-18
2001    75,211
7 THETIS B $8,350 5.00% Ausca Shipping Limited, Hong Kong 14-Jul-17 14-Jul-18 – 14-Oct-18
2004    73,583
8 PROTEFS B $7,900 5.00% Hudson Shipping Lines Incorporated 24-Jun-17 24-Jun-18 – 9-Oct-18
2004    73,630
9 CALIPSO B $9,000 5.00% Transgrain Shipping B.V., Rotterdam 14-Mar-17 23-Feb-18 – 30-Mar-18 2
2005    73,691
10 CLIO B $8,550 5.00% Phaethon International Company AG 9-Jul-17 9-Aug-18 – 9-Nov-18
2005    73,691
11 NAIAS B $7,500 5.00% Glencore Agriculture B.V., Rotterdam 27-Dec-16 11-Nov-17 3
$10,000 5.00% Phaethon International Company AG 26-Nov-17 11-Feb-19 – 26-May-19
2006    73,546
12 ARETHUSA B $7,200 5.00% Noble Resources International Pte. Ltd., Singapore 23-Jan-17 1-Mar-18 – 23-Mar-18 2,4
2007     73,593
13 ERATO C $7,250 5.00% Phaethon International Company AG 25-May-17 30-Dec-17
$10,500 5.00% 30-Dec-17 2-Mar-19 – 30-May-19
2004    74,444
14 CORONIS C $9,000 5.00% Narina Maritime Ltd 16-May-17 16-Apr-18 – 16-Jul-18
2006    74,381
15 MELIA $9,500 5.00% Nidera S.P.A., Roma 19-Mar-17 27-Feb-18 – 4-May-18 5
2005     76,225
16 ARTEMIS $9,000 5.00% Ausca Shipping Limited, Hong Kong 8-Jul-17 8-Jul-18 – 8-Oct-18
2006     76,942

 

17 LETO $7,750 5.00% Glencore Agriculture B.V., Rotterdam 29-Dec-16 10-Jan-18
$12,500 5.00% 10-Jan-18 10-May-19 – 25-Aug-19
2010     81,297
18 SELINA D $7,100 5.00% BG Shipping Co., Limited, Hong Kong 24-Jan-17 6-Feb-18 6
$12,250 5.00% 6-Feb-18 6-Jun-19 – 6-Sep-19
2010     75,700
19 MAERA D $11,900 5.00% Unico Logistics Co., Ltd., Seoul 19-Sep-17 19-Jun-18 – 19-Aug-18
2013     75,403
20 ISMENE $12,000 5.00% DHL Project & Chartering Limited, Hong Kong 16-Sep-17 16-Sep-18 – 16-Dec-18
2013     77,901
21 CRYSTALIA E $6,250 5.00% SwissMarine Services S.A., Geneva 28-Jun-16 3-Oct-17
$11,100 5.00% Glencore Agriculture B.V., Rotterdam 3-Oct-17 3-Oct-18 – 18-Jan-19
2014    77,525
22 ATALANDI E $5,300 5.00% Glencore Grain B.V., Rotterdam 26-Mar-16 25-Feb-18 – 26-Apr-18 2
2014    77,529
5 Kamsarmax Bulk Carriers
23 MAIA F $10,125 5.00% Glencore Agriculture B.V., Rotterdam 27-Jul-17 27-Jul-18 – 27-Oct-18
2009     82,193
24 MYRSINI F $8,650 5.00% RWE Supply & Trading GmbH, Essen 8-Jun-17 31-Aug-18 – 31-Dec-18
2010     82,117
25 MEDUSA F $10,000 4.75% Cargill International S.A., Geneva 6-Jul-17 6-Jul-18 – 6-Oct-18
2010     82,194
26 MYRTO F $8,000 4.75% Cargill International S.A., Geneva 17-Jan-17 26-Feb-18 – 17-Apr-18 2,7
2013     82,131
27 ASTARTE $9,000 5.00% Glencore Agriculture B.V., Rotterdam 12-Jun-17 12-Aug-18 – 12-Nov-18
2013     81,513
5 Post-Panamax Bulk Carriers
28 ALCMENE $8,000 4.75% Cargill International S.A., Geneva 8-Jun-17 8-Jul-18 – 23-Oct-18
2010     93,193
29 AMPHITRITE G $11,150 4.75% Cargill International S.A., Geneva 28-Sep-17 28-Oct-18 – 28-Jan-19
2012     98,697
30 POLYMNIA G $10,100 4.75% Cargill International S.A., Geneva 15-Mar-17 31-Mar-18 – 15-Jul-18
2012    98,704
31 ELECTRA H $8,000 5.00% Uniper Global Commodities SE, Düsseldorf 11-Jun-17 11-Jul-18 – 11-Nov-18
2013    87,150
32 PHAIDRA H $7,750 5.00% Jera Trading Singapore Pte. Ltd. 19-May-17 13-Jan-18 8
$12,700 5.00% Uniper Global Commodities SE, Düsseldorf 13-Jan-18 13-Jan-19 – 13-Apr-19
2013    87,146

 

 

14 Capesize Bulk Carriers
33 NORFOLK $12,000 5.00% Trafigura Maritime Logistics Pte. Ltd., Singapore 26-Apr-17 1-Dec-17
$13,250 5.00% SwissMarine Services S.A., Geneva 1-Dec-17 1-Sep-19 – 1-Dec-19
2002    164,218
34 ALIKI $10,300 5.00% SwissMarine Services S.A., Geneva 14-Feb-17 25-Feb-18 – 14-Apr-18 2
2005    180,235
35 BALTIMORE $11,300 4.75% Cargill International S.A., Geneva 16-Feb-17 16-Mar-18 – 1-Jul-18
2005    177,243
36 SALT LAKE CITY $9,000 5.00% Uniper Global Commodities SE, Düsseldorf 20-Jan-17 1-Mar-18 – 20-May-18 2
2005    171,810
37 SIDERIS GS I $13,000 5.00% Rio Tinto Shipping (Asia) Pte., Ltd., Singapore 21-Jun-17 21-Jul-18 – 21-Nov-18
2006    174,186
38 SEMIRIO I $14,150 5.00% Koch Shipping Pte. Ltd., Singapore 21-May-17 21-May-18 – 21-Sep-18
2007    174,261
39 BOSTON I $13,000 4.75% Clearlake Shipping Pte. Ltd., Singapore 9-Aug-15 6-Dec-17 9,10
$17,000 5.00% EGPN Bulk Carrier Co., Limited, Hong Kong 6-Dec-17 6-Apr-19 – 6-Jul-19
2007    177,828
40 HOUSTON I $10,000 5.00% SwissMarine Services S.A., Geneva 17-Feb-17 2-Mar-18 – 17-May-18 11
2009    177,729
41 NEW YORK I $14,450 5.00% Koch Shipping Pte. Ltd., Singapore 23-Apr-17 2-Feb-18 12
$16,000 5.00% DHL Project & Chartering Limited, Hong Kong 2-Feb-18 2-Jun-19 – 2-Sep-19
2010    177,773
42 SEATTLE J $11,700 5.00% Koch Shipping Pte. Ltd., Singapore 8-Feb-17 8-Apr-18 – 23-Jul-18
2011     179,362
43 P. S. PALIOS J $10,550 5.00% Koch Shipping Pte. Ltd., Singapore 27-Jan-17 28-Feb-18 – 11-Jun-18 2
2013    179,134
44 G. P. ZAFIRAKIS K $15,000 5.00% RWE Supply & Trading GmbH, Essen 14-Aug-17 29-Sep-18 – 14-Jan-19
2014    179,492
45 SANTA BARBARA K $12,000 4.75% Cargill International S.A., Geneva 24-Jan-17 27-Feb-18 – 24-Apr-18 2
2015     179,426
46 NEW ORLEANS $11,250 5.00% Koch Shipping Pte. Ltd., Singapore 10-Dec-16 24-Feb-18 – 10-Apr-18 2
2015    180,960
4 Newcastlemax Bulk Carriers
47 LOS ANGELES L BCI_2014 5TCs AVG + 14% 5.00% SwissMarine Services S.A., Geneva 22-Jan-17 24-Feb-18 – 22-Apr-18 2
2012    206,104
48 PHILADELPHIA L $15,500 5.00% Koch Shipping Pte. Ltd., Singapore 14-Mar-17 26-Feb-18 – 29-Apr-18 2
2012    206,040
49 SAN FRANCISCO M $11,750 5.00% Koch Shipping Pte. Ltd., Singapore 5-Jan-17 28-Feb-18 – 20-May-18 2
2017   208,006
50 NEWPORT NEWS M 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 The charter rate was US$7,200 for the first ninety (90) days of the charter period.
2 Based on latest information.
3 Vessel on scheduled drydocking from November 11, 2017 to November 26, 2017.
4 Vessel currently off-hire for drydocking.
5 Since September 17, 2017, Charterers have changed to COFCO Agri Freight SA.
6 The charter rate was US$4,500 for the first thirty (30) days of the charter period.
7 Vessel off-hire for drydocking from December 24, 2017 to January 12, 2018.
8 Charterers have agreed to pay the weighted average of the 4 T/C routes, as published by the Baltic Exchange on January 3, 2018 plus 12%, for the excess period commencing from January 3, 2018.
9 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
10 The compensation for the overlapping period from November 20, 2017 to December 6, 2017, which is beyond the maximum contractual period, is still pending to be agreed between Owners and Clearlake Shipping Pte. Ltd., Singapore.
11 The charter rate was US$5,150 for the first fifteen (15) days of the charter period.
12 Charterers have agreed to pay the weighted average of the 5 T/C routes, as published by the Baltic Exchange on January 2, 2018 plus 10%, for the excess period commencing from December 29, 2017.

 

Summary of Selected Financial & Other Data (unaudited)
    Three months ended December 31,   Year ended December 31,
    2017   2016   2017   2016
 
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
  Time charter revenues $  48,936 $  28,020 $  161,897 $  114,259
  Voyage expenses  3,020  1,387  8,617  13,826
  Vessel operating expenses  24,021  20,863  90,358  85,955
  Net loss  (436,932)  (23,256)  (511,714)  (164,237)
  Net loss attributed to common stockholders  (438,374)  (24,698)  (517,483)  (170,006)
FLEET DATA
Average number of vessels 50.3 46.0 49.6  45.2
Number of vessels 50.0 46.0 50.0  46.0
Weighted average age of vessels 8.4 8.2 8.4  8.2
Ownership days  4,624  4,232  18,119  16,542
Available days  4,615  4,215  17,890  16,447
Operating days  4,562  4,210  17,566  16,354
Fleet utilization 98.9% 99.9% 98.2% 99.4%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $  9,949 $  6,319 $  8,568 $  6,106
Daily vessel operating expenses (2) $  5,195 $  4,930 $  4,987 $  5,196

_____________________

(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.

Non-GAAP Measures

This press release includes a discussion of net loss and loss per share adjusted for impairment losses as identified in the reconciliations provided below. The Company believes that discussion of these additional non-GAAP measures provides investors with meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance. The following shows the difference between net loss to adjusted net loss, and loss per share to adjusted loss per share for the three months ended December 31, 2017 and 2016 (in thousands, except per share amounts):

    Three months ended December 31,
    2017   2016
Adjusted net loss and net loss attributed to common stockholders
 
Net loss $  (436,932) $  (23,256)
Impairment loss  422,466  –
 
Adjusted net loss $  (14,466) $  (23,256)
Dividends on series B preferred shares  (1,442)  (1,442)
Adjusted net loss attributed to common stockholders $  (15,908) $  (24,698)
 
Adjusted loss per share
 
Loss per common share, basic and diluted $  (4.28) $  (0.31)
 
Impairment loss  4.13  –
Adjusted loss per share, basic and diluted $  (0.15) $  (0.31)

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 Thursday, February 22, 2018.

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 13675888.

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)

[1] See the reconciliation of adjusted net loss and net loss attributed to common stockholders to net loss and net loss attributed to common stockholders and adjusted loss per share to loss per share included in this release.

___

DIANA SHIPPING INC 2017 on 22022018

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