Diana reports financial results for Q3 and Nine Months rnded September 30, 2018

Accountancy, Dry Bulkcarriers, Markets, News, Reports, Shipmanagement, Statistics, Stock Markets — By on November 26, 2018 at 2:19 PM

Diana Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2018

ATHENS, GREECE, November 26, 2018 – Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported net income of $14.8 million and net income attributed to common stockholders of $13.3 million for the third quarter of 2018, compared to a net loss of $24.5 million and a net loss attributed to common stockholders of $25.9 million reported in the third quarter of 2017.

Time charter revenues were $61.5 million for the third quarter of 2018, compared to $43.9 million for the same period of 2017. The increase in time charter revenues was due to increased average time charter rates that the Company achieved for its vessels during the quarter.

Net income and net income attributed to common stockholders for the nine months ended September 30, 2018 amounted to $13.7 million and $9.3 million, respectively. This compares to a net loss and net loss attributed to common stockholders of $74.8 million and $79.1 million, respectively, for the same period of 2017. Time charter revenues were $163.3 million for the nine months ended September 30, 2018, compared to $113.0 million for the same period of 2017.

Fleet Employment Profile (As of November 23, 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 $10,000 5.00% Phaethon International Company AG 22-Dec-17 22-Jan-19 – 7-May-19
2001    75,106
2 DIONE A $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 11-Aug-18
$10,750 3.75% Hudson Shipping Lines Incorporated 11-Aug-18 11-Jul-19 – 11-Oct-19
2001    75,311
4 ALCYON A $8,800 5.00% Hudson Shipping Lines Incorporated 20-Jul-17 29-Nov-18 – 18-Dec-18 1,2,3
2001    75,247
5 TRITON A $6,500 5.00% Ausca Shipping Limited, Hong Kong 8-Jun-17 15-Oct-18 4
$11,000 5.00% Tongli Shipping Pte. Ltd. 4-Nov-18 26-Nov-18 1,3
2001    75,336
6 OCEANIS A $7,000 5.00% Ausca Shipping Limited, Hong Kong 30-May-17 16-Nov-18
$10,350 5.00% 16-Nov-18 1-Jan-20 – 31-Mar-20
2001    75,211
7 THETIS B $8,350 5.00% Ausca Shipping Limited, Hong Kong 14-Jul-17 19-Oct-18 5,6
$10,650 3.75% Hudson Shipping Lines Incorporated 16-Nov-18 16-Jan-20 – 16-Apr-20
2004    73,583
8 PROTEFS B $7,900 5.00% Hudson Shipping Lines Incorporated 24-Jun-17 19-Sep-18
$11,000 3.75% 19-Sep-18 4-Sep-19 – 19-Dec-19
2004    73,630
9 CALIPSO B $12,200 5.00% Glencore Agriculture B.V., Rotterdam 12-Mar-18 28-May-19 – 12-Sep-19
2005    73,691
10 CLIO B $8,550 5.00% Phaethon International Company AG 9-Jul-17 10-Nov-18
$10,600 5.00% Ausca Shipping Limited, Hong Kong 10-Nov-18 10-Sep-19 – 10-Dec-19
2005    73,691
11 NAIAS B $10,000 5.00% Phaethon International Company AG 26-Nov-17 11-Feb-19 – 26-May-19
2006    73,546
12 ARETHUSA B $12,600 5.00% Glencore Agriculture B.V., Rotterdam 27-Apr-18 27-Apr-19 – 27-Jul-19
2007     73,593
13 ERATO C $10,500 5.00% Phaethon International Company AG 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 11-Aug-18 7
$8,300 5.00% CJ International Italy Societa Per Azioni 11-Aug-18 10-Oct-18
$11,300 5.00% 10-Oct-18 11-Aug-19 – 11-Nov-19
2006    74,381

 

 

15 MELIA $12,000 5.00% United Bulk Carriers International S.A., Luxemburg 28-Apr-18 28-Sep-19 – 28-Dec-19 8
2005     76,225
16 ARTEMIS $9,000 5.00% Ausca Shipping Limited, Hong Kong 8-Jul-17 17-Sep-18
$12,600 5.00% 17-Sep-18 17-Sep-19 – 17-Dec-19
2006     76,942
17 LETO $12,500 5.00% Glencore Agriculture B.V., Rotterdam 10-Jan-18 10-May-19 – 25-Aug-19
2010     81,297
18 SELINA D $12,250 5.00% BG Shipping Co., Limited, Hong Kong 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 4-Jul-18
$11,750 5.00% ST Shipping and Transport Pte. Ltd., Singpore 4-Jul-18 20-Jan-19 – 4-Apr-19 9
2013     75,403
20 ISMENE $12,000 5.00% DHL Project & Chartering Limited, Hong Kong 16-Sep-17 29-Nov-18 – 16-Dec-18 1
2013     77,901
21 CRYSTALIA E $11,100 5.00% Glencore Agriculture B.V., Rotterdam 3-Oct-17 30-Nov-18 – 18-Jan-19 1
2014    77,525
22 ATALANDI E $13,500 5.00% Uniper Global Commodities SE, Düsseldorf 27-Apr-18 27-Jun-19 – 27-Sep-19
2014    77,529
5 Kamsarmax Bulk Carriers
23 MAIA F $10,125 5.00% Glencore Agriculture B.V., Rotterdam 27-Jul-17 5-Nov-18 10
$13,300 5.00% 12-Nov-18 1-Jan-20 – 31-Mar-20
2009     82,193
24 MYRSINI F $8,650 5.00% RWE Supply & Trading GmbH, Essen 8-Jun-17 1-Dec-18 – 31-Dec-18 1
2010     82,117
25 MEDUSA F $10,000 4.75% Cargill International S.A., Geneva 6-Jul-17 3-Sep-18
$14,000 4.75% 3-Sep-18 3-Oct-19 – 3-Dec-19
2010     82,194
26 MYRTO F $14,000 4.75% Cargill International S.A., Geneva 25-Apr-18 25-May-19 – 25-Jul-19
2013     82,131
27 ASTARTE $9,000 5.00% Glencore Agriculture B.V., Rotterdam 12-Jun-17 16-Oct-18
$14,250 5.00% 16-Oct-18 16-Dec-19 – 16-Mar-20
2013     81,513
5 Post-Panamax Bulk Carriers
28 ALCMENE $8,000 4.75% Cargill International S.A., Geneva 8-Jun-17 6-Oct-18
$14,000 5.00% Smart Gain Shipping Co., Limited, Hong Kong 6-Oct-18 9-Nov-18
$11,500 5.00% BG Shipping Co., Limited, Hong Kong 21-Nov-18 21-Oct-19 – 21-Jan-20
2010     93,193
29 AMPHITRITE G $11,150 4.75% Cargill International S.A., Geneva 28-Sep-17 1-Dec-18 – 28-Jan-19 1
2012     98,697
30 POLYMNIA G $10,100 4.75% Cargill International S.A., Geneva 15-Mar-17 9-Jul-18
$16,000 4.75% 9-Jul-18 9-Sep-19 – 9-Dec-19
2012    98,704
31 ELECTRA H $8,000 5.00% Uniper Global Commodities SE, Düsseldorf 11-Jun-17 19-Oct-18
$13,500 5.00% 19-Oct-18 15-Sep-19 – 15-Dec-19
2013    87,150
32 PHAIDRA H $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 $13,250 5.00% SwissMarine Services S.A., Geneva 1-Dec-17 1-Sep-19 – 1-Dec-19
2002    164,218
34 ALIKI $18,000 5.00% SwissMarine Services S.A., Geneva 9-Apr-18 9-Dec-19 – 9-Feb-20
2005    180,235
35 BALTIMORE $18,050 5.00% Koch Shipping Pte. Ltd., Singapore 6-Jun-18 22-May-19 – 21-Aug-19
2005    177,243
36 SALT LAKE CITY $16,250 4.75% Cargill International S.A., Geneva 1-May-18 1-Jan-19 – 1-Mar-19
2005    171,810
37 SIDERIS GS I $13,000 5.00% Rio Tinto Shipping (Asia) Pte., Ltd., Singapore 21-Jun-17 15-Nov-18
$8,500 5.00% Berge Bulk Shipping Pte. Ltd., Singapore 15-Nov-18 15-Dec-18
$15,350 5.00% 15-Dec-18 15-Dec-19 – 30-Mar-20
2006    174,186
38 SEMIRIO I $14,150 5.00% Koch Shipping Pte. Ltd., Singapore 21-May-17 1-Sep-18
$20,050 5.00% Pacific Bulk Cape Company Limited, Hong Kong 1-Sep-18 1-Jul-19 – 16-Sep-19
2007    174,261
39 BOSTON I $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 $19,000 5.00% SwissMarine Services S.A., Geneva 9-May-18 25-Jan-19 – 24-Apr-19
2009    177,729
41 NEW YORK I $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 30-Jul-18 11
$24,000 5.00% 30-Jul-18 30-Nov-18 – 30-Jan-19
2011     179,362
43 P. S. PALIOS J $17,350 5.00% Koch Shipping Pte. Ltd., Singapore 24-May-18 9-Jun-19 – 24-Aug-19
2013    179,134
44 G. P. ZAFIRAKIS K $15,000 5.00% RWE Supply & Trading GmbH, Essen 14-Aug-17 30-Nov-18 – 14-Jan-19 1
2014    179,492
45 SANTA BARBARA K $20,250 4.75% Cargill International S.A., Geneva 24-Apr-18 9-Oct-19 – 9-Dec-19
2015     179,426

 

46 NEW ORLEANS $21,000 5.00% SwissMarine Services S.A., Geneva 24-Mar-18 24-Feb-19 – 24-Apr-19
2015    180,960
4 Newcastlemax Bulk Carriers
47 LOS ANGELES L $19,150 5.00% SwissMarine Services S.A., Geneva 16-Apr-18 1-Jan-19 – 16-Apr-19
2012    206,104
48 PHILADELPHIA L $20,000 5.00% Koch Shipping Pte. Ltd., Singapore 18-Jun-18 3-Feb-20 – 18-May-20
2012    206,040
49 SAN FRANCISCO M $24,000 5.00% Koch Shipping Pte. Ltd., Singapore 14-May-18 4-Mar-19 – 24-May-19
2017   208,006
50 NEWPORT NEWS M BCI_2014 5TCs AVG + 24% 5.00% SwissMarine Services S.A., Geneva 10-Jan-17 1-Dec-18 – 10-Mar-19 1
2017   208,021
* Each dry bulk carrier is a “sister ship”, or closely similar, to other dry bulk carriers that have the same letter.
** Total commission percentage paid to third parties.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
1 Based on latest information.
2 Vessel off hire for unscheduled maintenance from May 30, 2018 to July 10, 2018.
3 Vessel sold and expected to be delivered to her new Owners at the latest by January 7, 2019.
4 Vessel on scheduled drydocking from October 17, 2018 to November 1, 2018.
5 Charterers have agreed to pay the weighted average of the Baltic Panamax 4 T/C routes, as published by the Baltic Exchange on October 15, 2018, for the excess period commencing from October 14, 2018.
6 Vessel on scheduled drydocking from October 22, 2018 to November 16, 2018.
7 Charterers have agreed to pay the weighted average of the Baltic Panamax 4 T/C routes, as published by the Baltic Exchange on August 6, 2018, for the excess period commencing from August 5, 2018, in case it is higher than the current rate of US$ 9,000.
8 Vessel off hire from October 22, 2018 to October 25, 2018.
9 Vessel off hire from August 9, 2018 to August 12, 2018.
10 Charterers have agreed to pay the weighted average of the Baltic Panamax 4 T/C routes, as published by the Baltic Exchange on October 26, 2018 plus 18%, only in case it is higher than the exsisting rate of US$10,125 which otherwise will continue to apply, for the excess period commencing from October 27, 2018.
11 Charterers have agreed to pay the weighted average of the Baltic Capesize 5 T/C routes, as published by the Baltic Exchange on July 23, 2018 plus 5%, for the excess period commencing from July 23, 2018.

 

Summary of Selected Financial & Other Data (unaudited)
    Three months ended

September 30,

  Nine months ended

September 30,

    2018   2017   2018   2017
 
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
  Time charter revenues $  61,505 $  43,920 $  163,315 $  112,960
  Voyage expenses  1,818  2,478  4,658  5,597
  Vessel operating expenses  22,809  22,697  70,300  66,337
  Net income/(loss)  14,767  (24,493)  13,672  (74,782)
  Net income/(loss) attributed to common stockholders  13,325  (25,936)  9,345  (79,109)
FLEET DATA
Average number of vessels 50.0 51.0 50.0  49.4
Number of vessels 50.0 51.0 50.0  51.0
Weighted average age of vessels 9.1 8.2 9.1  8.2
Ownership days  4,600  4,692  13,650  13,495
Available days  4,600  4,632  13,519  13,275
Operating days  4,576  4,533  13,394  13,005
Fleet utilization 99.5% 97.9% 99.1% 98.0%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $  12,975 $  8,947 $  11,736 $  8,088
Daily vessel operating expenses (2) $  4,958 $  4,837 $  5,150 $  4,916

_____________________

(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 Monday, November 26, 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 13685004.

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, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s 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 the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s 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 the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

(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,
    2018   2017   2018   2017
 
REVENUES:      
Time charter revenues $  61,505 $  43,920 $  163,315 $  112,960
EXPENSES:
Voyage expenses  1,818  2,478  4,658  5,597
Vessel operating expenses  22,809  22,697  70,300  66,337
Depreciation and amortization of deferred charges  13,177  22,363  39,204  65,083
General and administrative expenses  6,805  5,737  20,522  18,175
  Management fees to related party  600  480  1,800  1,341
  Impairment loss  –  8,446  –  8,446
Other loss/(gain)  (118)  43  (296)  287
Operating income/(loss)  16,414  (18,324)  27,127  (52,306)
OTHER INCOME / (EXPENSES):
Interest and finance costs  (7,175)  (6,799)  (21,468)  (19,874)
Interest and other income  5,508  1,460  7,982  3,028
Gain/(loss) from equity method investments  20  (830)  31  (5,630)
  Total other expenses, net  (1,647)  (6,169)  (13,455)  (22,476)
 
Net income / (loss) $  14,767 $  (24,493) $  13,672 $  (74,782)
   
Dividends on series B preferred shares  (1,442)  (1,443)  (4,327)  (4,327)
   
Net income / (loss) attributed to common stockholders  13,325  (25,936)  9,345  (79,109)
   
Earnings / (loss) per common share, basic and diluted $  0.13 $  (0.25) $  0.09 $  (0.85)
 
Weighted average number of common shares, basic and diluted 103,959,717 102,280,234 103,684,250 93,485,656
 
Weighted average number of common shares, diluted 105,234,812 102,280,234 104,567,959 93,485,656
Three months ended September 30, Nine months ended September 30,
2018   2017   2018   2017
           
Net income/(loss) $  14,767 $  (24,493) $  13,672 $  (74,782)
Other comprehensive loss (Actuarial loss)  (8)  (7)  (24)  (21)
Comprehensive income/(loss) $  14,759 $  (24,500) $  13,648 $  (74,803)

 

 

CONDENSED CONSOLIDATED BALANCE SHEET DATA  
(in thousands of U.S. Dollars)    
     
  September 30, 2018 December 31, 2017*
ASSETS    (unaudited)
           
Cash and cash equivalents $ 176,524 $ 40,227
Due from related parties 19 82,660
Other current assets 17,393 15,874
Vessels, net of depreciation   1,018,266   1,053,578
Other fixed assets, net   22,418   22,650
Restricted cash   25,582   25,582
Investments in related parties   3,279   3,249
Other non-current assets 3,379 2,902
Total assets $ 1,266,860 $ 1,246,722
 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
   
Long-term debt, net of deferred financing costs $ 605,106 $ 601,384
Other liabilities 22,205 20,580
Total stockholders’ equity 639,549 624,758
Total liabilities and stockholders’ equity $ 1,266,860 $ 1,246,722
* The balance sheet data have been derived from the audited consolidated financial statements at that date.

 

OTHER FINANCIAL DATA (unaudited)
    Three months ended September 30,   Nine months ended September 30,
    2018   2017    2018   2017 
Net Cash provided by operating activities $  24,180 $  8,251 $  51,971 $  11,172
Net Cash provided by / (used in) investing activities  38,563  28  85,888  (165,684)
Net Cash provided by / (used in) financing activities $  31,436 $  (13,351) $  (1,562) $  96,071
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