Diana reports financial results for Q2 and six months ended 30 June 2019

Accountancy, Company Profiles, Dry Bulkcarriers, Markets, News, Reports, Shipmanagement, Statistics, Stock Markets — By on July 30, 2019 at 1:05 PM

DIANA SHIPPING INC. REPORTS FINANCIAL RESULTS  FOR THE second quarter AND six months ended June 30, 2019

 ATHENS, GREECE, July 30, 2019 – 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 $1.3 million and net loss attributed to common stockholders of $2.7 million for the second quarter of 2019, including a $2.8 million impairment loss. This compares to net income of $2.0 million and net income attributed to common stockholders of $0.5 million reported in the second quarter of 2018.

Time charter revenues were $55.4 million for the second quarter of 2019, compared to $53.4 million for the same period of 2018. The increase in time charter revenues was due to increased average time charter rates that the Company achieved for its vessels during the quarter and was partly offset by decreased revenues due to the sale of two vessels in December 2018 and three vessels in the first half of 2019.

Net income and net loss attributed to common stockholders for the six months ended June 30, 2019 amounted to $1.7 million and $1.2 million, respectively, including a $7.5 million impairment loss. This compares to a net loss and net loss attributed to common stockholders of $1.1 million and $4.0 million, respectively, for the same period of 2018. Time charter revenues were $115.7 million for the six months ended June 30, 2019, compared to $101.8 million for the same period of 2018.

 

 

Fleet Employment Profile (As of July 26, 2019)
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
16 Panamax Bulk Carriers
DANAE A $8,100 5.00% Phaethon International Company AG 7-Feb-19 1-Apr-19 1
2001    75,106
DIONE A $10,350 5.00% Ausca Shipping Limited, Hong Kong 23-Jan-18 16-Apr-19 2
2001    75,172
1 NIREFS A $10,750 3.75% Hudson Shipping Lines Incorporated 11-Aug-18 1-Aug-19 – 11-Oct-19 3,4
2001    75,311
2 OCEANIS A $10,350 5.00% Ausca Shipping Limited, Hong Kong 16-Nov-18 1-Jan-20 – 31-Mar-20 5
2001    75,211
THETIS B $10,650 3.75% Hudson Shipping Lines Incorporated 16-Nov-18 28-Jun-19 6
2004    73,583
3 PROTEFS B $11,000 3.75% Hudson Shipping Lines Incorporated 19-Sep-18 4-Sep-19 – 19-Dec-19
2004    73,630
4 CALIPSO B $12,200 5.00% Glencore Agriculture B.V., Rotterdam 12-Mar-18 1-Aug-19 – 12-Sep-19 3,7
2005    73,691
5 CLIO B $10,600 5.00% Ausca Shipping Limited, Hong Kong 10-Nov-18 10-Sep-19 – 10-Dec-19
2005    73,691
6 NAIAS B $10,000 5.00% Phaethon International Company AG 26-Jan-19 26-Dec-20 – 10-Apr-21
2006    73,546
7 ARETHUSA B $12,600 5.00% Glencore Agriculture B.V., Rotterdam 27-Apr-18 2-May-19
$9,150 5.00% Ausca Shipping Limited, Hong Kong 2-May-19 2-May-20 – 2-Aug-20
2007     73,593
ERATO C $7,250 5.00% Ausca Shipping Limited, Hong Kong 27-Mar-19 18-Apr-19 8
$5,500 5.00% Tongli Shipping Pte. Ltd. 18-Apr-19 4-Jun-19 9,10
2004    74,444
8 CORONIS C $11,300 5.00% CJ International Italy Societa Per Azioni 10-Oct-18 11-Aug-19 – 11-Nov-19
2006    74,381
9 MELIA $12,000 5.00% United Bulk Carriers International S.A., Luxemburg 28-Apr-18 28-Sep-19 – 28-Dec-19
2005     76,225
10 ARTEMIS $12,600 5.00% Ausca Shipping Limited, Hong Kong 17-Sep-18 17-Sep-19  17-Dec-19
2006     76,942
11 LETO $12,500 5.00% Glencore Agriculture B.V., Rotterdam 10-Jan-18 31-May-19
$13,000 5.00% Uniper Global Commodities SE, Düsseldorf 31-May-19 1-May-20 – 1-Jul-20
2010     81,297
12 SELINA D $12,250 5.00% BG Shipping Co., Limited, Hong Kong 6-Feb-18 15-Jul-19 11
$11,750 5.00% Ausca Shipping Limited, Hong Kong 15-Jul-19 15-Feb-20 – 15-Apr-20
2010     75,700
13 MAERA D $9,450 5.00% Glencore Agriculture B.V., Rotterdam 27-Mar-19 10-Apr-20 – 10-Jul-20
2013     75,403
14 ISMENE $12,125 5.00% Koch Shipping Pte. Ltd., Singapore 12-Dec-18 1-Jan-20 – 31-Mar-20
2013     77,901
15 CRYSTALIA E $10,500 5.00% Glencore Agriculture B.V., Rotterdam 2-Mar-19 2-May-20 – 2-Aug-20
2014    77,525
16 ATALANDI E $13,500 5.00% Uniper Global Commodities SE, Düsseldorf 27-Apr-18 9-Jul-19 12
$12,250 5.00% 9-Jul-19 9-Jun-20 – 24-Aug-20
2014    77,529
5 Kamsarmax Bulk Carriers
17 MAIA F $13,300 5.00% Glencore Agriculture B.V., Rotterdam 12-Nov-18 1-Jan-20 – 31-Mar-20
2009     82,193
18 MYRSINI F $12,750 5.00% Glencore Agriculture B.V., Rotterdam 22-Dec-18 22-Oct-19 – 22-Dec-19
2010     82,117
19 MEDUSA F $14,000 4.75% Cargill International S.A., Geneva 3-Sep-18 3-Oct-19 – 3-Dec-19
2010     82,194
20 MYRTO F $14,000 4.75% Cargill International S.A., Geneva 25-Apr-18 18-Jul-19
$14,000 4.75% 18-Jul-19 3-Apr-20 – 18-Jun-20
2013     82,131
21 ASTARTE $14,250 5.00% Glencore Agriculture B.V., Rotterdam 16-Oct-18 16-Dec-19 – 16-Mar-20
2013     81,513
5 Post-Panamax Bulk Carriers
22 ALCMENE $11,500 5.00% BG Shipping Co., Limited, Hong Kong 21-Nov-18 21-Oct-19 – 21-Jan-20
2010     93,193
23 AMPHITRITE G $12,750 5.00% Uniper Global Commodities SE, Düsseldorf 27-Jan-19 27-Mar-20 – 27-Jun-20 13
2012     98,697
24 POLYMNIA G $16,000 4.75% Cargill International S.A., Geneva 9-Jul-18 9-Sep-19 – 9-Dec-19
2012    98,704
25 ELECTRA H $13,500 5.00% Uniper Global Commodities SE, Düsseldorf 19-Oct-18 15-Sep-19 – 15-Dec-19
2013    87,150
26 PHAIDRA H $12,700 5.00% Uniper Global Commodities SE, Düsseldorf 13-Jan-18 11-Apr-19
$10,800 5.00% 11-Apr-19 27-May-20 – 26-Aug-20
2013    87,146
14 Capesize Bulk Carriers
27 NORFOLK $13,250 5.00% SwissMarine Services S.A., Geneva 1-Dec-17 1-Sep-19 – 1-Dec-19
2002    164,218
28 ALIKI $18,000 5.00% SwissMarine Services S.A., Geneva 9-Apr-18 9-Dec-19 – 9-Feb-20
2005    180,235
29 BALTIMORE $18,050 5.00% Koch Shipping Pte. Ltd., Singapore 6-Jun-18 19-May-19 14
$15,000 5.00% 19-May-19 4-Dec-20 – 3-Apr-21
2005    177,243
30 SALT LAKE CITY $9,750 4.75% Cargill International S.A., Geneva 24-Mar-19 24-Nov-20 – 24-Feb-21
2005    171,810
31 SIDERIS GS I $15,350 5.00% Berge Bulk Shipping Pte. Ltd., Singapore 15-Dec-18 15-Dec-19 – 30-Mar-20
2006    174,186
32 SEMIRIO I $20,050 5.00% Pacific Bulk Cape Company Limited, Hong Kong 1-Sep-18 30-Jun-19
$16,000 4.75% Cargill International S.A., Geneva 30-Jun-19 30-Sep-20 – 30-Dec-20
2007    174,261
33 BOSTON I $17,000 5.00% EGPN Bulk Carrier Co., Limited, Hong Kong 6-Dec-17 7-Jun-19
$15,300 5.00% Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany 7-Jun-19 1-Apr-21 – 30-Jun-21
2007    177,828
34 HOUSTON I $10,125 5.00% Koch Shipping Pte. Ltd., Singapore 17-Feb-19 17-Apr-20 – 1-Aug-20
2009    177,729
35 NEW YORK I $16,000 5.00% DHL Project & Chartering Limited, Hong Kong 2-Feb-18 7-Jun-19
$15,500 5.00% Singapore Marine Pte. LTD., Singapore 7-Jun-19 7-Nov-20 – 22-Jan-21
2010    177,773
36 SEATTLE J $16,000 5.00% SwissMarine Services S.A., Geneva 24-Dec-18 24-Apr-20 – 24-Jul-20
2011     179,362
37 P. S. PALIOS J $17,350 5.00% Koch Shipping Pte. Ltd., Singapore 24-May-18 5-Jun-19
$17,500 5.00% SwissMarine Services S.A., Geneva 5-Jun-19 21-Jan-20 – 20-Mar-20
2013    179,134
38 G. P. ZAFIRAKIS K $17,000 5.00% SwissMarine Services S.A., Geneva 31-Dec-18 31-May-20 – 31-Aug-20
2014    179,492
39 SANTA BARBARA K $20,250 4.75% Cargill International S.A., Geneva 24-Apr-18 9-Oct-19 – 9-Dec-19
2015     179,426
40 NEW ORLEANS $21,000 5.00% SwissMarine Services S.A., Geneva 24-Mar-18 10-Apr-19
$15,000 4.75% Cargill International S.A., Geneva 10-Apr-19 26-Jul-20 – 25-Nov-20
2015    180,960

 

4 Newcastlemax Bulk Carriers
41 LOS ANGELES L $13,250 5.00% SwissMarine Services S.A., Geneva 6-Mar-19 6-Jun-20 – 6-Sep-20
2012    206,104
42 PHILADELPHIA L $20,000 5.00% Koch Shipping Pte. Ltd., Singapore 18-Jun-18 3-Feb-20 – 18-May-20
2012    206,040
43 SAN FRANCISCO M $16,000 5.00% Koch Shipping Pte. Ltd., Singapore 5-Mar-19 5-Oct-20 – 20-Jan-21
2017   208,006
44 NEWPORT NEWS M $16,500 5.00% SwissMarine Services S.A., Geneva 25-Feb-19 25-Jun-20 – 25-Sep-20
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 ”Danae” sold and delivered to her new Owners on April 1, 2019.
2 ”Dione” sold and delivered to her new Owners on April 18, 2019.
3 Based on latest information.
4 Vessel sold and expected to be delivered to her new Owners at the latest by October 30, 2019.
5 Vessel off hire for drydocking from May 27, 2019 to July 4, 2019.
6 ”Thetis” sold and delivered to her new Owners on July 5, 2019.
7 Vessel off hire for unscheduled maintenance from May 1, 2019 to June 12, 2019.
8 Redelivery date based on an estimated time charter trip duration of about 22 days.
9 Charterers had the option to redeliver the vessel until June 2, 2019, for a charter rate of US$7,000, in case it exceeded the first twenty-nine (29) days.
10 ”Erato” sold and delivered to her new Owners on June 6, 2019.
11 Vessel off hire for unscheduled maintenance from April 7, 2019 to April 10, 2019.
12 Vessel off hire for drydocking from June 8, 2019 to July 9, 2019.
13 Vessel off hire for unscheduled maintenance from April 30, 2019 to May 13, 2019.
14 Koch Shipping Pte. Ltd., Singapore has agreed to compensate the owners with the difference between the previous and the current charter rate for the early redelivery of the vessel on May 19, 2019, till the minimum agreed redelivery date, May 22, 2019.

 

Summary of Selected Financial & Other Data (unaudited)
    Three months ended June 30,   Six months ended June 30,
    2019   2018   2019   2018
 
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
  Time charter revenues $ 55,385 $ 53,445 $ 115,686 $ 101,810
  Voyage expenses 2,966 763 5,739 2,840
  Vessel operating expenses 22,892 24,561 45,251 47,491
  Net income/(loss) (1,299) 1,956 1,676 (1,096)
  Net income/(loss) attributed to common stockholders (2,741) 514 (1,208) (3,980)
FLEET DATA
Average number of vessels 45.9 50.0 47.0 50.0
Number of vessels 45.0 50.0 45.0 50.0
Weighted average age of vessels 9.3 8.9 9.3 8.9
Ownership days 4,179 4,550 8,499 9,050
Available days 4,122 4,475 8,398 8,919
Operating days 4,054 4,383 8,317 8,818
Fleet utilization 98.4% 97.9% 99.0% 98.9%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 12,717 $ 11,773 $ 13,092 $ 11,097
Daily vessel operating expenses (2) $ 5,478 $ 5,398 $ 5,324 $ 5,248

 

 

_____________________

(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, July 30, 2019.

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 13692315.

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 June 30,   Six months ended June 30,
    2019   2018   2019   2018
 
REVENUES:      
Time charter revenues $ 55,385 $ 53,445 $ 115,686 $ 101,810
Voyage expenses 2,966 763 5,739 2,840
Vessel operating expenses 22,892 24,561 45,251 47,491
Depreciation and amortization of deferred charges 12,279 13,050 24,728 26,027
General and administrative expenses 6,110 6,728 13,645 13,718
  Management fees to related party 518 600 1,030 1,200
  Impairment loss 2,769 7,519
Loss from sale of vessels 2,118 2,118
Other gain (7) (502) (67) (178)
Operating income $ 5,740 8,245 15,723 10,712
OTHER INCOME / (EXPENSES):
Interest and finance costs (7,799) (7,346) (15,503) (14,293)
Interest and other income 785 1,062 1,501 2,475
Gain/(loss) from equity method investment (25) (5) (45) 10
  Total other expenses, net $ (7,039) (6,289) (14,047) (11,808)
 
Net income/(loss) $ (1,299) $ 1,956 $ 1,676 $ (1,096)
Dividends on series B preferred shares (1,442) (1,442) (2,884) (2,884)
Net income/(loss) attributed to common stockholders (2,741) 514 (1,208) (3,980)
Loss per common share, basic and diluted $ (0.03) $ $ (0.01) $ (0.04)
Weighted average number of common shares, basic and diluted 96,870,527 103,959,717 98,751,900 103,544,233
Three months ended June 30, Six months ended June 30,
2019   2018   2019   2018
           
Net income/(loss) $ (1,299) $ 1,956 $ 1,676 $ (1,096)
Other comprehensive loss (Actuarial loss) (9) (8) (18) (16)
Comprehensive income/(loss) $ (1,308) $ 1,948 $ 1,658 $ (1,112)

 

CONDENSED CONSOLIDATED BALANCE SHEET DATA  
(in thousands of U.S. Dollars)    
     
  2019 2018 *
ASSETS    (unaudited)
           
Cash and cash equivalents $ 121,419 $ 126,825
Other current assets 23,359 15,147
Vessels, net   933,263   991,403
Other fixed assets, net   22,266   22,425
Restricted cash   23,082   24,582
Investments in related parties   3,219   3,263
Other non-current assets 3,636 4,151
Total assets $ 1,130,244 $ 1,187,796
 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
   
Long-term debt, net of deferred financing costs $ 495,021 $ 530,547
Other liabilities 25,841 29,565
Total stockholders’ equity 609,382 627,684
Total liabilities and stockholders’ equity $ 1,130,244 $ 1,187,796
* 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,
    2019   2018   2019   2018
Net cash provided by operating activities $ 14,830 $ 17,986 $ 32,952 $ 27,791
Net cash provided by investment activities 17,140 17,135 20,140 47,325
Net cash used in financing activities $ (23,925) $ (17,059) $ (59,998) $ (32,998)
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