Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2012

Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year
Ended December 31, 2012

ATHENS, Greece, March 14, 2013 (GLOBE NEWSWIRE) -- Diana Shipping Inc.
(NYSE:DSX), a global shipping company specializing in the ownership and
operation of dry bulk vessels, today reported net income of $5.0 million for
the fourth quarter of 2012, compared to net income of $20.2 million reported
in the fourth quarter of 2011.

Time charter revenues were $49.4 million for the fourth quarter of 2012,
compared to $57.4 million for the same period of 2011, mainly due to reduced
time charter rates. The decrease in time charter revenues was partly offset by
revenues derived from the increase in ownership days resulting from the
addition to the Company's fleet of the vessels Leto, delivered in January
2012; Los Angeles, delivered in February 2012; Philadelphia and Melia,
delivered in May 2012; Amphitrite, delivered in August 2012; and Polymnia,
delivered in November 2012.

Net income to Diana Shipping Inc. for 2012 amounted to $54.6 million, compared
to net income of $107.5 million for 2011. Time charter revenues were $220.8
million for 2012, compared to $255.7 million for 2011.

  
  Fleet Employment Profile (As ofMarch 13, 2013)
  Currently Diana's fleet is employed as follows:
  
                       Gross
   Vessel       Sister Rate                         Delivery  Redelivery
               Ships* (USD    Com** Charterer      Date to   Date to    Notes
   BUILTDWT           Per                          Charterer Owners***
                       Day)
  Panamax Bulk Carriers
                                     EDF Trading              27-Nov-13
1  CORONIS      C      $10,600 5.00% Limited,       12-Mar-12 -          
                                     UK                       27-Jun-14
  200674,381                                                     
                                     Hyundai
                                     Merchant
2  ERATO        C      $12,200 5.00% Marine Co.,    26-Nov-11 9-Jan-13   
                                     Ltd.,
                                     Seoul, South
                                     Korea
                                     Cargill                  9-Jul-14 -
                    $6,500  5.00% International  9-Jan-13  9-Jan-15   
                                     S.A., Geneva
  200474,444                                                     
3  ARETHUSA     B      $9,250  5.00% DS Norden A/S, 17-May-12 22-Nov-12  
                                     Copenhagen
                                     Cargill                  22-May-14
                    $7,300  5.00% International  22-Nov-12 -          
                                     S.A., Geneva             22-Nov-14
  200773,593                                                     
                                     Ultrabulk A/S,           2-Feb-14 -
4  NAIAS        B      $9,250  5.00% Copenhagen,    2-Sep-12  2-Aug-14   
                                     Denmark
  200673,546                                                     
                                     Cargill                  22-Aug-13
5  CLIO         B      $10,750 5.00% International  22-Feb-12 -          
                                     S.A., Geneva             22-Feb-14
  200573,691                                                     
                                     Louis Dreyfus            11-Aug-13
6  CALIPSO      B      $12,250 5.00% Commodities    11-Oct-11 -          
                                     Suisse                   11-Dec-13
                                     S.A., Geneva
  200573,691                                                     
                                     Cargill                  14-Sep-14
7  PROTEFS      B      $9,000  5.00% International  14-Sep-12 -          
                                     S.A., Geneva             14-Feb-15
  200473,630                                                     
                                     EDF Trading              22-Aug-13
8  THETIS       B      $10,500 5.00% Limited,       22-Feb-12 -          1
                                     UK                       22-Jun-14
  200473,583                                                     
                                     EDF Trading              19-Jul-14
9  DIONE        A      $9,700  5.00% Limited,       19-Jul-12 -          
                                     UK                       19-Dec-14
  200175,172                                                     
                                     Hyundai
                                     Merchant
10 DANAE        A      $15,600 5.00% Marine Co.,    18-Apr-11 10-Mar-13  2,3
                                     Ltd.,
                                     Seoul, South
                                     Korea
                                     Intermare                10-Sep-14
                    $8,250  5.00% Transport      10-Mar-13 -          
                                     GmbH, Hamburg            10-Jan-15
  200175,106                                                     
                                     Ultrabulk A/S,           14-Jan-14
11 OCEANIS      A      $9,250  5.00% Copenhagen,    14-Aug-12 -          
                                     Denmark                  14-Jul-14
  200175,211                                                     
                                     Resource                 11-Nov-13
12 TRITON       A      $19,500 4.75% Marine         11-Dec-10 -          4
                                     Pte., Ltd,               11-Feb-14
                                     Singapore
  200175,336                                                     
                                     Cargill
13 ALCYON       A      $34,500 4.75% International  21-Feb-08 19-Nov-12  5,6
                                     S.A., Geneva
                                     EDF Trading              21-Nov-14
                    $7,750  5.00% Limited,       21-Dec-12 -          
                                     UK                       21-May-15
  200175,247                                                     
                                     Morgan Stanley
14 NIREFS       A      $12,250 5.00% Capital Group  18-Dec-11 29-Jan-13  7,8
                                     Inc.
                                     Intermare                29-Jul-14
                    $8,000  5.00% Transport      29-Jan-13 -          
                                     GmbH, Hamburg            29-Jan-15
  200175,311                                                     
                                     STX Panocean             2-Apr-13 -
15 MELIA        G      $10,900 5.00% Co.,           2-May-12  2-Jul-13   9
                                     Ltd., Seoul
  200576,225                                                     
                                     Cargill
16 MELITE       G      $16,500 5.00% International  1-Feb-11  28-Dec-12  10
                                     S.A., Geneva
  200476,436        $7,750  5.00%               28-Dec-12 1-Jul-14 - 
                                                              1-Jan-15
                                     EDF Trading              17-Jan-14
17 LETO               $12,900 5.00% Limited,       17-Jan-12 -          
                                     UK                       17-Nov-14
  201081,297                                           
  
  Kamsarmax Bulk Carriers
                                     Glencore Grain           12-Aug-14
18 MAIA         H      $10,900 5.00% B.V.,          27-Feb-13 -          
                                     Rotterdam                27-Feb-15
  200982,193                                                     
                                     Cargill                  25-Jul-14
19 MYRTO        H      $9,000  5.00% International  25-Jan-13 -          
                                     S.A., Geneva             25-Jan-15
  201382,131                                           
  
  Post-Panamax Bulk Carriers
                                     Cargill
20 ALCMENE            $20,250 5.00% International  20-Nov-10 24-Oct-12  11
                                     S.A., Geneva
                                     Oldendorff
                    $6,250  5.00% GmbH           1-Nov-12  11-Dec-12  
                                     Co., KG,
                                     Luebeck
                                     NCS Shipping
                                     Fareast
                    $7,000  5.00% Company        26-Dec-12 13-Feb-13  12
                                     Limited,
                                     British Virgin
                                     Islands
                                     ADM
                    $7,250  5.00% International  22-Feb-13 7-Aug-14 - 
                                     Sarl, Rolle,             22-Feb-15
                                     Switzerland
  201093,193                                                    
                                     Bunge S.A.,              31-May-14
21 AMPHITRITE         $10,000 5.00% Geneva         15-Aug-12 -          13
                                                              30-Oct-14
  201298,697                                                     
                                     Sino East
22 POLYMNIA           $8,000  5.00% Transportation 21-Nov-12 7-Jan-13   
                                     Ltd,
                                     Hong Kong
                                     Augustea Bunge           16-Jul-14
                    $7,600  5.00% Maritime       16-Jan-13 -          14
                                     Limited,                 16-Jan-15
                                     Malta
  201298,704                                                     
  
  Capesize Bulk Carriers
23 NORFOLK            $74,750 3.75% Corus UK       12-Feb-08 16-Jan-13  15
                                     Limited
                                     Clearlake                16-Jul-14
  2002164,218       $10,700 4.50% Shipping       16-Jan-13 -          
                                     Pte. Ltd.,               16-Jan-15
                                     Singapore
                                     Minmetals
                                     Logistics                1-Feb-16 -
24 ALIKI              $26,500 5.00% Group Co.      1-Mar-11  1-Apr-16   
                                     Ltd.,
                                     Beijing
  2005180,235                                                    
   SALT LAKE                         Morgan Stanley           11-Jun-14
25 CITY               $13,000 5.00% Capital Group  11-Aug-12 -          
                                     Inc.                     11-Dec-14
  2005171,810                                                    
26 SIDERIS GS   D      $30,500 5.00% BHP Billiton   16-Oct-10 14-Mar-13  16,17
                                     Marketing AG
                                     Cargill                  14-Dec-14
                    $13,500 4.75% International  14-Mar-13 -          18
                                     S.A., Geneva             14-Jun-15
  2006174,186                                                    
                                     Cargill
27 SEMIRIO      D      $17,350 5.00% International  30-May-11 16-Mar-13  16
                                     S.A., Geneva
                                                              16-Jan-15
                    $14,000 4.75%               16-Mar-13 -          18
                                                              16-Jun-15
  2007174,261                                                    
                                     Morgan Stanley           29-Aug-13
28 BOSTON       D      $14,000 5.00% Capital Group  29-Oct-11 -          19
                                     Inc.                     29-Dec-13
  2007177,828                                                    
29 HOUSTON      D      $55,000 4.75% Shagang        3-Nov-09  3-Oct-14 - 20
                                     Shipping Co.             3-Jan-15
  2009177,729                                                    
                                     Nippon Yusen             3-Jan-15 -
30 NEW YORK     D      $48,000 3.75% Kaisha,        3-Mar-10  3-May-15   
                                     Tokyo (NYK)
  2010177,773                                          
  
  Newcastlemax Bulk Carriers
                                     EDF Trading              9-Dec-15 -
31 LOS ANGELES  E      $18,000 5.00% Limited,       9-Feb-12  9-Apr-16   
                                     UK
  2012206,104                                                    
                                     EDF Trading              17-Jan-16
32 PHILADELPHIA E      $18,000 5.00% Limited,       17-May-12 -          
                                     UK                       17-Jul-16
  2012206,040                                                    
  
  Vessels Under Construction
33 HULL H2528   F      --      --    --             --        -- -- --   21
  201376,000                                                     
34 HULL H2529   F      --      --    --             --        -- -- --   21
  201376,000                                                     
* 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 Vessel off-hire from September 23, 2012 to October 3, 2012.
2 Vessel off-hire for unscheduled maintenance from March 04, 2013 to March 06,
2013.
3 Huyndai Merchant Marine Co. Ltd., Seoul, South Korea, has agreed to
compensate the owners for the early redelivery of the vessel on March 10, 2013
till the minimum agreed redelivery date, March 18, 2013.
4 Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie
Bank Limited.
5 Cargill International S.A., Geneva, has agreed to compensate the owners for
the early redelivery of the vessel on November 19, 2012till the minimum
agreed redelivery date, November 21, 2012.
6 Vessel off-hire for scheduled maintenance from November 19, 2012 to December
21, 2012.
7 Vessel off-hire for drydocking from September 26, 2012 to October 15, 2012.
8 Vessel off-hire for unscheduled maintenance from October 18, 2012 to
November 30, 2012.
9 Vessel off-hire for drydocking from November 27, 2012 to December 10, 2012.
10 Cargill International S.A., Geneva has agreed to compensate the owners for
the early redelivery of the vessel on December 28, 2012 till the minimum
agreed redelivery date, January 1, 2013.
11 Vessel drydocked from October 24, 2012 to November 1, 2012.
12 Charter includes a one-time gross ballast bonus payment of US$390,000.
13 The charterer has 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. The optional
period, if exercised, must be declared on or before the end of the 21st month
of employment and will only commence at the end of the 24th month.
14 The charterer has the option to further employ the vessel for about 11 to
maximum 13 months at a gross charter rate of US$11,000 per day. The optional
period, if exercised, must be declared on or before the 22nd month of
employment and will only commence at the end of the 24th month.
15 Since September2010 charterers' name has changed to Tata Steel UK,
Limited.
16 Estimated redelivery date from the charterers.
17 Since October 25, 2012 charterers have changed to BHP Billiton Singapore
Pte, Ltd.
18 Estimated date of delivery to the charterers.
19 Morgan Stanley Capital Group Inc. has the option to employ the vessel for a
further minimum eleven (11) to a maximum thirteen (13) month period at a gross
rate of US$15,000 per day starting twenty-four (24) months after delivery of
the vessel to the charterer.
20 Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group
Co.
21 Year of delivery and dwt are based on shipbuilding contract.


Summary of Selected Financial & Other Data (unaudited)
                                                               
                         Three months ended December Years ended December 31,
                          31,
                         2012          2011          2012         2011
INCOME STATEMENT DATA (in thousands of US Dollars):
Time charter revenues     $ 49,379      $ 57,370      $ 220,785    $ 255,669
Voyage expenses           2,083         1,931         8,274        10,597
Vessel operating expenses 19,316        14,868        66,293       55,375
Net income attributed to  5,016         20,241        54,639       107,497
Diana Shipping Inc.
FLEET DATA
Average number of vessels 29.5          24.0          27.6         23.6
Number of vessels         30.0          24.0          30.0         24.0
Weighted average age of   6.0           6.3           6.0          6.3
vessels
Ownership days            2,710         2,208         10,119       8,609
Available days            2,675         2,156         9,998        8,474
Operating days            2,575         2,139         9,865        8,418
Fleet utilization         96.3%         99.2%         98.7%        99.3%
AVERAGE DAILY RESULTS
Time charter equivalent   $ 17,681      $ 25,714      $ 21,255     $ 28,920
(TCE) rate (1)
Daily vessel operating    $ 7,128       $ 6,734       $ 6,551      $ 6,432
expenses (2)

  ____________________

  (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

Diana Shipping Inc. will conduct a conference call and simultaneous Internet
webcast to review these results at 9:00 A.M. (Eastern Time) on Thursday, March
14, 2013.

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 408925.

About the Company

Diana Shipping Inc. is a leading global provider of shipping transportation
services through the ownership and operation 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, vessels 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 INCOME AND COMPREHENSIVE INCOME
                                                                
                           Three months ended        Years ended December 31,
                            December 31,
                           2012           2011       2012          2011
                                                                
REVENUES:                                                        (audited)
Time charter revenues       $ 49,379       $ 57,370   $ 220,785     $ 255,669
Other revenues              648            365        2,447         1,117
                                                                
EXPENSES:                                                        
Voyage expenses             2,083          1,931      8,274         10,597
Vessel operating expenses   19,316         14,868     66,293        55,375
Depreciation and
amortization of deferred    16,102         14,109     62,010        55,278
charges
General and administrative  6,009          6,275      24,913        25,123
expenses
Foreign currency gains      (264)          (161)      (1,374)       (503)
Operating income            6,781          20,713     63,116        110,916
                                                                
OTHER INCOME / (EXPENSES):                                       
Interest and finance costs  (2,054)        (1,254)    (7,618)       (4,924)
Interest income             247            336        1,432         1,033
Gain / (loss) from          (3)            217        (518)         (737)
derivative instruments
Income / (loss) from
investment in Diana         45             229        (1,773)       1,207
Containerships Inc.
Total other expenses, net   (1,765)        (472)      (8,477)       (3,421)
                                                                
Net Income                  $ 5,016        $ 20,241   $ 54,639      $ 107,495
Loss assumed by             --             --         --            2
non-controlling interests
                                                                
Net income attributed to    5,016          20,241     54,639        107,497
Diana Shipping Inc.
Earnings per common share,  $ 0.06         $ 0.25     $ 0.67        $ 1.33
basic
Earnings per common share,  $ 0.06         $ 0.25     $ 0.67        $ 1.33
diluted
                                                                
Weighted average number of  80,788,412     81,180,109 81,083,485    81,081,774
common shares, basic
Weighted average number of  80,901,900     81,270,341 81,083,485    81,124,348
common shares, diluted
                                                                
                            Three months              Years ended
                           ended December           December 31,  
                            31,
                           2012           2011       2012          2011
Net income                  $ 5,016        $ 20,241   $ 54,639      $ 107,495
Comprehensive loss assumed
by non-controlling          --             --         --            2
interests
Other comprehensive income
/ (loss) (Actuarial gain /  306            (96)       306           (96)
(loss))
                                                                
Comprehensive income
attributed to Diana         $ 5,322        $ 20,145   $ 54,945      $ 107,401
Shipping Inc.
                                                                

                                                                 
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands of U.S. Dollars)
                                                                 
                                                      2012        2011
ASSETS                                                 (unaudited) (unaudited)
                                                                 
Cash and cash equivalents                              $ 446,624   $ 416,674
Other current assets                                   20,362      16,017
Advances for vessels under construction and            11,502      63,440
acquisitions and other vessel costs
Vessels' net book value                                1,211,138   1,046,719
Other fixed assets, net                                22,774      21,659
Other non-current assets                               30,402      39,962
Total assets                                           $ 1,742,802 $ 1,604,471
                                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY                              
                                                                 
Current liabilities, including current portion of      $ 61,477    $ 48,095
long-term debt
Long-term debt, net of current portion and deferred    414,080     345,638
financing costs
Other non-current liabilities                          821         1,860
Total stockholders' equity                             1,266,424   1,208,878
Total liabilities and stockholders' equity             $ 1,742,802 $ 1,604,471
                                                                 

                                                              
OTHER FINANCIAL DATA (unaudited)
                                 Three months ended Years ended December 31,
                                  December 31,
                                 2012      2011     2012         2011
                                                              
Net Cash provided by Operating    $ 22,334  $ 33,707 $ 119,886    $ 154,230
Activities
Net Cash used in Investing        (28,248)  (9,613)  (169,913)    (90,428)
Activities
Net Cash provided by / (used in)  84        (2,687)  79,977       7,458
Financing Activities
                                                              

CONTACT: Corporate Contact:
         Ioannis Zafirakis
         Director, Executive Vice-President and Secretary
         Telephone: + 30-210-9470100
         Email: izafirakis@dianashippinginc.com
         Website: www.dianashippinginc.com
        
         Investor and Media Relations:
         Edward Nebb
         Comm-Counsellors, LLC
         Telephone: + 1-203-972-8350
         Email: enebb@optonline.net
 
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