Diana Shipping Inc. Reports Financial Results for the First Quarter Ended March 31, 2013

Diana Shipping Inc. Reports Financial Results for the First Quarter Ended
March 31, 2013

ATHENS, Greece, May 22, 2013 (GLOBE NEWSWIRE) -- Diana Shipping Inc.
(NYSE:DSX), a global shipping company specializing in the ownership and
operation of dry bulk vessels, today reported a net loss of $3.2 million for
the first quarter of 2013, compared to net income of $20.0 million reported in
the first quarter of 2012. The results for the 2013 first quarter included a
loss of $3.3 million on the Company's investment in Diana Containerships Inc.,
arising from a non-cash impairment recorded by Diana Containerships related to
the sale of certain older container vessels.

Time charter revenues were $42.6 million for the first quarter of 2013,
compared to $57.6 million for the same period of 2012, 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; Polymnia,
delivered in November 2012; Myrto, delivered in January 2013; and Maia,
delivered in February 2013.

  Fleet Employment Profile (As of May 21, 2013)
  Currently Diana's fleet is employed as follows:
                                                                                             
  Vessel                                                                    
                       Gross
                       Rate
                      (USD                          Delivery
                Sister Per                           Date to   Redelivery Date to
   BUILT DWT  Ships* Day)    Com**  Charterer      Charterer Owners***           Notes
  
  Panamax Bulk Carriers
                                                                           
                                      Hyundai
                                      Merchant
1  DANAE        A      $15,600 5.00%  Marine Co.,    18-Apr-11 10-Mar-13           1,2
                                      Ltd.,
                                      Seoul, South
                                      Korea
   2001                            Intermare                10-Sep-14 -
  75,106             $8,250  5.00%  Transport      10-Mar-13 10-Jan-15           
                                      GmbH, Hamburg
                                                                                             
                                      EDF Trading              19-Jul-14 -
2  DIONE        A      $9,700  5.00%  Limited,       19-Jul-12 19-Dec-14           
                                      UK
  2001                                                                   
   75,172
                                                                                             
                                      Morgan Stanley
3  NIREFS       A      $12,250 5.00%  Capital Group  18-Dec-11 29-Jan-13           3,4
                                      Inc.
   2001                            Intermare                29-Jul-14 -
  75,311             $8,000  5.00%  Transport      29-Jan-13 29-Jan-15           
                                      GmbH, Hamburg
                                                                                             
                                      EDF Trading              21-Nov-14 -
4  ALCYON       A      $7,750  5.00%  Limited,       21-Dec-12 21-May-15           
                                      UK
  2001                                                                   
   75,247
                                                                                             
                                      Resource
5  TRITON       A      $19,500 4.75%  Marine         11-Dec-10 11-Nov-13 -         5
                                      Pte., Ltd,               11-Feb-14
                                      Singapore
  2001                                                                   
   75,336
                                                                                             
                                      Ultrabulk A/S,           14-Jan-14 -
6  OCEANIS      A      $9,250  5.00%  Copenhagen,    14-Aug-12 14-Jul-14           
                                      Denmark
  2001                                                                   
   75,211
                                                                                             
                                      EDF Trading              22-Aug-13 -
7  THETIS       B      $10,500 5.00%  Limited,       22-Feb-12 22-Jun-14           6
                                      UK
  2004                                                                   
   73,583
                                                                                             
                                      Cargill                  14-Sep-14 -
8  PROTEFS      B      $9,000  5.00%  International  14-Sep-12 14-Feb-15           
                                      S.A., Geneva
  2004                                                                   
   73,630
                                                                                             
                                      Louis Dreyfus
9  CALIPSO      B      $12,250 5.00%  Commodities    11-Oct-11 11-Aug-13 -         
                                      Suisse                   11-Dec-13
                                      S.A., Geneva
  2005                                                                   
   73,691
                                                                                             
                                      Cargill                  22-Aug-13 -
10 CLIO         B      $10,750 5.00%  International  22-Feb-12 22-Feb-14           
                                      S.A., Geneva
  2005                                                                   
   73,691
                                                                                             
                                      Ultrabulk A/S,
11 NAIAS        B      $9,250  5.00%  Copenhagen,    2-Sep-12  2-Feb-14 - 2-Aug-14 
                                      Denmark
  2006                                                                   
   73,546
                                                                                             
                                      Cargill
12 ARETHUSA     B      $7,300  5.00%  International  22-Nov-12 22-May-1422-Nov-14 7
                                      S.A., Geneva
  2007                                                                   
   73,593
                                                                                             
                                      Hyundai
                                      Merchant
13 ERATO        C      $12,200 5.00%  Marine Co.,    26-Nov-11 9-Jan-13            
                                      Ltd.,
                                      Seoul, South
                                      Korea
   2004                             Cargill
  74,444            $6,500  5.00%  International  9-Jan-13  9-Jul-14 - 9-Jan-15 
                                      S.A., Geneva
                                                                                             
                                      EDF Trading              27-Nov-13 -
14 CORONIS      C      $10,600 5.00%  Limited,       12-Mar-12 27-Jun-14           
                                      UK
  2006                                                                   
   74,381
                                                                                             
                                      Cargill
15 MELITE       D      $7,750  5.00%  International  28-Dec-12 1-Jul-14 - 1-Jan-15 
                                      S.A., Geneva
  2004                                                                   
   76,436
                                                                                             
                                      STX Panocean
16 MELIA        D      $10,900 5.00%  Co.,           2-May-12  17-Apr-13           8
                                      Ltd., Seoul
                                      Rio Tinto
  2005             $9,700 3.75% Shipping       17-Apr-13 2-Mar-14 -          
   76,225                             Pty, Ltd.,               17-May-14
                                      Melbourne
                                                                           
                                                                                             
                                      EDF Trading              17-Jan-14 -
17 LETO               $12,900 5.00%  Limited,       17-Jan-12 17-Nov-14           
                                      UK
  2010                                                                   
   81,297
  
  Kamsarmax Bulk Carriers
                                      Glencore Grain           12-Aug-14 -
18 MAIA         E      $10,900 5.00%  B.V.,          27-Feb-13 27-Feb-15           
                                      Rotterdam
  2009                                                                   
   82,193
                                                                                             
                                      Cargill                  25-Jul-14 -
19 MYRTO        E      $9,000  5.00%  International  25-Jan-13 25-Jan-15           
                                      S.A., Geneva
  2013                                                                   
   82,131
  
  Post-Panamax Bulk Carriers
                                      NCS Shipping
                                      Fareast
20 ALCMENE            $7,000  5.00%  Company        26-Dec-12 13-Feb-13           9
                                      Limited,
                                      British Virgin
                                      Islands
                                      ADM
  2010           $7,250  5.00%  International  22-Feb-13 7-Aug-14 -          
   93,193                             Sarl, Rolle,             22-Feb-15
                                      Switzerland
                                                                                             
21 AMPHITRITE         $10,000 5.00%  Bunge S.A.,    15-Aug-12 31-May-14 -         10
                                      Geneva                   30-Oct-14
  2012                                                                   
   98,697
                                                                                             
                                      Sino East
22 POLYMNIA           $8,000  5.00%  Transportation 21-Nov-12 7-Jan-13            
                                      Ltd,
                                      Hong Kong
                                      Augustea Bunge
  2012           $7,600  5.00%  Maritime       16-Jan-13 16-Jul-14 -         11
   98,704                             Limited,                 16-Jan-15
                                      Malta
  
  Capesize Bulk Carriers
23 NORFOLK            $74,750 3.75%  Corus UK       12-Feb-08 16-Jan-13           12
                                      Limited
                                      Clearlake
  2002            $10,700 4.50%  Shipping       16-Jan-13 16-Jul-14 -         
   164,218                            Pte. Ltd.,               16-Jan-15
                                      Singapore
                                                                                             
                                      Minmetals
                                      Logistics
24 ALIKI              $26,500 5.00%  Group Co.      1-Mar-11  1-Feb-16 - 1-Apr-16 
                                      Ltd.,
                                      Beijing
  2005                                                                   
   180,235
                                                                                             
                                      RWE Supply &
25 TAMOU              $9,000  5.00%  Trading GmbH,  15-Jun-13 30-Jun-13           13,14
                                      Essen
  (tbr               $15,000 5.00%                1-Jul-13  1-Jul-16 -
   BALTIMORE)                                                  1-Jan-17
  2005                                                                   
   177,243
                                                                                             
   SALT LAKE                          Morgan Stanley           11-Jun-14 -
26 CITY               $13,000 5.00%  Capital Group  11-Aug-12 11-Dec-14           
                                      Inc.
  2005                                                                   
   171,810
                                                                                             
27 SIDERIS GS   F      $30,500 5.00%  BHP Billiton   16-Oct-10 14-Mar-13           15
                                      Marketing AG
   2006                           Cargill                  14-Dec-14 -
  174,186            $13,500 4.75%  International  14-Mar-13 14-Jun-15           
                                      S.A., Geneva
                                                                                             
                                      Cargill
28 SEMIRIO      F      $17,350 5.00%  International  30-May-11 19-Mar-13           
                                      S.A., Geneva
  2007           $14,000 4.75%                19-Mar-13 19-Jan-15 -
   174,261                                                     19-Jun-15
                                                                           
                                                                                             
                                      Morgan Stanley           29-Aug-13 -
29 BOSTON       F      $14,000 5.00%  Capital Group  29-Oct-11 29-Dec-13           16
                                      Inc.
  2007                                                                   
   177,828
                                                                                             
30 HOUSTON      F      $55,000 4.75%  Shagang        3-Nov-09  3-Oct-14 - 3-Jan-15 17
                                      Shipping Co.
  2009                                                                   
   177,729
                                                                                             
                                      Nippon Yusen
31 NEW YORK     F      $48,000 3.75%  Kaisha,        3-Mar-10  3-Jan-15 - 3-May-15 
                                      Tokyo (NYK)
  2010                                                                   
   177,773
  
  Newcastlemax Bulk Carriers
                                      EDF Trading
32 LOS ANGELES  G      $18,000 5.00%  Limited,       9-Feb-12  9-Dec-15 - 9-Apr-16 
                                      UK
  2012                                                                   
   206,104
                                                                                             
                                      EDF Trading              17-Jan-16 -
33 PHILADELPHIA G      $18,000 5.00%  Limited,       17-May-12 17-Jul-16           
                                      UK
  2012                                                                  
   206,040
  
  Vessels Under Construction
34 HULL H2528   H      -       -      -              -         - - -               18
  2013                                                                   
   76,000
                                                                                             
35 HULL H2529   H      -       -      -              -         - - -               18
  2013                                                                   
   76,000
                                                                                             
36 HULL H2548   I      -       -      -              -         - - -               18
  2016                                                                   
   208,500
                                                                                             
37 HULL H2549   I      -       -      -              -         - - -               18
  2016                                                                   
   208,500

* 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 for unscheduled maintenance from March 4, 2013 to March 6, 2013.
2 Hyundai Merchant Marine Co. Ltd., Seoul, South Korea, has agreed to compensate the
owners for the early redelivery of the vessel on March 10, 2013 until the minimum agreed
redelivery date, March 18, 2013.
3 Vessel off-hire for drydocking from September 26, 2012 to October 15, 2012.
4 Vessel off-hire for unscheduled maintenance from October 18, 2012 to November 30,
2012.
5 Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank
Limited.
6 Vessel off-hire from September 23, 2012 to October 3, 2012.
7 Vessel off-hire for unscheduled maintenance from April 14, 2013 to April 16, 2013.
8 Vessel off-hire for drydocking from November 27, 2012 to December 10, 2012.
9 Charter includes a one time gross ballast bonus payment of US$390,000.
10 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.
11 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.
12 Since September2010 charterers' name has changed to Tata Steel UK, Limited.
13 Expected date of delivery to the buyers by the end of May 2013 (based on latest
information received by the sellers).
14 Estimated date of delivery to the charterers.
15 Since October 25, 2012 charterers have changed to BHP Billiton Singapore Pte Ltd.
16 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.
17 Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group Co.
18 Year of delivery and dwt are based on shipbuilding contract.

                                                        
Summary of Selected Financial &                          
Other Data (unaudited)
                                   Three months ended March 31,
                                   2013                  2012
                                                        
INCOME STATEMENT DATA (in thousands                      
of US Dollars):
Time charter revenues               $42,601             $57,601
Voyage expenses                     2,199                 2,178
Vessel operating expenses           17,957                14,657
Net income / (loss)                 (3,183)               19,961
FLEET DATA                                              
Average number of vessels           31.2                  25.4
Number of vessels                   32.0                  26.0
Weighted average age of vessels     6.1                   6.0
Ownership days                      2,806                 2,313
Available days                      2,806                 2,283
Operating days                      2,772                 2,278
Fleet utilization                   98.8%                 99.8%
AVERAGE DAILY RESULTS                                   
Time charter equivalent (TCE) rate  $14,398             $24,276
(1)
Daily vessel operating expenses (2) $6,400              $6,337
                                                        
(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 Wednesday, May
22, 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 412822.

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 OPERATIONS AND COMPREHENSIVE INCOME /
(LOSS)
                                                              
                                               Three months ended March 31,
                                               2013            2012
                                                              
REVENUES:                                                    
Time charter revenues                         $42,601       $57,601
Other revenues                                447             568
                                                              
EXPENSES:                                                    
Voyage expenses                               2,199           2,178
Vessel operating expenses                     17,957          14,657
Depreciation and amortization of deferred      15,549          14,588
charges
General and administrative expenses           5,464           6,118
Foreign currency gains                        (74)            (394)
Operating income                              1,953           21,022
                                                              
OTHER INCOME / (EXPENSES):                                   
Interest and finance costs                    (2,064)         (1,543)
Interest income                               200             378
Loss from derivative instruments              (4)             (201)
Income / (loss) from investment in Diana       (3,268)         305
Containerships Inc.
Total other expenses, net                      (5,136)         (1,061)
                                                              
Net Income / (loss)                            (3,183)         19,961
                                                              
Earnings / (loss) per common share, basic and   $(0.04)       $0.25
diluted
                                                              
Weighted average number of common shares, basic 81,059,313      81,226,051
and diluted
                                                              
                                               Three months ended March 31,
                                               2013            2012
Net income / (loss)                             $(3,183)      $19,961
Other comprehensive loss (Actuarial loss)       (98)            --
Comprehensive income / (loss)                   $(3,281)      $19,961

                                                           
CONDENSED CONSOLIDATED BALANCE SHEET DATA (unaudited)                       
(in thousands of U.S. Dollars)                                              
                                                           
                                                            December 31,
                                            March 31, 2013   2012
ASSETS                                                      
                                                           
Cash and cash equivalents                  $412,330       $446,624
Other current assets                        18,773           20,362
Advances for vessels under construction and 13,238           11,502
acquisitions and other vessel costs
Vessels' net book value                    1,243,880        1,211,138
Other fixed assets, net                     23,058           22,774
Other non-current assets                    25,425           30,402
Total assets                               $1,736,704     $1,742,802
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
                                                           
Current liabilities, including current      $60,512        $61,477
portion of long-term debt
Long-term debt, net of current portion and  410,185          414,080
deferred financing costs
Other non-current liabilities               842              821
Total stockholders' equity                  1,265,165        1,266,424
Total liabilities and stockholders' equity $1,736,704     $1,742,802
                                                           
OTHER FINANCIAL DATA (unaudited)                            
                                           Three months ended March 31,
                                           2013             2012
                                                           
Net Cash provided by Operating Activities $17,394        $36,443
Net Cash used in Investing Activities     (47,680)         (61,734)
Net Cash provided by / (used in) Financing (4,008)          50,639
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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