Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2013 ATHENS, Greece, Feb. 18, 2014 (GLOBE NEWSWIRE) -- 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 $9.6 million for the fourth quarter of 2013, compared to net income of $5.0 million reported for the fourth quarter of 2012. Time charter revenues were $39.5 million for the fourth quarter of 2013, compared to $49.4 million for the same period of 2012. This was mainly due to reduced time charter rates, as well as the accelerated amortization of the prepaid charter revenue for the m/v Houston, due to the earlier redelivery of the vessel by the charterers, resulting in the unamortized balance of $3.0 million being recorded against time charter revenues in the fourth quarter of 2013. The decrease in time charter revenues was partly offset by revenues derived from the increase in ownership days resulting from the enlargement of our fleet. Net loss for 2013 amounted to $21.2 million, compared to net income of $54.6 million for 2012. Time charter revenues were $164.0 million for 2013, compared to $220.8 million for 2012. Fleet Employment Profile (As of February 17, 2014) Currently Diana Shipping Inc.'s fleet is employed as follows: Gross Vessel Sister Rate Delivery Redelivery BUILTDWT Ships* (USD Com** Charterer Date to Date to Notes Per Charterer Owners*** Day) Panamax Bulk Carriers Intermare 10-Sep-14 1 DANAE A $8,250 5.00% Transport 10-Mar-13 - GmbH, Hamburg 10-Jan-15 200175,106 EDF Trading 19-Jul-14 2 DIONE A $9,700 5.00% Limited, UK 19-Jul-12 - 19-Dec-14 200175,172 Intermare 29-Jul-14 3 NIREFS A $8,000 5.00% Transport 29-Jan-13 - GmbH, Hamburg 29-Jan-15 200175,311 EDF Trading 21-Nov-14 4 ALCYON A $7,750 5.00% Limited, UK 21-Dec-12 - 21-May-15 200175,247 Resource 5 TRITON A $19,500 4.75% Marine Pte., 11-Dec-10 8-Nov-13 1,2 Ltd, Singapore CCX Shipping $11,500 5.00% Co., Ltd, 11-Nov-13 16-Dec-13 3 Hong Kong $11,000 5.00% Bunge S.A., 16-Dec-13 1-Sep-14 - Geneva 31-Oct-14 200175,336 Ultrabulk 20-Feb-14 6 OCEANIS A $9,250 5.00% A/S, 14-Aug-12 - 4 Copenhagen, 14-Jul-14 Denmark 200175,211 7 THETIS B $8,300 5.00% EDF Trading 1-Sep-13 1-Jul-15 - 5 Limited, UK 1-Dec-15 200473,583 Cargill 14-Sep-14 8 PROTEFS B $9,000 5.00% International 14-Sep-12 - S.A., Geneva 14-Feb-15 200473,630 Cargill 29-Apr-15 9 CALIPSO B $8,100 4.75% International 29-Jul-13 - S.A., Geneva 29-Aug-15 200573,691 Cargill 22-May-15 10 CLIO B $8,600 4.75% International 22-Aug-13 - 6 S.A., Geneva 22-Aug-15 200573,691 Ultrabulk 11 NAIAS B $9,250 5.00% A/S, 2-Sep-12 28-Feb-14 4 Copenhagen, - 2-Aug-14 Denmark 200673,546 Cargill 22-May-14 12 ARETHUSA B $7,300 5.00% International 22-Nov-12 - S.A., Geneva 22-Nov-14 200773,593 Cargill 9-Jul-14 - 13 ERATO C $6,500 5.00% International 9-Jan-13 9-Jan-15 5,7 S.A., Geneva 200474,444 14 CORONIS C $10,600 5.00% EDF Trading 12-Mar-12 1-Mar-14 - 4 Limited, UK 27-Jun-14 200674,381 Cargill 1-Jul-14 - 15 MELITE D $7,750 5.00% International 28-Dec-12 1-Jan-15 S.A., Geneva 200476,436 Rio Tinto 16 MELIA D $9,700 3.75% Shipping Pty, 17-Apr-13 2-Mar-14 - Ltd., 17-May-14 Melbourne 200576,225 Rio Tinto 26-Jun-15 17 ARTEMIS $9,375 3.75% Shipping Pty, 26-Aug-13 - Ltd., 26-Oct-15 Melbourne 200676,942 EDF Trading 20-Feb-14 18 LETO $12,900 5.00% Limited, UK 17-Jan-12 - 4 17-Nov-14 201081,297 Kamsarmax Bulk Carriers Glencore 12-Aug-14 19 MAIA E $10,900 5.00% Grain B.V., 27-Feb-13 - Rotterdam 27-Feb-15 200982,193 Clearlake 20 MYRSINI E $15,500 4.75% Shipping Pte. 12-Oct-13 12-Feb-14 8 Ltd., Singapore 15-Feb-15 12-Feb-14 - 10-May-15 201082,117 Cargill 25-Jul-14 21 MYRTO E $9,000 5.00% International 25-Jan-13 - S.A., Geneva 25-Jan-15 201382,131 Post-Panamax Bulk Carriers ADM 22 ALCMENE $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 23 AMPHITRITE $10,000 5.00% Geneva 15-Aug-12 - 9 30-Oct-14 201298,697 Bunge S.A., 16-Jul-14 24 POLYMNIA $7,600 5.00% Geneva 16-Jan-13 - 10,11 16-Jan-15 201298,704 Capesize Bulk Carriers Clearlake 16-Jul-14 25 NORFOLK $10,700 4.50% Shipping Pte. 16-Jan-13 - 8 Ltd., 16-Jan-15 Singapore 2002164,218 Minmetals 26 ALIKI $26,500 5.00% Logistics 1-Mar-11 1-Feb-16 - Group Co. 1-Apr-16 Ltd., Beijing 2005180,235 RWE Supply & 8-Jul-16 - 27 BALTIMORE $15,000 5.00% Trading GmbH, 8-Jul-13 8-Jan-17 12 Essen 2005177,243 Morgan 11-Jun-14 28 SALT LAKE $13,000 5.00% Stanley 11-Aug-12 - CITY Capital Group 11-Dec-14 Inc. 2005171,810 Cargill 14-Dec-14 29 SIDERIS GS F $13,500 4.75% International 14-Mar-13 - S.A., Geneva 14-Jun-15 2006174,186 Cargill 19-Jan-15 30 SEMIRIO F $14,000 4.75% International 19-Mar-13 - S.A., Geneva 19-Jun-15 2007174,261 Clearlake 31 BOSTON F $14,250 4.75% Shipping Pte. 24-Aug-13 9-Aug-15 - 8 Ltd., 8-Feb-16 Singapore 2007177,828 32 HOUSTON F $55,000 4.75% Shagang 3-Nov-09 26-Nov-13 13 Shipping Co. Clearlake 19-Oct-14 $20,500 4.75% Shipping Pte. 3-Dec-13 - 8 Ltd., 18-Feb-15 Singapore 2009177,729 Nippon Yusen 3-Jan-15 - 33 NEW YORK F $48,000 3.75% Kaisha, Tokyo 3-Mar-10 3-May-15 (NYK) 2010177,773 RWE Supply & 18-Sep-15 34 P. S. PALIOS $18,350 5.00% Trading GmbH, 3-Dec-13 - Essen 31-Dec-15 2013179,134 Newcastlemax Bulk Carriers 35 LOS ANGELES G $18,000 5.00% EDF Trading 9-Feb-12 9-Dec-15 - Limited, UK 9-Apr-16 2012206,104 EDF Trading 17-Jan-16 36 PHILADELPHIA G $18,000 5.00% Limited, UK 17-May-12 - 17-Jul-16 2012206,040 Vessels Under Construction Glencore 21-Aug-15 37 HULL H2528 H $15,800 5.00% Grain B.V., 21-Feb-14 - 14,15 Rotterdam 21-Nov-15 (tbn CRYSTALIA) 201477,525 38 HULL H2529 H - - - - - - - 14 (tbn ATALANDI) 201476,000 39 HULL DY6006 - - - - - - - 16 201682,000 40 HULL H2548 I - - - - - - - 16 2016208,500 41 HULL H2549 I - - - - - - - 16 2016208,500 * 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 Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank Limited. 2 Resource Marine Pte., Ltd, Singapore has agreed to compensate the owners for the early redelivery of the vessel on November 8, 2013 till the minimum agreed redelivery date, November 11, 2013. 3 Charterers exercised their option to redeliver the vessel back to owners at CJK area and will now have to pay US$11,500 per day for the entire period instead of US$11,000 per day previously announced. 4 Based on latest information. 5 Vessel currently off-hire for unscheduled maintenance. 6 Vessel off-hire for drydocking from December 12, 2013 to January 2, 2014. 7 Vessel off-hire from October 20, 2013 to October 21, 2013. 8 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group. 9 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. 10 The charterer has the option to further employ the vessel for about 11 to a 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. 11 Prior to October 12, 2013, chartered to Augustea Bunge Maritime Limited, Malta. 12 Vessel delivered to the Company on June 13, 2013. Due to scheduled maintenance, the vessel was delivered to the charterers on July 8, 2013. 13 From November 3, 2009 the vessel was chartered to Shagang Shipping Co. (a guaranteed nominee of the Jiangsu Shagang Group Co.), ("Shagang") with an initial termination date of October 3, 2014. On November 26, 2013, Gala Properties Inc., a wholly-owned subsidiary of Diana Shipping Inc. and owner of the vessel, received a notice from Shagang claiming that they were entitled to terminate the charter effective November 26, 2013 for purported breaches by the owners.The owners believe they have fully performed under the terms of the charter since its inception and that Shagang has no basis for the purported termination of the charter. The owners have commenced arbitration proceedings seeking to mitigate their losses as a result of Shagang's early termination. 14 Based on latest information received by the yard. 15 Estimated date of delivery to the charterers. 16 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, 2013 2012 2013 2012 STATEMENT OF OPERATIONS DATA (in thousands of US Dollars): Time charter revenues $ 39,464 $ 49,379 $ 164,005 $ 220,785 Voyage expenses 1,798 2,083 8,119 8,274 Vessel operating 19,949 19,316 77,211 66,293 expenses Net income / (loss) (9,597) 5,016 (21,205) 54,639 FLEET DATA Average number of 35.2 29.5 33.0 27.6 vessels Number of vessels 36 30 36 30 Weighted average age 6.6 6.0 6.6 6.0 of vessels Ownership days 3,241 2,710 12,049 10,119 Available days 3,221 2,675 12,029 9,998 Operating days 3,204 2,575 11,944 9,865 Fleet utilization 99.5% 96.3% 99.3% 98.7% AVERAGE DAILY RESULTS Time charter equivalent (TCE) rate $ 11,694 $ 17,681 $ 12,959 $ 21,255 (1) Daily vessel operating expenses $ 6,155 $ 7,128 $ 6,408 $ 6,551 (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 Tuesday, February 18, 2014. 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 13574615. About the Company Diana Shipping Inc. is a leading global provider of shipping transportation services through its ownership of dry bulk vessels. The Company's vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. Cautionary Statement Regarding Forward-Looking Statements Matters discussed in this press release may constitute forward-looking statements.The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business.Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties.Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors.Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. (See financial tables attached) 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 December Year ended December 31, 31, 2013 2012 2013 2012 REVENUES: Time charter revenues $ 39,464 $ 49,379 $ 164,005 $ 220,785 Other revenues -- 648 447 2,447 EXPENSES: Voyage expenses 1,798 2,083 8,119 8,274 Vessel operating expenses 19,949 19,316 77,211 66,293 Depreciation and amortization of deferred 16,876 16,102 64,741 62,010 charges General and administrative 7,382 6,009 23,724 24,913 expenses Foreign currency gains (117) (264) (690) (1,374) Operating income / (loss) (6,424) 6,781 (8,653) 63,116 OTHER INCOME / (EXPENSES): Interest and finance costs (1,993) (2,054) (8,140) (7,618) Interest and other income 929 247 1,800 1,432 Loss from derivative (27) (3) (118) (518) instruments Gain / (loss) from investment in Diana (2,082) 45 (6,094) (1,773) Containerships Inc. Total other expenses, net (3,173) (1,765) (12,552) (8,477) Net Income / (loss) (9,597) 5,016 (21,205) 54,639 Earnings / (loss) per common share, basic and $ (0.12) $ 0.06 $ (0.26) $ 0.67 diluted Weighted average number of 81,482,997 80,788,412 81,328,390 81,083,485 common shares, basic Weighted average number of 81,482,997 80,901,900 81,328,390 81,083,485 common shares, diluted Three months ended December Year ended December 31, 31, 2013 2012 2013 2012 Net income / (loss) $ (9,597) $ 5,016 $ (21,205) $ 54,639 Other comprehensive income/(loss) (Actuarial 68 306 (30) 306 gain/(loss)) Comprehensive income / $ (9,529) $ 5,322 $ (21,235) $ 54,945 (loss) CONDENSED CONSOLIDATED BALANCE SHEET DATA (unaudited) (in thousands of U.S. Dollars) 2013 2012 ASSETS Cash and cash equivalents $ 240,633 $ 446,624 Other current assets 11,235 20,362 Advances for vessels under construction and 38,862 11,502 acquisitions and other vessel costs Vessels' net book value 1,320,375 1,211,138 Other fixed assets, net 22,826 22,774 Other non-current assets 68,050 30,402 Total assets $ 1,701,981 $ 1,742,802 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities, including current portion of $ 62,752 $ 61,477 long-term debt Long-term debt, net of current portion and deferred 385,025 414,080 financing costs Other non-current liabilities 812 821 Total stockholders' equity 1,253,392 1,266,424 Total liabilities and stockholders' equity $ 1,701,981 $ 1,742,802 OTHER FINANCIAL DATA (unaudited) Three months ended December Year ended December 31, 31, 2013 2012 2013 2012 Net Cash provided by $ 16,395 $ 22,334 $ 67,400 $ 119,886 operating activities Net Cash used in (72,617) (28,248) (245,156) (169,913) investing activities Net Cash provided by / (used in) financing $ (18,885) $ 84 $ (28,235) $ 79,977 activities CONTACT: Corporate Contact: Ioannis Zafirakis Director, Executive Vice-President and Secretary Telephone: + 30-210-9470100 Email: email@example.com Website: www.dianashippinginc.com Investor and Media Relations: Edward Nebb Comm-Counsellors, LLC Telephone: + 1-203-972-8350 Email: firstname.lastname@example.org
Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2013
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