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Diana Shipping Inc. Reports Financial Results For The Fourth Quarter And Year Ended December 31, 2012

Stocks in this article: DSX

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 of March 13, 2013)
  Currently Diana's fleet is employed as follows:
   
  Vessel BUILT DWT Sister Ships* Gross Rate (USD Per Day) Com** Charterer Delivery Date to Charterer Redelivery Date to Owners*** Notes
  Panamax Bulk Carriers
1 CORONIS C $10,600 5.00% EDF Trading Limited, UK 12-Mar-12 27-Nov-13 - 27-Jun-14  
  2006 74,381              
2 ERATO C $12,200 5.00% Hyundai Merchant Marine Co., Ltd., Seoul, South Korea 26-Nov-11 9-Jan-13  
      $6,500 5.00% Cargill International S.A., Geneva 9-Jan-13 9-Jul-14 - 9-Jan-15  
  2004 74,444              
3 ARETHUSA B $9,250 5.00% DS Norden A/S, Copenhagen 17-May-12 22-Nov-12  
      $7,300 5.00% Cargill International S.A., Geneva 22-Nov-12 22-May-14 - 22-Nov-14  
  2007 73,593              
4 NAIAS B $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 2-Sep-12 2-Feb-14 - 2-Aug-14  
  2006 73,546              
5 CLIO B $10,750 5.00% Cargill International S.A., Geneva 22-Feb-12 22-Aug-13 - 22-Feb-14  
  2005 73,691              
6 CALIPSO B $12,250 5.00% Louis Dreyfus Commodities Suisse S.A., Geneva 11-Oct-11 11-Aug-13 - 11-Dec-13  
  2005 73,691              
7 PROTEFS B $9,000 5.00% Cargill International S.A., Geneva 14-Sep-12 14-Sep-14 - 14-Feb-15  
  2004 73,630              
8 THETIS B $10,500 5.00% EDF Trading Limited, UK 22-Feb-12 22-Aug-13 - 22-Jun-14 1
  2004 73,583              
9 DIONE A $9,700 5.00% EDF Trading Limited, UK 19-Jul-12 19-Jul-14 - 19-Dec-14  
  2001 75,172              
10 DANAE A $15,600 5.00% Hyundai Merchant Marine Co., Ltd., Seoul, South Korea 18-Apr-11 10-Mar-13 2,3
      $8,250 5.00% Intermare Transport GmbH, Hamburg 10-Mar-13 10-Sep-14 - 10-Jan-15  
  2001 75,106              
11 OCEANIS A $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 14-Aug-12 14-Jan-14 - 14-Jul-14  
  2001 75,211              
12 TRITON A $19,500 4.75% Resource Marine Pte., Ltd, Singapore 11-Dec-10 11-Nov-13 - 11-Feb-14 4
  2001 75,336              
13 ALCYON A $34,500 4.75% Cargill International S.A., Geneva 21-Feb-08 19-Nov-12 5,6
      $7,750 5.00% EDF Trading Limited, UK 21-Dec-12 21-Nov-14 - 21-May-15  
  2001 75,247              
14 NIREFS A $12,250 5.00% Morgan Stanley Capital Group Inc. 18-Dec-11 29-Jan-13 7,8
      $8,000 5.00% Intermare Transport GmbH, Hamburg 29-Jan-13 29-Jul-14 - 29-Jan-15  
  2001 75,311              
15 MELIA G $10,900 5.00% STX Panocean Co., Ltd., Seoul 2-May-12 2-Apr-13 - 2-Jul-13 9
  2005 76,225              
16 MELITE G $16,500 5.00% Cargill International S.A., Geneva 1-Feb-11 28-Dec-12 10
  2004 76,436   $7,750 5.00%   28-Dec-12 1-Jul-14 - 1-Jan-15  
17 LETO   $12,900 5.00% EDF Trading Limited, UK 17-Jan-12 17-Jan-14 - 17-Nov-14  
  2010 81,297            
   
  Kamsarmax Bulk Carriers
18 MAIA H $10,900 5.00% Glencore Grain B.V., Rotterdam 27-Feb-13 12-Aug-14 - 27-Feb-15  
  2009 82,193              
19 MYRTO H $9,000 5.00% Cargill International S.A., Geneva 25-Jan-13 25-Jul-14 - 25-Jan-15  
  2013 82,131            
   
  Post-Panamax Bulk Carriers
20 ALCMENE   $20,250 5.00% Cargill International S.A., Geneva 20-Nov-10 24-Oct-12 11
      $6,250 5.00% Oldendorff GmbH Co., KG, Luebeck 1-Nov-12 11-Dec-12  
      $7,000 5.00% NCS Shipping Fareast Company Limited, British Virgin Islands 26-Dec-12 13-Feb-13 12
      $7,250 5.00% ADM International Sarl, Rolle, Switzerland 22-Feb-13 7-Aug-14 - 22-Feb-15  
  2010  93,193              
21 AMPHITRITE   $10,000 5.00% Bunge S.A., Geneva 15-Aug-12 31-May-14 - 30-Oct-14 13
  2012 98,697              
22 POLYMNIA   $8,000 5.00% Sino East Transportation Ltd, Hong Kong 21-Nov-12 7-Jan-13  
      $7,600 5.00% Augustea Bunge Maritime Limited, Malta 16-Jan-13 16-Jul-14 - 16-Jan-15 14
  2012 98,704              
   
  Capesize Bulk Carriers
23 NORFOLK   $74,750 3.75% Corus UK Limited 12-Feb-08 16-Jan-13 15
  2002 164,218   $10,700 4.50% Clearlake Shipping Pte. Ltd., Singapore 16-Jan-13 16-Jul-14 - 16-Jan-15  
24 ALIKI   $26,500 5.00% Minmetals Logistics Group Co. Ltd., Beijing 1-Mar-11 1-Feb-16 - 1-Apr-16  
  2005 180,235              
25 SALT LAKE CITY   $13,000 5.00% Morgan Stanley Capital Group Inc. 11-Aug-12 11-Jun-14 - 11-Dec-14  
  2005 171,810              
26 SIDERIS GS D $30,500 5.00% BHP Billiton Marketing AG 16-Oct-10 14-Mar-13 16,17
      $13,500 4.75% Cargill International S.A., Geneva 14-Mar-13 14-Dec-14 - 14-Jun-15 18
  2006 174,186              
27 SEMIRIO D $17,350 5.00% Cargill International S.A., Geneva 30-May-11 16-Mar-13 16
      $14,000 4.75%   16-Mar-13 16-Jan-15 - 16-Jun-15 18
  2007 174,261              
28 BOSTON D $14,000 5.00% Morgan Stanley Capital Group Inc. 29-Oct-11 29-Aug-13 - 29-Dec-13 19
  2007 177,828              
29 HOUSTON D $55,000 4.75% Shagang Shipping Co. 3-Nov-09 3-Oct-14 - 3-Jan-15 20
  2009 177,729              
30 NEW YORK D $48,000 3.75% Nippon Yusen Kaisha, Tokyo (NYK) 3-Mar-10 3-Jan-15 - 3-May-15  
  2010 177,773            
   
  Newcastlemax Bulk Carriers
31 LOS ANGELES E $18,000 5.00% EDF Trading Limited, UK 9-Feb-12 9-Dec-15 - 9-Apr-16  
  2012 206,104              
32 PHILADELPHIA E $18,000 5.00% EDF Trading Limited, UK 17-May-12 17-Jan-16 - 17-Jul-16  
  2012 206,040              
   
  Vessels Under Construction
33 HULL H2528 F -- -- -- -- -- -- -- 21
  2013 76,000              
34 HULL H2529 F -- -- -- -- -- -- -- 21
  2013 76,000              
* 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, 2012 till 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 September 2010 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 31, Years ended December 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 Diana Shipping Inc. 5,016 20,241 54,639 107,497
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 vessels 6.0 6.3 6.0 6.3
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 (TCE) rate (1) $ 17,681 $ 25,714 $ 21,255 $ 28,920
Daily vessel operating expenses (2) $ 7,128 $ 6,734 $ 6,551 $ 6,432

____________________

(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.

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