Diana Shipping Inc. Reports Financial Results For The Third Quarter And Nine Months Ended September 30, 2016

ATHENS, Greece, Nov. 17, 2016 (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 $78.3 million and net loss attributed to common stockholders of $79.8 million for the third quarter of 2016, of which $50.0 million relates to loss and impairment of our investment in Diana Containerships Inc. This compares to a net loss of $17.4 million and a net loss attributed to common stockholders of $18.8 million for the third quarter of 2015.

Time charter revenues were $27.1 million for the third quarter of 2016, compared to $38.9 million for the same quarter of 2015. The decrease in time charter revenues was due to decreased average time charter rates that we achieved for our vessels during the quarter and was partly offset by revenues derived from the increase in ownership days resulting from the enlargement of our fleet.

Net loss and net loss attributed to common stockholders for the nine months ended September 30, 2016 amounted to $141.0 million and $145.3 million, respectively of which $54.4 million relates to loss and impairment of our investment in Diana Containerships Inc. This compares to a net loss and net loss attributed to common stockholders of $42.2 million and $46.5 million, respectively, for the same period of 2015. Time charter revenues were $86.2 million for the nine months ended September 30, 2016, compared to $119.4 million for the same period of 2015.

Termination of Discussions with Lenders

The Company has concluded, without agreement, its previously-announced discussions with its lenders with respect to certain proposed amendments of its outstanding loan facilities which were subject to the agreement of all of the Company's lenders on similar terms. The Company has also terminated its engagement of a financial advisor in connection with such discussions. The Company is current in all payments of principal and interest under each of its existing loan facilities. The Company does not currently anticipate resuming such discussions with its lenders. 
  Fleet Employment Profile (As of November 16, 2016)
  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
  23 Panamax Bulk Carriers
DANAE A $ 4,900     5.00 % Dampskibsselskabet Norden A/S, Copenhagen 9-Dec-15 26-Nov-16 - 9-Mar-17
  2001  75,106              
DIONE A $ 4,350     5.00 % Nidera S.P.A., Roma 4-Feb-16 20-Jan-17 - 4-May-17  
  2001  75,172              
NIREFS A $ 4,600     5.00 % Transgrain Shipping B.V., Rotterdam 15-Jan-16 15-Dec-16 - 30-Mar-17  
  2001  75,311              
ALCYON A $ 5,000     5.00 % Dampskibsselskabet Norden A/S, Copenhagen 4-May-16 4-May-17 - 4-Sep-17  
  2001  75,247              
TRITON A $ 6,800     5.00 % Glencore Grain B.V., Rotterdam 28-Oct-15 25-Oct-16  
      $ 6,300     5.00 % Windrose SPS Shipping and Trading S.A., Geneva 25-Oct-16 25-Mar-17 - 9-Jun-17  
  2001  75,336              
OCEANIS A $ 5,200     5.00 % Nidera S.P.A., Roma 30-Jun-16 30-Mar-17 - 30-May-17  
  2001  75,211              
THETIS B $ 5,150     5.00 % Transgrain Shipping B.V., Rotterdam 19-Jun-16 19-Apr-17 - 3-Aug-17  
  2004  73,583              
PROTEFS B $ 4,500     5.00 % Transgrain Shipping B.V., Rotterdam 23-Feb-16 8-Feb-17 - 23-Jun-17  
  2004  73,630              
CALIPSO B $ 6,300     5.00 % Polaris Shipping Co., Ltd., Seoul 8-Apr-16 24-Aug-16  
      $ 6,020     5.00 % Windrose SPS Shipping and Trading S.A., Geneva 24-Aug-16 24-Jan-17 - 8-Apr-17  
  2005  73,691              
10  CLIO B $ 5,350     5.00 % Transgrain Shipping B.V., Rotterdam 22-May-16 22-Apr-17 - 22-Jul-17  
  2005  73,691              
11  NAIAS B $ 5,000     5.00 % Bunge S.A., Geneva 26-May-16 25-Nov-16 - 10-Jan-17
  2006  73,546              
12  ARETHUSA B $ 5,000     5.00 % United Bulk Carriers International S.A., Luxembourg 10-Jun-16 26-Nov-16 - 10-Jan-17
  2007  73,593              
13  ERATO C $ 4,650     5.00 % Glencore Grain B.V., Rotterdam 26-Mar-16 11-Feb-17 - 26-May-17  
  2004  74,444              
14  CORONIS C $ 4,750     5.00 % Narina Maritime Ltd 19-Mar-16 19-Feb-17 - 19-May-17  
  2006  74,381              
15  MELITE D $ 7,250     4.75 % Cargill International S.A., Geneva 13-Oct-15 29-Nov-16 - 13-Dec-16 1,2
  2004  76,436              
16  MELIA D $ 7,200     5.00 % Nidera S.P.A., Roma 24-Oct-15 24-Nov-16 - 24-Feb-17  
  2005  76,225              
17  ARTEMIS   $ 5,350     5.00 % Bunge S.A., Geneva 7-Jun-16 7-Apr-17  22-Jul-17  
  2006  76,942              
18  LETO   $ 7,100     4.75 % Cargill International S.A., Geneva 19-Jun-15 26-Nov-16 - 3-Jan-17
  2010  81,297              
19  SELINA E $ 5,800     5.00 % Dampskibsselskabet Norden A/S, Copenhagen 24-Mar-16 26-Nov-16 - 15-Feb-17
  2010  75,700              
20  MAERA E $ 4,500     5.00 % United Bulk Carriers International S.A., Luxembourg 10-May-16 28-Dec-16 - 28-Apr-17  
  2013  75,403              
21  ISMENE   $ 7,825     5.00 % Glencore Grain B.V., Rotterdam 21-Mar-16 19-Jul-16
      $ 5,850     5.00 %   7-Aug-16 23-May-17 - 22-Sep-17  
  2013  77,901              
22  CRYSTALIA F $ 6,250     5.00 % SwissMarine Services S.A., Geneva 28-Jun-16 28-May-17  28-Aug-17  
  2014  77,525              
23  ATALANDI F $ 5,300     5.00 % Glencore Grain B.V., Rotterdam 26-Mar-16 26-Nov-17 - 26-Apr-18  
  2014  77,529              
  4 Kamsarmax Bulk Carriers
24  MAIA G $ 7,500     5.00 % RWE Supply & Trading GmbH, Essen 13-Nov-15 13-Apr-17 - 13-Jul-17  
  2009  82,193              
25  MYRSINI G $ 5,550     5.00 % RWE Supply & Trading GmbH, Essen 9-Mar-16 9-Mar-17 - 24-Jun-17  
  2010  82,117              
26  MEDUSA G $ 6,300     5.00 % Quadra Commodities S.A., Geneva 7-Apr-16 15-Mar-17 - 30-Jul-17  
  2010  82,194              
27  MYRTO G $ 6,000     4.75 % Cargill International S.A., Geneva 24-Dec-15 25-Nov-16 - 8-Feb-17
                 
  2013  82,131              
  3 Post-Panamax Bulk Carriers
28  ALCMENE   $ 6,750     5.00 % ADM International Sarl, Rolle, Switzerland 13-May-15 13-Feb-17 - 2-Jun-17  
  2010  93,193              
29  AMPHITRITE H $ 7,700     5.00 % Bunge S.A., Geneva 15-Jul-15 30-Apr-17 - 30-Aug-17  
  2012  98,697              
30  POLYMNIA H $ 5,650     4.75 % Cargill International S.A., Geneva 15-Dec-15 30-Nov-16 - 15-Mar-17  
  2012  98,704              
  14 Capesize Bulk Carriers
31  NORFOLK   $ 4,350     5.00 % SwissMarine Services S.A., Geneva 28-Mar-16 28-Dec-16 - 28-Mar-17  
  2002  164,218              
32  ALIKI   $ 5,300     5.00 % SwissMarine Services S.A., Geneva 16-Jan-16 16-Dec-16 - 16-Mar-17  
  2005  180,235              
33  BALTIMORE   $ 15,000     5.00 % RWE Supply & Trading GmbH, Essen 8-Jul-13 29-Jul-16  
      $ 7,750     4.75 % Cargill International S.A., Geneva 29-Jul-16 29-Dec-16 - 29-Mar-17  
  2005  177,243              
34  SALT LAKE CITY   BCI 4TCs AVG + 3.5%   5.00 % K Noble Hong Kong Ltd., Hong Kong 7-Feb-15 25-Nov-16 - 7-Feb-17
  2005  171,810              
35  SIDERIS GS I $ 6,500     5.00 % Rio Tinto Shipping (Asia) Pte., Ltd., Singapore 22-Dec-15 22-Jan-17 - 7-Jul-17
  2006  174,186              
36  SEMIRIO I $ 4,800     5.00 % SwissMarine Services S.A., Geneva 6-Feb-16 6-Jan-17 - 6-May-17  
  2007  174,261              
37  BOSTON I $ 13,000     4.75 % Clearlake Shipping Pte. Ltd., Singapore 9-Aug-15 25-May-17 - 24-Oct-17
  2007  177,828              
38  HOUSTON I $ 5,150     5.00 % SwissMarine Services S.A., Geneva 29-Jan-16 29-Dec-16 - 29-Mar-17  
  2009  177,729              
39  NEW YORK I $ 5,200     5.00 % Rio Tinto Shipping (Asia) Pte., Ltd., Singapore 3-Feb-16 3-Jan-17 - 18-May-17  
  2010  177,773              
40  SEATTLE J $ 7,300     4.75 % SwissMarine Services S.A., Geneva 9-Dec-15 25-Nov-16 - 9-Feb-17
  2011  179,362              
41  P. S. PALIOS J $ 13,000     5.00 % RWE Supply & Trading GmbH, Essen 18-Sep-15 31-Dec-16 - 31-Mar-17  
                 
  2013  179,134              
42  G. P. ZAFIRAKIS K $ 6,500     5.00 % RWE Supply & Trading GmbH, Essen 14-Feb-16 14-May-17 - 14-Aug-17  
                 
  2014  179,492              
43  SANTA BARBARA K $ 7,500     5.00 % RWE Supply & Trading GmbH, Essen 18-Dec-15 18-Dec-16 - 18-Mar-17  
  2015  179,426              
44  NEW ORLEANS   $ 11,650     5.00 % SwissMarine Services S.A., Geneva 11-Nov-15 30-Nov-16 - 15-Dec-16
  2015  180,960              
  2 Newcastlemax Bulk Carriers
45  LOS ANGELES L $ 7,750     5.00 % SwissMarine Services S.A., Geneva 9-Dec-15 24-Nov-16 - 24-Mar-17  
  2012  206,104              
46  PHILADELPHIA L $ 6,450     5.00 % RWE Supply & Trading GmbH, Essen 20-Jan-16 20-Dec-16 - 20-Mar-17  
  2012  206,040              
  2 Vessels Under Construction
47  HULL No. H2548 M   -     -   - - - - -
  (tbn. SAN FRANCISCO)              
  2016  208,500              
48  HULL No. H2549 M   -     -   - - - - -
  (tbn. NEWPORT NEWS)              
  2017  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.
*** 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 Based on latest information.
2 As per addendum dated September 23, 2016, charterers have the option to extend the initially agreed maximum redelivery date and pay the "P2A_03" route as published by the Baltic Exchange on December 13, 2016, but in any case not below the US$7,250 initially agreed.
3 Vessel on scheduled drydocking from July 19, 2016 to July 23, 2016.
4 Vessel off-hire for drydocking from October 24, 2016 to November 11, 2016.
5 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
6 Year of delivery and dwt are based on shipbuilding contract and the relevant addenda.

Summary of Selected Financial & Other Data (unaudited)
      Three months ended September 30,   Nine months ended September 30,
        2016       2015       2016       2015  
                   
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
  Time charter revenues $   27,122   $   38,852   $   86,240   $   119,427  
  Voyage expenses     2,122       3,053       12,439       12,105  
  Vessel operating expenses     21,218       21,573       65,093       64,695  
  Net loss     (78,312 )     (17,396 )     (140,981 )     (42,216 )
  Net loss attributed to common stockholders     (79,754 )     (18,838 )     (145,308 )     (46,543 )
FLEET DATA
  Average number of vessels     46.0       41.0       44.9       40.4  
  Number of vessels     46.0       41.0       46.0       41.0  
  Weighted average age of vessels     7.9       7.5       7.9       7.5  
  Ownership days     4,232       3,772       12,310       11,030  
  Available days     4,227       3,695       12,232       10,798  
  Operating days     4,201       3,691       12,144       10,697  
  Fleet utilization     99.4 %     99.9 %     99.3 %     99.1 %
AVERAGE DAILY RESULTS
  Time charter equivalent (TCE) rate (1) $   5,914   $   9,688   $   6,033   $   9,939  
  Daily vessel operating expenses (2) $   5,014   $   5,719   $   5,288   $   5,865  

_____________________

(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, November 29, 2016.

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 13646687.

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, 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 LOSS
                   
      Three months ended September 30,   Nine months ended September 30,
        2016       2015       2016       2015  
                   
REVENUES:                
  Time charter revenues $   27,122   $   38,852   $   86,240   $   119,427  
                   
EXPENSES:                
  Voyage expenses     2,122       3,053       12,439       12,105  
  Vessel operating expenses     21,218       21,573       65,093       64,695  
  Depreciation and amortization of deferred charges     20,626       19,274       60,940       56,538  
  General and administrative expenses     5,975       5,977       18,718       17,874  
  Management fees to related party     360       85       1,080       85  
  Foreign currency loss / (gain)     (53 )     (77 )     22       (558 )
  Operating loss     (23,126 )     (11,033 )     (72,052 )     (31,312 )
                   
OTHER INCOME / (EXPENSES):                
  Interest and finance costs     (5,698 )     (4,791 )     (16,309 )     (10,684 )
  Interest and other income     540       834       1,637       2,635  
  Loss from equity method investments     (50,028 )     (2,406 )     (54,257 )     (2,855 )
  Total other expenses, net     (55,186 )     (6,363 )     (68,929 )     (10,904 )
                   
Net loss $   (78,312 ) $   (17,396 ) $   (140,981 ) $   (42,216 )
                   
Dividends on series B preferred shares     (1,442 )     (1,442 )     (4,327 )     (4,327 )
                   
Net loss attributed to common stockholders     (79,754 )     (18,838 )     (145,308 )     (46,543 )
                   
Loss per common share, basic and diluted $   (0.99 ) $   (0.24 ) $   (1.81 ) $   (0.59 )
                   
Weighted average number of common shares, basic and diluted     80,534,351       79,562,705       80,370,383       79,462,836  
                   
      Three months ended September 30,   Nine months ended September 30,
        2016       2015       2016       2015  
                   
Net loss $   (78,312 ) $   (17,396 ) $   (140,981 ) $   (42,216 )
Other comprehensive loss (Actuarial loss)     (8 )     -       (23 )     -  
Comprehensive loss $   (78,320 ) $   (17,396 ) $   (141,004 ) $   (42,216 )

CONDENSED CONSOLIDATED BALANCE SHEET DATA  
(in thousands of U.S. Dollars)      
             
      September 30, 2016   December 31, 2015 *
ASSETS   (unaudited)      
             
Cash and cash equivalents $ 108,382 $ 171,718  
Other current assets   13,476   21,795  
Advances for vessels under construction and acquisitions and other vessel costs   51,287   44,514  
Vessels' net book value   1,423,190   1,440,803  
Other fixed assets, net   23,242   23,489  
Compensating cash balance   23,000   21,500  
Due from related parties, non-current   45,417   43,750  
Equity method investments   8,134   62,487  
Other non-current assets   5,636   6,909  
  Total assets $ 1,701,764 $ 1,836,965  
             
LIABILITIES AND STOCKHOLDERS' EQUITY          
             
Long-term debt, net of deferred financing costs $ 608,975 $ 600,071  
Other liabilities   13,506   18,528  
Total stockholders' equity   1,079,283   1,218,366  
  Total liabilities and stockholders' equity $ 1,701,764 $ 1,836,965  
             
* The balance sheet data as of December 31, 2015 has been derived from the audited consolidated financial statements at that date.

OTHER FINANCIAL DATA (unaudited)
      Three months ended September 30,   Nine months ended September 30,
        2016       2015        2016       2015   
                   
Net Cash provided by/(used in) operating activities $    (4,981 ) $    8,186    $    (18,606 ) $    22,452   
Net Cash used in investing activities      (737 )      (551 )      (46,295 )      (77,418 )
Net Cash provided by/(used in) financing activities $    (11,538 ) $    (39,866 ) $    1,565    $    77,585   

 
Corporate Contact:Ioannis ZafirakisDirector, Chief Operating Officer and SecretaryTelephone: + 30-210-9470100Email: izafirakis@dianashippinginc.comWebsite: www.dianashippinginc.comInvestor and Media Relations:Edward NebbComm-Counsellors, LLCTelephone: + 1-203-972-8350Email: enebb@optonline.net

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