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Diana Shipping Inc. Reports Financial Results for the Quarter Ended March 31, 2014

ATHENS, Greece, May 14, 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 $6.0 million and net loss available to common stockholders of $6.8 million for the first quarter of 2014, compared to a net loss and net loss available to common stockholders of $3.2 million reported in the first quarter of 2013.

Time charter revenues were $41.1 million for the first quarter of 2014, compared to $42.6 million for the same period of 2013, 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 enlargement of our fleet.

Fleet Employment Profile (As of May 13, 2014)
Currently Diana Shipping Inc.'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 DANAE A $8,250 5.00% Intermare Transport GmbH, Hamburg 10-Mar-13 10-Sep-14 - 10-Jan-15
2001 75,106
2 DIONE A $9,700 5.00% EDF Trading Limited, UK 19-Jul-12 19-Jul-14 - 19-Dec-14
2001 75,172
3 NIREFS A $8,000 5.00% Intermare Transport GmbH, Hamburg 29-Jan-13 29-Jul-14 - 29-Jan-15
2001 75,311
4 ALCYON A $7,750 5.00% EDF Trading Limited, UK 21-Dec-12 21-Nov-14 - 21-May-15
2001 75,247
5 TRITON A $11,000 5.00% Bunge S.A., Geneva 16-Dec-13 1-Sep-14 - 31-Oct-14
2001 75,336
6 OCEANIS A $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 14-Aug-12 4-Jun-14 - 14-Jul-14 1
2001 75,211
7 THETIS B $8,300 5.00% EDF Trading Limited, UK 1-Sep-13 1-Jul-15 - 1-Dec-15 2,3,4
2004 73,583
8 PROTEFS B $9,000 5.00% Cargill International S.A., Geneva 14-Sep-12 14-Sep-14 - 14-Feb-15
2004 73,630
9 CALIPSO B $8,100 4.75% Cargill International S.A., Geneva 29-Jul-13 29-Apr-15 - 29-Aug-15
2005 73,691
10 CLIO B $8,600 4.75% Cargill International S.A., Geneva 22-Aug-13 22-May-15 - 22-Aug-15 5
2005 73,691
11 NAIAS B $9,250 5.00% Ultrabulk A/S, Copenhagen, Denmark 2-Sep-12 12-Jun-14 - 2-Aug-14 1
2006 73,546
12 ARETHUSA B $7,300 5.00% Cargill International S.A., Geneva 22-Nov-12 16-Jun-14 - 22-Nov-14
2007 73,593
13 ERATO C $6,500 5.00% Cargill International S.A., Geneva 9-Jan-13 9-Jul-14 - 9-Jan-15 6
2004 74,444
14 CORONIS C $10,600 5.00% EDF Trading Limited, UK 12-Mar-12 24-May-14 1
2006 74,381
15 MELITE D $7,750 5.00% Cargill International S.A., Geneva 28-Dec-12 1-Jul-14 - 1-Jan-15
2004 76,436
16 MELIA D $9,700 3.75% Rio Tinto Shipping Pty, Ltd., Melbourne 17-Apr-13 10-May-14
$12,000 10-May-14 10-Apr-15 - 10-Jul-15
2005 76,225
17 ARTEMIS $9,375 3.75% Rio Tinto Shipping Pty, Ltd., Melbourne 26-Aug-13 26-Jun-15 - 26-Oct-15
2006 76,942
18 LETO $12,900 5.00% EDF Trading Limited, UK 17-Jan-12 4-Jun-14 - 17-Nov-14 1
2010 81,297
19 CRYSTALIA E $15,800 5.00% Glencore Grain B.V., Rotterdam 21-Feb-14 21-Aug-15 - 21-Nov-15
2014 77,525
20 ATALANDI E $13,500 5.00% Glencore Grain B.V., Rotterdam 13-May-14 13-Apr-15 - 13-Jul-15
2014 77,529
Kamsarmax Bulk Carriers
21 MAIA F $10,900 5.00% Glencore Grain B.V., Rotterdam 27-Feb-13 12-Aug-14 - 27-Feb-15
2009 82,193
22 MYRSINI F $15,500 4.75% Clearlake Shipping Pte. Ltd., Singapore 12-Oct-13 12-Feb-14 7
12-Feb-14 15-Feb-15 - 10-May-15
2010 82,117
23 MYRTO F $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
24 ALCMENE $7,250 5.00% ADM International Sarl, Rolle, Switzerland 22-Feb-13 7-Aug-14 - 22-Feb-15
2010 93,193
25 AMPHITRITE $10,000 5.00% Bunge S.A., Geneva 15-Aug-12 31-May-14 - 30-Oct-14 8
2012 98,697
26 POLYMNIA $7,600 5.00% Bunge S.A., Geneva 16-Jan-13 16-Jul-14 - 16-Jan-15 9,10
2012 98,704
Capesize Bulk Carriers
27 NORFOLK $10,700 4.50% Clearlake Shipping Pte. Ltd., Singapore 16-Jan-13 16-Jul-14 - 16-Jan-15 7
2002 164,218
28 ALIKI $26,500 5.00% Minmetals Logistics Group Co. Ltd., Beijing 1-Mar-11 1-Feb-16 - 1-Apr-16
2005 180,235
29 BALTIMORE $15,000 5.00% RWE Supply & Trading GmbH, Essen 8-Jul-13 8-Jul-16 - 8-Jan-17 4
2005 177,243
30 SALT LAKE CITY $13,000 5.00% Morgan Stanley Capital Group Inc. 11-Aug-12 11-Jun-14 - 11-Dec-14
2005 171,810
31 SIDERIS GS G $13,500 4.75% Cargill International S.A., Geneva 14-Mar-13 14-Dec-14 - 14-Jun-15
2006 174,186
32 SEMIRIO G $14,000 4.75% Cargill International S.A., Geneva 19-Mar-13 19-Jan-15 - 19-Jun-15
2007 174,261
33 BOSTON G $14,250 4.75% Clearlake Shipping Pte. Ltd., Singapore 24-Aug-13 9-Aug-15 - 8-Feb-16 7
2007 177,828
34 HOUSTON G $20,500 4.75% Clearlake Shipping Pte. Ltd., Singapore 3-Dec-13 19-Oct-14 - 18-Feb-15 7
2009 177,729
35 NEW YORK G $48,000 3.75% Nippon Yusen Kaisha, Tokyo (NYK) 3-Mar-10 3-Jan-15 - 3-May-15
2010 177,773
36 P. S. PALIOS $18,350 5.00% RWE Supply & Trading GmbH, Essen 3-Dec-13 18-Sep-15 - 31-Dec-15
2013 179,134
Newcastlemax Bulk Carriers
37 LOS ANGELES H $18,000 5.00% EDF Trading Limited, UK 9-Feb-12 9-Dec-15 - 9-Apr-16
2012 206,104
38 PHILADELPHIA H $18,000 5.00% EDF Trading Limited, UK 17-May-12 17-Jan-16 - 17-Jul-16
2012 206,040
Vessels Under Construction
39 HULL DY6006 -- -- -- -- -- -- -- 11
2016 82,000
40 HULL H2548 I -- -- -- -- -- -- -- 11
2016 208,500
41 HULL H2549 I -- -- -- -- -- -- -- 11
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 Based on latest information.
2 Vessel off-hire for unscheduled maintenance from February 12, 2014 to March 7, 2014.
3 Vessel off-hire from April 21, 2014 to April 23, 2014.
4 Vessel currently off-hire for drydocking.
5 Vessel off-hire for drydocking from December 12, 2013 to January 2, 2014.
6 Vessel off-hire for unscheduled maintenance from February 14, 2014 to February 23, 2014.
7 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
8 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.
9 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.
10 Prior to October 12, 2013, chartered to Augustea Bunge Maritime Limited, Malta.
11 Year of delivery and dwt are based on shipbuilding contract.
Summary of Selected Financial & Other Data (unaudited)
Three months ended March 31,
2014 2013
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
Time charter revenues $ 41,145 $ 42,601
Voyage expenses 2,398 2,199
Vessel operating expenses 20,656 17,957
Net loss (6,027) (3,183)
Net loss available to common stockholders (6,780) (3,183)
FLEET DATA
Average number of vessels 36.4 31.2
Number of vessels 37 32
Weighted average age of vessels 6.7 6.1
Ownership days 3,280 2,806
Available days 3,278 2,806
Operating days 3,238 2,772
Fleet utilization 98.8% 98.8%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 11,820 $ 14,398
Daily vessel operating expenses (2) $ 6,298 $ 6,400

________

(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 14, 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 13579143.

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 LOSS
Three months ended March 31,
2014 2013
REVENUES:
Time charter revenues $41,145 $42,601
Other revenues -- 447
EXPENSES:
Voyage expenses 2,398 2,199
Vessel operating expenses 20,656 17,957
Depreciation and amortization of deferred charges 16,874 15,549
General and administrative expenses 6,248 5,464
Foreign currency gain (65) (74)
Operating income / (loss) (4,966) 1,953
OTHER INCOME / (EXPENSES):
Interest and finance costs (1,960) (2,064)
Interest and other income 904 200
Loss from derivative instruments (4) (4)
Loss from investment in Diana Containerships Inc. (1) (3,268)
Total other expenses, net (1,061) (5,136)
Net loss (6,027) (3,183)
Earnings allocated to preferred stock (753) --
Net loss attributed to common stockholders (6,780) (3,183)
Loss per common share, basic and diluted $ (0.08) $ (0.04)
Weighted average number of common shares, basic and diluted 81,733,673 81,059,313
Three months ended March 31,
2014 2013
Net loss $ (6,027) $ (3,183)
Other comprehensive loss (Actuarial loss) -- (98)
Comprehensive loss $ (6,027) $ (3,281)
CONDENSED CONSOLIDATED BALANCE SHEET DATA (unaudited)
(in thousands of U.S. Dollars)
March 31, 2014 December 31, 2013
ASSETS
Cash and cash equivalents $ 307,406 $ 240,633
Other current assets 12,928 11,235
Advances for vessels under construction and acquisitions and other vessel costs 27,034 38,862
Vessels' net book value 1,335,348 1,320,375
Other fixed assets, net 22,726 22,826
Other non-current assets 66,791 68,050
Total assets $ 1,772,233 $ 1,701,981
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities, including current portion of long-term debt $ 90,978 $ 62,752
Long-term debt, net of current portion and deferred financing costs 369,198 385,025
Other non-current liabilities 749 812
Total stockholders' equity 1,311,308 1,253,392
Total liabilities and stockholders' equity $ 1,772,233 $ 1,701,981
OTHER FINANCIAL DATA (unaudited)
Three months ended March 31,
2014 2013
Net Cash provided by operating activities $ 9,637 $ 17,394
Net Cash used in investing activities (19,038) (47,680)
Net Cash provided by / (used in) financing activities $ 76,174 $ (4,008)

CONTACT: Corporate Contact: Ioannis Zafirakis Director, Chief Operating Officer 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.netSource:Diana Shipping Inc.