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:
VesselSister
Ships*
Gross
Rate
(USD Per
Day)
Com**CharterersDelivery
Date to
Charterers***
Redelivery Date to Owners****Notes
BUILT DWT
23 Panamax Bulk Carriers
1 DANAEA$4,900 5.00%Dampskibsselskabet Norden A/S, Copenhagen9-Dec-1526-Nov-16 - 9-Mar-171
2001 75,106
2 DIONEA$4,350 5.00%Nidera S.P.A., Roma4-Feb-1620-Jan-17 - 4-May-17
2001 75,172
3 NIREFSA$4,600 5.00%Transgrain Shipping B.V., Rotterdam15-Jan-1615-Dec-16 - 30-Mar-17
2001 75,311
4 ALCYONA$5,000 5.00%Dampskibsselskabet Norden A/S, Copenhagen4-May-164-May-17 - 4-Sep-17
2001 75,247
5 TRITONA$6,800 5.00%Glencore Grain B.V., Rotterdam28-Oct-1525-Oct-16
$6,300 5.00%Windrose SPS Shipping and Trading S.A., Geneva25-Oct-1625-Mar-17 - 9-Jun-17
2001 75,336
6 OCEANISA$5,200 5.00%Nidera S.P.A., Roma30-Jun-1630-Mar-17 - 30-May-17
2001 75,211
7 THETISB$5,150 5.00%Transgrain Shipping B.V., Rotterdam19-Jun-1619-Apr-17 - 3-Aug-17
2004 73,583
8 PROTEFSB$4,500 5.00%Transgrain Shipping B.V., Rotterdam23-Feb-168-Feb-17 - 23-Jun-17
2004 73,630
9 CALIPSOB$6,300 5.00%Polaris Shipping Co., Ltd., Seoul8-Apr-1624-Aug-16
$6,020 5.00%Windrose SPS Shipping and Trading S.A., Geneva24-Aug-1624-Jan-17 - 8-Apr-17
2005 73,691
10 CLIOB$5,350 5.00%Transgrain Shipping B.V., Rotterdam22-May-1622-Apr-17 - 22-Jul-17
2005 73,691
11 NAIASB$5,000 5.00%Bunge S.A., Geneva26-May-1625-Nov-16 - 10-Jan-171
2006 73,546
12 ARETHUSAB$5,000 5.00%United Bulk Carriers International S.A., Luxembourg10-Jun-1626-Nov-16 - 10-Jan-171
2007 73,593
13 ERATOC$4,650 5.00%Glencore Grain B.V., Rotterdam26-Mar-1611-Feb-17 - 26-May-17
2004 74,444
14 CORONISC$4,750 5.00%Narina Maritime Ltd19-Mar-1619-Feb-17 - 19-May-17
2006 74,381
15 MELITED$7,250 4.75%Cargill International S.A., Geneva13-Oct-1529-Nov-16 - 13-Dec-161,2
2004 76,436
16 MELIAD$7,200 5.00%Nidera S.P.A., Roma24-Oct-1524-Nov-16 - 24-Feb-17
2005 76,225
17 ARTEMIS $5,350 5.00%Bunge S.A., Geneva7-Jun-167-Apr-17 22-Jul-17
2006 76,942
18 LETO $7,100 4.75%Cargill International S.A., Geneva19-Jun-1526-Nov-16 - 3-Jan-171
2010 81,297
19 SELINAE$5,800 5.00%Dampskibsselskabet Norden A/S, Copenhagen24-Mar-1626-Nov-16 - 15-Feb-171
2010 75,700
20 MAERAE$4,500 5.00%United Bulk Carriers International S.A., Luxembourg10-May-1628-Dec-16 - 28-Apr-17
2013 75,403
21 ISMENE $7,825 5.00%Glencore Grain B.V., Rotterdam21-Mar-1619-Jul-163
$5,850 5.00% 7-Aug-1623-May-17 - 22-Sep-17
2013 77,901
22 CRYSTALIAF$6,250 5.00%SwissMarine Services S.A., Geneva28-Jun-1628-May-17 28-Aug-17
2014 77,525
23 ATALANDIF$5,300 5.00%Glencore Grain B.V., Rotterdam26-Mar-1626-Nov-17 - 26-Apr-18
2014 77,529
4 Kamsarmax Bulk Carriers
24 MAIAG$7,500 5.00%RWE Supply & Trading GmbH, Essen13-Nov-1513-Apr-17 - 13-Jul-17
2009 82,193
25 MYRSINIG$5,550 5.00%RWE Supply & Trading GmbH, Essen9-Mar-169-Mar-17 - 24-Jun-17
2010 82,117
26 MEDUSAG$6,300 5.00%Quadra Commodities S.A., Geneva7-Apr-1615-Mar-17 - 30-Jul-17
2010 82,194
27 MYRTOG$6,000 4.75%Cargill International S.A., Geneva24-Dec-1525-Nov-16 - 8-Feb-171
2013 82,131
3 Post-Panamax Bulk Carriers
28 ALCMENE $6,750 5.00%ADM International Sarl, Rolle, Switzerland13-May-1513-Feb-17 - 2-Jun-17
2010 93,193
29 AMPHITRITEH$7,700 5.00%Bunge S.A., Geneva15-Jul-1530-Apr-17 - 30-Aug-17
2012 98,697
30 POLYMNIAH$5,650 4.75%Cargill International S.A., Geneva15-Dec-1530-Nov-16 - 15-Mar-17
2012 98,704
14 Capesize Bulk Carriers
31 NORFOLK $4,350 5.00%SwissMarine Services S.A., Geneva28-Mar-1628-Dec-16 - 28-Mar-17
2002 164,218
32 ALIKI $5,300 5.00%SwissMarine Services S.A., Geneva16-Jan-1616-Dec-16 - 16-Mar-17
2005 180,235
33 BALTIMORE $15,000 5.00%RWE Supply & Trading GmbH, Essen8-Jul-1329-Jul-16
$7,750 4.75%Cargill International S.A., Geneva29-Jul-1629-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 Kong7-Feb-1525-Nov-16 - 7-Feb-171
2005 171,810
35 SIDERIS GSI$6,500 5.00%Rio Tinto Shipping (Asia) Pte., Ltd., Singapore22-Dec-1522-Jan-17 - 7-Jul-174
2006 174,186
36 SEMIRIOI$4,800 5.00%SwissMarine Services S.A., Geneva6-Feb-166-Jan-17 - 6-May-17
2007 174,261
37 BOSTONI$13,000 4.75%Clearlake Shipping Pte. Ltd., Singapore9-Aug-1525-May-17 - 24-Oct-175
2007 177,828
38 HOUSTONI$5,150 5.00%SwissMarine Services S.A., Geneva29-Jan-1629-Dec-16 - 29-Mar-17
2009 177,729
39 NEW YORKI$5,200 5.00%Rio Tinto Shipping (Asia) Pte., Ltd., Singapore3-Feb-163-Jan-17 - 18-May-17
2010 177,773
40 SEATTLEJ$7,300 4.75%SwissMarine Services S.A., Geneva9-Dec-1525-Nov-16 - 9-Feb-171
2011 179,362
41 P. S. PALIOSJ$13,000 5.00%RWE Supply & Trading GmbH, Essen18-Sep-1531-Dec-16 - 31-Mar-17
2013 179,134
42 G. P. ZAFIRAKISK$6,500 5.00%RWE Supply & Trading GmbH, Essen14-Feb-1614-May-17 - 14-Aug-17
2014 179,492
43 SANTA BARBARAK$7,500 5.00%RWE Supply & Trading GmbH, Essen18-Dec-1518-Dec-16 - 18-Mar-17
2015 179,426
44 NEW ORLEANS $11,650 5.00%SwissMarine Services S.A., Geneva11-Nov-1530-Nov-16 - 15-Dec-161
2015 180,960
2 Newcastlemax Bulk Carriers
45 LOS ANGELESL$7,750 5.00%SwissMarine Services S.A., Geneva9-Dec-1524-Nov-16 - 24-Mar-17
2012 206,104
46 PHILADELPHIAL$6,450 5.00%RWE Supply & Trading GmbH, Essen20-Jan-1620-Dec-16 - 20-Mar-17
2012 206,040
2 Vessels Under Construction
47 HULL No. H2548M - - --- - -6
(tbn. SAN FRANCISCO)
2016 208,500
48 HULL No. H2549M - - --- - -6
(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 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.net

Source:Diana Shipping Inc.c/oDiana Shipping Services S.A.