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Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2017

ATHENS, Greece, Feb. 22, 2018 (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 $436.9 million and net loss attributed to common stockholders of $438.4 million for the fourth quarter of 2017, including a $422.5 million impairment loss. Accordingly, for the fourth quarter ended December 31, 2017, net loss and net loss attributed to common stockholders, adjusted for impairment, amounted to $14.5 million and $15.9 million, respectively1. For the fourth quarter of 2016, net loss and net loss attributed to common stockholders amounted to $23.3 million and $24.7 million, respectively.

Time charter revenues were $48.9 million for the fourth quarter of 2017, compared to $28.0 million for the same quarter of 2016. The increase in time charter revenues was due to increased average time charter rates achieved for the Company’s vessels during the quarter and increased revenues resulting from the enlargement of the fleet.

Net loss and net loss attributed to common stockholders for the year ended December 31, 2017 amounted to $511.7 million and $517.5 million, respectively. This compares to a net loss and net loss attributed to common stockholders of $164.2 million and $170.0 million, respectively, for the same period of 2016. Time charter revenues were $161.9 million for the year ended December 31, 2017, compared to $114.3 million for the same period of 2016.

1 See the reconciliation of adjusted net loss and net loss attributed to common stockholders to net loss and net loss attributed to common stockholders and adjusted loss per share to loss per share included in this release.

Fleet Employment Profile (As of February 22, 2018)
Diana Shipping Inc.’s fleet is employed as follows:
VesselSister
Ships*
Gross
Rate
(USD Per
Day)
CharterersDelivery
Date to
Charterers***
Redelivery Date to Owners****Notes
BUILT DWT
22 Panamax Bulk Carriers
1 DANAEA$7,7505.00%Phaethon International
24-May-1722-Dec-17
$10,0005.00%Company AG22-Dec-1722-Jan-19 - 7-May-19
2001 75,106
2 DIONEA$7,0505.00%Caravel Shipping Limited, Hong
Kong
3-Feb-1723-Jan-181
$10,3505.00%Ausca Shipping Limited, Hong
Kong
23-Jan-1823-Mar-19 - 8-Jul-19
2001 75,172
3 NIREFSA$9,4005.00%Jaldhi Overseas Pte. Ltd.,
Singapore
5-May-175-Jun-18 - 5-Sep-18
2001 75,311
4 ALCYONA$8,8005.00%Hudson Shipping Lines
Incorporated
20-Jul-1720-Jul-18 - 20-Oct-18
2001 75,247
5 TRITONA$6,5005.00%Ausca Shipping Limited, Hong
Kong
8-Jun-178-Jul-18 - 23-Oct-18
2001 75,336
6 OCEANISA$7,0005.00%Ausca Shipping Limited, Hong
Kong
30-May-1730-Jul-18 - 14-Nov-18
2001 75,211
7 THETISB$8,3505.00%Ausca Shipping Limited, Hong
Kong
14-Jul-1714-Jul-18 - 14-Oct-18
2004 73,583
8 PROTEFSB$7,9005.00%Hudson Shipping Lines
Incorporated
24-Jun-1724-Jun-18 - 9-Oct-18
2004 73,630
9 CALIPSOB$9,0005.00%Transgrain Shipping B.V.,
Rotterdam
14-Mar-1723-Feb-18 - 30-Mar-182
2005 73,691
10 CLIOB$8,5505.00%Phaethon International
Company AG
9-Jul-179-Aug-18 - 9-Nov-18
2005 73,691
11 NAIASB$7,5005.00%Glencore Agriculture B.V.,
Rotterdam
27-Dec-1611-Nov-173
$10,0005.00%Phaethon International
Company AG
26-Nov-1711-Feb-19 - 26-May-19
2006 73,546
12 ARETHUSAB$7,2005.00%Noble Resources International
Pte. Ltd., Singapore
23-Jan-171-Mar-18 - 23-Mar-182,4
2007 73,593
13 ERATOC$7,2505.00%Phaethon International
Company AG
25-May-1730-Dec-17
$10,5005.00%30-Dec-172-Mar-19 - 30-May-19
2004 74,444
14 CORONISC$9,0005.00%Narina Maritime Ltd16-May-1716-Apr-18 - 16-Jul-18
2006 74,381
15 MELIA $9,5005.00%Nidera S.P.A., Roma19-Mar-1727-Feb-18 - 4-May-185
2005 76,225
16 ARTEMIS $9,0005.00%Ausca Shipping Limited, Hong
Kong
8-Jul-178-Jul-18 - 8-Oct-18
2006 76,942
17 LETO $7,7505.00%Glencore Agriculture B.V.,
Rotterdam
29-Dec-1610-Jan-18
$12,5005.00%10-Jan-1810-May-19 - 25-Aug-19
2010 81,297
18 SELINAD$7,1005.00%BG Shipping Co., Limited, Hong
Kong
24-Jan-176-Feb-186
$12,2505.00%6-Feb-186-Jun-19 - 6-Sep-19
2010 75,700
19 MAERAD$11,9005.00%Unico Logistics Co., Ltd., Seoul19-Sep-1719-Jun-18 - 19-Aug-18
2013 75,403
20 ISMENE $12,0005.00%DHL Project & Chartering
Limited, Hong Kong
16-Sep-1716-Sep-18 - 16-Dec-18
2013 77,901
21 CRYSTALIAE$6,2505.00%SwissMarine Services S.A.,
Geneva
28-Jun-163-Oct-17
$11,1005.00%Glencore Agriculture B.V.,
Rotterdam
3-Oct-173-Oct-18 - 18-Jan-19
2014 77,525
22 ATALANDIE$5,3005.00%Glencore Grain B.V., Rotterdam26-Mar-1625-Feb-18 - 26-Apr-182
2014 77,529
5 Kamsarmax Bulk Carriers
23 MAIAF$10,1255.00%Glencore Agriculture B.V.,
Rotterdam
27-Jul-1727-Jul-18 - 27-Oct-18
2009 82,193
24 MYRSINIF$8,6505.00%RWE Supply & Trading GmbH,
Essen
8-Jun-1731-Aug-18 - 31-Dec-18
2010 82,117
25 MEDUSAF$10,0004.75%Cargill International S.A.,
Geneva
6-Jul-176-Jul-18 - 6-Oct-18
2010 82,194
26 MYRTOF$8,0004.75%Cargill International S.A.,
Geneva
17-Jan-1726-Feb-18 - 17-Apr-182,7
2013 82,131
27 ASTARTE $9,0005.00%Glencore Agriculture B.V.,
Rotterdam
12-Jun-1712-Aug-18 - 12-Nov-18
2013 81,513
5 Post-Panamax Bulk Carriers
28 ALCMENE $8,0004.75%Cargill International S.A.,
Geneva
8-Jun-178-Jul-18 - 23-Oct-18
2010 93,193
29 AMPHITRITEG$11,1504.75%Cargill International S.A.,
Geneva
28-Sep-1728-Oct-18 - 28-Jan-19
2012 98,697
30 POLYMNIAG$10,1004.75%Cargill International S.A.,
Geneva
15-Mar-1731-Mar-18 - 15-Jul-18
2012 98,704
31 ELECTRAH$8,0005.00%Uniper Global Commodities SE,
Düsseldorf
11-Jun-1711-Jul-18 - 11-Nov-18
2013 87,150
32 PHAIDRAH$7,7505.00%Jera Trading Singapore Pte. Ltd.19-May-1713-Jan-188
$12,7005.00%Uniper Global Commodities SE,
Düsseldorf
13-Jan-1813-Jan-19 - 13-Apr-19
2013 87,146
14 Capesize Bulk Carriers
33 NORFOLK $12,0005.00%Trafigura Maritime Logistics Pte.
Ltd., Singapore
26-Apr-171-Dec-17
$13,2505.00%SwissMarine Services S.A.,
Geneva
1-Dec-171-Sep-19 - 1-Dec-19
2002 164,218
34 ALIKI $10,3005.00%SwissMarine Services S.A.,
Geneva
14-Feb-1725-Feb-18 - 14-Apr-182
2005 180,235
35 BALTIMORE $11,3004.75%Cargill International S.A.,
Geneva
16-Feb-1716-Mar-18 - 1-Jul-18
2005 177,243
36 SALT LAKE CITY $9,0005.00%Uniper Global Commodities SE,
Düsseldorf
20-Jan-171-Mar-18 - 20-May-182
2005 171,810
37 SIDERIS GSI$13,0005.00%Rio Tinto Shipping (Asia) Pte.,
Ltd., Singapore
21-Jun-1721-Jul-18 - 21-Nov-18
2006 174,186
38 SEMIRIOI$14,1505.00%Koch Shipping Pte. Ltd.,
Singapore
21-May-1721-May-18 - 21-Sep-18
2007 174,261
39 BOSTONI$13,0004.75%Clearlake Shipping Pte. Ltd.,
Singapore
9-Aug-156-Dec-179,10
$17,0005.00%EGPN Bulk Carrier Co., Limited,
Hong Kong
6-Dec-176-Apr-19 - 6-Jul-19
2007 177,828
40 HOUSTONI$10,0005.00%SwissMarine Services S.A.,
Geneva
17-Feb-172-Mar-18 - 17-May-1811
2009 177,729
41 NEW YORKI$14,4505.00%Koch Shipping Pte. Ltd.,
Singapore
23-Apr-172-Feb-1812
$16,0005.00%DHL Project & Chartering
Limited, Hong Kong
2-Feb-182-Jun-19 - 2-Sep-19
2010 177,773
42 SEATTLEJ$11,7005.00%Koch Shipping Pte. Ltd.,
Singapore
8-Feb-178-Apr-18 - 23-Jul-18
2011 179,362
43 P. S. PALIOSJ$10,5505.00%Koch Shipping Pte. Ltd.,
Singapore
27-Jan-1728-Feb-18 - 11-Jun-182
2013 179,134
44 G. P. ZAFIRAKISK$15,0005.00%RWE Supply & Trading GmbH,
Essen
14-Aug-1729-Sep-18 - 14-Jan-19
2014 179,492
45 SANTA BARBARAK$12,0004.75%Cargill International S.A.,
Geneva
24-Jan-1727-Feb-18 - 24-Apr-182
2015 179,426
46 NEW ORLEANS $11,2505.00%Koch Shipping Pte. Ltd.,
Singapore
10-Dec-1624-Feb-18 - 10-Apr-182
2015 180,960
4 Newcastlemax Bulk Carriers
47 LOS ANGELESLBCI_2014
5TCs AVG
+ 14%
5.00%SwissMarine Services S.A.,
Geneva
22-Jan-1724-Feb-18 - 22-Apr-182
2012 206,104
48 PHILADELPHIAL$15,5005.00%Koch Shipping Pte. Ltd.,
Singapore
14-Mar-1726-Feb-18 - 29-Apr-182
2012 206,040
49 SAN FRANCISCOM$11,7505.00%Koch Shipping Pte. Ltd.,
Singapore
5-Jan-1728-Feb-18 - 20-May-182
2017 208,006
50 NEWPORT NEWSMBCI_2014
5TCs AVG
+ 24%
5.00%SwissMarine Services S.A.,
Geneva
10-Jan-1710-Nov-18 - 10-Mar-19
2017 208,021
* 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 The charter rate was US$7,200 for the first ninety (90) days of the charter period.
2 Based on latest information.
3 Vessel on scheduled drydocking from November 11, 2017 to November 26, 2017.
4 Vessel currently off-hire for drydocking.
5 Since September 17, 2017, Charterers have changed to COFCO Agri Freight SA.
6 The charter rate was US$4,500 for the first thirty (30) days of the charter period.
7 Vessel off-hire for drydocking from December 24, 2017 to January 12, 2018.
8 Charterers have agreed to pay the weighted average of the 4 T/C routes, as published by the Baltic Exchange on January 3, 2018 plus 12%, for the excess period commencing from January 3, 2018.
9 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group.
10 The compensation for the overlapping period from November 20, 2017 to December 6, 2017, which is beyond the maximum contractual period, is still pending to be agreed between Owners and Clearlake Shipping Pte. Ltd., Singapore.
11 The charter rate was US$5,150 for the first fifteen (15) days of the charter period.
12 Charterers have agreed to pay the weighted average of the 5 T/C routes, as published by the Baltic Exchange on January 2, 2018 plus 10%, for the excess period commencing from December 29, 2017.


Summary of Selected Financial & Other Data (unaudited)
Three months ended December 31, Year ended December 31,
2017 2016 2017 2016
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
Time charter revenues$48,936$28,020$161,897$114,259
Voyage expenses 3,020 1,387 8,617 13,826
Vessel operating expenses 24,021 20,863 90,358 85,955
Net loss (436,932) (23,256) (511,714) (164,237)
Net loss attributed to common stockholders (438,374) (24,698) (517,483) (170,006)
FLEET DATA
Average number of vessels 50.3 46.0 49.6 45.2
Number of vessels 50.0 46.0 50.0 46.0
Weighted average age of vessels 8.4 8.2 8.4 8.2
Ownership days 4,624 4,232 18,119 16,542
Available days 4,615 4,215 17,890 16,447
Operating days 4,562 4,210 17,566 16,354
Fleet utilization 98.9% 99.9% 98.2% 99.4%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1)$9,949$6,319$8,568 $6,106
Daily vessel operating expenses (2)$5,195$4,930$4,987 $5,196
_____________________
(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.

Non-GAAP Measures

This press release includes a discussion of net loss and loss per share adjusted for impairment losses as identified in the reconciliations provided below. The Company believes that discussion of these additional non-GAAP measures provides investors with meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance. The following shows the difference between net loss to adjusted net loss, and loss per share to adjusted loss per share for the three months ended December 31, 2017 and 2016 (in thousands, except per share amounts):

Three months ended December 31,
2017 2016
Adjusted net loss and net loss attributed to common stockholders
Net loss$ (436,932)$ (23,256)
Impairment loss 422,466 -
Adjusted net loss$ (14,466)$ (23,256)
Dividends on series B preferred shares (1,442) (1,442)
Adjusted net loss attributed to common stockholders$ (15,908)$ (24,698)
Adjusted loss per share
Loss per common share, basic and diluted$ (4.28)$ (0.31)
Impairment loss 4.13 -
Adjusted loss per share, basic and diluted$ (0.15)$ (0.31)


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 Thursday, February 22, 2018.

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 13675888.

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 December 31, Year ended December 31,
2017 2016 2017 2016
(audited)
REVENUES:
Time charter revenues$48,936$28,020$161,897$114,259
EXPENSES:
Voyage expenses 3,020 1,387 8,617 13,826
Vessel operating expenses 24,021 20,863 90,358 85,955
Depreciation and amortization of deferred charges 21,920 20,638 87,003 81,578
General and administrative expenses 8,157 6,792 26,332 25,510
Management fees to related party 542 384 1,883 1,464
Impairment loss 422,466 - 442,274 -
Insurance recoveries, net of other loss 482 - (10,879) -
Gain on contract termination - (5,500) - (5,500)
Other (income)/loss 9 (275) 296 (253)
Operating loss(431,681) (16,269) (483,987) (88,321)
OTHER INCOME / (EXPENSES):
Interest and finance costs (6,754) (5,640) (26,628) (21,949)
Interest and other income 1,480 773 4,508 2,410
Loss from equity method investments 23 (2,120) (5,607) (56,377)
Total other expenses, net (5,251) (6,987) (27,727) (75,916)
Net loss$(436,932)$(23,256)$(511,714)$(164,237)
Dividends on series B preferred shares (1,442) (1,442) (5,769) (5,769)
Net loss attributed to common stockholders (438,374) (24,698) (517,483) (170,006)
Loss per common share, basic and diluted$(4.28)$(0.31)$(5.41)$(2.11)
Weighted average number of common shares, basic and diluted 102,394,183 80,653,373 95,731,093 80,441,517
Three months ended December 31, Year ended December 31,
2017 2016 2017 2016
(audited)
Net loss$(436,932)$(23,256)$(511,714)$(164,237)
Other comprehensive income/(loss) (Actuarial gain/(loss)) 130 (61) 109 (84)
Comprehensive loss$(436,802)$(23,317)$(511,605)$(164,321)



CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands of U.S. Dollars)
2017 2016*
ASSETS (unaudited)
Cash and cash equivalents $40,227$98,142
Other current assets 98,534 17,174
Advances for vessels under construction and acquisitions and other vessel costs - 46,863
Vessels, net of depreciation 1,053,578 1,403,912
Other fixed assets, net 22,650 23,114
Restricted cash 25,582 23,000
Due from related parties, non-current - 45,417
Investments in related parties 3,249 6,014
Other non-current assets 2,902 5,027
Total assets $1,246,722$1,668,663
LIABILITIES AND STOCKHOLDERS' EQUITY
Long-term debt, net of deferred financing costs$601,384$598,181
Other liabilities 20,580 13,893
Total stockholders' equity 624,758 1,056,589
Total liabilities and stockholders' equity $1,246,722$1,668,663
* The balance sheet data have been derived from the audited consolidated financial statements at that date.


OTHER FINANCIAL DATA (unaudited)
Three months ended December 31, Year ended December 31,
2017 2016 2017 2016
(audited)
Net Cash provided by / (used in) operating activities $12,241$(2,392)$23,413$(20,998)
Net Cash provided by / (used in) investing activities 13,351 4,676 (152,333) (41,619)
Net Cash provided by / (used in) financing activities $(22,484)$(12,524)$73,587$(9,459)

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.

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