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Diana Shipping Inc. Reports Financial Results for the First Quarter Ended March 31, 2013

ATHENS, Greece, May 22, 2013 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX), a global shipping company specializing in the ownership and operation of dry bulk vessels, today reported a net loss of $3.2 million for the first quarter of 2013, compared to net income of $20.0 million reported in the first quarter of 2012. The results for the 2013 first quarter included a loss of $3.3 million on the Company's investment in Diana Containerships Inc., arising from a non-cash impairment recorded by Diana Containerships related to the sale of certain older container vessels.

Time charter revenues were $42.6 million for the first quarter of 2013, compared to $57.6 million for the same period of 2012, 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; Polymnia, delivered in November 2012; Myrto, delivered in January 2013; and Maia, delivered in February 2013.

Fleet Employment Profile (As of May 21, 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 DANAE A $15,600 5.00% Hyundai Merchant
Marine Co., Ltd.,
Seoul, South Korea
18-Apr-11 10-Mar-13 1,2
2001 75,106 $8,250 5.00% Intermare Transport
GmbH, Hamburg
10-Mar-13 10-Sep-14 - 10-Jan-15
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 $12,250 5.00% Morgan Stanley
Capital Group Inc.
18-Dec-11 29-Jan-13 3,4
2001 75,311 $8,000 5.00% Intermare Transport
GmbH, Hamburg
29-Jan-13 29-Jul-14 - 29-Jan-15
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 $19,500 4.75% Resource Marine
Pte., Ltd, Singapore
11-Dec-10 11-Nov-13 - 11-Feb-14 5
2001 75,336
6 OCEANIS A $9,250 5.00% Ultrabulk A/S,
Copenhagen,
Denmark
14-Aug-12 14-Jan-14 - 14-Jul-14
2001 75,211
7 THETIS B $10,500 5.00% EDF Trading Limited,
UK
22-Feb-12 22-Aug-13 - 22-Jun-14 6
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 $12,250 5.00% Louis Dreyfus
Commodities Suisse
S.A., Geneva
11-Oct-11 11-Aug-13 - 11-Dec-13
2005 73,691
10 CLIO B $10,750 5.00% Cargill International
S.A., Geneva
22-Feb-12 22-Aug-13 - 22-Feb-14
2005 73,691
11 NAIAS B $9,250 5.00% Ultrabulk A/S,
Copenhagen,
Denmark
2-Sep-12 2-Feb-14 - 2-Aug-14
2006 73,546
12 ARETHUSA B $7,300 5.00% Cargill International
S.A., Geneva
22-Nov-12 22-May-14 22-Nov-14 7
2007 73,593
13 ERATO C $12,200 5.00% Hyundai Merchant
Marine Co., Ltd.,
Seoul, South Korea
26-Nov-11 9-Jan-13
2004 74,444 $6,500 5.00% Cargill International
S.A., Geneva
9-Jan-13 9-Jul-14 - 9-Jan-15
14 CORONIS C $10,600 5.00% EDF Trading Limited,
UK
12-Mar-12 27-Nov-13 - 27-Jun-14
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 $10,900 5.00% STX Panocean Co.,
Ltd., Seoul
2-May-12 17-Apr-13 8
2005 76,225 $9,700 3.75% Rio Tinto Shipping
Pty, Ltd., Melbourne
17-Apr-13 2-Mar-14 - 17-May-14
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 E $10,900 5.00% Glencore Grain B.V.,
Rotterdam
27-Feb-13 12-Aug-14 - 27-Feb-15
2009 82,193
19 MYRTO E $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 $7,000 5.00% NCS Shipping Fareast
Company Limited,
British Virgin Islands
26-Dec-12 13-Feb-13 9
2010 93,193 $7,250 5.00% ADM International
Sarl, Rolle,
Switzerland
22-Feb-13 7-Aug-14 - 22-Feb-15
21 AMPHITRITE $10,000 5.00% Bunge S.A., Geneva 15-Aug-12 31-May-14 - 30-Oct-14 10
2012 98,697
22 POLYMNIA $8,000 5.00% Sino East
Transportation Ltd,
Hong Kong
21-Nov-12 7-Jan-13
2012 98,704 $7,600 5.00% Augustea Bunge
Maritime Limited,
Malta
16-Jan-13 16-Jul-14 - 16-Jan-15 11
Capesize Bulk Carriers
23 NORFOLK $74,750 3.75% Corus UK Limited 12-Feb-08 16-Jan-13 12
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 TAMOU $9,000 5.00% RWE Supply &
Trading GmbH, Essen
15-Jun-13 30-Jun-13 13,14
(tbr BALTIMORE) $15,000 5.00% 1-Jul-13 1-Jul-16 - 1-Jan-17
2005 177,243
26 SALT LAKE CITY $13,000 5.00% Morgan Stanley
Capital Group Inc.
11-Aug-12 11-Jun-14 - 11-Dec-14
2005 171,810
27 SIDERIS GS F $30,500 5.00% BHP Billiton
Marketing AG
16-Oct-10 14-Mar-13 15
2006 174,186 $13,500 4.75% Cargill International
S.A., Geneva
14-Mar-13 14-Dec-14 - 14-Jun-15
28 SEMIRIO F $17,350 5.00% Cargill International
S.A., Geneva
30-May-11 19-Mar-13
2007 174,261 $14,000 4.75% 19-Mar-13 19-Jan-15 - 19-Jun-15
29 BOSTON F $14,000 5.00% Morgan Stanley
Capital Group Inc.
29-Oct-11 29-Aug-13 - 29-Dec-13 16
2007 177,828
30 HOUSTON F $55,000 4.75% Shagang Shipping Co. 3-Nov-09 3-Oct-14 - 3-Jan-15 17
2009 177,729
31 NEW YORK F $48,000 3.75% Nippon Yusen Kaisha,
Tokyo (NYK)
3-Mar-10 3-Jan-15 - 3-May-15
2010 177,773
Newcastlemax Bulk Carriers
32 LOS ANGELES G $18,000 5.00% EDF Trading Limited,
UK
9-Feb-12 9-Dec-15 - 9-Apr-16
2012 206,104
33 PHILADELPHIA G $18,000 5.00% EDF Trading Limited,
UK
17-May-12 17-Jan-16 - 17-Jul-16
2012 206,040
Vessels Under Construction
34 HULL H2528 H - - - - - - - 18
2013 76,000
35 HULL H2529 H - - - - - - - 18
2013 76,000
36 HULL H2548 I - - - - - - - 18
2016 208,500
37 HULL H2549 I - - - - - - - 18
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 Vessel off-hire for unscheduled maintenance from March 4, 2013 to March 6, 2013.
2 Hyundai Merchant Marine Co. Ltd., Seoul, South Korea, has agreed to compensate the owners for the early redelivery of the vessel on March 10, 2013 until the minimum agreed redelivery date, March 18, 2013.
3 Vessel off-hire for drydocking from September 26, 2012 to October 15, 2012.
4 Vessel off-hire for unscheduled maintenance from October 18, 2012 to November 30, 2012.
5 Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank Limited.
6 Vessel off-hire from September 23, 2012 to October 3, 2012.
7 Vessel off-hire for unscheduled maintenance from April 14, 2013 to April 16, 2013.
8 Vessel off-hire for drydocking from November 27, 2012 to December 10, 2012.
9 Charter includes a one time gross ballast bonus payment of US$390,000.
10 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.
11 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.
12 Since September 2010 charterers' name has changed to Tata Steel UK, Limited.
13 Expected date of delivery to the buyers by the end of May 2013 (based on latest information received by the sellers).
14 Estimated date of delivery to the charterers.
15 Since October 25, 2012 charterers have changed to BHP Billiton Singapore Pte Ltd.
16 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.
17 Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group Co.
18 Year of delivery and dwt are based on shipbuilding contract.
Summary of Selected Financial & Other Data (unaudited)
Three months ended March 31,
2013 2012
INCOME STATEMENT DATA (in thousands of US Dollars):
Time charter revenues $ 42,601 $ 57,601
Voyage expenses 2,199 2,178
Vessel operating expenses 17,957 14,657
Net income / (loss) (3,183) 19,961
FLEET DATA
Average number of vessels 31.2 25.4
Number of vessels 32.0 26.0
Weighted average age of vessels 6.1 6.0
Ownership days 2,806 2,313
Available days 2,806 2,283
Operating days 2,772 2,278
Fleet utilization 98.8% 99.8%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 14,398 $ 24,276
Daily vessel operating expenses (2) $ 6,400 $ 6,337
(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 22, 2013.

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 412822.

About the Company

Diana Shipping Inc. is a leading global provider of shipping transportation services through the ownership and operation 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, vessels 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 INCOME / (LOSS)
Three months ended March 31,
2013 2012
REVENUES:
Time charter revenues $ 42,601 $ 57,601
Other revenues 447 568
EXPENSES:
Voyage expenses 2,199 2,178
Vessel operating expenses 17,957 14,657
Depreciation and amortization of deferred charges 15,549 14,588
General and administrative expenses 5,464 6,118
Foreign currency gains (74) (394)
Operating income 1,953 21,022
OTHER INCOME / (EXPENSES):
Interest and finance costs (2,064) (1,543)
Interest income 200 378
Loss from derivative instruments (4) (201)
Income / (loss) from investment in Diana Containerships Inc. (3,268) 305
Total other expenses, net (5,136) (1,061)
Net Income / (loss) (3,183) 19,961
Earnings / (loss) per common share, basic and diluted $ (0.04) $ 0.25
Weighted average number of common shares, basic and diluted 81,059,313 81,226,051
Three months ended March 31,
2013 2012
Net income / (loss) $ (3,183) $ 19,961
Other comprehensive loss (Actuarial loss) (98) --
Comprehensive income / (loss) $ (3,281) $ 19,961
CONDENSED CONSOLIDATED BALANCE SHEET DATA (unaudited)
(in thousands of U.S. Dollars)
March 31, 2013 December 31,
2012
ASSETS
Cash and cash equivalents $ 412,330 $ 446,624
Other current assets 18,773 20,362
Advances for vessels under construction and acquisitions and other vessel costs 13,238 11,502
Vessels' net book value 1,243,880 1,211,138
Other fixed assets, net 23,058 22,774
Other non-current assets 25,425 30,402
Total assets $ 1,736,704 $ 1,742,802
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities, including current portion of long-term debt $ 60,512 $ 61,477
Long-term debt, net of current portion and deferred financing costs 410,185 414,080
Other non-current liabilities 842 821
Total stockholders' equity 1,265,165 1,266,424
Total liabilities and stockholders' equity $ 1,736,704 $ 1,742,802
OTHER FINANCIAL DATA (unaudited)
Three months ended March 31,
2013 2012
Net Cash provided by Operating Activities $ 17,394 $ 36,443
Net Cash used in Investing Activities (47,680) (61,734)
Net Cash provided by / (used in) Financing Activities (4,008) 50,639

CONTACT: Corporate Contact: Ioannis Zafirakis Director, Executive Vice-President 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.