ATHENS, Greece, July 29, 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 $5.7 million and net loss available to common stockholders of $7.2 million for the second quarter of 2014, compared to a net loss and net loss available to common stockholders of $5.2 million reported in the second quarter of 2013.
Time charter revenues were $43.2 million for the second quarter of 2014, compared to $40.0 million for the same quarter of 2013. This increase was mainly due to the increase in ownership days resulting from the enlargement of our fleet and was partly offset by decreased time charter rates.
Net loss and net loss available to common stockholders for the six months ended June 30, 2014 amounted to $11.8 million and $14.0 million, respectively, compared to a net loss and net loss available to common stock holders of $8.4 million for the same period of 2013. Time charter revenues were $84.3 million for the six months ended June 30, 2014, compared to $82.6 million for the same period of 2013.
| Fleet Employment Profile (As of July 28, 2014) | ||||||||
| Currently Diana Shipping Inc.'s fleet is employed as follows: | ||||||||
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|
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-Aug-14 - 19-Dec-14 | 1 |
| 2001 75,172 | ||||||||
| 3 | NIREFS | A | $8,000 | 5.00% | Intermare Transport GmbH, Hamburg | 29-Jan-13 | 29-Aug-14 - 29-Jan-15 | 1 |
| 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 | 19-Jun-14 | |
| $9,000 | 5.00% | Glencore Grain B.V., Rotterdam | 19-Jun-14 | 19-Jan-15 - 19-Apr-15 | ||||
| 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 |
| 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 | |
| 2005 73,691 | ||||||||
| 11 | NAIAS | B | $9,250 | 5.00% | Ultrabulk A/S, Copenhagen, Denmark | 2-Sep-12 | 31-Jul-14 | 1 |
| 2006 73,546 | ||||||||
| 12 | ARETHUSA | B | $7,300 | 5.00% | Cargill International S.A., Geneva | 22-Nov-12 | 16-Aug-14 - 22-Nov-14 | 1 |
| 2007 73,593 | ||||||||
| 13 | ERATO | C | $6,500 | 5.00% | Cargill International S.A., Geneva | 9-Jan-13 | 14-Aug-14 - 9-Jan-15 | 1,4 |
| 2004 74,444 | ||||||||
| 14 | CORONIS | C | $10,600 | 5.00% | EDF Trading Limited, UK | 12-Mar-12 | 12-Jun-14 | |
| $11,550 | 5.00% | Oberon Holdings Limited | 12-Jun-14 | 12-May-15 - 12-Aug-15 | ||||
| 2006 74,381 | ||||||||
| 15 | MELITE | D | $7,750 | 5.00% | Cargill International S.A., Geneva | 28-Dec-12 | 10-Aug-14 - 1-Jan-15 | 1 |
| 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 | 19-Jul-14 | ||
| $11,350 | 4.75% | Cargill International S.A., Geneva | 19-Jul-14 | 19-Jun-15 - 19-Sep-15 | ||||
| 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 - 30-Aug-14 | 1 |
| 2009 82,193 | ||||||||
| 22 | MYRSINI | F | $15,500 | 4.75% | Clearlake Shipping Pte. Ltd., Singapore | 12-Feb-14 | 15-Feb-15 - 10-May-15 | 5 |
| 2010 82,117 | ||||||||
| 23 | MYRTO | F | $9,000 | 5.00% | Cargill International S.A., Geneva | 25-Jan-13 | 25-Aug-14 - 25-Jan-15 | 1 |
| 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 | 15-Aug-14 | 6 | |
| $11,300 | 15-Aug-14 | 15-Jul-15 - 15-Oct-15 | ||||||
| 2012 98,697 | ||||||||
| 26 | POLYMNIA | $7,600 | 5.00% | Bunge S.A., Geneva | 16-Jan-13 | 16-Aug-14 - 16-Jan-15 | 1,7,8 | |
| 2012 98,704 | ||||||||
| Capesize Bulk Carriers | ||||||||
| 27 | NORFOLK | $10,700 | 4.50% | Clearlake Shipping Pte. Ltd., Singapore | 16-Jan-13 | 16-Aug-14 - 16-Jan-15 | 1,5 | |
| 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 | 9 | |
| 2005 177,243 | ||||||||
| 30 | SALT LAKE CITY | $13,000 | 5.00% | Morgan Stanley Capital Group Inc. | 11-Aug-12 | 1-Nov-14 - 11-Dec-14 | 1 | |
| 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 | 5 |
| 2007 177,828 | ||||||||
| 34 | HOUSTON | G | $20,500 | 4.75% | Clearlake Shipping Pte. Ltd., Singapore | 3-Dec-13 | 19-Oct-14 - 18-Feb-15 | 5,10 |
| 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 | ||||||||
| 37 | HULL No. BC18.0-50 | $25,250 | 5.00% | RWE Supply & Trading GmbH, Essen | 5-Aug-14 | 5-Feb-16 - 5-Jun-16 | 11 | |
| (tbn. G. P. ZAFIRAKIS) | ||||||||
| 2014 180,000 | ||||||||
| Newcastlemax Bulk Carriers | ||||||||
| 38 | LOS ANGELES | H | $18,000 | 5.00% | EDF Trading Limited, UK | 9-Feb-12 | 9-Dec-15 - 9-Apr-16 | |
| 2012 206,104 | ||||||||
| 39 | 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 | ||||||||
| 40 | HULL DY6006 | - | - | - | - | - - - | 12 | |
| 2016 82,000 | ||||||||
| 41 | HULL H2548 | I | - | - | - | - | - - - | 12 |
| 2016 208,500 | ||||||||
| 42 | HULL H2549 | I | - | - | - | - | - - - | 12 |
| 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 from April 21, 2014 to April 23, 2014. | ||||||||
| 3 Vessel off-hire for drydocking from April 23, 2014 to May 22, 2014. | ||||||||
| 4 Vessel off-hire for unscheduled maintenance from May 20, 2014 to May 22, 2014. | ||||||||
| 5 Clearlake Shipping Pte. Ltd., Singapore is a member of the Gunvor Group. | ||||||||
| 6 On May 13, 2014, the charterer exercised 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. | ||||||||
| 7 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. | ||||||||
| 8 Prior to October 12, 2013, chartered to Augustea Bunge Maritime Limited, Malta. | ||||||||
| 9 Vessel off-hire for drydocking from May 11, 2014 to May 20, 2014. | ||||||||
| 10 Vessel currently off-hire for drydocking. | ||||||||
| 11 Estimated date. | ||||||||
| 12 Year of delivery and dwt are based on shipbuilding contract. | ||||||||
| Summary of Selected Financial & Other Data (unaudited) | ||||
| Three months ended June 30, | Six months ended June 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| STATEMENT OF OPERATIONS DATA (in thousands of US Dollars): | ||||
| Time charter revenues | $ 43,150 | $ 40,005 | $ 84,295 | $ 82,605 |
| Voyage expenses | 2,241 | 2,093 | 4,640 | 4,291 |
| Vessel operating expenses | 21,934 | 19,569 | 42,590 | 37,527 |
| Net loss | (5,748) | (5,246) | (11,775) | (8,430) |
| Net loss available to common stockholders | (7,190) | (5,246) | (13,970) | (8,430) |
| FLEET DATA | ||||
| Average number of vessels | 37.5 | 32.2 | 37.0 | 31.7 |
| Number of vessels | 38 | 33.0 | 38 | 33.0 |
| Weighted average age of vessels | 6.8 | 6.4 | 6.8 | 6.4 |
| Ownership days | 3,417 | 2,930 | 6,697 | 5,736 |
| Available days | 3,379 | 2,930 | 6,657 | 5,736 |
| Operating days | 3,371 | 2,906 | 6,609 | 5,678 |
| Fleet utilization | 99.8% | 99.2% | 99.3% | 99.0% |
| AVERAGE DAILY RESULTS | ||||
| Time charter equivalent (TCE) rate (1) | $ 12,107 | $ 12,939 | $ 11,966 | $ 13,653 |
| Daily vessel operating expenses (2) | $ 6,419 | $ 6,679 | $ 6,360 | $ 6,542 |
| (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 Tuesday, July 29, 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 13585567.
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 June 30, | Six months ended June 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| REVENUES: | ||||
| Time charter revenues | $ 43,150 | $ 40,005 | $ 84,295 | $ 82,605 |
| Other revenues | -- | -- | -- | 447 |
| EXPENSES: | ||||
| Voyage expenses | 2,241 | 2,093 | 4,640 | 4,291 |
| Vessel operating expenses | 21,934 | 19,569 | 42,590 | 37,527 |
| Depreciation and amortization of deferred charges | 17,340 | 15,919 | 34,214 | 31,468 |
| General and administrative expenses | 6,285 | 5,479 | 12,533 | 10,943 |
| Foreign currency gain | (85) | (317) | (150) | (391) |
| Operating income / (loss) | (4,565) | (2,738) | (9,532) | (786) |
| OTHER INCOME / (EXPENSES): | ||||
| Interest and finance costs | (2,103) | (2,025) | (4,063) | (4,089) |
| Interest and other income | 939 | 150 | 1,844 | 350 |
| Income / (loss) from derivative instruments | 72 | (30) | 68 | (33) |
| Loss from investment in Diana Containerships Inc. | (91) | (603) | (92) | (3,872) |
| Total other expenses, net | (1,183) | (2,508) | (2,243) | (7,644) |
| Net loss | (5,748) | (5,246) | (11,775) | (8,430) |
| Earnings allocated to preferred stock | (1,442) | -- | (2,195) | -- |
| Net loss attributed to common stockholders | (7,190) | (5,246) | (13,970) | (8,430) |
| Loss per common share, basic and diluted | $ (0.09) | $ (0.06) | $ (0.17) | $ (0.10) |
| Weighted average number of common shares, basic and diluted | 82,113,536 | 81,382,997 | 81,924,654 | 81,222,049 |
| Three months ended June 30, | Six months ended June 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Net loss | $ (5,748) | $ (5,246) | $ (11,775) | $ (8,430) |
| Other comprehensive loss (Actuarial loss) | -- | -- | -- | (98) |
| Comprehensive loss | $ (5,748) | $ (5,246) | $ (11,775) | $ (8,528) |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA (unaudited) | ||
| (in thousands of U.S. Dollars) | ||
|
|
||
| June 30, 2014 | December 31, 2013 | |
| ASSETS | ||
| Cash and cash equivalents | $ 309,106 | $ 240,633 |
| Other current assets | 14,289 | 11,235 |
| Advances for vessels under construction and acquisitions and other vessel costs | 14,924 | 38,862 |
| Vessels' net book value | 1,349,862 | 1,320,375 |
| Other fixed assets, net | 22,738 | 22,826 |
| Other non-current assets | 67,045 | 68,050 |
| Total assets | $ 1,777,964 | $ 1,701,981 |
|
|
||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities, including current portion of long-term debt | $ 92,646 | $ 62,752 |
| Long-term debt, net of current portion and deferred financing costs | 378,476 | 385,025 |
| Other non-current liabilities | 769 | 812 |
| Total stockholders' equity | 1,306,073 | 1,253,392 |
| Total liabilities and stockholders' equity | $ 1,777,964 | $ 1,701,981 |
| OTHER FINANCIAL DATA (unaudited) | ||||
| Three months ended June 30, | Six months ended June 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Net Cash provided by operating activities | $ 11,163 | $ 16,454 | $ 20,800 | $ 33,848 |
| Net Cash used in investing activities | (19,223) | (52,506) | (38,261) | (100,186) |
| Net Cash provided by / (used in) financing activities | $ 9,760 | $ (932) | $ 85,934 | $ (4,940) |