Diana Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2009
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ATHENS, Greece, Nov. 10, 2009 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $28.7 million for the third quarter of 2009. This compared to net income of $57.6 million reported in the third quarter of 2008.
Voyage and time charter revenues were $58.2 million for the third quarter of 2009, compared to $87.4 million for the same period of 2008, due to a decrease in prevailing time charter rates and increased off-hire and drydock days.
Net income for the nine months ended September 30, 2009 amounted to $93.9 million, compared to net income of $167.5 million for the same period of 2008. Voyage and time charter revenues were $180.7 million for the nine months ended September 30, 2009, compared to $253.1 million for the same period of 2008.
Chairman and Chief Executive Officer's Comments
"Diana Shipping Inc. has again produced strong results during the third quarter of 2009. We have delivered a profitable quarter despite the continued turbulent economic climate. The Company's cash position has been strengthened substantially by our recent results, and our debt level remains one of the lowest among publicly trading shipping companies. We have further enhanced our earning potential by recently adding a 20th vessel to our fleet with an attractive charter, and are expecting delivery of an additional Capesize vessel with a profitable charter in February 2010," said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc.
Mr. Palios further stated, "We believe Diana Shipping remains well-positioned to manage through the current difficult period and to build value for the future. Our intention is to continue pursuing our strategy to take advantage of the growth opportunities presented during this low phase of the shipping cycle. Diana Shipping intends to purchase attractively priced vessels in a gradual and disciplined manner over the next two years, using our robust balance sheet and cash position, together with new debt as appropriate, to generate value for our shareholders."
Fleet Employment Profile (As of November 10, 2009)
Currently Diana's fleet is employed as follows:
Gross
Rate Redelivery
Sister Year (USD per date to
Vessel Ships* Built DWT day) Charterer owners**
PANAMAX VESSELS
---------------
Coronis C 2006 74,381 $14,000 TPC Korea Co. Feb. 26, 2010 -
Ltd., Seoul Apr. 26, 2010
Erato C 2004 74,444 $15,000 Cargill
International Nov. 27, 2009 -
S.A., Geneva Feb. 27, 2010
Naias B 2006 73,546 $19,000 J. Aron &
Company, Jul. 24, 2010 -
New York Sep. 24, 2010
Clio B 2005 73,691 $11,000 Cargill
International Dec. 26, 2009 -
S.A., Geneva Mar. 26, 2010
Calipso B 2005 73,691 $9,400 Cargill
International Dec. 24, 2009 -
S.A., Geneva Mar. 24, 2010
Protefs B 2004 73,630 $59,000 Hanjin
Shipping Co. Aug. 18, 2011 -
Ltd., Seoul Nov. 18, 2011
Thetis B 2004 73,583 $10,500 Cargill
International Dec. 12, 2009 -
S.A., Geneva Mar. 12, 2010
Dione A 2001 75,172 $12,000 Louis Dreyfus
Commodities Jun. 1, 2010 -
S.A., Geneva Sep. 1, 2010
Danae A 2001 75,106 $12,000 Augustea
Atlantica Srl, Jan. 23, 2011 -
Naples Apr. 22, 2011
Oceanis A 2001 75,211 $18,000 Bunge S.A., Jul. 6, 2010 -
Geneva Sep. 21, 2010
Triton A 2001 75,336 $17,000 Intermare
Transport
GmbH, Hamburg, Sep. 10, 2010 -
Germany Nov. 25, 2010
Alcyon A 2001 75,247 $34,500 Cargill
International Nov. 21, 2012 -
S.A., Geneva Feb. 21, 2013
Nirefs A 2001 75,311 $60,500 Cosco Bulk
Carrier Co. Feb. 3, 2010 -
Ltd. Apr. 3, 2010
CAPESIZE VESSELS
----------------
Norfolk - 2002 164,218 $74,750 Corus UK Jan. 12, 2013 -
Limited Mar. 12, 2013
Aliki - 2005 180,235 $45,000 Cargill
International Mar. 1, 2011 -
S.A., Geneva Jun. 1, 2011(3)
Salt - 2005 171,810 $55,800 Refined
Lake Success Aug. 28, 2012 -
City Limited Oct. 28, 2012
Sideris D 2006 174,186 $39,000 BHP Billiton
GS Marketing AG Nov. 30, 2009
$36,000 BHP Billiton Oct. 15, 2010 -
Marketing AG Jan. 15, 2011(3)
Semirio D 2007 174,261 $31,000 BHP Billiton Apr. 30, 2011 -
Marketing AG Jul. 30, 2011(3)
Boston D 2007 177,828 $52,000 BHP Billiton Sep. 28, 2011 -
Marketing AG Dec. 28, 2011(1)
Houston D 2009 177,729 $55,000 Shagang Oct. 3, 2014 -
(7) Shipping Co.(8) Jan. 3, 2015
VESSELS UNDER CONSTRUCTION
--------------------------
New D 2010 177,000 $48,000 Nippon Yusen
York (2),(4) Kaisha, Tokyo Jan. 31, 2015 -
(4),(5), (NYK) May 31, 2015(2)
(6)
---------
Total: 2,365,616
---------
* Each dry bulk carrier is a "sister ship", or closely similar, to
other dry bulk carriers that have the same letter.
** 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) The charterer has the option to employ the vessel for a further
11-13 month period. The optional period, if exercised, must be
declared on or before the end of the 42nd month of employment and
can only commence at the end of the 48th month, at the daily time
charter rate of US$52,000.
(2) Based on expected date of delivery from the yard to the owners.
(3) The charterer has the option to employ the vessel for a further
11-13 month period. The optional period, if exercised, must be
declared on or before the end of the 42nd month of employment and
can only commence at the end of the 48th month, at the daily time
charter rate of US$48,500.
(4) The gross rate will vary as follows: US$50,000 per day for
delivery between October 1, 2009 and January 31, 2010 or
US$48,000 per day for delivery between February 1, 2010 and
April 30, 2010.
(5) Latest possible delivery to owners during second quarter of 2010.
(6) Hull H1107.
(7) Hull H1138.
(8) A guaranteed nominee of the Jiangsu Shagang Shipping Group Co.
Summary of Selected Financial & Other Data
Summary of Selected Financial & Other Data
Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 2009 2008
-------- -------- -------- --------
(unaudited)
INCOME STATEMENT DATA
(in thousands of US Dollars):
Voyage and time
charter revenues $ 58,223 $ 87,408 $180,702 $253,052
Voyage expenses 2,778 3,528 9,069 10,168
Vessel operating expenses 10,310 10,908 30,059 29,980
Net income 28,660 57,591 93,909 167,539
FLEET DATA
Average number of vessels 19.0 19.0 19.0 18.9
Number of vessels 19.0 19.0 19.0 19.0
Weighted average age of
fleet (in years) 5.0 4.0 5.0 4.0
Ownership days 1,748 1,748 5,187 5,165
Available days 1,713 1,740 5,132 5,157
Operating days 1,708 1,739 5,078 5,151
Fleet utilization 99.7% 99.9% 98.9% 99.9%
AVERAGE DAILY RESULTS
Time charter equivalent
(TCE) rate(1) $ 32,367 $ 48,207 $ 33,444 $ 47,098
Daily vessel operating
expenses(2) $ 5,898 $ 6,240 $ 5,795 $ 5,804
(1) Time charter equivalent rates, or TCE rates, are defined as our
voyage and 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 Standard Time) on Tuesday, November 10, 2009.
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 1-877-870-4399 (for U.S.-based callers) or 1-706-679-6101 (for international callers), and providing the operator with the Conference ID number 35991230.
A replay of the webcast will be available soon after the completion of the call and will be accessible on www.dianashippinginc.com. A telephone replay will be available by dialing 1-800-642-1687 (for U.S.-based callers) or 1-706-645-9291 (for international callers), and providing the Conference ID number 35991230.
About the Company
Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting 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.
DIANA SHIPPING INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars,
except share and per share data
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES:
Voyage and time
charter revenues $ 58,223 $ 87,408 $ 180,702 $ 253,052
EXPENSES:
Voyage expenses 2,778 3,528 9,069 10,168
Vessel operating
expenses 10,310 10,908 30,059 29,980
Depreciation and
amortization of
deferred charges 11,195 11,034 33,031 32,243
General and
administrative
expenses 4,402 3,267 12,683 10,725
Foreign currency
losses (gains) (89) (248) (386) (354)
---------- ---------- ---------- ----------
Operating income 29,627 58,919 96,246 170,290
---------- ---------- ---------- ----------
OTHER INCOME
(EXPENSES):
Interest and
finance costs (732) (1,384) (2,428) (4,400)
Interest Income 277 56 711 704
Gain / (loss)
from
financial
instruments (512) -- (620) --
Insurance
settlement
for vessel
un-repaired
damages -- -- -- 945
---------- ---------- ---------- ----------
Total other income
(expenses), net (967) (1,328) (2,337) (2,751)
---------- ---------- ---------- ----------
Net Income $ 28,660 $ 57,591 $ 93,909 $ 167,539
========== ========== ========== ==========
Less: Dividends
paid on
restricted stock -- (69) -- (178)
---------- ---------- ---------- ----------
Net income available
to common
shareholders $ 28,660 $ 57,522 $ 93,909 $ 167,361
========== ========== ========== ==========
Earnings/(losses)
per common share,
basic $ 0.36 $ 0.77 $ 1.21 $ 2.25
========== ========== ========== ==========
Earnings/(losses)
per common share,
diluted $ 0.36 $ 0.77 $ 1.21 $ 2.25
========== ========== ========== ==========
Weighted average
number of common
shares, basic 80,415,905 74,375,000 77,529,896 74,375,000
========== ========== ========== ==========
Weighted average
number of common
shares, diluted
80,517,771 74,377,885 77,615,311 74,377,694
========== ========== ========== ==========
BALANCE SHEET DATA
Sept. 30, Dec. 31,
2009 2008
--------- ---------
ASSETS (unaudited)
------
Cash and cash equivalents 251,638 62,033
Other current assets 4,108 6,521
Advances for vessels under construction and
acquisitions and other vessel costs 69,986 27,199
Vessels' net book value 927,923 960,431
Other fixed assets, net 118 136
Investments in time deposits 7,600 --
Other non-current assets 1,905 886
Prepaid charter revenue, non-current portion 15,000 --
--------- ---------
Total assets 1,278,278 1,057,206
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities 77,838 20,012
Long-term debt 214,049 238,094
Deferred revenue, non current portion 13,975 22,502
Other non-current liabilities 1,590 1,122
Total stockholders' equity 970,826 775,476
--------- ---------
Total liabilities and stockholders' equity 1,278,278 1,057,206
========= =========
OTHER FINANCIAL DATA
Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited)
Net cash from
operating activities $ 41,954 $ 67,266 $ 111,430 $ 198,127
Net cash from /
(used in) investing
activities (14,088) (260) (50,436) (108,389)
Net cash from /
(used in) financing
activities 6,035 (84,950) 128,611 (101,703)
CONTACT: Diana Shipping Inc.
Ioannis Zafirakis, Director, Executive Vice-President
and Secretary
+ 30-210-9470100
izafirakis@dianashippinginc.com
Comm-Counsellors, LLC
Investor and Media Relations:
Edward Nebb
+ 1-203-972-8350
enebb@optonline.net
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