Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2021

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) reported a net income of $2.8 million for Q2 2021, recovering from a net loss of $10.8 million in Q2 2020. Time charter revenues increased to $47.0 million from $41.0 million year-over-year, attributed to higher average rates despite reduced ownership days due to vessel sales. For the first half of 2021, net income reached $1.5 million, compared to a net loss of $113.6 million in the prior year. Fleet utilization stood at 99.6%.

Positive

• Net income improved to $2.8 million in Q2 2021 from a $10.8 million loss in Q2 2020.
• Time charter revenues increased to $47.0 million from $41.0 million year-over-year.
• Fleet utilization at 99.6%, indicating efficient operations.

Negative

• Ownership days decreased due to the sale of vessels, which may affect future revenue.

ATHENS, Greece, Aug. 03, 2021 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported net income of $2.8 million and net income attributed to common stockholders of $1.4 million for the second quarter of 2021. This compares to a net loss of $10.8 million and net loss attributed to common stockholders of $12.2 million, including a $2.6 million impairment loss, reported in the second quarter of 2020.

Time charter revenues were $47.0 million for the second quarter of 2021, compared to $41.0 million for the same quarter of 2020. The increase in time charter revenues was mainly due to increased average time charter rates that the Company achieved for its vessels during the quarter. This increase was partly offset by decreased revenues due to decreased ownership days compared to last year, resulting from the sale of vessels.

Net income for the six months ended June 30, 2021 amounted to $1.5 million and net loss attributed to common stockholders amounted to $1.4 million. This compares to a net loss of $113.6 million and net loss attributed to common stockholders of $116.5 million, including a $95.7 million impairment loss and $1.1 million loss from sale of vessels, for the same period of 2020. Time charter revenues were $88.1 million for the first half of 2021, compared to $84.7 million for the same period of 2020.

	Fleet Employment Profile (As of August 02, 2021)
	Diana Shipping Inc.’s fleet is employed as follows:
	Vessel	Sister Ships*	Gross Rate (USD Per Day)		Com**		Charterers	Delivery Date to Charterers***	Redelivery Date to Owners****	Notes
	BUILT     DWT
	10 Panamax Bulk Carriers
1	PROTEFS	A	$10,650		5.00	%	Reachy International (HK) Co., Limited	8-Feb-21	10-Mar-22 - 20-May-22
	2004   73,630
2	CALIPSO	A	$10,400		5.00	%	Viterra Chartering B.V., Rotterdam	22-Jan-21	1-Oct-21 - 15-Dec-21
	2005   73,691
-	NAIAS	A	$11,000		4.75	%	Cargill International S.A., Geneva	27-Jan-21	17-May-21
			$25,000		5.00	%	Nasshipping Inc.	17-May-21	21-Jun-21
			$23,250		5.00	%	AS Klaveness Chartering, Oslo	21-Jun-21	19-Jul-21	1
	2006   73,546
3	MELIA		$10,000		5.00	%	Ausca Shipping Limited, Hong Kong	20-Aug-20	11-Jun-21	2
			$25,750		5.00	%	Viterra Chartering B.V., Rotterdam	11-Jun-21	7-Apr-22 - 7-Jun-22
	2005   76,225
4	ARTEMIS		$10,250		5.00	%	Glencore Agriculture B.V., Rotterdam	30-Nov-20	5-Jan-22 - 30-Mar-22
	2006   76,942
5	LETO		$9,000		4.75	%	Cargill International S.A., Geneva	21-May-20	8-Aug-21 - 30-Sep-21	3
	2010   81,297
6	SELINA	B	$11,000		5.00	%	ST Shipping and Transport Pte. Ltd., Singapore	5-Jul-20	7-Aug-21 - 7-Sep-21	3
	2010   75,700
7	MAERA	B	$8,600		5.00	%	Ausca Shipping Limited, Hong Kong	11-Jun-20	8-Aug-21 - 3-Oct-21	3
	2013   75,403
8	ISMENE		$16,500		5.00	%	Tongli Shipping Pte. Ltd.	11-Mar-21	15-Oct-21 - 15-Dec-21
	2013   77,901
9	CRYSTALIA	C	$8,750		5.00	%	Glencore Agriculture B.V., Rotterdam	22-May-20	9-Aug-21 - 30-Sep-21	3
	2014   77,525
10	ATALANDI	C	$9,300		5.00	%	Uniper Global Commodities SE, Düsseldorf	14-Jun-20	10-Aug-21 - 14-Oct-21	3
	2014   77,529
	6 Kamsarmax Bulk Carriers
11	MAIA	D	$11,200		5.00	%	Aquavita International S.A.	31-Jan-20	20-Jun-21	4
			$25,000		5.00	%	Viterra Chartering B.V., Rotterdam	20-Jun-21	1-May-22 - 30-Jun-22
	2009   82,193
12	MYRSINI	D	$11,500		5.00	%	Ausca Shipping Limited, Hong Kong	4-Dec-19	11-May-21
			$27,750		5.00	%	Bocimar International N.V.	11-May-21	15-Oct-21 - 30-Nov-21
	2010   82,117
13	MEDUSA	D	$11,000		4.75	%	Cargill International S.A., Geneva	19-Nov-20	10-Jan-22 - 20-Mar-22
	2010   82,194
14	MYRTO	D	$10,000		4.75	%	Cargill International S.A., Geneva	3-Apr-20	11-Aug-21 - 15-Sep-21	3
	2013   82,131
15	ASTARTE		$11,750		5.00	%	Aquavita International S.A.	18-Jan-20	20-May-21
			$25,000		5.00	%	Mitsui O.S.K. Lines Ltd.	20-May-21	1-Nov-21 - 15-Dec-21
	2013   81,513
16	MAGNOLIA			-	-		-	-	- - -	5
	tbr. LEONIDAS P. C.
	2011   82,165
	5 Post-Panamax Bulk Carriers
17	ALCMENE		$8,500		4.75	%	Cargill International S.A., Geneva	2-Apr-20	28-Jul-21	6
			$25,500		5.00	%	Refined Success Limited	28-Jul-21	30-Oct-21
	2010   93,193
18	AMPHITRITE	E	$10,250		5.00	%	SwissMarine Pte. Ltd., Singapore	21-Mar-20	6-Jun-21
			$30,000		5.00	%	Jera Global Markets Pte. Ltd.	6-Jun-21	2-Jul-21	7
			$30,250		5.00	%	Jera Global Markets Pte. Ltd.	23-Jul-21	6-Sep-21	8
	2012   98,697
19	POLYMNIA	E	$12,100		5.00	%	CLdN Cobelfret SA, Luxembourg	22-Nov-20	15-Oct-21 - 25-Dec-21	9
	2012   98,704
20	ELECTRA	F	$23,500		5.00	%	Refined Success Limited	23-Mar-21	28-Apr-21
			$21,000		5.00	%	Tongli Shipping Pte. Ltd.	28-Apr-21	10-Feb-22 - 10-Apr-22
	2013   87,150
21	PHAIDRA	F	$9,400		5.00	%	Uniper Global Commodities SE, Düsseldorf	29-May-20	15-Jul-21
			$27,000		5.00	%	Refined Success Limited	15-Jul-21	19-Aug-21	10
	2013   87,146
	12 Capesize Bulk Carriers
22	ALIKI		$20,500		5.00	%	Solebay Shipping Cape Company Limited, Hong Kong	18-Mar-21	15-Jan-22 - 15-Mar-22
	2005   180,235
23	BALTIMORE		$13,000		5.00	%	Koch Shipping Pte. Ltd., Singapore	21-Dec-20	11-Aug-21 - 5-Oct-21	3
	2005   177,243
24	SALT LAKE CITY		$13,000		5.00	%	C Transport Maritime Ltd., Bermuda	9-Jan-21	1-Apr-22 - 30-Jun-22
	2005   171,810
25	SEMIRIO	G	$13,500		5.00	%	SwissMarine Pte. Ltd., Singapore	1-Jan-21	5-Oct-21 - 20-Dec-21
	2007   174,261
26	BOSTON	G	$15,300		5.00	%	Oldendorff Carriers GMBH & Co. KG, Lübeck, Germany	7-Jun-19	16-Jun-21
			$25,500		5.00	%	C Transport Maritime Ltd., Bermuda	16-Jun-21	15-Apr-22 - 15-Jun-22
	2007   177,828
27	HOUSTON	G	$12,400		5.00	%	C Transport Maritime Ltd., Bermuda	13-Apr-20	10-Aug-21 - 30-Sep-21	3
	2009   177,729
28	NEW YORK	G	$14,000		5.00	%	EGPN Bulk Carrier Co., Limited, Hong Kong	29-Dec-20	16-Apr-22 - 30-Jun-22
	2010   177,773
29	SEATTLE	H	$12,300		5.00	%	Pacbulk Shipping Pte. Ltd., Singapore	27-Apr-20	1-Oct-21 - 20-Feb-22	11
	2011   179,362
30	P. S. PALIOS	H	$12,050		5.00	%	C Transport Maritime Ltd., Bermuda	24-Mar-20	5-Jun-21
			$26,500		4.75	%	Olam International Limited, Singapore	5-Jun-21	15-Feb-22 - 15-Apr-22
	2013   179,134
31	G. P. ZAFIRAKIS	I	$13,200		5.00	%	Koch Shipping Pte. Ltd., Singapore	31-May-20	1-Oct-21 - 31-Dec-21
	2014   179,492
32	SANTA BARBARA	I	$17,250		4.75	%	Cargill International S.A., Geneva	9-Jan-21	5-Jan-22 - 5-Mar-22
	2015   179,426
33	NEW ORLEANS		$15,500		5.00	%	Nippon Yusen Kabushiki Kaisha	3-Dec-20	25-Jan-22 - 25-Mar-22
	2015   180,960
	4 Newcastlemax Bulk Carriers
34	LOS ANGELES	J	$14,250		5.00	%	Engelhart CTP Freight (Switzerland) SA	6-Jun-20	1-Oct-21 - 31-Dec-21
	2012   206,104
35	PHILADELPHIA	J	$14,500		5.00	%	BHP Billiton Freight Singapore Pte. Ltd	5-Feb-20	22-Apr-21
			$28,500		5.00	%	Classic Maritime Inc.	22-Apr-21	1-Mar-22 - 1-May-22
	2012   206,040
36	SAN FRANCISCO	K	$17,750		5.00	%	Olam International Limited, Singapore	11-Feb-21	27-May-21
			$24,700		5.00	%		27-May-21	15-Jan-22 - 15-Mar-22
	2017   208,006
37	NEWPORT NEWS	K	$18,400		5.00	%	Koch Shipping Pte. Ltd., Singapore	8-Sep-20	16-Oct-21 - 30-Dec-21
	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 Vessel sold delivered to her new owners on July 30, 2021.
2 Charter included a one time ballast bonus payment of US$500,000.
3 Based on latest information.
4 Charterers have agreed to pay US$30,664 per day, for the excess period commencing from June 15, 2021 till June 20, 2021.
5 Expected date of delivery to the Company on February 28, 2022.
6 Charterers have agreed to pay the weighted average of the Baltic Panamax 5 T/C routes, as published by the Baltic Exchange on July 2, 2021 for the excess period commencing from July 2, 2021 till July 28, 2021.
7 Vessel on scheduled drydocking from July 2, 2021 to July 23, 2021.
8 Redelivery date based on an estimated time charter trip duration of about 45 days.
9 Vessel currently off hire for drydocking.
10 Redelivery date based on an estimated time charter trip duration of about 35 days.
11 Vessel on scheduled drydocking from April 10, 2021 to May 30, 2021.

Summary of Selected Financial & Other Data (unaudited)
			Three months ended June 30,						Six months ended June 30,
			2021			2020			2021			2020
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
	Time charter revenues	$	47,023		$	40,975		$	88,074		$	84,735
	Voyage expenses		2,292			3,827			4,072			7,561
	Vessel operating expenses		19,179			20,806			37,731			42,123
	Net income/(loss)		2,815			(10,794	)		1,520			(113,617	)
	Net income/(loss) attributed to common stockholders		1,373			(12,236	)		(1,364	)		(116,501	)
FLEET DATA
	Average number of vessels		37.0			41.0			37.6			41.4
	Number of vessels		37.0			41.0			37.0			41.0
	Weighted average age of vessels		10.4			9.5			10.4			9.5
	Ownership days		3,367			3,731			6,801			7,532
	Available days		3,319			3,507			6,753			7,025
	Operating days		3,305			3,446			6,692			6,838
	Fleet utilization		99.6	%		98.3	%		99.1	%		97.3	%
AVERAGE DAILY RESULTS
	Time charter equivalent (TCE) rate (1)	$	13,477		$	10,593		$	12,439		$	10,986
	Daily vessel operating expenses (2)	$	5,696		$	5,577		$	5,548		$	5,593

Non-GAAP Measures

(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, August 3, 2021.

Investors may access the webcast by visiting the Company’s website at www.dianashippinginc.com, and clicking on the webcast link. An accompanying investor presentation also will be available via the webcast link and on the Company’s website. 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 13721321.

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, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations, personnel, and on the demand for seaborne transportation of bulk products; 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 the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s 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 the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

(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,
			2021			2020			2021			2020
REVENUES:
	Time charter revenues	$	47,023		$	40,975		$	88,074		$	84,735
EXPENSES:
	Voyage expenses		2,292			3,827			4,072			7,561
	Vessel operating expenses		19,179			20,806			37,731			42,123
	Depreciation and amortization of deferred charges		10,092			11,737			20,141			23,284
	General and administrative expenses		7,211			6,739			13,909			16,285
	Management fees to related party		405			497			854			1,014
	Vessel impairment charges		-			2,556			-			95,693
	Loss on sale of vessels		(2	)		-			203			1,078
	Other loss/(income)		102			99			(4	)		(142	)
	Operating income/(loss)	$	7,744		$	(5,286	)	$	11,168		$	(102,161	)
OTHER INCOME / (EXPENSES):
	Interest expense and finance costs		(4,706	)		(5,655	)		(9,342	)		(12,009	)
	Interest income		22			203			50			639
	Loss on extinguishment of debt		(158	)		-			(158	)		-
	Loss from equity method investment		(87	)		(56	)		(198	)		(86	)
	Total other expenses, net	$	(4,929	)	$	(5,508	)	$	(9,648	)	$	(11,456	)
Net income/(loss)		$	2,815		$	(10,794	)	$	1,520		$	(113,617	)
Dividends on series B preferred shares			(1,442	)		(1,442	)		(2,884	)		(2,884	)
Net income/(loss) attributed to common stockholders			1,373			(12,236	)		(1,364	)		(116,501	)
Earnings/(loss) per common share, basic and diluted		$	0.02		$	(0.14	)	$	(0.02	)	$	(1.35	)
Weighted average number of common shares, basic			82,020,353			85,552,271			82,792,000			86,012,939
Weighted average number of common shares, diluted			85,576,754			85,552,271			82,792,000			86,012,939
			Three months ended June 30,						Six months ended June 30,
			2021			2020			2021			2020
Net income/(loss)		$	2,815		$	(10,794	)	$	1,520		$	(113,617	)
Other comprehensive loss (Actuarial loss)			-			(6	)		-			(13	)
Comprehensive income/(loss)		$	2,815		$	(10,800	)	$	1,520		$	(113,630	)

CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands of U.S. Dollars)
			June 30, 2021		December 31, 2020*
ASSETS			(unaudited)
Cash, cash equivalents and restricted cash		$	154,995	$	82,909
Other current assets			23,597		41,752
Vessels, net			690,819		716,178
Other fixed assets, net			21,629		21,704
Other non-current assets			8,594		9,867
	Total assets	$	899,634	$	872,410
LIABILITIES AND STOCKHOLDERS' EQUITY
Long-term debt, net of deferred financing costs		$	461,515	$	420,314
Other liabilities			22,386		23,526
Total stockholders' equity			415,733		428,570
	Total liabilities and stockholders' equity	$	899,634	$	872,410
*	The balance sheet data have been derived from the audited consolidated financial statements at that date.

OTHER FINANCIAL DATA (unaudited)
			Three months ended June 30,						Six months ended June 30,
			2021			2020			2021		2020
Net cash provided by operating activities		$	21,023		$	4,447		$	27,442	$	11,737
Net cash provided by/(used in) investing activities			(483	)		(1,100	)		22,075		(2,264	)
Net cash provided by/(used in) financing activities		$	48,420		$	(12,857	)	$	22,569	$	(36,071	)

FAQ

What were Diana Shipping's earnings results for Q2 2021?

Diana Shipping reported a net income of $2.8 million for Q2 2021, compared to a net loss of $10.8 million in Q2 2020.

How did time charter revenues change in Q2 2021 for DSX?

Time charter revenues increased to $47.0 million in Q2 2021, up from $41.0 million in the same quarter last year.

What is the fleet utilization rate for Diana Shipping?

Diana Shipping's fleet utilization rate was 99.6% for Q2 2021.

What is the outlook for Diana Shipping's revenue following vessel sales?

The sale of vessels resulted in decreased ownership days, which may negatively impact future revenues.