Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2023; Declares Cash Dividend of $0.075 Per Share for the Fourth Quarter 2023; Announces the Sale of a Capesize Dry Bulk Vessel, the m/v Houston

ATHENS, Greece, Feb. 23, 2024 (GLOBE NEWSWIRE) — Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, today reported net income of $9.4 million and net income attributed to common stockholders of $7.9 million for the fourth quarter of 2023. This compares to net income of $25.7 million and net income attributed to common stockholders of $24.2 million for the fourth quarter of 2022. Earnings per share for the fourth quarter of 2023 was $0.08 basic and $0.06 diluted, compared to earnings per share of $0.28 basic and $0.27 diluted in the same quarter of 2022.

Time charter revenues were $60.0 million for the fourth quarter of 2023, compared to $75.7 million for the same quarter of 2022. The decrease in time charter revenues, compared to the same quarter of last year, was due to decreased average charter rates. This decrease was partly offset by increased ownership days that resulted from vessel acquisitions.

Net income for 2023, amounted to $49.8 million and net income attributed to common stockholders amounted to $44.1 million. This compares to net income of $119.1 million and net income attributed to common stockholders of $113.3 million, for 2022. Time charter revenues for 2023 were $262.1 million, compared to $290.0 million for 2022. Earnings per share was $0.44 basic and $0.42 diluted, compared to earnings per share of $1.42 basic and $1.36 diluted in 2022.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.075 per share, based on the Company’s results of operations during the fourth quarter ended December 31, 2023. The cash dividend will be payable on or about March 12, 2024 to all shareholders of record as of March 5, 2024. The Company currently has 115,996,291 common shares issued and outstanding. As of February 16, 2024, there were 1,940,736 warrants exercised.

Sale of Capesize Dry Bulk Vessel, m/v Houston

The Company also announced that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to sell to an unaffiliated third party, the 2009-built vessel “Houston”, with delivery to the buyer latest by September 16, 2024, for a sale price of $23.3 million before commissions.

Fleet Employment (As of February 23, 2024)
                   
  VESSEL   SISTER SHIPS* GROSS RATE (USD PER DAY) COM** CHARTERERS DELIVERY DATE TO CHARTERERS*** REDELIVERY DATE TO OWNERS**** NOTES
  BUILT DWT  
9 Ultramax Bulk Carriers
1 DSI Phoenix   A 13,250 5.00 % ASL Bulk Marine Limited 4-Nov-22 4/Mar/2024 – 4/May/2024  
  2017 60,456              
2 DSI Pollux   A 17,000 5.00 % Delta Corp Shipping Pte. Ltd. 27-Oct-22 28-Dec-23  
  2015 60,446     14,000 4.75 % Cargill Ocean Transportation (Singapore) Pte. Ltd. 28-Dec-23 20/Aug/2025 – 20/Oct/2025  
3 DSI Pyxis   A 14,250 5.00 % ASL Bulk Marine Limited 24-Sep-23 10/Oct/2024 – 10/Dec/2024  
  2018 60,362              
4 DSI Polaris   A 13,100 5.00 % ASL Bulk Marine Limited 12-Nov-22 12/May/2024 – 12/Jul/2024  
  2018 60,404              
5 DSI Pegasus   A 14,000 5.00 % Reachy Shipping (SGP) Pte. Ltd. 7-Dec-22 15/Jul/2024 – 15/Sep/2024  
  2015 60,508              
6 DSI Aquarius   B 14,200 5.00 % Engelhart CTP Freight (Switzerland) SA 1-Feb-23 18-Jan-24  
  2016 60,309     14,500 5.00 % Stone Shipping Ltd 18-Jan-24 1/Dec/2024 – 1/Feb/2025  
7 DSI Aquila   B 13,300 5.00 % Western Bulk Carriers AS 22-Nov-22 11-Nov-23  
  2015 60,309     12,500   11-Nov-23 10/Nov/2024 – 10/Jan/2025  
8 DSI Altair   B 13,800 5.00 % Western Bulk Carriers AS 23-Jun-23 10/Aug/2024 – 10/Oct/2024  
  2016 60,309              
9 DSI Andromeda   B 14,250 5.00 % Western Bulk Carriers AS 17-Nov-22 27-Nov-23  
  2016 60,309     13,500 5.00 % Bunge SA, Geneva 27-Nov-23 20/Feb/2025 – 20/Apr/2025 1, 2
7 Panamax Bulk Carriers
10 ARTEMIS     10,000 5.00 % ASL Bulk Shipping Limited 17-Jun-23 6-Oct-23 3
  2006 76,942     12,000 5.00 % Jera Global Markets Pte. Ltd. 14-Oct-23 23-Feb-24 4, 5
11 LETO     14,500 4.75 % Cargill International S.A., Geneva 29-Jan-23 1/Mar/2024 – 30/Apr/2024  
  2010 81,297              
12 SELINA   C 12,000 4.75 % Cargill International S.A., Geneva 20-May-23 15/Sep/2024 – 15/Nov/2024  
  2010 75,700              
13 MAERA   C 12,000 4.75 % Cargill International S.A., Geneva 16-Dec-22 29-Jan-24 6
  2013 75,403     13,750 5.00 % ST Shipping and Transport Pte. Ltd. 29-Jan-24 20/Nov/2024 – 20/Jan/2025
14 ISMENE     12,650 5.00 % Paralos Shipping Pte., Ltd. 13-Sep-23 15/Apr/2025 – 30/Jun/2025  
  2013 77,901              
15 CRYSTALIA   D 11,250 5.00 % Reachy Shipping (SGP) Pte. Ltd. 6-Sep-23 29/Feb/2024 – 20/Apr/2024  
  2014 77,525              
16 ATALANDI   D 13,250 4.75 % Aquavita International S.A. 15-Feb-23 5/Mar/2024 – 5/May/2024  
  2014 77,529              
6 Kamsarmax Bulk Carriers
17 MAIA   E 13,500 5.00 % ST Shipping and Transport Pte. Ltd. 23-Sep-23 15/Jun/2024 – 20/Aug/2024  
  2009 82,193              
18 MYRSINI   E 15,000 5.00 % Salanc Pte. Ltd. 22-Nov-22 20/Apr/2024 – 28/Jun/2024  
  2010 82,117              
19 MEDUSA   E 14,250 5.00 % ASL Bulk Shipping Limited 14-May-23 10/Feb/2025 – 15/Apr/2025  
  2010 82,194              
20 MYRTO   E 12,650 5.00 % Cobelfret S.A., Luxemburg 15-Jul-23 1/Nov/2024 – 15/Jan/2025  
  2013 82,131              
21 ASTARTE     15,000 5.00 % Reachy Shipping (SGP) Pte. Ltd. 29-Apr-23 1/Aug/2024 – 1/Oct/2024  
  2013 81,513              
22 LEONIDAS P. C.     17,000 4.75 % Cargill International S.A., Geneva 17-Mar-23 22-Feb-24 7
  2011 82,165     17,000 5.00 % Ming Wah International Shipping Company Limited 22-Feb-24 20/Aug/2025 – 20/Oct/2025
5 Post-Panamax Bulk Carriers
23 ALCMENE     13,000 5.00 % SwissMarine Pte. Ltd., Singapore 2-Jan-23 29/Feb/2024 – 25/Mar/2024 8
  2010 93,193              
24 AMPHITRITE   F 14,250 5.00 % Cobelfret S.A., Luxembourg 9-Nov-22 13-Jan-24  
  2012 98,697     15,000 13-Jan-24 15/Nov/2024 – 15/Jan/2025 9
25 POLYMNIA   F 15,000 5.00 % Cobelfret S.A., Luxemburg 14-Jan-23 1/Apr/2024 – 31/May/2024 10
  2012 98,704              
26 ELECTRA   G 14,500 5.00 % Cobelfret S.A., Luxemburg 13-Apr-23 1/Jun/2024 – 1/Aug/2024  
  2013 87,150              
27 PHAIDRA   G 12,250 4.75 % Aquavita International S.A. 9-May-23 1/Sep/2024 – 15/Nov/2024  
  2013 87,146              
9 Capesize Bulk Carriers
28 SEMIRIO   H 14,150 5.00 % Solebay Shipping Cape Company Limited, Hong Kong 18-Aug-23 20/Nov/2024 – 30/Jan/2025  
  2007 174,261              
29 BOSTON     17,000 5.00 % ST Shipping and Transport Pte. Ltd. 6-May-23 15/Jul/2024 – 15/Oct/2024 11
  2007 177,828              
30 HOUSTON   H 13,000 5.00 % EGPN Bulk Carrier Co., Limited 21-Nov-22 1/Jul/2024 – 31/Aug/2024 12
  2009 177,729              
31 NEW YORK   H 16,000 5.00 % SwissMarine Pte. Ltd., Singapore 11-Jun-23 1/Oct/2024 – 7/Dec/2024  
  2010 177,773              
32 SEATTLE   I 26,500 5.00 % Solebay Shipping Cape Company Limited, Hong Kong 2-Mar-22 1-Oct-23  
  2011 179,362     17,500   1-Oct-23 15/Jul/2025 – 30/Sep/2025  
33 P. S. PALIOS   I 31,000 5.00 % Classic Maritime Inc. 11-Jun-22 15/Apr/2024 – 30/Jun/2024  
  2013 179,134              
34 G. P. ZAFIRAKIS   J 17,000 5.00 % Solebay Shipping Cape Company Limited, Hong Kong 12-Jan-23 15/Jun/2024 – 15/Aug/2024  
  2014 179,492              
35 SANTA BARBARA   J 21,250 5.00 % Smart Gain Shipping Co., Limited 7-May-23 10/Oct/2024 – 10/Dec/2024 13
  2015 179,426              
36 NEW ORLEANS     32,000 5.00 % Engelhart CTP Freight (Switzerland) SA 25-Mar-22 7-Dec-23 13,
  2015 180,960     20,000 5.00 % Kawasaki Kisen Kaisha, Ltd. 7-Dec-23 15/Aug/2025 – 31/Oct/2025 14
37 FLORIDA     25,900 5.00 % Bunge S.A., Geneva 29-Mar-22 29/Jan/2027 – 29/May/2027 2
  2022 182,063              
4 Newcastlemax Bulk Carriers
38 LOS ANGELES   K 17,700 5.00 % Nippon Yusen Kabushiki Kaisha, Tokyo 15-Jan-23 20/May/2024 – 5/Aug/2024  
  2012 206,104              
39 PHILADELPHIA   K 26,000 5.00 % C Transport Maritime Ltd., Bermuda 12-Apr-22 4-Feb-24  
  2012 206,040     22,500 5.00 % Nippon Yusen Kabushiki Kaisha, Tokyo 4-Feb-24 20/Apr/2025 – 20/Jul/2025  
40 SAN FRANCISCO   L 22,000 5.00 % SwissMarine Pte. Ltd., Singapore 18-Feb-23 5/Jan/2025 – 5/Mar/2025  
  2017 208,006              
41 NEWPORT NEWS   L 20,000 5.00 % Nippon Yusen Kabushiki Kaisha, Tokyo 20-Sep-23 10/Mar/2025 – 10/Jun/2025  
  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.
 
1The fixture includes the option for redelivery of vessel east of Suez against a gross ballast bonus of US$250,000.
2Bareboat chartered-in for a period of ten years.
3Vessel on scheduled drydocking from October 6, 2023 to October 14, 2023.
4Redelivery date based on an estimated time charter trip duration of about 131 days.
5Vessel has been sold and it is expected to be delivered to her new Owners by latest March 8, 2024.
6Charterers will compensate the Owners at a rate of 105% of the Baltic Panamax Index 5 TC average as published by the Baltic Exchange on a daily basis or the vessel’s present charter party rate, whichever is higher, for the excess period commencing from December 29, 2023 until the actual redelivery date.
7Vessel off hire for 6.83 days.
8Based on latest information.
9The charter rate will be US$12,250 per day for the first 30 days of the charter period.
10The charter rate was US$10,000 per day for the first 30 days of the charter period.
11Vessel has been sold and delivered to her new Owners on December 6, 2023.
12Vessel has been sold and it is expected to be delivered to her new Owners by latest September 16, 2024.
13Bareboat chartered-in for a period of eight years.
14Vessel off hire for 3.65 days.
Summary of Selected Financial & Other Data (unaudited)
    Three months ended December 31,     Year ended December 31,
    2023     2022     2023     2022
                       
STATEMENT OF INCOME DATA (in thousands of US Dollars)
Time charter revenues $ 60,016     $ 75,705     $ 262,098     $ 289,972  
Voyage expenses   3,326       2,846       13,621       6,942  
Vessel operating expenses   21,520       19,527       85,486       72,033  
Net income   9,382       25,682       49,844       119,063  
Net income attributable to common stockholders   7,940       24,240       44,075       113,294  
FLEET DATA
Average number of vessels   40.7       38.2       41.1       35.4  
Number of vessels   40.0       42.0       40.0       42.0  
Weighted average age of vessels   10.5       10.2       10.5       10.2  
Ownership days   3,746       3,512       14,986       12,924  
Available days   3,739       3,453       14,867       12,449  
Operating days   3,727       3,393       14,824       12,306  
Fleet utilization   99.7 %     98.3 %     99.7 %     98.9 %
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 15,162     $ 21,100     $ 16,713     $ 22,735  
Daily vessel operating expenses (2) $ 5,745     $ 5,560     $ 5,704     $ 5,574  

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 available days during the period, which is consistent with industry standards.  Voyage expenses include port charges, bunker (fuel) expenses or gain, 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 Friday, February 23, 2024.

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 13744214.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership and bareboat charter-in of dry bulk vessels. The Company’s vessels are employed primarily on short to medium-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 continuing impacts of the COVID-19 pandemic; 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, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, including the escalation of the conflict in the Middle East, 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 INCOME AND COMPREHENSIVE INCOME
 
    Three months ended December 31,     Year ended December 31,
    2023     2022     2023     2022
REVENUES:                      
Time charter revenues $ 60,016     $ 75,705     $ 262,098     $ 289,972  
OPERATING EXPENSES                      
Voyage expenses   3,326       2,846       13,621       6,942  
Vessel operating expenses   21,520       19,527       85,486       72,033  
Depreciation and amortization of deferred charges   11,508       12,228       49,785       43,326  
General and administrative expenses   8,364       7,407       32,968       29,367  
Management fees to a related party   333       61       1,313       511  
Gain on sale of vessels   (329 )     (9 )     (5,323 )     (2,850 )
Insurance recoveries                     (1,789 )
Other operating (income)/loss   (572 )     209       (1,464 )     (265 )
Operating income, total $ 15,866     $ 33,436     $ 85,712     $ 142,697  
                       
OTHER INCOME / (EXPENSES):                      
Interest expense and finance costs   (12,649 )     (9,795 )     (49,331 )     (27,419 )
Interest and other income   2,129       1,484       8,170       2,737  
Loss on derivative instruments   (592 )           (439 )      
Loss on extinguishment of debt         (222 )     (748 )     (435 )
Gain on deconsolidation of subsidiary               844        
Gain on related party investments   740       589       1,502       589  
Unrealized gain on equity investments   2,813             2,813        
Gain on warrants   1,583             1,583        
Gain/(loss) from equity method investments   (508 )     190       (262 )     894  
Total other expenses, net $ (6,484 )   $ (7,754 )   $ (35,868 )   $ (23,634 )
                       
Net income $ 9,382     $ 25,682     $ 49,844     $ 119,063  
Dividends on series B preferred shares   (1,442 )     (1,442 )     (5,769 )     (5,769 )
                       
Net income attributable to common stockholders   7,940       24,240       44,075       113,294  
                       
Earnings per common share, basic $ 0.08     $ 0.28     $ 0.44     $ 1.42  
                       
Earnings per common share, diluted $ 0.06     $ 0.27     $ 0.42     $ 1.36  
Weighted average number of common shares outstanding, basic   102,910,653       87,076,947       100,166,629       80,061,040  
Weighted average number of common shares outstanding, diluted   105,488,012       90,474,943       101,877,142       83,318,901  
                       
    Three months ended December 31,     Year ended December 31,
    2023     2022     2023     2022
                       
Net Income $ 9,382     $ 25,682     $ 49,844     $ 119,063  
Other comprehensive income (Defined benefit plan)   55       181       55       182  
Comprehensive Income $ 9,437     $ 25,863     $ 49,899     $ 119,245  
       
CONDENSED CONSOLIDATED BALANCE SHEET DATA      
(in thousands of U.S. Dollars)      
             
      2023     2022 *
ASSETS    (unaudited)      
             
Cash, cash equivalents, restricted cash and time deposits $ 161,592**   $ 143,928**
Investments in equity securities   20,729    
Other current assets   19,900     17,636
Fixed assets   924,474     996,702
Investments in related parties and equity method investments   24,087     8,250
Other noncurrent assets   15,628     16,403
Total assets $ 1,166,410   $ 1,182,919
             
LIABILITIES AND STOCKHOLDERS’ EQUITY          
             
Long-term debt and finance liabilities, net of deferred financing costs $ 642,772   $ 663,442
Other liabilities   34,617     32,149
Total stockholders’ equity   489,021     487,328
 Total liabilities and stockholders’ equity $ 1,166,410   $ 1,182,919
             
* The balance sheet data have been derived from the audited consolidated financial statements at that date.
** Includes time deposits of $40 million and $46.5 million as of December 31, 2023 and 2022, respectively
 
OTHER FINANCIAL DATA (unaudited)
    Three months ended December 31,     For the years ended December 31,
    2023     2022     2023     2022
                       
Net cash provided by/(used in) operating activities $ (2,235 )   $ 34,745     $ 70,380     $ 158,859  
Net cash provided by/(used in) investing activities   31,037       (218,718 )     24,929       (273,097 )
Net cash provided by/(used in) financing activities $ (16,762 )   $ 151,726     $ (71,145 )   $ 84,878  

 


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