ATHENS, Greece, May 14, 2008 (PRIME NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income of $53.2 million for the first quarter of 2008. This compared to net income of $21.4 million reported in the first quarter of 2007.
Voyage and time charter revenues were $78.9 million for the first quarter of 2008, compared to $38.5 million for the same period of 2007, due to an increase in prevailing time charter rates and the increase in operating days due to the enlargement of the Company's fleet.
Dividend Declaration
The Company has declared a cash dividend on its common stock of $0.85 per share, based on its results of operations during the first quarter ended March 31, 2008. The cash dividend will be payable on or about June 5, 2008 to shareholders of record as of May 28, 2008. The Company has 74.4 million shares of common stock outstanding.
Chairman and Chief Executive Officer's Comments
"This is certainly our strongest quarter ever and we believe that results for the remainder of the year will be equally strong, based on the fact that we have already secured $241 million to $247 million in revenues for the 95% to 97% of the operating days remaining for the year 2008. It should be noted that for the entire same period last year the gross revenues were $152 million. Our shareholders are being rewarded through the dividends for actively participating in the dry bulk industry today. Our latest dividend declaration of $0.85 per share is confirmation of the present favourable market conditions, but more importantly we believe that it also reflects the outcome of our prudent vessel acquisition and chartering strategy," said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping.
Fleet Employment Profile (As of May 7, 2008)
Currently Diana's fleet is employed as follows:
Sister Year Employ- Charter
Name ships(1) Built DWT ment(2) Expiration(3)
---------------------------------------------------------------------
Nirefs A 2001 75,311 $60,500 Feb 3, 2010 -
Apr 3, 2010
Alcyon A 2001 75,247 $34,500 Nov 21, 2012 -
Feb 21, 2013
Triton A 2001 75,336 $24,400 Oct 17, 2009 -
Jan 17, 2010(4)
Oceanis A 2001 75,211 $40,000 Jul 29, 2009 -
Oct 29, 2009
Dione A 2001 75,172 $82,000 Jan 7, 2009 -
Mar 7, 2009
Danae A 2001 75,106 $29,400 Feb 18, 2009 -
May 18, 2009
Protefs B 2004 73,630 $70,000 Aug 17, 2008 -
Sep 16, 2008
Calipso B 2005 73,691 $55,000 Jan 15, 2009 -
Mar 15, 2009
Clio B 2005 73,691 $27,000 Jan 27, 2009 -
Mar 27, 2009
Thetis B 2004 73,583 $60,250 Sep 2, 2008 -
Nov 2, 2008
Naias B 2006 73,546 $34,000 Aug 24, 2009 -
Oct 24, 2009
Erato C 2004 74,444 $80,300 Jan 1, 2009 -
Mar 1, 2009
Coronis C 2006 74,381 $27,500 Jan 18, 2009 -
Apr 9, 2009
Sideris GS D 2006 174,186 $43,000 Nov 30, 2008
$39,000 Nov 30, 2009
$36,000 Oct 15, 2010 -
Jan 15, 2011(5)
Aliki -- 2005 180,235 $52,000 May 1, 2009
$45,000 Mar 1, 2011 -
Jun 1, 2011(5)
Semirio D 2007 174,261 $51,000 Jun 15, 2009
$31,000 Apr 30, 2011 -
Jul 30, 2011(5)
Boston D 2007 177,828 $52,000 Sep 28, 2011 -
Dec 28, 2011(6)
Salt Lake
City -- 2005 171,810 $55,800 Aug 28, 2012 -
Oct 28, 2012
Norfolk -- 2002 164,218 $74,750 Jan 12, 2013 -
Mar 12, 2013
Hull H1107
(7),(8),(9) D 2010 177,000 $48,000 Feb 28, 2015 -
Jun 30, 2015
Hull H1108
(7),(8),(9) D 2010 177,000 -- --
---------
Total: 2,364,887
(1) Each vessel is a sister ship of the other vessels that have the
same letter.
(2) Gross time charter rate per day.
(3) 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.
(4) The charterer has the option to employ the vessel for a further
11-13 month period at a daily rate based on the average rate of
four pre-determined time charter routes as published by the
Baltic Exchange. The optional period, if exercised, must be
declared on or before the end of the 30th month of employment
and can only commence at the end of the 36th month.
(5) 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 $48,500.
(6) 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 $52,000.
(7) Expected to be delivered to owners in the second quarter of 2010.
(8) Based on latest possible date of delivery from the yard to the
owners.
(9) The Company has the option to deliver either Hull H1107 or Hull
H1108 to the charterer. 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.
Summary of Selected Financial & Other Data
Three Months Ended
March 31,
2008 2007
----------- -----------
(unaudited) (unaudited)
INCOME STATEMENT DATA
(in thousands of US Dollars):
Voyage and time charter revenues $78,876 $38,508
Voyage expenses 2,594 1,676
Vessel operating expenses 9,213 6,521
Net income 53,215 21,446
FLEET DATA
Average number of vessels 18.5 15.0
Number of vessels 19.0 15.0
Weighted average age of fleet (in years) 3.5 4.0
Ownership days 1,688 1,350
Available days 1,688 1,350
Operating days 1,684 1,323
Fleet utilization 99.8% 98.0%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate(1) $45,191 $27,283
Daily vessel operating expenses(2) $ 5,458 $ 4,830
-------------
(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 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 Daylight Time) on Wednesday, May 14, 2008.
Investors may access the webcast by visiting the Company's website at www.dianashippinginc.com, and clicking on the webcast link. The webcast also is accessible at www.viavid.net, by clicking on the Diana Shipping link under "Events". The conference call also may be accessed by telephone by dialing 1-800-762-9441 (for U.S.-based callers) or 1-480-629-9041 (for international callers).
A replay of the webcast will be available soon after the completion of the call and will be accessible on both www.dianashippinginc.com and www.viavid.net. A telephone replay will be available by dialing 1-800-406-7325 (for U.S.-based callers) or 1-303-590-3030 (for international callers); callers must use the PIN number 3866085.
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," "will," "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
March 31,
2008 2007
----------- -----------
(unaudited) (unaudited)
REVENUES:
Voyage and time charter revenues $ 78,876 $ 38,508
EXPENSES:
Voyage expenses 2,594 1,676
Vessel operating expenses 9,213 6,521
Depreciation and amortization of
deferred charges 10,253 4,800
General and administrative expenses 3,589 2,154
Foreign currency losses (gains) (9) (70)
----------- -----------
Operating income 53,236 23,427
----------- -----------
OTHER INCOME (EXPENSES):
Interest and finance costs (1,518) (2,128)
Interest Income 552 147
Insurance settlements for vessel
un-repaired damages 945 --
----------- -----------
Total other income (expenses), net (21) (1,981)
----------- -----------
Net Income $ 53,215 $ 21,446
=========== ===========
Earnings/(losses) per common share,
basic and diluted $ 0.71 $ 0.40
=========== ===========
Weighted average number of common
shares, basic 74,375,000 53,325,000
=========== ===========
Weighted average number of common
shares, diluted 74,404,038 53,325,000
=========== ===========
BALANCE SHEET DATA
March 31, December 31,
2008 2007
----------- -----------
ASSETS (unaudited)
------
Cash and cash equivalents 24,579 16,726
Other current assets 4,470 4,788
Advances for vessels under
construction and acquisitions and
other vessel costs 26,445 53,104
Vessels' net book value 993,060 867,632
Other fixed assets, net 925 956
Other non-current assets 612 1,136
----------- -----------
Total assets 1,050,091 944,342
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities 19,696 20,964
Long-term debt 196,990 98,819
Deferred revenue, non-current portion 23,995 23,965
Other non-current liabilities 1,315 1,120
Total stockholders' equity 808,095 799,474
----------- -----------
Total liabilities and stockholders'
equity 1,050,091 944,342
=========== ===========
OTHER FINANCIAL DATA
Three Months Ended
March 31,
2008 2007
----------- -----------
(unaudited) (unaudited)
Net cash from operating activities $ 61,898 $ 28,133
Net cash used in investing activities (107,875) (31,176)
Net cash from / (used in) financing
activities 53,830 (2,403)