d799172_6-k.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR
15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934


For the month of August 2007

Commission File Number:  001-32458


DIANA SHIPPING INC.
(Translation of registrant’s name into English)
 
Pendelis 16, 175 64 Palaio Faliro, Athens, Greece
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [X]       Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)7: ___

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  Yes [_]   No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
82-______________.



INFORMATION CONTAINED IN THIS FORM 6-K REPORT
 
Attached to this Report on Form 6-K as Exhibit 1 is a press release dated August 2, 2007 of Diana Shipping Inc. (the “Company”) announcing its financial results for the second quarter and first six months of 2007 and announcing declaration of a dividend.



   
Exhibit 1
     
   
Corporate Contact:
   
Ioannis Zafirakis
   
Director and Vice-President
   
Telephone: + 30-210-9470100
   
Email: izafirakis@dianashippinginc.com
     
For Immediate Release
    
     
   
Investor and Media Relations:
   
Edward Nebb
   
Euro RSCG Magnet
   
Telephone: + 1-212-367-6848
   
Email: ed.nebb@eurorscg.com
 


DIANA SHIPPING INC. REPORTS FINANCIAL RESULTS
FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2007

DECLARES CASH DIVIDEND OF 51 CENTS PER SHARE
FOR THE SECOND QUARTER


ATHENS, GREECE, August 2, 2007 – Diana Shipping Inc. (NYSE: DSX), a global shipping transportation company specializing in dry bulk cargoes, today reported net income and net income available to common stockholders of $26.0 million for the second quarter of 2007.  This compared to net income of $13.2 million reported in the second quarter of 2006 and net loss available to common stockholders of $7.1 million, including a non-recurring preferential deemed dividend of $20.3 million relating to the purchase of Diana Shipping Services S.A., the fleet management company that Diana Shipping Inc. acquired as of April 1, 2006.

Voyage and time charter revenues were $44.0 million for the second quarter of 2007, compared to $26.1 million for the same period of 2006, due to an increase in prevailing time charter rates and an increase in the number of vessels in the Company’s fleet.

Net income and net income available to common stockholders for the six months ended June 30, 2007, amounted to $47.5 million, compared to net income of $24.9 million for the same period of 2006 and net income available to common stockholders of $4.6 million. Voyage and time charter revenues were $82.5 million for the first six months of 2007, compared to $50.3 million for the same period of 2006.

Dividend declaration
The Company has declared a cash dividend on its common stock of $0.51 per share, based on its results of operations during the second quarter ended June 30, 2007. The cash dividend will be payable on or about August 24, 2007 to shareholders of record as of August 16, 2007. The Company has 62.9 million shares of common stock outstanding.
 

Fleet Employment Profile
Currently Diana’s fleet is employed as follows:

 
  Name
Sister ships3
Year Built
DWT
Employment 1
  Charter Expiration2
  
 
Nirefs
A
2001
75,311
4TCs Average4 + 4.5%
Oct 23, 2007 – Jan 23, 2008
  
 
Alcyon
A
2001
75,247
$22,582
Oct 15, 2007 – Feb 15, 2008
  
 
Triton
A
2001
75,336
$24,400
Oct. 17, 2009 – Jan 17, 20105
  
 
Oceanis
A
2001
75,211
$43,000
Sep 4, 2007 – Sep 10, 2007
  
 
Dione
A
2001
75,172
$28,500
Nov 7, 2007 – Jan 17, 2008
  
 
Danae
A
2001
75,106
$29,400
Feb 18, 2009 – May 18, 2009
  
 
Protefs
B
2004
73,630
$31,650
Feb 3, 2008 – Apr 3, 2008
  
 
Calipso
B
2005
73,691
$26,750
Dec 21, 2007 – Feb 21, 2008
  
 
Clio
B
2005
73,691
$27,000
Jan 27, 2009 – Mar 27, 2009
  
 
Thetis
B
2004
73,583
$25,000
Aug 3, 2007 – Oct 18, 2007
  
 
Naias
B
2006
73,546
$21,000
Jun 28 , 2007 – Sep 28, 2007
  
 
Erato
C
2004
74,444
$30,500
Nov 9, 2007 – Jan 9, 2008
  
 
Coronis
C
2006
74,381
$27,500
Jan 18, 2009 – Apr 9, 2009
  
 
Pantelis SP6
-
1999
169,883
$47,500
Jul 3, 20076
  
 
Sideris GS
D
2006
174,186
$41,0007
Oct 15, 2010 – Jan 15, 20118
  
 
Aliki
-
2005
180,235
$48,5009
Mar 1, 2011 – Jun 1, 20118
  
 
Semirio
D
2007
174,261
$41,00010
Apr 30, 2011 – Jul 30, 20118
  
 
Boston11
D
2007
177,000
$52,000
Oct 5, 2011 – Jan 4, 201212
  
 
Hull H110713
D
2010
177,000
-
-
  
 
Hull H110813
D
2010
177,000
-
-
  
     
 Total:
          2,197,914
      

1
Gross time charter rate per day.
   
2
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.
   
3
Each vessel is a sister ship of the other vessels that have the same letter.
   
4
Adjustable every 15 days based on the average of four main pre-determined time charter routes, as published by the Baltic Exchange.
   
5
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.
   
6
The vessel has been sold and was delivered to her new owners on July 5, 2007.
   
7
The daily time charter rate will be $46,000 during the first year; $43,000 during the second year; $39,000 during the third year and $36,000 during the fourth year.
   
8
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.
   
9
The daily time charter rate will be $52,000 for the first and second year and $45,000 for the third and fourth year.
   
10
The daily time charter rate will be $51,000 for the first and second year and $31,000 for the third and fourth year. The vessel was delivered to the Company on June 14, 2007.
   
11.
Expected to be delivered to owners/charterers on or about November 20, 2007
   
12
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.
   
13
Expected to be delivered to owners in the second quarter of 2010.
 


Summary of Selected Financials & Other Data

     
 Three Months Ended
June 30,
  
 Six Months Ended
June 30,
     
2007
  
2006
  
2007
  
2006
     
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
INCOME STATEMENT DATA (in thousands of US Dollars):
    
 
Voyage and time charter revenues
$
43,997
$
26,142
$
82,505
$
50,322
 
Voyage expenses
  
2,004
  
1,155
  
3,680
  
2,910
 
Vessel operating expenses
  
6,908
  
5,348
  
13,429
  
10,275
 
Net income
  
26,017
  
13,198
  
47,463
  
24,914
 
Net income / (loss) available to common stockholders
  
26,017
$
 (7,069)
$
47,463
$
4,647
FLEET DATA
                
 
Average number of vessels
  
15.9
  
13.0
  
15.4
  
12.9
 
Number of vessels
  
17.0
  
13.0
  
17.0
  
13.0
 
Weighted average age of fleet (in years)
  
3.6
  
4.0
  
3.6
  
4.0
 
Ownership days
  
1,444
  
1,183
  
2,794
  
2,329
 
Available days
  
1,444
  
1,176
  
2,794
  
2,288
 
Operating days
  
1,441
  
1,175
  
2,764
  
2,283
 
Fleet utilization
  
99.8%
  
99.9%
  
98.9%
  
99.8%
AVERAGE DAILY RESULTS
                
 
Time charter equivalent (TCE) rate (1)
$
29,081
$
21,247
$
28,212
$
20,722
 
Daily vessel operating expenses (2)
$
4,784
$
4,521
$
4,806
$
4,412

 
          
(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 10:00 A.M. (Eastern Time) on Thursday, August 2, 2007. 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 1-888-339-9446 (for U.S.-based callers) or 1-480-629-9562 (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 3762079.



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.

(See financial tables attached)

                   
BALANCE SHEET DATA
                
             
 June 30,
  
 December 31,
             
2007
  
2006
ASSETS
          
(unaudited)
    
                   
 Cash and cash equivalents
          
11,623
  
14,511
 Other current assets
          
4,796
  
4,551
 Vessels held for sale
          
57,353
  
-
 Advances for vessels under construction and acquisitions and other vessel costs
  
47,270
  
24,347
 Vessels’ net book value
          
605,611
  
464,439
 Other fixed assets, net
          
994
  
897
 Other non-current assets
          
1,233
  
1,930
 
Total assets
          
728,880
  
510,675
                   
LIABILITIES AND STOCKHOLDERS’ EQUITY
        
                   
 Current liabilities
          
9,464
  
7,636
 Long-term debt
          
202,423
  
138,239
 Other non-current liabilities
          
2,925
  
1,697
 Total stockholders’ equity
          
514,068
  
363,103
 
Total liabilities and stockholders’ equity
          
728,880
  
510,675
                   
                   
OTHER FINANCIAL DATA
                
     
 Three Months Ended
June 30,
  
 Six Months Ended
June 30,
     
2007
  
2006
  
2007
  
2006
     
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
 Net cash from operating activities
$
      32,619
$
18,380
$
         60,649
$
              33,985
 Net cash used in investing activities
  
 (200,266)
  
 (3,963)
  
 (231,339)
  
 (41,880)
 Net cash from / (used in) financing activities
  
170,205
  
 (15,120)
  
167,802
  
5,380

#   #   #


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DIANA SHIPPING INC.
(registrant)





Dated:  August 3, 2007
  
By:
/s/ Anastassis Margaronis
  
     
Anastassis Margaronis
     
President




SK 23159 0002 799172