d1075309_6-k.htm
FORM 6-K
 
SECURITIES AND EXCHANGE COMMISSION
 
WASHINGTON, D.C.  20549
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of February 2010
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.
 

 
 
 

INFORMATION CONTAINED IN THIS FORM 6-K REPORT
 
Attached hereto as Exhibit 99.1 is a press release from Diana Shipping Inc. (the "Company") dated February 23, 2010 reporting their financial results for the fourth quarter and year ended December 31, 2009.
 
The information contained in this Report on Form 6-K, with the exception of the section captioned "Chairman and Chief Executive Officer's Comments," is hereby incorporated by reference into the Company's registration statement on Form F-3D (File no. 333-150406) filed with the U.S. Securities and Exchange Commission (the "Commission") with an effective date of April 24, 2008, and the Company's registration statement on Form F-3 ASR (File No. 333-159016) filed with the Commission with an effective date of May 6, 2009.

 

 

 
 
 

 
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:  February 23, 2010
By:
/s/ Andreas Michalopoulos
  
   
Andreas Michalopoulos
  
   
Chief Financial Officer and Treasurer



 
 
 

Exhibit 99.1

Corporate Contact:
Ioannis Zafirakis
Director, Executive Vice-President and Secretary
Telephone: + 30-210-9470100
Email: izafirakis@dianashippinginc.com
For Immediate Release
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net


DIANA SHIPPING INC. REPORTS FINANCIAL RESULTS
FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2009


ATHENS, GREECE, February 23, 2010 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $27.6 million for the fourth quarter of 2009.  This compared to net income of $54.2 million reported in the fourth quarter of 2008.

Voyage and time charter revenues were $58.6 million for the fourth quarter of 2009, compared to $84.3 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 year ended December 31, 2009 amounted to $121.5 million, compared to net income of $221.7 million for 2008. Voyage and time charter revenues were $239.3 million for the year ended December 31, 2009, compared to $337.4 million for 2008.

Chairman and Chief Executive Officer's Comments

"Diana Shipping Inc. has delivered another profitable quarter while at the same time implementing our strategy to build the company in a consistent and disciplined manner. It is our view that the actual deliveries of dry bulk vessels in the next two years will not be easily absorbed by the growth in demand, although demand is expected to be more solid than in the recent recessionary period. Therefore we continue to feel strongly that the market will present us with many attractive opportunities, given our strong balance sheet, track record of profitability and well-defined strategic direction, and we will gradually and deliberately seek to take advantage of those opportunities. As previously announced, we are pursuing a strategy of expanding our investments in the dry bulk sector through vessel purchases during the next 24 months, and have begun this effort with the purchase in December 2009 of MV Melite. We will continue to be disciplined in our execution, while looking forward to opportunities that offer the potential to benefit all of our shareholders," said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc.


 
 
 


Fleet Employment Profile (As of February 22, 2010)
Currently Diana's fleet is employed as follows:
Vessel
Sister Ships*
Year Built
DWT
Gross Rate (USD per day)
Charterer
Redelivery date to
owners**
PANAMAX VESSELS
Coronis
C
2006
74,381
$14,000
TPC Korea Co. Ltd., Seoul
Feb. 26, 2010 – Apr. 26, 2010
Erato
C
2004
74,444
$15,000
Cargill International S.A., Geneva
Feb. 20, 2010 – Mar. 13, 201010
 
       
$20,500
C Transport Panamax Ltd., Isle of Man
Dec.13, 2011 – Mar. 13, 201211
Naias
B
2006
73,546
$19,000
J. Aron & Company, New York
Jul. 24, 2010 – Sep. 24, 2010
Clio
B
2005
73,691
$11,000
Cargill International S.A., Geneva
Feb. 15, 2010 – Mar. 26, 201010
Calipso12
B
2005
73,691
$9,400
Cargill International S.A., Geneva
Mar. 3, 2010 – Apr. 4, 201010
Protefs
B
2004
73,630
$59,000
Hanjin Shipping Co. Ltd., Seoul
Aug. 18, 2011 – Nov. 18, 2011
Thetis
B
2004
73,583
$10,500
Cargill International S.A., Geneva
Mar. 1, 2010 – Mar. 6, 201010
       
$23,000
Glencore Grain BV, Rotterdam
Feb. 6, 2011 – Apr. 21, 201111
Dione
A
2001
75,172
$12,000
Louis Dreyfus Commodities S.A., Geneva
Jun. 1, 2010 – Sep. 1, 2010
Danae
A
2001
75,106
$12,000
Augustea Atlantica Srl, Naples
Jan. 23, 2011 – Apr. 22, 2011
Oceanis
A
2001
75,211
$18,000
Bunge S.A., Geneva
Jul. 6, 2010 – Sep. 21, 2010
Triton
A
2001
75,336
$17,000
Intermare Transport GmbH, Hamburg, Germany
Sep. 10, 2010 – Nov. 25, 2010
Alcyon
A
2001
75,247
$34,500
Cargill International S.A., Geneva
Nov. 21, 2012 – Feb. 21, 2013
Nirefs13
A
2001
75,311
$21,000
Louis Dreyfus Commodities S.A., Geneva
Dec. 29, 2011 – Mar. 27, 2012
Melite
-
2004
76,436
$24,250
J. Aron & Company, New York
Dec. 29, 2010 – Feb. 28, 2011
             
CAPESIZE VESSELS
Norfolk
-
2002
164,218
$74,750
Corus UK Limited
Jan. 12, 2013 – Mar. 12, 2013
             
Aliki
-
2005
180,235
$45,000
Cargill International S.A., Geneva
Mar. 1, 2011 – Jun. 1, 20113
Salt Lake City
-
2005
171,810
$55,800
Refined Success Limited
Aug. 28, 2012 – Oct. 28, 2012
Sideris GS
D
2006
174,186
$36,000
BHP Billiton Marketing AG
Oct. 15, 2010 – Jan. 14, 20114
Semirio
D
2007
174,261
$31,000
BHP Billiton Marketing AG
Apr.30, 2011 – Jul. 30, 20115
Boston
D
2007
177,828
$52,000
BHP Billiton Marketing AG
Sep. 28, 2011 – Dec. 28, 20111
Houston
D
2009
177,729
$55,000
Shagang Shipping Co.9
Oct. 3, 2014 – Jan. 3, 2015
             
VESSELS UNDER CONSTRUCTION
New York6,7,8
D
2010
177,000
$48,0002,6
Nippon Yusen Kaisha, Tokyo (NYK)
Jan. 8, 2015 – May 8, 20152
   
Total:
2,442,052
      
 
*
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, which started on May 1, 2007, and can only commence at the end of the 48th month, at the daily time charter rate of $48,500.
4
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, which started on November 30, 2006, and can only commence at the end of the 48th month, at the daily time charter rate of $48,500.
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, which started on June 15, 2007, and can only commence at the end of the 48th month, at the daily time charter rate of $48,500.
6
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.
7
Latest possible delivery to owners during second quarter of 2010.
8
Hull H1107.
9
A guaranteed nominee of the Jiangsu Shagang Shipping Group Co.
10
Based on latest information received from charterers.
11
Estimated date.
12
Vessel drydocked from January 23, 2010 to February 1, 2010.
13
Vessel drydocked from January 27, 2010 to February 12, 2010.


 
 
 


Summary of Selected Financial & Other Data

   
Three Months Ended December 31,
    
Year Ended December 31,
  
   
2009
    
2008
    
2009
    
2008
  
   
(unaudited)
    
(unaudited)
              
INCOME STATEMENT DATA (in thousands of US Dollars):
        
Voyage and time charter revenues
   $ 58,640     $ 84,339     $ 239,342     $ 337,391  
Voyage expenses
     2,896       4,835       11,965       15,003  
Vessel operating expenses
     11,310       9,919       41,369       39,899  
Net income
     27,589       54,160       121,498       221,699  
FLEET DATA
                                
Average number of vessels
     19.7       19.0       19.2       18.9  
Number of vessels
     20.0       19.0       20.0       19.0  
Weighted average age of fleet (in years)
     4.9       4.3       4.9       4.3  
Ownership days
     1,813       1,748       7,000       6,913  
Available days
     1,798       1,735       6,930       6,892  
Operating days
     1,779       1,711       6,857       6,862  
Fleet utilization
     98.9 %     98.6 %     98.9 %     99.6 %
AVERAGE DAILY RESULTS
                                
Time charter equivalent (TCE) rate (1)
   $ 31,003     $ 45,824     $ 32,811     $ 46,777  
Daily vessel operating expenses (2)
   $ 6,238     $ 5,674     $ 5,910     $ 5,772  
                                 
(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, February 23, 2010.
 
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 1-877-407-8291 (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 on www.dianashippinginc.com.  A telephone replay will be available by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers), and providing the Account number 362 and Replay ID number 344142.

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.

(See financial tables attached)


 
 
 


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 December 31,
    
Year Ended December 31,
  
   
2009
    
2008
    
2009
    
2008
  
   
(unaudited)
    
(unaudited)
              
 REVENUES:
                        
  Voyage and time charter revenues
   $ 58,640     $ 84,339     $ 239,342     $ 337,391  
                                 
 EXPENSES:
                                
 Voyage expenses
     2,896       4,835       11,965       15,003  
 Vessel operating expenses
     11,310       9,919       41,369       39,899  
 Depreciation and amortization of deferred charges
     11,655       11,016       44,686       43,259  
 General and administrative expenses
     4,781       3,106       17,464       13,831  
 Foreign currency losses (gains)
     (92 )     (84 )     (478 )     (438 )
 Operating income
     28,090       55,547       124,336       225,837  
                                 
 OTHER INCOME (EXPENSES):
                                
 Interest and finance costs
     (856 )     (1,451 )     (3,284 )     (5,851 )
 Interest Income
     240       64       951       768  
 Gain / (loss) from financial instruments
     115       -       (505 )     -  
 Insurance settlement for vessel un-repaired damages
     -       -       -       945  
                                 
 Total other income (expenses), net
     (501 )     (1,387 )     (2,838 )     (4,138 )
                                 
 Net Income
   $ 27,589     $ 54,160     $ 121,498     $ 221,699  
                                 
Earnings/(losses)  per common share, basic and diluted
   $ 0.34     $ 0.72     $ 1.55     $ 2.97  
                                 
Weighted average number of common shares, basic
     80,516,863       74,377,731       78,282,775       74,375,686  
                                 
Weighted average number of common shares, diluted
     80,695,378       74,377,731       78,385,464       74,558,254  
                                 

 
 
 


             
BALANCE SHEET DATA
            
   
December 31,
  
   
2009
    
2008
  
ASSETS
            
             
 Cash and cash equivalents
     282,438       62,033  
 Other current assets
     14,718       6,521  
 Advances for vessels under construction and acquisitions and other vessel costs
     29,630       27,199  
 Vessels' net book value
     979,343       960,431  
 Other fixed assets, net
     200       136  
 Other non-current assets
     2,639       886  
 Prepaid charter revenue, non-current portion
     11,457       -  
Total assets
     1,320,425       1,057,206  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
 Current liabilities
     32,386       20,012  
 Long-term debt
     276,081       238,094  
 Deferred revenue, non-current portion
     11,244       22,502  
 Other non-current liabilities
     1,389       1,122  
 Total stockholders' equity
     999,325       775,476  
Total liabilities and stockholders' equity
     1,320,425       1,057,206  
                 
                 

OTHER FINANCIAL DATA
                        
   
Three Months Ended December 31,
    
Year Ended December 31,
  
   
2009
    
2008
    
2009
    
2008
  
   
(unaudited)
    
(unaudited)
              
 Net cash from operating activities
   $ 40,473     $ 63,024     $ 151,903     $ 261,151  
 Net cash from / (used in) investing activities
     (22,645 )     (273 )     (73,081 )     (108,662 )
 Net cash from / (used in) financing activities
     12,972       (5,479 )     141,583       (107,182 )