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 2006
DIANA SHIPPING INC.
(Translation of registrant's name into English)
Diana Shipping Inc.
Pendelis 16
175 64 Palaio Faliro
Athens, Greece
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
----- -----
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
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INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached to this Report on Form 6-K as Exhibit 1 is a copy of the press
release issued by Diana Shipping Inc. (the "Company") on February 15, 2006,
announcing fourth quarter and year 2005 results, the declaration of a cash
dividend for the fourth quarter of 2005 and a conference call and webcast to
discuss financial results.
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 YEAR AND THE FOURTH QUARTER ENDED DECEMBER 31, 2005
DECLARES CASH DIVIDEND OF $0.40 PER SHARE FOR THE FOURTH QUARTER
CONFERENCE CALL AND WEBCAST TO BE HELD FEBRUARY 17, 2006
ATHENS, GREECE, February 15, 2006 - Diana Shipping Inc. (NYSE: DSX), a global
shipping transportation company specializing in dry bulk cargoes, today reported
net income of $65.0 million for the year ended December 31, 2005, representing
an increase of $4.9 million compared to $60.1 million for 2004. Voyage and time
charter revenues were $103.1 million for the year ended December 31, 2005,
compared to $63.8 million for 2004.
For the fourth quarter of 2005, net income was $13.9 million compared to net
income of $31.6 million reported in the same period of 2004. For the fourth
quarter of 2005, voyage and time charter revenues increased by $5.5 million to
$24.0 million compared to $18.5 million reported in the same period of 2004.
During the fourth quarter of 2004, the Company recorded a gain on the sale of
one of its vessels of approximately $20.0 million, which is included in the net
income of both the fourth quarter of 2004 and the year ended December 31, 2004.
Dividend declaration.
The Company has declared a cash dividend on its common stock of $0.40 per share,
based on the Company's results from operations during the quarter ended December
31, 2005. The cash dividend will be payable on or about March 9, 2006 to all
shareholders of record as of February 28, 2006. The Company has 45 million
shares of common stock outstanding.
During the year ended December 31, 2005, there were 9.6 vessels on average
operating in the Company's fleet, as compared with 6.3 vessels during 2004.
Fleet Employment Profile
Currently Diana's fleet is employed as follows:
Sister
Name ships(3) Year Built Age (6) DWT Employment (1) Expiration(2)
------------------ --------- -------------- -------- --------------- ---------------------- -----------------
Nirefs A 2001 4.9 75,311 $ 18,250(4) Mar 04, 2006
Alcyon A 2001 4.9 75,247 $ 22,582 Oct 15, 2007
Triton A 2001 4.8 75,336 $ 11,250 Feb 21, 2006
Oceanis A 2001 4.6 75,211 $ 18,000 Mar 04, 2006
Dione A 2001 5.0 75,172 $ 18,250 Mar 10, 2006
Danae A 2001 5.0 75,106 $ 30,000 Jan 13, 2007
Protefs B 2004 1.3 73,630 4TCs Average(5) Jan 04, 2007
Calipso B 2005 0.9 73,691 4TCs Average(5) Dec 21, 2007
Clio B 2005 0.6 73,691 4TCs Average +$850(5) Jan 02, 2007
Thetis B 2004 1.4 73,583 $ 25,000 Jul 19, 2007
Erato C 2004 1.4 74,444 $ 21,000 Oct 22, 2006
Coronis C 2006 0.0 74,381 $ 21,000 Dec 27, 2006
Pantelis SP - 1999 6.9 169,883 $ 47,500 Jan 25, 2008
---------------
Total: 1,064,686
(1) Gross Time Charter Rate per day.
(2) Estimated dates assuming earliest redelivery by charterers.
(3) Each vessel is a sister ship of the other vessels that have the same
letter.
(4) Plus an additional one-time payment of $365,000 over the duration of the
charter.
(5) Adjustable every 15 days based on the average of four main pre-determined
time charter routes, as published by the Baltic Exchange.
(6) As of December 31, 2005.
Summary of Selected Financials & Other Data
Three Months Ended Year Ended
December 31, December 31,
--------------------------------- ---------------------------------
2005 2004 2005 2004
-------------- -------------- -------------- --------------
(unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA (in thousands of US Dollars):
Voyage and time charter revenues.............. $ 24,005 $ 18,452 $ 103,104 $ 63,839
Voyage expenses............................... 1,291 1,243 6,480 4,330
Vessel operating expenses..................... 4,287 2,747 14,955 9,514
Net income ................................... 13,875 31,570 64,990 60,083
FLEET DATA
Average number of vessels..................... 10.8 7.0 9.6 6.3
Number of vessels............................. 12.0 7.0 12.0 7.0
Weighted average age of fleet (in years)...... 3.8 3.4 3.8 3.4
Ownership days................................ 995 644 3,510 2,319
Available days................................ 984 644 3,471 2,319
Operating days................................ 980 644 3,460 2,315
Fleet utilization............................. 99.6% 100.0% 99.7% 99.8%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1)........ $ 23,083 $ 26,722 $ 27,838 $ 25,661
Daily vessel operating expenses (2)........... $ 4,309 $ 4,266 $ 4,261 $ 4,103
(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 at 9:00 A.M. (Eastern Time) on Friday, February 17, 2006, to discuss
these financial results. 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 1-877-692-2086 (for U.S.-based callers) or 1-973-935-8599
(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 1-877-519-4471 (for U.S.-based
callers) or 1-973-341-3080 (for international callers); callers must use the PIN
number 7005586.
About the Company
-----------------
Diana Shipping Inc. (NYSE: DSX) 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," "except," "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)
DIANA SHIPPING INC.
CONSOLIDATED STATEMENTS OF INCOME
Expressed in thousands of U.S. Dollars, except share, per day and fleet data
Three Months Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
--------------- --------------- --------------- ---------------
(unaudited) (unaudited) (unaudited)
REVENUES:
Voyage and time charter revenues .............. $ 24,005 $ 18,452 $ 103,104 $ 63,839
EXPENSES:
Voyage expenses ........................... 1,291 1,243 6,480 4,330
Vessel operating expenses ................. 4,287 2,747 14,955 9,514
Depreciation and amortization of
deferred charges ..................... 2,976 1,421 9,943 5,087
Management fees ........................... 486 287 1,731 947
Executive management services and rent .... 38 382 455 1,528
General and administrative expenses ....... 841 89 2,871 300
Foreign currency losses (gains) ........... (1) 1 (30) 3
--------------- --------------- --------------- ---------------
Operating income .......................... 14,087 12,282 66,699 42,130
--------------- --------------- --------------- ---------------
OTHER INCOME (EXPENSES):
Interest and finance costs ................ (569) (757) (2,731) (2,165)
Interest Income ........................... 357 63 1,022 136
Gain on sale of vessel .................... - 19,982 - 19,982
--------------- --------------- --------------- ---------------
Total other income (expenses), net ........ (212) 19,288 (1,709) 17,953
--------------- --------------- --------------- ---------------
Net Income..................................... $ 13,875 $ 31,570 $ 64,990 $ 60,083
=============== =============== =============== ===============
Earnings per common share, basic and diluted ... $ 0.34 $ 1.14 $ 1.72 $ 2.17
=============== =============== =============== ===============
Weighted average number of common shares,
basic and diluted............................... 41,358,696 27,625,000 37,765,753 27,625,000
=============== =============== =============== ===============
BALANCE SHEET DATA
Year Ended
December 31,
2005 2004
--------------- ---------------
(unaudited)
ASSETS
------
Cash and cash equivalents ......................... 21,230 1,758
Other current assets............................... 5,367 1,791
Advances for vessels under construction and
acquisitions and other vessel costs........... 4,221 19,234
Vessels' net book value ........................... 307,305 132,853
Other non-current assets........................... 3,826 -
--------------- ---------------
Total assets .................................. $ 341,949 155,636
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities, including current
portion of long term debt...................... 4,667 11,344
Long-term debt, net of current portion ............. 12,859 85,168
Other non-current liabilities....................... 265 72
Total stockholders' equity.......................... 324,158 59,052
--------------- ---------------
Total liabilities and stockholders' equity .... $ 341,949 155,636
=============== ===============
OTHER FINANCIAL DATA
Three Months Ended Year Ended
December 31, December 31,
-------------------------------- -------------------------------
2005 2004 2005 2004
------------- -------------- ------------- -------------
(unaudited) (unaudited) (unaudited)
Net cash from operating activities............... $ 11,592 $ 14,319 $ 69,256 $ 47,379
Net cash from / (used in) investing activities... (77,754) 13,961 (169,241) (11,778)
Net cash from / (used in) financing activities... 57,408 (35,183) 119,457 (41,284)
# # #
SIGNATURES
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 15, 2006 By: /s/ Anastassis Margaronis
--------------------------
Anastassis Margaronis
President
SK 23159.0002 644593