d1269702_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 2012
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 to this Report on Form 6-K as Exhibit 99.1 is a press release dated February 28, 2012 of Diana Shipping Inc. (the "Company") announcing the Company's financial results for the fourth quarter and year ended December 31, 2011.

 

 
 
 

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 28, 2012
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, 2011

 
ATHENS, GREECE, February 28, 2012 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the ownership and operation of dry bulk vessels, today reported net income of $20.2 million for the fourth quarter of 2011, compared to net income of $32.3 million reported in the fourth quarter of 2010.
 
Time charter revenues were $57.4 million for the fourth quarter of 2011, compared to $73.0 million for the same period of 2010, mainly due to reduced time charter rates and the deconsolidation of Diana Containerships Inc., in January 2011. The decrease in time charter revenues was partly offset by revenues derived from the increase in ownership days resulting from the addition to the Company's fleet of the vessels Alcmene and Arethusa in November 2010 and July 2011, respectively.
 
Net income to Diana Shipping Inc. for 2011 amounted to $107.5 million, compared to net income of $128.8 million for 2010. Time charter revenues were $255.7 million for 2011, compared to $275.4 million for 2010.
 

 
 
 
 
 
Fleet Employment Profile (As of February 24, 2012)
Currently Diana's fleet is employed as follows:
 
 
Vessel
Sister Ships*
Gross Rate (USD Per Day)
Com**
Charterer
Delivery Date to Charterer
Redelivery Date to Owners***
Notes
 
BUILT    DWT
 
 
 
 
 
 
 
 
Panamax Bulk Carriers
 
 
 
 
 
 
 
 
 
1 
CORONIS
C
$24,000
5.00%
Siba Ships Asia Pte. Ltd.
6-Apr-10
8-Mar-12
1 
 
 
 
 
 
 
 
 
 
 
2006    74,381
 
$10,600
5.00%
EDF Trading Limited, London
8-Mar-12
23-Nov-13 - 23-Jun-14
 
 
 
 
 
 
 
 
 
 
2 
ERATO
C
$20,500
5.00%
C Transport Panamax Ltd., Isle of Man
4-Mar-10
26-Nov-11
2 
 
 
 
$12,200
5.00%
Hyundai Merchant Marine Co., Ltd., Seoul, South Korea
26-Nov-11
26-Dec-12 - 10-Apr-13
 
 
2004    74,444
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
ARETHUSA
B
$13,250
5.00%
Cargill International S.A., Geneva
8-Jul-11
24-May-12 - 23-Aug-12
3 
 
2007     73,593
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 
NAIAS
B
$19,750
5.00%
J. Aron & Company, New York
24-Sep-10
24-Aug-12 - 24-Oct-12
 
 
2006    73,546
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 
CLIO
B
$25,000
5.00%
Daelim Corporation, Seoul
8-May-10
22-Feb-12
4 
 
 
 
$10,750
5.00%
Cargill International S.A., Geneva
22-Feb-12
22-Aug-13 - 22-Feb-14
 
 
2005    73,691
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6 
CALIPSO
B
$13,750
5.00%
Cargill International S.A., Geneva
20-Jul-11
11-Oct-11
5 
 
2005    73,691
 
$12,250
5.00%
Louis Dreyfus Commodities Suisse S.A., Geneva
11-Oct-11
11-Aug-13 - 11-Dec-13
6 
 
 
 
 
 
 
 
 
 
7 
PROTEFS
B
$11,750
4.75%
Cargill International S.A., Geneva
6-Aug-11
6-Jul-12 - 6-Oct-12
7 
 
2004    73,630
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8 
THETIS
B
$13,750
5.00%
Cargill International S.A., Geneva
23-Feb-11
28-Jan-12
8 
 
 
 
$10,500
5.00%
EDF Trading Limited, London
22-Feb-12
22-Aug-13 - 22-Jun-14
 
 
2004    73,583
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9 
DIONE
A
$20,500
5.00%
Louis Dreyfus Commodities Suisse S.A., Geneva
26-Sep-10
26-Jul-12 - 26-Nov-12
 
 
2001    75,172
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 
DANAE
A
$15,600
5.00%
Hyundai Merchant Marine Co., Ltd., Seoul, South Korea
18-Apr-11
18-Mar-13 - 18-May-13
 
 
2001    75,106
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vessel
Sister Ships*
Gross Rate (USD Per Day)
Com**
Charterer
Delivery Date to Charterer
Redelivery Date to Owners***
Notes
 
11 
OCEANIS
A
$19,750
5.00%
China National Chartering Co. Ltd. (Sinochart BJ), Beijing
17-Sep-10
17-Aug-12 - 1-Nov-12
 
 
2001    75,211
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 
TRITON
A
$19,500
4.75%
Resource Marine Pte., Ltd, Singapore
11-Dec-10
11-Nov-13 - 11-Feb-14
9 
 
2001    75,336
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13 
ALCYON
A
$34,500
4.75%
Cargill International S.A., Geneva
21-Feb-08
21-Nov-12 - 21-Feb-13
 
 
2001    75,247
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14 
NIREFS
A
$21,000
5.00%
Louis Dreyfus Commodities Suisse S.A., Geneva
12-Feb-10
18-Dec-11
 
 
 
 
$12,250
5.00%
Morgan Stanley Capital Group Inc.
18-Dec-11
18-Jan-13 - 18-Apr-13
10 
 
2001    75,311
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15 
MELITE
 
$16,500
5.00%
Cargill International S.A., Geneva
1-Feb-11
1-Jan-13 - 1-Mar-13
11 
 
2004     76,436
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16 
LETO
 
$12,900
5.00%
EDF Trading Limited, London
17-Jan-12
17-Jan-14 - 17-Nov-14
 
 
2010     81,297
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Post-Panamax Bulk Carrier
 
 
 
 
 
 
 
 
 
17 
ALCMENE
 
$20,250
5.00%
Cargill International S.A., Geneva
20-Nov-10
5-Oct-12 - 4-Jan-13
 
 
2010     93,193
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capesize Bulk Carriers
 
 
 
 
 
 
 
 
 
18 
NORFOLK
 
$74,750
3.75%
Corus UK Limited
12-Feb-08
12-Jan-13 - 12-Mar-13
12 
 
2002  164,218
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19 
ALIKI
 
$26,500
5.00%
Minmetals Logistics Group Co. Ltd., Beijing
1-Mar-11
1-Feb-16 - 1-Apr-16
 
 
2005  180,235
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 
SALT LAKE CITY
 
$55,800
5.00%
Refined Success Limited
28-Sep-07
28-Aug-12 - 28-Oct-12
 
 
2005  171,810
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21 
SIDERIS GS
D
$30,500
5.00%
BHP Billiton Marketing AG
16-Oct-10
16-Feb-13 - 16-Jun-13
13 
 
2006  174,186
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22 
SEMIRIO
D
$17,350
5.00%
Cargill International S.A., Geneva
30-May-11
15-Mar-13 - 14-Aug-13
 
 
2007  174,261
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vessel
Sister Ships*
Gross Rate (USD Per Day)
Com**
Charterer
Delivery Date to Charterer
Redelivery Date to Owners***
Notes
 
23 
BOSTON
D
4TC AVG
5.00%
BHP Billiton Marketing AG
29-Sep-11
17-Oct-11
14 
 
2007  177,828
 
$14,000
5.00%
Morgan Stanley Capital Group Inc.
29-Oct-11
29-Aug-13 - 29-Dec-13
15,16
 
 
 
 
 
 
 
 
 
24 
HOUSTON
D
$55,000
4.75%
Shagang Shipping Co.
3-Nov-09
3-Oct-14 - 3-Jan-15
17 
 
2009  177,729
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25 
NEW YORK
D
$48,000
3.75%
Nippon Yusen Kaisha, Tokyo (NYK)
3-Mar-10
3-Jan-15 - 3-May-15
 
 
2010  177,773
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newcastlemax Bulk Carrier
 
 
 
 
 
 
 
 
 
26 
LOS ANGELES
E
$18,000
5.00%
EDF Trading Limited, London
9-Feb-12
9-Dec-15 - 9-Apr-16
 
 
2012  206,104
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vessel Under Construction
 
 
 
 
 
 
 
 
 
27 
PHILADELPHIA
E
$18,000
5.00%
EDF Trading Limited, London
30-Apr-12
30-Dec-15 - 30-Jun-16
18,19,20
 
2012  206,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
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.
***
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
Based on latest information received by the charterers.
2
C Transport Panamax Ltd. has agreed to compensate the Owners for the difference between the new rate and the previous rate from November 26, 2011 to December 4, 2011.
3
Vessel off-hire for drydocking from December 12, 2011 to December 23, 2011.
4
The previous charterers, Daelim Corporation, Seoul, have agreed to compensate the owners for the early redelivery of the Clio by paying US$17,000 gross per day, minus 5% commission paid to third parties, starting from the date of redelivery to owners, on February 22, 2012,  to the minimum agreed redelivery date, April 8, 2012.
5
Period extended for one (1) or two (2) laden legs in charterers' option at US$ 13,750 per day.
6
Vessel off-hire for unscheduled maintenance from October 29, 2011 to November 4, 2011.
7
Vessel off-hire for unscheduled maintenance from November 13, 2011 to November 17, 2011.
8
Vessel off-hire for drydocking from January 28, 2012 to February 22, 2012.
9
Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank Limited.
10
Louis Dreyfus Commodities S.A. has agreed to compensate the Owners for the difference between the new rate and the previous rate from the redelivery date to December 28, 2011.
11
Vessel off-hire for drydocking from November 23, 2011 to December 8, 2011.
12
Since September  2010 Charterer's name has changed to Tata Steel UK, Limited.
13
Vessel off-hire for drydocking from October 11, 2011 to October 26, 2011.
14
Daily rate based on the average rate of four pre-determined Capesize time charter routes as published by the Baltic Exchange.
15
Vessel off-hire for drydocking from October 17, 2011 to October 29, 2011.
16
Morgan Stanley Capital Group Inc. has the option to employ the vessel for a further minimum eleven (11) to a maximum thirteen (13) month period at a gross rate of US$15,000 per day starting twenty-four (24) months after delivery of the vessel to the charterer.
17
Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Group Co.
18
Year of delivery and dwt are based on shipbuilding contract.
19
This newbuilding is also referred to as Hull H1235.
20
Based on expected date of delivery to owners.

 
 
 

Summary of Selected Financial & Other Data
  
 
  
For the three months ended
December 31,
    
For the years ended
December 31,
  
 
  
2011
    
2010
    
2011
    
2010
  
 
  
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
INCOME STATEMENT DATA (in thousands of U.S. Dollars)
  
Time charter revenues
   $ 57,370     $ 72,976     $ 255,669     $ 275,448  
Voyage expenses
     1,931       3,514       10,597       12,392  
Vessel operating expenses
     14,868       14,927       55,375       52,585  
Net income attributed to Diana Shipping Inc.
     20,241       32,321       107,497       128,779  
FLEET DATA
  
Average number of vessels
     24.0       24.5       23.6       22.9  
Number of vessels
     24.0       25.0       24.0       25.0  
Weighted average age of dry bulk fleet (in years)
     6.3       5.4       6.3       5.4  
Weighted average age of containerships (in years)
     -       0.6       -       0.6  
Ownership days
     2,208       2,251       8,609       8,348  
Available days
     2,156       2,198       8,474       8,208  
Operating days
     2,139       2,188       8,418       8,180  
Fleet utilization
     99.2 %     99.5 %     99.3 %     99.7 %
AVERAGE DAILY RESULTS
  
Time charter equivalent (TCE) rate (1)
   $ 25,714     $ 31,602     $ 28,920     $ 32,049  
Daily vessel operating expenses (2)
   $ 6,734     $ 6,631     $ 6,432     $ 6,299  
 
________________

(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 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 Time) on Tuesday, February 28, 2012.
 
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 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 Account number 362 and Replay ID number 387625.
 
 
 
 
 

 
About the Company

Diana Shipping Inc. is a leading global provider of shipping transportation services through the ownership and operation of dry bulk vessels. The Company's vessels are employed primarily on medium to long-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, 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
  
 
  
 
    
 
    
 
    
 
  
 
  
For the three months ended December 31,
    
For the years ended December 31,
  
 
  
2011
    
2010
    
2011
    
2010
  
 
  
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
REVENUES:
  
 
    
 
    
 
    
 
  
Time charter revenues
   $ 57,370     $ 72,976     $ 255,669     $ 275,448  
Other revenues
     365       -       1,117       -  
 
                                
EXPENSES:
                                
Voyage expenses
     1,931       3,514       10,597       12,392  
Vessel operating expenses
     14,868       14,927       55,375       52,585  
Depreciation and amortization of deferred charges
     14,109       14,254       55,278       53,083  
General and administrative expenses
     6,275       7,136       25,123       25,347  
Foreign currency gains
     (161 )     (94 )     (503 )     (1,598 )
Operating income
     20,713       33,239       110,916       133,639  
 
                                
OTHER INCOME / (EXPENSES):
                                
Interest and finance costs
     (1,254 )     (1,452 )     (4,924 )     (5,213 )
Interest income
     336       218       1,033       920  
Gain / (Loss) from derivative instruments
     217       308       (737 )     (1,477 )
Income from investment in Diana Containerships Inc.
     229       -       1,207       -  
Total other expenses, net
     (472 )     (926 )     (3,421 )     (5,770 )
 
                                
Net Income
   $ 20,241     $ 32,313     $ 107,495     $ 127,869  
 
                                
Loss assumed by non-controlling interests
     -       8       2       910  
 
                                
Net income attributed to Diana Shipping Inc.
     20,241       32,321       107,497       128,779  
 
                                
Earnings per common share, basic
   $ 0.25     $ 0.40     $ 1.33     $ 1.60  
 
                                
Earnings per common share, diluted
   $ 0.25     $ 0.40     $ 1.33     $ 1.59  
 
                                
Weighted average number of common shares, basic
     81,180,109       80,767,241       81,081,774       80,682,770  
 
                                
Weighted average number of common shares, diluted
     81,270,341       80,984,846       81,124,348       80,808,232  

 
 
 


CONDENSED CONSOLIDATED BALANCE SHEET DATA
    
 
  
(in thousands of US Dollars)
    
 
  
 
  
 
  
 
  
2011
    
2010
  
ASSETS
  
(unaudited)
    
(unaudited)
  
 
  
 
    
 
  
 Cash and cash equivalents
   $ 416,674     $ 345,414  
 Other current assets
     16,017       9,235  
 Advances for vessels under construction and acquisitions and other vessel costs
     63,440       35,280  
 Vessels' net book value
     1,046,719       1,160,850  
 Other fixed assets, net
     21,659       21,842  
 Other non-current assets
     39,962       12,768  
Total assets
   $ 1,604,471     $ 1,585,389  
 
                
LIABILITIES AND STOCKHOLDERS' EQUITY
                
 
                
 Current liabilities, including current portion of long-term debt
   $ 48,095     $ 32,510  
 Long-term debt, net of current portion
     345,638       376,303  
 Other non-current liabilities
     1,860       6,646  
 Total stockholders' equity
     1,208,878       1,169,930  
Total liabilities and stockholders' equity
   $ 1,604,471     $ 1,585,389  
 
 
OTHER FINANCIAL DATA
  
 
  
For the three months ended December 31,
    
For the years ended
December 31,
  
 
  
2011
    
2010
    
2011
    
2010
  
 
  
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
 Net Cash provided by Operating Activities
   $ 33,707     $ 50,351     $ 154,230     $ 178,292  
 Net Cash used in Investing Activities
     (9,613 )     (54,595 )     (90,428 )     (252,313 )
 Net Cash provided by / (used in) Financing Activities
     (2,687 )     38,463       7,458       136,997