d1045837_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 November 2009
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 November 10, 2009 announcing its financial results for the third quarter and nine months ended September 30, 2009.
 
The information contained in this Report on Form 6-K 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:  November 10, 2009
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 THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2009


ATHENS, GREECE, November 10, 2009 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $28.7 million for the third quarter of 2009.  This compared to net income of $57.6 million reported in the third quarter of 2008.

Voyage and time charter revenues were $58.2 million for the third quarter of 2009, compared to $87.4 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 nine months ended September 30, 2009 amounted to $93.9 million, compared to net income of $167.5 million for the same period of 2008. Voyage and time charter revenues were $180.7 million for the nine months ended September 30, 2009, compared to $253.1 million for the same period of 2008.

Chairman and Chief Executive Officer's Comments

"Diana Shipping Inc. has again produced strong results during the third quarter of 2009.  We have delivered a profitable quarter despite the continued turbulent economic climate.  The Company's cash position has been strengthened substantially by our recent results, and our debt level remains one of the lowest among publicly trading shipping companies.  We have further enhanced our earning potential by recently adding a 20th vessel to our fleet with an attractive charter, and are expecting delivery of an additional Capesize vessel with a profitable charter in February 2010," said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc.

Mr. Palios further stated, "We believe Diana Shipping remains well-positioned to manage through the current difficult period and to build value for the future.  Our intention is to continue pursuing our strategy to take advantage of the growth opportunities presented during this low phase of the shipping cycle.  Diana Shipping intends to purchase attractively priced vessels in a gradual and disciplined manner over the next two years, using our robust balance sheet and cash position, together with new debt as appropriate, to generate value for our shareholders."
 
 

 
Fleet Employment Profile (As of November 10, 2009)
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
Nov. 27, 2009 – Feb. 27, 2010
 
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
Dec. 26, 2009 – Mar. 26, 2010
Calipso
B
2005
73,691
$9,400
Cargill International S.A., Geneva
Dec. 24, 2009 – Mar. 24, 2010
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
Dec. 12, 2009 – Mar. 12, 2010
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
Nirefs
A
2001
75,311
$60,500
Cosco Bulk Carrier Co. Ltd.
Feb. 3, 2010 – Apr. 3, 2010
 
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
$39,000
BHP Billiton Marketing AG
Nov. 30, 2009
       
$36,000
BHP Billiton Marketing AG
Oct. 15, 2010 – Jan. 15, 20113
Semirio
D
2007
174,261
$31,000
BHP Billiton Marketing AG
Apr.30, 2011 – Jul. 30, 20113
Boston
D
2007
177,828
$52,000
BHP Billiton Marketing AG
Sep. 28, 2011 – Dec. 28, 20111
Houston7
D
2009
177,729
$55,000
Shagang Shipping Co.8
Oct. 3, 2014 – Jan. 3, 2015
 
VESSELS UNDER CONSTRUCTION
 
New York4,5,6
D
2010
177,000
$48,0002,4
Nippon Yusen Kaisha, Tokyo (NYK)
Jan. 31, 2015 – May 31, 20152
   
Total
2,365,616
      


*   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 and can only commence at the end of the 48th month, at the daily time charter rate of US$48,500.
4 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.
5 Latest possible delivery to owners during second quarter of 2010.
6 Hull H1107.
7 Hull H1138.
8 A guaranteed nominee of the Jiangsu Shagang Shipping Group Co.


Summary of Selected Financial & Other Data

   
Three Months Ended September 30,
    
Nine months Ended September 30,
  
   
2009
    
2008
    
2009
    
2008
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
INCOME STATEMENT DATA (in thousands of US Dollars):
        
Voyage and time charter revenues
   $ 58,223     $ 87,408     $ 180,702     $ 253,052  
Voyage expenses
     2,778       3,528       9,069       10,168  
Vessel operating expenses
     10,310       10,908       30,059       29,980  
Net income
     28,660       57,591       93,909       167,539  
FLEET DATA
                                
Average number of vessels
     19.0       19.0       19.0       18.9  
Number of vessels
     19.0       19.0       19.0       19.0  
Weighted average age of fleet (in years)
     5.0       4.0       5.0       4.0  
Ownership days
     1,748       1,748       5,187       5,165  
Available days
     1,713       1,740       5,132       5,157  
Operating days
     1,708       1,739       5,078       5,151  
Fleet utilization
     99.7 %     99.9 %     98.9 %     99.9 %
AVERAGE DAILY RESULTS
                                
Time charter equivalent (TCE) rate (1)
   $ 32,367     $ 48,207     $ 33,444     $ 47,098  
Daily vessel operating expenses (2)
   $ 5,898     $ 6,240     $ 5,795     $ 5,804  
 _____________
(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, November 10, 2009.
 
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 1-877-870-4399 (for U.S.-based callers) or 1-706-679-6101 (for international callers), and providing the operator with the Conference ID number 35991230.

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 1-800-642-1687 (for U.S.-based callers) or 1-706-645-9291 (for international callers), and providing the Conference ID number 35991230.
 
 
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 September 30,
    
Nine months Ended September 30,
  
   
2009
    
2008
    
2009
    
2008
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
 REVENUES:
                        
  Voyage and time charter revenues
     58,223     $ 87,408     $ 180,702     $ 253,052  
                                 
 EXPENSES:
                                
 Voyage expenses
     2,778       3,528       9,069       10,168  
 Vessel operating expenses
     10,310       10,908       30,059       29,980  
 Depreciation and amortization of deferred charges
     11,195       11,034       33,031       32,243  
 General and administrative expenses
     4,402       3,267       12,683       10,725  
 Foreign currency losses (gains)
     (89 )     (248 )     (386 )     (354 )
 Operating income
     29,627       58,919       96,246       170,290  
                                 
 OTHER INCOME (EXPENSES):
                                
 Interest and finance costs
     (732 )     (1,384 )     (2,428 )     (4,400 )
 Interest Income
     277       56       711       704  
 Gain / (loss) from financial instruments
     (512 )     -       (620 )     -  
 Insurance settlement for vessel un-repaired damages
     -       -       -       945  
                                 
 Total other income (expenses), net
     (967 )     (1,328 )     (2,337 )     (2,751 )
                                 
 Net Income
     28,660     $ 57,591     $ 93,909     $ 167,539  
                                 
Less: Dividends paid on restricted stock
     -       (69 )     -       (178 )
                                 
 Net income available to common shareholders
     28,660     $ 57,522     $ 93,909     $ 167,361  
                                 
Earnings/(losses)  per common share, basic
     0.36     $ 0.77     $ 1.21     $ 2.25  
                                 
Earnings/(losses)  per common share, diluted
     0.36     $ 0.77     $ 1.21     $ 2.25  
                                 
Weighted average number of common shares, basic
     80,415,905       74,375,000       77,529,896       74,375,000  
                                 
Weighted average number of common shares, diluted
     80,517,771       74,377,885       77,615,311       74,377,694  
                                 
 
 
 

 
                 
BALANCE SHEET DATA
                
       
September 30,
    
December 31,
  
       
2009
    
2008
  
ASSETS
      
(unaudited)
        
                 
 Cash and cash equivalents
         251,638       62,033  
 Other current assets
         4,108       6,521  
 Advances for vessels under construction and acquisitions and other vessel costs
     69,986       27,199  
 Vessels' net book value
         927,923       960,431  
 Other fixed assets, net
         118       136  
 Investments in time deposits
         7,600       -  
 Other non-current assets
         1,905       886  
 Prepaid charter revenue, non-current portion
         15,000       -  
Total assets
         1,278,278       1,057,206  
                     
LIABILITIES AND STOCKHOLDERS' EQUITY
                    
                     
 Current liabilities
         77,838       20,012  
 Long-term debt
         214,049       238,094  
 Deferred revenue, non current portion
         13,975       22,502  
 Other non-current liabilities
         1,590       1,122  
 Total stockholders' equity
         970,826       775,476  
Total liabilities and stockholders' equity
         1,278,278       1,057,206  
                     
                     
 
OTHER FINANCIAL DATA
                        
   
Three Months Ended September 30,
    
Nine months Ended September 30,
  
   
2009
    
2008
    
2009
    
2008
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
 Net cash from operating activities
   $ 41,954     $ 67,266     $ 111,430     $ 198,127  
 Net cash from / (used in) investing activities
     (14,088 )     (260 )     (50,436 )     (108,389 )
 Net cash from / (used in) financing activities
     6,035       (84,950 )     128,611       (101,703 )