d857194_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 February 2008
 
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): ___
 
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: ___
 
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):
 


INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this report on Form 6-K as Exhibit 1 is a press release dated February 15, 2008 of Diana Shipping Inc. (the “Company”) announcing that it has reported financial results for the fourth quarter and year ended December 31, 2007 and declared a cash dividend of 60 cents per share for the fourth quarter.



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 FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2007

DECLARES CASH DIVIDEND OF 60 CENTS PER SHARE
FOR THE FOURTH QUARTER


ATHENS, GREECE, February 15, 2008 – 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 $36.4 million for the fourth quarter of 2007.  This compared to net income and net income available to common stockholders of $19.4 million reported in the fourth quarter of 2006.

Voyage and time charter revenues were $58.9 million for the fourth quarter of 2007, compared to $35.2 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 full year 2007 amounted to $134.2 million.  This compared to net income of $61.1 million and net income available to common stockholders of $40.8 million for 2006. Net income for 2007 also included gains of $21.5 million relating to the sale of the Pantelis SP realized in July 2007. Voyage and time charter revenues were $190.5 million for 2007, compared to $116.1 million for 2006.

Dividend declaration
The Company has declared a cash dividend on its common stock of $0.60 per share, based on its results of operations during the fourth quarter ended December 31, 2007. The cash dividend will be payable on or about March 6, 2008 to shareholders of record as of February 29, 2008. The Company has 74.4 million shares of common stock outstanding.




Fleet Employment Profile (As of February 13, 2008)
Currently Diana’s fleet is employed as follows:
 
  Name
Sister ships3
Year Built
DWT
Employment 1
  Charter Expiration2
Nirefs
A
2001
75,311
$76,000
Mar. 7, 20088
Alcyon
A
2001
75,247
$22,582
Feb 20, 2008 – Feb 22, 2008
       
$34,500
Nov 22, 2012 – Feb 22, 20139
Triton
A
2001
75,336
$24,400
Oct. 17, 2009 – Jan 17, 20104
Oceanis
A
2001
75,211
$40,000
Jul 29, 2009 – Oct 29, 2009
Dione
A
2001
75,172
$82,000
Jan 7, 2009 – Mar 7, 2009
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
$55,000
Jan 14, 2009 – Mar 14, 2009
Clio
B
2005
73,691
$27,000
Jan 27, 2009 – Mar 27, 2009
Thetis
B
2004
73,583
$60,250
Sep 2, 2008 – Nov 2, 2008
Naias
B
2006
73,546
$34,000
Aug 24, 2009 – Oct 24, 2009
Erato
C
2004
74,444
$80,300
Jan 1, 2009 – Mar 1, 2009
Coronis
C
2006
74,381
$27,500
Jan 18, 2009 – Apr 9, 2009
Sideris GS
D
2006
174,186
$43,000
Nov 30, 2008
       
$39,000
Nov 30, 2009
       
$36,000
Oct 15, 2010 – Jan 15, 20115
Aliki
-
2005
180,235
$52,000
May 1, 2009
       
$45,000
Mar 1, 2011 – Jun 1, 20115
Semirio
D
2007
174,261
$51,000
Jun 15, 2009
       
$31,000
Apr 30, 2011 – Jul 30, 20115
Boston
D
2007
177,828
$52,000
Sep 28, 2011 – Dec 28, 20116
Salt Lake City
-
2005
171,810
$55,800
Aug 28, 2012 – Oct 28, 2012
Norfolk10
-
2002
164,218
$74,750
Jan 12, 2013 – Mar 12, 2013
Hull H11077
D
2010
177,000
-
-
Hull H11087
D
2010
177,000
-
-
   
 Total:
  2,364,887
    
 
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  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.
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 and can only commence at the end of the 48th month, at the daily time charter rate of $48,500.
6  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.
7  Expected to be delivered to owners in the second quarter of 2010.
8  Based on estimated voyage duration of about 60 days.
9  Assumes latest possible redelivery date from previous charterer.
10 Vessel delivered to owners on February 11, 2008 and the charter commenced on February 12, 2008.


Summary of Selected Financials & Other Data

   
Three Months Ended
December 31,
    
Year Ended
December 31,
  
   
2007
    
2006
    
2007
    
2006
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
INCOME STATEMENT DATA (in thousands of US Dollars):
        
Voyage and time charter revenues
   $ 58,889     $ 35,184     $ 190,480     $ 116,101  
Voyage expenses
     2,669       1,732       8,697       6,059  
Vessel operating expenses
     8,506       6,226       29,332       22,489  
Net income
     36,373       19,425       134,220       61,063  
 Net income available to common stockholders
     36,373       19,425       134,220       40,796  
FLEET DATA
                                
Average number of vessels
     16.8       14.4       15.9       13.4  
Number of vessels
     18.0       15.0       18.0       15.0  
Weighted average age of fleet (in years)
     3.4       3.7       3.4       3.7  
Ownership days
     1,542       1,321       5,813       4,897  
Available days
     1,542       1,321       5,813       4,856  
Operating days
     1,531       1,319       5,771       4,849  
Fleet utilization
     99.3 %     99.8 %     99.3 %     99.9 %
AVERAGE DAILY RESULTS
                                
Time charter equivalent (TCE) rate (1)
   $ 36,459     $ 25,323     $ 31,272     $ 22,661  
Daily vessel operating expenses (2)
   $ 5,516     $ 4,713     $ 5,046     $ 4,592  
_____________
(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 9:00 A.M. (Eastern Standard Time) on Friday, February 15, 2008.

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 1-866-225-8754 (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 3841276.

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)



DIANA SHIPPING INC.
  
FINANCIAL TABLES
  
Expressed in thousands of U.S. Dollars, except share, per day and fleet data
  
                         
CONSOLIDATED STATEMENTS OF INCOME
  
                         
   
Three Months Ended
December 31,
    
Year Ended
December 31,
  
   
2007
    
2006
    
2007
    
2006
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
        
 REVENUES:
                        
  Voyage and time charter revenues
     58,889       35,184     $ 190,480     $ 116,101  
                                 
 EXPENSES:
                                
 Voyage expenses
     2,669       1,732       8,697       6,059  
 Vessel operating expenses
     8,506       6,226       29,332       22,489  
 Depreciation and amortization of deferred charges
     7,595       4,728       24,443       16,709  
 Management fees
     -       -       -       573  
 Executive management services and rent
     -       -       -       76  
 General and administrative expenses
     5,082       1,932       11,718       6,331  
 Gain on vessel sale
     -       -       (21,504 )     -  
 Foreign currency losses (gains)
     14       26       (144 )     (52 )
 Operating income
     35,023       20,540       137,938       63,916  
                                 
 OTHER INCOME (EXPENSES):
                                
 Interest and finance costs
     (627 )     (1,317 )     (6,394 )     (3,886 )
 Interest Income
     1,977       202       2,676       1,033  
                                 
 Total other income (expenses), net
     1,350       (1,115 )     (3,718 )     (2,853 )
                                 
 Net Income
     36,373     $ 19,425     $ 134,220     $ 61,063  
                                 
Preferential deemed dividend
     -       -       -       (20,267 )
                                 
 Net income available to common stockholders
     36,373     $ 19,425     $ 134,220     $ 40,796  
                                 
Earnings per common share, basic and diluted
     0.49     $ 0.37     $ 2.11     $ 0.82  
                                 
Weighted average number of common shares, basic and diluted
     74,375,000       53,050,000       63,748,973       49,528,904  
                                 
                                 



BALANCE SHEET DATA
                
       
December 31,
  
       
2007
    
2006
  
ASSETS
      
(unaudited)
        
                 
 Cash and cash equivalents
         16,726       14,511  
 Other current assets
         4,788       4,551  
 Advances for vessels under construction and acquisitions and other vessel costs
     53,104       24,347  
 Vessels' net book value
         867,632       464,439  
 Other fixed assets, net
         956       897  
 Other non-current assets
         1,136       1,930  
Total assets
         944,342       510,675  
                     
LIABILITIES AND STOCKHOLDERS' EQUITY
                  
                     
 Current liabilities
         20,964       7,636  
 Long-term debt
         98,819       138,239  
 Deferred revenue, non-current portion
         23,965       146  
 Other non-current liabilities
         1,120       1,551  
 Total stockholders' equity
         799,474       363,103  
Total liabilities and stockholders' equity
         944,342       510,675  
                     
                     
 
OTHER FINANCIAL DATA
                        
                         
   
Three Months Ended
December 31,
    
Year Ended
December 31,
  
   
2007
    
2006
    
2007
    
2006
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
        
 Net cash from operating activities
   $ 50,562     $ 25,547     $ 148,959     $ 82,370  
 Net cash used in investing activities
     (256,120 )     (97,306 )     (409,085 )     (193,096 )
 Net cash from financing activities
     31,862       77,860       262,341       104,007  
 


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 20, 2008
By:
/s/ Anastassis Margaronis
   
Anastassis Margaronis
President






SK 23159 0002 857194