d1020516_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 August 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 to this Report on Form 6-K as Exhibit 1 is a press release dated August 6, 2009 of Diana Shipping Inc. (the "Company") announcing its financial results for the second quarter and six months ended June 30, 2009. 
 
      The information contained in this Report on Form 6-K, except for the section entitled "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:  August 11, 2009
By:
/s/Andreas Michalopoulos
   
Andreas Michalopoulos
Chief Financial Officer and Treasurer




 
 
 

Exhibit 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 SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2009


ATHENS, GREECE, August 6, 2009 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $30.4 million for the second quarter of 2009.  This compared to net income of $56.7 million reported in the second quarter of 2008.

Voyage and time charter revenues were $59.8 million for the second quarter of 2009, compared to $86.8 million for the same period of 2008, due to a decrease in prevailing time charter rates and increased off-hire days.

Net income for the six months ended June 30, 2009 amounted to $65.2 million, compared to net income of $109.9 million for the same period of 2008. Voyage and time charter revenues were $122.5 million for the six months ended June 30, 2009, compared to $165.6 million for the same period of 2008.

Chairman and Chief Executive Officer's Comments

"We are pleased to note that Diana Shipping's second quarter performance was distinguished by profitable operations, a strong cash position and minimal leverage, despite the continuing weakness in overall economic conditions.  The consistent application of our strategies has enabled the Company to deliver a predictable revenue stream from relationships with quality charterers.  At the same time, we have substantially grown our cash position to nearly $218 million and maintained one of the lowest debt levels in our industry," said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc.

Mr. Palios further stated, "We believe that Diana is well-positioned, not only to navigate this turbulent economic cycle, but also to seize upon the opportunities that will be available to strong competitors in the dry bulk sector.  Over time, we plan to take advantage of these opportunities to expand our fleet and enhance our cash generation potential for the benefit of our shareholders.  That said, we believe that the difficult phase of the cycle is far from over in the dry bulk market.  We will therefore be patient and disciplined, gradually deploying our resources as we invest in future opportunities."

 
 
 


Fleet Employment Profile (As of August 5, 2009)
Currently Diana's fleet is employed as follows:
 
 
Name
Sister Ships1
Year Built
DWT
Charterer
Daily Time Charter Hire Rate
Charter Expiration 2
Nirefs
A
2001
75,311
Cosco Bulk Carrier Co. Ltd.
$60,500
Feb. 3, 2010 - Apr. 3, 2010
 
Alcyon
A
2001
75,247
Cargill International S.A., Geneva
$34,500
Nov. 21, 2012 - Feb. 21, 2013
 
Triton
A
2001
75,336
Cargill International S.A., Geneva
$24,400
Oct. 17, 2009 - Jan. 17, 2010
 
Oceanis
A
2001
75,211
Hanjin Shipping Co. Ltd., Seoul
Bunge S.A., Geneva
$40,000
$18,000
Jul. 29, 2009 - Oct. 29, 2009
Jul. 6, 2010 - Sep. 21, 20103
Dione
A
2001
75,172
Louis Dreyfus Commodities S.A., Geneva
$12,000
Jun. 1, 2010 - Sep. 1, 2010
 
Danae
A
2001
75,106
Augustea Atlantica Srl, Naples
$12,000
Jan. 23, 2011 - Apr. 22, 2011
 
Protefs
B
2004
73,630
Hanjin Shipping Co. Ltd., Seoul
$59,000
Aug. 18, 2011 - Nov. 18, 2011
 
Calipso
B
2005
73,691
Cargill International S.A., Geneva
$9,400
Dec. 24, 2009 - Mar. 24, 2010
Clio
B
2005
73,691
Cargill International S.A., Geneva
$11,000
Dec. 26, 2009 - Mar. 26, 2010
Thetis
B
2004
73,583
Cargill International S.A., Geneva
$10,500
Dec. 12, 2009 - Mar. 12, 2010
Naias
B
2006
73,546
Constellation Energy Commodities Group, Baltimore4
J. Aron & Company,
New York
$34,000
 
 
$19,000
Aug. 24, 20095
 
 
Jul. 24, 2010 - Sep. 24, 20105
Erato
C
2004
74,444
Cargill International S.A., Geneva
$15,000
Nov. 27, 2009 - Feb. 27, 2010
Coronis
C
2006
74,381
TPC Korea Co. Ltd., Seoul
$14,000
Feb. 26, 2010 - Apr. 26, 2010
Aliki
-
2005
180,235
Cargill International S.A., Geneva
$45,000
Mar. 1, 2011 - Jun. 1, 2011 6
Salt Lake City
-
2005
171,810
Refined Success Limited
$55,800
Aug. 28, 2012 - Oct. 28, 2012
Norfolk
-
2002
164,218
Corus UK Limited
$74,750
Jan. 12, 2013 - Mar. 12, 2013
Sideris GS
D
2006
174,186
BHP Billiton Marketing
AG
$39,000
$36,000
Nov. 30, 2009
Oct. 15, 2010 - Jan. 15, 2011 6
Semirio
D
2007
174,261
BHP Billiton Marketing
AG
$31,000
Apr. 30, 2011 - Jul. 30, 2011 6
Boston
D
2007
177,828
BHP Billiton Marketing
AG
$52,000
Sep. 28, 2011 - Dec. 28, 2011 7
Hull 1107 (tbn New York)
D
201010
 
177,000
Nippon Yusen Kaisha, Tokyo (NYK)
$48,0008,9
Jan. 31, 2015 - May 31, 20158
Hull 1138 (tbn Houston)
D
2009
 
177,000
 
Jiangsu Shagang Group Co.
$55,000
Oct. 15, 2014 - Jan. 15, 20158
   
 Total:  
2,364,887
      
 

1
Each dry bulk carrier is a "sister ship", or closely similar, to other dry bulk carriers that have the same letter.
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
Based on an estimated date that the vessel will be delivered to Bunge S.A., Geneva.
4
As of January 2009, the International Commodities Business of Constellation Energy Commodities Group, Baltimore, was purchased by J. Aron & Company, the principal global trading subsidiary of the Goldman Sachs Group, Inc. Consequently, as of June 9, 2009 all rights and obligations were novated to J. Aron & Company.
5
Based on the intended date of delivery.
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 $48,500.
7
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.
8
Based on expected date of delivery from the yard to the owners.
9
The gross rate will vary as follows: $50,000 per day for delivery between October 1, 2009 and January 31, 2010 or $48,000 per day for delivery between February 1, 2010 and April 30, 2010.
10
Latest possible delivery to owners during second quarter of 2010.

 
 
 


Summary of Selected Financial & Other Data
 
     
 Three Months Ended June 30,
  
 Six Months Ended June 30,
     
2009
  
2008
  
2009
  
2008
     
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
INCOME STATEMENT DATA (in thousands of US Dollars):
    
 
Voyage and time charter revenues
$
59,786
$
86,768
$
122,479
$
165,644
 
Voyage expenses
  
3,065
  
4,046
  
6,291
  
6,640
 
Vessel operating expenses
  
10,308
  
9,859
  
19,749
  
19,072
 
Net income
  
30,439
  
56,733
  
65,249
  
109,948
FLEET DATA
                
 
Average number of vessels
  
19.0
  
19.0
  
19.0
  
18.8
 
Number of vessels
  
19.0
  
19.0
  
19.0
  
19.0
 
Weighted average age of fleet (in years)
  
4.8
  
3.8
  
4.8
  
3.8
 
Ownership days
  
1,729
  
1,729
  
3,439
  
3,417
 
Available days
  
1,715
  
1,729
  
3,419
  
3,417
 
Operating days
  
1,700
  
1,728
  
3,370
  
3,412
 
Fleet utilization
  
99.1%
  
99.9%
  
98.6%
  
99.9%
AVERAGE DAILY RESULTS
                
 
Time charter equivalent (TCE) rate (1)
$
33,073
$
47,844
$
33,983
$
46,533
 
Daily vessel operating expenses (2)
$
5,962
$
5,702
$
5,743
$
5,582
_________________
(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 Daylight Time) on Thursday, August 6, 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 19061209.

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 19061209.

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 June 30,
  
 Six Months Ended June 30,
     
2009
  
2008
  
2009
  
2008
     
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
 REVENUES:
                
  Voyage and time charter revenues
  
59,786
$
86,768
$
122,479
$
165,644
                   
 EXPENSES:
                
 
 Voyage expenses
  
3,065
  
4,046
  
6,291
  
6,640
 
 Vessel operating expenses
  
10,308
  
9,859
  
19,749
  
19,072
 
 Depreciation and amortization of deferred charges
  
10,999
  
10,956
  
21,836
  
21,209
 
 General and administrative expenses
  
4,208
  
3,869
  
8,281
  
7,458
 
 Foreign currency losses (gains)
  
 (54)
  
 (97)
  
 (297)
  
 (106)
 
 Operating income
  
31,260
  
58,135
  
66,619
  
111,371
                   
 OTHER INCOME (EXPENSES):
                
 
 Interest and finance costs
  
 (892)
  
 (1,498)
  
 (1,696)
  
 (3,016)
 
 Interest Income
  
179
  
96
  
434
  
648
 
 Gain / (loss) from financial instruments
  
 (108)
  
-
  
 (108)
  
-
 
 Insurance settlement for vessel un-repaired damages
  
-
  
-
  
-
  
945
                   
 
 Total other income (expenses), net
  
 (821)
  
 (1,402)
  
 (1,370)
  
 (1,423)
                   
 Net Income
  
30,439
$
56,733
$
65,249
$
109,948
                   
Earnings/(losses)  per common share, basic and diluted
  
0.39
$
0.76
$
0.86
$
1.48
                   
Weighted average number of common shares, basic
  
77,710,760
  
74,375,000
  
76,062,974
  
74,375,000
                   
Weighted average number of common shares, diluted
  
77,816,329
  
74,443,702
  
76,139,355
  
74,425,504
                   
 

 
 
 
 

BALANCE SHEET DATA
                
             
 June 30,
  
 December 31,
             
2009
  
2008
ASSETS
          
(unaudited)
    
                   
 Cash and cash equivalents
          
217,737
  
62,033
 Other current assets
          
5,653
  
6,521
 Advances for vessels under construction and acquisitions and other vessel costs
  
63,533
  
27,199
 Vessels' net book value
          
938,878
  
960,431
 Other fixed assets, net
          
105
  
136
 Other non-current assets
          
1,437
  
886
 Prepaid charter revenue, non-current portion
          
15,000
  
-
 
Total assets
          
1,242,343
  
1,057,206
                   
LIABILITIES AND STOCKHOLDERS' EQUITY
        
                   
 Current liabilities, including current portion of long-term debt
      
69,281
  
20,012
 Long-term debt, net of current portion
          
214,037
  
238,094
 Deferred revenue, non-current portion
          
16,851
  
22,502
 Other non-current liabilities
          
1,031
  
1,122
 Total stockholders' equity
          
941,143
  
775,476
 
Total liabilities and stockholders' equity
          
1,242,343
  
1,057,206
                   
                   
OTHER FINANCIAL DATA
                
     
 Three Months Ended June 30,
  
 Six Months Ended June 30,
     
2009
  
2008
  
2009
  
2008
     
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
 Net cash from operating activities
 $
27,147
 $
68,963
 $
69,476
 $
130,861
 Net cash used in investing activities
  
 (36,267)
  
 (254)
  
 (36,348)
  
 (108,129)
 Net cash from / (used in) financing activities
  
122,554
  
 (70,583)
  
122,576
  
 (16,753)
 

 
 

 

 
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