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 August 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
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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 press release issued
by Diana Shipping Inc. (the "Company") announcing the Company's financial
results for the quarter and six months ended June 30, 2006 and announcing a cash
dividend with respect to the second quarter of 2006.
Exhibit 1
Corporate Contact:
Ioannis Zafirakis
Director and Vice-President
For Immediate Release Telephone: + 30-210-9470100
Email: izafirakis@dianashippinginc.com
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 SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2006
DECLARES CASH DIVIDEND OF 35.5 CENTS PER SHARE
FOR THE SECOND QUARTER
ATHENS, GREECE, August 9, 2006 - Diana Shipping Inc. (NYSE: DSX), a global
shipping transportation company specializing in dry bulk cargoes, today reported
net income of $13.2 million for the second quarter of 2006, compared to net
income of $20.1 million reported in the second quarter of 2005.
The results for the 2006 second quarter also include a non-recurring
preferential deemed dividend in the amount of $20.3 million, relating to the
purchase of Diana Shipping Services S.A., the fleet management company that
Diana Shipping Inc. acquired on April 1, 2006. Taking into account this amount,
the Company recorded a net loss available to common stockholders for the second
quarter of 2006 of $7.1 million. The accounting treatment of the acquisition of
the fleet manager was first described in the Company's initial public offering
prospectus.
Voyage and time charter revenues were $26.1 million for the second quarter of
2006, compared to $29.4 million for the same period of 2005, due to a decrease
in prevailing time charter rates offset by an increase in the number of vessels
in the Company's fleet. Voyage and time charter revenues and net income reported
for the second quarter of 2006 have been reduced by $0.8 million, reflecting the
non-cash amortization of the prepaid time charter revenue of the vessel Thetis
to apply for the entire duration of the time charter contract.
Net income for the six months ended June 30, 2006, amounted to $24.9 million
compared to net income of $34.7 million for the same period of 2005. Net income
available to common stockholders during the period was $4.6 million. Voyage and
time charter revenues were $50.3 million for the first six months of 2006,
compared to $53.3 million for the same period of 2005. Voyage and time charter
revenues and net income reported for the six months ended June 30, 2006 have
been reduced by $1.6 million, reflecting the non-cash amortization of the
prepaid time charter revenue of the vessel Thetis to apply for the entire
duration of the time charter contract.
"We are pleased to announce that we have increased earnings per share, prior to
the preferential deemed dividend, to US$0.28 from US$0.26 as compared with the
first quarter, an increase of 7.7%. Our business strategy and successful
chartering policy have resulted in our being able to increase our dividend for
the second quarter of 2006 to 35.5 cents per share, more than we paid for the
first quarter of 2006. Since our Company became public, we have declared US$95.8
million in dividends for our shareholders," said Simeon Palios, Chairman and
Chief Executive Officer of Diana Shipping Inc.
Mr. Palios also cited the Company's low debt, high dividend payout policy and
prudent chartering strategy. He noted, "The time charter contracts we entered
into for four of our vessels earlier this year, which adjust their earnings
based on the daily average time charter rates on four established routes,
together with the vessels whose employment contracts are due for renewal in
2006, should enable our Company to take advantage of favorable freight market
conditions going forward."
Dividend declaration
The Company has declared a cash dividend on its common stock of $0.355 per
share, based on the Company's results from operations during the second quarter
ended June 30, 2006. The cash dividend will be payable on or about August 31,
2006 to shareholders of record as of August 18, 2006. The Company has 53.05
million shares of common stock outstanding.
Fleet Employment Profile
Currently Diana's fleet is employed as follows:
Sister Year
Name ships(3) Built DWT Employment (1) Expiration(2)
----------- -------- ------- --------- ---------------------- -------------
Nirefs A 2001 75,311 4TCs Average(4) + 4.5% Oct 23, 2007
Alcyon A 2001 75,247 $22,582 Oct 15, 2007
Triton A 2001 75,336 $17,000 Sep 14, 2006
Oceanis A 2001 75,211 $17,000 Apr 19, 2007
Dione A 2001 75,172 $17,000 Oct 7, 2006
Danae A 2001 75,106 $30,000 Jan 13, 2007
Protefs B 2004 73,630 4TCs Average(4) Jan 04, 2007
Calipso B 2005 73,691 4TCs Average(4) Dec 21, 2007
Clio B 2005 73,691 4TCs Average(4) +$850 Jan 02, 2007
Thetis B 2004 73,583 $25,000 Jul 19, 2007
Naias(5) B 2006 73,546 $21,000 Jul 11, 2007
Erato C 2004 74,444 $21,000 Oct 22, 2006
Coronis C 2006 74,381 $21,000 Dec 27, 2006
Pantelis SP - 1999 169,883 $47,500 Jan 25, 2008
---------
Total: 1,138,232
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(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) Adjustable every 15 days based on the average of four main pre-determined
time charter routes, as published by the Baltic Exchange.
(5) Expected to be delivered on August 11, 2006.
Summary of Selected Financials & Other Data
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
------------- ------------- ------------- -------------
(unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA (in thousands of US Dollars):
Voyage and time charter revenues $ 26,142 $ 29,391 $ 50,322 $ 53,297
Voyage expenses 1,155 2,004 2,910 3,638
Vessel operating expenses 5,348 3,448 10,275 6,624
Net income 13,198 20,116 24,914 34,671
Net income/(loss) available to common
stockholders (7,069) 20,116 4,647 34,671
FLEET DATA
Average number of vessels 13.0 9.6 12.9 8.8
Number of vessels 13.0 10.0 13.0 10.0
Weighted average age of fleet (in years) 4.0 3.7 4.0 3.7
Ownership days 1,183 872 2,329 1,595
Available days 1,176 872 2,288 1,595
Operating days 1,175 871 2,283 1,589
Fleet utilization 99.9% 99.9% 99.8% 99.6%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 21,247 $ 31,407 $ 20,722 $ 31,134
Daily vessel operating expenses (2) $ 4,521 $ 3,954 $ 4,412 $ 4,153
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(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 financial results at 9:00 A.M. (Eastern Time) on Thursday,
August 10, 2006. 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 7673476.
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. Diana Shipping Inc. priced its initial public offering of
common stock on March 17, 2005.
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.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except share, per day and fleet data
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
------------- -------------- ------------- -------------
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES:
Voyage and time charter revenues $ 26,142 $ 29,391 $ 50,322 $ 53,297
EXPENSES:
Voyage expenses 1,155 2,004 2,910 3,638
Vessel operating expenses 5,348 3,448 10,275 6,624
Depreciation and amortization of deferred charges 3,986 2,459 7,743 4,338
Management fees - 431 572 794
Executive management services and rent - 37 76 379
General and administrative expenses 1,705 904 2,529 1,334
Foreign currency losses (gains) (28) (10) (18) (18)
------------- -------------- ------------- -------------
Operating income 13,976 20,118 26,235 36,208
------------- -------------- ------------- -------------
OTHER INCOME (EXPENSES):
Interest and finance costs (1,084) (228) (1,870) (1,905)
Interest income 306 226 549 368
------------- -------------- ------------- -------------
Total other income (expenses), net (778) (2) (1,321) (1,537)
------------- -------------- ------------- -------------
Net Income $ 13,198 $ 20,116 $ 24,914 $ 34,671
============= ============== ============= =============
Preferential deemed dividend(1) (20,267) - (20,267) -
------------- -------------- ------------- -------------
------------- -------------- ------------- -------------
Net income/(loss) available to common stockholders $ (7,069) $ 20,116 $ 4,647 $ 34,671
============= ============== ============= =============
Earnings/(losses) per common share, basic and diluted $ (0.15) $ 0.50 $ 0.10 $ 1.00
============= ============== ============= =============
Weighted average number of common shares, basic and diluted 46,888,462 40,000,000 45,949,448 34,803,867
============= ============== ============= =============
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(1) The amount presented as a preferential deemed dividend relates to the
purchase price in excess of the historical book value of Diana Shipping
Services S.A., the management company that was acquired on April 1, 2006
and as of that date became a wholly owned subsidiary. Please refer to the
Company's registration statements filed with the Securities and Exchange
Commission for a description of the preferential deemed dividend.
BALANCE SHEET DATA
June 30, December 31,
2006 2005
------------ ------------
(unaudited)
ASSETS
------
Cash and cash equivalents 18,715 21,230
Other current assets 5,049 5,367
Advances for vessels under construction and 3,963 4,221
acquisitions and other vessel costs
Vessels' net book value 342,091 307,305
Other fixed assets, net 925 -
Other non-current assets 3,039 3,826
------------ ------------
Total assets 373,782 341,949
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities 5,296 4,667
Long-term debt - 12,859
Other non-current liabilities 1,479 265
Total stockholders' equity 367,007 324,158
------------ ------------
Total liabilities and stockholders' equity 373,782 341,949
============ ============
OTHER FINANCIAL DATA
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Net cash provided by operating activities $ 18,926 $ 22,529 $ 34,531 $ 40,283
Net cash used in investing activities (3,963) (14,785) (41,880) (87,017)
Net cash provided by / (used in) financing activities (15,666) (4,400) 4,834 83,649
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: August 9, 2006 By: /s/ Anastassis Margaronis
-----------------------------
Anastassis Margaronis
President
SK 23159 0001 693506