Thursday, September 28, 2023
HomeDry CargoDiana Shipping reports higher than expected Q4 profit


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Diana Shipping reports higher than expected Q4 profit

Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, reported net income of $25.7 million and net income attributed to common stockholders of $24.2 million for the fourth quarter of 2022. This compares to net income of $41.1 million and net income attributed to common stockholders of $39.7 million for the fourth quarter of 2021, including a gain of $15.3 million from the distribution of the common shares of OceanPal Inc. to the Company’s shareholders, following its spinoff. Earnings per share for the fourth quarter of 2022 was $0.28 basic and $0.27 diluted, compared to earnings per share of $0.51 basic and $0.48 diluted in the same quarter in 2021.

Time charter revenues were $75.7 million for the fourth quarter of 2022, compared to $68.8 million for the same quarter of 2021.

Net income in 2022, amounted to $119.1 million and net income attributed to common stockholders amounted to $113.3 million. This compares to net income of $57.4 million and net income attributed to common stockholders of $51.6 million, in 2021. Time charter revenues were $290.0 million in 2022, compared to $214.2 million in 2021. Earnings per share in 2022 was $1.42 basic and $1.36 diluted, compared to earnings per share of $0.64 basic and $0.61 diluted in 2021.

Cash and Special Dividend Declarations

The Company has declared a cash dividend on its common stock of $0.15 per share, based on the Company’s results of operations during the fourth quarter ended December 31, 2022. The cash dividend will be payable on or about March 20, 2023 to all shareholders of record as of March 13, 2023. The Company currently has 104,687,232 common shares issued and outstanding. In addition, the Company is announcing that it intends to declare and pay quarterly cash dividends with respect to the next three quarters of 2023 in an amount of not less than $0.15 per share. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by the Company’s board of directors each quarter after its review of the company’s financial performance.

The Company has also declared a special stock dividend to shareholders of record as of April 24, 2023 of an aggregate of 13,157 Series D Convertible Preferred Shares of OceanPal Inc. held by the Company. The special stock dividend is expected to be paid on or around May 16, 2023 (the “Stock Dividend”). Because there is no public market currently existing or expected to develop for the Series D Convertible Preferred Shares of OceanPal Inc., as an accommodation to its common shareholders the Company will automatically convert the Series D Convertible Preferred Shares into OceanPal Inc. common shares on or around the Stock Dividend payment date and distribute such common shares to each common shareholder in lieu of Series D Convertible Preferred Shares of OceanPal Inc. Common shareholders of the Company will have the opportunity to elect to opt out, in whole but not in part, of the conversion of the Series D Convertible Preferred Shares and instead receive Series D Convertible Preferred Shares in connection with the Stock Dividend.

Shareholders receiving OceanPal Inc. common shares will receive the pro-rata number of common shares to which they are entitled following conversion, rounded down to the nearest whole number, and any fractional shares shall be aggregated and sold and the net proceeds thereof will be delivered to common shareholders. All OceanPal Inc. fractional share calculations and the payment of cash in lieu thereof will be determined at the shareholder nominee level. Shareholders electing to receive Series D Convertible Preferred Shares by opting out of the automatic conversion will receive the number of Series D Convertible Preferred Shares equal to such shareholder’s pro-rata portion of all Series D Convertible Preferred Shares, rounded down to the nearest whole number. Any fractional Series D Convertible Preferred Shares that would otherwise be distributed will be converted into OceanPal Inc. common shares at the applicable conversion rate and sold, and the net proceeds therefrom will be delivered to such common shareholder.

OceanPal Inc. will file a registration statement with the U.S. Securities and Exchange Commission registering the OceanPal Inc. common shares and/or Series D Convertible Preferred Shares in the Stock Distribution. No distribution of the Series D Convertible Preferred Shares or OceanPal Inc. common shares will be made until such registration statement has been declared effective.

Other Matters

Board of Directors. The Company’s board of directors has determined to increase the size of the board from nine to eleven members, effective February 22, 2023. Mr. Eleftherios Papatrifon will be transitioning from the role of Chief Operating Officer to a member of the board of directors and an executive committee member, and Ms. Jane Chao will fill the second vacancy resulting from the increase in the size of the board of directors. Mr. Papatrifon is a seasoned professional in the shipping industry with significant experience in public company management, asset management, and corporate finance. Ms. Jane Chao is a businessperson with many years of diverse experiences and successes in real estate, hotel and food and beverage industries, she is also a Director of Wah Kwong (China).

The Company is also announcing that it has signed a non-binding term sheet with a major European bank for a new credit facility in an amount of up to $100 million. The new credit facility remains subject to successful negotiation of definitive documentation and satisfaction of other customary closing conditions. If completed, the proceeds of the new credit facility will be used to refinance existing credit facilities secured by nine of the vessels in the Company’s current fleet. The facility is expected to have a term of five years and bear interest at the secured overnight financing rate plus 2.2%, and to include customary financial and other covenants and conditions.

Fleet Employment (As of February 21, 2023) 
9 Ultramax Bulk Carriers
1DSI PhoenixA13,2505.00%ASL Bulk Marine Limited4-Nov-224/Mar/2024 – 4/May/2024 
 2017 60,456       
2DSI PolluxA17,0005.00%Delta Corp Shipping Pte. Ltd.27-Oct-2227/Dec/2023 – 27/Feb/2024 
 2015 60,446       
3DSI PyxisA17,1004.75%Cargill Ocean
Transportation Singapore
Pte. Ltd.
16-Oct-2216/Aug/2023 – 16/Oct/2023 
 2018 60,362      
4DSI PolarisA13,1005.00%ASL Bulk Marine Limited12-Nov-2212/May/2024 – 12/Jul/2024 
 2018 60,404       
5DSI PegasusA14,0005.00%Reachy Shipping (SGP) Pte. Ltd.7-Dec-2215/Jul/2024 – 15/Sep/2024 
 2015 60,508      
6DSI AquariusB14,2005.00%Engelhart CTP Freight (Switzerland) SA1-Feb-2310/Jan/2024 – 25/Mar/2024 
 2016 60,309      
7DSI AquilaB13,3005.00%Western Bulk Carriers AS22-Nov-2215/Sep/2023 – 15/Nov/2023 
 2015 60,309       
8DSI AltairB14,4005.00%Western Bulk Pte. Ltd.28-Dec-2225/Jun/2023 – 25/Aug/2023 
 2016 60,309       
9DSI AndromedaB14,2505.00%Western Bulk Carriers AS17-Nov-2216/Oct/2023 – 16/Dec/20231, 2
 2016 60,309       
10Nord Potomac(tbr)  3
 2016 63,379       
8 Panamax Bulk Carriers
11MELIA 15,0005.00%Oriental Pal Shipping Pte., Ltd.26-Sep-2221/Oct/2022 
 2005 76,225 14,0005.00%21-Oct-2221/Nov/2022 
  11,0005.00%Asahi Shipping Co., Ltd.10-Dec-224/Feb/20234
12ARTEMIS 21,2504.75%Cargill International S.A., Geneva21-Mar-2220/Jun/2023 -20/Aug/2023 
 2006 76,942      
13LETO 25,5004.75%Aquavita International S.A.3-Oct-2129/Jan/20235
 2010 81,297 14,5004.75%Cargill International S.A., Geneva29-Jan-231/Mar/2024 – 30/Apr/2024 
14SELINAC22,0005.00%Speed Logistics Marine Limited18-Jun-2215/Apr/2023 – 20/Jun/2023 
 2010 75,700      
15MAERAC26,0005.00%ASL Bulk Shipping HK Limited18-Sep-2114/Oct/2022 
 2013 75,403 14,2505.00%Oriental Pal Shipping Pte., Ltd.15-Oct-2212/Nov/20226
  12,0004.75%Cargill International S.A., Geneva16-Dec-2228/Oct/2023 – 28/Dec/2023 
16ISMENE 18,5004.75%Cargill International S.A., Geneva23-Nov-2110/Jan/2023 
 2013 77,901 14,0005.00%ST Shipping and Transport Pte. Ltd.10-Jan-2320/Aug/2023 – 10/Oct/2023 
17CRYSTALIAD26,1005.00%Uniper Global Commodities SE, Dusseldorf21-Sep-2112/Nov/2022 
 2014 77,525 12,5005.00%Reachy Shipping (SGP) Pte. Ltd.12-Nov-221/Sep/2023 – 15/Oct/2023 
18ATALANDID24,5004.75%Aquavita International S.A.5-Oct-2115/Feb/2023 
 2014 77,529 13,2504.75% 15-Feb-235/Mar/2024 – 5/May/2024 
6 Kamsarmax Bulk Carriers
19MAIAE25,0005.00%Hyundai Glovis Co. Ltd.24-May-2220/Sep/2023 -20/Nov/20237
 2009 82,193       
20MYRSINIE22,0004.75%Cargill International S.A., Geneva15-Nov-2122/Nov/20228
 2010 82,117 15,0005.00%Salanc Pte. Ltd.22-Nov-2220/Apr/2024 – 28/Jun/2024 
21MEDUSAE26,0004.75%Cargill International S.A., Geneva9-Mar-2215/May/2023 – 15/Jul/2023 
 2010 82,194      
22MYRTOE18,0005.00%Tata NYK Shipping Pte. Ltd.3-Aug-2215/Jul/2023 – 15/Sep/20239
 2013 82,131       
23ASTARTE 21,5005.00%Tongli Shipping Pte. Ltd.30-Jan-2215/Apr/2023 – 15/Jun/2023 
 2013 81,513       
24LEONIDAS P. C. 24,5004.75%Cargill International S.A., Geneva18-Feb-221/Mar/2023 – 10/Mar/202310
 2011 82,165      
5 Post-Panamax Bulk Carriers
25ALCMENE 17,1005.00%SwissMarine Pte. Ltd., Singapore25-Nov-212/Jan/2023 
 2010 93,193 13,0005.00%2-Jan-2310/Jan/2024 – 25/Mar/2024 
26AMPHITRITEF27,0005.00%BG Shipping Co., Limited, Hong Kong13-Sep-219/Nov/2022 
 2012 98,697 14,2505.00%Cobelfret S.A.9-Nov-221/Dec/2023 – 15/Feb/2024 
27POLYMNIAF24,7505.00%CLdN Cobelfret SA, Luxembourg4-Feb-2214/Jan/2023 
 2012 98,704 15,0005.00%14-Jan-231/Apr/2024 – 31/May/202411
28ELECTRAG17,5005.00%Refined Success Limited2-Jul-221/Apr/2023 – 30/May/2023 
 2013 87,150       
29PHAIDRAG11,2505.00%Element Maritime S.A.20-Sep-2219/Nov/202212
 2013 87,146 25,0005.00%Comerge Shipping Co., Limited24-Nov-2228/Feb/202313,14
11 Capesize Bulk Carriers
30ALIKI 24,5005.00%Koch Shipping Pte. Ltd., Singapore21-Feb-222/Feb/20234
 2005 180,235      
31SEMIRIOH19,7005.00%C Transport Maritime Ltd., Bermuda15-Dec-2115/Aug/2023 – 15/Nov/2023 
 2007 174,261      
32BOSTONH20,5005.00%Aquavita International S.A.15-Jul-221/Apr/2023 – 31/May/2023 
 2007 177,828       
33HOUSTONH27,0005.00%Koch Shipping Pte. Ltd., Singapore30-Aug-2121/Nov/202215
 2009 177,729 13,0005.00%EGPN Bulk Carrier Co., Limited21-Nov-221/Jul/2024 – 31/Aug/2024 
34NEW YORKH14,0005.00%EGPN Bulk Carrier Co., Limited, Hong Kong29-Dec-202/Jul/2022 
 2010 177,773      
   23,0005.00%C Transport Maritime Ltd., Bermuda2-Jul-2210/Jun/2023 – 25/Aug/2023 
35SEATTLEI26,5005.00%Solebay Shipping Cape Company Limited, Hong Kong2-Mar-221/Oct/2023 – 15/Dec/2023 
 2011 179,362      
36P. S. PALIOSI31,0005.00%Classic Maritime Inc.11-Jun-2215/Apr/2024 – 30/Jun/2024 
 2013 179,134       
37G. P. ZAFIRAKISJ22,7504.75%Cargill International S.A., Geneva1-Dec-2112/Jan/202316
 2014 179,492 17,0005.00%Solebay Shipping Cape
Company Limited, Hong Kong
12-Jan-2315/Jun/2024 – 15/Aug/2024 
38SANTA BARBARAJ29,5004.75%Cargill International S.A., Geneva19-Mar-2210/May/2023 – 10/Jul/202317
 2015 179,426      
39NEW ORLEANS 32,0005.00%Engelhart CTP Freight (Switzerland) SA25-Mar-2220/Nov/2023 – 31/Jan/202417
 2015 180,960      
40FLORIDA 25,9005.00%Bunge S.A., Geneva29-Mar-2229/Jan/2027 – 29/May/20272
 2022 182,063       
4 Newcastlemax Bulk Carriers
41LOS ANGELESK26,2505.00%Koch Shipping Pte. Ltd., Singapore30-Jan-2215/Jan/2023 
 2012 206,104 17,7005.00%Nippon Yusen Kabushiki Kaisha, Tokyo15-Jan-2320/May/2024 – 5/Aug/2024 
42PHILADELPHIAK26,0005.00%C Transport Maritime Ltd., Bermuda12-Apr-221/Feb/2024 – 15/Apr/2024 
 2012 206,040      
43SAN FRANCISCOL30,5005.00%Koch Shipping Pte. Ltd., Singapore18-Feb-2218/Feb/202318
 2017 208,006 22,0005.00%SwissMarine Pte. Ltd., Singapore18-Feb-235/Jan/2025 – 5/Mar/2025 
44NEWPORT NEWSL28,0005.00%Koch Shipping Pte. Ltd., Singapore16-Dec-211/Jul/2023 – 30/Sep/2023 
 2017 208,021      
* 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.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
1The fixture includes the option for redelivery of vessel east of Suez against a gross ballast bonus of US$250,000.
2Bareboat chartered-in for a period of ten years.
3The Company expects to take delivery of the vessel by the beginning of April 2023.
4Vessel sold and delivered to her new Owners on February 8, 2023.
5Aquavita International S.A. has agreed to compensate the owners for the early redelivery of the vessel until the minimum agreed redelivery date, February 1, 2023.
6Vessel on scheduled drydocking from November 12, 2022 to December 16, 2022.
7Vessel off hire for 3.93 days.
8Charterers compensated the owners for the early redelivery of the vessel by paying the difference between the new rate and the previous rate, from the redelivery date from the charterers to December 1, 2022.
9Vessel on scheduled drydocking from October 12, 2022 to November 7, 2022.
10Based on latest information.
11The charter rate was US$10,000 per day for the first 30 days of the charter period.
12Charter included a one time ballast bonus payment of US$250,000.
13Redelivery date based on an estimated time charter trip duration of about 91 days.
14Charter includes a one time ballast bonus payment of US$300,000.
15The Charterers have compensated the owners for the days over and above the maximum redelivery date.
16The Charterers will compensate the Owners for the excess of the charter party period at the rate of 123% of the average of the Baltic Cape Index 5TC average for the days exceeding the period or the vessel’s present charter party rate whichever is higher.
17Bareboat chartered-in for a period of eight years.
18Koch Shipping Pte. Ltd. has agreed to compensate the owners for the early redelivery of the vessel by paying the difference between the new rate and the previous rate, from the redelivery date from the Charterers, to March 1, 2023.
Summary of Selected Financial & Other Data (unaudited)
  Three months ended December 31, For the years ended December 31,
  2022 2021 2022 2021
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
Time charter revenues$75,705 $68,845 $289,972 $214,203 
Voyage expenses 2,846  821  6,942  5,570 
Vessel operating expenses 19,527  18,194  72,033  74,756 
Net income 25,682  41,140  119,063  57,394 
Net income attributable to common stockholders 24,240  39,698  113,294  51,625 
Average number of vessels 38.2  35.0  35.4  36.6 
Number of vessels 42.0  33.0  42.0  33.0 
Weighted average age of vessels 10.2  10.4  10.2  10.4 
Ownership days 3,512  3,216  12,924  13,359 
Available days 3,453  3,184  12,449  13,239 
Operating days 3,393  3,171  12,306  13,116 
Fleet utilization 98.3% 99.6% 98.9% 99.1%
Time charter equivalent (TCE) rate (1)$21,100 $21,364 $22,735 $15,759 
Daily vessel operating expenses (2)$5,560 $5,657 $5,574 $5,596 

Non-GAAP Measures

(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 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.

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