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 2006
Commission File Number: 001-32458
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 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
issued by Diana Shipping Inc. (the "Company") announcing the Company's financial
results for the third quarter and nine months ended September 30, 2006 and a
declaration of a cash dividend of 40 cents per share for the third quarter of
2006.
Exhibit 1
Corporate Contact:
Ioannis Zafirakis
Director and Vice-President
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 THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2006
AND
DECLARES CASH DIVIDEND OF 40 CENTS PER SHARE
FOR THE THIRD QUARTER OF 2006
ATHENS, GREECE, November 7, 2006 - Diana Shipping Inc. (NYSE: DSX), a global
shipping transportation company specializing in dry bulk cargoes, today reported
net income of $16.7 million for the third quarter of 2006, compared to net
income of $16.4 million reported for the same period of 2005.
Voyage and time charter revenues were $30.6 million for the third quarter
of 2006, compared to $25.8 million for the same period of 2005. This increase
was due to an increase in the number of vessels in the Company's fleet, which
was partially offset by decreased hire rates.
Net income for the nine months ended September 30, 2006, amounted to $41.6
million compared to net income of $51.1 million for the same period of 2005. Net
income available to common stockholders during the period, after the
non-recurring preferential deemed dividend of $20.3 million relating to the
purchase of Diana Shipping Services S.A. on April 1, 2006, was $21.4 million.
Voyage and time charter revenues were $80.9 million for the first nine months of
2006, compared to $79.1 million for the same period of 2005.
Dividend Declaration
The Company has declared a cash dividend on its common stock of $0.40 per
share, based on the Company's results from operations during the third quarter
ended September 30, 2006. The cash dividend will be payable on or about November
30, 2006 to shareholders of record as of November 22, 2006. The Company has
53.05 million shares of common stock outstanding.
"We are pleased that our earnings per share performance has continued its
positive trend during the first three quarters of 2006. EPS rose to US$0.32 in
the third quarter, up from US$0.28 in the second quarter (before the
non-recurring preferential deemed dividend), and US$0.26 in the first quarter.
Our successful strategies to grow our fleet, while maintaining a flexible
chartering policy that permits the Company to benefit from the dynamic of our
marketplace, also have resulted in our being able to increase our dividend for
the third quarter of 2006 to 40 cents per share," said Simeon Palios, Chairman
and Chief Executive Officer of Diana Shipping Inc.
Fleet Employment Profile
Currently Diana's fleet is employed as follows:
Sister Year
Name ships(3) Built DWT Employment (1) Charter Expiration(2)
--------------------- ---------- ----------- -------------- ----------------------------- -----------------------------------------
Nirefs A 2001 75,311 4TCs Average(4) + 4.5% Oct 23, 2007 - Jan 23, 2008
Alcyon A 2001 75,247 $22,582 Oct 15, 2007 - Feb 15, 2008
Triton A 2001 75,336 $17,000 Sep 14, 2006 - Nov 24, 2006
Oceanis A 2001 75,211 $17,000 Apr 19, 2007 - Jun 19, 2007
Dione A 2001 75,172 $17,000 Oct 7, 2006 - Dec 7, 2006
Danae A 2001 75,106 $30,000 Jan 13, 2007 - Apr 12, 2007
Protefs B 2004 73,630 4TCs Average(4) Jan 04, 2007 - Mar 4, 2007
Calipso B 2005 73,691 $26,750 Dec 21, 2007 - Feb 21, 2008
Clio B 2005 73,691 4TCs Average(4) +$850 Jan 02, 2007 - Mar 12, 2007
Thetis B 2004 73,583 $25,000 Aug 3, 2007 - Oct 18, 2007
Naias B 2006 73,546 $21,000 Jun 28 , 2007 - Sep 28, 2007
Erato C 2004 74,444 $21,000 Oct 23, 2006 - Dec 23, 2006
Coronis C 2006 74,381 $21,000 Dec 27, 2006 - Feb 27, 2006
Pantelis SP - 1999 169,883 $47,500 Jan 25, 2008 - Jan 28, 2008
Sideris GS(5) D 2006 175,000 see footnote 7 Dec 5, 2010 - Jan 5, 2011(8)
Hull H1107(6) D 2010 177,000 - -
Hull H1108(6) D 2010 177,000 - -
--------------
Total: 1,667,232
----------
(1) Gross time charter rate per day.
(2) Charterers' optional period to redeliver the vessel to owners.
(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 in December 2006.
(6) Expected to be delivered in the second quarter of 2010.
(7) The daily time charter rate will be $46,000 during the first year; $43,000
during the second year; $39,000 during the third year and $36,000 during
the fourth year.
(8) The charterer has the option to employ the vessel for a further 11-13 month
period, counting from the end of the 48th month, at the daily time charter
rate of $48,500.
Summary of Selected Financials & Other Data
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
------------- -------------- ---------------- ----------------
(unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA (in thousands of US Dollars):
Voyage and time charter revenues $ 30,595 $ 25,802 $ 80,917 $ 79,099
Voyage expenses 1,417 1,551 4,327 5,189
Vessel operating expenses 5,988 4,045 16,263 10,668
Net income 16,725 16,444 41,639 51,115
Net income available to common
stockholders 16,725 16,444 21,372 51,115
FLEET DATA
Average number of vessels 13.6 10.0 13.1 9.2
Number of vessels 14.0 10.0 14.0 10.0
Weighted average age of fleet (in years) 4.0 4.0 4.0 4.0
Ownership days 1,247 920 3,576 2,515
Available days 1,247 892 3,535 2,487
Operating days 1,247 891 3,530 2,480
Fleet utilization 100.0% 99.9% 99.9% 99.7%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 23,399 $ 27,187 $ 21,666 $ 29,719
Daily vessel operating expenses (2) $ 4,802 $ 4,397 $ 4,548 $ 4,242
----------
(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
Wednesday, November 8, 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 8051663.
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," "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 Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
-------------- -------------- -------------- ---------------
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES:
Voyage and time charter revenues $ 30,595 $ 25,802 $ 80,917 $ 79,099
EXPENSES:
Voyage expenses 1,417 1,551 4,327 5,189
Vessel operating expenses 5,988 4,045 16,263 10,668
Depreciation and amortization of deferred
charges 4,238 2,629 11,981 6,967
Management fees - 450 572 1,245
Executive management services and rent - 38 76 417
General and administrative expenses 1,870 696 4,399 2,030
Foreign currency losses (gains) (60) (11) (78) (29)
-------------- -------------- -------------- ---------------
Operating income 17,142 16,404 43,377 52,612
-------------- -------------- -------------- ---------------
OTHER INCOME (EXPENSES):
Interest and finance costs (699) (257) (2,569) (2,162)
Interest Income 282 297 831 665
-------------- -------------- -------------- ---------------
Total other income (expenses), net (417) 40 (1,738) (1,497)
-------------- -------------- -------------- ---------------
Net Income $ 16,725 $ 16,444 $ 41,639 $ 51,115
============== ============== ============== ===============
Preferential deemed dividend - - (20,267) -
-------------- -------------- -------------- ---------------
Net income available to common stockholders $ 16,725 $ 16,444 $ 21,372 $ 51,115
============== ============== ============== ===============
Earnings per common share, basic and diluted $ 0.32 $ 0.41 $ 0.44 $ 1.40
============== ============== ============== ===============
Weighted average number of common shares, basic
and diluted 53,050,000 40,000,000 48,342,308 36,554,945
============== ============== ============== ===============
BALANCE SHEET DATA
September 30, December 31,
2006 2005
------------------- -----------------
(unaudited) (unaudited)
ASSETS
------
Cash and cash equivalents 8,410 21,230
Other current assets 4,956 5,367
Advances for vessels under construction and acquisitions and other vessel costs 18,209 4,221
Vessels' net book value 377,757 307,305
Other fixed assets, net 909 -
Other non-current assets 2,471 3,826
------------------- -----------------
Total assets 412,712 341,949
=================== =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities, including current portion of long term debt 6,859 4,667
Long-term debt, net of current portion 39,454 12,859
Other non-current liabilities 1,500 265
Total stockholders' equity 364,899 324,158
------------------- -----------------
Total liabilities and stockholders' equity 412,712 341,949
=================== =================
OTHER FINANCIAL DATA
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
--------------- ------------- ------------------- -----------------
(unaudited) (unaudited) (unaudited) (unaudited)
Net cash provided by operating activities $ 22,838 $ 17,381 $ 57,369 $ 57,664
Net cash used in investing activities (53,910) (4,470) (95,790) (91,487)
Net cash provided by(used in) financing
activities 20,767 (21,600) 25,601 62,049
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: November 8, 2006 By: /s/ Anastassis Margaronis
--------------------------
Anastassis Margaronis
President
SK 23159 0002 719998