Diana Shipping Inc 6-K, filed Jul 28, 2022
Diana Shipping Inc. (DSX)
6-K
2022-07-28
For: 2022-07-28
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April 08, 2026
About this 6-K
Diana Shipping Inc filed this 6-K on July 28, 2022.
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 July 2022
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 99.1 is an investor presentation dated July 28, 2022 of Diana Shipping Inc.
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.
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DIANA SHIPPING INC.
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(registrant)
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Dated: July 28, 2022
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By:
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/s/ Anastassis Margaronis
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Anastassis Margaronis
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President
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Exhibit 99.1
We create to share Financial Results for the 2nd Quarter of 2022 July 28, 2022
Director & President Anastasios Margaronis Director & Chief Executive Officer
Semiramis Paliou Director, Chief Financial Officer, Chief Strategy Officer, Secretary & Treasurer Ioannis Zafirakis Our Executives Our Company’s confidence stems from our established track record We create to share 2 Chief
Operating Officer Eleftherios Papatrifon Maria Dede Chief Accounting Officer
We create to share 3 Financial Results for the 2nd Quarter of 2022
Forward Looking Statements Cautionary statement regarding onward-looking statements This
presentation does not constitute or form part of and should not be construed as an offer to sell any security or an invitation, solicitation, or inducement to purchase or subscribe for any security. This presentation should not be construed
and does not constitute either advice or a recommendation regarding the purchase, holding or sale of any security. No representations or warranties, express or implied, are given in, or in respect of the accuracy or completeness of any
information included in, this presentation. Matters discussed in this presentation 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,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify
forward-looking statements. We undertake no obligation, except as required by law, to publicly update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events or
otherwise. The forward-looking statements in this presentation 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 the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the severity, magnitude and duration of the COVID-19 pandemic, including impacts of
the pandemic and of businesses’ and governments’ responses to the pandemic on our operations, personnel, and on the demand for seaborne transportation of bulk products; 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 the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the
Company’s 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, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of
off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update
any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. We create to share 4
people across sea & ashore 856**** We create to share 5 35 vessels in the water* 5
vessels mortgage free** 99.1% AVERAGE FLEET UTILIZATION*** Diana’s key points 33 vessels managed by Diana Shipping Services S.A. 2 vessels managed by Diana Wilhelmsen Management Limited *As of July 19, 2022. m/v Florida bareboat
chartered-in. m/v Baltimore sold and expected to be delivered to the buyers in the third quarter of 2022. **As of July 19, 2022. m/v Baltimore sold and expected to be delivered to the buyers in the third quarter of 2022. ***For the six
months ended June 30, 2022 ****As of June 30, 2022.
We create to share 6 In May 2022, declared a cash dividend in the amount of US$0.25 per common share,
in the aggregate amount of approximately US$21.6m In June 2022, signed a Memorandum of Agreement for the sale of m/v Baltimore, in the aggregate sale price of US$22.0m, 20% of which was paid upon signing of the Memorandum of Agreement and
80% of which will be paid upon the delivery of the vessel in the form of newly issued preferred shares of OceanPal Inc. In July 2022, prepayment of US$4.8m and release of the mortgage over m/v Baltimore In July 2022, declared a cash
dividend in the amount of US$0.275 per common share, in the aggregate amount of approximately US$23.7m As of July 19, 2022, we have secured US$114.1m contracted revenues for 84% of the remaining ownership days of the year 2022 and have
secured US$93.0m contracted revenues for 30% of the ownership days of the year 2023 Highlights of the 2nd Quarter 2022 and recent developments
We create to share 7 TC Revenues $74.5m $47.0m Earnings per common share, diluted $0.42 $0.02
Three months ended June 30, 2022 2021 *Source: Company’s filings with the U.S. Securities and Exchange Commission. The statement may include rounding differences Cash, Cash Equivalents and Restricted cash $130.3m $126.8m Long-term debt
and lease obligation, net of deferred financing costs $451.7m $423.7m June 30, 2022 December 31, 2021 Financial Highlights for the 2nd Quarter 2022*
Recent Chartering Activity We secured charters on 5 vessels* 3 Panamax/Post-Panamax vessels chartered
at a daily rate of $19,881 for a remaining average period of 188 days per vessel** 2 Capesize vessels chartered at a weighted average daily rate of $21,922 for a remaining average period of 288 days per vessel** Fixed Period ** Previous
Charter Period *From May 24, 2022 until July 22, 2022 **Earliest redelivery date Source: Company’s filings with the U.S. Securities and Exchange
Commission VESSEL TYPE BUILT RATE Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 New
York Capesize 2010 $23,000 Selina Panamax 2010 $22,000 Boston Capesize 2007 $20,500 Electra Post-Panamax 2013 $17,500 Melia Panamax 2005 $20,000 We create to share 8
Summary of Selected Financial & Other Data* Statement of Operations Data ($ Millions) ($
Millions) Time charter revenues 74.5 47.0 Voyage expenses (1.1) 2.3 Vessel operating expenses 18.4 19.2 Net income 35.6 2.8 Net income, attributed to common stockholders 34.2 1.4 Fleet data Average number of
vessels 35.0 37.0 Number of vessels 35.0 37.0 Weighted average age of vessels 10.4 10.4 Ownership days 3,185 3,367 Available days 3,068 3,319 Operating days 3,059 3,305 Fleet utilization 99.7% 99.6% Average Daily Results
(US$) (US$) Time charter equivalent (TCE) rate** 24,633 13,477 Daily vessel operating expenses*** 5,775 5,696 Three months ended June 30, 2022 2021 *Source: Company’s filings with the U.S. Securities and Exchange Commission.
The statement may include rounding differences **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 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. ***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. We create to share 9
Summary of Selected Financial & Other Data* Statement of Operations Data ($ Millions) ($
Millions) Time charter revenues 140.5 88.1 Voyage expenses 0.7 4.1 Vessel operating expenses 34.8 37.7 Net income 61.6 1.5 Net income/(loss), attributed to common stockholders 58.8 (1.4) Fleet data Average number of
vessels 34.3 37.6 Number of vessels 35.0 37.0 Weighted average age of vessels 10.4 10.4 Ownership days 6,202 6,801 Available days 5,974 6,753 Operating days 5,919 6,692 Fleet utilization 99.1% 99.1% Average Daily Results
(US$) (US$) Time charter equivalent (TCE) rate** 23,400 12,439 Daily vessel operating expenses*** 5,615 5,548 Six months ended June 30, 2022 2021 *Source: Company’s filings with the U.S. Securities and Exchange Commission. The
statement may include rounding differences **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 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. ***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. We create to share 10
Income Statement* $ Millions $ Millions Time charter revenues 74.5 47.0 Expenses Voyage
expenses (1.1) 2.3 Vessel operating expenses 18.4 19.2 Depreciation and amortization of deferred charges 10.7 10.1 General and administrative expenses 7.9 7.2 Management fees to related party 0.1 0.4 Insurance
recoveries (1.5) - Other operating income (0.4) 0.1 Operating income, Total 40.4 7.7 Other Income / (Expenses) Interest expense and finance costs (6.0) (4.7) Interest and other income 0.4 - (Loss)/Gain on extinguishment of
debt - (0.2) Gain/(Loss) from equity method investments 0.8 (0.1) Total other expenses, net (4.8) (4.9) Net Income 35.6 2.8 Dividends on series B preferred shares (1.4) (1.4) Net Income, attributed to common
stockholders 34.2 1.4 Earnings per common share, basic 0.44 0.02 Earnings per common share, diluted 0.42 0.02 Three months ended June 30, 2022 2021 *Source: Company’s filings with the U.S. Securities and Exchange Commission. The
statement may include rounding differences We create to share 11
Income Statement* $ Millions $ Millions Time charter revenues 140.5 88.1 Expenses Voyage
expenses 0.7 4.1 Vessel operating expenses 34.8 37.7 Depreciation and amortization of deferred charges 20.5 20.1 General and administrative expenses 14.9 13.9 Management fees to related party 0.2 0.9 Loss on Sale of
Vessels - 0.2 Insurance Recoveries (1.8) - Other operating income (0.3) - Operating income, Total 71.5 11.2 Other Income / (Expenses) Interest expense and finance costs (11.2) (9.3) Interest and other income 0.6 0.1 Loss on
Extinguishment of Debt - (0.2) Gain/(Loss) from Equity Method Investments 0.8 (0.2) Total other expenses, net (9.8) (9.6) Net Income 61.6 1.5 Dividends on series B preferred shares (2.9) (2.9) Net Income/(Loss), attributed to
common stockholders 58.8 (1.4) Earnings/(Loss) per common share, basic 0.76 (0.02) Earnings/(Loss) per common share, diluted 0.73 (0.02) Six months ended June 30, 2022 2021 *Source: Company’s filings with the U.S. Securities and
Exchange Commission. The statement may include rounding differences We create to share 12
Balance Sheet* *Source: Company’s filings with the U.S. Securities and Exchange Commission. The
statement may include rounding differences **Net of deferred financing costs of $7.6 million. ***Includes $17.5 million restricted cash. As of June 30, 2022$451.7 million Total Debt** $130.3 million of Cash*** Net Debt of $329.0
million June 30, 2022 December 31, 2021 Assets $ Millions $ Millions Cash, cash equivalents and restricted cash 130.3 126.8 Other current assets 34.8 15.4 Total fixed assets 720.3 682.6 Investments in related
parties 8.1 7.6 Deferred and other non-current assets 15.3 9.6 Total Assets 908.9 842.0 Liabilities and Stockholders’ Equity Long-term debt and lease obligation, net of deferred financing costs 451.7 423.7 Other
liabilities 35.1 25.1 Total stockholders’ equity 422.1 393.2 Total Liabilities and Stockholders’ Equity 908.9 842.0 We create to share 13
Current Debt Amortization Profile We create to share 14 Source: Company
Breakeven Costs Modest All-in *As of June 30, 2022. **As of June 30, 2022, adjusted for non-cash
items. Includes management fees to Diana Wilhelmsen Management Limited. ***Assumes earliest redelivery dates of all vessels on charter. Source: Company Per Day Per Vessel Free Cash Flow Breakeven =$13,977 As of July 19,
2022 2022 2023 Average Daily Time Charter Rate of Fixed Revenues*** $24,098 $24,963 % of Total Fixed Days 84% 30% We create to share 15
Non-speculative & disciplined employment *Bareboat charter-in. **Vessel sold and expected to be
delivered to her new owners in the third quarter of 2022. ***As of July 19, 2022 Source: Company Fixed Period Previous Charter Period strategy Secured Revenues $114.1m*** for the remaining of 2022 Average Daily TC Rate of Fixed
Revenues 24,098*** for the remaining of 2022 Period of the vessel not in our possession 16% Unfixed days*** for the remaining of 2022 We create to share 16 Average contract duration*** 1.21 years
We create to share 17 * From July 19, 2022 ** As of June 30, 2022 (slide 15) *** Assumes vessels
fixed for 12 months upon redelivery to owners from previous charter **** As of July 25, 2022 Source: Company’s filings with the U.S. Securities and Exchange Commission Panamax Kamsarmax Post-Panamax Capesize Newcastlemax Q3
2022 $18,000 $19,300 $18,000 $21,500 $25,900 Q4 2022 $18,500 $19,800 $18,500 $23,800 $28,500 Q1 2023 $13,700 $15,100 $13,700 $11,800 $14,100 Q2 2023 $14,700 $16,000 $14,700 $16,600 $19,900 Q3
2023 $14,200 $15,600 $14,200 $22,400 $26,900 Q4 2023 $13,400 $14,800 $13,400 $20,100 $24,100 Q1 2024 $12,200 $13,600 $12,200 $12,400 $14,900 Q2 2024 $12,900 $14,200 $12,900 $17,300 $20,700 FFA rates**** used for the
unfixed revenues calculation Breakeven vs Estimated Revenue for the remainder of 2022 & 2023 *
We create to share 18 Dry Bulk Market Overview Source: Clarksons SIN
Source: Clarksons SIN 4.6% 12.0% 5.7% 10.8% Key demand drivers CAGR (2001-e2022) We create to
share 19
We create to share 20 Source: Clarksons SIN Increase YTD Chinese Steel - 7% US Wheat + 23% US Corn
+ 26% Chinese Iron Ore + 12% Australian Thermal Coal +117% Major Seaborne Commodity Prices
Source: Clarksons SIN orderbook is at a historical low Dry bulk The dry bulk orderbook is at a
20-year low point, total orderbook as % of total fleet is <7% We create to share 21
Diana Shipping Inc.’s Summary Remain focused on generating and securing free cash flows and rewarding
our shareholders with potentially growing dividends Maintain a strong balance sheet that allows us to entertain creative growth and fleet renewal at the opportune time Committed to our long-term strategy of providing relative stability in a
cyclical business with an emphasis on maximizing shareholder value We create to share 22
Q & A