Diana Shipping Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2009

• Press Release
• Source: Diana Shipping Inc.
• On 7:45 am EDT, Thursday August 6, 2009

ATHENS, Greece, Aug. 6, 2009 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE:DSX - News), 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.

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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:

                                             Daily Time    Charter
           Sister    Year                   Charter Hire  Expiration
 Name     Ships(1)  Built   DWT    Charterer   Rate          (2)
 ---------------------------------------------------------------------
 Nirefs      A      2001  75,311  Cosco Bulk    $60,500 Feb. 3, 2010 -
                                  Carrier Co.           Apr. 3, 2010
                                  Ltd.

 Alcyon      A      2001  75,247  Cargill       $34,500 Nov. 21, 2012
                                  International         - Feb. 21, 2013
                                  S.A., Geneva

 Triton      A      2001  75,336  Cargill       $24,400 Oct. 17, 2009 -
                                  International         Jan. 17, 2010
                                  S.A., Geneva

 Oceanis     A      2001  75,211  Hanjin        $40,000 Jul. 29, 2009 -
                                  Shipping Co.          Oct. 29, 2009
                                  Ltd., Seoul
                                  Bunge S.A.,   $18,000 Jul. 6, 2010 -
                                  Geneva                Sep. 21, 2010
                                                        (3)

 Dione       A      2001  75,172  Louis Dreyfus $12,000 Jun. 1, 2010 -
                                  Commodities           Sep. 1, 2010
                                  S.A., Geneva

 Danae       A      2001  75,106  Augustea      $12,000 Jan. 23, 2011 -
                                  Atlantica Srl,        Apr. 22, 2011
                                  Naples

 Protefs     B      2004  73,630  Hanjin        $59,000 Aug. 18, 2011 -
                                  Shipping Co.          Nov. 18, 2011
                                  Ltd., Seoul

 Calipso     B      2005  73,691  Cargill        $9,400 Dec. 24, 2009 -
                                  International         Mar. 24, 2010
                                  S.A., Geneva

 Clio        B      2005  73,691  Cargill       $11,000 Dec. 26, 2009 -
                                  International         Mar. 26, 2010
                                  S.A., Geneva

 Thetis      B      2004  73,583  Cargill       $10,500 Dec. 12, 2009 -
                                  International         Mar. 12, 2010
                                  S.A., Geneva

 Naias       B      2006  73,546  Constellation $34,000 Aug. 24, 2009
                                  Energy                (5)
                                  Commodities
                                  Group,
                                  Baltimore(4)
                                  J. Aron       $19,000 Jul. 24, 2010 -
                                  & Company,            Sep. 24, 2010
                                  New York              (5)

 Erato       C      2004  74,444  Cargill       $15,000 Nov. 27, 2009 -
                                  International         Feb. 27, 2010
                                  S.A., Geneva

 Coronis     C      2006  74,381  TPC Korea Co. $14,000 Feb. 26, 2010 -
                                  Ltd., Seoul           Apr. 26, 2010

 Aliki       -      2005  180,235 Cargill       $45,000 Mar. 1, 2011 -
                                  International         Jun. 1, 2011
                                  S.A., Geneva          (6)

 Salt Lake   -      2005  171,810 Refined       $55,800 Aug. 28, 2012 -
  City                            Success               Oct. 28, 2012
                                  Limited

 Norfolk     -      2002  164,218 Corus UK      $74,750 Jan. 12, 2013 -
                                  Limited               Mar. 12, 2013

 Sideris GS  D      2006  174,186 BHP Billiton  $39,000 Nov. 30, 2009
                                  Marketing AG  $36,000 Oct. 15, 2010 -
                                                        Jan. 15, 2011
                                                        (6)

 Semirio     D      2007  174,261 BHP Billiton  $31,000 Apr. 30, 2011 -
                                  Marketing AG          Jul. 30, 2011
                                                        (6)

 Boston      D      2007  177,828 BHP Billiton  $52,000 Sep. 28, 2011 -
                                  Marketing AG          Dec. 28, 2011
                                                        (7)

 Hull 1107   D      2010  177,000 Nippon Yusen  $48,000 Jan. 31, 2015 -
  (tbn New          (10)          Kaisha,        (8,9)  May 31, 2015
  York)                           Tokyo (NYK)           (8)

 Hull 1138   D      2009  177,000 Jiangsu       $55,000 Oct. 15, 2014 -
  (tbn                            Shagang               Jan. 15, 2015
  Houston)                        Group Co.             (8)
                         ---------
                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   Six Months Ended
                                      June 30,          June 30,
                                  2009      2008      2009     2008
                               --------- --------- --------- ---------
                                              (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.

                         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        Six Months Ended
                             June 30,                 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,    Dec. 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  Six Months Ended
                                     June 30,           June 30,
                                 2009     2008      2009      2008
                              --------- --------- --------- ----------
                                              (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)

Diana Shipping Inc.
Ioannis Zafirakis, Director, Executive Vice-President and
Secretary
+ 30-210-9470100
izafirakis@dianashippinginc.com

Comm-Counsellors, LLC
Investor and Media Relations:
Edward Nebb
+ 1-203-972-8350
enebb@optonline.net