STUDENT MANAGED INVESTMENT FUND
[Transportation: Bulk Shipping]
This report is published for educational and investment purposes only
by students enrolled in American University’s Student Managed
Investment Fund.
Date: September 22, 2011
Diana Shipping Inc.
Ticker: DSX
Price: $7.66
Recommendation: Buy
5-Year Price Target: $24.72
___________________________________________________________
Safety Ratings
Earnings/Share
Mar
Jun
Sept
Dec
Year
P/E Ratio
Moody’s
No Bonds Outstanding
2006
$0.26
$0.28
$0.32
$0.37
$1.23
12.39
2007
$0.40
$0.41
$0.44
$0.49
$1.74
17.13
Standard & Poor’s
No Bonds Outstanding
2008
$0.71
$0.76
$0.77
$0.72
$2.96
4.15
2009
$0.47
$0.39
$0.36
$0.34
$1.56
9.00
Fitch
No Bonds Outstanding
2010
$0.36
$0.42
$0.42
$0.40
$1.60
7.28
2011
$0.41
$0.34
$0.314
$0.263
$1.327
___________________________________________________________
Source: Yahoo Finance
Investment Rationale (As of September 22, 2011)
Highlights (As of September 22, 2011)


Diana Shipping is the owner of 24 dry bulk cargo ships,
which it leases to various companies in the shipping industry
on a medium-to-long-term basis.

DSX has some of the lowest leverage and highest profit margins in
the dry bulk sector.



Company is committed to continuing sustainable growth and
is positioned accordingly.
Growth in the developing world is fueling an increasing
need for long-distance bulk hauling, which is currently

being overshadowed by a glut of ships on the market. This
will provide long-term support for growth in the shipping

industry.

Key
Statistics
Exchange
NYSE
The bulk shipping industry has been decimated by an
oversupply of ships, which has driven many companies to
the edge of bankruptcy. Diana Shipping is positioned not
only to weather the storm in the dry bulk shipping industry,
but to benefit from it.
Available cash will enable DSX to purchase ships from
insolvent competitors at bargain prices, positioning it for
significant appreciation as the sector recovers over the next
5 years.
Low P/B and P/E multiples make the company a long-term
value.
DCF valuation shows that the intrinsic value of the company
is approximately double its current price.
Current P/E (Yahoo Finance)
5.61
1.55
Current Price (Sept. 22, 2011)
$7.66
Beta (09/21/2011)
52 Week High (Nov. 09, 2010)
$13.71
Shares Outstanding
52 Week Low (Sept. 22, 2011)
$7.42
Market Cap (Sept. 22, 2011)
Prior Year EPS
$1.60
Projected 12 M Dividend Yield
Forward P/E (Yahoo Finance)
9.34
Fiscal year ends
82.573M
$632.51M
0.00%
Dec. 31
September 22, 2011
Diana Shipping Inc.
Business Description
Diana Shipping Inc. (DSX) is a ship holding company providing global transportation services. The company is incorporated in the
Marshall Islands and headquartered in Athens, Greece. Diana Shipping owns a fleet of 24 dry bulk carriers consisting of 15 Panamaxclass vessels, 1 Post-Panamax vessel and 8 Capesize vessels. An additional 2 Newcastlemax ships are under construction and are
scheduled for delivery in mid-2012 (See Appendix for fleet details). As of Dec. 31 2010, the average vessel age was 5.4 years. These
dry bulk carriers are used to haul bulk agricultural products (corn, rice, soybeans, etc.), or raw minerals (iron ore, coal, etc.) over long
distances.
Operations
Diana Shipping provides ships to companies looking to lease rather than purchase dry bulk carriers. In addition to providing the ships,
Diana also provides crews and maintenance. Leases typically have a duration of 1-5 years. Diana Shipping’s lease portfolio is well
diversified and includes BHP Billiton, Cargill International, Hyundai Merchant Marine Co., Hanjin Shipping Co. and Morgan-Stanley
Capital Group Inc among others. During 2010, no single lessee accounted for more than 18% of revenue. Fleet utilization rates have
consistently been above 97%, contributing to one of the industry’s highest operating and profit margins; 46.87% and 45.49%,
respectively.
Profits are significantly lower than they were during the pre-recession shipping boom, but they have begun to recover from their 2009
low. This recovery in income is primarily attributable to a number of long-term leases locked in at high, pre-recession rates and
stabilizing lease rates as measured by the Baltic Dry Index (see industry overview). However, rates declined again in early 2011 as the
industry sought to process another wave of new ships entering the market and fallout from the Japanese tsunami and Australian
flooding reduced shipping demand. Should rates remain at this depressed level, the company will be less profitable than analysts are
forecasting in the year ahead. However, unlike many of its peers, Diana Shipping is positioned to continue grow and remain in the
black.
Management
Based on public statements, management appears to be focused foremost on keeping a strong balance sheet, which will be key to
preserving shareholder wealth during this period of shipping industry volatility. Simeon Palios, chairman and CEO, has also
repeatedly stressed the importance of sustainable strategic growth. A solid balance sheet plays into this goal, by increasing the
company’s access to capital markets and decreasing its cost of borrowing.
Name
Simeon Palios
Anastasios Margaronis
Andreas Michalopoulos
Ioannis Zafirakis
Maria Dede
Boris Nachamkin
Konstantinos Psaltis
Apostolos Kontoyannis
William Lawes
Analyst: John Stefos
Age
Since
69
55
39
39
38
77
72
62
67
2005
2005
2006
2008
2005
2005
2005
2005
2005
Current Position
Chairman of the Board, Chief Executive Officer
President, Director
Chief Financial Officer, Treasurer
Executive Vice President, Secretary, Director
Chief Accounting Officer
Director
Director
Independent Director
Independent Director
AU SMIF
Page 2
September 22, 2011
Diana Shipping Inc.
Industry Overview and Competitive Positioning
Dry Bulk Shipping
The transportation industry, and the shipping industry in particular, tends to be highly cyclical. Increased demand during expansions
leads to increased purchases of capital assets. Ships are unique in the transportation industry because of the time it takes between
placing an order and the new ship entering the market. Often, by the time new ships hit the waves, the expansion-driven demand that
drove their construction has given way to recession.
Between 2005 and mid-2008 this cycle was exacerbated by exploding demand for Iron ore, coal, grain and other bulk commodities in
India and China. Chartering rates also exploded, resulting in thousands of new dry bulk haulers being ordered. As these new ships
began to be delivered, the 2008-2009 global recession hit. Charter rates (as measured by the Baltic Dry Index) plunged to less than one
tenth of their previous level. Ships ordered before the recession are still being delivered, creating an oversupply of available ships
which, in turn, has placed continued downward pressure on leasing prices.
Impact of the 2008-2009 Recession on the Baltic Dry Index
Source: http://www.shareswatch.com.au/blog/stockmarket/the-all-ordinaries-the-baltic-dry-index-and-other-charts-to-watch/
The Baltic Dry Index is a common aggregate measure of daily charter rates of different types of bulk shipping vessels.
Outlook
The dry bulk shipping sector has not yet stabilized, nor is it likely to do so in the next 18-24 months. This sector remains plagued by
oversupply with total fleet growth this year expected around 14%, down from 16% last year. 1 In spite of rapidly growing demand for
raw material imports in India and China, new ship construction has outpaced the growing demand for bulk commodity imports. With
glut of ships on the leasing market, low leasing prices, and high steel prices, an increasing number of older ships are been scrapped. It
will take an additional 18-24 months for scrapping and import growth to soak up this oversupply.1
In the short-term, the ongoing supply-side crisis in the dry bulk shipping sector will continue to lead to volatility in the Baltic Dry
Index and equity prices. However, in the medium term, new deliveries are expected to drop sharply between 2013 and 2014 leading to
stabilization. Once stabilization occurs, the industry looks to be a solid growth opportunity thanks in large part to ongoing demand for
raw materials, which are fueling industrialization in India and China. Growth in shipping demand will also increase as manufacturing
begins to recover in Europe and the United States.
Industry Players
There are no dominant players in the dry bulk industry. Rather, the industry is fragmented with many small public and private
companies below $500 million in market capitalization. Typical companies are under 10 years old, own between 10 and 30 ships, and
are highly leveraged. These companies were profitable before the recession, but many are struggling to remain so today. With leasing
rates unlikely to substantially increase within the next 18 to 24 months, it is likely that the industry will undergo a period of
1
Saul, Jonathan and Randy Fabi. Growth Fears Add to Dry Bulk Shipping Crisis. August 4, 2011 < http://uk.reuters.com/article/2011/08/04/uk-shipping-drybulkeconomy-idUKTRE77348X20110804>.
Analyst: John Stefos
AU SMIF
Page 3
September 22, 2011
Diana Shipping Inc.
consolidation with a substantial number of bankruptcies (see the Comparables section for more information on industry players).
Diana Shipping’s large cash position will enable it to acquire new ships at bargain prices over the next two years, resulting in
substantially higher profits as this cyclical industry recovers in the second half of the decade.
Impact of 2008-2009 Recession on Dry Bulk Vessel Prices
Source: http://seekingalpha.com/article/232661-our-dry-bulk-shipping-projections-sink-or-swim
Competitive Position within Industry
Diana Shipping has some of the highest liquidity, and margins in the sector as well as some of the lowest leverage ratios. It also has
the advantage of being insulated from spot market price swings by its longer-term leases. DSX is a moderately sized company by
industry standards. Some of its competitors are larger, such as Dry Ships Inc. (DRYS), which owns a total of 35 dry bulk haulers.
However, size does not seem to be a significant advantage in this sector, as no single company is large enough to have pricing power,
and the value of economies of scale is limited. The shipping industry is highly fragmented with yahoo finance recognizing 111
different competitors with each company controlling a very small portion of the overall market.
Two Year Equity Performance DSX and Competitors
Source: Yahoo Finance
Analyst: John Stefos
AU SMIF
Page 4
September 22, 2011
Diana Shipping Inc.
Comparables
Company Name
Mkt. Cap
Revenue
(ttm)
Profit
Margin (ttm)
P/E
(ttm)
P/S
(ttm)
ROA
Debt/Equity
Total Cash
Total
Cash/Revenue
Diana Shipping
(DSX)
$632.51M
$279.04M
45.49%
5.61
2.66
5.44%
30.15%
375.61M
134.61%
Dry Ships (DRYS)
$1.24B
$872.78M
7.71%
16.19
1.45
2.61%
98.95%
367.67M
42.13%
Navios Maritime
Holdings Inc. (NM)
$359.97M
$707.23M
11.40%
5.05
0.51
3.11%
129.28%
342.35M
48.41%
Eagle Bulk Shipping
Inc. (EGLE)
$116.51M
$308.28M
1.30%
32.00
0.38
1.61%
174.08%
51.13M
16.59%
Excel Maritime
Carriers (EXM)
$196.97M
$401.14M
23.58%
2.05
0.50
1.50%
62.87%
59.73M
14.89%
Macroeconomic Drivers within the Industry
Raw Material / Commodity Demand
The demand for imported raw materials and agricultural goods is what fundamentally drives the dry bulk shipping sector. Demand for
raw material and commodity inputs, such as such as Iron ore, coal, and timber, is driven by consumption of manufactured goods,
which is dependent on overall economic health. Increasing demand from the US, Europe, China, India, and developing nations would
help to soak up the excess supply of ships and push leasing prices higher. Conversely, a recession or significant slowdown in China or
India in the near term would cause demand for such raw materials to decline dramatically. This would, in turn, decrease demand for
shipping extending the oversupply problem.
Imports / Exports
The bulk shipping industry concentrates on long-distance hauling and international shipping. The industry would be adversely affected
if large importers of raw materials, such as China and India, were to develop domestic sources of such materials large enough to meet
their growing demand.
Japanese Tsunami and Australian Flooding
The flooding in eastern Australia shut down mine operations earlier this year resulting in a temporary slowdown in the supply of
materials carried by bulk shippers. The Japanese tsunami reduced Japanese industrial output, which reduced demand for materials and
commodities. These natural disasters and their impact on dry bulk shipping demand have contributed to the recent decline in the Baltic
Dry Index.
Macro Trends
Globalization and industrialization in the developing world drive the dry bulk shipping sector. As long as these trends continue to
grow, the sector will continue to grow. Between 2014 and 2015, the demand for bulk shipping, fueled by these macro trends, will
likely catch up to the current oversupply of ships. Once this occurs, the cyclical dry bulk shipping sector appears poised for healthy
expansion driven by the growing demand for commodities and raw materials in the developing world.
Investment Summary
Diana Shipping Inc. offers an opportunity to benefit from the near-term instability of the dry bulk shipping sector as leasing prices
begin to recover in 2014 and beyond. Diana’s superior cash and leverage will enable it to expand by exploiting opportunities as they
arise. DSX is positioned to take advantage of declining ship prices driven by highly leveraged competitors’ efforts to raise cash by
scrapping or selling ships. This was demonstrated by Diana Shipping’s recent purchase of a Panamax vessel for less than $30 million.
Such vessels were selling for nearly $100 million dollars three years ago.
Before the recession, Diana Shipping was trading around $30 per share with a fleet of 19 ships, 5 smaller than its fleet is today.
Recovering shipping rates and a newly acquired, larger fleet will enable DSX to return to this level or beyond in the second half of the
decade. Thanks to its strong balance sheet, Diana Shipping will be poised to ride the next upswing of this cyclical industry delivering
higher returns for its shareholders.
Analyst: John Stefos
AU SMIF
Page 5
September 22, 2011
Diana Shipping Inc.
Valuation
Discounted Cash Flow
The model that I developed to find Diana Shipping’s intrinsic value is based on several assumptions.
1) Leasing rates will not decline further (rates are at the lowest they have ever been except for a short period in 2009 and have
been driven down temporarily by flooding in Australia and a decrease in Japanese demand for raw materials resulting from
the tsunami)
2) Diana Shipping’s customers will not default on their contracts.
3) China and India will not have recessions or dramatic slowdowns within the next 5 years.
4) After the glut of ships works its way through the market in 2012 and 2013, Diana’s leasing rates will gradually return to the
average between their 2008 high and their current low.
5) Beginning in 2014, Diana Shipping will acquire 3 new ships per year (2 Panamax and 1 Capesize). I consider this growth
scenario to be extremely conservative. Diana acquired 3 new ships in 2010 alone and currently has enough cash to purchase
12 Panamax ships without accessing any credit.
6) 4% Terminal Growth Rate
7) A required equity rate of return of 15.91% per year (CAPM inputs: Beta = 1.55, Market Return = 11% per year, Risk Free
Rate = 2.08%)
Estimated EPS
2012
$0.67
2013
$0.407
2014
$1.39
2015
2016
$1.93
$2.54
Horizon Value = $22.18
Intrinsic Value = $14.66
2-Year Target = $19.30
5-Year Target = $24.72
Risks to DCF Intrinsic Value and Price Target
This valuation should be viewed in the context of the ongoing volatility of the dry bulk shipping sector. Equity prices of the entire
sector are likely to continue to reflect investor worries about bankruptcies in the near term. The shares of Diana Shipping Inc. are also
likely to face substantial volatility. As mentioned in the assumptions section above, this model is based on continuing robust demand
for raw materials and commodities in the developing world. A significant decline in this demand over the next 18-24 months would
reduce demand for shipping. This would, in turn, push back the recovery in lease rates, which this model assumes will begin in 2014.
Ratio Analysis
The turbulence in the dry bulk sector precludes meaningful multiples valuation. However, comparing Diana Shipping Inc.’s current
multiples with its historical averages could help to contextualize its current valuation. Fear seems to be playing a central role in the
current disposition of the sector with solid companies, like DSX, trading at extremely low multiples. Comparing the company’s
current price with its price calculated using the company’s average 5-year P/E helps to show the value of the stock in a more stable
environment. This analysis helps to verify the intrinsic value estimate generated using the DCF model.
EPS (ttm)
5-Year Average P/E
$1.57
9.99
EPS (forward 12
month)
$1.01
5-Year Average P/E
9.99
Expected Price in
Stable Environment
$15.68
Expected Price in
Stable Environment
$10.13
Financial Analysis
Dupont Analysis
Return on Equity
0.1095
Net Income / Sales
0.4549
Sales/Assets
0.1807
Assets/Equity
1.3319
Breaking down the company’s ROE using a DuPont Analysis shows that low leverage and low assets turnover ratios seem to be
holding down ROE. However, low asset turnover is typical in the shipping industry and the company’s low leverage is one of its
strongest qualities. In fact, this ROE is high for the dry bulk shipping sector. Competitors ROEs are as follows: DRYS - 0.0214, NM 0.0673, EGLE - 0.0061, EXM - 0.0565
Analyst: John Stefos
AU SMIF
Page 6
September 22, 2011
Diana Shipping Inc.
Earnings
Earnings have recovered somewhat since they bottomed in 2009. However, earnings are likely to decline over the short term as the
new ships continue to enter the market. Over the last several years, the company has opted to keep these earnings on its balance sheet
rather than pay dividends. This is reflected in the book value of each DSX share, which is currently $14.30 according to yahoo
finance.
Cash Flow
Diana Shipping has strong cash flows. The company has a profit margin of approximately 45% and pays no dividends, so that income
remains available for use. In addition, of the company’s expenses, 37% are depreciation and amortization requiring no outlay of cash.
Capital Structure and Balance Sheet
Maintaining a strong balance sheet is one of management’s often repeated
priorities. The strength of Diana Shipping’s balance sheet is one of the principal
characteristics that sets this company apart from others in the sector. The
company has a current ratio of 12.48 and has enough cash on its balance sheet to
increase its fleet size by approximately 50% without ever accessing its available
lines of credit. Its current capital structure is composed of approximately 76%
equity and 24% debt. The debt is all from direct bank loans including an $82.6
million line of credit with the export-import bank of China opened last year. The
company has no bonds outstanding. While others in the dry bulk sector may be
facing tough times, Diana’s strong balance sheet will not only protect it from bankruptcy, but also enable it to grow.
Major Shareholders
Top Institutional Holders
Shares
% Out
SEIZERT CAPITAL PARTNERS LLC
4,528,561
5.56
49,633,028 Jun 30, 2011
DREMAN VALUE MANAGEMENT, L.L.C.
3,167,071
3.89
34,711,098 Jun 30, 2011
DEUTSCHE BANK AKTIENGESELLSCHAFT
2,449,264
3.01
26,843,933 Jun 30, 2011
WELLS FARGO & COMPANY
1,884,380
2.31
20,652,804 Jun 30, 2011
MORGAN STANLEY
1,675,954
2.06
18,368,455 Jun 30, 2011
OHIO-PUBLIC EMPLOYEES RETIREMENT SYSTEM
(PERS)
1,643,255
2.02
18,010,074 Jun 30, 2011
Argyll Research, LLC
1,535,000
1.89
16,823,600 Jun 30, 2011
American Century Companies, Inc.
1,532,583
1.88
16,797,109 Jun 30, 2011
HBK INVESTMENTS, L.P.
1,527,193
1.88
16,738,035 Jun 30, 2011
Ameriprise Financial, Inc.
1,400,339
1.72
15,347,715 Jun 30, 2011
Top Mutual Fund Holders
Value* Reported
Shares
% Out
DWS Dreman Small Cap Value Fd
2,425,884
2.98
26,587,688 Jun 30, 2011
Value* Reported
AMERICAN CENTURY SMALL CAP VALUE FUND
1,225,000
1.50
13,426,000 Jun 30, 2011
Advisors Inner Circle Fund-Cambiar Small Cap Fund
794,000
0.98
8,940,440 Apr 30, 2011
PAX WORLD BALANCED FUND, INC.
767,522
0.94
9,087,460 Mar 31, 2011
ROYCE OPPORTUNITY FUND
702,700
0.86
7,701,592 Jun 30, 2011
MFS INTERNATIONAL NEW DISCOVERY FUND
625,000
0.77
7,400,000 Mar 31, 2011
RiverSource Equity Ser-Columbia Mid Cap Growth
Opportunitiy
478,918
0.59
5,967,318 Feb 28, 2011
ING VARIABLE PRODUCTS-ING SMALL COMPANY
PORTFOLIO
298,494
0.37
3,271,494 Jun 30, 2011
MARSHALL MID-CAP VALUE FUND
254,900
0.31
2,793,704 Jun 30, 2011
OPPENHEIMER MAIN STREET SMALL & MID CAP FUND
253,807
0.31
3,005,074 Mar 31, 2011
Source: Yahoo Finance
Analyst: John Stefos
AU SMIF
Page 7
September 22, 2011
Diana Shipping Inc.
Investment Risks
Commodity Risk
Fluctuations in commodity prices could affect the demand for the shipping services that Diana Shipping Inc. provides. However, DSX
is not directly exposed to such fluctuations
Exchange Rate Risk
Diana Shipping’s functional currency is the U.S. dollar. However, it is involved in transactions using various foreign currencies
throughout its operations.
Interest Rate Risk
The company is exposed to interest rate risk as some of its debt instruments have variable rates.
Market Risk
Diana Shipping is in a highly specialized sector. Its price performance is more a function of the fundamentals of that sector than of
overall market trends and risks.
Credit Risk
As of September 2011, the company had no outstanding public debt, but it did have several outstanding loans. The firm’s cost of debt
is relatively low for a firm of its size, which is a reflection of its exceptionally strong balance sheet.
Source: Company Fillings, and Bloomberg
Figure 1: Income Statement
Period Ending
Total Revenue
Cost of Revenue
Gross Profit
Operating Expenses
Research Development
Selling General and Administrative
Non Recurring
Others
Dec 31, 2010
275,448
64,977
Dec 31, 2009
239,342
53,334
Dec 31, 2008
337,391
54,902
210,471
186,008
25,347
53,083
17,464
44,686
-
-
-
133,639
124,336
225,837
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest
1,041
133,082
5,213
127,869
910
924
124,782
3,284
121,498
-
1,234
227,071
5,372
221,699
-
Net Income From Continuing Ops
128,779
121,498
221,699
-
-
-
Net Income
Preferred Stock And Other Adjustments
128,779
-
121,498
-
221,699
-
Net Income Applicable To Common Shares
Source: Yahoo Finance
128,779
121,498
221,699
Total Operating Expenses
Operating Income or Loss
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items
Analyst: John Stefos
AU SMIF
282,489
13,831
(438)
43,259
Page 8
September 22, 2011
Diana Shipping Inc.
Figure 2: Cash Flow Statement
Period Ending
Net Income
Operating Activities, Cash Flows Provided By or Used In
Depreciation
Adjustments To Net Income
Changes In Accounts Receivables
Changes In Liabilities
Changes In Inventories
Changes In Other Operating Activities
Total Cash Flow From Operating Activities
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures
Investments
Other Cash flows from Investing Activities
Dec 31, 2010
128,779
Dec 31, 2009
121,498
Dec 31, 2008
221,699
53,175
8,204
(284)
(8,416)
(1,237)
(1,019)
44,574
4,015
1,463
(4,027)
315
(15,935)
43,221
240
176
(2,988)
(1,044)
(153)
178,292
151,903
261,151
(259,689)
7,690
(314)
(65,225)
(7,690)
(166)
(109,568)
906
Total Cash Flows From Investing Activities
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid
Sale Purchase of Stock
Net Borrowings
Other Cash Flows from Financing Activities
(252,313)
(73,081)
(108,662)
35,337
102,680
-
98,523
43,510
-
(247,001)
119
139,700
-
Total Cash Flows From Financing Activities
Effect Of Exchange Rate Changes
136,997
-
141,583
-
(107,182)
-
62,976
220,405
45,307
Change In Cash and Cash Equivalents
Currency in USD.
Source: Yahoo Finance
Analyst: John Stefos
AU SMIF
Page 9
September 22, 2011
Diana Shipping Inc.
Figure 3: Balance Sheet
Period Ending
Assets
Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
345,414
467
4,068
4,700
282,438
7,690
183
2,831
4,014
62,033
1,646
3,146
1,729
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges
354,649
1,217,972
8,409
4,359
297,156
1,009,173
11,457
2,639
68,554
987,766
886
Total Assets
Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
1,585,389
1,320,425
1,057,206
11,367
7,320
13,823
8,711
5,400
18,275
8,033
11,979
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill
32,510
377,294
1,428
4,227
38,413
-
32,386
276,268
1,202
11,244
-
20,012
238,094
1,122
22,502
-
Total Liabilities
Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity
453,872
321,100
281,730
820
222,246
908,467
(16)
815
93,467
904,977
66
751
(28,031)
802,574
182
Total Stockholder Equity
1,131,517
999,325
775,476
Net Tangible Assets
1,131,517
999,325
775,476
Currency in USD.
Source: Yahoo Finance
Analyst: John Stefos
AU SMIF
Page 10
September 22, 2011
Diana Shipping Inc.
Appendix: Vessel Leases
Vessel
BUILT
Sister
Ships
*
DWT
Gross
Rate
(USD
Per
Day)
Com*
*
Charterer
Delivery
Date to
Charterer
Redelivery Date to
Owners***
Notes
Panamax Vessels
1
CORONIS
2006
2
6/Apr/2010
6/Mar/2012
-
21/Jun/2012
C
20,500
5.00%
C Transport
Panamax Ltd.,
Isle of Man
4/Mar/2010
4/Dec/2011
-
4/Mar/2012
B
13,250
5.00%
Cargill
International
S.A., Geneva
8/Jul/2011
24/May/2012
-
23/Aug/2012
B
19,750
5.00%
J. Aron &
Company, New
York
24/Sep/2010
24/Aug/2012
-
24/Oct/2012
B
25,000
5.00%
Daelim
Corporation,
Seoul
8/May/2010
8/Apr/2012
-
8/Jun/2012
5.00%
Cargill
International
S.A., Geneva
74,444
73,593
NAIAS
73,546
CLIO
2005
6
Siba Ships Asia
Pte. Ltd.
ARETHUSA
2006
5
5.00%
74,381
2007
4
24,000
ERATO
2004
3
C
73,691
CALIPSO
23,000
B
13,750
2005
7
1
0
11,750
4,75%
6/Aug/2011
6/Jul/2012
-
6/Oct/2012
B
13,750
5.00%
Cargill
International
S.A., Geneva
23/Feb/2011
23/Jan/2012
-
23/Apr/2012
A
20,500
5.00%
Louis Dreyfus
Commodities
S.A., Geneva
26/Sep/2010
26/Jul/2012
-
26/Nov/2012
18/Apr/2011
18/Mar/2013
-
18/May/2013
75,172
6/Aug/2011
4
A
15,600
5.00%
Hyundai
Merchant Marine
Co., Ltd., Seoul,
South Korea
A
19,750
5.00%
China National
Chartering Co.
Ltd. (Sinochart),
Beijing
17/Sep/2010
17/Aug/2012
-
1/Nov/2012
A
19,500
4.75%
Resource Marine
Pte., Ltd,
Singapore
11/Dec/2010
11/Nov/2013
-
11/Feb/2014
A
34,500
4.75%
Cargill
International
21/Feb/2008
21/Nov/2012
-
21/Feb/2013
75,106
75,211
TRITON
2001
1
3
73,583
18/Sep/2008
OCEANIS
2001
1
2
73,630
DANAE
2001
1
1
12/Oct/2011
Cargill
International
S.A., Geneva
DIONE
2001
-
Hanjin Shipping
Co. Ltd., Seoul
THETIS
2004
5/Oct/2011
5.00%
B
9
20/Jul/2011
2,3
20/Jul/2011
PROTEFS
2004
4/Sep/2010
73,691
59,000
8
1
75,336
ALCYON
Analyst: John Stefos
AU SMIF
Page 11
5
September 22, 2011
Diana Shipping Inc.
S.A., Geneva
2001
1
4
75,247
NIREFS
A
2001
1
5
21,000
5.00%
16,500
5.00%
75,311
MELITE
2004
76,436
Louis Dreyfus
Commodities
Suisse S.A.
Cargill
International
S.A., Geneva
12/Feb/2010
28/Dec/2011
-
27/Mar/2012
1/Feb/2011
1/Jan/2013
-
1/Mar/2013
5/Oct/2012
-
4/Jan/2013
-
12/Mar/2013
Post-Panamax Vessels
1
6
ALCMENE
20,250
2010
5.00%
Cargill
International
S.A., Geneva
20/Nov/2010
93,193
Capesize Vessels
1
7
NORFOLK
74,750
3.75%
Corus UK
Limited
12/Feb/2008
12/Jan/2013
26,500
5.00%
Minmetals
Logistics Group
Co. Ltd., Beijing
1/Mar/2011
1/Feb/2016
55,800
5.00%
Refined Success
Limited
28/Sep/2007
28/Aug/2012
-
28/Oct/2012
D
30,500
5.00%
BHP Billiton
Marketing AG
16/Oct/2010
16/Feb/2013
-
16/Jun/2013
D
17,350
5.00%
Cargill
International
S.A., Geneva
30/May/2011
15/Mar/2013
-
14/Aug/2013
52,000
5.00%
BHP Billiton
Marketing AG
13/Nov/2007
4TC AVG
5.00%
BHP Billiton
Marketing AG
29/Sep/2011
14,000
5.00%
Morgan Stanley
Capital Group
Inc.
10/Oct/2011
10/Jul/2013
-
10/Nov/2013
8
D
55,000
4.75%
Shagang
Shipping Co.
3/Nov/2009
3/Oct/2014
-
3/Jan/2015
9
D
48,000
3.75%
Nippon Yusen
Kaisha, Tokyo
(NYK)
3/Mar/2010
3/Jan/2015
-
3/May/2015
2002 164,218
1
8
ALIKI
1/Apr/2016
2005 180,235
1
9
SALT LAKE CITY
2005 171,810
2
0
SIDERIS GS
2006 174,186
2
1
SEMIRIO
2007 174,261
2
2
BOSTON
D
2007 177,828
2
3
29/Sep/2011
6,7
10/Oct/2011
HOUSTON
2009 177,729
2
4
NEW YORK
2010 177,773
Analyst: John Stefos
AU SMIF
Page 12
September 22, 2011
Diana Shipping Inc.
Vessels Under Construction
2
5
LOS ANGELES
E
18,000
5.00%
EDF Trading
Limited, London
29/Feb/2012
29/Dec/2015
-
29/Apr/2016
10,11,1
3
E
18,000
5.00%
EDF Trading
Limited, London
30/Apr/2012
30/Dec/2015
-
30/Jun/2016
10,12,1
3
2012 206,000
2
6
PHILADELPHIA
2012 206,000
* 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.
*** 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.
1
Vessel off-hire for drydocking from July 30, 2011 to August 15, 2011.
2
Period extended for one (1) or two (2) laden legs in charterers' option at US$ 13,750 per day.
3
Estimated date based on latest information received from charterers.
Hanjin Shipping Co. Ltd., has agreed to compensate the Owners for the difference between the new rate and the previous
rate for the period from August 6, 2011 to August 18, 2011.
4
5
6
Resource Marine Pte., Ltd, Singapore is a guaranteed nominee of Macquarie Bank Limited.
Estimated date.
7
Charterer has agreed to pay a daily rate which equals the average of the 4TC Routes for an approximate period of ten (10)
days.
8
Morgan Stanley Capital Group Inc. has the option to employ the vessel for a further minimum eleven (11) to a maximum
thirteen (13) month period at a gross rate of US$15,000 per day starting twenty-four (24) months after delivery of the vessel
to the charterer.
9
Shagang Shipping Co. is a guaranteed nominee of the Jiangsu Shagang Shipping Group Co.
10
Year of delivery and dwt are based on shipbuilding contracts.
11
This newbuilding is also referred to as Hull H1234.
12
This newbuilding is also referred to as Hull H1235.
13
Based on expected date of delivery to owners.
Source: http://www.dianashippinginc.com/default.asp?siteID=1&pageid=69&langid=1
Analyst: John Stefos
AU SMIF
Page 13