Diana Shipping (DSX) Q4 2014 earnings summary

Executive summary

• FY14 time charter revenue rose 7% YoY to $175.6M as fleet expansion more than offset lower charter rates; net loss narrowed to $10.3M from $21.2M.

• Fleet utilization remained high at 99.4%, while TCE fell 7% to $12,081/day; operating loss widened to $18.2M from $8.7M.

Financial highlights

• Time charter revenue was $175.6M vs. $164.0M in 2013; voyage expenses rose to $10.7M and vessel operating expenses to $86.9M.

• Net loss was $10.3M; net loss attributable to common stockholders was $15.3M after $5.1M of Series B preferred dividends; diluted loss per share was $0.19.

• Interest and other income reached $3.6M, including $3.2M of interest and fees on the $50M Diana Containerships loan; equity-method investment income was $12.7M.

• Operating cash flow fell 33% YoY to $44.9M, mainly from lower charter rates, increased drydock days and higher fleet-related expenses.

Outlook and guidance

• FY15 revenue was expected to remain near current levels or decrease with further charter-rate declines; operating expenses, depreciation and interest costs were expected to rise.

• FY15 G&A was expected to remain at current levels; voyage expenses were expected to remain flat or decrease with time charter revenue.

• Fixed revenue days covered 72% of FY15 as of the shareholder letter; all operating vessels were on time charter unless in drydock.

• Three newbuildings were scheduled for 2016; remaining vessel construction and acquisition obligations fell to $100.0M after early-2015 deliveries and payments.