Diana Shipping (DSX) Q4 2015 earnings summary

Executive summary

• 2015 remained a severe dry-bulk downturn: time charter revenue fell to $157.7M, while net loss widened to $64.7M; fleet utilization stayed high at 99.3%.

• Fleet expansion continued, with 43 vessels at year-end and 45 in operation by April 2016; three newbuildings and a related-party Panamax acquisition were planned for delivery during 2016.

Financial highlights

• Time charter revenue was $157.7M in 2015 versus $175.6M in 2014; lower charter rates and more drydock/off-hire days outweighed revenue from fleet growth.

• Operating loss widened to $47.2M from $18.2M; net loss was $64.7M versus $10.3M, and loss attributable to common shareholders was $70.5M versus $15.3M.

• Basic and diluted loss per share was $0.89 in 2015 versus $0.19 in 2014; preferred dividends of $5.8M reduced the loss attributable to common shareholders.

• Operating cash flow declined 47% to $23.9M; investing cash outflow was $155.6M and financing cash inflow was $106.0M.

Outlook and guidance

• 2016 revenue was expected to remain at 2015 levels or decline further with charter rates; voyage expenses were expected to decrease, partly from lower bunker-related costs.

• Vessel operating expenses and depreciation were expected to rise with fleet expansion; G&A was expected to remain near current levels and interest and finance costs to increase.

• Planned 2016 deliveries included three newbuildings and one secondhand vessel; the expanded fleet was expected to reach 49 dry-bulk vessels.

• Funding needs were expected to be met through operating cash flow and additional debt or equity; a $75.7M secured facility was arranged for newbuildings and financing was planned for Panamax acquisitions.