Diana Shipping (DSX) Q4 2016 earnings summary

Executive summary

• 2016 remained a severe dry-bulk downturn: time-charter revenue fell 28% YoY as average TCE rates declined 37%; net loss widened to $164.2M.

• Fleet utilization stayed high at 99.4%; disciplined cost control lowered vessel operating expenses despite fleet growth.

Financial highlights

• Time-charter revenue was $114.3M vs. $157.7M in 2015; operating loss was $88.3M vs. $47.2M.

• Net loss was $164.2M vs. $64.7M; loss attributable to common shareholders was $170.0M, or $2.11/share, vs. $70.5M, or $0.89/share.

• Loss from equity-method investments was $56.5M, including a $17.6M impairment of the containership investment.

• Net cash used in operations was $21.0M vs. $23.9M provided in 2015; year-end cash including compensating balances was $121.1M.

Outlook and guidance

• 2017 revenue expected to remain at 2016 levels or increase from the very low 2016 charter-rate base.

• 2017 vessel operating expenses expected to remain at or below 2016 levels; depreciation and interest/finance costs expected to rise.

• Cash on hand and anticipated improved charter rates were expected to fund 2017 capital requirements; additional debt or equity remained possible.