Diana Shipping Inc. (NYSE:DSX) Q3 2019 Earnings Conference Call - Final Transcript

Dec 02, 2019 • 09:00 am ET

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Diana Shipping Inc. (NYSE:DSX) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Diana Shipping Third Quarter 2019 Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

[Operator Instruction]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ed Nebb, Investor Relations. Please go ahead.

Executive
Ed Nebb

Thank you, Kevin, and thanks all of you for joining us for the Diana Shipping Inc. 2019 third quarter conference call. The members of the management team who are with us today include Mr. Simeon Palios, Chairman and Chief Executive Officer; Mr. Anastasios Margaronis, President; Mr. Andreas Michalopoulos, Chief Financial Officer; Mr. Ioannis Zafirakis, Chief Strategy Officer and Secretary; Ms. Semiramis Paliou, Deputy CEO and Chief Operating Officer; and Ms.Maria Dede, Chief Accounting Officer.

Before management begins their remarks, let me briefly remind you of the safe harbor notice. Certain statements made during this conference call, which are not historical fact are forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act. Forward-looking statements are based on assumptions, expectations, projections, intentions and beliefs that may not prove to be accurate. For a description of the risks, uncertainties and other factors that may cause future results to differ from the forward-looking statements, please refer to the company's filings with the Securities and Exchange Commission. And with that, let me turn the call over to Mr. Simeon Palios, Chairman and Chief Executive Officer.

Executive
Simeon Palios

Thank you, Ed. Good morning, and thank you for joining us today to discuss the results of Diana Shipping Inc. for the third quarter of 2019. During the 2019 third quarter, the company continued to demonstrate its focus on creating shareholder value and prudently managing the business for the long term.

Specifically, we announced and completed several self-tender offers, returning a significant amount of capital to our shareholders. We also continue to actively manage our fleet profile, announcing agreements to sell two vessels. In addition to ensure an orderly succession and continued sound strategic management of the company, we have appointed a Deputy Chief Executive Officer.

Turning to our financial results. Diana Shipping Inc. reported net income of $1.8 million and net income attributed to common stockholders of $0.3 million for the third quarter of 2019. This compares to net income of $14.8 million and net income attributed to common stockholders of $13.3 million in the third quarter of 2018. Time charter revenues were $53.5 million for the third quarter of 2019, compared to $61.5 million for the same period of 2018. The decrease in time charter revenues was mainly due to the sale of two vessels in December 2018 and five vessels during the nine months ended September 30, 2019, as well as lower average time charter rates that the company achieved for its vessels during the recent quarter.

Turning to the balance sheet. Cash, cash equivalents and restricted cash totaled $149.4 million at September 30, 2019. Long-term debt, Net of deferred financing costs, including the current