Diana Shipping Inc. Reports Financial Results for the First Quarter Ended March 31, 2018

Diana Shipping Inc. (NYSE:DSX) (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported a net loss of $3.1 million and net loss attributed to common stockholders of $4.5 million for the first quarter of 2018, compared to a net loss of $26.5 million and net loss attributed to common stockholders of $27.9 million reported in the first quarter of 2017.

Time charter revenues were $48.4 million for the first quarter of 2018, compared to $31.3 million for the same period of 2017. The increase in time charter revenues was due to increased average time charter rates that the Company achieved for its vessels during the quarter and increased ownership days resulting from the enlargement of the fleet.

Fleet Employment Profile (As of May 09, 2018)

Diana Shipping Inc.’s fleet is employed as follows:

	Vessel	Sister Ships*	Gross Rate (USD Per Day)		Com**		Charterers	Delivery Date to Charterers***	Redelivery Date to Owners****	Notes
	BUILT  DWT
	22 Panamax Bulk Carriers
1	DANAE	A	$	10,000	5.00	%	Phaethon International Company AG	22-Dec-17	22-Jan-19 - 7-May-19
	2001  75,106
2	DIONE	A	$	7,050	5.00	%	Caravel Shipping Limited, Hong Kong	3-Feb-17	23-Jan-18	1
			$	10,350	5.00	%	Ausca Shipping Limited, Hong Kong	23-Jan-18	23-Mar-19 - 8-Jul-19
	2001  75,172
3	NIREFS	A	$	9,400	5.00	%	Jaldhi Overseas Pte. Ltd., Singapore	5-May-17	5-Jun-18 - 5-Sep-18	2
	2001  75,311
4	ALCYON	A	$	8,800	5.00	%	Hudson Shipping Lines Incorporated	20-Jul-17	20-Jul-18 - 20-Oct-18
	2001  75,247
5	TRITON	A	$	6,500	5.00	%	Ausca Shipping Limited, Hong Kong	8-Jun-17	8-Jul-18 - 23-Oct-18
	2001  75,336
6	OCEANIS	A	$	7,000	5.00	%	Ausca Shipping Limited, Hong Kong	30-May-17	30-Jul-18 - 14-Nov-18
	2001  75,211
7	THETIS	B	$	8,350	5.00	%	Ausca Shipping Limited, Hong Kong	14-Jul-17	14-Jul-18 - 14-Oct-18
	2004  73,583
8	PROTEFS	B	$	7,900	5.00	%	Hudson Shipping Lines Incorporated	24-Jun-17	24-Jun-18 - 9-Oct-18
	2004  73,630
9	CALIPSO	B	$	9,000	5.00	%	Transgrain Shipping B.V., Rotterdam	14-Mar-17	2-Mar-18	3
			$	12,200	5.00	%	Glencore Agriculture B.V., Rotterdam	12-Mar-18	28-May-19 - 12-Sep-19
	2005  73,691
10	CLIO	B	$	8,550	5.00	%	Phaethon International Company AG	9-Jul-17	9-Aug-18 - 9-Nov-18
	2005  73,691
11	NAIAS	B	$	10,000	5.00	%	Phaethon International Company AG	26-Nov-17	11-Feb-19 - 26-May-19
	2006  73,546
12	ARETHUSA	B	$	7,200	5.00	%	Noble Resources International Pte. Ltd., Singapore	23-Jan-17	27-Apr-18	4
			$	12,600	5.00	%	Glencore Agriculture B.V., Rotterdam	27-Apr-18	27-Apr-19 - 27-Jul-19
	2007  73,593
13	ERATO	C	$	10,500	5.00	%	Phaethon International Company AG	30-Dec-17	2-Mar-19 - 30-May-19
	2004  74,444
14	CORONIS	C	$	9,000	5.00	%	Narina Maritime Ltd	16-May-17	17-May-18 - 16-Jul-18	5
	2006  74,381
15	MELIA		$	9,500	5.00	%	Nidera S.P.A., Roma	19-Mar-17	28-Apr-18	6
			$	12,000	5.00	%	United Bulk Carriers International S.A., Luxemburg	28-Apr-18	28-Sep-19 - 28-Dec-19
	2005  76,225
16	ARTEMIS		$	9,000	5.00	%	Ausca Shipping Limited, Hong Kong	8-Jul-17	8-Jul-18 - 8-Oct-18
	2006  76,942
17	LETO		$	7,750	5.00	%	Glencore Agriculture B.V., Rotterdam	29-Dec-16	10-Jan-18
			$	12,500	5.00	%		10-Jan-18	10-May-19 - 25-Aug-19
	2010  81,297
18	SELINA	D	$	7,100	5.00	%	BG Shipping Co., Limited, Hong Kong	24-Jan-17	6-Feb-18	7
			$	12,250	5.00	%		6-Feb-18	6-Jun-19 - 6-Sep-19
	2010  75,700
19	MAERA	D	$	11,900	5.00	%	Unico Logistics Co., Ltd., Seoul	19-Sep-17	19-Jun-18 - 19-Aug-18
	2013  75,403
20	ISMENE		$	12,000	5.00	%	DHL Project & Chartering Limited, Hong Kong	16-Sep-17	16-Sep-18 - 16-Dec-18
	2013  77,901
21	CRYSTALIA	E	$	11,100	5.00	%	Glencore Agriculture B.V., Rotterdam	3-Oct-17	3-Oct-18 - 18-Jan-19
	2014  77,525
22	ATALANDI	E	$	5,300	5.00	%	Glencore Grain B.V., Rotterdam	26-Mar-16	27-Apr-18
			$	13,500	5.00	%	Uniper Global Commodities SE, Düsseldorf	27-Apr-18	27-Jun-19 - 27-Sep-19
	2014  77,529
	5 Kamsarmax Bulk Carriers
23	MAIA	F	$	10,125	5.00	%	Glencore Agriculture B.V., Rotterdam	27-Jul-17	27-Jul-18 - 27-Oct-18
	2009  82,193
24	MYRSINI	F	$	8,650	5.00	%	RWE Supply & Trading GmbH, Essen	8-Jun-17	31-Aug-18 - 31-Dec-18
	2010  82,117
25	MEDUSA	F	$	10,000	4.75	%	Cargill International S.A., Geneva	6-Jul-17	6-Jul-18 - 6-Oct-18
	2010  82,194
26	MYRTO	F	$	8,000	4.75	%	Cargill International S.A., Geneva	17-Jan-17	25-Apr-18	8,9
			$	14,000	4.75	%		25-Apr-18	25-May-19 - 25-Jul-19
	2013  82,131
27	ASTARTE		$	9,000	5.00	%	Glencore Agriculture B.V., Rotterdam	12-Jun-17	12-Aug-18 - 12-Nov-18
	2013  81,513
	5 Post-Panamax Bulk Carriers
28	ALCMENE		$	8,000	4.75	%	Cargill International S.A., Geneva	8-Jun-17	8-Jul-18 - 23-Oct-18
	2010  93,193
29	AMPHITRITE	G	$	11,150	4.75	%	Cargill International S.A., Geneva	28-Sep-17	28-Oct-18 - 28-Jan-19
	2012  98,697
30	POLYMNIA	G	$	10,100	4.75	%	Cargill International S.A., Geneva	15-Mar-17	18-May-18 - 15-Jul-18	5
	2012  98,704
31	ELECTRA	H	$	8,000	5.00	%	Uniper Global Commodities SE, Düsseldorf	11-Jun-17	11-Jul-18 - 11-Nov-18
	2013  87,150

32	PHAIDRA	H	$	7,750	5.00	%	Jera Trading Singapore Pte. Ltd.	19-May-17	13-Jan-18	10
			$	12,700	5.00	%	Uniper Global Commodities SE, Düsseldorf	13-Jan-18	13-Jan-19 - 13-Apr-19	2
	2013  87,146
	14 Capesize Bulk Carriers
33	NORFOLK		$	13,250	5.00	%	SwissMarine Services S.A., Geneva	1-Dec-17	1-Sep-19 - 1-Dec-19
	2002  164,218
34	ALIKI		$	10,300	5.00	%	SwissMarine Services S.A., Geneva	14-Feb-17	9-Apr-18
			$	18,000	5.00	%		9-Apr-18	9-Dec-19 - 9-Feb-20
	2005  180,235
35	BALTIMORE		$	11,300	4.75	%	Cargill International S.A., Geneva	16-Feb-17	18-May-18 - 1-Jul-18	5
	2005  177,243
36	SALT LAKE CITY		$	9,000	5.00	%	Uniper Global Commodities SE, Düsseldorf	20-Jan-17	1-May-18
			$	16,250	4.75	%	Cargill International S.A., Geneva	1-May-18	1-Jan-19 - 1-Mar-19
	2005  171,810
37	SIDERIS GS	I	$	13,000	5.00	%	Rio Tinto Shipping (Asia) Pte., Ltd., Singapore	21-Jun-17	21-Jul-18 - 21-Nov-18
	2006  174,186
38	SEMIRIO	I	$	14,150	5.00	%	Koch Shipping Pte. Ltd., Singapore	21-May-17	21-May-18 - 21-Sep-18
	2007  174,261
39	BOSTON	I	$	17,000	5.00	%	EGPN Bulk Carrier Co., Limited, Hong Kong	6-Dec-17	6-Apr-19 - 6-Jul-19
	2007  177,828
40	HOUSTON	I	$	10,000	5.00	%	SwissMarine Services S.A., Geneva	17-Feb-17	9-May-18	11,12
			$	19,000	5.00	%		9-May-18	25-Jan-19 - 24-Apr-19	13
	2009  177,729
41	NEW YORK	I	$	14,450	5.00	%	Koch Shipping Pte. Ltd., Singapore	23-Apr-17	2-Feb-18	14
			$	16,000	5.00	%	DHL Project & Chartering Limited, Hong Kong	2-Feb-18	2-Jun-19 - 2-Sep-19
	2010  177,773
42	SEATTLE	J	$	11,700	5.00	%	Koch Shipping Pte. Ltd., Singapore	8-Feb-17	19-May-18 - 23-Jul-18	5
	2011  179,362
43	P. S. PALIOS	J	$	10,550	5.00	%	Koch Shipping Pte. Ltd., Singapore	27-Jan-17	17-May-18 - 11-Jun-18	5
	2013  179,134
44	G. P. ZAFIRAKIS	K	$	15,000	5.00	%	RWE Supply & Trading GmbH, Essen	14-Aug-17	29-Sep-18 - 14-Jan-19
	2014  179,492
45	SANTA BARBARA	K	$	12,000	4.75	%	Cargill International S.A., Geneva	24-Jan-17	24-Apr-18
			$	20,250	4.75	%		24-Apr-18	9-Oct-19 - 9-Dec-19
	2015  179,426

46	NEW ORLEANS		$	11,250	5.00	%	Koch Shipping Pte. Ltd., Singapore	10-Dec-16	24-Mar-18
			$	21,000	5.00	%	SwissMarine Services S.A., Geneva	24-Mar-18	24-Feb-19 - 24-Apr-19
	2015  180,960
	4 Newcastlemax Bulk Carriers
47	LOS ANGELES	L	BCI_2014 5TCs AVG + 14%		5.00	%	SwissMarine Services S.A., Geneva	22-Jan-17	16-Apr-18
			$	19,150	5.00	%		16-Apr-18	1-Jan-19 - 16-Apr-19
	2012  206,104
48	PHILADELPHIA	L	$	15,500	5.00	%	Koch Shipping Pte. Ltd., Singapore	14-Mar-17	11-May-18	5,15
	2012  206,040
49	SAN FRANCISCO	M	$	11,750	5.00	%	Koch Shipping Pte. Ltd., Singapore	5-Jan-17	13-May-18	5
	2017  208,006
50	NEWPORT NEWS	M	BCI_2014 5TCs AVG + 24%		5.00	%	SwissMarine Services S.A., Geneva	10-Jan-17	10-Nov-18 - 10-Mar-19
	2017  208,021
* 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.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
1 The charter rate was US$7,200 for the first ninety (90) days of the charter period.
2 Vessel currently off-hire for drydocking.
3 Vessel on scheduled drydocking from March 4, 2018 to March 12, 2018.
4 Vessel off-hire for drydocking from January 23, 2018 to February 27, 2018.
5 Based on latest information.
6 Since September 17, 2017, Charterers have changed to COFCO Agri Freight SA.
7 The charter rate was US$4,500 for the first thirty (30) days of the charter period.
8 Vessel off-hire for drydocking from December 24, 2017 to January 12, 2018.
9 Charterers have agreed to pay the weighted average of the Baltic Panamax 4 T/C routes, as published by the Baltic Exchange on April 17, 2018 plus 15%, for the excess period commencing from April 17, 2018. If such a hire is less than the current rate, then the current rate of US$8,000 to apply.
10 Charterers have agreed to pay the weighted average of the Baltic Panamax 4 T/C routes, as published by the Baltic Exchange on January 3, 2018 plus 12%, for the excess period commencing from January 3, 2018.
11 The charter rate was US$5,150 for the first fifteen (15) days of the charter period.
12 Estimated redelivery date from the charterers.
13 Estimated delivery date to the charterers.
14 Charterers have agreed to pay the weighted average of the Baltic Capesize 5 T/C routes, as published by the Baltic Exchange on January 2, 2018 plus 10%, for the excess period commencing from December 29, 2017.
15 The compensation for the overlapping period from April 29, 2018 to May 11, 2018, which is beyond the maximum contractual period, is still pending to be agreed between Owners and Koch Shipping Pte. Ltd., Singapore.

Summary of Selected Financial & Other Data (unaudited)

		Three months ended March 31,
		2018			2017
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
Time charter revenues	$	48,365		$	31,288
Voyage expenses		2,077			1,061
Vessel operating expenses		22,930			21,316
Net loss		(3,052	)		(26,470	)
Net loss attributed to common stockholders		(4,494	)		(27,912	)
FLEET DATA
Average number of vessels		50.0			47.9
Number of vessels		50.0			48.0
Weighted average age of vessels		8.6			7.8
Ownership days		4,500			4,313
Available days		4,444			4,276
Operating days		4,435			4,201
Fleet utilization		99.8	%		98.2	%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1)	$	10,416		$	7,069
Daily vessel operating expenses (2)	$	5,096		$	4,942

(1)		Time charter equivalent rates, or TCE rates, are defined as our time charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards.  Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions.  TCE is a non-GAAP measure.  TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.
(2)		Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.

Conference Call and Webcast Information

The Company’s management will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Thursday, May 10, 2018.

Investors may access the webcast by visiting the Company’s website at www.dianashippinginc.com, and clicking on the webcast link. The conference call also may be accessed by telephone by dialing 1-877-407-8291 (for U.S.-based callers) or 1-201-689-8345 (for international callers), and asking the operator for the Diana Shipping Inc. conference call.

A replay of the webcast will be available soon after the completion of the call and will be accessible for 30 days on www.dianashippinginc.com. A telephone replay also will be available for 30 days by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers), and providing the Replay ID number 13679523.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership of dry bulk vessels. The Company’s vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

(See financial tables attached)

DIANA SHIPPING INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except share and per share data
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
		Three months ended March 31,
		2018				2017
REVENUES:
Time charter revenues	$	48,365			$	31,288
EXPENSES:
Voyage expenses		2,077				1,061
Vessel operating expenses		22,930				21,316
Depreciation and amortization of deferred charges		12,977				21,073
General and administrative expenses		6,989				5,786
Management fees to related party		600				420
Other loss		324				69
Operating gain/(loss)		2,468				(18,437	)
OTHER INCOME / (EXPENSES):
Interest and finance costs		(6,947	)			(6,388	)
Interest and other income		1,412				640
Gain/(loss) from equity method investments		15				(2,285	)
Total other expenses, net		(5,520	)			(8,033	)
Net loss	$	(3,052	)		$	(26,470	)
Dividends on series B preferred shares		(1,442	)			(1,442	)
Net loss attributed to common stockholders		(4,494	)			(27,912	)
Loss per common share, basic and diluted	$	(0.04	)		$	(0.34	)
Weighted average number of common shares, basic and diluted		103,124,133				81,253,721
		Three months ended March 31,
		2018				2017
Net loss	$	(3,052	)		$	(26,470	)
Other comprehensive loss (Actuarial loss)		(7	)			(7	)
Comprehensive loss	$	(3,059	)		$	(26,477	)

CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands of U.S. Dollars)
		March 31, 2018			December 31, 2017*
ASSETS		(unaudited)
Cash and cash equivalents	$	64,283		$	40,227
Other current assets		67,826			98,534
Vessels, net of depreciation		1,042,018			1,053,578
Other fixed assets, net		22,581			22,650
Restricted cash		25,582			25,582
Investments in related parties		3,264			3,249
Other non-current assets		3,387			2,902
Total assets	$	1,228,941		$	1,246,722
LIABILITIES AND STOCKHOLDERS' EQUITY
Long-term debt, net of deferred financing costs	$	587,209		$	601,384
Other liabilities		19,604			20,580
Total stockholders' equity		622,128			624,758
Total liabilities and stockholders' equity	$	1,228,941		$	1,246,722
* The balance sheet data have been derived from the audited consolidated financial statements at that date.

OTHER FINANCIAL DATA (unaudited)
		Three months ended March 31,
		2018				2017
Net Cash provided by / (used in) operating activities	$	9,805			$	(592	)
Net Cash provided by / (used in) investing activities		30,190				(58,021	)
Net Cash provided by / (used in) financing activities	$	(15,939	)		$	45,673

Corporate Contact:
Ioannis Zafirakis
Director, Chief Operating Officer and Secretary
Telephone: + 30-210-9470100
Email: [e-mail]
Website: www.dianashippinginc.com

Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: [e-mail]