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Must-know: An overview of Diana Shipping’s earnings

Part 3
Must-know: An overview of Diana Shipping’s earnings (Part 3 of 9)

Must-know: Diana Shipping’s bottom line analysis

Bottom line analysis

Voyage expenses for the quarter stood at $2.2 million compared to $2.09 million in the same quarter last year. Meanwhile, vessel operating expenses amounted to $21.9 million, compared to $19.6 million for same period in 2013—an increase of 12.1%. The increase was attributed to the 16.6% increase in ownership days, resulting from the enlargement of the fleet.

 

Net Income TrendEnlarge Graph

Despite the increase in total operating expenses, daily operating expenses decreased to $6.4 million from $6.7 million mainly due to decreased average coupons, insurances, and other operating expenses. This decrease was partly offset by increased stores, sales, repairs and maintenance, and environmental costs.

Interest and other income for the quarter ending June 30,2014 recorded a significant increase to $939,000 compared to $150,000 recorded in the same quarter a year ago. This was mainly led by interest income and finance fee driving from a loan agreement with Diana Containerships Inc. It offset the marginal decrease in interest income due to the reduction of the company’s average capex.

Loss from investments in Diana Containerships Inc. amounted to $0.01 million compared to a loss of $3.7 million in 2015.

Impact on bottom line

For 2Q14, the company’s net loss stood at $5.7 million compared to $5.2 million from the same quarter a year ago. The marginal increase in loss was mainly due to a rise in the expenses during the quarter. It caused the fleet size to increase.

After the allocation of $1.44 million earnings to its preferred stock holders, net loss attributable to common stockholders widened to $7.2 million, or $0.09 per share, compared to $5.2 million or $0.06 per share.

For the second quarter, the company has also discussed its earnings weakness in light of a few industry fundamentals that have had an impact on it. We’ll discuss this in our next article in the series.

The impact would also be felt by peers like DryShips (DRYS), Navios Maritime Holdings (NM), Safe Bulkers (SB), and Diana Containerships Inc. (DCIX). The Guggenheim Shipping ETF (SEA) tracks shipping companies.

 

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