Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2022; Declares Cash Dividend of $0.15 per Share for the Fourth Quarter 2022 and Special Stock Dividend

22 Feb 2023 15:43 CET

ATHENS, GREECE, February 22, 2023 – Diana Shipping Inc. (NYSE: DSX), (the
“Company”), a global shipping company specializing in the ownership and bareboat
charter-in of dry bulk vessels, today reported net income of $25.7 million and
net income attributed to common stockholders of $24.2 million for the fourth
quarter of 2022. This compares to net income of $41.1 million and net income
attributed to common stockholders of $39.7 million for the fourth quarter of
2021, including a gain of $15.3 million from the distribution of the common
shares of OceanPal Inc. to the Company’s shareholders, following its spinoff.
Earnings per share for the fourth quarter of 2022 was $0.28 basic and $0.27
diluted, compared to earnings per share of $0.51 basic and $0.48 diluted in the
same quarter in 2021.

Time charter revenues were $75.7 million for the fourth quarter of 2022,
compared to $68.8 million for the same quarter of 2021.

Net income in 2022, amounted to $119.1 million and net income attributed to
common stockholders amounted to $113.3 million. This compares to net income of
$57.4 million and net income attributed to common stockholders of $51.6 million,
in 2021. Time charter revenues were $290.0 million in 2022, compared to $214.2
million in 2021. Earnings per share in 2022 was $1.42 basic and $1.36 diluted,
compared to earnings per share of $0.64 basic and $0.61 diluted in 2021.

Cash and Special Dividend Declarations

The Company has declared a cash dividend on its common stock of $0.15 per share,
based on the Company’s results of operations during the fourth quarter ended
December 31, 2022. The cash dividend will be payable on or about March 20, 2023
to all shareholders of record as of March 13, 2023. The Company currently has
104,687,232 common shares issued and outstanding. In addition, the Company is
announcing that it intends to declare and pay quarterly cash dividends with
respect to the next three quarters of 2023 in an amount of not less than $0.15
per share. The actual declaration of future cash dividends, and the
establishment of record and payment dates, is subject to final determination by
the Company’s board of directors each quarter after its review of the company's
financial performance.

The Company has also declared a special stock dividend to shareholders of record
as of April 24, 2023 of an aggregate of 13,157 Series D Convertible Preferred
Shares of OceanPal Inc. held by the Company. The special stock dividend is
expected to be paid on or around May 16, 2023 (the “Stock Dividend”). Because
there is no public market currently existing or expected to develop for the
Series D Convertible Preferred Shares of OceanPal Inc., as an accommodation to
its common shareholders the Company will automatically convert the Series D
Convertible Preferred Shares into OceanPal Inc. common shares on or around the
Stock Dividend payment date and distribute such common shares to each common
shareholder in lieu of Series D Convertible Preferred Shares of OceanPal Inc.
Common shareholders of the Company will have the opportunity to elect to opt
out, in whole but not in part, of the conversion of the Series D Convertible
Preferred Shares and instead receive Series D Convertible Preferred Shares in
connection with the Stock Dividend.

Shareholders receiving OceanPal Inc. common shares will receive the pro-rata
number of common shares to which they are entitled following conversion, rounded
down to the nearest whole number, and any fractional shares shall be aggregated
and sold and the net proceeds thereof will be delivered to common shareholders.
All OceanPal Inc. fractional share calculations and the payment of cash in lieu
thereof will be determined at the shareholder nominee level. Shareholders
electing to receive Series D Convertible Preferred Shares by opting out of the
automatic conversion will receive the number of Series D Convertible Preferred
Shares equal to such shareholder’s pro-rata portion of all Series D Convertible
Preferred Shares, rounded down to the nearest whole number. Any fractional
Series D Convertible Preferred Shares that would otherwise be distributed will
be converted into OceanPal Inc. common shares at the applicable conversion rate
and sold, and the net proceeds therefrom will be delivered to such common
shareholder.

OceanPal Inc. will file a registration statement with the U.S. Securities and
Exchange Commission registering the OceanPal Inc. common shares and/or Series D
Convertible Preferred Shares in the Stock Distribution. No distribution of the
Series D Convertible Preferred Shares or OceanPal Inc. common shares will be
made until such registration statement has been declared effective.

Other Matters

Board of Directors. The Company’s board of directors has determined to increase
the size of the board from nine to eleven members, effective February 22, 2023.
Mr. Eleftherios Papatrifon will be transitioning from the role of Chief
Operating Officer to a member of the board of directors and an executive
committee member, and Ms. Jane Chao will fill the second vacancy resulting from
the increase in the size of the board of directors. Mr. Papatrifon is a seasoned
professional in the shipping industry with significant experience in public
company management, asset management, and corporate finance. Ms. Jane Chao is a
businessperson with many years of diverse experiences and successes in real
estate, hotel and food and beverage industries, she is also a Director of Wah
Kwong (China).

The Company is also announcing that it has signed a non-binding term sheet with
a major European bank for a new credit facility in an amount of up to $100
million. The new credit facility remains subject to successful negotiation of
definitive documentation and satisfaction of other customary closing conditions.
If completed, the proceeds of the new credit facility will be used to refinance
existing credit facilities secured by nine of the vessels in the Company’s
current fleet. The facility is expected to have a term of five years and bear
interest at the secured overnight financing rate plus 2.2%, and to include
customary financial and other covenants and conditions...

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