Diana Shipping Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2009

ATHENS, GREECE, November 10, 2009 – Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the transportation of dry bulk cargoes, today reported net income of $28.7 million for the third quarter of 2009. This compared to net income of $57.6 million reported in the third quarter of 2008.

Voyage and time charter revenues were $58.2 million for the third quarter of 2009, compared to $87.4 million for the same period of 2008, due to a decrease in prevailing time charter rates and increased off-hire and drydock days.

Net income for the nine months ended September 30, 2009 amounted to $93.9 million, compared to net income of $167.5 million for the same period of 2008. Voyage and time charter revenues were $180.7 million for the nine months ended September 30, 2009, compared to $253.1 million for the same period of 2008.

Chairman and Chief Executive Officer’s Comments

“Diana Shipping Inc. has again produced strong results during the third quarter of 2009. We have delivered a profitable quarter despite the continued turbulent economic climate. The Company’s cash position has been strengthened substantially by our recent results, and our debt level remains one of the lowest among publicly trading shipping companies. We have further enhanced our earning potential by recently adding a 20th vessel to our fleet with an attractive charter, and are expecting delivery of an additional Capesize vessel with a profitable charter in February 2010,” said Simeon Palios, Chairman and Chief Executive Officer of Diana Shipping Inc.

Mr. Palios further stated, “We believe Diana Shipping remains well-positioned to manage through the current difficult period and to build value for the future. Our intention is to continue pursuing our strategy to take advantage of the growth opportunities presented during this low phase of the shipping cycle. Diana Shipping intends to purchase attractively priced vessels in a gradual and disciplined manner over the next two years, using our robust balance sheet and cash position, together with new debt as appropriate, to generate value for our shareholders.”

About the Company
Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Diana Shipping Inc. press release