Diana Shipping invests in LPG venture, expands fleet

ATHENS - Diana Shipping Inc. (NYSE:DSX), a global shipping company currently valued at $191.65 million and trading near its 52-week low, has announced its strategic partnership with the newly established joint venture, Ecogas Holding AS. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, suggesting potential opportunity in this latest strategic move. The company has taken an 80% equity interest in the venture, which includes an agreement for the construction of two new 7,500 cubic meter semi-refrigerated LPG vessels, with options for two additional ships. The first of these vessels is scheduled for delivery in early 2027, followed by the second in late 2027.

This move marks a significant expansion for Diana Shipping, which currently operates a fleet of 37 dry bulk vessels, including various classes such as Newcastlemax, Capesize, and Ultramax. The company maintains impressive gross profit margins of nearly 58%, demonstrating strong operational efficiency in its existing fleet management. Additionally, the company is set to enhance its fleet with the introduction of two methanol dual fuel Kamsarmax dry bulk vessels, expected to be delivered in the latter half of 2027 and the first half of 2028, respectively.

As of today, the combined carrying capacity of Diana Shipping’s fleet, excluding the two vessels yet to be delivered, stands at approximately 4.1 million deadweight tonnage (dwt), with an average fleet age of 11.39 years.

Diana Shipping’s vessels are primarily engaged on short to medium-term time charters, transporting a wide range of dry bulk commodities such as iron ore, coal, and grain across global shipping routes.

The announcement of this strategic partnership and fleet expansion is based on a press release statement from Diana Shipping Inc. The company has not provided additional details regarding the financial terms of the investment or the expected impact on its operations.

Investors in the shipping industry often monitor such developments closely, as fleet expansions and strategic partnerships can influence a company’s capacity, market reach, and competitive standing. Diana Shipping’s current market position and future prospects are not discussed in this announcement.

The company has issued a cautionary note regarding forward-looking statements, reminding that actual results may differ from expectations due to various factors, including market conditions and global economic trends. Diana Shipping has made no further comment on the potential outcomes of its new partnership and fleet expansion. For deeper insights into DSX’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which offer expert analysis on over 1,400 US stocks.

In other recent news, Diana Shipping Inc. reported its fourth-quarter 2024 earnings, with earnings per share (EPS) of $0.02, meeting analyst expectations. The company’s revenue reached $57.1 million, slightly surpassing the forecast of $54.7 million. Diana Shipping also secured new time charter contracts, including an agreement with Cargill Ocean Transportation for its Ultramax vessel, m/v DSI Andromeda, expected to generate approximately $3.18 million in gross revenue. Another charter was signed with Cargill International SA for the Kamsarmax vessel, m/v Medusa, projected to bring in $5.46 million in gross revenue. These developments reflect Diana Shipping’s strategic focus on securing medium to long-term charters to ensure revenue visibility. The company is also preparing to modernize its fleet with the anticipated addition of two methanol dual-fuel Kamsarmax vessels by late 2027 and early 2028. Diana Shipping’s fleet utilization remained high at 99.7% for 2024, demonstrating effective vessel management. The company ended the year with a cash position of $207.2 million, up from $161.6 million in 2023.

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