ATHENS, Greece - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in dry bulk vessels, announced a notable decrease in net income for the first quarter of 2024, alongside a dividend declaration. The net income for the quarter was $2.1 million, with $0.6 million attributed to common stockholders, which is a sharp decline from the $22.7 million net income and $21.3 million attributed to common stockholders in the first quarter of 2023.
Earnings per share for the first quarter stood at $0.01, both basic and diluted, a decrease from the previous year's $0.22. Time charter revenues also fell to $57.6 million compared to $72.6 million for the same period in 2023. This downturn was attributed to lower average charter rates and ownership days.
Despite the drop in earnings, the company has declared a cash dividend of $0.075 per share, payable on or about June 18, 2024, to shareholders of record as of June 12, 2024. The dividend is based on the company's performance in the quarter ending March 31, 2024. Diana Shipping's fleet employment details as of May 27, 2024, were also disclosed, providing insights into the charter rates and durations for its vessels.
The company's fleet data showed a slight decrease in the average number of vessels from 41.5 to 39.7 and a modest increase in the weighted average age of vessels from 10.0 to 10.7 years. Ownership days decreased from 3,737 to 3,613, while fleet utilization remained high at 99.1%.
Diana Shipping's financial position as of March 31, 2024, included cash, cash equivalents, restricted cash, and time deposits totaling approximately $162 million. The company's assets were reported at $1.16 billion, with liabilities and stockholders' equity also provided in the financial tables.
The press release statement, which serves as the basis for this report, also included a cautionary note on forward-looking statements, reminding readers of the inherent uncertainties and contingencies in such predictions. Diana Shipping Inc. is a global provider of shipping transportation services, primarily on short to medium-term time charters, and transports a wide range of dry bulk cargoes along international shipping routes.
InvestingPro Insights
Diana Shipping Inc. (NYSE:DSX) has recently faced a downturn in its financial performance, as evidenced by the first quarter results of 2024. Despite these challenges, there are several positive aspects of the company's financial health and market performance that investors may find encouraging.
According to InvestingPro data, Diana Shipping boasts a robust gross profit margin of 62.19% for the last twelve months as of Q4 2023, which indicates the company's ability to efficiently manage its direct costs associated with its shipping operations.
In addition, the company's market capitalization stands at $356.48 million, and it trades at an attractive earnings multiple, with a P/E ratio of 7.14 and an adjusted P/E ratio of 10.11 for the same period. This suggests that Diana Shipping's stock may be undervalued relative to its earnings, which could present an opportunity for investors seeking value stocks in the shipping industry.
One of the InvestingPro Tips highlights that Diana Shipping pays a significant dividend to shareholders, with a current dividend yield of 9.52%. This is an important consideration for income-focused investors, especially considering the broader market context where stable dividends are increasingly valued.
Investors looking to delve deeper into Diana Shipping's financials and gain more insights can find additional InvestingPro Tips on the company, including its low price volatility and liquidity position. There are 7 additional tips available on InvestingPro, which can be accessed by visiting https://www.investing.com/pro/DSX. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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