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ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company currently trading near its 52-week low with a market capitalization of $220 million, has inked a time charter contract with Tokyo-based Nippon Yusen Kabushiki Kaisha (OTC:NPNYY) for its Kamsarmax dry bulk vessel, the m/v Myrto. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics. The agreement, set to commence on Monday, guarantees a daily gross charter rate of $12,000, with a 5% commission to third parties, spanning from March 1, 2026, to May 15, 2026.
The m/v Myrto, a 2013-built vessel with a deadweight of 82,131 tons, is expected to contribute approximately $5.11 million in gross revenue for the minimum duration of the charter. Diana Shipping's fleet currently comprises 38 dry bulk vessels, with an aggregate carrying capacity of roughly 4.2 million dwt and an average age of 11.22 years. The company maintains impressive gross profit margins of 57.5%, though revenue has declined by 16.8% over the last twelve months.
The company also anticipates the addition of two methanol dual fuel new-building Kamsarmax dry bulk vessels by the second half of 2027 and the first half of 2028, respectively. These future acquisitions are part of Diana Shipping's strategy to modernize its fleet and expand its market presence.
Diana Shipping's business model involves the ownership and bareboat charter-in of dry bulk vessels, which are primarily employed on short to medium-term charters. The company transports a variety of dry bulk commodities, such as iron ore, coal, and grain, across global shipping routes.
The information provided in this article is based on a press release statement from Diana Shipping Inc. It's important to note that forward-looking statements in the press release are not guarantees of future performance and are subject to various risks and uncertainties, including market conditions and global economic factors. For deeper insights into Diana Shipping's financial health, valuation metrics, and 13 additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Diana Shipping Inc. has secured several new time charter contracts, including deals with Mitsui O.S.K. Lines, Ltd. (TYO:9104), Paralos Shipping Pte. Ltd., and Bunge (NYSE:BG) SA. These contracts, concerning the Capesize dry bulk vessel m/v Santa Barbara, the Kamsarmax dry bulk vessel m/v Maia, and the Ultramax dry bulk vessel m/v DSI Aquarius respectively, are expected to generate significant revenue for the company.
In financial developments, the company reported a decrease in time charter revenues and net income in the third quarter of 2024, with revenues falling to $57.5 million and net income halved to $3.7 million. Despite this, Diana Shipping improved its cash position and reduced long-term debt, showcasing a robust balance sheet.
Analysts from InvestingPro have noted the company's strong cash flow metrics and attractive valuation multiples, despite a 16.8% revenue decline over the last twelve months. The company has also secured vessel employment for the remainder of 2024 and for 2025, and issued €150 million in senior unsecured bonds due in 2029.
In line with its commitment to sustainability, Diana Shipping is anticipating the delivery of two methanol dual fuel new-building Kamsarmax dry bulk vessels in the second half of 2027 and the first half of 2028, respectively. These are recent developments in Diana Shipping's business operations.
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