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ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping firm focusing on dry bulk vessels, announced a time charter contract with Cargill International S.A. for its Ice Class Panamax dry bulk vessel, the m/v Atalandi. The charter rate is set at $14,600 per day before a 4.75% third-party commission, with the charter period ranging from June 1, 2025, to July 31, 2025. The agreement is scheduled to begin on July 19, 2024.
The Atalandi, a 77,529 dwt Ice Class Panamax dry bulk vessel built in 2014, is expected to generate approximately $4.57 million in gross revenue for the minimum scheduled charter period. This news comes as Diana Shipping's fleet will number 38 dry bulk vessels post-sale of the m/v Houston, including various classes such as Newcastlemax, Capesize, and Ultramax. Additionally, the company is anticipating the delivery of two methanol dual fuel Kamsarmax dry bulk vessels by the second half of 2027 and the first half of 2028, respectively.
The current combined carrying capacity of Diana Shipping's fleet, including m/v Houston but excluding the two vessels yet to be delivered, stands at approximately 4.4 million dwt with an average fleet age of 10.94 years.
Diana Shipping Inc. is a global provider of shipping transportation services, primarily engaging its fleet on short to medium-term charters to transport a variety of dry bulk commodities like iron ore, coal, and grain across global shipping routes.
The company's announcement should be considered in light of the various market conditions and uncertainties affecting the shipping industry, including economic trends, market charter rates, operating expenses, regulatory changes, and geopolitical risks. This information is based on a press release statement, and it does not constitute part of the press release.
In other recent news, Diana Shipping Inc. has been making strategic moves in the shipping industry. The company has extended a time charter contract with Tokyo-based Nippon Yusen Kabushiki Kaisha for the Newcastlemax dry bulk vessel, m/v Los Angeles, expected to generate approximately $12.43 million in gross revenue. Additionally, Diana Shipping has entered into new time charter contracts for its vessels m/v Myrsini, m/v Polymnia, and m/v Electra with Cobelfret S.A., Reachy Shipping (SGP) Pte. Ltd., and Aquavita International S.A., respectively. These contracts are expected to generate significant revenue.
The company has also announced plans for fleet expansion, with the expected delivery of two methanol dual-fuel new-building Kamsarmax dry bulk vessels in the second half of 2027 and the first half of 2028. Following the sale of the m/v Houston, Diana Shipping's fleet will comprise 38 dry bulk vessels with a combined carrying capacity of around 4.4 million dwt.
In financial terms, Diana Shipping reported a robust start to 2024, with a net income of $2.1 million and EBITDA of $27.8 million on revenues of approximately $58 million. The company also declared a cash dividend of $0.075 per share, indicating a strong financial position with a cash balance of $162 million and controlled long-term debt of $628 million. These are recent developments at Diana Shipping Inc.
InvestingPro Insights
As Diana Shipping Inc. (NYSE:DSX) secures a new charter contract for its Ice Class Panamax dry bulk vessel, the m/v Atalandi, with Cargill International S.A., financial metrics and market data provided by InvestingPro offer insights into the company's performance and stock valuation. With a market capitalization of approximately $328.19 million and a price-to-earnings (P/E) ratio of 12.85, Diana Shipping presents itself as a potentially attractive investment opportunity in the shipping sector.
InvestingPro Tips indicate that Diana Shipping boasts an impressive gross profit margin of 59.83% for the last twelve months as of Q1 2024, suggesting efficient operations and cost management. Additionally, the company is recognized for its high shareholder yield and is known to pay a significant dividend to shareholders, with a current yield of 10.45% as of mid-2024. This commitment to returning value to shareholders is noteworthy in today's investment landscape.
Moreover, Diana Shipping has been profitable over the last twelve months, and analysts predict the company will remain profitable this year. The stock is also trading near its 52-week low, which may represent a potential entry point for investors seeking exposure to the shipping industry. It's worth noting that the company's stock generally trades with low price volatility, providing a degree of stability in an otherwise fluctuating market.
For those interested in further analysis and additional InvestingPro Tips, which include six more insights into Diana Shipping Inc., visit InvestingPro. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription and gain comprehensive access to real-time data and investment strategies.
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