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ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in dry bulk vessels, has entered into a time charter contract with Nippon Yusen Kabushiki Kaisha, Tokyo. The agreement, concerning the Capesize dry bulk vessel m/v G. P. Zafirakis, commences on September 9, 2024, with a daily gross charter rate of $26,800, after a 5% commission to third parties. The contract spans a minimum of 23 months to a maximum of 26 months.
The m/v G. P. Zafirakis, a 179,492 dwt Capesize vessel built in 2014, was previously chartered to Solebay Shipping Cape Company Limited, Hong Kong, at a daily rate of $17,000, also net of a 5% third-party commission. The new charter rate represents a significant increase from the previous contract.
This new charter is projected to generate approximately $18.49 million in gross revenue for the minimum scheduled period. Diana Shipping's fleet, post-sale of m/v Houston, will consist of 38 dry bulk vessels, with an additional two methanol dual fuel new-building Kamsarmax dry bulk vessels expected for delivery in the second half of 2027 and the first half of 2028.
As of today, the combined carrying capacity of Diana Shipping's fleet, including m/v Houston and excluding the two vessels not yet delivered, is approximately 4.4 million dwt with a weighted average age of 11.06 years. The company's vessels are primarily engaged in short to medium-term time charters, transporting a variety of dry bulk commodities across global shipping routes.
This press release statement serves as the basis for the reported facts, without additional commentary or speculation. Diana Shipping Inc. continues to operate within the dry bulk shipping sector, adhering to market conditions and regulatory frameworks.
In other recent news, Diana Shipping Inc. reported a resilient performance in the second quarter of 2024. Despite a 7% decrease in average time charter rates for Capesize vessels, the company saw increases of 6% and 16% in Panamax and Supramax rates respectively. Furthermore, the company's fleet utilization peaked at an impressive 99.5%, and a quarterly cash dividend of $7.05 per share was declared.
Diana Shipping has also entered into a time charter contract with Paralos Shipping Pte. Ltd. for its Kamsarmax dry bulk vessel, the m/v Astarte. The contract stipulates a daily gross charter rate of $14,000, lasting until at least July 15, 2025, and could extend up to September 15, 2025.
The company is expecting 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. These recent developments reflect Diana Shipping's strategic approach to navigate the dynamic shipping industry, with a strong focus on financial health and shareholder value.
InvestingPro Insights
Diana Shipping Inc. (NYSE:DSX) has made a notable move by securing a time charter contract with Nippon Yusen Kabushiki Kaisha, which is expected to generate substantial revenue. In light of this development, it's worth considering the company's financial health and market performance as reflected by key metrics from InvestingPro. With a market capitalization of $286.11 million and a robust gross profit margin of 58.63% in the last twelve months as of Q2 2024, Diana Shipping showcases strong profitability in its operations.
Investors may also find the company's dividend policy attractive, as Diana Shipping pays a significant dividend with a yield of 12.5%. This is particularly noteworthy in the current economic context, where income-generating investments are highly valued. However, it's important to be aware of the revenue and net income outlook. Analysts predict a sales decline and a drop in net income for the current year, which could influence future dividend sustainability and overall financial performance.
Trading near its 52-week low and experiencing a price decline of over 19% in the last three months, the company's stock price reflects a period of recent market challenges. Nevertheless, InvestingPro Tips suggest that analysts remain optimistic about the company's profitability for the year. For investors interested in a deeper dive, there are additional InvestingPro Tips available, which can provide further guidance on Diana Shipping's prospects.
For those looking to make informed investment decisions, the full suite of InvestingPro Tips for Diana Shipping can be explored at InvestingPro, where a comprehensive analysis and additional expert insights are available.
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