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ATHENS - Diana Shipping Inc. (NYSE:DSX), a global shipping company specializing in the ownership of dry bulk vessels, has announced a new time charter contract with Cargill International SA. The agreement pertains to the Kamsarmax dry bulk vessel, the m/v Medusa, which is set to commence its charter on Sunday. The company, currently valued at $188 million in market capitalization, maintains impressive gross profit margins of nearly 58%.
Under the terms of the contract, the Medusa will be chartered at a gross rate of $13,000 per day, with a 4.75% commission deducted for third parties. The charter period is slated to last from no earlier than May 15, 2026, to no later than July 15, 2026. This engagement is expected to generate roughly $5.46 million in gross revenue for the minimum scheduled period. According to InvestingPro analysis, Diana Shipping appears undervalued at current levels, trading at just 0.37 times book value. Subscribers can access 6 additional ProTips and comprehensive financial metrics for deeper analysis.
The announcement comes as Diana Shipping Inc. prepares to reduce its fleet to 37 dry bulk vessels following the sale of the m/v Alcmene. The current fleet includes a variety of vessel classes, and the company 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. The company’s stock has experienced a significant decline of approximately 26% over the past six months, currently trading near its 52-week low of $1.72.
As of today, the combined carrying capacity of Diana Shipping Inc.’s fleet, excluding the two vessels not yet delivered, is approximately 4.2 million dwt with a weighted average age of 11.45 years.
Diana Shipping Inc. provides transportation services through its fleet, primarily on short to medium-term time charters, and transports a range of dry bulk cargoes including iron ore, coal, grain, and other materials along worldwide shipping routes.
The information reported is based on a press release statement and does not include forward-looking statements or projections. Diana Shipping Inc. has not provided any commentary on the significance of this new contract or its potential impact on the company’s future performance.
In other recent news, Diana Shipping reported its fourth-quarter earnings for 2024, with earnings per share (EPS) of $0.02, meeting analyst expectations. The company’s revenue slightly exceeded forecasts, reaching $57.1 million against the projected $54.7 million. Despite a 5% year-over-year revenue decline, Diana Shipping’s net income increased to $9.7 million from $9.4 million in the previous year. The company maintained a strong cash position of $207.2 million and reduced its long-term debt by 1% to $637.5 million. Diana Shipping has secured substantial time charters, ensuring revenue visibility for the coming years, and projects stable earnings for 2025. Additionally, the company is focusing on fleet modernization, with plans to introduce two methanol dual-fuel vessels by late 2027 or early 2028. Diana Shipping recently completed a refinancing move, releasing two vessels and raising capital through a bond issue and warrant program. The company also declared a quarterly cash dividend of $0.01 per common share, totaling approximately $1.1 million.
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