ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in dry bulk vessels, has extended a time charter contract with Aquavita International S.A. for the m/v Phaidra, a Post-Panamax dry bulk vessel. The contract, at a gross charter rate of $12,000 per day minus a 4.75% third-party commission, is set to last from May 1, 2025, to July 15, 2025, with the new charter period beginning on October 11, 2024.
The m/v Phaidra, built in 2013, has a deadweight of 87,146 tons. This extension is expected to generate approximately $2.4 million in gross revenue for the minimum scheduled period. Diana Shipping's fleet currently includes 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, respectively.
As of today, excluding the two vessels yet to be delivered, the fleet's combined carrying capacity is about 4.2 million dwt with a weighted average age of 11.01 years. The company's vessels primarily engage in short to medium-term charters, transporting a variety of dry bulk commodities along global shipping routes.
Diana Shipping Inc. aims to provide updated information regarding its business operations, adhering to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as part of its forward-looking statements' cautionary approach. These statements are based on assumptions subject to significant uncertainties that are inherently difficult to predict.
The company's performance and future results may be affected by various factors, including economic strength, market conditions, changes in demand for shipping capacity, operating expenses, market for the company's vessels, availability of financing, regulatory actions, potential litigation, political conditions, and other risks including the ongoing conflict between Russia and Ukraine.
This news is based on a press release statement and does not include speculative content or broader industry impacts. The factual information provided is intended for a general audience and aims to convey the latest developments in Diana Shipping Inc.'s business operations.
In other recent news, Diana Shipping Inc. reported a resilient performance in the second quarter of 2024, with mixed charter rates. Despite a 7% decrease in average time charter rates for Capesize vessels, Panamax and Supramax rates saw an increase of 6% and 16% respectively. In addition, the company's fleet utilization reached an impressive 99.5% and declared a quarterly cash dividend of $7.05 per share.
The company has secured several new charters, including contracts with Propel Shipping Pte. Ltd., Cargill Ocean Transportation, Nippon Yusen Kabushiki Kaisha, and Paralos Shipping Pte. Ltd. These contracts, which include a significant increase in charter rates, are expected to generate millions in gross revenue.
Diana Shipping also anticipates 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 are part of the company's strategic approach to navigate the dynamic shipping industry, reflecting a strong focus on financial health and shareholder value.
InvestingPro Insights
Diana Shipping Inc. (NYSE:DSX) presents an interesting financial profile that complements the recent charter contract extension news. According to InvestingPro data, the company boasts a market capitalization of $302.24 million USD, reflecting its significant presence in the dry bulk shipping sector.
One of the most striking aspects of Diana Shipping's financial picture is its impressive dividend yield of 11.81%, as of the latest data. This aligns with an InvestingPro Tip highlighting that the company "pays a significant dividend to shareholders." This high yield could be particularly attractive to income-focused investors, especially in the context of the company's ability to secure charter contracts like the one mentioned for the m/v Phaidra.
However, it's worth noting that InvestingPro Tips also indicate that analysts anticipate a sales decline in the current year, with net income expected to drop as well. This forecast should be considered alongside the company's recent charter extension, which is projected to generate approximately $2.4 million in gross revenue.
On a positive note, Diana Shipping maintains strong profitability metrics. The company's gross profit margin stands at an impressive 58.63% for the last twelve months as of Q2 2024, supporting another InvestingPro Tip that points to "impressive gross profit margins." This robust profitability could provide a buffer against potential industry headwinds and support the company's dividend payments.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 7 more InvestingPro Tips available for Diana Shipping, providing a deeper dive into the company's financial health and market position.
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