ATHENS - Diana Shipping Inc . (NYSE: NYSE:DSX), a global shipping company specializing in dry bulk vessels, has announced the extension of a time charter contract with Tokyo-based Nippon Yusen Kabushiki Kaisha.
The contract pertains to the Newcastlemax dry bulk vessel, the m/v Los Angeles, and is set to commence on July 18, 2024, with a daily gross charter rate of US$28,700, minus a 5% commission paid to third parties.
The charter extension will last until at least October 1, 2025, and could extend up to December 15, 2025. This agreement follows the current charter of the m/v Los Angeles at a daily rate of US$17,700, also subject to a 5% third-party commission. Built in 2012, the Los Angeles is a 206,104 dwt Newcastlemax dry bulk vessel.
The extended employment of the m/v Los Angeles is expected to generate approximately US$12.43 million in gross revenue for the minimum scheduled period of the charter.
Following the sale of another vessel, m/v Houston, Diana Shipping's fleet will consist of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax ships.
Additionally, the company anticipates the delivery of two methanol dual fuel new-building Kamsarmax dry bulk vessels by the second half of 2027 and the first half of 2028, respectively.
Currently, including the m/v Houston and excluding the two undelivered vessels, Diana Shipping’s fleet has a combined carrying capacity of approximately 4.4 million dwt with a weighted average age of 10.92 years.
Diana Shipping Inc. operates primarily on short to medium-term time charters, transporting a variety of dry bulk cargoes such as iron ore, coal, grain, and other materials across global shipping routes. The information in this article is based on a press release statement from Diana Shipping Inc.
In other recent news, Diana Shipping Inc. has been making strategic moves in the shipping industry. The company 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, with gross revenues of approximately $3.71 million, $7.25 million, and $6.89 million, respectively.
Furthermore, Diana Shipping has 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. The company's fleet, following the sale of the m/v Houston, 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 the recent developments at Diana Shipping Inc.
InvestingPro Insights
As Diana Shipping Inc. (NYSE: DSX) secures its charter extension with Nippon Yusen Kabushiki Kaisha, investors and industry observers are keeping a close eye on the company's financial health and market performance. Here are some key insights based on the latest data and expert analysis from InvestingPro:
InvestingPro Data metrics reveal that Diana Shipping has a market capitalization of $331.59 million and a Price to Earnings (P/E) ratio of 13.03, which is below the adjusted P/E ratio for the last twelve months as of Q1 2024, standing at 19.97. This indicates a reasonable valuation compared to earnings. Additionally, the company’s impressive gross profit margin of 59.83% demonstrates its ability to maintain profitability in the competitive shipping industry.
An intriguing InvestingPro Tip to note is that Diana Shipping has a high shareholder yield, which is a positive sign for investors looking for returns through dividends and stock repurchases. Moreover, the company is trading near its 52-week low, suggesting potential for investors to consider entry points for long-term holdings, especially considering that analysts predict the company will be profitable this year.
For those interested in further analysis and tips, there are an additional 6 InvestingPro Tips available for Diana Shipping at https://www.investing.com/pro/DSX. These tips provide deeper insights into the company’s performance and outlook, which could be invaluable for making informed investment decisions.
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