ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in the ownership of dry bulk vessels, today announced a new time charter contract for its Kamsarmax vessel, the m/v Myrsini, with Cobelfret S.A. of Luxembourg. The agreement, starting on June 25, 2024, secures a daily gross charter rate of $17,100, a step up from the current rate of $15,000 per day under its charter to Salanc Pte. Ltd.
The contract, which will run until at least February 1, 2025, and could extend to March 25, 2025, is expected to generate approximately $3.71 million in gross revenue for the minimum scheduled period. This development comes as Diana Shipping prepares for the delivery of two new methanol dual-fuel Kamsarmax dry bulk vessels slated for the second half of 2027 and the first half of 2028, respectively.
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 and a weighted average age of 10.86 years. The company's fleet includes a mix of Newcastlemax, Capesize, Post-Panamax, Kamsarmax, Panamax, and Ultramax vessels.
Diana Shipping Inc. provides transportation services through a range of dry bulk cargoes, such as iron ore, coal, and grain, across global shipping routes. The company primarily employs its vessels on short to medium-term time charters.
The announcement made today is based on a press release statement.
In other recent news, Diana Shipping Inc. has secured a new charter contract for its Post-Panamax vessel, the m/v Polymnia, at a daily rate of $17,500, marking an increase from the current rate of $15,000.
The company also secured a time charter contract for its dry bulk vessel, the m/v Electra, with Aquavita International S.A., guaranteeing a daily gross charter rate of $14,000. Both contracts are expected to generate significant revenue, with the Polymnia and Electra contracts estimated to bring in approximately $7.25 million and $6.89 million, respectively.
In terms of financial performance, 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. A cash dividend of $0.075 per share was declared, indicating a strong financial position with a cash balance of $162 million and controlled long-term debt of $628 million.
These are among the recent developments that highlight Diana Shipping's strategic moves in the shipping industry.
InvestingPro Insights
Diana Shipping Inc. (NYSE:DSX) has demonstrated resilience in a challenging market, as evidenced by its ability to secure higher charter rates for its vessel, the m/v Myrsini. The company's strategic moves are backed by strong fundamentals, which can be further explored through InvestingPro's detailed analysis.
An InvestingPro Tip that stands out for Diana Shipping is its impressive gross profit margins, which have been reported at 59.83% for the last twelve months as of Q1 2024. This is a significant indicator of the company's ability to manage its cost of sales effectively, contributing to overall profitability. Additionally, the company pays a substantial dividend to shareholders, with a dividend yield reported at 10.38%, reflecting a commitment to returning value to investors.
From the InvestingPro Data, Diana Shipping has a market capitalization of $327.06M and a price-to-earnings (P/E) ratio of 12.81, which adjusts to 19.7 for the last twelve months as of Q1 2024. This suggests that the company is trading at a reasonable valuation relative to its earnings. Furthermore, despite a revenue decline of 16.71% for the last twelve months as of Q1 2024, analysts predict the company will remain profitable this year.
Investors looking to delve deeper into Diana Shipping's financial health and future prospects can find additional InvestingPro Tips, with a total of 8 tips available including the ones mentioned, at https://www.investing.com/pro/DSX. For those looking to enhance their investment research, using the coupon code PRONEWS24 can provide an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering valuable insights to make informed decisions in the dynamic shipping industry.
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