ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company with a market capitalization of $227 million, has entered into a time charter contract with Paralos Shipping Pte. Ltd. for its Kamsarmax dry bulk vessel, the m/v Maia. According to InvestingPro analysis, the company currently trades below its Fair Value, presenting a potential opportunity for value investors. The charter rate is set at $11,600 per day, less a 5% commission to third parties, with the term extending from December 9, 2024, until at least November 1, 2025, and possibly up to December 31, 2025.
The m/v Maia, a 2009-built Kamsarmax dry bulk vessel with a deadweight of 82,193 tons, is expected to commence its charter next Monday. Over the minimum duration of the contract, the vessel is anticipated to generate approximately $3.75 million in gross revenue.
Diana Shipping's current fleet comprises 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax ships. The company maintains impressive gross profit margins of 57.5% and generated $104.5 million in EBITDA over the last twelve months, demonstrating strong operational efficiency. The company has also announced plans to expand its fleet with the addition of 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. Excluding the two vessels yet to be delivered, the combined carrying capacity of Diana Shipping's fleet is approximately 4.2 million dwt, with a weighted average age of 11.18 years.
Diana Shipping specializes in the ownership and bareboat charter-in of dry bulk vessels and primarily engages its fleet on short to medium-term time charters. The company's vessels transport a variety of dry bulk cargoes, such as iron ore, coal, grain, and other materials across global shipping routes.
This announcement is based on a press release statement and provides an overview of Diana Shipping Inc.'s new charter contract and fleet status. For deeper insights into DSX's financial health (currently rated as FAIR by InvestingPro), investors can access comprehensive analysis, including 13 additional ProTips and detailed valuation metrics through the Pro Research Report, part of the extensive coverage available for over 1,400 US-listed companies.
In other recent news, Diana Shipping Inc. has secured a new time charter contract with Bunge (NYSE:BG) SA for its Ultramax dry bulk vessel, the m/v DSI Aquarius. The contract, which commences in December 2024, is expected to generate approximately $3.99 million in gross revenue. This development is part of the company's broader fleet operations, which currently comprise 38 dry bulk vessels. Despite a 16.8% revenue decline over the last twelve months, the company maintains impressive gross profit margins of 57.5% and has strong cash flow metrics, according to analysis from InvestingPro.
In recent financial developments, Diana Shipping reported a decrease in time charter revenues and net income in the third quarter of 2024. The company's time charter revenues fell to $57.5 million, down from $62.1 million in the same quarter of the previous year, while net income was halved to $3.7 million. However, the company improved its cash position and reduced long-term debt, signaling a strong balance sheet.
As part of its future strategy, Diana Shipping has secured vessel employment for the remainder of 2024 and for 2025. The company has also issued €150 million in senior unsecured bonds due in 2029 and secured new term loan facilities with Nordea Bank and Danish Ship Finance. In line with its commitment to sustainability, Diana Shipping is anticipating the delivery of eco-friendly vessels.
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