ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in dry bulk vessels, has entered into a time charter contract with Bunge (NYSE:BG) SA, Geneva, for one of its Ultramax dry bulk vessels, the m/v DSI Aquarius. The contract, commencing on December 6, 2024, is for a period of ten to twelve months, with a daily gross charter rate of $13,300, minus a 5% commission paid to third parties. The company, currently valued at $212 million, maintains impressive gross profit margins of 57.5%, though its stock trades near its 52-week low of $1.73. According to InvestingPro analysis, which offers comprehensive insights through its Pro Research Reports covering 1,400+ US stocks, Diana Shipping currently appears undervalued based on its Fair Value assessment.
The DSI Aquarius, a 60,309 dwt vessel built in 2016, is expected to generate approximately $3.99 million in gross revenue for the minimum scheduled period of the charter. This addition to Diana Shipping's time charter portfolio is part of its broader fleet operations, which currently comprise 38 dry bulk vessels, including various classes such as Newcastlemax, Capesize, Post-Panamax, Kamsarmax, Panamax, and Ultramax. While the company faces revenue headwinds with a 16.8% decline over the last twelve months, InvestingPro identifies several promising factors, including strong cash flow metrics and attractive valuation multiples. Subscribers can access 14 additional ProTips and detailed financial analysis for DSX.
The company's fleet, excluding two methanol dual fuel new-building Kamsarmax dry bulk vessels scheduled for delivery in the second half of 2027 and the first half of 2028, boasts a combined carrying capacity of approximately 4.2 million dwt with a weighted average age of 11.17 years.
Diana Shipping Inc. operates its vessels primarily on short to medium-term time charters, transporting a range of commodities like iron ore, coal, grain, and other materials along global shipping routes.
The information provided is based on a press release statement, which includes forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions subject to significant uncertainties. Factors that could cause actual results to differ materially include market conditions, changes in demand for dry bulk shipping capacity, operating expenses, market for the company's vessels, financing availability, regulatory changes, litigation, political conditions, and other risks detailed in the company's filings with the U.S. Securities and Exchange Commission. Diana Shipping has stated its intention to take advantage of the safe harbor provisions to encourage the provision of prospective business information.
In other recent news, Diana Shipping Inc. has 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. Despite these challenges, Diana Shipping improved its cash position and reduced long-term debt, indicating a strong balance sheet. The company has also secured vessel employment for the remainder of 2024 and for 2025, showcasing its proactive approach in a challenging dry bulk market. In further developments, Diana Shipping issued €150 million in senior unsecured bonds due in 2029 and secured new term loan facilities with Nordea Bank and Danish Ship Finance. The company is also anticipating future growth with the expected delivery of eco-friendly vessels, a move that aligns with its commitment to sustainability.
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