ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in dry bulk vessels, has entered into a time charter contract for its Ultramax dry bulk vessel, the m/v DSI Pyxis, with Stone Shipping Ltd. The contract, commencing today, secures a daily gross charter rate of $13,100, less a 5% commission to third parties, and is set to last until at least February 20, 2026, with the possibility of extending to April 20, 2026.
The DSI Pyxis is a 60,362 dwt Ultramax dry bulk vessel constructed in 2018. Under the agreed terms, the time charter is expected to generate approximately $6.05 million in gross revenue for the minimum scheduled period. 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. Additionally, the company anticipates the delivery of two methanol dual fuel new-building Kamsarmax dry bulk vessels in the latter half of 2027 and the first half of 2028.
As of today, the combined carrying capacity of Diana Shipping's fleet, excluding the two forthcoming vessels, stands at around 4.2 million dwt, with an average fleet age of 11.11 years. Diana Shipping provides transportation services for dry bulk cargoes such as iron ore, coal, grain, and other materials on global shipping routes.
The company's business projections, as outlined in this press release, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on various assumptions and reflect the company's current expectations. However, they are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially.
This news article is based on a press release statement from Diana Shipping Inc. and does not constitute an endorsement of the company or its services.
In other recent news, Diana Shipping Inc. has successfully completed a $25 million bond issue, expanding its senior unsecured bond due in 2029 to a total of $175 million. The company also secured an $80.2 million loan facility with Danish Ship Finance A/S, aimed at refinancing an existing loan. Diana Shipping has entered into new charter contracts with Propel Shipping Pte. Ltd., Cargill Ocean Transportation, Nippon Yusen Kabushiki Kaisha (OTC:NPNYY), and Paralos Shipping Pte. Ltd., which are expected to generate substantial revenue.
Despite a 7% decrease in average time charter rates for Capesize vessels, Panamax and Supramax rates saw an increase of 6% and 16% respectively. The company also declared a quarterly cash dividend of $7.05 per share and reached a fleet utilization of 99.5%. Diana Shipping has extended a charter contract with Aquavita International S.A. and 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 reflect Diana Shipping's strategic approach to navigate the dynamic shipping industry, showcasing its commitment to financial health and shareholder value. All these updates are based on recent reports and press releases from Diana Shipping Inc., and provide investors with an insight into the company's latest financial maneuvers and business operations.
InvestingPro Insights
Diana Shipping's recent time charter contract for its Ultramax vessel DSI Pyxis aligns with the company's strategy to secure stable revenue streams. According to InvestingPro data, Diana Shipping's revenue for the last twelve months as of Q2 2024 was $235.72 million, with a gross profit margin of 58.63%. This impressive margin is highlighted as one of the InvestingPro Tips, suggesting the company's efficiency in managing its fleet operations.
The new contract's potential to generate $6.05 million in gross revenue is significant, especially considering the company's market capitalization of $272.49 million. Investors should note that Diana Shipping is trading at a low Price / Book multiple of 0.55, which is another InvestingPro Tip indicating potential undervaluation.
Despite the positive contract news, it's worth mentioning that Diana Shipping's revenue growth has been negative, with a -18.59% decline in the last twelve months. This context makes the new charter agreement even more crucial for the company's financial stability.
Notably, Diana Shipping offers a substantial dividend yield of 13.1%, which aligns with the InvestingPro Tip highlighting the company's significant dividend payments to shareholders. This high yield could be attractive to income-focused investors, particularly in the current market environment.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 6 more InvestingPro Tips available for Diana Shipping, providing a deeper understanding of the company's financial health and market position.
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