ATHENS - Diana Shipping Inc . (NYSE: NYSE:DSX), a global shipping company specializing in dry bulk vessels, has entered into a time charter contract with Stone Shipping Ltd for one of its Ultramax dry bulk vessels, the m/v DSI Polaris (NYSE:PII). The charter rate is set at $15,400 per day, with a 5% commission deducted for third parties, and is slated to run from at least June 1, 2025, to a maximum of August 15, 2025. This agreement began on Monday, July 20, 2024.
The m/v DSI Polaris, a 60,404 dwt Ultramax dry bulk vessel built in 2018, was previously chartered to ASL Bulk Marine Limited at a rate of $13,100 per day, also subject to a 5% third-party commission. The new charter rate represents an increase from the previous agreement.
Diana Shipping anticipates that the time charter will generate approximately $4.76 million in gross revenue for the minimum scheduled period. Following the sale of the 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 vessels. Additionally, the company expects to take delivery of two new-building Kamsarmax dry bulk vessels that will be methanol dual fuel, scheduled for the second half of 2027 and the first half of 2028, respectively.
Currently, the company's fleet, including the m/v Houston and excluding the two undelivered vessels, has a combined carrying capacity of approximately 4.4 million dwt with a weighted average age of 10.97 years.
Diana Shipping Inc. provides transportation services for dry bulk cargoes such as iron ore, coal, grain, and other materials along worldwide shipping routes. The company's vessels are primarily employed on short to medium-term time charters.
Diana Shipping Inc. has been actively securing and extending charter contracts while planning for fleet expansion. The company has entered into a time charter contract with Cargill International S.A. for its Ice Class Panamax dry bulk vessel, the m/v Atalandi, at a daily rate of $14,600.
New charter contracts have also been secured for the 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 for the company.
In terms of fleet expansion, Diana Shipping is anticipating the delivery of two methanol dual fuel Kamsarmax dry bulk vessels in the second half of 2027 and the first half of 2028.
On the financial front, the company reported a net income of $2.1 million and EBITDA of $27.8 million on revenues of approximately $58 million in 2024. 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.
InvestingPro Insights
In light of Diana Shipping Inc.'s (NYSE: DSX) recent time charter contract, key financial metrics and analyst insights from InvestingPro provide a deeper understanding of the company's current market position. Diana Shipping, with a market capitalization of $311.21 million, showcases a Price to Earnings (P/E) ratio of 12.2, reflecting investor sentiment on its earnings capacity. Notably, the company's adjusted P/E ratio for the last twelve months as of Q1 2024 stands at 18.74, indicating a premium compared to its current P/E ratio.
InvestingPro Tips highlight Diana Shipping's impressive gross profit margins, which have reached 59.83% in the last twelve months as of Q1 2024. This is a strong indicator of the company's efficiency in managing cost of sales relative to its revenue. Additionally, despite analysts anticipating a sales decline in the current year, Diana Shipping maintains a significant dividend yield of 10.91%, which is attractive to income-focused investors.
Moreover, Diana Shipping has been profitable over the last twelve months, and analysts predict the company will remain profitable this year. The company's strategy to expand its fleet and secure new charter contracts, as seen with the m/v DSI Polaris, may contribute to its overall financial health.
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