ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in dry bulk vessels, announced today that it has signed a time charter contract with Mitsui O.S.K. Lines, Ltd. (TYO:9104) for one of its Capesize dry bulk vessels, the m/v Santa Barbara. The charter rate is set at $22,000 per day, less a 5% commission to third parties, for a period ranging from October 20, 2025, to December 20, 2025. The charter will commence on December 28, 2024. According to InvestingPro analysis, Diana Shipping currently trades near its 52-week low of $1.73, with data suggesting the stock may be undervalued at current levels.
This new contract represents an increase from the vessel's previous charter rate of $21,250 per day with Smart Gain Shipping Co., Limited. The m/v Santa Barbara is a 179,426 dwt Capesize vessel constructed in 2015. Over the minimum duration of the new charter, the vessel is expected to generate approximately $6.42 million in gross revenue.
Diana Shipping's current fleet comprises 38 dry bulk carriers, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax vessels. Additionally, the company is awaiting the delivery of two methanol dual fuel new-building Kamsarmax dry bulk vessels projected for 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 stands at roughly 4.2 million dwt, with an average age of 11.22 years. The company maintains impressive gross profit margins of 57.5% and trades at an attractive price-to-book ratio of 0.44, as reported by InvestingPro, which has identified 13 additional key investment factors for this stock.
Diana Shipping Inc. provides transportation services globally through its ownership and bareboat charter-in of dry bulk vessels. These vessels primarily engage in short to medium-term time charters, carrying a variety of dry bulk commodities such as iron ore, coal, grain, and other materials across international shipping routes. For a comprehensive analysis of Diana Shipping's financial health, valuation metrics, and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US-listed companies.
The information for this article is based on a press release statement from Diana Shipping Inc. The company has cautioned that some statements in the press release are forward-looking and subject to various assumptions and uncertainties. Diana Shipping Inc. has included a cautionary statement in the press release to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
In other recent news, Diana Shipping Inc. has secured new time charter contracts with Paralos Shipping Pte. Ltd. and Bunge (NYSE:BG) SA for its Kamsarmax and Ultramax dry bulk vessels, respectively. These contracts are expected to generate significant revenue, with the Kamsarmax vessel, the m/v Maia, anticipated to generate approximately $3.75 million and the Ultramax vessel, the m/v DSI Aquarius, expected to bring in around $3.99 million. In addition to these developments, Diana Shipping has 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.
However, the company reported a decrease in time charter revenues and net income in the third quarter of 2024, with revenues falling to $57.5 million and net income halved to $3.7 million. Despite this, the company has improved its cash position and reduced long-term debt, indicating a robust balance sheet.
Diana Shipping has also secured vessel employment for the remainder of 2024 and for 2025 and issued €150 million in senior unsecured bonds due in 2029. Furthermore, the company has secured new term loan facilities with Nordea Bank and Danish Ship Finance, and is anticipating the delivery of eco-friendly vessels. These are recent developments in Diana Shipping's business operations.
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