ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in the ownership of dry bulk vessels, has entered into a time charter contract with Bohai Shipping (HEBEI) Co., Ltd. The agreement pertains to one of its Capesize dry bulk vessels, the m/v P. S. Palios. The contract, commencing on May 12, 2024, secures a daily rate of $27,150, with a 5% commission deducted for third parties.
The m/v P. S. Palios, a 179,134 dwt Capesize dry bulk vessel built in 2013, is expected to generate approximately $14.39 million in gross revenue for the company over the charter's minimum duration, which extends from its start date until at least November 1, 2025, and may last until December 31, 2025.
This new charter comes as Diana Shipping Inc. prepares to streamline its fleet following the sale of another vessel, the m/v Houston. Post-sale, the fleet will consist of 38 dry bulk vessels, including various classes such as Newcastlemax, Capesize, Post-Panamax, Kamsarmax, Panamax, and Ultramax.
Additionally, the company anticipates the delivery of two new methanol dual fuel Kamsarmax dry bulk vessels in the second half of 2027 and the first half of 2028, respectively.
As of today, Diana Shipping Inc.'s fleet, including the m/v Houston but excluding the two vessels yet to be delivered, boasts a combined carrying capacity of approximately 4.4 million dwt with a weighted average age of 10.71 years.
Diana Shipping Inc. operates primarily on short to medium-term time charters, transporting a variety of dry bulk cargoes such as iron ore, coal, grain, and other materials across global shipping routes.
This press release statement from Diana Shipping Inc. contains forward-looking statements regarding future events and performance, including the company's plans and expectations. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected.
InvestingPro Insights
Diana Shipping Inc. (NYSE:DSX) has demonstrated a strong financial footing in the face of a dynamic shipping industry, with InvestingPro data highlighting a few key metrics that underpin the company's stability and potential for investor returns. The company's market capitalization stands at a robust $328.76 million, which is indicative of its significant presence in the sector. Moreover, Diana Shipping's Price/Earnings (P/E) ratio, a popular tool for valuing a company, is currently appealing at 6.59, suggesting that the stock may be undervalued compared to industry peers. This is further supported by an adjusted P/E ratio for the last twelve months as of Q4 2023, which is 9.32, still below the industry average, making it an attractive option for value investors.
Additionally, the company's impressive gross profit margin of 62.19% for the same period reflects its ability to manage costs and operations efficiently, a crucial aspect for success in the logistics and transportation sector. This is complemented by the fact that Diana Shipping pays a significant dividend to shareholders, with a high dividend yield of 10.34%, which is particularly appealing to income-focused investors.
InvestingPro Tips for Diana Shipping Inc. reveal that the company not only pays a substantial dividend but also has liquid assets that exceed short-term obligations, enhancing its financial resilience. Furthermore, the stock is trading near its 52-week low, which might present a buying opportunity for those looking to capitalize on potential upside. For those interested in further insights, InvestingPro offers additional tips, including predictions that the company will be profitable this year and has been profitable over the last twelve months. To explore these insights in depth, visit https://www.investing.com/pro/DSX and remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 9 more InvestingPro Tips available, subscribers can gain a comprehensive view of the company's financial health and future prospects.
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