ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company, has announced the successful signing of a $167.3 million secured term loan facility with Nordea Bank Abp (OTC:NRDBY), filial i Norge. The agreement, completed on Thursday, will mature in July 2030 and is secured by ten of the company's vessels.
The funds from this six-year loan were drawn down immediately and used to refinance two existing loan facilities with the same bank, which were due in October 2027 and June 2028, respectively.
This financial restructuring is part of Diana Shipping's broader strategy to optimize its capital structure and enhance operational flexibility. Following the sale of the m/v Houston, the company's fleet will include 38 dry bulk vessels with a combined carrying capacity of approximately 4.4 million dwt and a weighted average age of 10.98 years.
Diana Shipping's fleet, post-sale, is comprised of various vessel classes, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax. Additionally, the company 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, respectively.
The company primarily charters its vessels on short to medium-term time charters, transporting a range of dry bulk cargoes such as iron ore, coal, grain, and other materials along worldwide shipping routes.
The company also extended a time charter contract with Tokyo-based Nippon Yusen Kabushiki Kaisha for the Newcastlemax dry bulk vessel, m/v Los Angeles. New charter contracts have been secured for the vessels m/v Polymnia and m/v Electra with Reachy Shipping (SGP) Pte. Ltd., and Aquavita International S.A., respectively.
The company anticipates significant revenue from these contracts and is planning for fleet expansion, expecting 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.
On the financial front, Diana Shipping reported a net income of $2.1 million and EBITDA of $27.8 million on revenues of approximately $58 million in 2024. Furthermore, 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 financial activities, including the refinancing of loan facilities and the anticipation of new vessel deliveries, the company's financial health and market performance are of particular interest to investors. According to InvestingPro data, Diana Shipping has a market capitalization of $299.9 million and a price-to-earnings (P/E) ratio of 11.75, which adjusts to 18.1 for the last twelve months as of Q1 2024.
InvestingPro Tips suggest that Diana Shipping has a high shareholder yield and impressive gross profit margins of 59.83%. These margins are indicative of the company's efficiency in managing its cost of goods sold and could be a factor in its ability to maintain profitability despite challenging market conditions. Additionally, the company's stock is currently in oversold territory according to the Relative Strength Index (RSI), which may interest investors looking for potential buying opportunities.
Furthermore, the company pays a significant dividend to shareholders, with a dividend yield of 11.19% as of the latest data, although there has been a dividend growth decline of -50.0%. This substantial yield coupled with the recent declaration of a cash dividend of $0.075 per share confirms Diana Shipping's commitment to returning value to its shareholders.
For investors seeking further insights and analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/DSX, including expectations for sales and net income trends, stock volatility, and analyst predictions for profitability. Interested readers can also take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to these valuable tips. There are 9 additional InvestingPro Tips listed for Diana Shipping Inc., providing a comprehensive outlook for informed investment decisions.
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