ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company, has announced the successful signing of a seven-year $80.2 million secured term loan facility with Danish Ship Finance A/S, finalized on October 18, 2024. The loan, which will mature in April 2031, is secured by seven of the company's vessels.
This financial maneuver is aimed at refinancing an existing loan of the same amount that was originally set to mature in April 2028 and was previously secured by nine vessels. With the completion of the refinancing, Diana Shipping has released two of the mortgaged vessels.
Ioannis Zafirakis, the company's Director and Chief Financial Officer, commented on the refinancing, "This financial decision highlights the Company's dedication to improving its capital structure while increasing operational flexibility." He added that the strategic management of resources is intended to fortify the company's financial position, thereby supporting long-term growth and value for stakeholders.
Diana Shipping's fleet is comprised of 38 dry bulk vessels, including various classes such as Newcastlemax, Capesize, and Ultramax. The company's fleet, excluding two new-building Kamsarmax dry bulk vessels expected for delivery in the second half of 2027 and the first half of 2028, boasts a combined carrying capacity of approximately 4.2 million deadweight tonnage (dwt) with an average age of 11.06 years.
The company specializes in the ownership and bareboat charter-in of dry bulk vessels, primarily engaging in short to medium-term time charters. These vessels transport a range of dry bulk cargoes across worldwide shipping routes.
The information for this article is based on a press release statement from Diana Shipping Inc.
In other recent news, Diana Shipping Inc. has reported a series of significant developments. The company has extended a charter contract with Aquavita International S.A. and secured new charter contracts with Propel Shipping Pte. Ltd., Cargill Ocean Transportation, Nippon Yusen Kabushiki Kaisha, and Paralos Shipping Pte. Ltd. These contracts are expected to generate millions in gross revenue and include a notable increase in charter rates.
Despite a 7% decrease in average time charter rates for Capesize vessels in the second quarter of 2024, Panamax and Supramax rates saw an increase of 6% and 16% respectively. Diana Shipping also declared a quarterly cash dividend of $7.05 per share and reached a fleet utilization of 99.5%.
The company has also announced the expected 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 are part of Diana Shipping Inc.'s strategic approach to navigate the dynamic shipping industry. The company's disciplined strategy and commitment to financial health and shareholder value have been emphasized in these recent actions.
InvestingPro Insights
Diana Shipping's recent refinancing move aligns with its strong financial position, as highlighted by several key metrics from InvestingPro. The company's impressive gross profit margins, standing at 58.63% for the last twelve months as of Q2 2024, underscore its operational efficiency. This robust profitability supports the company's ability to secure favorable loan terms, as evidenced by the new seven-year facility with Danish Ship Finance A/S.
Moreover, Diana Shipping's commitment to shareholder value is reflected in its significant dividend yield of 12.55%. This aligns with an InvestingPro Tip indicating that the company "pays a significant dividend to shareholders." Such a high yield could be particularly attractive to investors in the current market environment.
It's worth noting that while the company has demonstrated financial strength, InvestingPro data suggests some challenges ahead. Analysts anticipate a sales decline in the current year, with revenue growth showing a -18.59% change in the last twelve months. This forecast aligns with the cyclical nature of the shipping industry and may explain the company's strategic refinancing to enhance its financial flexibility.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Diana Shipping. These tips could provide valuable context for understanding the company's future prospects in light of its recent financial decisions.
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