ATHENS - Diana Shipping Inc. (NYSE:DSX), a global shipping company with impressive gross profit margins of 58% and a market capitalization of $158 million, has entered into a time charter contract with China Resource Chartering Pte. Ltd. for the m/v Ismene, one of its Panamax dry bulk vessels. The contract, starting on April 26, 2025, secures a daily rate of $11,000 before a 5% third-party commission, and will last until at least March 20, 2026, with a potential extension to May 20, 2026.
The m/v Ismene, a 77,901 dwt Panamax dry bulk vessel built in 2013, is expected to generate approximately $3.54 million in gross revenue for the minimum scheduled charter period. This addition to the company’s time charter portfolio is part of Diana Shipping’s broader fleet operations, which include 37 dry bulk vessels of various sizes and specifications. According to InvestingPro analysis, the company maintains a healthy current ratio of 2.58, indicating strong short-term liquidity, and trades at an attractive Price/Book ratio of 0.31.
The company’s fleet, excluding two methanol dual fuel new-building Kamsarmax dry bulk vessels scheduled for delivery in the second half of 2027 and the first half of 2028, boasts a combined carrying capacity of around 4.1 million dwt with a weighted average age of 11.46 years. With analysts setting a target price of $2.60, significantly above the current trading price of $1.44, InvestingPro data suggests the stock may be undervalued. Discover more insights and 10+ additional ProTips with an InvestingPro subscription.
Diana Shipping focuses on the ownership and bareboat charter-in of dry bulk vessels, primarily engaging in short to medium-term time charters. The company, which generated $228 million in revenue and $92 million in EBITDA over the last twelve months, specializes in transporting a wide range of dry bulk cargoes, including iron ore, coal, grain, and other materials across global shipping routes.
This announcement is based on a press release statement and includes forward-looking statements subject to significant uncertainties. Diana Shipping has expressed that the projections are based on assumptions which may not be realized and are beyond the company’s control, highlighting the inherent risks in such forward-looking statements. The company has provided this information in compliance with the Private Securities Litigation Reform Act of 1995, taking advantage of the safe harbor provisions for forward-looking statements.
In other recent news, Diana Shipping Inc. reported its fourth-quarter 2024 earnings, with earnings per share (EPS) of $0.02, meeting analyst expectations. The company achieved revenue of $57.1 million, slightly surpassing the forecast of $54.7 million. Additionally, Diana Shipping has entered into new time charter contracts, including one with Cargill International SA for its Panamax vessel, the m/v Leto, expected to generate approximately $5.93 million in gross revenue. Another charter with Cargill Ocean Transportation for the Ultramax vessel, the m/v DSI Andromeda, is projected to bring in around $3.18 million.
The company has also announced a strategic partnership with Ecogas Holding AS, taking an 80% equity interest in a venture to construct two new semi-refrigerated LPG vessels, marking a significant fleet expansion. Diana Shipping’s current fleet consists of 37 dry bulk vessels, and the company anticipates adding two methanol dual-fuel Kamsarmax vessels by 2028. These developments come as the company focuses on fleet modernization and eco-friendly technologies.
Diana Shipping has secured favorable time charters for nine vessels, with the weighted average daily rates reflecting a disciplined chartering strategy. The company maintains a strong cash position of $207.2 million and has reduced its long-term debt by 1% from the previous year. The recent earnings report and strategic moves indicate Diana Shipping’s ongoing efforts to enhance its market position and operational efficiency.
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