ATHENS - Diana Shipping Inc . (NYSE: NYSE:DSX), a global shipping company specializing in dry bulk vessels, has entered into a time charter contract with Aquavita International S.A. for its Post-Panamax dry bulk vessel, the m/v Electra. The contract, commencing today, secures a daily gross charter rate of $14,000, minus a 4.75% third-party commission, and runs until at least October 15, 2025, with a maximum extension to December 31, 2025.
The Electra, a 2013-built vessel with a deadweight of 81,150 tons, is expected to generate approximately $6.89 million in gross revenue for the minimum scheduled period of the charter. This announcement comes as Diana Shipping's fleet is set to number 38 dry bulk vessels following the sale of the m/v Houston. The company's fleet includes a variety of vessel classes and boasts a combined carrying capacity of about 4.4 million dwt with an average fleet age of 10.83 years.
Diana Shipping has also announced future fleet expansions with 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, respectively. These additions are part of the company's strategy to modernize its fleet and enhance its service offerings in the transportation of commodities like iron ore, coal, and grain across global shipping routes.
The company's business activities primarily involve short to medium-term time charters, which provide a degree of cash flow stability and predictability. With the latest charter agreement, Diana Shipping continues to leverage its fleet to meet the demand for dry bulk shipping capacity in the market.
InvestingPro Insights
Diana Shipping Inc. (NYSE: DSX) has demonstrated a strong financial performance with an impressive gross profit margin of 59.83% over the last twelve months as of Q1 2024, according to the latest data from InvestingPro. This high margin underscores the company's efficiency in managing its operational costs relative to its revenues, which is particularly noteworthy in the capital-intensive shipping industry. Additionally, Diana Shipping stands out with a high shareholder yield, reflecting its commitment to returning value to its shareholders through dividends and share repurchases. The company's dividend yield as of the first half of 2024 is notably substantial at 10.03%, which is attractive for income-focused investors.
While Diana Shipping's revenue has seen a decline of 16.71% over the last twelve months as of Q1 2024, the company's strategic charter contracts, such as the recent agreement with Aquavita International S.A., are aimed at securing stable cash flows and mitigating the impact of market volatility on earnings. Furthermore, analysts predict that Diana Shipping will maintain profitability this year, a positive sign for the company's financial health and future prospects. The stock is also trading near its 52-week low, which, combined with its low price volatility, could present a potential entry point for investors seeking to capitalize on the company's robust fundamentals and favorable dividend policy.
For those looking to delve deeper into Diana Shipping's financials and future outlook, InvestingPro offers additional insights and metrics. There are 6 more InvestingPro Tips available that could provide a more comprehensive analysis of DSX's performance and valuation. Interested readers can explore these tips and take advantage of a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/DSX.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.