ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in dry bulk vessels, has entered into a new time charter contract for its Ultramax dry bulk vessel, the m/v DSI Altair, with Propel Shipping Pte. Ltd. The contract, commencing next Thursday, is at a daily rate of $15,750, less a 5% commission to third parties, and will last until at least November 1, 2025, with the possibility of extending to December 31, 2025.
The m/v DSI Altair, built in 2016 and with a deadweight of 60,309 tons, is currently under charter to Western Bulk Carrier AS at a rate of $13,800 per day. The new contract represents a notable increase in the charter rate for Diana Shipping and is expected to generate approximately $6.24 million in gross revenue for the minimum scheduled period.
Diana Shipping's fleet is comprised of 38 dry bulk vessels, including various classes such as Newcastlemax, Capesize, Post-Panamax, Kamsarmax, Panamax, and Ultramax. The company also 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. Excluding the two vessels yet to be delivered, the fleet's combined carrying capacity stands at around 4.2 million dwt, with an average age of nearly 11 years.
Diana Shipping provides worldwide shipping transportation services, primarily engaging its fleet on short to medium-term time charters to carry a variety of dry bulk commodities such as iron ore, coal, grain, and other materials.
The announcement is based on a press release statement from Diana Shipping Inc. and offers a snapshot of the company's current operational status and future outlook within the shipping industry. The company's forward-looking statements reflect management's current views and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.
In other recent news, Diana Shipping Inc. has secured multiple new charters. The company has inked a time charter contract with Cargill Ocean Transportation for its Ultramax dry bulk vessel, the m/v DSI Pegasus, expected to generate roughly $4.09 million in gross revenue. Concurrently, a significant increase from the previous rate was noted in the new charter with Nippon Yusen Kabushiki Kaisha for its Capesize dry bulk vessel, projected to result in about $18.49 million in gross revenue. A time charter contract with Paralos Shipping Pte. Ltd. for the Kamsarmax dry bulk vessel is also expected to generate approximately $4.58 million.
Despite a 7% decrease in average time charter rates for Capesize vessels in the second quarter of 2024, Diana Shipping reported increases of 6% and 16% in Panamax and Supramax rates respectively, with fleet utilization peaking at an impressive 99.5%. The company declared a quarterly cash dividend of $7.05 per share.
Diana Shipping 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. These recent developments are part of the company's strategic approach to navigate the dynamic shipping industry, reflecting Diana Shipping's commitment to financial health and shareholder value.
InvestingPro Insights
Diana Shipping Inc. (NYSE:DSX) has recently showcased its financial robustness and shareholder value through impressive gross profit margins and a significant dividend yield. According to real-time data from InvestingPro, the company boasts a gross profit margin of 58.63% for the last twelve months as of Q2 2024, highlighting efficient operations and cost management. Furthermore, investors may find Diana Shipping's dividend yield particularly attractive, standing at 12.55% as of the latest data, which is a testament to the company's commitment to returning value to its shareholders.
From an investment perspective, Diana Shipping's market capitalization is currently at $284.39 million, and the stock is trading at a price-to-earnings (P/E) ratio of 24.84. While the P/E ratio has adjusted to 38.9 for the last twelve months as of Q2 2024, this metric still provides insight into the valuation and potential investor expectations for the company's earnings growth. It's also notable that despite a revenue decline of 18.59% over the last twelve months as of Q2 2024, analysts predict the company will remain profitable this year, as per InvestingPro Tips.
For investors seeking more in-depth analysis and additional insights, InvestingPro offers a range of tips to help make informed decisions. Currently, there are 6 additional InvestingPro Tips available for Diana Shipping, which can be accessed by visiting the dedicated page for the company (https://www.investing.com/pro/DSX). These tips delve into various aspects of the company's financial health and market performance, providing a more comprehensive understanding of its current position and future prospects.
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