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Diana Shipping secures new charter for Panamax vessel

Published 29/04/2024, 15:56
DSX
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ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in the ownership of dry bulk vessels, has announced a new time charter contract with ASL Bulk Shipping Limited for its Panamax dry bulk vessel, the m/v Leto. The agreement, which commences on May 2, 2024, secures a gross charter rate of $16,000 per day, with a 5% commission deducted for third-party payments.

The charter period is set to last until at least March 1, 2025, and could extend up to April 30, 2025. This contract is expected to generate approximately $4.75 million in gross revenue for the minimum scheduled period. The m/v Leto is a 2010-built Panamax dry bulk vessel with a deadweight of 81,297 tons.

Following the sale of the m/v Houston, Diana Shipping's fleet will consist of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax ships. Additionally, the company anticipates the delivery of two methanol dual fuel new-building Kamsarmax dry bulk vessels by the second half of 2027 and the first half of 2028, respectively.

As of today, the combined carrying capacity of the company's fleet, including the m/v Houston and excluding the two vessels not yet delivered, is approximately 4.4 million dwt. The fleet has a weighted average age of 10.74 years.

Diana Shipping Inc. provides worldwide shipping transportation services, primarily through short to medium-term time charters. Its vessels transport a variety of dry bulk cargoes, including iron ore, coal, grain, and other materials.

The information in this article is based on a press release statement from Diana Shipping Inc.

InvestingPro Insights

Diana Shipping Inc. (NYSE:DSX) has been navigating through the volatile shipping industry with a strategic focus on time charter contracts, like the recently announced agreement with ASL Bulk Shipping Limited. The company's financial health and investment potential can be further illuminated by key metrics and insights from InvestingPro.

With a market capitalization of $333.85 million, Diana Shipping stands as a notable player in the maritime transport sector. The company's commitment to shareholder returns is reflected in its high shareholder yield and significant dividend yield of 10.17%, which is particularly attractive for income-focused investors. These aspects are highlighted in the two InvestingPro Tips for Diana Shipping, which also point out the company's impressive gross profit margins of 62.19% and its low earnings multiple, with a P/E ratio of 6.67.

The company's stock has been trading near its 52-week low, yet analysts predict profitability for the current year, a sentiment backed by Diana Shipping's performance over the last twelve months. For investors considering entry points or evaluating the company's stock stability, it's worth noting that Diana Shipping generally trades with low price volatility. Furthermore, the firm's liquid assets exceed its short-term obligations, underscoring a solid financial position that could weather industry headwinds.

For those interested in a deeper dive into Diana Shipping's financials and market potential, InvestingPro offers additional insights and metrics. There are 8 more InvestingPro Tips available that can provide a comprehensive analysis of the company's financial health and future prospects. For access to these valuable tips, consider using the 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.

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