ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in dry bulk vessels, has announced a new time charter contract for its Kamsarmax dry bulk vessel, the m/v Leonidas P. C. The agreement with Ming Wah International Shipping Company Limited secures a daily gross charter rate of $17,000, after a 5% commission to third parties. The charter period extends from February 21, 2024, until at least August 20, 2025, with a possibility of extension up to October 20, 2025.
The m/v Leonidas P. C., a 82,165 dwt Kamsarmax dry bulk vessel built in 2011, is expected to commence its employment under the new charter on February 21, 2024. This venture is projected to generate approximately $9.18 million in gross revenue for the minimum scheduled period of the time charter.
Following the previously announced sale of the m/v Artemis, Diana Shipping Inc.'s fleet will consist of 39 dry bulk vessels. This includes a variety of sizes: 4 Newcastlemax, 9 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax. With the inclusion of the m/v Artemis, the company's fleet boasts a combined carrying capacity of around 4.5 million dwt, with a weighted average age of 10.64 years.
Diana Shipping Inc. operates primarily on short to medium-term time charters, transporting a range of commodities such as iron ore, coal, grain, and other materials along global shipping routes.
The information provided is based on a press release statement from Diana Shipping Inc.
InvestingPro Insights
Diana Shipping Inc. (NYSE:DSX) continues to navigate the volatile shipping industry with strategic charter agreements, such as the recent contract for the m/v Leonidas P. C. vessel. While the company's management is cautiously optimistic about their chartering strategy, it's important to consider the financial health and market performance of DSX to understand the broader context of this decision.
InvestingPro data shows that Diana Shipping Inc. maintains a market capitalization of $313.5 million, with a notably low price-to-earnings (P/E) ratio of 4.7, reflecting a market perception that the stock may be undervalued. The adjusted P/E ratio for the last twelve months as of Q3 2023 stands at 5.55, which could signal an attractive entry point for investors considering the company's earnings potential relative to its share price. Furthermore, the gross profit margin for the same period is impressive at 65.21%, indicating strong operational efficiency despite the industry's challenges.
From an InvestingPro Tips perspective, Diana Shipping Inc. is noted for its significant dividend yield, currently at 20.41%, making it a potentially appealing option for income-focused investors. However, analysts have raised concerns about the company's cash burn and anticipate a sales decline in the current year, which investors should monitor closely. Despite these challenges, DSX is expected to remain profitable this year, with profitability sustained over the last twelve months.
For those interested in further analysis and additional InvestingPro Tips, which currently number over 10 for DSX, visit https://www.investing.com/pro/DSX. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with comprehensive data and expert insights.
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