Diana Shipping secures charter deal for Kamsarmax vessel By Investing.com

ATHENS – Diana Shipping Inc . (NYSE:), a global shipping company specializing in dry bulk vessels, has entered into a time charter contract with Paralos Shipping Pte. Ltd. for its Kamsarmax dry bulk vessel, the m/v Astarte. The contract, commencing on Monday, stipulates a daily gross charter rate of $14,000, with a 5% commission to third parties, lasting until at least July 15, 2025, and could extend up to September 15, 2025.

The Astarte, a 2013-built vessel with a deadweight of 81,513 tonnes, is expected to generate approximately $4.58 million in gross revenue for the minimum scheduled period of the charter. This deal comes as Diana Shipping’s fleet is set to consist of 38 dry bulk vessels after the sale of the m/v Houston.

The fleet includes various ship sizes, with two methanol dual fuel new-building Kamsarmax dry bulk vessels anticipated for delivery in the second half of 2027 and the first half of 2028, respectively.

Currently, excluding the two vessels yet to be delivered, Diana Shipping’s fleet has a combined carrying capacity of about 4.4 million dwt and an average age of 11.03 years. The company’s vessels primarily engage in short to medium-term time charters, transporting a range of commodities such as iron ore, coal, and grain across global shipping routes.

This news is based on a press release statement and reflects the company’s current charter activities and fleet status without speculating on future market conditions or the potential impact on the company’s financials. Diana Shipping has made no further comment on the significance of this charter contract or its future business strategy. The information provided is strictly factual, highlighting the specifics of the new charter agreement and the current composition of the company’s fleet.

In other recent news, Diana Shipping Inc. reported a resilient performance in the second quarter of 2024. Despite a 7% decrease in average time charter rates for Capesize vessels, the company saw increases of 6% and 16% in Panamax and Supramax rates respectively. The company’s fleet utilization peaked at an impressive 99.5%, and a quarterly cash dividend of $7.05 per share was declared.

Diana Shipping also announced the anticipated delivery of two methanol dual-fuel newbuildings in 2027 and 2028. The company is keen on maintaining its focus on ESG initiatives, with a significant portion of its revenue for 2024 and 2025 already secured.

These recent developments point towards Diana Shipping’s strategic approach to navigate the dynamic shipping industry. The company’s disciplined strategy and commitment to ESG principles, coupled with its proactive approach to securing revenue and managing debt, reflect a strong focus on financial health and shareholder value.

InvestingPro Insights

Diana Shipping Inc. (NYSE:DSX) has demonstrated robust financial health in recent times, underpinned by impressive gross profit margins. According to the latest InvestingPro data, the company’s gross profit margin for the last twelve months as of Q2 2024 stands at a strong 58.63%. This indicator of profitability suggests that Diana Shipping has been effective in managing its cost of goods sold and maintaining profitability on its shipping operations.

Despite facing a challenging market with revenue declining by 18.59% in the same period, the company has managed to maintain a high dividend yield of 11.63%, as of the latest data. This commitment to returning value to shareholders is further emphasized by one of the InvestingPro Tips, which notes that Diana Shipping pays a significant dividend to shareholders. Investors seeking income-generating assets might find this aspect particularly appealing.

It is also noteworthy that the company’s P/E ratio has adjusted to 41.75, reflecting investors’ expectations of future earnings potential. While the P/E ratio is on the higher side, it is essential to consider the company’s profitability over the last twelve months and the fact that analysts predict the company will be profitable this year, according to another InvestingPro Tip. For those interested in further insights, there are additional tips available at InvestingPro, which could provide a deeper understanding of Diana Shipping’s financial outlook.

In summary, while the market presents its challenges, Diana Shipping’s financial metrics, such as a high gross profit margin and a significant dividend yield, could make it an attractive option for certain investors. The company’s current charter activities, including the new contract with Paralos Shipping Pte. Ltd., might contribute positively to its financial performance, aligning with the profitability indicated by the InvestingPro Tips.

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