Diana Shipping extends charter contract for bulk vessel

ATHENS - Diana Shipping Inc . (NYSE:), a global shipping company specializing in the ownership of dry bulk vessels, has announced the extension of a time charter contract with Cobelfret S.A. for the m/v Amphitrite. According to InvestingPro analysis, Diana Shipping appears undervalued despite recent market challenges, with the stock trading at just 0.46 times book value and maintaining impressive gross profit margins of 57.48%. The Post-Panamax dry bulk vessel, built in 2012, will continue to be chartered at a daily rate of $8,750 for the first 50 days and $12,100 thereafter, less a 5% commission to third parties. The extended charter is set to begin on December 31, 2024, and will last until at least January 1, 2026, with the possibility of extension up to March 15, 2026.

The m/v Amphitrite is part of Diana Shipping's diverse fleet, which currently includes 38 dry bulk vessels ranging from Newcastlemax to Ultramax sizes. The company also anticipates the addition of two methanol dual fuel new-building Kamsarmax dry bulk vessels scheduled for delivery in the second half of 2027 and the first half of 2028, respectively. With a market capitalization of $227.46 million and EBITDA of $104.46 million in the last twelve months, Diana Shipping maintains a strong operational presence in the dry bulk sector. For deeper insights into Diana Shipping's fleet economics and valuation metrics, InvestingPro subscribers have access to over 10 additional exclusive ProTips and comprehensive financial analysis. Excluding the two vessels yet to be delivered, Diana Shipping's fleet boasts a combined carrying capacity of approximately 4.2 million dwt with a weighted average age of 11.23 years.

The extension of the Amphitrite's employment is projected to generate around $4.22 million in gross revenue for the minimum scheduled charter period. Diana Shipping's vessels are primarily employed on short to medium-term time charters and transport a variety of dry bulk cargoes across global shipping routes.

This announcement is based on a press release statement and contains forward-looking statements subject to various assumptions and uncertainties. Diana Shipping Inc. has not provided any additional comments on the future expectations or projections beyond what is stated in the press release. While the stock has experienced a significant 28.84% decline over the past six months, detailed financial analysis and valuation metrics available through InvestingPro's comprehensive research reports can help investors better understand the company's long-term potential.

In other recent news, Diana Shipping Inc. has inked a series of time charter contracts, securing significant revenue streams. The company has signed agreements with Tokyo-based Nippon Yusen Kabushiki Kaisha (OTC:), Mitsui O.S.K. Lines, Ltd. (TYO:), Paralos Shipping Pte. Ltd., and Bunge (NYSE:) SA. These contracts involve various dry bulk vessels, including the m/v Myrto, m/v Santa Barbara, m/v Maia, and m/v DSI Aquarius.

Despite a 16.8% revenue decline over the last twelve months, Diana Shipping has maintained impressive gross profit margins of 57.5%, according to an analysis by InvestingPro. The company has also secured vessel employment for the remainder of 2024 and for 2025, and has issued €150 million in senior unsecured bonds due in 2029.

In another development, the company is set to expand its fleet with the addition 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 recent developments are part of Diana Shipping's strategy to modernize its fleet and expand its market presence.

However, the company reported a decrease in time charter revenues and net income in the third quarter of 2024, with revenues falling to $57.5 million and net income halved to $3.7 million. Despite this, Diana Shipping improved its cash position and reduced long-term debt, showcasing a robust balance sheet. These are recent developments in Diana Shipping's business operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.