Diana Shipping extends bulk charter contract by Investing.com

Athens – Diana Shipping Company . (NYSE:), a global shipping company specializing in the ownership of dry bulk vessels, has announced the extension of a time charter contract with Cobelfret SA for the m/v Amphitrite vessel. according to InvestingPro Analysis Diana Shipping appears to be 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 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% third-party commission. The expanded charter is scheduled to begin on December 31, 2024, and continue until at least January 1, 2026, with the possibility of extension until March 15, 2026.

The m/v Amphitrite vessel is part of Diana Shipping’s diverse fleet, which currently includes 38 dry bulk vessels ranging in size from Newcastlemax to Ultramax. The company also expects to add two new Kamsarmax methanol dual-fuel vessels scheduled for delivery in the second half of 2027 and the first half of 2028, respectively. With a market capitalization of US$227.46m and EBITDA of US$104.46m in the trailing twelve months, Diana Shipping maintains a strong operating presence in the dry bulk segment. 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 has a combined carrying capacity of approximately 4.2 million tons with a weighted average age of 11.23 years.

The extension of Amphitrite’s employment is expected to generate approximately $4.22 million in gross revenues for the scheduled minimum hire period. Diana Shipping’s vessels operate primarily on short to medium term charters and transport a variety of dry bulk cargo via global shipping routes.

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

In other recent news, Diana Shipping Inc. A series of time leases, resulting in significant revenue streams being secured. The company has signed agreements with its headquarters in Tokyo Nippon Yusen Kabushiki Kaisha (over-the-counter:), Mitsui OSK Lines Co., Ltd (TYO:), Paralos Shipping Pte. Ltd., and Bang (NYSE: SA). These contracts include several dry bulk vessels, including m/v Myrto, m/v Santa Barbara, m/v Maia and m/v DSI Aquarius.

Despite a 16.8% decline in revenue over the past 12 months, Diana Shipping 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 issued €150 million of unsecured notes due in 2029.

In another development, the company is scheduled to expand its fleet by adding two new Kamsarmax methanol dual-fuel vessels in the second half of 2027 and the first half of 2028, respectively. These latest developments are part of Diana Shipping’s strategy to modernize its fleet and expand its market presence.

However, the company reported a decline in time charter revenue and net income in the third quarter of 2024, with revenue falling to $57.5 million and net income halving to $3.7 million. Despite this, Diana Shipping has improved its cash position and reduced long-term debt, showing a strong balance sheet. These are recent developments in Diana Shipping’s business operations.

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