Diana Shipping $DSX Continuation of Time Charters After Smashes Q4 Estimates

DSX stock is attracting increased buzz on its valuation and its string of continuing time charters after smashing Q4 earnings estimates.

Diana Shipping announces time charter contract for M/V Florida

Diana Shipping entered into a time charter contract with Bunge S.A., Geneva, for one of its Capesize dry bulk vessels, to be named “Florida”. The gross charter rate is $25,900 per day, minus a 5% commission paid to third parties, for a period of minimum fifty-eight months to maximum sixty-two months. The charter is expected to commence on March 29, 2022. As previously announced on December 3, 2021, the m/v Florida is a 2022 Japanese new-building Capesize dry bulk vessel of approximately 181,500 dwt that the Company entered into an agreement to purchase in December 2021. The vessel is now expected to be delivered to the Company by the sellers by March 29, 2022. The employment of “Florida” is anticipated to generate approximately $45.07 million of gross revenue for the minimum scheduled period of the time charter.

Diana Shipping announces direct continuation of time charter contract M/V Santa Barbara

On March 3, 2022, Diana Shipping announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Cargill International S.A., Geneva, for one of its Capesize dry bulk vessels, the m/v Santa Barbara. The gross charter rate is US$29,500 per day, minus a 4.75% commission paid to third parties, for a period until minimum May 10, 2023 up to maximum July 10, 2023. The new charter period is expected to commence on March 15, 2022. The m/v Santa Barbara is currently chartered, as previously announced, at a gross charter rate of US$17,250 per day, minus a 4.75% commission paid to third parties. The “Santa Barbara” is a 179,426 dwt Capesize dry bulk vessel built in 2015. The employment of “Santa Barbara” is anticipated to generate approximately US$12.24 million of gross revenue for the minimum scheduled period of the new time charter.

Diana Shipping announces direct continuation of time charter contract M/V Medusa

On February 28, 2022, Diana Shipping announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Cargill International S.A., Geneva, for one of its Kamsarmax dry bulk vessels, the m/v Medusa. The gross charter rate is US$26,000 per day, minus a 4.75% commission paid to third parties, for a period until minimum May 15, 2023 up to maximum July 15, 2023. The new charter period is expected to commence on March 5, 2022. The m/v Medusa is currently chartered, as previously announced, at a gross charter rate of US$11,000 per day, minus a 4.75% commission paid to third parties. The “Medusa” is a 82,194 dwt Kamsarmax dry bulk vessel built in 2010. The employment of “Medusa” is anticipated to generate approximately US$11.18 million of gross revenue for the minimum scheduled period of the time charter.

Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2021

On February 25, 2022, Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the ownership of dry bulk vessels, reported net income of $41.1 million and net income attributed to common stockholders of $39.7 million for the fourth quarter of 2021, including a gain of $15.3 million from the spin-off of OceanPal Inc. This compares to a net loss of $7.4 million and net loss attributed to common stockholders of $8.9 million, including a $1.9 million impairment loss, reported in the fourth quarter of 2020.

Diana Shipping reported Q4 EPS of 48c versus the consensus estimate of 21c. The company reported Q4 revenue of $68.8M versus the consensus estimate of $60.5M.

Time charter revenues were $68.8 million for the fourth quarter of 2021, compared to $42.7 million for the same quarter of 2020. The increase in time charter revenues was mainly due to increased average time charter rates that the Company achieved for its vessels during the quarter. This increase was partly offset by decreased revenues due to decreased ownership days compared to last year, resulting from the sale of vessels.

Net income for the year ended December 31, 2021 amounted to $57.4 million and net income attributed to common stockholders amounted to $51.6 million, including a $1.4 million gain on sale of vessels and $15.3 million gain from the spin-off of OceanPal Inc. This compares to a net loss of $134.2 million and net loss attributed to common stockholders of $140.0 million, including a $104.4 million impairment loss and $1.1 million loss on sale of vessels, for the same period of 2020. Time charter revenues were $214.2 million for the year ended December 31, 2021, compared to $169.7 million for the same period of 2020.

📺 Shipping company stocks fell double digits in last month – Here’s why

Shipping company stocks fell double digits in last month - Here's why

📉 DSX Stock Technical Analysis

The long and short-term trends are both positive. DSX is part of the Marine industry. There are 29 other stocks in this industry, DSX did better than 62% of them. Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

There is a support zone ranging from 4.39 to 4.45. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is support at 3.81 from a trend line in the weekly time frame. There is also support at 3.66 from a trend line in the weekly time frame.

Although DSX has an excellent technical rating, it does not offer a high-quality setup at the moment. DSX stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when DSX stock consolidates and has a Setup Rating of 8 or higher.

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