Diana Shipping Inc. - Earnings Estimate For 2010 Q3

For the quarter ended Sep 30th 2010, we forecast that Diana Shipping Inc. (NYSE: DSX) generated net income of $33.5 million, or $0.42 basic earnings per common share, on revenues of $71.5 million. We estimate that as of Sep 30th, 2010 the company had a total capitalization of $1.46 billion, long-term debt of $325.9 million and a debt to capitalization ratio of 22%, the lowest among its publicly traded peers.

DSX ended the quarter with approximately $320 million cash in hand to fund operations and its remaining capital expenditures.

As of Sep 30th, 2010 the company was operating a modern diversified fleet of 22 dry cargo vessels (consisting of 14 panamax size vessels and 8 cape size vessels) and two (capacity 3,400 TEU) container ships.

The company has agreed to purchase a 2010-built post-panamax vessel scheduled for delivery in Nov 2010. It also has two specialized cape size vessels on order, scheduled for delivery in 2012.

Eagle Bulk Shipping Inc. - Earnings Estimate For 2010 Q3

For the quarter ended September 30th 2010, we forecast that Eagle Bulk Shipping Inc. (NASDAQ: EGLE) generated basic earnings per common share of $0.07 on net income of $4,500,000. Its net TCE revenues for the quarter were approximately $63,100,000.

Genco Shipping & Trading Limited - Earnings Estimate For 2010 Q3

For the quarter ended September 30th 2010, we forecast that Genco Shipping & Trading (NYSE: GNK) generated basic earnings per common share of $1.04 on consolidated net income of $35,300,000. Its net TCE revenues for the quarter on a consolidated basis were approximately $113,000,000.

As of September 30th 2010, the company’s total debt on a fully consolidated basis stood at $1,755,500. Excluding the debt of the company's subsidiary Baltic Trading Limited (NYSE: BALT), GNK's total debt stood at $1,685,500,000.

Baltic Trading Limited – Earnings Estimate For 2010 Q3

For the quarter ended September 30th 2010, we forecast that Baltic Trading Limited (NYSE: BALT) generated basic earnings per common share of $0.12 on net income of $2,600,000. Its net TCE revenues for the quarter were approximately $10,200,000. We also forecast that during the third quarter of 2010 BALT generated $3,500,000 in cash available for distribution to shareholders, or the equivalent cash dividend of $0.16 per share outstanding.

As of September 30th 2010, the company had about $70,000,000 in debt and a total capitalization of approximately $357,500,000. Its debt to capitalization ratio stood comfortably at just below 20%. At the end of the quarter BALT also had about $49,000,000 cash in hand and an additional $12,000,000 in restricted cash.

BALT had a remaining $30,000,000 under its 2010 credit facility that was used to pay for the delivery of its last handy size vessel under the Metrostar acquisition. Following the completion of the Metrostar acquisition, BALT will have total debt of $100,000,000 and a debt to capitalization ratio of about 26%.

BALT today operates a modern diversified fleet of 8 dry cargo vessels, consisting of 3 handy size vessels, 4 supramax size vessels and one cape size vessel, with a total DWT capacity of approximately 493,000 MT. The company also has a cape size vessel under construction (DWT capacity 177,000 MT) scheduled for delivery during the fourth quarter of 2010.

Genco Shipping & Trading Limited - Coverage Initiation & Earnings Estimate For 2010 Q2

We are initiating coverage on Genco Shipping & Trading Limited. (NYSE: GNK), a publicly traded bulk shipping company.

As of June 30th, 2010, GNK was operating a modern diversified fleet of 35 dry cargo vessels, consisting of 8 Handysize, 6 Handymax, 4 Supramax, 8 Panamax, and 9 Capesize vessels. In addition the company’s subsidiary Baltic Trading Limited (NYSE: BALT), in which GNK had a 25.35% controlling interest, operated a fleet of 4 Supramax and 1 Capesize vessels.

We estimate that for the quarter ended June 30th, 2010, the Company’s own fleet generated TCE Revenues of approximately $96 million, or the equivalent daily TCE Rate of $30,518. For the same period GNK generated net income available to its shareholders of $33.5 million, or $1.07 basic earnings per common share.

Diana Shipping Inc. - Earnings Estimate For 2010 Q2

For the quarter ended June 30th 2010, we forecast that Diana Shipping Inc. (NYSE: DSX) generated net income of $32.9 million, or $0.41 basic earnings per common share. We estimate that as of June 30th, 2010 the company had a total capitalization of $1.43 billion, long-term debt of $327.4 million and a debt to capitalization ratio of only 23%. Following the delivery of the second container ship MV CENTAURUS on July 9th, 2010 the company will have cash on hand of approximately $246 million to fund operations and future acquisitions.

Diana Shipping Inc. is a publicly traded bulk shipping company. As of June 30th, 2010 the company was operating a modern diversified fleet of 22 dry cargo vessels (consisting of 14 panamax size vessels and 8 cape size vessels) and one panamax size (3,400 TEU) container ship.

The company took delivery on July 9th, 2010 of its second panamax size container ship, and also has two specialized cape size vessels on order, scheduled for delivery in 2012.

Baltic Trading Limited (BALT) - Coverage Initiation & Earnings Estimate For 2010 Q2

We are initiating coverage on Baltic Trading Limited (NYSE:BALT), a publicly traded bulk shipping company. As of June 30th, 2010, BALT was operating a modern fleet of 5 dry cargo vessels, consisting of 4 supramax size vessels and one cape size vessel. In addition the company had agreed to acquire 3 handy size vessels from Metrostar and had a cape size vessel under construction.

Following the delivery of the four new acquisitions during the second half of 2010, BALT will have a total capitalization of about $390 million, and it will operate a fleet of 9 dry cargo vessels with a total carrying capacity of 671,000 DWT and an average age of 1.2 years.
Even though the company’s vessels are chartered for medium term periods to first class charterers, substantially all the charters have floating rate agreements in place, in effect offering spot freight market exposure to investors.

We estimate that for the quarter ending June 30th, 2010, BALT generated net income of approximately $2.4 million or basic earnings of $0.11 per common share. The company plans to return a substantial portion of its cash flow to shareholders. We estimate that BALT generated approximately $4.6 million from operating activities, and approximately $3.25 million in cash available for distribution to shareholders, or the equivalent cash dividend of $0.14 per common share.

The company ended the quarter with approximately $60 million cash on hand and an available credit line of about $90 million (for a total liquidity of about $150 million) to finance operations and pay the remaining capital expenses of $147 million from its acquisition program.

Diana Shipping Inc. - A Look Into Its Cape Size Fleet (Continued)

In our previous note dated May 29th, 2010 we had examined the cape size fleet of Diana Shipping (NYSE: DSX), a publicly traded bulk shipping company. We had focused on four of the company’s vessels that had options attached giving the charterers the right, but not the obligation, to extend the vessels’ employment for an additional year. The four options were set to expire in May, October & December 2010, and May 2011.

The May 2010 option was for MV SIDERIS GS, a cape size vessel built in 2006. The vessel is currently on the last year of a four-year time charter with BHP Billiton, a contract that on average generated gross daily revenue of approximately $41,000.

As we had forecasted, the charterers did not exercise their option to extend the charter for 11 to 13 months at $48,500. Instead they agreed to extend the vessel’s employment for 28 to 32 months at $30,500.

True, DSX secured employment for its vessel with a first class charterer for the next 2.5 years. But the new rate will reduce annual gross revenues by approximately $3,850,000, and will also reduce annual net income by about $0.05 per share. Which begs the dilemma: Earnings visibility yes, but at what price?

Diana Shipping Inc. - A Look Into Its Cape Size Fleet

Diana Shipping Inc. (NYSE: DSX) operates a modern fleet of 22 dry cargo vessels, consisting of 14 panamax size vessels and 8 cape size vessels. All of the company’s cape size vessels are currently employed in medium to long-term time charters. Four time charters have options attached giving Charterers the right to extend the duration of each contract for an extra year at gross rates ranging between $48,500 to $52,000 per day. Three of those options are expiring (i.e. need to be declared) in May, October & December of 2010 respectively. Given that today the 12-month time charter rate for cape size vessels is approximately $35,000 per day, we do not expect Charterers to exercise the May option. But it will be interesting to see the fate of the October & December options.

Diana Shipping Inc. - Coverage Initiation & Earnings Estimate For 2010 Q1

We are initiating coverage on Diana Shipping Inc. (NYSE: DSX), a publicly traded bulk shipping company. As of March 31st, 2010, DSX was operating a modern diversified fleet of 22 dry cargo vessels, consisting of 14 panamax size vessels and 8 cape size vessels, and had a total capitalization of approximately $1.36 billion.

We estimate that for the quarter ending March 31st, 2010, DSX generated net income of $27.8 million, or $0.34 basic earnings per common share. We also estimate that as of March 31st, 2010 the company’s long-term debt was $329.8 million, representing a 24% debt to total capitalization ratio. DSX had an available credit line of $50.2 million and cash on hand of approximately $290 million to fund operations & future acquisitions.
 

Following the closing of the first quarter, the company announced a $118 million new-building order for two specialized cape size vessels, scheduled for delivery in 2012, and a $50 million investment in container ships.

Eagle Bulk Shipping Inc. - Coverage Initiation & Earnings Estimate For 2010 Q1

We are initiating coverage of Eagle Bulk Shipping Inc., (NASDAQ: EGLE), a publicly-traded bulk shipping company. As of March 31st, 2010, EGLE was operating a modern fleet of 33 Supramax Dry Cargo Vessels. EGLE will report earnings for the quarter ended March 31st, 2010 after the closing of markets today May 6th, 2010.

We estimate that for the first quarter of 2010 EGLE generated Revenues (Net of Commissions) in the amount of $51,225,000.

We also estimate that the daily average TCE (Net of Commissions) for the same period was $19,575.