Thursday, May 20, 2010

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.