Saturday, November 19, 2011

Diana Shipping Inc. - Earnings Estimate For 2011 Q3

For the quarter ended September 30th, 2011, we estimate that Diana Shipping Inc. (NYSE: DSX) generated basic earnings per common share of $0.33 on net income of $26,400,000. We estimate that TCE Revenues for the quarter were $60,900,000.

As of September 30th, 2011, we estimate that book capitalization was $1.565 billion including shareholders’ equity of $1.188 billion, and debt outstanding of $377 million. We also estimate that its debt to capitalization ratio stood at 24.1%. In addition to its existing debt, DSX has entered into a loan agreement for an amount of $82.6 million, to finance the two new-building vessels that are scheduled for delivery in 2012.

The company presently owns a modern diversified fleet of 24 dry cargo vessels (consisting of 15 PANAMAX size vessels, one POST-PANAMAX vessel, and 8 CAPE SIZE vessels), with a total DWT carrying capacity of approximately 2,610,000 MT, and an average age per vessel of 6.70 years as of September 30th, 2011.

On November 18th, 2001 DSX announced the acquisition of a PANAMAX vessel (DWT capacity 81,297 MT, built in 2010) for a purchase price of $32,250,000. The company also has two specialized CAPE SIZE vessels on order, with a total DWT capacity of 412,000 MT, scheduled for delivery in 2012.

In addition, Diana Shipping has a 14.5% interest in Diana Containerships (NASDAQ: DCIX), a publicly traded company specializing in container ships.

Based on yesterday’s stock closing price of $8.09, we estimate that DSX has a market capitalization of $668 million and an enterprise value of $644 million.