Wednesday, February 22, 2012

Diana Shipping Inc. - Earnings Estimate For 2011 Q4

For the quarter ended December 31st, 2011, we estimate that Diana Shipping Inc. (NYSE: DSX) generated basic earnings per common share of $0.23 on net income of $18,600,000. We estimate that TCE Revenues were $54,500,000 and the average TCE rate was $25,400.

As of December 31st, 2011, we estimate that book capitalization was $1.58 billion including shareholders’ equity of $1.21 billion, and debt outstanding of $374 million. Based on the above its debt to capitalization ratio stood at 23.6%. Diana Shipping maintains a very strong cash position. As of December 31st, 2011, we estimate that DSX had $425 million cash on hand, well in excess of its debt outstanding.

During the first quarter of 2012, the company borrowed $16.125 million to partially finance the acquisition of M/V Leto (The vessel was delivered on January 16th). DSX has also entered into a loan agreement for an amount of $82.6 million, to finance its two new-building vessels (M/V Los Angeles was delivered on February 8th, whereas M/V Philadelphia is scheduled for delivery in the second quarter of 2012).

Following the delivery of M/V Leto & M/V Los Angeles, the company presently owns a modern diversified fleet of 26 dry cargo vessels (consisting of 16 PANAMAX size vessels, one POST-PANAMAX vessel, and 9 CAPE SIZE vessels), with a total DWT carrying capacity of approximately 2,900,000 MT, and an average age per vessel of 6.6 years.

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

Based on today’s stock closing price of $9.13, we estimate that DSX has a market capitalization of $754 million and an enterprise value of $703 million.