Wednesday, May 2, 2012

Diana Shipping Inc. - Earnings Estimate For 2012 Q1

For the quarter ended March 31st, 2012, we estimate that Diana Shipping Inc. (NYSE: DSX) generated basic earnings per common share of $0.21 on net income of $16,800,000. We estimate that TCE Revenues were $54,600,000 and the average TCE rate was $24,000.

As of March 31st, 2012, we estimate that book capitalization was $1.65 billion including shareholders’ equity of $1.23 billion, and debt outstanding of $426 million. Based on the above its debt to capitalization ratio stood at 25.8%. Diana Shipping maintains a very strong cash position. As of March 31st, 2012, we estimate that DSX had $440 million cash on hand, i.e. the company had a negative net debt balance.

Following the delivery of M/V Leto & M/V Los Angeles, the company 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 6.7 years as of March 31st, 2012.

During the quarter DSX ordered two PANAMAX new building vessels scheduled for delivery at the end of 2013 for a contract price of $29 million per vessel. The company is also scheduled to take delivery of two additional vessels during the month of May 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 $7.97, we estimate that DSX has a market capitalization of $662 million and an enterprise value of $648 million.