Tuesday, July 31, 2012

Diana Shipping Inc. - Earnings Estimate For 2012 Q2

For the quarter ended June 30th, 2012, we estimate that Diana Shipping Inc. (NYSE: DSX) generated basic earnings per common share of $0.20 on net income of $16,600,000. We estimate that TCE Revenues were $54,400,000 and the average TCE rate was $22,300.

As of June 30th, 2012, we estimate that book capitalization was $1.710 billion including shareholders’ equity of $1.249 billion, and debt outstanding of $463 million. Its debt to capitalization ratio stood at 27.0%. We also estimate that DSX had $457 million cash on hand as of the end of the quarter.

Following the delivery of M/V Philadelphia and the acquisition of M/V Melia during the quarter, the company owned a fleet of 28 dry cargo vessels (consisting of 17 panamax size vessels, one post-panamax vessel, and 10 cape size vessels), with a total DWT carrying capacity of 3,180,000 MT, and an average age per vessel of 6.7 years as of June 30th, 2012.

During the quarter DSX acquired one post-panamax new building vessel, scheduled for delivery ex-yard in August 2012, for a contract price of $25 million. During the previous quarter, DSX had placed an order for two panamax vessels, scheduled for delivery in the fourth quarter of 2013, for a contract price of $29 million per vessel.

In addition, Diana Shipping has a 10.7% interest in Diana Containerships (NASDAQ: DCIX), a publicly traded company specializing in container ships.

Based on yesterday’s stock closing price of $6.75 per share, we estimate that DSX has a market capitalization of $555 million and an enterprise value of $561 million.