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Must-know: An overview of Diana Shipping’s earnings

Part 2
Must-know: An overview of Diana Shipping’s earnings (Part 2 of 9)

Why Diana Shipping’s 2Q revenue increased with a larger fleet

Diana Shipping’s 2Q revenue

Diana Shipping (DSX) continues to manage its fleet in a prudent manner. It’s designed in order to promote a balance of time charter maturities and produce a predictable revenue stream. The company’s earnings and revenue are mainly driven by the industry fundamentals that we’ll discuss in the later part of the series. Management discussed the industry fundamentals in its earnings call.

Fleet MaximizationEnlarge Graph

For 2Q14, Diana Shipping recorded time charter revenues of $43.2 million, compared to $40 million for the same quarter in 2013. The increase was mainly due to an increase in ownership days, resulting from fleet expansion. It was partially offset by decreased time charter rates.

The number of vessels at the end of 2Q14 stood at 38 with a weighted average age of 6.8 years compared to 33 with a weighted average age of 6.4 years recorded at the end of 2Q13. At the end of June 30, 2014, DSX’s ownership days increased to 3,417 from 2,930 recorded at the end of June 30, 2013. Fleet utilization increased to 99.8% from 99.2%.

Currently, DSX’s revenue days are 85% for 2014 and 27% for 2015.

Meanwhile, the company has peers like DryShips (DRYS), Navios Maritime Holdings (NM), Safe Bulkers (SB) and Diana Containerships Inc. (DCIX). The Guggenheim Shipping ETF (SEA) tracks shipping companies.

 

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