Diana Shipping’s Investment Strategy and Market Outlook
Diana Shipping’s investment strategy is to preserve the strength and integrity of its balance sheet and gradually increase its leverage as asset values weaken.
In 2014, the newbuilding orderbook for dry bulk carriers reported 746 orders—145 Panamax vessels, 132 Capesize vessels, and 19 VLCCs.
Coal stockpiles reached 8 million tons. The continued rise may negatively impact the near-term coal import prospects.
Diana Shipping (DSX) commented that global iron ore imports in 2015 are expected to grow by 6% and reach 1.413 billion tons.
According to Diana Shipping’s (DSX) management, world crude steel production reached 1.66 billion metric tons in 2014. It was up by 1.2% compared to 2013.
In its recent earnings report, Diana Shipping (DSX) commented that 4Q14 disappointed owners. There was a huge movement in all bulk carriers’ earnings.
Diana Shipping’s management stated that out of the total $100 million in its share repurchase program, it only utilized $27.9 million.
Diana Shipping (DSX) reported net loss available to common stockholders of $7.7 million, or $0.10 per share, for 4Q14. It was led by higher revenue growth.
For 4Q14, Diana Shipping’s time charter revenue stood at $46.1 million—compared to $39.5 million in 4Q13. It was partly offset by decreased time charter rates.
Diana Shipping (DSX) extended its present time charter contract with Glencore Grain BV. The extension is for one of its Panamax dry bulk vessels.
Diana Shipping entered into a time charter contract with Glencore Grain BV. It’s expected to generate ~$2.34 million in gross revenue.
Diana Shipping is a global shipping company. It specializes in dry bulk vessel ownership. It reported the results of its 4Q earnings on March 4, 2015.
DryShips (DRYS) commented that its total dry bulk fleet’s compound annual growth rate for 2005 to 2014 stood at 9.1%. Its fleet increased by 4.4% in 2014.
The crude tanker market in 2014 experienced a significant decline in oil prices, mainly due to US shale growth and a production spike by OPEC.
Looking ahead, spot market rates are expected to rise going forward, and this will allow DryShips to improve its revenue and earnings.
World Maritime News comments that it expects a fundamental and sustainable dry bulk market recovery in the second half of 2015 and throughout 2016.
DryShips (DRYS) commented that, during the fourth quarter of 2014, Brazil and Australia’s combined iron ore exports were up 11.3% year-over-year.
As of February 17, 2015, DryShips (DRYS) owned 78.3 million shares or 59.2% of Ocean Rig UDW (ORIG).
DryShips (DRYS) is a pure shipping company with investments in offshore drilling. Its shipment segment has an approximate $438 million net asset value.
For the fourth quarter of 2014, DryShips (DRYS) reported a net loss of $24 million or a $0.04 basic and diluted loss per share.
But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.