Diana flexes profits

Diana Shipping's 73,600-dwt bulk carrier Thetis (built 2004) at an iron ore terminal in Chennai, India

Diana Shipping has more than doubled its profits in what the chief executive calls the company’s “strongest quarter ever.”

The New York-listed bulker owner on Wednesday posted $53.2m in first-quarter net income, an increase of 148% over $21.4m in same period of 2007.

At $0.71 per share, results were within range of analyst expectations, but they beat the average projection of $0.68 per share.

“We believe that results for the remainder of the year will be equally strong,” said chief executive Simeon Palios, “based on the fact that we have already secured $241 million to $247 million in revenues for the 95% to 97% of the operating days remaining for the year 2008.”

The first-quarter profits swell comes on the back of voyage and time-charter revenue that increased by 105% to $78.9m.

Athens-based Diana tied the increase to improved time-charter rates and a larger fleet.

The company’s fleet of panamax and capesize bulkers pulled in an average time-charter equivalent (TCE) rate of $45,191 per day, a 65.6% improvement over $27,283 per day in the first quarter of 2007.

Vessel operating expenses, meanwhile, increased by 41.3% to $53.2m.

Also Wednesday, Diana Shipping declared a $0.85 dividend for the first quarter. The 41.7% increase brings the payout to the highest level in the company's history.

Diana Shipping stock headed upward Wednesday by 2.5% to hit $35.13 in late-morning trading.

(Click here for the full earnings release.)

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