Di on the money

Diana Shipping has defied the dry-cargo downturn to post a near 50% rise in fourth quarter profit.

Simeon Palios.

Higher charter income and a marginally larger fleet led to the improved showing which measured up to Wall Street expectations.

Simeon Palios, chairman and CEO of the shipowner, said: “In a challenging economic environment, Diana Shipping achieved solid growth in revenues and earnings for the fourth quarter and full year 2008.

“While business conditions remain unsettled, we are well-positioned to operate our business successfully and to seize upon opportunities that may emerge in the coming year. We have cultivated and expanded our relationships with some of the strongest charterers in the industry."

NYSE-listed Diana’s bottom line came in at $54.2m for the fourth quarter, 48% higher than the $36.4m it posted a year ago. Full-year profit jumped from $134.2m to $221.7m.

Earnings per share for the quarter hit $0.72, which is bang on what analysts were looking for. Revenue of $84.3m beat the $82.4m projected.

Diana says its bulkers returned time charter equivalent rates of $45,824 per day in the fourth quarter compared with $36,459 daily in the corresponding period of 2007.

Palios added: “We believe the current dislocations in the dry bulk marketplace will offer many opportunities for companies with good revenue visibility, strong capital and liquidity, and management teams with a disciplined approach to managing risk and creating value. We fully intend to take advantage of those opportunities.”

Printable version Newsletter sign up