Diana Shipping has cautioned against taking recovery in the dry bulk market for granted, despite unveiling sturdy second quarter results.
Diana Shipping has cautioned against taking recovery in the dry bulk market for granted, despite unveiling sturdy second quarter results.
?We believe that the difficult phase of the cycle is far from over in the dry bulk market,? said Diana"s chairman and chief executive Simeon Palios.
The New York-listed company posted $30.4m in net income for the quarter, substantially down on net income of $65.7m in the same three-month period of 2008.
The lower prevailing market rates, as well increased off-hire time, were blamed for curbing revenues from $86.8m in last year"s second quarter to $59.8m this year.
Mr Palios said management was pleased with the overall picture of profitable operations, a strong cash position and ?minimal? leverage.
?The consistent application of our strategies has enabled the company to deliver a predictable revenue stream from relationships with quality charterers,? Mr Palios said.
Diana boosted its cash position to nearly $218m and maintained ?one of the lowest debt levels in our industry?.
He added: ?We believe that Diana is well-positioned, not only to navigate this turbulent economic cycle, but also to seize upon the opportunities that will be available to strong competitors in the dry bulk sector.?
The Athens-based company is often cited by analysts as among the strongest publicly listed companies in its sector and a likely buyer of bulker bargains.
But Diana appeared to downplay any expectations of immediate fireworks.
?Over time, we plan to take advantage of these opportunities to expand our fleet and enhance our cash generation potential for the benefit of our shareholders,? Mr Palios said.
Given the company"s projection of further difficulties ahead in the market, Diana would be ?patient and disciplined?.
It intended to gradually deploy resources as it invested in future opportunities, he said.
Second quarter earnings took net income for the first six months ended to $65.2m, compared with $109.9m for the same period of 2008.
Voyage and time charter revenues were $122.5m for the six months ended June 30, compared with $165.6m for the same period of 2008.
Diana owns and operates 19 panamax and capesizes, with a further two capsizes due for delivery this year and in 2010, both of which are due to go on five-year charter to strong Asian counterparties.
The first of the newbuildings, to be named Houston, has been chartered by China"s Jiangsu Shagang Group and the second, New York, is being taken by Japan"s NYK.
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