Diana's NaiasDRYBULK operator Diana Shipping will suspend payment of future dividends to bolster cash available for acquisitions.

 

“We believe we are now entering a period of low charter rates and vessel prices, which creates different opportunities to help us produce maximum returns,” said Diana CEO Simeon Palios in the company’s quarterly release.

 

“Low markets create opportunities,” he explained, emphasising that Diana boasts one of the lowest debt levels in the sector and has accepted “slightly lower rates in order to do business with credit-worthy charterers”.

 

Palios believes the credit crunch will translate into fewer buyers and lower vessel prices, as well as fewer new ships delivered from shipyards due to financing constraints.

 

"When market conditions and opportunities change, with our low debt level and by enhancing our liquidity, we will then have the flexibility to support more debt and reinstate our dividend,” he concluded.

 

NYSE-listed Diana reported net income of $57.6M in 3Q08 versus $50.4M in 3Q07, with average TCE rising from $29,399 to $47,098/day.

 

Revenues were also fuelled by fleet growth, with operating days increasing from 4,240 to 5,151. DRYBULK operator Diana Shipping will suspend payment of future dividends to bolster cash available for acquisitions.