Shipping Stock: Red-Hot Star Bulk, Diana Shipping Report in Deficit, China

Product ocean shippers Diana Shipping (DSX) and Star Bulk career (SBLK) reported first quarter earnings on Tuesday. Both shipping stocks rose before the results and Diana Shipping was in a buying zone.


Demand for products such as coal, grain and chemicals remains high due to concerns over food and energy shortages, Russia’s invasion of Ukraine and the Kovid lockdown and pollution control in China’s economy, the two organizations said.

Diana shipping income

Estimate: Wall Street expects Diana Shipping to earn 28 cents per share, according to Factset, from a loss a year earlier. Revenue was expected to come in at $ 64.6 million, a 57% gain.

Results: Arrears before opening on Tuesday.

Diana Shipping stock rose 7.5% to 6.08 on the stock market today, matching the highest price since late 2015. DSX stock has now expanded slightly from the 5.78 entry in the cup-with-handle base.

Located in Greece, Diana Shipping operates about three dozen ships as of the fourth quarter. It owns or leases those ships Coal and iron ore, a major component needed to make steel, accounted for about 85% of the company’s cargo shipments last year. Cereals consist of about 9%.

Like other shipping stocks, Diana Shipping has a strong composite rating, at 99. Its EPS rating is 75.

Shipping stock and China, global demand

Russia’s aggression in Ukraine has cut off supplies and purchases of items such as oil and wheat, pushing up their prices. But China’s epidemic-related lockdowns – and the prospect of a reopening of its economy – have also added to the uncertainty surrounding its own demand for the product and the state of the world’s disrupted supply chain.

Problems above and below the supply chain have increased shipping costs. But some analysts say that last year container-shipping stock was more than one for bulk carriers. As a result, they say, the former tried to expand further than the latter, and thus the economy is more at risk for overcapacity if it turns south.

When Diana Shipping released its fourth-quarter results in February, management said “the war in Ukraine could have a broad-based negative impact on the dry bulk market and black sea ports shut down operations indefinitely.”

Diana also said at the time that China’s “disappointing” real estate market had reduced its chances of growth. And it noticed a decline in the country’s steel production last year, in an effort to reduce pollution, even as production increased in other countries.

Citing a study by shipping services company Clarksons, Diana Shipping said China’s iron ore exports would be “under pressure” this year.

Globally, Clarkson forecasts 2.2% growth for total dry-bulk trade this year, Star Bulk said in its own earnings call in February. Dry bulk refers to any material – such as grain or coal – that can be stored or shipped in bulk.

Star Bulk Income

Estimate: Wall Street expects Star Bulk to earn 47 1.47 per share, a 308% jump, over $ 288 million in earnings, an 85% gain.

Results: After closing.

Star Bulk stock rose 4.9% on Monday to close at 33.60, the highest hit since the end of 2014. Share Shave has a 98 composite rating and a 99 EPS rating.

Star Bulk operates a fleet of more than 120 ships. It is also located in Greece.

When Star Bulk reported its final round of earnings in February, it cited a number of factors that weighed on the dry-bulk trade earlier this year. Among them: Indonesia’s coal export ban in January, the Winter Olympics in China and severe weather in Brazil.

However, the company added that rising commodity prices have led producers to crank up production and others to secure a worldwide supply that is declining prematurely.

CEO Petraeus Pappas said, “High product prices provide a strong incentive for dry bulk cargo producers to expand output and exports in the next few years while stocks can only be replenished on a field basis at the right time.” In February

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