Diana Shipping Inc. Announces Direct Continuation of Time Charter Contract for m/v Amphitrite

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has extended its time charter contract with Cobelfret S.A., Luxembourg for the Post-Panamax vessel m/v Amphitrite. The new charter terms include a rate of $8,750 per day for the first 50 days and $12,100 per day thereafter, minus 5% commission. The contract runs from December 31, 2024, until minimum January 1, 2026, with potential extension to March 15, 2026.

The extension is expected to generate approximately $4.22 million in gross revenue for the minimum period. The Amphitrite is a 98,697 dwt vessel built in 2012. DSX's current fleet comprises 38 dry bulk vessels with a combined capacity of 4.2 million dwt and an average age of 11.23 years. The company also anticipates delivery of two methanol dual fuel Kamsarmax vessels by 2027-2028.

Positive

• Secured charter extension generating $4.22 million minimum gross revenue
• Higher rate of $12,100/day for majority of charter period compared to initial $8,750/day
• Fleet expansion with two methanol dual fuel vessels on order

Negative

• 5% commission reducing effective charter rates

Insights

Shipping Industry Analyst

This charter extension for the m/v Amphitrite represents a strategic move in the current dry bulk market environment. The two-tier rate structure - $8,750 for the first 50 days followed by $12,100 per day - reflects market expectations of improving rates in 2025. The minimum guaranteed revenue of $4.22 million provides stable cash flow through early 2026.

The deal timing is particularly noteworthy as it secures employment during a traditionally volatile period in the dry bulk sector. For context, current Post-Panamax rates have been under pressure, making this rate structure relatively competitive. The 5% commission is standard for the industry, maintaining operational cost efficiency.

Diana Shipping's fleet diversification strategy is evident - their 38-vessel portfolio spans multiple vessel classes, providing flexibility across different trade routes and cargo types. The upcoming addition of two methanol dual-fuel vessels also positions them well for future environmental regulations.

Maritime Economics Expert

The charter extension's financial structure merits attention. The initial $8,750 daily rate for 50 days, followed by $12,100, represents a 38.3% rate increase, suggesting strong market fundamentals for 2025. This stepped-rate structure helps bridge the current market softness while positioning for anticipated market improvement.

For retail investors, this translates to predictable revenue streams through early 2026, with the contract's flexibility window (January-March 2026) providing strategic optionality. The $4.22 million minimum revenue commitment strengthens DSX's forward earnings visibility, particularly valuable given the company's 234.7 million market capitalization.

ATHENS, Greece, Dec. 24, 2024 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, today announced that, through a separate wholly-owned subsidiary, it has extended the time charter contract with Cobelfret S.A., Luxembourg, for one of its Post-Panamax dry bulk vessels, the m/v Amphitrite. The gross charter rate is US$8,750 per day for the first fifty (50) days of the charter period and US$12,100 per day for the balance period of the time charter, in each case minus a 5.00% commission paid to third parties, for a period until minimum January 1, 2026 up to maximum March 15, 2026. The new charter period is expected to commence on December 31, 2024.

The “Amphitrite” is a 98,697 dwt Post-Panamax dry bulk vessel built in 2012.

The employment extension of “Amphitrite” is anticipated to generate approximately US$4.22 million of gross revenue for the minimum scheduled period of the time charter.

Diana Shipping Inc.’s fleet currently consists of 38 dry bulk vessels: 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax and 9 Ultramax. The Company also expects to take delivery of two methanol dual fuel new-building Kamsarmax dry bulk vessels by the second half of 2027 and the first half of 2028, respectively. As of today, the combined carrying capacity of the Company’s fleet, excluding the two vessels not yet delivered, is approximately 4.2 million dwt with a weighted average age of 11.23 years. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, www.dianashippinginc.com. Information contained on the Company’s website does not constitute a part of this press release.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership and bareboat charter-in of dry bulk vessels. The Company’s vessels are employed primarily on short to medium-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, including the escalation of the conflict in the Middle East, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

FAQ

What are the new charter rates for DSX's m/v Amphitrite vessel?

The new charter rates are $8,750 per day for the first 50 days and $12,100 per day for the remaining period, minus a 5% commission.

How much revenue will DSX generate from the Amphitrite charter extension?

The charter extension is expected to generate approximately $4.22 million in gross revenue for the minimum scheduled period.

What is the duration of DSX's new charter contract for Amphitrite?

The charter period runs from December 31, 2024, until minimum January 1, 2026, with possible extension until March 15, 2026.

How many vessels are in Diana Shipping's (DSX) current fleet?

DSX's fleet consists of 38 dry bulk vessels with a combined carrying capacity of 4.2 million dwt and an average age of 11.23 years.

When will DSX receive its new methanol dual fuel vessels?

DSX expects to take delivery of two methanol dual fuel Kamsarmax vessels by the second half of 2027 and the first half of 2028.