Diana Shipping Inc. Announces the Sale of a Post-Panamax Dry Bulk Vessel, the m/v Alcmene, and the Direct Continuation of Time Charter Contract for m/v San Francisco With SwissMarine

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has announced two significant transactions: First, the sale of its 2010-built Post-Panamax vessel 'Alcmene' for approximately $11.9 million, with delivery to an unaffiliated buyer by March 7, 2025. Second, the company has secured a new time charter contract with SwissMarine for its Newcastlemax vessel 'm/v San Francisco' at a $26,000 daily rate (up from previous $22,000), starting February 27, 2025, until minimum October 25, 2026.

The San Francisco charter is expected to generate about $15.55 million in gross revenue. After the Alcmene sale, Diana's fleet will comprise 37 dry bulk vessels with a combined capacity of 4.2 million dwt and an average age of 11.37 years. The company also has two methanol dual fuel Kamsarmax vessels on order for delivery in 2027-2028.

Positive

• New charter rate for m/v San Francisco increased by 18.2% to $26,000/day
• Secured $15.55 million minimum gross revenue from San Francisco charter
• Sale of aging vessel Alcmene for $11.9 million improving fleet age profile

Negative

• Fleet reduction by one vessel affecting total capacity
• Fleet's weighted average age of 11.37 years indicates aging assets

Insights

Maritime Financial Analyst

The vessel sale and charter extension announcement reveals Diana Shipping's sophisticated approach to fleet optimization and revenue management. The disposal of the 13-year-old Alcmene at $11.9 million demonstrates prudent asset management, as Post-Panamax vessels of this age typically face increasing maintenance costs and reduced charter rate potential. This move aligns with the industry's broader trend toward fleet modernization and environmental efficiency.

The charter extension for San Francisco at $26,000 per day represents strong commercial execution. The 18% rate increase from the current charter reflects both robust market conditions in the Newcastlemax segment and Diana's ability to leverage its modern vessels for premium rates. The minimum 20-month duration of this charter, securing approximately $15.55 million in gross revenue, provides valuable cash flow visibility through late 2026.

Particularly noteworthy is Diana's strategic positioning with upcoming methanol dual-fuel Kamsarmax vessels, scheduled for delivery in 2027-2028. This investment in next-generation technology, combined with the disposal of older tonnage, indicates a clear transition toward a more sustainable and profitable fleet composition. The company's fleet modernization strategy, maintaining a weighted average age of 11.37 years, positions it favorably for future environmental regulations and charter market opportunities.

ATHENS, Greece, Feb. 12, 2025 (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 it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to sell to an unaffiliated third party, the 2010-built Post-Panamax vessel “Alcmene”, with delivery to the buyer latest by March 7, 2025, for a sale price of approximately US$11.9 million before commissions.

The Company also announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with SwissMarine Pte. Ltd., Singapore, for one of its Newcastlemax dry bulk vessels, the m/v San Francisco. The gross charter rate is US$26,000 per day, minus a 5.00% commission paid to third parties, for a period until minimum October 25, 2026 up to maximum December 25, 2026. The new charter period is expected to commence on February 27, 2025. The m/v San Francisco is currently chartered, as previously announced, at a gross charter rate of US$22,000 per day, minus a 5.00% commission paid to third parties.

The “San Francisco” is a 208,006 dwt Newcastlemax dry bulk vessel built in 2017.

The employment extension of “San Francisco” is anticipated to generate approximately US$15.55 million of gross revenue for the minimum scheduled period of the time charter.

Upon completion of the aforementioned sale, Diana Shipping Inc.’s fleet will consist of 37 dry bulk vessels (4 Newcastlemax, 8 Capesize, 4 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, including the m/v Alcmene and excluding the two vessels not yet delivered, is approximately 4.2 million dwt with a weighted average age of 11.37 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 is the sale price of DSX's vessel Alcmene in 2025?

Diana Shipping (DSX) is selling the Alcmene for approximately $11.9 million before commissions, with delivery to the buyer by March 7, 2025.

What is the new charter rate for DSX's vessel San Francisco in 2025?

The new charter rate for m/v San Francisco is $26,000 per day (minus 5% commission), up from the previous rate of $22,000 per day.

How many vessels will DSX operate after the Alcmene sale?

After the sale of Alcmene, Diana Shipping's fleet will consist of 37 dry bulk vessels, plus two methanol dual fuel vessels on order for 2027-2028 delivery.

What is the expected revenue from DSX's San Francisco vessel charter?

The San Francisco charter is expected to generate approximately $15.55 million in gross revenue for the minimum scheduled period.

When will DSX's new charter contract for San Francisco commence?

The new charter period for m/v San Francisco is expected to commence on February 27, 2025, lasting until minimum October 25, 2026.