Diana Shipping Inc. Announces Time Charter Contract for m/v Astarte With Paralos Shipping

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has announced a new time charter contract for its Kamsarmax dry bulk vessel, m/v Astarte. The contract, with Paralos Shipping Pte., , offers a gross charter rate of $14,000 per day, minus a 5% commission. The charter period is from August 18, 2024, until at least July 15, 2025, with a potential extension to September 15, 2025. This agreement is expected to generate approximately $4.58 million in gross revenue for the minimum scheduled period.

Following the sale of m/v Houston, Diana Shipping's fleet will comprise 38 dry bulk vessels, with a combined carrying capacity of about 4.4 million dwt and an average age of 11.03 years. The company is also anticipating the delivery of two methanol dual fuel new-building Kamsarmax vessels by 2028.

Positive

• New time charter contract secured for m/v Astarte, generating approximately $4.58 million in gross revenue
• Fleet modernization with the addition of two methanol dual fuel Kamsarmax vessels by 2028
• Diverse fleet of 38 dry bulk vessels across various size categories

Negative

• 5% commission paid to third parties on the charter rate
• Reduction in fleet size with the sale of m/v Houston

Insights

Financial Analyst

Diana Shipping's new time charter contract for m/v Astarte demonstrates a strategic move in a challenging dry bulk market. The $14,000 per day rate, while not exceptional, provides stable income for at least 11 months. This deal is expected to generate $4.58 million in gross revenue, contributing to the company's cash flow stability. However, the 5% third-party commission slightly reduces the net benefit. The company's fleet optimization, including the pending sale of m/v Houston, suggests a focus on efficiency and modernization. The addition of two methanol dual-fuel vessels by 2028 indicates a forward-looking approach to environmental regulations. Overall, this contract reflects Diana Shipping's ability to secure medium-term employment for its vessels, which is important in navigating market volatility.

Shipping Industry Expert

The time charter for m/v Astarte at $14,000 per day is a modest rate in the current Kamsarmax market. It's noteworthy that Diana Shipping secured a contract extending potentially to September 2025, providing revenue visibility in an uncertain market. The company's fleet composition, with a diverse range of vessel sizes from Ultramax to Newcastlemax, allows for flexibility in cargo contracts. The weighted average fleet age of 11.03 years is relatively young for the industry, potentially leading to lower operational costs and higher charter attractiveness. The upcoming addition of methanol dual-fuel vessels is a strategic move towards future-proofing the fleet against stringent environmental regulations. This balanced approach to fleet management and charter strategy positions Diana Shipping well in the competitive dry bulk sector.

ATHENS, Greece, Aug. 13, 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 entered into a time charter contract with Paralos Shipping Pte., Ltd., for one of its Kamsarmax dry bulk vessels, the m/v Astarte. The gross charter rate is US$14,000 per day, minus a 5.00% commission paid to third parties, for a period until minimum July 15, 2025 up to maximum September 15, 2025. The charter is expected to commence on August 18, 2024.

The “Astarte” is an 81,513 dwt Kamsarmax dry bulk vessel built in 2013.

The employment of “Astarte” is anticipated to generate approximately US$4.58 million of gross revenue for the minimum scheduled period of the time charter.

Upon completion of the previously announced sale of m/v Houston, Diana Shipping Inc.’s fleet will consist 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 including the m/v Houston and excluding the two vessels not yet delivered, is approximately 4.4 million dwt with a weighted average age of 11.03 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 gross charter rate for m/v Astarte in Diana Shipping's (DSX) new contract?

The gross charter rate for m/v Astarte in Diana Shipping's (DSX) new contract with Paralos Shipping is US$14,000 per day, minus a 5.00% commission paid to third parties.

When does the new charter for Diana Shipping's (DSX) m/v Astarte begin and end?

The charter for Diana Shipping's (DSX) m/v Astarte is expected to commence on August 18, 2024, and last until minimum July 15, 2025, with a potential extension to September 15, 2025.

How many vessels will Diana Shipping (DSX) have in its fleet after the sale of m/v Houston?

After the sale of m/v Houston, Diana Shipping (DSX) will have a fleet of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax vessels.

What is the total carrying capacity of Diana Shipping's (DSX) fleet as of August 13, 2024?

As of August 13, 2024, the combined carrying capacity of Diana Shipping's (DSX) fleet, including m/v Houston but excluding two vessels not yet delivered, is approximately 4.4 million dwt.