Diana Shipping Inc. Announces Time Charter Contract for m/v Crystalia With Louis Dreyfus Company
Diana Shipping Inc. secures a time charter contract for its Ice Class Panamax dry bulk vessel, the m/v Crystalia, with Louis Dreyfus Company Freight Asia Pte. Ltd. at a gross charter rate of US$13,900 per day for 21 to 25 months, generating approximately US$8.76 million in revenue. The fleet will consist of 38 dry bulk vessels after the completion of previous sales, with plans for two new-building Kamsarmax vessels. The combined carrying capacity of the fleet is approximately 4.5 million dwt with an average age of 10.69 years.
The time charter contract announced by Diana Shipping Inc. with Louis Dreyfus Company Freight Asia Pte. Ltd. for the m/v Crystalia vessel represents a strategic business decision within the shipping industry. The fixed gross charter rate of US$13,900 per day , despite a 5% third-party commission, provides a predictable revenue stream for the company. The duration of the contract, spanning 21 to 25 months , guarantees medium-term employment of the vessel, which is crucial for maintaining cash flow stability in a sector known for its volatility.
From a market perspective, the deal signifies Diana Shipping's ability to secure contracts with reputable charterers, which may positively influence investor confidence. Moreover, the anticipated gross revenue of approximately US$8.76 million for the minimum charter period could have a noticeable impact on the company's financial performance. It is also significant to note the fleet composition change post the sale of two vessels and the planned addition of methanol dual-fuel vessels, which indicates a move towards modernization and potentially more environmentally sustainable operations.
Analyzing the financial implications of the new charter agreement, Diana Shipping Inc.'s projected gross revenue of US$8.76 million can be viewed as a positive development for the company's top-line growth. The announcement should be evaluated in light of the current market conditions for dry bulk shipping, which are influenced by factors such as global trade volumes, commodity prices and maritime regulations.
Investors should consider the impact of the fleet's weighted average age of 10.69 years and its carrying capacity when assessing the company's asset value and operational efficiency. The introduction of methanol dual-fuel vessels may also highlight the company's commitment to innovation and compliance with stricter environmental standards, potentially reducing future regulatory risks.
The move towards incorporating methanol dual-fuel new-building Kamsarmax dry bulk vessels into Diana Shipping Inc.'s fleet by the latter half of this decade is noteworthy from an environmental standpoint. Methanol as a marine fuel can significantly reduce emissions compared to conventional fuels, aligning with the International Maritime Organization's (IMO) goals for reducing the shipping industry's carbon footprint.
While the immediate financial impact of this transition may not be evident, the long-term benefits include potential cost savings on carbon credits and compliance with future regulations. This proactive approach could position Diana Shipping favorably within the industry, as stakeholders increasingly prioritize sustainability.
03/01/2024 - 09:18 AM
ATHENS, Greece, March 01, 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 Louis Dreyfus Company Freight Asia Pte. Ltd., for one of its Ice Class Panamax dry bulk vessels, the m/v Crystalia. The gross charter rate is US$13,900 , minus a 5% commission paid to third parties, for a period of minimum twenty-one (21) months to maximum twenty-five (25) months. The charter is expected to commence during the second quarter of 2024.
The “Crystalia” is a 77,525 dwt Ice Class Panamax dry bulk vessel built in 2014.
The employment of “Crystalia” is anticipated to generate approximately US$8.76 million of gross revenue for the minimum scheduled period of the time charter.
Upon completion of the previously announced sales of m/v Houston and m/v Artemis, 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 m/v Artemis and excluding the two vessels not yet delivered, is approximately 4.5 million dwt with a weighted average age of 10.69 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 continuing impacts of the COVID-19 pandemic; 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.
What is the gross charter rate for the time charter contract of Diana Shipping Inc.'s m/v Crystalia with Louis Dreyfus Company Freight Asia Pte. Ltd.?
The gross charter rate is US$13,900 per day.
How long is the period of the time charter contract for Diana Shipping Inc.'s m/v Crystalia?
The period ranges from a minimum of twenty-one (21) months to a maximum of twenty-five (25) months.
How much gross revenue is expected to be generated from the employment of Diana Shipping Inc.'s m/v Crystalia during the minimum scheduled period of the time charter?
Approximately US$8.76 million of gross revenue is expected to be generated.
What types of vessels will be in Diana Shipping Inc.'s fleet after the completion of the previously announced sales?
The fleet will consist of 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax vessels.
What are the plans for new-building vessels in Diana Shipping Inc.'s fleet?
The company 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.
What is the combined carrying capacity of Diana Shipping Inc.'s fleet as of today?
The combined carrying capacity of the fleet is approximately 4.5 million dwt.
