Diana Shipping Inc. Announces Time Charter Contract for m/v DSI Pegasus with Cargill Ocean Transportation
Rhea-AI Summary
Diana Shipping Inc. (NYSE: DSX) has announced a new time charter contract for its Ultramax dry bulk vessel, m/v DSI Pegasus, with Cargill Ocean Transportation. The contract offers a gross charter rate of $15,250 per day, with a 4.75% commission to third parties, for a period until minimum June 1, 2025, up to maximum August 1, 2025. The charter is set to begin on September 4, 2024, and is expected to generate approximately $4.09 million in gross revenue for the minimum scheduled period.
The m/v DSI Pegasus, a 60,508 dwt vessel built in 2015, is currently under charter to Reachy Shipping at $14,000 per day. Upon completion of a previously announced vessel sale, Diana Shipping's fleet will consist of 38 dry bulk vessels with a combined carrying capacity of about 4.4 million dwt and an average age of 11.07 years. The company is also expecting delivery of two methanol dual fuel new-building Kamsarmax vessels by 2028.
Positive
- New time charter contract secured at a higher rate ($15,250/day) compared to the current charter ($14,000/day)
- Expected gross revenue of $4.09 million for the minimum scheduled period
- Fleet modernization with two methanol dual fuel new-building Kamsarmax vessels expected by 2028
Negative
- Slight decrease in fleet size from 39 to 38 vessels due to the sale of m/v Houston
Insights
Diana Shipping's new charter for m/v DSI Pegasus with Cargill Ocean Transportation represents a modest improvement in market conditions. The
The minimum 9-month contract provides some stability to Diana's revenue stream, with potential for
Investors should note Diana's ongoing fleet renewal efforts, including the upcoming delivery of two methanol dual-fuel Kamsarmax vessels. This eco-friendly initiative could position the company favorably in an increasingly environmentally conscious shipping market, potentially attracting premium charters in the future.
The new charter for m/v DSI Pegasus represents a marginal improvement in Diana Shipping's revenue potential. The
Investors should focus on the broader picture of Diana's fleet utilization and diversification strategy. With 38 vessels post-sale of m/v Houston, the company maintains a balanced exposure across dry bulk segments. The average fleet age of 11.07 years is noteworthy, as it strikes a balance between operational efficiency and capital expenditure management.
The upcoming addition of methanol dual-fuel vessels signals forward-thinking capital allocation, potentially enhancing long-term competitiveness. However, these investments will likely impact short-term financial metrics and should be monitored for their return on investment in the coming years.
ATHENS, Greece, Aug. 29, 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 Cargill Ocean Transportation (Singapore) Pte. Ltd., for one of its Ultramax dry bulk vessels, the m/v DSI Pegasus. The gross charter rate is US
The “DSI Pegasus” is a 60,508 dwt Ultramax dry bulk vessel built in 2015.
The employment of “DSI Pegasus” is anticipated to generate approximately US
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 11.07 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 new charter rate for DSX's m/v DSI Pegasus?
When does the new charter for DSX's m/v DSI Pegasus begin?
How much gross revenue is the new charter for DSX's m/v DSI Pegasus expected to generate?
What will be the size of Diana Shipping Inc.'s (DSX) fleet after the sale of m/v Houston?
Is Diana Shipping Inc. (DSX) expecting any new vessel deliveries?
