Diana Shipping Inc. Announces Time Charter Contract for m/v DSI Altair with Propel Shipping

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has announced a new time charter contract for its Ultramax dry bulk vessel, m/v DSI Altair, with Propel Shipping Pte. The contract offers a gross charter rate of US$15,750 per day, minus a 5% commission, for a period until minimum November 1, 2025, up to maximum December 31, 2025. This new charter, commencing on September 26, 2024, is expected to generate approximately US$6.24 million in gross revenue for the minimum scheduled period.

The m/v DSI Altair, a 60,309 dwt vessel built in 2016, is currently chartered to Western Bulk Carrier AS at a lower rate of US$13,800 per day. Diana Shipping's fleet consists of 38 dry bulk vessels with a combined carrying capacity of about 4.2 million dwt and an average age of 10.97 years. The company is also expecting delivery of two methanol dual fuel new-building Kamsarmax vessels by 2028.

Positive

• New time charter contract for m/v DSI Altair at a higher rate of US$15,750 per day
• Expected gross revenue of US$6.24 million for the minimum scheduled period
• Increase in charter rate from US$13,800 to US$15,750 per day for the vessel
• Diversified fleet of 38 dry bulk vessels with 4.2 million dwt carrying capacity
• Two methanol dual fuel new-building Kamsarmax vessels expected for delivery by 2028

Negative

• None.

News Market Reaction

+2.09%

1 alert

+2.09% News Effect

On the day this news was published, DSX gained 2.09%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

ATHENS, Greece, Sept. 19, 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 Propel Shipping Pte. Ltd., for one of its Ultramax dry bulk vessels, the m/v DSI Altair. The gross charter rate is US$15,750 per day, minus a 5.00% commission paid to third parties, for a period until minimum November 1, 2025 up to maximum December 31, 2025. The charter is expected to commence on September 26, 2024. The m/v DSI Altair is currently chartered, as previously announced, to Western Bulk Carrier AS, at a gross charter rate of US$13,800 per day, minus a 5.00% commission paid to third parties.

The “DSI Altair” is a 60,309 dwt Ultramax dry bulk vessel built in 2016.

The employment of “DSI Altair” is anticipated to generate approximately US$6.24 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 10.97 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 Diana Shipping's m/v DSI Altair?

The new gross charter rate for m/v DSI Altair is US$15,750 per day, minus a 5% commission paid to third parties.

When does the new time charter contract for DSX's m/v DSI Altair begin?

The new time charter contract for m/v DSI Altair is expected to commence on September 26, 2024.

How much gross revenue is the new charter for DSX's m/v DSI Altair expected to generate?

The new charter for m/v DSI Altair is anticipated to generate approximately US$6.24 million of gross revenue for the minimum scheduled period.

What is the current size and average age of Diana Shipping's (DSX) fleet?

Diana Shipping's fleet currently consists of 38 dry bulk vessels with a combined carrying capacity of approximately 4.2 million dwt and a weighted average age of 10.97 years.

Is Diana Shipping (DSX) expanding its fleet with new vessels?

Yes, Diana Shipping 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.