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

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has secured a time charter contract with Paralos Shipping for its Kamsarmax vessel m/v Maia. The charter will run from December 9, 2024, until minimum November 1, 2025, at a gross rate of $11,600 per day (minus 5% commission). The contract is expected to generate approximately $3.75 million in gross revenue for the minimum period.

The Maia is an 82,193 dwt vessel built in 2009. Diana Shipping's current fleet comprises 38 dry bulk vessels with a combined capacity of 4.2 million dwt and an average age of 11.18 years. The company expects delivery of two methanol dual fuel Kamsarmax vessels by 2027-2028.

Positive

• Secured new time charter contract generating $3.75 million minimum gross revenue
• Fleet expansion with two methanol dual fuel vessels scheduled for delivery 2027-2028

Negative

• 5% commission reduction on charter rate impacts net revenue

Insights

Shipping Industry Analyst

The new time charter contract for m/v Maia represents a strategic move in the current dry bulk market environment. The $11,600 per day rate, while modest compared to peak rates seen in recent years, provides stable income for Diana Shipping through late 2025. The contract's minimum duration will generate approximately $3.75 million in gross revenue, offering predictable cash flow. Diana Shipping's diversified fleet of 38 vessels, plus two methanol dual-fuel newbuilds on order, positions them well in the evolving maritime landscape. The addition of eco-friendly vessels shows forward-thinking adaptation to stricter environmental regulations. The fleet's average age of 11.18 years is relatively young for the industry, reducing maintenance costs and increasing operational efficiency.

Financial Analyst

This charter agreement provides moderate but stable revenue visibility for Diana Shipping. The $11,600 daily rate translates to an annual run rate of about $4.2 million before commissions, representing a small but reliable portion of DSX's revenue stream. With a market cap of $239 million, this single vessel contract contributes meaningfully to the company's income stability. The 5% third-party commission is standard for the industry. The company's strategy of securing medium-term charters helps buffer against spot market volatility, though the rate reflects current softer market conditions in the dry bulk sector. The upcoming addition of dual-fuel vessels demonstrates capital investment in future-proof assets.

ATHENS, Greece, Dec. 05, 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 Maia. The gross charter rate is US$11,600 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 December 9, 2024.

The “Maia” is an 82,193 dwt Kamsarmax dry bulk vessel built in 2009.

The employment of “Maia” is anticipated to generate approximately US$3.75 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 11.18 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 charter rate for Diana Shipping's m/v Maia vessel (DSX)?

The charter rate for Diana Shipping's m/v Maia is $11,600 per day, minus a 5% commission paid to third parties.

How long is the time charter contract for Diana Shipping's m/v Maia (DSX)?

The contract runs from December 9, 2024, until minimum November 1, 2025, with possible extension until December 31, 2025.

How much revenue will the Maia charter generate for Diana Shipping (DSX)?

The charter is expected to generate approximately $3.75 million in gross revenue for the minimum scheduled period.

What is the current fleet size of Diana Shipping (DSX)?

Diana Shipping's fleet consists of 38 dry bulk vessels with a combined carrying capacity of 4.2 million dwt.