Diana Shipping Inc. Announces Time Charter Contract for m/v Santa Barbara With Mitsui O.S.K. Lines
Rhea-AI Summary
Diana Shipping Inc. (NYSE: DSX) has secured a new time charter contract with Mitsui O.S.K. Lines, for its Capesize vessel m/v Santa Barbara. The contract features a gross charter rate of $22,000 per day (minus 5% commission) from December 28, 2024, until minimum October 20, 2025. This represents an increase from the previous rate of $21,250 with Smart Gain Shipping Co.
The 179,426 dwt vessel, built in 2015, is expected to generate approximately $6.42 million in gross revenue for the minimum scheduled period. Diana Shipping's fleet currently comprises 38 dry bulk vessels with a combined capacity of 4.2 million dwt and an average age of 11.22 years. The company also anticipates delivery of two methanol dual fuel Kamsarmax vessels by 2027-2028.
Positive
- Secured higher charter rate of $22,000/day vs previous $21,250/day
- Expected gross revenue of $6.42 million for minimum charter period
- Contract with established industry player Mitsui O.S.K. Lines
Negative
- None.
Insights
The new charter contract for the Santa Barbara represents a modest
The charter with Mitsui O.S.K. Lines, a reputable Japanese shipping company, reduces counterparty risk. While the rate increase is modest, it reflects current market conditions and provides earnings visibility. The company's diversified fleet of 38 vessels across various size segments helps mitigate market volatility, with Capesize vessels like Santa Barbara typically commanding premium rates in the dry bulk sector.
This charter renewal indicates stability in the dry bulk shipping market, particularly in the Capesize segment. The slight uptick in daily rates suggests a moderately positive market environment, though not showing the dramatic increases seen in previous cycles. The contract's timing, extending through most of 2025, positions Diana Shipping to maintain steady revenue streams during a period of potential market uncertainty.
The company's fleet profile, with a balanced mix across vessel sizes and an average age of 11.22 years, remains competitive. The future addition of methanol dual-fuel vessels aligns with industry trends toward cleaner shipping solutions, potentially commanding premium rates from environmentally conscious charterers. This strategic positioning could enhance Diana's market competitiveness in the evolving regulatory landscape.
ATHENS, Greece, Dec. 18, 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 Mitsui O.S.K. Lines, Ltd., for one of its Capesize dry bulk vessels, the m/v Santa Barbara. The gross charter rate is US
The “Santa Barbara” is a 179,426 dwt Capesize dry bulk vessel built in 2015.
The employment of “Santa Barbara” is anticipated to generate approximately US
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 11.22 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 Santa Barbara vessel with Mitsui O.S.K. Lines?
How much revenue will DSX generate from the Santa Barbara charter contract?
When does DSX's new charter contract for Santa Barbara commence?
What is the duration of DSX's new Santa Barbara charter contract?
How does the new charter rate compare to Santa Barbara's previous contract?
