Diana Shipping Inc. Announces Time Charter Contract for m/v Maera

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has secured a new time charter contract through its subsidiary with China Resource Chartering for its Panamax vessel, m/v Maera. The contract specifies a gross charter rate of $8,400 per day (minus 5% commission) from December 15, 2024, until minimum September 20, 2025, with possible extension to November 20, 2025. The charter is expected to generate approximately $2.31 million in gross revenue for the minimum period.

The Maera is a 75,403 dwt Kamsarmax vessel built in 2013. DSX's current fleet comprises 38 dry bulk vessels with a combined capacity of 4.2 million dwt and an average age of 11.21 years. The company anticipates delivery of two methanol dual fuel Kamsarmax vessels by 2027-2028.

Positive

• Secured new time charter contract generating $2.31M minimum gross revenue
• Fleet expansion with two methanol dual fuel vessels scheduled for 2027-2028 delivery

Negative

• Charter rate of $8,400/day represents relatively low market rates
• Fleet's weighted average age of 11.21 years indicates aging assets

Insights

Shipping Industry Analyst

The time charter contract for m/v Maera at $8,400 per day reflects challenging market conditions in the Panamax segment. This rate is notably below historical averages, indicating continued pressure on dry bulk charter rates. The $2.31 million minimum gross revenue provides stable cash flow through late 2025, though at compressed margins. The contract's timing coincides with seasonal weakness in dry bulk markets, particularly affecting Panamax vessels. Diana Shipping's fleet diversification across vessel classes provides some buffer against segment-specific downturns, while the upcoming delivery of two methanol dual-fuel vessels shows forward-thinking adaptation to environmental regulations. However, the current charter rate suggests near-term upside for revenue optimization.

Financial Analyst

The new charter contract's 5% third-party commission and relatively low daily rate will impact Diana Shipping's profit margins. With a market cap of $232.2 million, this single vessel's contribution represents a small portion of potential revenue. The company's strategy of securing longer-term charters provides earnings visibility but locks in rates during a weak market period. The fleet's average age of 11.21 years suggests potential maintenance costs ahead, though the planned addition of modern methanol-capable vessels demonstrates investment in future efficiency. The current 4.2 million dwt capacity positions DSX as a mid-sized player in the dry bulk sector, with sufficient scale for operational leverage when market conditions improve.

ATHENS, Greece, Dec. 16, 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 China Resource Chartering Limited, for one of its Panamax dry bulk vessels, the m/v Maera. The gross charter rate is US$8,400 per day, minus a 5.00% commission paid to third parties, for a period until minimum September 20, 2025 up to maximum November 20, 2025. The charter commenced on December 15, 2024.

The “Maera” is a 75,403 dwt Kamsarmax dry bulk vessel built in 2013.

The employment of “Maera” is anticipated to generate approximately US$2.31 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 11.21 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 DSX's m/v Maera vessel in the new contract?

The gross charter rate for m/v Maera is US$8,400 per day, minus a 5.00% commission paid to third parties.

How much revenue will DSX generate from the Maera charter contract?

The charter is anticipated to generate approximately US$2.31 million of gross revenue for the minimum scheduled period.

What is the current size of Diana Shipping's fleet as of December 2024?

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

When will DSX receive its new methanol dual fuel vessels?

DSX expects to take delivery of two methanol dual fuel Kamsarmax vessels by the second half of 2027 and the first half of 2028.

What is the duration of DSX's new charter contract for m/v Maera?

The charter period runs from December 15, 2024, until minimum September 20, 2025, with possible extension to November 20, 2025.