Diana Shipping Inc. Announces Delivery of the Kamsarmax Dry Bulk Vessel m/v Leonidas P. C. and Time Charter Contract for m/v Seattle With Solebay

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in dry bulk vessels, announced the delivery of the m/v Leonidas P. C., a Kamsarmax vessel. The company has chartered the ship to Cargill International S.A. at a daily rate of $24,500 starting February 18, 2022. Additionally, Diana Shipping entered a time charter with Solebay Shipping for the m/v Seattle at $26,500 per day, commencing February 23, 2022. These employments are expected to generate approximately $24.41 million in gross revenue during the minimum charter period. The fleet now consists of 34 dry bulk vessels.

Positive

• Delivery of m/v Leonidas P. C. enhances fleet capacity.
• Charter agreements expected to generate approximately $24.41 million in gross revenue.

Negative

• Current charter rates for m/v Seattle significantly lower than new contract rates ($12,300 vs. $26,500), indicating potential revenue loss during transition.

ATHENS, Greece, Feb. 16, 2022 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today announced that, through a separate wholly-owned subsidiary, it has taken delivery of the m/v Leonidas P. C. (formerly “Magnolia”), a 2011 built Kamsarmax dry bulk vessel of 82,165 dwt that the Company entered into an agreement to purchase in July 2021.

As previously announced, the m/v Leonidas P. C. is time chartered to Cargill International S.A., Geneva, at a gross charter rate of US$24,500 per day, minus a 4.75% commission paid to third parties, for a period until minimum March 1, 2023 up to maximum April 30, 2023. The charter is expected to commence on February 18, 2022.

The Company also announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Solebay Shipping Cape Company Limited, Hong Kong, for one of its Capesize dry bulk vessels, the m/v Seattle. The gross charter rate is US$26,500 per day, minus a 5% commission paid to third parties, for a period until minimum October 1, 2023 up to maximum December 15, 2023. The charter is expected to commence on February 23, 2022. The m/v Seattle is currently chartered, as previously announced, to Pacbulk Shipping Pte. Ltd., Singapore, at a gross charter rate of US$12,300 per day, minus a 5% commission paid to third parties.

The “Seattle” is a 179,362 dwt Capesize dry bulk vessel built in 2011.

The employments of “Leonidas P. C.” and “Seattle” are anticipated to generate approximately US$24.41 million of gross revenue for the minimum scheduled period of the time charters.

Including the newly delivered m/v Leonidas P. C., Diana Shipping Inc.’s fleet currently consists of 34 dry bulk vessels (4 Newcastlemax, 11 Capesize, 5 Post-Panamax, 6 Kamsarmax and 8 Panamax). The Company also expects to take delivery of one new-building Capesize dry bulk vessel by the end of the first quarter of 2022. As of today, the combined carrying capacity of our fleet, excluding the one vessel not yet delivered, is approximately 4.4 million dwt with a weighted average age of 10.48 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 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 severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations, personnel, and on the demand for seaborne transportation of bulk products; 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, potential disruption of shipping routes due to accidents or political events, 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 m/v Leonidas P. C.?

The m/v Leonidas P. C. is time chartered at a gross rate of $24,500 per day.

When does the charter for m/v Seattle start?

The charter for m/v Seattle is expected to commence on February 23, 2022.

What is the total expected revenue from new charters announced by Diana Shipping?

The total expected revenue from the new charters is approximately $24.41 million for the minimum scheduled period.

How many vessels does Diana Shipping have in its fleet?

Diana Shipping currently has 34 dry bulk vessels in its fleet.

What type of vessel is m/v Leonidas P. C.?

The m/v Leonidas P. C. is a Kamsarmax dry bulk vessel with a deadweight tonnage of 82,165.