Diana Shipping Inc. Announces Direct Continuation of Time Charter Contract for m/v Los Angeles with NYK Line
Diana Shipping (NYSE: DSX) has extended the time charter contract for its Newscastlemax dry bulk vessel, m/v Los Angeles, with Nippon Yusen Kabushiki Kaisha. The new contract, commencing on July 18, 2024, offers a gross charter rate of $28,700 per day, minus a 5% commission, lasting until at least October 1, 2025, and at most December 15, 2025. The vessel is currently chartered at $17,700 per day. This extension is anticipated to generate around $12.43 million in gross revenue. Following the sale of m/v Houston, Diana Shipping's fleet will include 38 dry bulk vessels, with a combined carrying capacity of 4.4 million dwt and an average age of 10.92 years. Additionally, the company expects the delivery of two methanol dual-fuel Kamsarmax vessels by 2027 and 2028.
- The new charter contract for m/v Los Angeles increases the daily rate from $17,700 to $28,700.
- The new contract is expected to generate approximately $12.43 million in gross revenue.
- Diana Shipping's fleet will consist of 38 dry bulk vessels post-m/v Houston sale.
- The company plans to expand its fleet with two methanol dual-fuel Kamsarmax vessels by 2027-2028.
- A 5% commission on the new charter contract will reduce gross revenue.
Insights
Diana Shipping Inc.'s extension of the time charter contract for the m/v Los Angeles with Nippon Yusen Kabushiki Kaisha (NYK Line) is a significant move from a financial perspective. The new gross charter rate of
The higher charter rate is beneficial for Diana Shipping Inc., as it indicates improved market conditions and demand for dry bulk shipping services. This increase in daily rate, coupled with the extended charter period, enhances revenue predictability and stability, which can positively impact the company's earnings and ultimately its stock price. Investors should take note of this development as it reflects the company's ability to negotiate favorable terms and capitalize on market trends.
Moreover, given the company's plans to modernize its fleet with methanol dual fuel vessels, this additional revenue could support future investments and potentially lead to a more sustainable fleet and operational efficiency. Overall, this contract extension suggests a positive outlook for Diana Shipping Inc.'s financial health in the short to medium term.
The extension of the time charter contract for m/v Los Angeles offers insightful implications about the current state of the dry bulk shipping market. The significant increase in the charter rate to
For retail investors, this points to an overall healthy environment in the dry bulk shipping sector, which Diana Shipping Inc. is effectively capitalizing on. The long-term nature of this contract through late 2025 provides income stability and reduces exposure to spot market volatility, which is important for maintaining steady cash flows. Furthermore, the company's proactive approach in securing charter contracts at favorable rates demonstrates strong operational management and strategic foresight.
This contract, when viewed in the context of the company's fleet composition and future fleet modernization plans, highlights a balanced strategy focusing on revenue generation and fleet efficiency improvements. Such strategic moves can enhance investor confidence in the company's long-term growth prospects.
ATHENS, Greece, July 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 extended the time charter contract with Nippon Yusen Kabushiki Kaisha, Tokyo, for one of its Newcastlemax dry bulk vessels, the m/v Los Angeles. The gross charter rate is US
The “Los Angeles” is a 206,104 dwt Newcastlemax dry bulk vessel built in 2012.
The employment extension of “Los Angeles” is anticipated to generate approximately US
Upon completion of the previously announced sale of m/v Houston, Diana Shipping Inc.’s fleet will consist 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 including the m/v Houston and excluding the two vessels not yet delivered, is approximately 4.4 million dwt with a weighted average age of 10.92 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 Los Angeles?
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