Diana Shipping Inc. Announces Direct Continuation of Time Charter Contract for M/V Semirio with Solebay and for M/V DSI Aquila with Western Bulk

Rhea-AI Summary

Diana Shipping (NYSE: DSX) has announced two time charter contract extensions for its vessels. The Capesize vessel m/v Semirio (174,261 dwt) has been extended with Solebay Shipping at a gross rate of $16,650/day (up from $14,150/day), running from February 4, 2025, until minimum February 15, 2026. The m/v DSI Aquila Ultramax vessel (60,309 dwt) extends with Western Bulk Carriers at $12,250/day (slightly down from $12,500/day) for 5-7 months from January 23, 2025.

These extensions are expected to generate approximately $7.52 million in gross revenue for the minimum scheduled period. The company's fleet consists of 38 dry bulk vessels with a combined capacity of 4.2 million dwt and an average age of 11.29 years. Additionally, Diana Shipping expects delivery of two methanol dual fuel Kamsarmax vessels by 2027-2028.

Positive

• Charter rate increase for m/v Semirio from $14,150 to $16,650 per day
• Secured minimum revenue of $7.52 million from both charter extensions
• Fleet expansion with two methanol dual fuel vessels expected by 2027-2028

Negative

• Slight decrease in charter rate for m/v DSI Aquila from $12,500 to $12,250 per day

Insights

Maritime Financial Analyst

The charter extensions for the Semirio and DSI Aquila vessels represent strategic moves in the current dry bulk market environment. The Semirio's new rate of $16,650 per day marks a 17.7% improvement over its previous rate, indicating strengthening conditions in the Capesize segment. This upward adjustment aligns with recent market trends and suggests positive momentum in bulk shipping rates.

The secured minimum revenue of $7.52 million adds predictable cash flow stability through early 2026. While the DSI Aquila's slight rate decrease to $12,250 per day reflects some softness in the Ultramax segment, the overall contract extensions demonstrate Diana Shipping's ability to maintain steady fleet utilization and secure medium-term coverage. The 5-7 month charter period for DSI Aquila provides flexibility to potentially capitalize on rate improvements later in 2025.

The company's fleet modernization efforts, including the upcoming delivery of two methanol dual-fuel vessels, positions DSI well for future environmental regulations while maintaining a diverse vessel portfolio across key bulk carrier segments.

Shipping Market Strategist

These charter extensions reveal Diana Shipping's tactical approach to market positioning. By securing the Capesize vessel Semirio at improved rates while accepting a marginal decrease for the Ultramax DSI Aquila, the company demonstrates selective commercial management across vessel classes. The timing of these extensions suggests management's balanced view on near-term market prospects, locking in profitable rates while maintaining operational flexibility.

The weighted average fleet age of 11.29 years remains competitive and the planned addition of methanol-capable vessels indicates forward-thinking fleet renewal strategy. For investors, these charter extensions provide earnings visibility while the rate improvements on the larger vessel class support positive cash flow projections. The careful duration management - longer for the Capesize and shorter for the Ultramax - allows for strategic redeployment as market conditions evolve.

ATHENS, Greece, Jan. 14, 2025 (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 Solebay Shipping Cape Company Limited, Hong Kong, for one of its Capesize dry bulk vessels, the m/v Semirio. The gross charter rate is US$16,650 minus a 5% commission paid to third parties, for a period until minimum February 15, 2026 up to maximum April 15, 2026. The new charter period is expected to commence on February 4, 2025. The m/v Semirio is currently chartered, as previously announced, at a gross charter rate of US$14,150 per day, minus a 5.00% commission paid to third parties.

The “Semirio” is a 174,261 dwt Capesize dry bulk vessel built in 2007.

The Company also announced that, through a separate wholly-owned subsidiary, it has extended the time charter contract with Western Bulk Carriers AS, for one of its Ultramax dry bulk vessels, the m/v DSI Aquila. The gross charter rate is US$12,250 per day, minus a 5% commission paid to third parties, for a period of minimum five (5) months to about seven (7) months. The new charter period is expected to commence on January 23, 2025. The m/v DSI Aquila is currently chartered, as previously announced, at a gross charter rate of US$12,500 per day, minus a 5.00% commission paid to third parties.

The “DSI Aquila” is a 60,309 dwt Ultramax dry bulk vessel built in 2015.

The employment extensions of “Semirio” and “DSI Aquila” are anticipated to generate a total of approximately US$7.52 million of gross revenue for the minimum scheduled period of the time charters.

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 11.29 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 Semirio vessel with Solebay Shipping?

The new gross charter rate for m/v Semirio is $16,650 per day, minus a 5% commission paid to third parties.

How much revenue will DSX generate from the Semirio and DSI Aquila charter extensions?

The charter extensions are expected to generate approximately $7.52 million in gross revenue for the minimum scheduled period.

When will DSX take delivery of its new methanol dual fuel vessels?

Diana Shipping 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 current size and average age of DSX's fleet?

Diana Shipping's fleet consists of 38 dry bulk vessels with a combined carrying capacity of 4.2 million dwt and a weighted average age of 11.29 years.

What is the duration of DSX's new charter contract for DSI Aquila?

The new charter contract for DSI Aquila is for a period of minimum five months to about seven months, starting January 23, 2025.