Diana Shipping Inc. Announces the Sale of a Panamax Dry Bulk Vessel, the m/v Melia

Rhea-AI Summary

On February 1, 2023, Diana Shipping Inc. (NYSE: DSX) announced it has sold the m/v Melia, a 2005-built Panamax dry bulk vessel, to OceanPal Inc. for US$14 million. An initial payment of US$4 million was made at the agreement's signing, with the remainder to be paid in shares of OceanPal’s Series D Preferred Stock upon delivery, expected by the end of February. The sale follows an exercised right of first refusal based on a November 2021 agreement. Post-sale, Diana Shipping's fleet will consist of 41 vessels with a total capacity of approximately 4.9 million dwt and a weighted average age of 10.27 years.

Positive

• The sale price of US$14 million reflects independent vessel valuations.
• The transaction strengthens the company's relationship with OceanPal Inc.
• Diana Shipping's fleet will remain at 41 vessels, ensuring operational stability.

Negative

• None.

ATHENS, Greece, Feb. 01, 2023 (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, announced that it has signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to sell one of its dry bulk vessels, the m/v Melia, to OceanPal Inc., a related party. The aggregate sale price of the vessel is US$14.0 million. Of the sale price, US$4.0 million was paid upon signing of the Memorandum of Agreement and the remaining amount will be paid upon the delivery of the vessel in the form of shares of the OceanPal Inc.’s Series D Preferred Stock, the terms of which are set forth in the statement of designation of the Series D Preferred Stock. The aggregate sale price was agreed upon based on the average of two independent shipbroker vessel valuations, taking into account the share-based component of the consideration.

The m/v Melia is a 2005-built Panamax dry bulk vessel with a carrying capacity of 76,225 dwt. Delivery to the buyer is expected to occur by the end of February 2023. The sale and purchase of the vessel was made pursuant to OceanPal Inc.’s exercise of a right of first refusal granted by the Company on six identified vessels (including the m/v Melia) based on an agreement dated November 8, 2021. The sale of the m/v Melia to OceanPal Inc. was approved by a committee of independent members of the Company’s Board of Directors.

Upon completion of the previously announced sale of m/v Aliki and the aforementioned sale, Diana Shipping Inc.’s fleet will consist of 41 dry bulk vessels (4 Newcastlemax, 10 Capesize, 5 Post-Panamax, 6 Kamsarmax, 7 Panamax and 9 Ultramax). As of today, the combined carrying capacity of our fleet, including the m/v Melia and the m/v Aliki, is approximately 4.9 million dwt with a weighted average age of 10.27 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 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, 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, 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 vessel did Diana Shipping sell in February 2023?

Diana Shipping sold the m/v Melia, a Panamax dry bulk vessel.

What was the sale price for the m/v Melia?

The m/v Melia was sold for US$14 million.

When is the delivery date for the m/v Melia?

The delivery of the m/v Melia is expected by the end of February 2023.

What is the significance of the sale to OceanPal Inc.?

The sale reflects a right of first refusal granted in a previous agreement and strengthens ties with a related party.

How many vessels will Diana Shipping have after this sale?

After the sale, Diana Shipping will have a fleet of 41 vessels.