Diana Shipping Inc. Announces Time Charter Contract for m/v Atalandi With Cargill
Diana Shipping announced a time charter contract with Cargill International for its Ice Class Panamax vessel, m/v Atalandi. The contract, starting on July 19, 2024, offers a gross charter rate of $14,600 per day, after a 4.75% commission, until as early as June 1, 2025, and no later than July 31, 2025. This deal is expected to generate around $4.57 million in gross revenue. The Atalandi, built in 2014, has a 77,529 dwt capacity. Following the sale of m/v Houston, Diana Shipping will have a fleet of 38 dry bulk vessels. Additionally, the company plans to add two methanol dual fuel Kamsarmax ships by 2027-2028. The current fleet, excluding the new additions, has a total capacity of approximately 4.4 million dwt, with an average age of 10.94 years.
- The time charter contract for m/v Atalandi with Cargill is expected to generate approximately $4.57 million in gross revenue.
- The contract offers a gross charter rate of $14,600 per day.
- Diana Shipping's fleet will consist of 38 dry bulk vessels after the sale of m/v Houston.
- Two new methanol dual fuel Kamsarmax vessels are expected to join the fleet by 2027-2028.
- None.
Insights
Diana Shipping Inc.'s new time charter contract with Cargill International S.A. for the m/v Atalandi represents a stable revenue stream for the company. At a
Considering the charter rate: there's a notable stability for Diana Shipping in securing contracts with reputable counterparts like Cargill. This rate is relatively favorable given current market conditions in the dry bulk shipping industry. It's also essential to note that this charter provides a predictable income stream, which can be important for managing operating expenses and debt servicing.
In the context of fleet management, the planned addition of two methanol dual fuel new-building Kamsarmax vessels indicates a forward-looking approach to environmental regulations and sustainability. However, these vessels won't contribute to the fleet until 2027 and 2028, suggesting that any financial benefits from these additions are long-term. Investors should watch how effectively the company manages its current fleet and the market's fluctuation in the interim.
Investors should also note that the sale of m/v Houston indicates Diana Shipping's strategy to optimize its fleet composition, potentially improving operational efficiency or capitalizing on favorable market conditions.
The dry bulk shipping market has been notably volatile, but Diana Shipping's strategy to enter a time charter contract with a significant player like Cargill International S.A. is a strong move. The gross revenue of
The employment of an Ice Class Panamax vessel is also worth noting. Ice Class vessels are specialized for icy conditions, indicating their importance in certain trade routes. This specialization can command a premium in specific markets, potentially offering higher profitability margins during the contract period.
The overall fleet composition and carrying capacity of approximately 4.4 million dwt demonstrate Diana Shipping's significant market presence. This large and diverse fleet allows the company to adapt to various market demands and optimize operations accordingly. The weighted average fleet age of 10.94 years is relatively young, suggesting lower maintenance costs and higher operational efficiency, which are favorable for long-term profitability.
However, the reliance on dry bulk shipping exposes the company to cyclical freight rate fluctuations and demand-supply imbalances. Seasonal demand changes and global economic conditions can impact the revenue streams and profitability, making it important for investors to monitor market trends and Diana's adaptability to these changes.
ATHENS, Greece, July 11, 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 Cargill International S.A., Geneva, for one of its Ice Class Panamax dry bulk vessels, the m/v Atalandi. The gross charter rate is US
The “Atalandi” is a 77,529 dwt Ice Class Panamax dry bulk vessel built in 2014.
The employment of “Atalandi” 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 10.94 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 time charter contract announced by Diana Shipping (DSX)?
When does the new time charter contract for m/v Atalandi commence?
What is the gross charter rate for Diana Shipping's m/v Atalandi under the new contract?
How much gross revenue is the new charter for m/v Atalandi expected to generate for Diana Shipping (DSX)?
What is the duration of the new charter contract for m/v Atalandi?
How many vessels will Diana Shipping (DSX) have after selling m/v Houston?
What is the combined carrying capacity of Diana Shipping's (DSX) fleet?
What is the average age of Diana Shipping's (DSX) fleet?
When will Diana Shipping (DSX) take delivery of the new methanol dual fuel Kamsarmax vessels?
