Diana Shipping Inc. Announces Time Charter Contract for m/v DSI Aquarius With Bunge

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has secured a time charter contract with Bunge SA, Geneva for its Ultramax dry bulk vessel, the m/v DSI Aquarius. The contract specifies a gross charter rate of $13,300 per day, with a 5% third-party commission, for a period of 10-12 months starting December 6, 2024. The vessel is expected to generate approximately $3.99 million in gross revenue for the minimum charter period. The company's fleet comprises 38 dry bulk vessels with a combined capacity of 4.2 million dwt and awaits delivery of two methanol dual fuel Kamsarmax vessels by 2027-2028.

Positive

• Secured new time charter contract generating $3.99 million minimum gross revenue
• Fleet expansion with two methanol dual fuel vessels scheduled for delivery 2027-2028
• Substantial fleet of 38 vessels with 4.2 million dwt total capacity

Negative

• 5% commission reduces effective charter rate

Insights

Shipping Industry Analyst

This time charter contract with Bunge represents a solid business development for Diana Shipping. The $13,300 per day rate for the DSI Aquarius is reasonable in the current market conditions, securing stable income for 10-12 months. The deal will generate minimum gross revenue of $3.99 million, providing predictable cash flow.

Diana Shipping's fleet diversification across various vessel sizes (from Ultramax to Newcastlemax) helps mitigate market risks. The upcoming addition of two methanol dual-fuel Kamsarmax vessels shows forward-thinking investment in environmentally compliant tonnage. With a fleet of 38 vessels and 4.2 million dwt capacity, Diana maintains a strong market position in the dry bulk sector.

ATHENS, Greece, Dec. 02, 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 Bunge SA, Geneva, for one of its Ultramax dry bulk vessels, the m/v DSI Aquarius. The gross charter rate is US$13,300 per day, minus a 5.00% commission paid to third parties, for a period of minimum ten (10) months to about twelve (12) months. The charter is expected to commence on December 6, 2024.

The “DSI Aquarius” is a 60,309 dwt Ultramax dry bulk vessel built in 2016.

The employment of “DSI Aquarius” is anticipated to generate approximately US$3.99 million of gross revenue for the minimum scheduled period of the time charter.

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 11.17 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 charter rate for DSX's vessel DSI Aquarius in the new contract?

The gross charter rate for DSI Aquarius is $13,300 per day, minus a 5% commission paid to third parties.

When does Diana Shipping's (DSX) new charter contract for DSI Aquarius begin?

The charter contract is expected to commence on December 6, 2024.

How much revenue will DSX generate from the DSI Aquarius charter contract?

The charter is anticipated to generate approximately $3.99 million in gross revenue for the minimum scheduled period.

What is the current fleet size of Diana Shipping (DSX)?

Diana Shipping's fleet consists of 38 dry bulk vessels with a combined carrying capacity of approximately 4.2 million dwt.