Diana Shipping Inc. Announces Time Charter Contract for m/v DSI Pollux With Cargill Ocean Transportation
- None.
- None.
Insights
The time charter contract for Diana Shipping Inc.'s Ultramax dry bulk vessel with Cargill Ocean Transportation represents a significant commitment, securing a steady revenue stream of approximately US$8.32 million for the minimum duration. The daily gross charter rate of US$14,000, after accounting for the 4.75% commission, aligns with current market rates for dry bulk shipping, which can fluctuate based on global supply and demand dynamics.
Investors should note the impact of such contracts on the company's revenue predictability and cash flow stability. However, they should also consider the potential risks associated with the shipping industry, such as economic downturns or changes in trade patterns that could affect vessel utilization and rates.
Diana Shipping's expansion of its time charter portfolio with the inclusion of the m/v DSI Pollux reflects a strategic approach to capitalize on the dry bulk market. The company's diversified fleet of 40 vessels, with a combined carrying capacity of approximately 4.5 million dwt, positions it well within the industry. The average fleet age of 10.50 years suggests a balance between vessel modernity and depreciation costs.
Stakeholders should assess the company's fleet composition and age in relation to industry trends, such as environmental regulations and fuel efficiency standards, which could influence future capital expenditures and operational competitiveness.
The dry bulk shipping industry is closely tied to macroeconomic conditions, as it is a facilitator of global trade, particularly in commodities. Diana Shipping's new charter agreement may be indicative of the company's outlook on global economic growth and trade volumes for the coming years. The fixed revenue until at least August 2025 provides some insulation against potential economic headwinds.
However, broader economic factors such as changes in GDP growth, trade policies and commodity prices could significantly influence the profitability of the charter. These factors should be monitored to gauge the potential impact on Diana Shipping's financial performance.
ATHENS, Greece, Dec. 22, 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, today announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Cargill Ocean Transportation (Singapore) Pte. Ltd. for one of its Ultramax dry bulk vessels, the m/v DSI Pollux. The gross charter rate is US
The “DSI Pollux” is a 60,446 dwt Ultramax dry bulk vessel built in 2015.
The employment of “DSI Pollux” is anticipated to generate approximately US
Diana Shipping Inc.’s fleet currently consists of 40 dry bulk vessels: 4 Newcastlemax, 9 Capesize, 5 Post-Panamax, 6 Kamsarmax, 7 Panamax and 9 Ultramax. As of today, the combined carrying capacity of the Company’s fleet is approximately 4.5 million dwt with a weighted average age of 10.50 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 continuing impacts of the COVID-19 pandemic; 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 name and ticker symbol of the company mentioned in the press release about the time charter contract with Cargill Ocean Transportation?
What is the gross charter rate for the time charter contract?
What is the expected gross revenue from the charter for the minimum scheduled period?
How many dry bulk vessels are currently in the company's fleet?
What is the combined carrying capacity of the company's fleet?
