Diana Shipping Inc. Announces Time Charter Contract for m/v DSI Pyxis With Stone Shipping

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has secured a time charter contract with Stone Shipping for its Ultramax vessel, m/v DSI Pyxis. The charter rate is set at $13,100 per day (minus 5% commission) from November 2024 until minimum February 20, 2026, potentially extending to April 20, 2026. The contract is expected to generate approximately $6.05 million in gross revenue for the minimum period.

The company's fleet comprises 38 dry bulk vessels with a total capacity of 4.2 million dwt and an average age of 11.11 years. Additionally, two methanol dual fuel Kamsarmax vessels are expected for delivery by 2H 2027 and 1H 2028.

Positive

• Secured new time charter contract generating $6.05M minimum gross revenue
• Fleet expansion with two methanol dual fuel vessels scheduled for delivery
• Large diversified fleet of 38 vessels with 4.2M dwt total capacity

Negative

• 5% commission reduction on charter rate affects net revenue

Insights

Shipping Industry Analyst

This time charter contract represents a strategic move in the current dry bulk market conditions. The $13,100 per day rate for the DSI Pyxis reflects current market dynamics, securing steady revenue through early 2026. The minimum guaranteed revenue of $6.05 million provides stable cash flow visibility for nearly 15 months.

The contract timing is notable as it locks in rates during a period of market uncertainty. Diana Shipping's fleet modernization strategy, including upcoming methanol dual-fuel vessels, shows forward-thinking adaptation to environmental regulations. The company's diverse fleet composition across various vessel sizes provides operational flexibility and risk diversification.

The 5% commission is standard for the industry and the contract duration offers a good balance between securing medium-term income and maintaining flexibility for potential market improvements in 2026.

ATHENS, Greece, Nov. 08, 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 Stone Shipping Ltd, for one of its Ultramax dry bulk vessels, the m/v DSI Pyxis. The gross charter rate is US$13,100 per day, minus a 5.00% commission paid to third parties, for a period until minimum February 20, 2026 up to maximum April 20, 2026. The charter is expected to commence later today.

The “DSI Pyxis” is a 60,362 dwt Ultramax dry bulk vessel built in 2018.

The employment of “DSI Pyxis” is anticipated to generate approximately US$6.05 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 11.11 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 m/v DSI Pyxis vessel?

The charter rate for DSX's m/v DSI Pyxis is $13,100 per day, minus a 5% commission paid to third parties.

How long is the charter contract period for DSX's DSI Pyxis?

The charter contract runs from November 2024 until minimum February 20, 2026, with possible extension until April 20, 2026.

What is the expected gross revenue from DSX's DSI Pyxis charter?

The DSI Pyxis charter is expected to generate approximately $6.05 million in gross revenue for the minimum scheduled period.

How many vessels are in Diana Shipping's (DSX) current fleet?

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