Diana Shipping Inc. Announces Time Charter Contract for m/v Leonidas P. C. With Ming Wah
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Insights
The recent charter agreement between Diana Shipping Inc. and Ming Wah International Shipping Company Limited involves a Kamsarmax dry bulk vessel, the m/v Leonidas P. C. and represents a significant commitment from both parties. The gross charter rate of US$17,000 per day, with a 5% third-party commission deduction, is a competitive rate within the current market, which has been affected by fluctuating demand for dry bulk commodities and the global shipping market's volatility.
In the context of the broader maritime industry, securing a time charter contract until at least August 2025 provides Diana Shipping with a stable revenue stream, which is particularly valuable in an industry known for its cyclical nature and susceptibility to market fluctuations. The anticipated gross revenue of approximately US$9.18 million for the minimum scheduled period is a substantial figure that will contribute positively to the company's financial health.
Furthermore, the reduction of Diana Shipping's fleet to 39 dry bulk vessels upon the sale of m/v Artemis and the associated combined carrying capacity of approximately 4.5 million dwt, reflects a strategic fleet size management. This could be seen as an adjustment to market conditions or a realignment of the company's asset portfolio.
From a financial perspective, the time charter contract's impact on Diana Shipping Inc.'s stock could be viewed positively by investors, as it secures predictable cash flow and may improve the company's earnings visibility. The announcement could potentially lead to a more favorable view of the company's risk profile, as it mitigates the risk associated with spot market volatility.
The weighted average age of the fleet at 10.64 years is an important metric, as it indicates the company's fleet is relatively modern, which can lead to operational efficiencies and reduced maintenance costs compared to older vessels. This can be an attractive point for investors, as younger fleets are often more competitive and can command higher charter rates.
Investors will also be monitoring the utilization rate of Diana Shipping's fleet, as higher utilization rates are typically associated with higher revenues. The company's ability to secure long-term charters in a dynamic market environment may be seen as a testament to its operational capabilities and the strength of its customer relationships.
ATHENS, Greece, Feb. 09, 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 Ming Wah International Shipping Company Limited, for one of its Kamsarmax dry bulk vessels, the m/v Leonidas P. C. The gross charter rate is US
The “Leonidas P. C.” is a 82,165 dwt Kamsarmax dry bulk vessel built in 2011.
The employment of “Leonidas P. C.” is anticipated to generate approximately US
Upon completion of the previously announced sale of m/v Artemis, Diana Shipping Inc.’s fleet will consist of 39 dry bulk vessels: 4 Newcastlemax, 9 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax and 9 Ultramax. As of today, the combined carrying capacity of the Company’s fleet including the m/v Artemis, is approximately 4.5 million dwt with a weighted average age of 10.64 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 type of vessels does Diana Shipping Inc. specialize in?
What is the gross charter rate for the time charter contract with Ming Wah International Shipping Company Limited?
When is the charter expected to commence?
How much gross revenue is anticipated to be generated from the employment of the m/v Leonidas P. C.?
How many dry bulk vessels will Diana Shipping Inc.'s fleet consist of after the sale of m/v Artemis?
What is the combined carrying capacity of Diana Shipping Inc.'s fleet including the m/v Artemis?
