Diana Shipping Inc. Announces Time Charter Contract for m/v Myrsini With Cobelfret S.A.
Diana Shipping announced a time charter contract for its Kamsarmax dry bulk vessel, m/v Myrsini, with Cobelfret S.A. The charter rate is $17,100 per day, minus 5% commission, from June 25, 2024, to a period between February 1 and March 25, 2025. The current charter rate is $15,000 per day. This new contract will generate approximately $3.71 million in revenue. Diana Shipping's fleet will consist of 38 vessels after the sale of m/v Houston. The company plans to add two methanol dual fuel Kamsarmax vessels by 2028, bringing the total carrying capacity to about 4.4 million dwt with an average age of 10.86 years.
- New charter rate for m/v Myrsini: $17,100 per day, a significant increase from current $15,000 per day.
- The new charter contract will generate approximately $3.71 million in revenue for the minimum period.
- Fleet expansion includes two methanol dual fuel Kamsarmax dry bulk vessels by 2028.
- Diana Shipping's fleet will consist of 38 vessels, enhancing operational capabilities.
- The new charter contract includes a 5% commission, reducing net revenue.
- The average age of the fleet is relatively high at 10.86 years, potentially increasing maintenance costs.
Insights
The new time charter contract at a rate of
Diana Shipping’s decision to charter the m/v Myrsini at a higher rate reflects favorable market conditions for dry bulk shipping. This upward adjustment in charter rates suggests a robust demand for such vessels, potentially hinting at higher profitability margins for the company in the short term.
One should consider the average age of Diana Shipping’s fleet, which stands at 10.86 years. This is a moderately aged fleet, implying potential higher maintenance costs and the need for eventual fleet renewal. However, the ongoing plans to acquire new methanol dual fuel Kamsarmax vessels by 2027-2028 showcase the company's commitment to fleet modernization and sustainability initiatives, which could favorably impact long-term profitability.
Retail investors may find this development encouraging as it indicates immediate revenue growth and a strategic move towards future fleet enhancement.
The current contract with Cobelfret S.A. suggests that Diana Shipping Inc. is effectively capitalizing on market conditions with a robust demand for Kamsarmax vessels. The increase to
Furthermore, the company's fleet composition is diverse, including different vessel types such as Newcastlemax, Capesize and Ultramax, which lowers the risk associated with fluctuating market conditions specific to any single vessel type. This diversification is a critical risk mitigation strategy, especially in the unpredictable dry bulk market.
With an anticipated gross revenue of
Retail investors can view this news as a strong indicator of Diana Shipping Inc.’s ability to navigate market cycles and adapt to future industry trends.
ATHENS, Greece, June 14, 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 Cobelfret S.A., Luxembourg, for one of its Kamsarmax dry bulk vessels, the m/v Myrsini. The gross charter rate is US
The “Myrsini” is a 82,117 dwt Kamsarmax dry bulk vessel built in 2010.
The employment of “Myrsini” 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 10.86 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
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