Diana Shipping Inc. Announces Time Charter Contract for m/v Protefs

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) announced a time charter contract for one of its Panamax dry bulk vessels, the m/v Protefs, with Reachy International (HK) Co., Limited. The gross charter rate is set at US$10,650 per day, effective from February 8, 2021, until a minimum of March 10, 2022, up to a maximum of May 20, 2022. This contract is expected to generate approximately US$4.17 million in gross revenue for the minimum scheduled period. Following the upcoming sale of another vessel, the fleet will comprise 37 dry bulk vessels, totaling around 4.8 million dwt.

Positive

• New time charter contract for the m/v Protefs expected to generate approximately US$4.17 million in gross revenue.
• Increased charter rate to US$10,650 per day from previous US$9,900 per day.

Negative

• None.

ATHENS, Greece, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Reachy International (HK) Co., Limited, for one of its Panamax dry bulk vessels, the m/v Protefs. The gross charter rate is US$10,650 per day, minus a 5% commission paid to third parties, for a period until minimum March 10, 2022 up to maximum May 20, 2022. The charter commenced yesterday. The m/v Protefs was chartered, as previously announced, to Phaethon International Company AG, at a gross charter rate of US$9,900 per day, minus a 5% commission paid to third parties.

The “Protefs” is a 73,630 dwt Panamax dry bulk vessel built in 2004.

The employment of “Protefs” is anticipated to generate approximately US$4.17 million of gross revenue for the minimum scheduled period of the time charter.

Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Oceanis, Diana Shipping Inc.’s fleet will consist of 37 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 11 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Oceanis,  is approximately 4.8 million dwt with a weighted average age of 10.13 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 of dry bulk vessels. The Company’s vessels are employed primarily on medium to long-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 severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations, personnel, and on the demand for seaborne transportation of bulk products; 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, potential disruption of shipping routes due to accidents or political events, 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 gross charter rate for the m/v Protefs under the new contract?

The gross charter rate for the m/v Protefs is US$10,650 per day.

What is the duration of the charter for the m/v Protefs?

The charter period is from February 8, 2021, to at least March 10, 2022, potentially extending to May 20, 2022.

How much revenue is expected from the m/v Protefs charter?

Approximately US$4.17 million in gross revenue is expected for the minimum scheduled period.

What changes will occur in Diana Shipping's fleet after the sale of the m/v Oceanis?

After the sale of the m/v Oceanis, Diana Shipping's fleet will consist of 37 dry bulk vessels.