Diana Shipping Inc. Announces Time Charter Contract for m/v Polymnia With Reachy
Diana Shipping (NYSE: DSX) has entered a time charter contract with Reachy Shipping for its Post-Panamax vessel, m/v Polymnia. Starting June 8, 2024, the vessel will earn $17,500 per day, minus a 5% commission, until at least August 1, 2025, potentially extending to September 30, 2025. This charter will generate around $7.25 million in gross revenue for the minimum period. Currently, Polymnia is chartered to Cobelfret at $15,000 per day. Diana Shipping's fleet will include 38 vessels after selling m/v Houston, with two new methanol dual-fuel Kamsarmax ships expected by 2028. The fleet's carrying capacity is approximately 4.4 million dwt with an average age of 10.84 years.
- New time charter contract at $17,500/day, up from $15,000/day.
- Potential gross revenue of $7.25 million for the minimum period.
- Fleet expansion with two new methanol dual-fuel Kamsarmax vessels by 2028.
- Post-sale fleet capacity of approximately 4.4 million dwt.
- Diverse fleet composition with 38 vessels of various sizes.
- 5% commission reduces the gross charter rate.
- New revenue stream dependent on successful charter commencement.
- Long wait for new vessel deliveries, with the first expected in 2027.
Insights
The announcement of the new time charter contract for the m/v Polymnia signifies an important business move for Diana Shipping Inc. The renegotiation of the charter rate to
The new charter is set to generate approximately
The timing of this announcement, coupled with the planned fleet expansion with two methanol dual fuel vessels by 2027-2028, indicates strategic long-term planning. However, investors should also consider the potential risks associated with fleet expansion and market volatility in the shipping industry.
Overall, the increase in charter rates and the projected revenue boost is likely a positive signal for the company’s financial health.
This charter contract aligns with broader industry trends in the dry bulk shipping market. Increasing charter rates reflect a tightening market, which often corresponds to increased demand for shipping capacity. The m/v Polymnia's new charter rate of
Moreover, the projected future growth of the fleet with dual fuel methanol vessels signals the company's commitment to sustainability and adapting to new environmental regulations. This could enhance its competitive edge and attract environmentally conscious investors.
However, the shipping market is inherently cyclical and subject to factors such as global trade volumes, geopolitical developments and fuel price fluctuations. Retail investors should be mindful of these risks despite the favorable current contract terms.
This strategic contract positions Diana Shipping to potentially capitalize on strong market conditions, but ongoing vigilance regarding market dynamics is advised.
ATHENS, Greece, June 04, 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 Reachy Shipping (SGP) Pte. Ltd., for one of its Post-Panamax dry bulk vessels, the m/v Polymnia. The gross charter rate is US
The “Polymnia” is a 98,704 dwt Post-Panamax dry bulk vessel built in 2012.
The employment of “Polymnia” 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 10.84 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 new charter rate for DSX's m/v Polymnia?
When will the new time charter for m/v Polymnia commence?
What is the expected gross revenue from the new charter of m/v Polymnia?
How many vessels will Diana Shipping have after selling m/v Houston?
What is the carrying capacity of Diana Shipping's fleet?
When is Diana Shipping expected to receive new vessels?
