Diana Shipping Inc. Announces Time Charter Contract for m/v Philadelphia With Classic Maritime

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has entered a time charter contract with Classic Maritime Inc. for its Newcastlemax vessel, the m/v Philadelphia, at a gross rate of US$28,500 per day. The charter, effective immediately, lasts until at least March 1, 2022, generating an estimated gross revenue of approximately US$8.81 million. This marks the highest charter rate for the vessel since its delivery in 2012. Following the upcoming sale of another vessel, the company will operate a fleet of 36 vessels with a combined capacity of 4.7 million dwt.

Positive

• New time charter contract secured at US$28,500 per day, higher than previous rate.
• Estimated gross revenue from the charter is approximately US$8.81 million.
• The m/v Philadelphia achieves its highest charter rate since delivery in 2012.
• Diana Shipping's fleet will consist of 36 vessels, enhancing operational capacity.

Negative

• None.

ATHENS, Greece, April 22, 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 Classic Maritime Inc., for one of its Newcastlemax dry bulk vessels, the m/v Philadelphia. The gross charter rate is US$28,500 per day, minus a 5% commission paid to third parties, for a period until minimum March 1, 2022 up to maximum May 1, 2022. The charter commenced earlier today. The m/v Philadelphia was chartered, as previously announced, to BHP Billiton Freight Singapore Pte. Ltd., at a gross charter rate of US$14,500 per day, minus a 5% commission paid to third parties.

The “Philadelphia” is a 206,040 dwt Newcastlemax dry bulk vessel built in 2012.

The employment of “Philadelphia” is anticipated to generate approximately US$8.81 million of gross revenue for the minimum scheduled period of the time charter.

Commenting on this charter, the Company’s Chief Executive Officer, Ms. Semiramis Paliou, stated:

“We are pleased to announce the specific time charter fixture, which is in line with our chartering strategy over the years. We find it especially noteworthy that the m/v Philadelphia has been fixed at the highest rate since the vessel was delivered to us in 2012, a reflection of the robust current dry bulk market.”

Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Naias, Diana Shipping Inc.’s fleet will consist of 36 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 10 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Naias,  is approximately 4.7 million dwt with a weighted average age of 10.17 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 charter rate for the m/v Philadelphia by Diana Shipping?

The charter rate for the m/v Philadelphia is US$28,500 per day.

When does the time charter for the m/v Philadelphia start?

The time charter for the m/v Philadelphia commenced on April 22, 2021.

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

The expected gross revenue from the charter is approximately US$8.81 million.

What is the fleet size of Diana Shipping after the m/v Naias sale?

After the sale of the m/v Naias, Diana Shipping will operate a fleet of 36 vessels.