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Diana Shipping secures new charter at higher rate

EditorNatashya Angelica
Published 06/04/2024, 01:45 PM
DSX
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ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company specializing in the ownership of dry bulk vessels, announced a new time charter contract for its Post-Panamax vessel, the m/v Polymnia. The charter agreement with Reachy Shipping (SGP) Pte. Ltd. commences on June 8, 2024, and is set at a daily rate of $17,500, with a 5.00% commission deducted for third parties.

The contract period extends from a minimum of August 1, 2025, to a maximum of September 30, 2025. This deal represents an increase from the current charter rate of $15,000 per day, under the same commission terms, with Cobelfret S.A., Luxemburg.

The m/v Polymnia is a 98,704 dwt Post-Panamax dry bulk vessel, constructed in 2012. This new charter is expected to generate approximately $7.25 million in gross revenue for the minimum scheduled period.

Following the sale of the m/v Houston, Diana Shipping's fleet will consist of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax ships. Moreover, the company anticipates the 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.

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.

Diana Shipping Inc. provides transportation services through its fleet, primarily on short to medium-term time charters. The company's vessels transport a range of dry bulk cargoes, such as iron ore, coal, grain, and other materials along worldwide shipping routes.

This announcement is based on a press release statement from Diana Shipping Inc., and it should be noted that forward-looking statements involve risks and uncertainties. Actual results may differ materially from those projected in the forward-looking statements due to various factors, including market conditions and global economic trends.

In other recent news, Diana Shipping has secured a time charter contract for its dry bulk vessel, the m/v Electra, with Aquavita International S.A. The contract, which guarantees a daily gross charter rate of $14,000, will run until at least October 15, 2025. This is expected to generate approximately $6.89 million in gross revenue for the minimum scheduled period of the charter.

The company has also announced future fleet expansions with the expected delivery of two methanol dual fuel new-building Kamsarmax dry bulk vessels in the second half of 2027 and the first half of 2028, respectively.

On the financial front, Diana Shipping reported a robust start to 2024 with a net income of $2.1 million and EBITDA of $27.8 million on revenues of approximately $58 million. A cash dividend of $0.075 per share was also declared. The company's financial position remains solid with a cash balance of $162 million and controlled long-term debt of $628 million.

These are recent developments that highlight the company's strategy to leverage its fleet to meet the demand for dry bulk shipping capacity in the market, expand its fleet, and maintain a solid financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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