Diana Shipping Inc. Sells Bulk Vessel and Extends Charter Deal
Diana Shipping Inc. Expedites Growth with Strategic Vessel Transactions
Diana Shipping Inc. (NYSE: DSX), a leading company in the global shipping industry, has made headlines recently by announcing significant developments in its fleet management. These changes emphasize the company's commitment to growth and operational efficiency in the highly competitive dry bulk sector.
Sale of the m/v Alcmene
On a notable day, the Company revealed that it has signed a Memorandum of Agreement to sell its 2010-built Post-Panamax vessel, m/v Alcmene, for approximately US$11.9 million before any commissions, with delivery to the buyer set before March 7, 2025. This sale is part of a strategic move to optimize the fleet by divesting aging vessels while focusing on the acquisition of newer, more efficient ships.
Impacts of the Sale
With the impending sale of the m/v Alcmene, Diana Shipping's fleet will consist of 37 dry bulk vessels. This composition includes 4 Newcastlemax, 8 Capesize, 4 Post-Panamax, 6 Kamsarmax, 6 Panamax, and 9 Ultramax vessels. The company continues to build a diverse and modern fleet aimed toward maximizing revenue and minimizing operating costs.
New Charter Agreement for the m/v San Francisco
In addition to the vessel sale, the Company has also announced a time charter agreement with SwissMarine Pte. Ltd. for its Newcastlemax dry bulk vessel, the m/v San Francisco. Starting from February 27, 2025, this charter will have a gross daily rate of US$26,000, reduced by a 5.00% commission paid to third parties, extending the vessel’s employment until at least October 25, 2026, and potentially as late as December 25, 2026.
Revenue Expectations
This charter is promising for Diana Shipping as it anticipates generating approximately US$15.55 million in gross revenue during the minimum scheduled period of the time charter. The m/v San Francisco, a 208,006 dwt Newcastlemax vessel built in 2017, is already achieving robust performance in its charter arrangements, indicating a strong demand for such vessels in the shipping market.
Future Fleet Developments
Diana Shipping is not only focused on the current transactions but is also strategically planning for the future. The Company is set to receive two new Kamsarmax dry bulk vessels powered by methanol dual fuel, slated for delivery in the latter half of 2027 and early 2028. These acquisitions reflect the Company's commitment to transitioning towards more environmentally friendly and economically viable shipping solutions.
The Present Fleet and Its Capabilities
Currently, the combined carrying capacity of Diana Shipping’s fleet is roughly 4.2 million dwt, with a weighted average fleet age of 11.37 years, underscoring the company’s ongoing adjustments to keep its fleet current and capable of meeting market demands. The planned enhancements in fleet capacity and technology are expected to enable the Company to stay competitive in a changing market.
Conclusion
Overall, Diana Shipping Inc.'s recent decisions to sell a key vessel while simultaneously securing a lucrative charter contract demonstrate a strategic approach to fleet management aimed at optimizing financial performance. Such moves position the Company well for growth while adapting to market fluctuations in the dry bulk sector.
Frequently Asked Questions
What is the recent noteworthy development by Diana Shipping Inc.?
Diana Shipping announced the sale of its Post-Panamax vessel, m/v Alcmene, and entered a time charter with SwissMarine for the m/v San Francisco.
How much did Diana Shipping sell the m/v Alcmene for?
The m/v Alcmene was sold for approximately US$11.9 million before commissions.
What is the charter rate for the m/v San Francisco?
The charter rate for the m/v San Francisco is US$26,000 per day, with a 5.00% commission to be paid to third parties.
When is the new charter for the m/v San Francisco expected to start?
The new charter is expected to commence on February 27, 2025.
How many vessels does Diana Shipping Inc. currently operate?
Diana Shipping Inc. currently operates a fleet of 37 dry bulk vessels.
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