Diana Shipping Agrees Lower Price for Bulker Duo, Secures More Charter Deals

By Vessels

Diana Shipping Inc. (NYSE: DSX), a global shipping company specializing in the ownership of dry bulk vessels, yesterday announced that, through two separate wholly-owned subsidiaries, it has signed two addenda with China Shipbuilding Trading Company, Limited and Jiangnan Shipyard (Group) Co., Ltd., collectively called the “Seller”, among other things, to reduce the contract price and to change the delivery date of the two Newcastlemax dry bulk carriers, Hull No. H2548 (to be named San Francisco) and Hull No. H2549 (to be named Newport News).

As previously announced, the contract price was US$48.7 million per vessel and now the Seller has agreed to reduce this price by US$1.0 million for each of the abovementioned vessels. The delivery date of the two vessels is now expected to be on January 4, 2017.

Additionally, the Company announced that it has entered into a time charter contract with SwissMarine Services S.A., Geneva, for the Newport News, which is currently under construction, for a period of minimum twenty-two (22) months to maximum twenty-six (26) months.

Diana Shipping Agrees Lower Price for Bulker Duo, Secures More Charter Deals

The daily gross charter rate will be 24% above the BCI_2014 average of the five pre-determined time charter routes as published by the Baltic Exchange minus a 5% commission paid to third parties. The initial charter payment will be made on delivery of the vessel to the charterers based on the average of the five pre-determined time charter routes for the 15 days preceding the vessel's delivery date. At the end of the time charter period, there will be a final settlement to reflect the average daily rate of the five pre-determined time charter routes for the actual duration of the charter. The charter is expected to commence on January 9, 2017.

As previously announced, the m/v Newport News is a newbuilding Newcastlemax dry bulk vessel of approximately 208,500 dwt.

The Company also announced that it has entered into time charter contracts with Glencore Agriculture B.V., Rotterdam, through two separate wholly-owned subsidiaries, for two of its Panamax dry bulk vessels, the m/v Leto and the m/v Naias. For m/v Leto, the gross charter rate is US$7,750 per day, minus a 5% commission paid to third parties, for a period of minimum nine (9) months to maximum thirteen (13) months and the charter is expected to commence on December 30, 2016. For m/v Naias, the gross charter rate is US$7,500 per day, minus a 5% commission paid to third parties, for a period of about seven (7) months to about ten (10) months and the charter is expected to commence on December 27, 2016.

The Leto is a 81,297 dwt Panamax dry bulk vessel built in 2010 and the Naias is a 73,546 dwt Panamax dry bulk vessel built in 2006.
The employments of Leto and Naias are anticipated to generate approximately US$3.56 million of gross revenue for the minimum scheduled period of the time charters.

Excluding the San Francisco and the Newport News not yet delivered, Diana Shipping Inc.’s fleet currently consists of 46 dry bulk vessels (2 Newcastlemax, 14 Capesize, 3 Post-Panamax, 4 Kamsarmax and 23 Panamax). As of today, the combined carrying capacity of the abovementioned Company’s fleet is approximately 5.2 million dwt with a weighted average age of 8.2 years.

Source: Diana Shipping