Diana Shipping Announces Sale, Leaseback And Time Charter Contract

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Credit: chris-pagan-unsplash

A recent news article published in the Diana Shipping Inc. Announces Sale and Leaseback of m/v DSI Andromeda and Time Charter Contract for m/v DSI Pegasus with Reachy.

Sale and leaseback agreement with an unaffiliated Japanese third party

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 sale and leaseback agreement with an unaffiliated Japanese third party for the 2016-built Ultramax dry bulk vessel, m/v DSI Andromeda. Upon completion of the transaction, which is estimated to take place by the end of the fourth quarter of 2022, the Company’s gross proceeds will be US$29.85 million. As part of the agreement, the Company will bareboat charter-in the vessel for a period of ten years plus 30 days at the charterer’s option, and will have purchase options beginning at the end of the third year of the bareboat charter period.

The Company also 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 Ultramax dry bulk vessels, the m/v DSI Pegasus. The gross charter rate is US$14,000 per day, minus a 5% commission paid to third parties, for a period until minimum July 15, 2024 up to maximum September 15, 2024. The charter is expected to commence later today.

Ultramax dry bulk vessel

The “DSI Pegasus” is a 60,508 dwt Ultramax dry bulk vessel built in 2015.

The employment of “DSI Pegasus” is anticipated to generate approximately US$8.09 million of gross revenue for the minimum scheduled period of the time charter.

Diana Shipping Inc.’s fleet currently consists of 41 dry bulk vessels (4 Newcastlemax, 11 Capesize, 5 Post-Panamax, 6 Kamsarmax, 8 Panamax and 7 Ultramax). The Company also expects to take delivery of 2 Ultramax dry bulk vessels in the fourth quarter of 2022. As of today, the combined carrying capacity of our fleet, excluding the 2 Ultramax dry bulk vessels not yet delivered, is approximately 4.8 million dwt with a weighted average age of 10.18 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.

 

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Source: Diana Shipping

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