Diana Shipping Extends Charter, Boosts Revenue

Diana Shipping Inc., a leading global provider of shipping transportation services, has recently announced the extension of a time charter contract with NYK Line for one of its Newcastlemax dry bulk vessels, the m/v Los Angeles. This extension, effective from July 18, 2024, until a minimum of October 1, 2025, up to a maximum of December 15, 2025, is expected to generate approximately US$12.43 million of gross revenue for the minimum scheduled period of the time charter.

The gross charter rate for this extension is US$28,700 per day, minus a 5% commission paid to third parties. This rate represents a significant increase from the previous charter rate of US$17,700 per day, indicating a strong market for dry bulk shipping services. The extension of this charter contract demonstrates Diana Shipping's ability to secure favorable terms in the current market conditions, which is a positive sign for the company's financial health and competitive position.

The extension of this charter contract is expected to have a positive impact on Diana Shipping's quarterly earnings projections. The increased revenue generated from this extension will contribute to the company's overall financial performance, potentially leading to an improvement in its stock price and market capitalization. This positive development may also influence Diana Shipping's debt-to-equity ratio, as the increased revenue can help reduce debt levels and improve the company's liquidity position.

Diana Shipping's fleet currently consists of 38 dry bulk vessels, with a combined carrying capacity of approximately 4.4 million dwt and a weighted average age of 10.92 years. The company also expects to take 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. This expansion of the fleet, combined with the successful extension of the charter contract, positions Diana Shipping well for future growth and success in the global dry bulk shipping industry.

In conclusion, Diana Shipping's extension of the time charter contract with NYK Line for the m/v Los Angeles is a positive development for the company. This extension not only boosts the company's revenue but also demonstrates its ability to secure favorable terms in the current market conditions. As Diana Shipping continues to expand its fleet and secure lucrative charter contracts, it is well-positioned to maintain its competitive edge in the global dry bulk shipping industry.