Business

Diana Shipping Inc (NYSE: DSX) Acquire Kamsarmax Dry Bulk Vessel for $22 Million

Diana Shipping Inc (NYSE: DSX) is a leading shipping company globally specializing in owning dry bulk vessels. It has announced that its subsidiary had signed the MoU (Memorandum of Understanding) to purchase Kamsarmax Dry Vessels for $22 million.

Vessel delivery expected in 2022: Diana Shipping, through its subsidiary (wholly owns), entered into the agreement for the purchase of a Kamsarmax dry bulk vessel of 82,165 dwt from the independent third party, the m/v Magnolia. As per the company, the vessel’s purchase price is approximately $22 million, and the delivery is expected to be by the end of February 2022.

Current carrying capacity stands at 4.7 million dwt: Considering the sale of one of its Panamax dry vessels, the m/v Naias, and excluding the new acquisition of dry bulk vessels, Diana Shipping’s total fleet consists of 36 dry bulk vessels currently. As per the company, 36 dry bulk vessels include 12 Capesize, 4 Newcastlemax, 5 Kamsarmax, 10 Panamax, and 5 Post – Panamax vessels. Taking the total fleet into consideration, excluding the newly acquired, the total carrying capacity of the vessels stands at around 4.7 million dwt, with a weighted average life of 10.41 years. 

The company stated that its vessels have been used or deployed for medium to long-term charters. It is used to carry dry bulk cargoes, including coal, iron ore, grains, and various other materials, through the shipping routes globally. Given the deployment of the vessel for the medium to long term period, increases the revenue visibility of Diana Shipping. Further, newly purchased Kamsarmax Dry Vessels is expected to strengthen its fleet size, capacity, and average fleet life. Therefore, the acquisition is expected to support the growth in revenue future and improve the company’s overall efficiency. The higher efficiency, likely to improve profitability, and the company can use the proceeds further to increase its fleet size in the coming years.

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