Diana Shipping Inc. announces new long term time charter contract with B.H.P. Billiton
Diana Shipping Inc., a global shipping transportation company specializing in dry bulk cargoes, today announced that it has entered into a long term time charter contract with B.H.P. Billiton Marketing A.G. of Baar, Switzerland for the dry bulk carrier Capesize newbuilding Hull No. H1043. The vessel, approximately 177,000 dwt, is currently being constructed by Shanghai Waigaoqiao Shipbuilding Co., Ltd. and the Company expects to take delivery in November 2007.
The charter contract provides for an approximately 47 to 49 month period at a fixed gross rate of $52,000 per day. The charterer has the option to employ the vessel for a further 11-13 month period at the same daily gross charter rate. The charter is expected to commence immediately after the delivery of the vessel to the Company.
During the minimum period of approximately four years, this employment is expected to generate gross revenues of approximately $75 million. If the charterer exercises its option for the fifth year, the charter is expected to generate gross revenues of approximately $93 million over the entire period.
Diana Shipping Chairman and Chief Executive Officer, Simeon Palios, commented: "Once again Diana Shipping Inc. has demonstrated its ability to acquire and employ a vessel on terms that are accretive to the dividend per
share. We believe that in the current market, Capesize vessel prices are justified when an owner can charter the vessels for long periods at attractive rates. In our view, first class charterers are usually prepared to enter into long term relationships only with companies that they consider well-established having stable earnings and no extensive liabilities."
Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.
During the minimum period of approximately four years, this employment is expected to generate gross revenues of approximately $75 million. If the charterer exercises its option for the fifth year, the charter is expected to generate gross revenues of approximately $93 million over the entire period.
Diana Shipping Chairman and Chief Executive Officer, Simeon Palios, commented: "Once again Diana Shipping Inc. has demonstrated its ability to acquire and employ a vessel on terms that are accretive to the dividend per
share. We believe that in the current market, Capesize vessel prices are justified when an owner can charter the vessels for long periods at attractive rates. In our view, first class charterers are usually prepared to enter into long term relationships only with companies that they consider well-established having stable earnings and no extensive liabilities."
Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.
