World News
Diana Shipping Buys Bulkers at "Distressed" Prices
Greece-based dry bulk shipping company Diana Shipping Inc. (Diana Shipping) [NYSE: DSX] Thursday announced that it has signed three separate memoranda of agreement with a related third party for the purchase of three Panamax dry bulk vessels for a "distressed" collective price of $39.8 million.
The vessels are said to have been purchased from entities affiliated with Semiramis Paliou and Aliki Paliou, both family members of the Diana Shipping's Chairman and CEO, Simeon P. Palios.
"Not only has the Company been able to negotiate the purchase of these vessels at 'distressed' prices not seen during the past 15 years, but we believe that our strong balance sheet and attractive credit risk will enable us to negotiate extremely favorable financing terms with the current lenders to finance 100 percent of the purchase price that will be non-amortising for two years," said Anastasios Margaronis, President of Diana Shipping.
"By preserving available cash, the Company will maintain its strong balance sheet to weather the continuing downturn in the dry bulk market and to fund future vessel acquisitions throughout the eventual market recovery, consistent with the Company's long term strategy."
The three ships acquired are said to include 75,700 DWT M/V Sunshine, 75,403 DWT M/V Manzoni, and the 77,901 dwt M/V Infinity 9, all of which are expected to be delivered to Diana Shipping by the end of March 2016.
The news of Diana Shipping's newly purchased ships comes against a backdrop of what has been called the worst crisis in living memory for dry bulk, with Ship & Bunker reporting Thursday that dry bulk's key barometer the Baltic Dry Index (BDI) fell to a new record low of 298.
In November, when the BDI made history for falling under 500 points for the first time ever, Diana Shipping announced that it had acquired a 179,362 DWT Capesize dry bulk vessel for $28.5 million.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 646.50 | 5.50 | 773.50 | 11.50 |
| Rotterdam | 604.00 | 5.00 | 756.00 | 5.00 |
| Houston | 630.50 | 1.00 | 798.50 | 4.00 |
| Fujairah | 650.50 | 3.00 | 897.00 | 13.50 |
| Global 20 Ports Average | 662.50 | 1.00 | 858.50 | 0.50 |
| Global 4 Ports Average | 633.00 | 3.50 | 806.00 | 6.50 |
| Global Average Bunker Price | 718.50 | 0.50 | 914.00 | 1.00 |
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