Diana agrees to buy dry bulk carrier |
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Published
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Tue, 06 Mar 2007 21:30
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NEW YORK (AP) - Diana Shipping Inc. said Tuesday that it agreed to buy a dry bulk carrier from an unnamed third party for $110 million.The vessel will be renamed Aliki and is expected to be delivered on or about April 30, Diana said.The company also said Tuesday it has entered into a time charter contract with Cargill International SA for the Aliki.The contract, which is expected to begin immediately after the vessel is delivered, is for a 46- to 49-month period at an average rate of $48,500 per day, with a one-year extension at Cargill's option at the same rate.The contract is expected to generate gross revenue of about $37 million during the first two years and $32 million during the third and fourth years.If Cargill exercises its option for the fifth year, the charter is expected to generate aggregate gross revenue of about $86 million over the entire period, the company said.Diana shares rose 58 cents, or 3.2 percent, to $18.50 in afternoon trading on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Diana Shipping buys vessel for $98M 