Diana Shipping Inks Charter Deal With Rio Tinto Unit

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An upcoming addition to Diana Shipping's fleet will be pressed into service immediately after it's delivered. The company announced it has signed a time charter contract with Rio Tinto's Rio Tinto Shipping subsidiary, under which the latter firm will commandeer one of Diana's vessels for 22-26 months. Diana will receive $9,375 per day from Rio Tinto Shipping, minus a 3.75% commission paid to a third party that it did not name.

The vessel, currently known as the Shoyo but to be rechristened the Artemis, is a 76,942 dwt ship recently purchased by Diana and scheduled for delivery at the beginning of next month. Once delivery is taken, Rio Tinto Shipping's charter is expected to begin.

All told, Diana expects the charter to generate at least $6.2 million in gross revenue.

The company reported its Q2 results yesterday. It posted revenue of $40 million and a net loss of $5.2 million. These figures were in line with analyst expectations.

The article Diana Shipping Inks Charter Deal With Rio Tinto Unit originally appeared on Fool.com.

Fool contributor Eric Volkman and The Motley Fool have no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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