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.
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.