Diana Shipping (DSX) Says Yangzhou Dayang, Shanghai Sinopacific Contract Cancelled

November 3, 2016 9:11 AM EDT

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Diana Shipping Inc. (NYSE: DSX) announced that, through a wholly-owned subsidiary, it provided a notice of cancellation of the shipbuilding contract with Yangzhou Dayang Shipbuilding Co., Ltd. and Shanghai Sinopacific International Trade Co., Ltd., dated January 8, 2014 (the “Contract”), and Addendum No. 1 to the Contract dated April 21, 2014 with Sumec Marine Co., Ltd. with respect to a Kamsarmax dry bulk carrier, Hull No. DY6006, with an original delivery date of May 31, 2016. The Company has exercised its right under the Contract to cancel the Contract due to a delay in delivery of 150 days after the original delivery date and to claim a refund of the pre-delivery installment payments in an aggregate amount of approximately US$8.65 million together with interest at a rate of 5% per annum from the date of receipt of the installment until the date payment is received by the Company. The refund of the aforementioned pre-delivery installments together with interest thereon is covered by a Refund Guarantee from the Export-Import Bank of China dated June 26, 2014 (the “Refund Guarantee”). However, there can be no assurance as to the amounts ultimately payable or the timing of any refunds received under the Contract or the Refund Guarantee.

Diana Shipping Inc.’s fleet currently consists of 46 dry bulk vessels (2 Newcastlemax, 14 Capesize, 3 Post-Panamax, 4 Kamsarmax and 23 Panamax). In addition, the Company expects to take delivery of two new-building Newcastlemax dry bulk vessels during the fourth quarter of 2016 and the first quarter of 2017. As of today, the combined carrying capacity of the Company’s fleet, excluding the two vessels not yet delivered, is approximately 5.2 million dwt with a weighted average age of 8.03 years. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, www.dianashippinginc.com. Information contained on the Company’s website does not constitute a part of this press release.



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