Diana Shipping Inc. Announces Sale of m/v DSI Drammen, an Ultramax Dry Bulk Vessel, in Strategic Move to Optimize Fleet Portfolio
Diana Shipping, a global leader in dry bulk shipping, announced today that it has entered into a definitive agreement for the sale of one of its Ultramax-class dry bulk vessels, the m/v DSI Drammen. The vessel, built in 2016, will be sold to an unaffiliated third-party buyer under a Memorandum of Agreement (MoA) signed through a limited partnership entity.
The vessel is scheduled for delivery to the buyer no later than October 31, 2025, providing ample time for the completion of the necessary formalities and logistics involved in the transfer of ownership. The gross sale price is approximately US$26.86 million, before deduction of standard brokerage and transaction commissions.
This divestment forms part of Diana Shipping Inc.’s ongoing strategy to streamline its fleet composition and maximize asset value, aligning with broader efforts to remain responsive to market conditions while positioning the company for future growth and technological advancement.
Partnership Structure Behind the Transaction
The m/v DSI Drammen is owned through a limited partnership structure, in which Diana Shipping Inc., via its wholly-owned subsidiaries, holds a 25% equity stake. The remaining 75% ownership of the vessel resides with Ecobulk AS, a privately held Norwegian maritime investment company with a focus on environmentally efficient shipping assets.
This structure highlights a cooperative model between publicly traded shipping entities and private equity partners. Such partnerships enable both parties to share risk, optimize capital allocation, and engage in flexible fleet management without burdening individual balance sheets.
The sale proceeds will be distributed among the partners in accordance with their respective ownership stakes, which for Diana Shipping Inc. translates to an expected gross gain of approximately US$6.715 million, pending final adjustments and closing costs.
Fleet Optimization and Portfolio Strategy
As of the announcement date, Diana Shipping Inc. operates a diversified fleet of 36 dry bulk carriers, including:
- 4 Newcastlemax vessels
- 8 Capesize vessels
- 4 Post-Panamax vessels
- 6 Kamsarmax vessels
- 5 Panamax vessels
- 9 Ultramax vessels (excluding the m/v DSI Drammen)
These vessels collectively represent a combined carrying capacity of approximately 4.1 million deadweight tons (dwt) and have a weighted average fleet age of 11.82 years—a key metric for investors monitoring asset depreciation and efficiency.
The decision to sell the m/v DSI Drammen is not an isolated event but part of a broader asset optimization initiative. In a dynamic market characterized by fluctuating freight rates, changing fuel regulations, and evolving vessel efficiency standards, the monetization of mid-age assets allows Diana Shipping to maintain operational flexibility while freeing up capital for reinvestment.
Focus on Next-Generation Vessels
In line with global shipping’s shift toward environmental sustainability and alternative fuels, Diana Shipping Inc. is taking bold steps to modernize its fleet. The Company has already committed to acquiring two next-generation Kamsarmax dry bulk vessels, currently under construction and expected to be delivered in the second half of 2027 and first half of 2028, respectively.
These new vessels will be methanol dual-fuel powered, making them compliant with upcoming International Maritime Organization (IMO) decarbonization targets and capable of operating under the increasingly strict emissions standards that are shaping the future of maritime trade.
By gradually retiring older or mid-life tonnage, such as the DSI Drammen, and replacing them with vessels that meet the latest in environmental compliance, Diana Shipping is ensuring that its fleet remains competitive, compliant, and desirable in both the spot and long-term charter markets.
Financial Implications and Market Outlook
The sale of m/v DSI Drammen is expected to positively impact Diana Shipping’s balance sheet strength, liquidity, and return on invested capital. With current bulk carrier values still elevated due to robust demand in several dry bulk segments—including grain, iron ore, and minor bulk trades—this divestment comes at an opportune moment.
From a capital management perspective, the transaction gives Diana Shipping additional flexibility to:
- Reduce debt or fund share repurchases
- Reinvest in more fuel-efficient tonnage
- Build cash reserves to weather future market volatility
Moreover, shipping analysts often view vessel sales—particularly those occurring at or above book value—as a positive signal that management is actively maximizing shareholder value and not holding onto assets longer than strategically necessary.
Broader Industry Context
The dry bulk shipping sector has seen increasing pressure to decarbonize and digitize in recent years. IMO 2023 regulations and the upcoming Carbon Intensity Indicator (CII) requirements are placing older, less efficient vessels under scrutiny from regulators, charterers, and financiers alike.
As charterers begin to prefer vessels with lower emissions profiles, shipping companies must make hard decisions about fleet composition. Selling mid-life vessels, such as the m/v DSI Drammen, allows operators like Diana Shipping to stay agile and ensure the fleet remains attractive to long-term customers.
Additionally, with freight markets exhibiting cyclical behavior, capitalizing on strong asset values when possible is considered prudent management. According to market estimates, Ultramax vessel prices for similar-age ships have shown resilience despite global macroeconomic uncertainty, driven by trade disruptions, port congestion, and supply chain realignments.
About the m/v DSI Drammen
Built in 2016, the m/v DSI Drammen is a modern Ultramax dry bulk carrier, designed for carrying a variety of cargoes including coal, grain, bauxite, and fertilizers. With its size and fuel efficiency, the Ultramax class has become one of the preferred ship types for minor bulk routes that require flexibility in draft, port access, and cargo diversity.
Though still within what is typically considered a vessel’s economic mid-life, the sale of the Drammen aligns with a common strategy among shipping companies to capitalize on market timing while preparing for a fleet transition toward alternative fuel-ready assets.
Company Outlook
Diana Shipping Inc. continues to operate with a disciplined approach to fleet growth, sustainability, and shareholder returns. The company has a long-standing reputation in the industry for prudent capital management, risk mitigation through long-term charters, and strategic fleet development.
Looking forward, the company aims to:
- Enhance its environmental performance
- Strengthen its chartering portfolio with high-credit counterparties
- Maintain a diversified mix of vessel types and sizes
- Allocate capital toward vessels that support IMO’s long-term climate goals
Investors and stakeholders can access detailed fleet information, financial results, and sustainability updates on the company’s website at www.dianashippinginc.com. However, as noted, information on the website does not constitute part of this announcement.
This release contains forward-looking statements relating to the Company’s expectations and strategies. These statements involve known and unknown risks and uncertainties that may cause actual results to differ materially. Readers are advised to refer to Diana Shipping Inc.’s latest filings with the SEC for more detailed risk disclosures.