Dry bulk shipping stocks were rising Monday afternoon after
announced an agreement to buy Gala Properties, which has a contract with
China Shipbuilding Trading
Shanghai Jiangnan-Changxing Shipbuilding
for the construction of a Capesize dry bulk carrier with a contract price of $60.2 million.
In exchange, Diana will transfer to the seller its ownership interest in
Eniwetok Shipping Company
, a wholly owned subsidiary of Diana. Incremental costs to Diana, excluding certain fees, will be $15 million.
Gala Properties has time chartered the vessel in question to Jiangsu Shagang Group or its nominee at a rate of $55,000 per day for at least 59 months and at most 62 months. Diana expects the employment to generate about $97 million in gross revenue for the minimum period.Diana shares were rising 1.4% to $13.37 in recent trading.
shares was leading the winners in percentage gains, rising 9.4% to $2.57.
Eagle Bulk Shipping
was rising 2.6% to $4.67.
Genco Shipping & Trading
was up 3% to $14.62.
Excel Maritime Carriers
was falling 0.4% to $6.74.
DryShips was up 2.5% to $4.87.