Diana Shipping makes surprising move into LPG market with newbuilding investment

The US-listed shipowner disclosed on 21 March that it will become a strategic partner and invest in Ecogas Holding AS, a newly established joint venture, with an 80% equity interest in a transaction for the construction of two 7,500-m³ semi-refrigerated LPG newbuildings. The company has agreed to contribute US$18.5M.

The contract includes an option for two additional vessels. Diana Shipping expects the first vessel to be delivered in Q1 2027 and the second in Q4 2027.

Fearnley Securities noted in a social media post that it acted as the sole arranger for the transaction. The post also mentioned Diana Shipping is collaborating with Tradewind Tankers in the joint venture. The latter is a Spain-based shipping company with expertise in operating oil, gas and chemical tankers ranging from 3,000 to 70,000 dwt, according to the company’s website.

Shipbroking sources noted that a couple of months ago, Tradewind Tankers was linked to an order for two 7,500-m³ LPG carriers at the Chinese shipyard CMJL Yangzhou. At the time, shipbrokers reported that the vessels were intended for a long-term charter contract with Repsol.

Market sources told Riviera that while the order was not finalised at that point, it has now been formalised under the joint venture between Diana Shipping and Tradewind Tankers. However, the Repsol aspect of the deal has yet to be confirmed, though discussions are believed to have taken place.

Diversification and fleet overview

Diana Shipping was the first major Greek owner to enter the offshore vessel sector. The company established a subsidiary, Diana Energize, which is investing in the construction of four commissioning service operation vessels at Vard through a joint venture.

However, Diana Shipping’s core business remains in the dry bulk industry, with its fleet comprising 37 bulk carriers with a combined capacity of 4.1M dwt. The company is also running a newbuilding programme for two methanol dual-fuel Kamsarmaxes, with deliveries scheduled through 2028.

Financial performance

For 2024, Diana Shipping reported a net income of US$12.7M, a decline from US$49.8M in the previous year. Time charter revenues also decreased to US$228.2M, compared with US$262.1M in 2023.

The company declared a cash dividend of US$0.01 per share on its common stock.

Notably, last October, Riviera reported German diversified shipping company F Laeisz, which has experience in gas carriers, acquired a 5% stake in Diana Shipping.