I would now like to turn the call to Sai to discuss our quarterly financial results. Sai, please?
Thanks, Gerry. Please turn to Slide 4 for a summary of our second quarter and first half 2012 results compared to the results for the comparable periods of 2011.
Revenue increased by over 24% in the second quarter due to the increased number of operating days and higher time charter rate attributed to delivery of our larger new build vessels.
Overall, ship operating expenses increased by a lower percentage than our revenue increased. This is consistent with the operating efficiencies achieved by our larger new build ships, which have lower operating costs per TEU.
As a result of the Manager acquisition in January of this year and as discussed in prior earnings calls, we now expect ship operating expenses to be more variable on a quarter-to-quarter basis as they are now based on the direct operating costs of the vessels as opposed to the fixed technical services fees that were in place pre-acquisition.
Ship operating expenses for the second quarter decreased by 3.9% compared to 2011. This decrease was primarily attributable to the reclassification of a portion of the ship operating expenses because they are not operating in nature to general and administrative expenses since the closing of the Manager acquisition.
For the three and six months ended, the amounts reclassified were approximately $2.3 million and $2.2 million respectively. For a meaningful comparison to the 2011 figures, it would be appropriate to add back the reclassified (ph) amounts of (ph) ship operating expenses.
On an adjusted basis, ship operating expenses for the three and six months would’ve been increased by approximately 3% and 10% respectively compared to the same periods in 2011 primarily due to the 7.9% and 8.9% respective increases in ownership days resulting from the four deliveries during 2012 and a full period of expenses for the 10 vessel deliveries in 2011.
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