Impairment losses are taken when events or changes in circumstances occur that cause the company to believe that future cash flows for an individual vessel will be less than the carrying value and not fully recordable. In such instances, an impairment charge is recognized if the estimate of the undiscounted cash flow is expected to result from the use of the vessel and its eventual disposition is less than the vessel's carrying amount.
The net loss, including the vessel impairment loss, was $24.3 million, equivalent to loss per share of $0.31. Frontline announces a net loss, excluding vessel impairment loss, of $4 million for the 6 months ended June 30, equivalent to loss per share of $0.05. The net loss, including vessel impairment loss, was $17 million -- $17.3 million for the 6-month period ended June 30, equivalent to loss per share of $0.22. Frontline will not pay dividends for the second quarter.
Then I would like you to move to Slide 6, income statement. Net loss excluding gains and losses in the second quarter of 2012 is about $5 million weaker than in the first quarter of 2012. This decrease can mainly be explained by some items. First, income on time charter basis was about $1 million better in the second quarter than it was in the first quarter due to an increase of time charter equivalent rates per day in the second quarter. That was partially offset by a reduction in on high days due to recent stays and lease terminations. Cash sweep expense increased about $3 million this quarter compared with the first quarter due to the increase in time charter equivalents per day in the second quarter. Then ship operating expenses increased by almost $6 million compared with the first quarter, primarily as a result of an increase in drydocking cost of $7.3 million, which was partially offset by a decrease in running cost.
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