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Diana Containerships Inc. Reports Financial Results For The Second Quarter And Six Months Ended June 30, 2013

ATHENS, Greece, July 29, 2013 (GLOBE NEWSWIRE) -- Diana Containerships Inc. (Nasdaq:DCIX), a global shipping company specializing in owning and operating containerships, today reported a net loss of $5.0 million for the second quarter of 2013, compared to net income of $2.2 million for the respective period of 2012. The loss for the second quarter was mainly the result of $4.3 million of direct sale and other charges associated with the disposal of the vessels Madrid, Malacca and Merlion, without which the result for the second quarter of 2013 would have been a loss of $0.7 million, while the loss per share, basic and diluted, would have been $(0.02) for that quarter.

Time charter revenues were $12.2 million for the second quarter of 2013, compared to $14.9 million for the same period of 2012, mainly due to the decrease of the average time charter rates achieved in 2013 compared to 2012 and the disposal of the vessels Madrid, Malacca and Merlion in the second quarter of 2013, which was partly offset by the contribution of revenues of the vessels Apl Garnet, delivered in November 2012, and Hanjin Malta, delivered in March 2013.

Net loss to Diana Containerships Inc. for the six months ended June 30, 2013 amounted to $36.8 million, compared to net income of $4.1 million for the same period of 2012. Time charter revenues were $27.4 for the six months ended June 30, 2013, essentially unchanged from the revenues of the respective period in 2012.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.15 per share with respect to the second quarter of 2013. The cash dividend will be payable on or around September 3, 2013 to all shareholders of record as at August 14, 2013. The Company has 33,757,688 shares of common stock outstanding.

     
Fleet Employment Profile (As of July 29, 2013)    
Currently Diana Containerships Inc.'s fleet is employed as follows:    
     
Vessel BUILT TEU Sister Ships* Gross Rate (USD Per Day) Com** Charterer Delivery Date to Charterer Redelivery Date to Owners*** Notes  
Container Vessels  
SAGITTA A $22,000 1.25% A.P. Moller - Maersk A/S 15-May-11 15-Mar-13    
    $7,250     15-Mar-13 15-Oct-13 - 15-Feb-14    
2010 3,426                
CENTAURUS A $7,500 3.50% CMA CGM S.A. 13-Aug-12 13-Feb-14 - 13-Jun-14 1  
2010 3,426                
MALACCA B $21,450 1.25% A.P. Moller - Maersk A/S 24-Jun-11 9-May-13 2  
(ex Maersk Malacca)                
1990 4,714                
MERLION B $21,450 1.25% A.P. Moller - Maersk A/S 19-Jun-11 14-May-13 3  
(ex Maersk Merlion)                
1990 4,714                
MADRID   $21,450 1.25% A.P. Moller - Maersk A/S 15-Jun-11 29-Apr-13 4,5  
(ex Maersk Madrid)                
1989 4,206                
CAP DOMINGO C $22,750 0% Reederei Santa Containerschiffe GmbH & Co. KG 6-Feb-12 6-Feb-13 6,7  
(ex Cap San Marco)   $22,850     6-Feb-13 6-Feb-14    
2001 3,739   $23,250     6-Feb-14 23-Dec-14 - 23-Mar-15    
CAP DOUKATO C $22,750 0% Reederei Santa Containerschiffe GmbH & Co. KG 6-Feb-12 6-Feb-13 6,7  
(ex Cap San Raphael)   $22,850     6-Feb-13 6-Feb-14    
2002 3,739   $23,250     6-Feb-14 23-Dec-14 - 23-Mar-15    
APL SARDONYX D $24,750 1.00% APL (Bermuda) Ltd. 17-Feb-12 3-Jan-14 - 3-Apr-14 7,8,9  
1995 4,729                
APL GARNET D $27,000 0% NOL Liner (Pte) Ltd. 19-Nov-12 20-Aug-15 - 19-Oct-15 7  
1995 4,729                
APL SPINEL D $24,750 1.00% APL (Bermuda) Ltd. 1-Mar-12 15-Jan-14 - 15-Apr-14 7,8,9  
1996 4,729                
HANJIN MALTA   $25,550 US $150 per day  Hanjin Shipping Co. Ltd. 15-Mar-13 30-Mar-16 - 15-May-16 7  
1993 4,024                
* Each container vessel is a "sister ship", or closely similar, to other container vessels that have the same letter.  
** Total commission paid to third parties.  
*** Charterers' optional period to redeliver the vessel to owners. Charterers have the right to add the off hire days, if any, and therefore the optional period may be extended.  
1 On June 7, 2013, the Company agreed to extend as from August 13, 2013 the initially signed charter party with CMA CGM S.A., dated August 2, 2012 for a period of minimum 6 months to maximum 10 months.  
2 Vessel sold and delivered to its new owners on June 11, 2013.  
3 Vessel sold and delivered to its new owners on June 07, 2013.  
4 Vessel sold and delivered to its new owners on May 10, 2013.  
5 A.P. Moller - Maersk A/S has agreed to compensate the owners for the early redelivery of the vessel by paying US$210,000.  
6 For financial reporting purposes, we recognize revenue from time charters that have varying rates on a straight-line basis equal to the average revenue during the term of that time charter. We calculate quarterly dividends based on the available cash from operations during the relevant quarter.  
7 For financial reporting purposes, revenues derived from the time charter agreement will be netted off during the term of the time charter with an amortization charge of the asset that was recognized at the delivery of the vessel, being the difference of the present value of the contractual cash flows to the fair value. However, we calculate quarterly dividends based on the available cash from operations during the relevant quarter.  
8 The charterer has the option to employ the vessel for a further 12 month period plus or minus 45 days, at a daily rate of $24,750 starting 24 months after delivery of the vessel to the charterer. After that period the charterer has the option to employ the vessel for a further 12 month period plus or minus 45 days, at a daily rate of $28,000 starting 36 months after delivery of the vessel to the charterer. Options must be declared by the charterer not later than 20 months for the first option and 32 months for the second option after the delivery date to the charterer.  
9 Since December 28, 2012 charterers have changed to NOL Liner (Pte) Ltd.  
 
 
Summary of Selected Financial & Other Data
  For the three months ended June 30, For the six months ended June 30,
  2013 2012 2013 2012
  (unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA (in thousands of US Dollars):        
Time charter revenues, net of prepaid charter revenue amortization $ 12,245 $ 14,939 $ 27,381 $ 27,387
Voyage expenses  122  379  417  663
Vessel operating expenses  8,428  7,048  16,660  12,749
Net income / (loss)  (5,045)  2,239  (36,844)  4,107
FLEET DATA         
Average number of vessels  10.0  9.0  10.1  8.0
Number of vessels  8.0  9.0  8.0  9.0
Ownership days  906  819  1,822  1,457
Available days  906  819  1,822  1,457
Operating days  838  815  1,754  1,453
Fleet utilization 92.5% 99.5% 96.3% 99.7%
AVERAGE DAILY RESULTS        
Time charter equivalent (TCE) rate (1) $ 13,381 $ 17,778 $ 14,799 $ 18,342
Daily vessel operating expenses (2) $ 9,302 $ 8,606 $ 9,144 $ 8,750
         
 
(1) Time charter equivalent rates, or TCE rates, are defined as our time charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.
 
(2) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.

Conference Call and Webcast Information

Diana Containerships Inc. will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Monday, July 29, 2013.

Stock quotes in this article: DCIX 

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