NEW YORK (TheStreet) -- Diana Containerships (DCIX) plunged to a one-year low of $3.15 on Tuesday after the shipping transportation services provider announced it reduced its quarterly dividend by 67% to 5 cents a share from 15 cents a share for the first quarter of 2014.
The cash dividend will be payable on or around June 11, 2014 to all shareholders of record as of May 28, 2014.
"After carefully considering the current containership charter market and vessel acquisition opportunities, management believes the board's decision to reduce the cash dividend payable with respect to the first quarter is in the best interests of the Company and its shareholders and is consistent with the long-term strategy of maintaining a strong balance sheet and pursuing attractive vessel purchase opportunities as they arise," the company said in a statement.
"In taking this action, the company expects to deploy its available cash to purchase additional containership vessels at currently attractive prices that will further enhance the company's position to capitalize on the eventual recovery in the container market. The company believes this action enhances long-term shareholder value and will evaluate future dividend decisions in light of then prevailing market conditions."
Diana Containerships also reported earnings of 1 cent a share, in line with the Capital IQ Consensus Estimate of a penny a share. Revenues declined 10.6% year over year to $13.5 million, which surpassed the consensus estimate of $12.99 million.