Diana Containerships Inc. Reports Financial Results for The Third Quarter And Nine Months Ended September 30, 2016

ATHENS, Greece, Nov. 17, 2016 (GLOBE NEWSWIRE) -- Diana Containerships Inc. (NASDAQ:DCIX), (the "Company"), a global shipping company specializing in the ownership of containerships, today reported a net loss of $126.8 million for the third quarter of 2016, compared to a net loss of $9.1 million for the respective period of 2015. The loss for the third quarter of 2016 was mainly the result of $118.9 million of impairment charges for seven of the Company's vessels, without which the result for the quarter would have been a net loss of $7.9 million.

Time charter revenues, net of prepaid charter revenue amortization, were $8.0 million for the third quarter of 2016, compared to $16.1 million for the same period of 2015, mainly due to reduced employment opportunities and time charter rates.

Net loss for the nine months ended September 30, 2016 amounted to $140.6 million, compared to a net loss of $8.7 million for the same period of 2015. The loss for the nine month period ended September 30, 2016, was mainly the result of $118.9 million of impairment charges for seven of the Company's vessels, without which the result for the period would have been a net loss of $21.7 million. Time charter revenues, net of prepaid charter revenue amortization, for the nine months ended September 30, 2016, amounted to $27.7 million, compared to $47.3 million for the same period of 2015.
Fleet Employment Profile (As of November 16, 2016)  
Diana Containerships Inc.'s fleet is employed as follows:  
               
Vessel Sister Ships* Gross Rate (USD Per Day) Com** Charterers Delivery Date to  Charterers*** Redelivery Date to Owners**** Notes
BUILT  TEU
6 Panamax Container Vessels
               
SAGITTA              
  A $ 5,850     3.50 % CMA CGM 27-Jan-16 24-Nov-16 - 27-Jan-17
2010  3,426              
CENTAURUS              
  A $ 10,875     5.00 % Maersk Line A/S 2-Oct-15 16-Sep-16
2010  3,426   $ 5,150     5.00 % 16-Sep-16 19-Sep-16 3,4,5
ANGELES              
(ex YM Los Angeles) B $ 21,000   US$350per day Yang Ming (UK) Ltd. 9-Apr-15 19-Oct-16 6,7
2006  4,923              
NEW JERSEY              
(ex YM New Jersey) B $ 21,000   US$350per day Yang Ming (UK) Ltd. 22-Apr-15 26-Sep-16 6,8
2006  4,923              
PAMINA              
(ex Santa Pamina)   $ 15,325     4.00 % Zim Integrated Shipping Services Ltd 21-May-15 22-Mar-16
2005  5,042              
DOMINGO              
(ex Cap Domingo) C $ 6,150     3.50 % CMA CGM 11-Apr-16 24-Nov-16 - 11-Apr-17
2001  3,739              
CAP DOUKATO              
(ex Cap San Raphael) C $ 6,250     3.75 % Rudolf A. Oetker KG 23-Jan-16 25-Nov-16 - 23-Jan-17 1,10
2002  3,739              
               
6 Post - Panamax Container Vessels
               
PUELO              
  D $ 6,500     3.75 % MSC-Mediterranean Shipping Co. S.A., Geneva 17-May-16 17-Apr-17 - 17-Jun-17 11 
2006  6,541            
PUCON              
  D $ 17,000     3.75 % Hapag-Lloyd AG 20-Aug-15 1-Jun-16 12,13,14,15
2006  6,541              
MARCH              
(ex YM March) E $ 6,075     5.00 % SeaGo Line A/S 3-Jul-16 3-Feb-17 - 3-Jul-17 16 
2004  5,576              
GREAT              
(ex YM Great) E $ 6,000     5.00 % Maersk Line A/S 15-Feb-16 18-May-16 17,18
2004  5,576              
HAMBURG              
  F $ 6,350     5.00 % Maersk Line A/S 31-May-16 14-Nov-16 19 
2009  6,494              
ROTTERDAM              
  F $ 6,200     5.00 % Maersk Line A/S 27-Apr-16 24-Nov-16 - 11-Jun-17 1,20
2008  6,494              
* 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.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers' option, but subject to the terms, conditions, and exceptions of the particular charterparty.
1 Based on latest information.
2 In September 2015, the Company agreed to extend as from October 2, 2015 the previous charter party with Maersk Line A/S for a period of minimum 11 months to maximum 18 months at a gross charter rate of US$10,875 per day.
3 In September 2016, the Company agreed to extend as from September 16, 2016 (00:01) the previous charter party with Maersk Line A/S for a period of minimum 70 days to maximum 12 months at a gross charter rate of US$5,150 per day. Charterer has the option to employ the vessel for a further 3 month period plus or minus 30 days at a gross charter rate of US$11,000 per day minus 5% commission paid to third parties. The optional period if exercised will start 12 months after the delivery of the vessel to the charterer and must be declared not later than 11 months prior to this date.
4 On September 23, 2016, charterers exercised their option to cancel the charterparty with immediate effect, insofar as the off-hire events were estimated to exceed fifty (50) consecutive days starting from September 19, 2016, the date in which the vessel was placed off-hire.
5 Vessel currently on unscheduled maintenance.
6 For financial reporting purposes, an asset is recognized upon the delivery of the vessel which represents the difference between the current fair market value of the charter and the net present value of future contractual cash flows. This asset is amortized over the period of the time charter agreement and is set off against the corresponding revenues during the same period.
7 "Angeles" sold and delivered to her new owners on November 15, 2016.
8 As of October 11, 2016, vessel has been placed on lay-up, in Malaysia.
9 As of October 10, 2016, vessel has been placed on lay-up, in Malaysia.
10 In January 2016, the Company agreed to extend as from January 23, 2016 the previous charter party with Rudolf A. Oetker KG for a period of minimum 3 months to maximum 12 months at a gross charter rate of US$6,250 per day.
11 The charterer has the option to further employ the vessel for a twelve (12) month period, at a gross charter rate of US$8,600 per day starting twelve (12) months after delivery of the vessel to the charterer. After that period the charterer has the option to employ the vessel for a further twelve (12) month period, at a  gross charter rate of US$20,000 starting twenty-four (24) months after delivery of the vessel to the charterer. Charterer has the option to employ the vessel for plus or minus thirty (30) days on final declaration.  All gross charter rates include a 3.75% commission paid to third parties. Options must be declared by the charterer not later than nine (9) months for the first option and twenty (20) months for the second option after the delivery of the vessel to the charterer.
12 The charterers paid the owners a compensation for the early redelivery of the vessel equal to the amount of US$6,000 per day for the period between August 20, 2015 and up to March 20, 2016.
13 Charterers changed to Norasia Container Lines Limited, as per Novation Agreement signed in September 2014 with a retroactive effect from July 1, 2014. As per same Novation Agreement, with effect from April 28, 2015, charterers have changed to Hapag-Lloyd AG.
14 In July 2015, the Company agreed to extend as from August 20, 2015 (00:01) the previous charter party with Hapag-Lloyd AG for a period of up to minimum May 10, 2016 to maximum July 20, 2016 at a gross charter rate of US$17,000 per day.
15 As of July 27, 2016, vessel has been placed on lay-up, in Malaysia.
16 The charter rate commenced 10 days after the delivery of the vessel to the charterers.
17 In January 2016, the Company agreed to extend as from February 15, 2016 the previous charter party with Maersk Line A/S for a period of minimum 2 months to maximum 12 months at a gross charter rate of US$6,000 per day.
18 As of September 27, 2016, vessel has been placed on lay-up, in Malaysia.
19 Currently without an active charterparty.
20 In March 2016, the Company agreed to extend as from April 27, 2016 (00:01) the previous charter party with Maersk Line A/S for a period of minimum 6 months to about 13 months at a gross charter rate of US$6,200 per day.

Summary of Selected Financial & Other Data
      For the three months ended September 30,   For the nine months ended September 30,
        2016       2015        2016       2015   
      (unaudited)   (unaudited)   (unaudited)   (unaudited)
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
  Time charter revenues, net of prepaid charter revenue amortization $   7,983   $   16,071   $   27,747   $   47,289  
  Voyage expenses     834       949       2,785       1,566  
  Vessel operating expenses     7,918       8,887       24,696       26,880  
  Net loss      (126,778 )     (9,096 )     (140,556 )     (8,708 )
FLEET DATA
  Average number of vessels     13.0       13.2       13.2       12.3  
  Number of vessels     13.0       13.0       13.0       13.0  
  Ownership days     1,196       1,215       3,630       3,358  
  Available days     1,196       1,195       3,585       3,273  
  Operating days     899       1,058       2,650       3,117  
  Fleet utilization     75.2 %     88.5 %     73.9 %     95.2 %
AVERAGE DAILY RESULTS
  Time charter equivalent (TCE) rate (1) $   5,977   $   12,654   $   6,963   $   13,970  
  Daily vessel operating expenses (2) $   6,620   $   7,314   $   6,803   $   8,005  

_____________________

If you liked this article you might like

Concern: Investors Aren't Buying on Weakness

Rev's Forum: The Stock Market Has Its Own Holiday Traditions

Maritime Shippers Manic Stock Run May Be Driven by Day Traders, Hope for Trump Trade

Diana Containerships Does a Sharp About-Face

Diana Containerships Does a Sharp About-Face

Rev's Forum: 3 Underlying Themes to Find the Best Trading Action