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 |
1 |
2010 3,426 |
|
|
|
|
|
|
|
CENTAURUS |
|
|
|
|
|
|
|
|
A |
$ |
10,875 |
|
|
5.00 |
% |
Maersk Line A/S |
2-Oct-15 |
16-Sep-16 |
2 |
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 |
9 |
2005 5,042 |
|
|
|
|
|
|
|
DOMINGO |
|
|
|
|
|
|
|
(ex Cap Domingo) |
C |
$ |
6,150 |
|
|
3.50 |
% |
CMA
CGM |
11-Apr-16 |
24-Nov-16
- 11-Apr-17 |
1 |
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 |
|
_____________________
(1)
Time charter equivalent rates, or TCE rates, are defined as our
time charter revenues, net, 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,
environmental costs and other miscellaneous expenses, are
calculated by dividing vessel operating expenses by ownership days
for the relevant period.
Conference Call and Webcast Information
The Company’s management will conduct a
conference call and simultaneous Internet webcast to review these
results at 9:00 A.M. (Eastern Time) on Monday, November 28,
2016.
Investors may access the webcast by visiting the
Company’s website at www.dcontainerships.com, and clicking on the
webcast link. The conference call also may be accessed by telephone
by dialing 1-877-407-8029 (for U.S.-based callers) or
1-201-689-8029 (for international callers), and asking the operator
for the Diana Containerships Inc. conference call.
A replay of the webcast will be available soon
after the completion of the call and will be accessible for 30 days
on www.dcontainerships.com. A telephone replay also will be
available for 30 days by dialing 1-877-660-6853 (for U.S.-based
callers) or 1-201-612-7415 (for international callers), and
providing the Replay ID number 13646685.
About the Company
Diana Containerships Inc. is a global provider
of shipping transportation services through its ownership of
containerships. The Company’s vessels are employed primarily on
time charters with leading liner companies carrying containerized
cargo along worldwide shipping routes.
Cautionary Statement Regarding Forward-Looking
Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words "believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan,"
"potential," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, our management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for containership capacity,
changes in our operating expenses, including bunker prices,
drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
vessel breakdowns and instances of off-hires and other factors.
Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and
uncertainties.
(See financial tables attached)
DIANA CONTAINERSHIPS INC. |
FINANCIAL TABLES |
Expressed in thousands of U.S. Dollars, except for
share and per share data |
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
REVENUES: |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Time charter
revenues |
$ |
|
8,970 |
|
$ |
|
18,430 |
|
$ |
|
31,443 |
|
$ |
|
54,130 |
|
|
Prepaid charter revenue
amortization |
|
|
(987 |
) |
|
|
(2,359 |
) |
|
|
(3,696 |
) |
|
|
(6,841 |
) |
|
Time charter revenues,
net |
|
|
7,983 |
|
|
|
16,071 |
|
|
|
27,747 |
|
|
|
47,289 |
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
834 |
|
|
|
949 |
|
|
|
2,785 |
|
|
|
1,566 |
|
|
Vessel operating
expenses |
|
|
7,918 |
|
|
|
8,887 |
|
|
|
24,696 |
|
|
|
26,880 |
|
|
Depreciation and
amortization of deferred charges |
|
|
3,597 |
|
|
|
3,376 |
|
|
|
10,704 |
|
|
|
9,521 |
|
|
General and
administrative expenses |
|
|
1,732 |
|
|
|
1,535 |
|
|
|
5,454 |
|
|
|
4,386 |
|
|
Impairment losses |
|
|
118,861 |
|
|
|
- |
|
|
|
118,861 |
|
|
|
- |
|
|
Loss on vessels'
sale |
|
|
- |
|
|
|
8,300 |
|
|
|
497 |
|
|
|
8,300 |
|
|
Foreign currency losses
/ (gains) |
|
|
58 |
|
|
|
(32 |
) |
|
|
143 |
|
|
|
(87 |
) |
|
Operating
loss |
|
|
(125,017 |
) |
|
|
(6,944 |
) |
|
|
(135,393 |
) |
|
|
(3,277 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME / (EXPENSES): |
|
|
|
|
|
|
|
|
|
Interest and finance
costs |
|
|
(1,792 |
) |
|
|
(2,176 |
) |
|
|
(5,259 |
) |
|
|
(5,522 |
) |
|
Interest income |
|
|
31 |
|
|
|
24 |
|
|
|
96 |
|
|
|
91 |
|
|
Total other
expenses, net |
|
|
(1,761 |
) |
|
|
(2,152 |
) |
|
|
(5,163 |
) |
|
|
(5,431 |
) |
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
|
(126,778 |
) |
$ |
|
(9,096 |
) |
$ |
|
(140,556 |
) |
$ |
|
(8,708 |
) |
|
|
|
|
|
|
|
|
|
|
Loss per common share, basic and diluted * |
$ |
|
(13.84 |
) |
$ |
|
(1.00 |
) |
$ |
|
(15.37 |
) |
$ |
|
(0.96 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares, basic and
diluted* |
|
|
9,160,297 |
|
|
|
9,114,754 |
|
|
|
9,147,309 |
|
|
|
9,107,803 |
|
|
|
|
|
|
|
|
|
|
|
|
* Adjusted
to give effect to the 1 for 8 reverse stock split that became
effective on June 9, 2016. |
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net
loss |
$ |
|
(126,778 |
) |
$ |
|
(9,096 |
) |
$ |
|
(140,556 |
) |
$ |
|
(8,708 |
) |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
$ |
|
(126,778 |
) |
$ |
|
(9,096 |
) |
$ |
|
(140,556 |
) |
$ |
|
(8,708 |
) |
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
DATA |
|
|
(Expressed
in thousands of US Dollars) |
|
|
|
|
|
September 30, 2016 |
|
December 31, 2015** |
ASSETS |
|
(unaudited) |
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
$ |
16,614 |
$ |
38,388 |
Vessels' net book value |
|
250,701 |
|
384,549 |
Other fixed assets, net |
|
959 |
|
987 |
Prepaid charter revenue |
|
102 |
|
3,798 |
Other assets |
|
7,561 |
|
8,001 |
|
Total assets |
$ |
275,937 |
$ |
435,723 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
Bank debt, net of unamortized deferred financing
costs |
$ |
127,060 |
$ |
142,678 |
Related party financing |
|
45,617 |
|
48,950 |
Other liabilities |
|
4,180 |
|
4,921 |
Total stockholders' equity |
|
99,080 |
|
239,174 |
|
Total liabilities and stockholders' equity |
$ |
275,937 |
$ |
435,723 |
|
|
|
|
|
|
** The
balance sheet data as of December 31, 2015 has been derived from
the audited consolidated financial statements at that date. |
OTHER FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net Cash provided by / (used in) Operating
Activities |
$ |
|
(2,049 |
) |
$ |
|
3,882 |
|
$ |
|
(6,392 |
) |
$ |
|
12,945 |
|
Net Cash provided by / (used in) Investing
Activities |
|
|
(6 |
) |
|
|
(33,995 |
) |
|
|
4,301 |
|
|
|
(76,974 |
) |
Net Cash provided by/ (used in) Financing
Activities |
|
|
(9,121 |
) |
|
|
21,307 |
|
|
|
(19,683 |
) |
|
|
20,938 |
|
Corporate Contact:
Ioannis Zafirakis
Director, Chief Operating Officer and Secretary
Telephone: + 30-216-600-2400
Email: izafirakis@dcontainerships.com
Website: www.dcontainerships.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
Performance Shipping (NASDAQ:DCIX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Performance Shipping (NASDAQ:DCIX)
Historical Stock Chart
From Apr 2023 to Apr 2024