Diana Containerships Inc. (NASDAQ:DCIX), (the “Company”), a global
shipping company specializing in the ownership of containerships,
today reported net income of $36.5 million, and earnings per common
share of $18.39 (basic) and $17.27 (diluted) for the second quarter
of 2017, compared to a net loss of $8.0 million, and a loss per
common share of $6.13 (basic and diluted) for the same period in
2016. Net income for the second quarter of 2017 included a gain
from a debt write-off, arising from the settlement agreement with
respect to the secured loan facility with The Royal Bank of
Scotland plc (“RBS”), which was signed on June 30, 2017. The
specific gain, net of related expenses, amounted to $42.2 million.
As of June 30, 2017 and following the
aforementioned settlement agreement, the Company had a cash balance
of $11.6 million and outstanding debt balance, net of unamortized
deferred financing costs, of $117.2 million, compared to a cash
balance of $17.3 million and outstanding debt balance, net of
unamortized deferred financing costs, of $172.7 million as of
December 31, 2016.
Time charter revenues, net of prepaid charter
revenue amortization, were $5.5 million for the second quarter of
2017, compared to $8.0 million for the same period in 2016, mainly
due to reduced employment opportunities and lower time charter
rates.
Net income for the six months ended June 30,
2017 amounted to $29.1 million, and earnings per common share of
$17.53 (basic) and $16.84 (diluted), compared to a net loss of
$13.8 million, and a loss per common share of $10.55 (basic and
diluted) for the same period in 2016. Net income for the six months
ended June 30, 2017 included a gain from the RBS loan write-off,
which amounted to $42.2 million, net of related expenses.
Time charter revenues, net of prepaid charter revenue amortization,
for the six months ended June 30, 2017, amounted to $9.3 million,
compared to $19.8 million for the same period in 2016.
|
|
Fleet Employment Profile (As of July 21,
2017) |
|
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 |
5 Panamax Container Vessels |
|
|
|
|
|
|
|
|
SAGITTA |
|
$5,775 |
3.50 |
% |
CMA CGM |
24-Jan-17 |
21-Apr-17 |
1 |
|
A |
|
|
|
|
|
|
2010 3,426 |
|
$9,500 |
1.25 |
% |
Hapag-Lloyd AG |
11-May-17 |
1-Aug-17 - 15-Aug-17 |
2 |
CENTAURUS |
|
$5,500 |
3.50 |
% |
CMA CGM |
22-Nov-16 |
23-Aug-17 |
3 |
|
A |
|
|
|
|
2010 3,426 |
|
$7,950 |
3.50 |
% |
|
23-Aug-17 |
23-Apr-18 - 23-Aug-18 |
|
NEW
JERSEY |
|
- |
- |
|
- |
- |
- - - |
4 |
(ex YM
New Jersey) |
|
|
|
|
|
|
|
2006 4,923 |
|
|
|
|
|
|
|
PAMINA |
|
- |
- |
|
- |
- |
- - - |
5 |
(ex Santa
Pamina) |
|
|
|
|
|
|
|
2005 5,042 |
|
|
|
|
|
|
|
DOMINGO |
|
|
|
Nile Dutch Africa Line B.V. |
|
|
|
(ex Cap
Domingo) |
B |
$6,000 |
5.00 |
% |
28-Feb-17 |
31-Jul-17 - 28-Dec-17 |
2,6 |
2001 3,739 |
|
|
|
|
|
|
|
DOUKATO |
|
|
|
VASI Shipping Pte. Ltd. |
|
|
|
(ex Cap
Doukato) |
B |
- |
- |
|
17-Feb-17 |
17-Apr-17 |
7,8 |
2002 3,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Post - Panamax Container
Vessels |
|
|
|
|
|
|
|
|
PUELO |
C |
$6,500 |
3.75 |
% |
MSC-Mediterranean Shipping Co. S.A., Geneva |
17-May-16 |
1-Jun-17 |
|
|
|
$14,600 |
1.25 |
% |
Mitsui O.S.K. Lines, Ltd. |
12-Jun-17 |
2-Aug-17 |
9 |
2006 6,541 |
|
$10,600/$12,000 |
5.00 |
% |
Maersk Lines S/A |
2-Aug-17 |
2-Apr-18 - 2-Feb-19 |
10,11 |
PUCON |
C |
$10,750 |
3.75 |
% |
Orient Overseas Container Line Ltd. |
27-Apr-17 |
27-Apr-18 - 26-Jun-18 |
12 |
2006 6,541 |
|
|
|
|
|
|
|
MARCH |
|
|
|
|
|
|
|
(ex YM
March) |
D |
$6,850 |
1.25 |
% |
Hapag-Lloyd AG |
15-Feb-17 |
25-Nov-17 - 25-Apr-18 |
13 |
2004 5,576 |
|
|
|
|
|
|
|
GREAT |
D |
$7,300 |
3.75 |
% |
Orient Overseas Container Line Ltd. |
8-Apr-17 |
8-Jan-18 - 8-Apr-18 |
|
(ex YM
Great) |
|
|
|
|
|
|
|
2004 5,576 |
|
|
|
|
|
|
|
HAMBURG |
E |
$6,700 |
3.50 |
% |
CMA CGM |
9-Jan-17 |
1-Aug-17 - 9-Dec-17 |
2 |
2009 6,494 |
|
|
|
|
|
|
|
ROTTERDAM |
E |
$6,890 |
3.50 |
% |
CMA CGM |
7-Mar-17 |
7-Nov-17 - 7-Feb-18 |
|
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 In January 2017, the Company agreed to extend as from
January 24, 2017 the previous charter party with CMA CGM for a
period of minimum 2 months to maximum 4 months at a gross charter
rate of US$5,775 per day. |
2 Based on latest information. |
3 Estimated date. |
4 As of October 11, 2016, vessel has been placed into lay-up,
in Malaysia. |
5 As of October 10, 2016, vessel has been placed into lay-up,
in Malaysia. |
6 The Company has the option to withdraw the vessel any time
after the completion of the first 6 months charter period against a
60 day Notice of Withdrawal from service to be tendered from
Owners earliest 4 months after delivery. |
7 Repositioning trip. Charterers to supply 1600 mts IFO 380
cst and 85 mts MGO for SECA areas fuel at the time of delivery.
This will be the maximum required quantity on charterers' account
for the trip from UK / Continent up to redelivery China. In case
that vessel will burn less quantities than the supplied ones, then
Company to refund charterers with the difference between the
supplied and the actual consumed quantity. After 54 days,
charterers will pay US$5,500 per day until redelivery of the
vessel. Total commission paid to third parties US$5,000. |
8 "Doukato" sold and delivered to her new owners on June 13,
2017. |
9 Redelivery date based on an estimated time charter trip
duration of about 50 days. |
10 Estimated delivery date to the charterers. |
11 The gross charter rate is US$10,600 per day for the first
eight (8) months of the charter period and US$12,000 per day for
the balance period of the time charter. The charterer has the
option to redeliver the vessel any time between April 2, 2018 to
February 2, 2019. |
12 Vessel on scheduled drydocking from April 3, 2017 to April
26, 2017. |
13 Charterers will pay US$1 per day for the first 15 days of
the charter period. |
Summary of Selected Financial & Other
Data |
|
|
|
For the three months ended June
30, |
|
For the six months ended June 30, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
STATEMENT OF OPERATIONS DATA (in thousands of US
Dollars): |
|
Time
charter revenues, net of prepaid charter revenue amortization |
$ |
5,498 |
|
$ |
7,999 |
|
$ |
9,273 |
|
$ |
19,764 |
|
|
Voyage
expenses |
|
550 |
|
|
926 |
|
|
1,013 |
|
|
1,951 |
|
|
Vessel
operating expenses |
|
5,915 |
|
|
7,888 |
|
|
11,117 |
|
|
16,778 |
|
|
Net
income / (loss) |
|
36,517 |
|
|
(8,011 |
) |
|
29,124 |
|
|
(13,777 |
) |
FLEET DATA |
|
Average
number of vessels |
|
11.8 |
|
|
13.0 |
|
|
11.9 |
|
|
13.4 |
|
|
Number of
vessels |
|
11.0 |
|
|
13.0 |
|
|
11.0 |
|
|
13.0 |
|
|
Ownership
days |
|
1,074 |
|
|
1,183 |
|
|
2,154 |
|
|
2,434 |
|
|
Available
days |
|
1,051 |
|
|
1,183 |
|
|
2,131 |
|
|
2,389 |
|
|
Operating
days |
|
771 |
|
|
797 |
|
|
1,423 |
|
|
1,751 |
|
|
Fleet
utilization |
|
73.4 |
% |
|
67.4 |
% |
|
66.8 |
% |
|
73.3 |
% |
AVERAGE DAILY RESULTS |
|
Time
charter equivalent (TCE) rate (1) |
$ |
4,708 |
|
$ |
5,979 |
|
$ |
3,876 |
|
$ |
7,456 |
|
|
Daily
vessel operating expenses (2) |
$ |
5,507 |
|
$ |
6,668 |
|
$ |
5,161 |
|
$ |
6,893 |
|
_____________________
(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, lay-up expenses 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 Tuesday, July 25, 2017.
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 13665615.
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 June
30, |
|
For the six months ended June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
REVENUES: |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Time
charter revenues |
$ |
5,498 |
|
$ |
9,010 |
|
$ |
9,273 |
|
$ |
22,473 |
|
|
Prepaid
charter revenue amortization |
|
- |
|
|
(1,011 |
) |
|
- |
|
|
(2,709 |
) |
|
Time
charter revenues, net |
|
5,498 |
|
|
7,999 |
|
|
9,273 |
|
|
19,764 |
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
550 |
|
|
926 |
|
|
1,013 |
|
|
1,951 |
|
|
Vessel
operating expenses |
|
5,915 |
|
|
7,888 |
|
|
11,117 |
|
|
16,778 |
|
|
Depreciation and amortization of deferred charges |
|
2,032 |
|
|
3,559 |
|
|
4,026 |
|
|
7,107 |
|
|
General
and administrative expenses |
|
1,650 |
|
|
1,883 |
|
|
3,289 |
|
|
3,721 |
|
|
(Gain) /
Loss on vessels' sale |
|
(945 |
) |
|
- |
|
|
(945 |
) |
|
497 |
|
|
Foreign
currency losses |
|
1 |
|
|
55 |
|
|
9 |
|
|
85 |
|
|
Operating loss |
|
(3,705 |
) |
|
(6,312 |
) |
|
(9,236 |
) |
|
(10,375 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME / (EXPENSES): |
|
|
|
|
|
|
|
|
|
Interest
and finance costs |
|
(2,001 |
) |
|
(1,731 |
) |
|
(3,878 |
) |
|
(3,466 |
) |
|
Interest
income |
|
38 |
|
|
32 |
|
|
53 |
|
|
64 |
|
|
Gain from
bank debt write off |
|
42,185 |
|
|
- |
|
|
42,185 |
|
|
- |
|
|
Total other income / (expenses), net |
|
40,222 |
|
|
(1,699 |
) |
|
38,360 |
|
|
(3,402 |
) |
|
|
|
|
|
|
|
|
|
|
Net income / (loss) |
$ |
36,517 |
|
$ |
(8,011 |
) |
$ |
29,124 |
|
$ |
(13,777 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss) per common share, basic
* |
$ |
18.39 |
|
$ |
(6.13 |
) |
$ |
17.53 |
|
$ |
(10.55 |
) |
|
|
|
|
|
|
|
|
|
Earnings/ (Loss) per common share, diluted
* |
$ |
17.27 |
|
$ |
(6.13 |
) |
$ |
16.84 |
|
$ |
(10.55 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares, basic
* |
|
1,969,781 |
|
|
1,307,744 |
|
|
1,645,467 |
|
|
1,305,802 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares, diluted
* |
|
2,098,297 |
|
|
1,307,744 |
|
|
1,713,630 |
|
|
1,305,802 |
|
|
|
|
|
|
|
|
|
|
|
|
* Adjusted to give effect to the 1 for 7 reverse stock split
that became effective on July 5, 2017. |
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME / (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June
30, |
|
For the six months ended June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net income / (loss) |
$ |
36,517 |
|
$ |
(8,011 |
) |
$ |
29,124 |
|
$ |
(13,777 |
) |
|
|
|
|
|
|
|
|
|
|
Comprehensive income / (loss) |
$ |
36,517 |
|
$ |
(8,011 |
) |
$ |
29,124 |
|
$ |
(13,777 |
) |
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
DATA |
|
|
(Expressed in thousands of US Dollars) |
|
|
|
|
|
June 30, 2017 |
|
December 31, 2016** |
ASSETS |
|
(unaudited) |
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
$ |
11,567 |
$ |
17,316 |
Vessels' net book value |
|
231,756 |
|
240,352 |
Other fixed assets, net |
|
931 |
|
946 |
Other assets |
|
6,566 |
|
7,917 |
|
Total assets |
$ |
250,820 |
$ |
266,531 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
Bank and other debt, net of unamortized deferred
financing costs |
$ |
34,763 |
$ |
127,129 |
Related party financing, net of unamortized deferred
financing costs |
|
82,453 |
|
45,617 |
Other liabilities |
|
4,498 |
|
2,905 |
Total stockholders' equity |
|
129,106 |
|
90,880 |
|
Total liabilities and stockholders' equity |
$ |
250,820 |
$ |
266,531 |
|
|
|
|
|
|
** The balance sheet data as of December 31, 2016 has been
derived from the audited consolidated financial statements at that
date. |
OTHER FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June
30, |
|
For the six months ended June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net Cash used in Operating Activities |
$ |
(4,347 |
) |
$ |
(3,508 |
) |
$ |
(8,028 |
) |
$ |
(4,343 |
) |
Net Cash provided by / (used in) Investing
Activities |
|
5,884 |
|
|
(18 |
) |
|
6,669 |
|
|
4,307 |
|
Net Cash provided by / (used in) Financing
Activities |
|
(22 |
) |
|
(5,281 |
) |
|
4,610 |
|
|
(10,562 |
) |
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
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