Diana Containerships Inc. (NASDAQ: DCIX), (the “Company”), a global
shipping company specializing in the ownership of containerships,
today reported a net loss of $6.3 million for the third quarter of
2018, compared to a net loss of $8.7 million for the same period of
2017. The loss for the third quarter of 2018 mainly includes
$4.8 million of impairment charges for one vessel.
Time charter revenues were $5.2 million for the
third quarter of 2018, compared to $6.7 million for the same period
of 2017. This decrease was primarily due to the shrinkage of the
Company’s fleet, and was partially offset by the increased time
charter rates achieved as a result of improved market
conditions.
Net loss for the nine months ended September 30,
2018 amounted to $52.5 million, compared to net income of $20.4
million for the nine months ended September 30, 2017. The loss for
the nine months ended September 30, 2018 includes $20.4 million of
impairment charges for two vessels and $16.7 million of aggregate
loss on sale of seven vessels. Net income for the nine months ended
September 30, 2017 included a gain of $42.2 million, net of related
expenses, 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.
Time charter revenues for the nine months ended September 30, 2018,
amounted to $19.5 million, compared to $16.0 million for the nine
months ended September 30, 2017.
As of November 21, 2018, the Company had
14,463,231 shares of common stock issued and outstanding.
Fleet Employment Profile (As of November 23,
2018) |
|
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 |
2 Panamax Container Vessels |
|
|
|
|
|
|
|
|
PAMINA |
|
$9,500 |
3.75% |
|
Orient Overseas Container Line Ltd. |
12-Sep-17 |
16-Aug-18 |
|
(ex Santa
Pamina) |
|
|
|
|
|
|
|
|
|
$11,950 |
5.00% |
|
Hyundai Merchant Marine Co., Ltd. |
23-Aug-18 |
23-Apr-19 - 23-Aug-19 |
|
2005 5,042 |
|
|
|
|
|
|
DOMINGO |
|
$8,500 |
3.50% |
|
CMA CGM |
14-Sep-17 |
3-Aug-18 |
|
(ex Cap
Domingo) |
|
|
|
|
|
|
|
|
$12,800 |
3.50% |
|
3-Aug-18 |
3-Apr-19 - 3-Jul-19 |
|
2001 3,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Post - Panamax Container
Vessels |
|
|
|
|
|
|
|
|
PUCON |
|
$18,000 |
3.75% |
|
Orient Overseas Container Line Ltd. |
21-Jun-18 |
21-Feb-19 - 21-Jun-19 |
|
2006 6,541 |
|
|
|
|
|
|
HAMBURG |
A |
$11,000 |
3.75% |
|
Wan Hai Lines (Singapore) Pte Ltd. |
1-Dec-17 |
20-Jul-18 |
1,2 |
2009 6,494 |
|
|
|
|
|
|
ROTTERDAM |
A |
$18,200 |
3.75% |
|
Wan Hai Lines (Singapore) Pte Ltd. |
12-Jul-18 |
15-Apr-19 - 15-Jul-19 |
3 |
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 "Hamburg" sold and delivered to her new owners on July 20,
2018. |
2 Owners and charterers mutually agreed to extend the maximum
redelivery date to July 20, 2018. |
3 Vessel on scheduled drydocking from June 19, 2018 to July
11, 2018. |
Summary of Selected Financial & Other
Data |
|
|
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
STATEMENT OF OPERATIONS DATA (in thousands of US
Dollars): |
|
Time
charter revenues |
$ |
5,229 |
|
$ |
6,728 |
|
$ |
19,489 |
|
$ |
16,001 |
|
|
Voyage
expenses |
|
409 |
|
|
350 |
|
|
1,044 |
|
|
1,364 |
|
|
Vessel
operating expenses |
|
2,914 |
|
|
6,084 |
|
|
12,641 |
|
|
17,201 |
|
|
Net
income / (loss) |
|
(6,255 |
) |
|
(8,722 |
) |
|
(52,500 |
) |
|
20,403 |
|
FLEET DATA |
|
Average
number of vessels |
|
4.2 |
|
|
11.0 |
|
|
7.1 |
|
|
11.6 |
|
|
Number of
vessels |
|
4.0 |
|
|
11.0 |
|
|
4.0 |
|
|
11.0 |
|
|
Ownership
days |
|
388 |
|
|
1,012 |
|
|
1,939 |
|
|
3,166 |
|
|
Available
days |
|
377 |
|
|
1,012 |
|
|
1,916 |
|
|
3,143 |
|
|
Operating
days |
|
365 |
|
|
820 |
|
|
1,809 |
|
|
2,244 |
|
|
Fleet
utilization |
|
96.8 |
% |
|
81.0 |
% |
|
94.4 |
% |
|
71.4 |
% |
AVERAGE DAILY RESULTS |
|
Time
charter equivalent (TCE) rate (1) |
$ |
12,785 |
|
$ |
6,302 |
|
$ |
9,627 |
|
$ |
4,657 |
|
|
Daily
vessel operating expenses (2) |
$ |
7,510 |
|
$ |
6,012 |
|
$ |
6,519 |
|
$ |
5,433 |
|
_____________________
(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.
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, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
REVENUES: |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Time
charter revenues |
$ |
5,229 |
|
$ |
6,728 |
|
$ |
19,489 |
|
$ |
16,001 |
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
409 |
|
|
350 |
|
|
1,044 |
|
|
1,364 |
|
|
Vessel
operating expenses |
|
2,914 |
|
|
6,084 |
|
|
12,641 |
|
|
17,201 |
|
|
Depreciation and amortization of deferred charges |
|
956 |
|
|
2,061 |
|
|
4,055 |
|
|
6,086 |
|
|
General
and administrative expenses |
|
1,851 |
|
|
1,870 |
|
|
5,710 |
|
|
5,159 |
|
|
Impairment losses |
|
4,762 |
|
|
- |
|
|
20,388 |
|
|
- |
|
|
Loss /
(Gain) on vessels' sale |
|
21 |
|
|
- |
|
|
16,700 |
|
|
(945 |
) |
|
Foreign
currency (gains) / losses |
|
(1 |
) |
|
22 |
|
|
(34 |
) |
|
31 |
|
|
Operating loss |
|
(5,683 |
) |
|
(3,659 |
) |
|
(41,015 |
) |
|
(12,895 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME / (EXPENSES): |
|
|
|
|
|
|
|
|
|
Interest
and finance costs |
|
(581 |
) |
|
(5,080 |
) |
|
(11,520 |
) |
|
(8,958 |
) |
|
Interest
income |
|
9 |
|
|
17 |
|
|
35 |
|
|
71 |
|
|
Gain from
bank debt write off |
|
- |
|
|
- |
|
|
- |
|
|
42,185 |
|
|
Total other income / (expenses), net |
|
(572 |
) |
|
(5,063 |
) |
|
(11,485 |
) |
|
33,298 |
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss) |
$ |
(6,255 |
) |
$ |
(8,722 |
) |
$ |
(52,500 |
) |
$ |
20,403 |
|
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss) per common share, basic |
$ |
(0.61 |
) |
$ |
(128.67 |
) |
$ |
(6.45 |
) |
$ |
847.05 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss) per common share,
diluted |
$ |
(0.61 |
) |
$ |
(128.67 |
) |
$ |
(6.45 |
) |
$ |
845.02 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares,
basic |
|
10,253,485 |
|
|
67,784 |
|
|
8,141,811 |
|
|
24,074 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares,
diluted |
|
10,253,485 |
|
|
67,784 |
|
|
8,141,811 |
|
|
24,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME / (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net income / (loss) |
$ |
(6,255 |
) |
$ |
(8,722 |
) |
$ |
(52,500 |
) |
$ |
20,403 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income / (loss) |
$ |
(6,255 |
) |
$ |
(8,722 |
) |
$ |
(52,500 |
) |
$ |
20,403 |
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
DATA |
|
|
(Expressed in thousands of US Dollars) |
|
|
|
|
|
September
30, 2018 |
|
December
31, 2017* |
ASSETS |
|
(unaudited) |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
5,458 |
$ |
6,444 |
Vessels held for sale |
|
- |
|
18,378 |
Vessels, net |
|
86,895 |
|
201,308 |
Other fixed assets, net |
|
950 |
|
911 |
Other assets |
|
2,848 |
|
5,266 |
|
Total assets |
$ |
96,151 |
$ |
232,307 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
Unrelated party financing, net of unamortized deferred
financing costs |
$ |
- |
$ |
12,119 |
Related party financing, net of unamortized deferred
financing costs |
|
- |
|
84,832 |
Other liabilities |
|
4,478 |
|
4,584 |
Total stockholders' equity |
|
91,673 |
|
130,772 |
|
Total liabilities and stockholders' equity |
$ |
96,151 |
$ |
232,307 |
|
|
|
|
|
|
* The balance sheet data as of December 31, 2017 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, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net Cash used in Operating Activities |
$ |
(295 |
) |
$ |
(3,033 |
) |
$ |
(837 |
) |
$ |
(11,061 |
) |
Net Cash provided by / (used in) Investing
Activities |
|
19,836 |
|
|
(3 |
) |
|
92,840 |
|
|
6,666 |
|
Net Cash used in Financing Activities ** |
|
(37,447 |
) |
|
(350 |
) |
|
(92,989 |
) |
|
(4,740 |
) |
|
|
|
|
|
|
|
|
|
|
** Figures of the nine months ended September 30, 2017
were adjusted, as the Company adopted ASU No 2016-18, according to
which changes in restricted cash are not reported anymore as cash
flow activities in the statement of cash flows. |
Corporate Contact:
Ioannis Zafirakis
Director, Chief Strategy 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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