Diana Containerships Inc. (NASDAQ:DCIX), (the “Company”), a global
shipping company specializing in the ownership of containerships,
today reported a net loss of $8.7 million for the third quarter of
2017, compared to a net loss of $126.8 million for the same period
of 2016. The loss for the third quarter of 2016 reflected the
result of impairment charges for seven of the Company’s vessels.
Time charter revenues, net of prepaid charter
revenue amortization, were $6.7 million for the third quarter of
2017, compared to $8.0 million for the same period of 2016, mainly
due to the sale of the vessels Angeles in November 2016 and Doukato
in June 2017. This decrease was counterbalanced by the increase of
revenues generated by the improvement of the Company’s fleet
utilization and the decrease of off-hire days in the third quarter
of 2017 compared to the same period of 2016.
Net income for the nine months ended September
30, 2017 amounted to $20.4 million, compared to a net loss of
$140.6 million for the same period of 2016. The net income for the
nine months ended September 30, 2017 reflected 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. The loss for the
nine months ended September 30, 2016 reflected the result of
impairment charges for seven of the Company’s vessels. Time charter
revenues, net of prepaid charter revenue amortization, for the nine
months ended September 30, 2017, amounted to $16.0 million,
compared to $27.7 million for the same period of 2016.
|
|
Fleet Employment Profile (As of November 15,
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 |
|
$9,500 |
1.25 |
% |
Hapag-Lloyd AG |
11-May-17 |
15-Aug-17 |
|
|
A |
|
|
|
|
|
2010 3,426 |
|
$8,400 |
1.25 |
% |
15-Aug-17 |
26-Nov-17 - 15-Mar-18 |
1 |
CENTAURUS |
|
$5,500 |
3.50 |
% |
CMA CGM |
22-Nov-16 |
23-Aug-17 |
|
|
A |
|
|
|
|
|
2010 3,426 |
|
$7,950 |
3.50 |
% |
23-Aug-17 |
23-Apr-18 - 23-Aug-18 |
|
NEW JERSEY |
|
|
|
|
|
|
2 |
(ex YM
New Jersey) |
|
|
- |
- |
|
- |
- |
-
- - |
2006 4,923 |
|
|
|
|
|
|
PAMINA |
|
|
|
Orient Overseas Container Line Ltd. |
|
|
|
(ex Santa
Pamina) |
|
$9,500 |
3.75 |
% |
12-Sep-17 |
12-Apr-18 - 12-Sep-18 |
3 |
2005 5,042 |
|
|
|
|
|
|
|
DOMINGO |
|
$6,000 |
5.00 |
% |
Nile Dutch Africa Line B.V. |
28-Feb-17 |
19-Aug-17 |
4 |
(ex Cap
Domingo) |
|
|
|
|
|
|
2001 3,739 |
|
$8,500 |
3.50 |
% |
CMA CGM |
14-Sep-17 |
14-May-18 - 14-Aug-18 |
|
|
|
|
|
|
|
|
|
6 Post - Panamax Container
Vessels |
|
|
|
|
|
|
|
|
PUELO |
|
$14,600 |
1.25 |
% |
Mitsui O.S.K. Lines, Ltd. |
12-Jun-17 |
1-Aug-17 |
|
|
B |
|
|
|
|
|
2006 6,541 |
|
|
$10,600/$12,000 |
5.00 |
% |
Maersk Lines A/S |
1-Aug-17 |
1-Apr-18 - 1-Feb-19 |
5 |
PUCON |
|
|
|
Orient Overseas Container Line Ltd. |
|
|
|
2006 6,541 |
B |
$10,750 |
3.75 |
% |
27-Apr-17 |
27-Apr-18 - 26-Jun-18 |
|
MARCH |
|
|
|
|
|
|
|
(ex YM
March) |
C |
$6,850 |
1.25 |
% |
Hapag-Lloyd AG |
15-Feb-17 |
25-Nov-17 - 25-Apr-18 |
6 |
2004 5,576 |
|
|
|
|
|
|
|
GREAT |
|
|
|
Orient Overseas Container Line Ltd. |
|
|
|
(ex YM
Great) |
C |
$7,300 |
3.75 |
% |
8-Apr-17 |
8-Jan-18 - 8-Apr-18 |
|
2004 5,576 |
|
|
|
|
|
|
|
HAMBURG |
|
|
|
|
|
|
|
2009 6,494 |
D |
$6,700 |
3.50 |
% |
CMA CGM |
9-Jan-17 |
18-Nov-17 |
1 |
ROTTERDAM |
|
|
|
|
|
|
|
2008 6,494 |
D |
$6,890 |
3.50 |
% |
CMA CGM |
7-Mar-17 |
26-Nov-17 - 7-Feb-18 |
1 |
* 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 As of October 11, 2016, vessel has been placed into lay-up,
in Malaysia. |
3 Vessel was in lay-up in Malaysia from October 10, 2016 to
August 30, 2017. |
4 The Company had 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. |
5 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. |
6 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 September
30, |
|
For the nine months ended September
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 |
$ |
6,728 |
|
$ |
7,983 |
|
$ |
16,001 |
|
$ |
27,747 |
|
|
Voyage
expenses |
|
350 |
|
|
834 |
|
|
1,364 |
|
|
2,785 |
|
|
Vessel
operating expenses |
|
6,084 |
|
|
7,918 |
|
|
17,201 |
|
|
24,696 |
|
|
Net
income / (loss) |
|
(8,722 |
) |
|
(126,778 |
) |
|
20,403 |
|
|
(140,556 |
) |
FLEET DATA |
|
Average
number of vessels |
|
11.0 |
|
|
13.0 |
|
|
11.6 |
|
|
13.2 |
|
|
Number of
vessels |
|
11.0 |
|
|
13.0 |
|
|
11.0 |
|
|
13.0 |
|
|
Ownership
days |
|
1,012 |
|
|
1,196 |
|
|
3,166 |
|
|
3,630 |
|
|
Available
days |
|
1,012 |
|
|
1,196 |
|
|
3,143 |
|
|
3,585 |
|
|
Operating
days |
|
820 |
|
|
899 |
|
|
2,244 |
|
|
2,650 |
|
|
Fleet
utilization |
|
81.0 |
% |
|
75.2 |
% |
|
71.4 |
% |
|
73.9 |
% |
AVERAGE DAILY RESULTS |
|
Time
charter equivalent (TCE) rate (1) |
$ |
6,302 |
|
$ |
5,977 |
|
$ |
4,657 |
|
$ |
6,963 |
|
|
Daily
vessel operating expenses (2) |
$ |
6,012 |
|
$ |
6,620 |
|
$ |
5,433 |
|
$ |
6,803 |
|
_____________________
(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, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
REVENUES: |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Time
charter revenues |
$ |
6,728 |
|
$ |
8,970 |
|
$ |
16,001 |
|
$ |
31,443 |
|
|
Prepaid
charter revenue amortization |
|
- |
|
|
(987 |
) |
|
- |
|
|
(3,696 |
) |
|
Time
charter revenues, net |
|
6,728 |
|
|
7,983 |
|
|
16,001 |
|
|
27,747 |
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
350 |
|
|
834 |
|
|
1,364 |
|
|
2,785 |
|
|
Vessel
operating expenses |
|
6,084 |
|
|
7,918 |
|
|
17,201 |
|
|
24,696 |
|
|
Depreciation and amortization of deferred charges |
|
2,061 |
|
|
3,597 |
|
|
6,086 |
|
|
10,704 |
|
|
General
and administrative expenses |
|
1,870 |
|
|
1,732 |
|
|
5,159 |
|
|
5,454 |
|
|
Impairment losses |
|
- |
|
|
118,861 |
|
|
- |
|
|
118,861 |
|
|
(Gain) /
Loss on vessels' sale |
|
- |
|
|
- |
|
|
(945 |
) |
|
497 |
|
|
Foreign
currency losses |
|
22 |
|
|
58 |
|
|
31 |
|
|
143 |
|
|
Operating loss |
|
(3,659 |
) |
|
(125,017 |
) |
|
(12,895 |
) |
|
(135,393 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME / (EXPENSES): |
|
|
|
|
|
|
|
|
|
Interest
and finance costs |
|
(5,080 |
) |
|
(1,792 |
) |
|
(8,958 |
) |
|
(5,259 |
) |
|
Interest
income |
|
17 |
|
|
31 |
|
|
71 |
|
|
96 |
|
|
Gain from
bank debt write off |
|
- |
|
|
- |
|
|
42,185 |
|
|
- |
|
|
Total other income / (expenses), net |
|
(5,063 |
) |
|
(1,761 |
) |
|
33,298 |
|
|
(5,163 |
) |
|
|
|
|
|
|
|
|
|
|
Net income / (loss) |
$ |
(8,722 |
) |
$ |
(126,778 |
) |
$ |
20,403 |
|
$ |
(140,556 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss) per common share, basic
* |
$ |
(128.67 |
) |
$ |
(85,660.81 |
) |
$ |
847.05 |
|
$ |
(95,098.78 |
) |
|
|
|
|
|
|
|
|
|
Earnings/ (Loss) per common share, diluted
* |
$ |
(128.67 |
) |
$ |
(85,660.81 |
) |
$ |
845.02 |
|
$ |
(95,098.78 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares, basic
* |
|
67,784 |
|
|
1,480 |
|
|
24,074 |
|
|
1,478 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares, diluted
* |
|
67,784 |
|
|
1,480 |
|
|
24,132 |
|
|
1,478 |
|
|
|
|
|
|
|
|
|
|
|
|
* Adjusted to give effect to the reverse stock splits that
became effective on July 5, July 27, August 24, September 25 and
November 2, 2017. |
|
|
|
|
|
|
|
|
|
|
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME / (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net income / (loss) |
$ |
(8,722 |
) |
$ |
(126,778 |
) |
$ |
20,403 |
|
$ |
(140,556 |
) |
|
|
|
|
|
|
|
|
|
|
Comprehensive income / (loss) |
$ |
(8,722 |
) |
$ |
(126,778 |
) |
$ |
20,403 |
|
$ |
(140,556 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET
DATA |
|
|
(Expressed in thousands of US Dollars) |
|
|
|
|
|
September 30, 2017 |
|
December 31, 2016** |
ASSETS |
|
(unaudited) |
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
$ |
8,181 |
$ |
17,316 |
Vessels' net book value |
|
229,903 |
|
240,352 |
Other fixed assets, net |
|
922 |
|
946 |
Other assets |
|
5,712 |
|
7,917 |
|
Total assets |
$ |
244,718 |
$ |
266,531 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
Bank and other debt, net of unamortized deferred
financing costs |
$ |
28,219 |
$ |
127,129 |
Related party financing, net of unamortized deferred
financing costs |
|
83,651 |
|
45,617 |
Other liabilities |
|
3,841 |
|
2,905 |
Total stockholders' equity |
|
129,007 |
|
90,880 |
|
Total liabilities and stockholders' equity |
$ |
244,718 |
$ |
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 September
30, |
|
For the nine months ended September
30, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net Cash used in Operating Activities |
$ |
(3,033 |
) |
$ |
(2,049 |
) |
$ |
(11,061 |
) |
$ |
(6,392 |
) |
Net Cash provided by / (used in) Investing
Activities |
|
(3 |
) |
|
(6 |
) |
|
6,666 |
|
|
4,301 |
|
Net Cash provided by / (used in) Financing
Activities |
|
(350 |
) |
|
(9,121 |
) |
|
4,260 |
|
|
(19,683 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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