DCIX posts net loss of $0.4 million in fourth quarter

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Diana Containerships reported a net loss of $0.4 million for the fourth quarter of 2018, compared to a net loss of $16.6 million for the same period of 2017. The loss for the fourth quarter of 2018 includes $0.3 million of impairment charges for one vessel, while the loss for the fourth quarter of 2017 includes impairment losses of $8.4 million for two vessels.

Time charter revenues were $6.1 million for the fourth quarter of 2018, compared to $7.8 million for the same period of 2017. This decrease was primarily due to the decrease in size 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 year ended December 31, 2018 amounted to $52.9 million, compared to a net income of $3.8 million for the year ended December 31, 2017. The loss for the year ended December 31, 2018 includes $20.7 million of impairment charges of two vessels and $16.7 million of aggregate loss on sale of seven vessels. Net income for the year ended December 31, 2017 reflected 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 year ended December 31, 2018, amounted to $25.6 million, compared to $23.8 million for the year ended December 31, 2017.

As previously announced, in February 2018, the Company’s Board of Directors approved a one-time award of restricted common shares with an aggregate value of $5.0 million to the Company’s executive officers and non-executive directors, in recognition of the successful refinancing of the Company’s loan with the Royal Bank of Scotland in 2017, which resulted in a significant gain of $42.2 million, net of expenses. The grant date of the award was February 15, 2019, with the exact number of shares to be issued determined based on the share closing price on February 15, 2019. Pursuant to the award, one-third of the shares vested on the issuance date and the remainder will vest ratably over two years from the issuance date. On February 15, 2019, pursuant to the terms of the award, an aggregate of 5,747,786 restricted common shares were issued to the Company’s executive officers and non-executive directors.

As of February 21, 2019, the Company had 23,030,443 shares of common stock issued and outstanding.

At the Company’s annual meeting of shareholders held on February 19, 2019, the Company’s shareholders approved an amendment to the Company’s Amended and Restated Articles of Incorporation to change the name of the Company to “Performance Shipping Inc.,” which is expected to be effective as of the date hereof. The Company’s common shares will continue to trade on the Nasdaq Global Select Market under the ticker “DCIX”.

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