Diana Containerships reports loss in 4Q

diana-containerships

Diana Containerships, a global shipping company specializing in the ownership of containerships, reported a net loss of $8.8 million for the fourth quarter of 2015, compared to net income of $0.9 million for the respective period of 2014.

The loss for the fourth quarter was mainly the result of $6.6 million of impairment charges of the vessel Hanjin Malta, without which the result for the fourth quarter of 2015 would have been a net loss of $2.2 million.

Time charter revenues, net of prepaid charter revenue amortization, were $14.9 million for the fourth quarter of 2015, compared to $15.0 million for the same period of 2014, mainly due to reduced time charter rates and increased off-hire days, partly offset by revenues derived from the increase in ownership days resulting from the enlargement of our fleet.

Net loss for the year ended December 31, 2015 amounted to $17.5 million, compared to net income of $3.2 million for the same period of 2014. The loss for the year ended December 31, 2015, was mainly the result of $8.3 million of direct sale and other charges associated with the disposal of the vessel Garnet and $6.6 million of impairment charges of the vessel Hanjin Malta, without which the result for the period would have been a net loss of $2.6 million. Time charter revenues, net of prepaid charter revenue amortization, for the year ended December 31, 2015, amounted to $62.2 million, compared to $54.1 million for 2014.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.0025 per share with respect to the fourth quarter of 2015. The cash dividend will be payable on or around March 30, 2016 to all shareholders of record as at March 15, 2016. As of December 31, 2015, the Company had 73,890,581 shares of common stock issued and outstanding.

Fleet Employment Profile (As of March 1, 2016)
Currently 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
8 Panamax Container Vessels
SAGITTA A $ 7,825 1.25 % A.P. Møller – Maersk A/S 14-Nov-14 30-Nov-15 1,2,3
$ 6,600 5.00 % Maersk Line A/S 30-Nov-15 11-Jan-16 4
$ 5,850 3.50 % CMA CGM 27-Jan-16 27-May-16 – 27-Jan-17
2010  3,426
CENTAURUS A $ 7,650 5.00 % Maersk Line A/S 22-Feb-15 2-Oct-15 5
$ 10,875 5.00 % 2-Oct-15 2-Sep-16  2-Apr-17
2010  3,426
YM LOS ANGELES B $ 21,000 US$350
per day
Yang Ming (UK) Ltd. 9-Apr-15 19-Oct-16 – 19-Feb-17 6,7
2006  4,923
YM NEW JERSEY B $ 21,000 US$350
per day
Yang Ming (UK) Ltd. 22-Apr-15 24-Sep-16 – 24-Jan-17 6,8
2006  4,923
PAMINA $ 15,325 4.00 % Zim Integrated Shipping Services Ltd 21-May-15 21-Mar-16 – 21-Apr-16 9
(ex Santa Pamina)
2005  5,042
CAP DOMINGO C $ 9,900 3.75 % 23-Dec-14 24-Dec-15 10,11,12
(ex Cap San Marco) Rudolf A. Oetker KG
$ 6,750 3.75 % 24-Dec-15 12-Feb-16
2001  3,739
CAP DOUKATO C $ 9,900 3.75 % 23-Dec-14 23-Jan-16 10,13
(ex Cap San Raphael) Rudolf A. Oetker KG
$ 6,250 3.75 % 23-Jan-16 23-Apr-16 – 23-Jan-17
2002  3,739
HANJIN MALTA $ 25,550 US$150
per day
Hanjin Shipping Co. Ltd. 15-Mar-13 19-Feb-16 6,14,15
1993  4,024
6 Post – Panamax Container Vessels
PUELO D $ 27,900 US$150
per day
CSAV Valparaiso 23-Aug-13 2-Aug-15 16,17,18
2006  6,541
PUCON D $ 17,000 3.75 % Hapag-Lloyd AG 20-Aug-15 10-May-16 – 20-Jul-16 19,20,21
2006  6,541
MARCH E $ 9,250 5.00 % 5-Oct-15 12-Nov-15 22
(ex YM March)
$ 6,100 5.00 % Maersk Line A/S 12-Nov-15 11-Dec-15
$ 6,200 5.00 % 21-Dec-15 6-Jan-16 23
$ 6,200 5.00 % 6-Jan-16 6-Mar-16 – 6-Nov-16 24
2004  5,576
GREAT E $ 14,750 5.00 % 15-Aug-15 15-Feb-16 25
(ex YM Great) Maersk Line A/S
$ 6,000 5.00 % 15-Feb-16 15-Apr-16 – 15-Feb-17
2004  5,576
HAMBURG F $ 14,000 0 % MSC-Mediterranean
Shipping Co. S.A.,
Geneva
16-Nov-15 27-Jan-16 16
2009  6,494
ROTTERDAM F $ 6,000 5.00 % Maersk Line A/S 2-Feb-16 2-Apr-16 – 2-Feb-17
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 October 2014, the Company agreed to extend as from November 14, 2014 the previous charter party with A. P. Møller – Maersk A/S for a period of minimum 10 months to maximum 12 months at a gross charter rate of US$7,825 per day.
2 As per Novation Agreement signed in January 2015, with effect from February 1, 2015, charterers have changed to Maersk Line A/S.
3 Charterers have exercised their right to add the off-hire days and therefore the optional period has been extended up to November 30, 2015.
4 In November 2015, the Company agreed to extend as from November 30, 2015 the previous charter party with Maersk Line A/S for a period of up to minimum January 8, 2016 to maximum March 1, 2016 at a gross charter rate of US$6,600 per day.
5 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.
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 The charterer has the option to employ the vessel for a further twenty-two (22) to twenty-six (26) month period at the same daily gross charter rate less US$350 per day commission paid to third parties. The optional period if exercised will start on December 19, 2016 and must be declared six (6) months prior to this date.
8 The charterer has the option to employ the vessel for a further twenty-two (22) to twenty-six (26) month period at the same daily gross charter rate less US$350 per day commission paid to third parties. The optional period if exercised will start on November 24, 2016 and must be declared six (6) months prior to this date.
9 Based on latest information.
10 Reederei Santa Containerschiffe GmbH & Co. KG has agreed to novate the time charter contract to Rudolf A. Oetker KG.
11 In November 2015, the Company agreed to extend as from December 24, 2015 the previous charter party with Rudolf A. Oetker KG for a period of up to minimum February 10, 2016 to maximum March 25, 2016 at a gross charter rate of US$6,750 per day.
12 Currently without an active charterparty. Vessel on scheduled drydocking.
13 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.
14 Charterers have agreed to compensate the owners for the early redelivery of the vessel till the minimum agreed redelivery date, March 31, 2016.
15 Vessel sold and expected to be delivered to its new owners by the end of March 2016.
16 Currently without an active charterparty.
17 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 2, 2015 and up to February 23, 2016.
18 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 February 1, 2015, charterers have changed to Hapag-Lloyd AG.
19 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.
20 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.
21 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.
22 In November 2015, the Company agreed to extend as from November 12, 2015 the previous charter party with Maersk Line A/S for a period of minimum 21 days to maximum 180 days at a gross charter rate of US$6,100 per day.
23 Charterers will pay US$1 per day for the first 5 days of the charter period.
24 In December 2015, the Company agreed to extend as from January 6, 2016 the previous charter party with Maersk Line A/S for a period of minimum 2 months to maximum 10 months at a gross charter rate of US$6,200 per day.
25 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.
Summary of Selected Financial & Other Data
    For the three months
ended December 31,
  For the years ended December 31,
    2015   2014    2015   2014 
  (unaudited) (unaudited) (unaudited) (unaudited)
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
  Time charter revenues, net of prepaid charter revenue amortization $ 14,891 $ 15,038 $ 62,180 $ 54,068
  Voyage expenses 1,053 98 2,619 332
  Vessel operating expenses 8,967 7,768 35,847 26,559
  Net income / (loss) (8,823 ) 869 (17,531 ) 3,238
FLEET DATA
Average number of vessels 13.5 10.3 12.6 8.8
Number of vessels 14.0 11.0 14.0 11.0
Ownership days 1,242 944 4,600 3,198
Available days 1,242 944 4,515 3,198
Operating days 1,038 943 4,155 3,189
Fleet utilization 83.6 % 99.9 % 92.0 % 99.7 %
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 11,142 $ 15,826 $ 13,192 $ 16,803
Daily vessel operating expenses (2) $ 7,220 $ 8,229 $ 7,793 $ 8,305
_____________________
(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.

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