Diana Containerships Reports Loss, Suspends Dividend

Diana Containerships Inc. (NASDAQ: DCIX) reported a net loss of $8 million for the second quarter of 2016, compared to a net income of $0.9 million for the respective period of 2015.

 

Time charter revenues, net of prepaid charter revenue amortization, were $8 million for the second quarter of 2016, compared to $17.3 million for the same period of 2015, mainly due to reduced employment opportunities and time charter rates which has resulted in fewer revenue generating days, partly offset by an increase in ownership days resulting from the enlargement of our fleet.

 

Net loss for the six months ended June 30, 2016 amounted to $13.8 million, compared to net income of $0.4 million for the same period of 2015. Time charter revenues, net of prepaid charter revenue amortization, for the six months ended June 30, 2016, amounted to $19.8 million, compared to $31.2 million for the same period of 2015.

 

The Company’s board of directors has determined that, based on the current container vessel charter market, it will suspend the quarterly cash dividend on its common shares effective with the quarter ended June 30, 2016.  While the Company’s historical annual cash dividend since the second quarter of 2014 has amounted to  $0.01 per common share (or $0.08 per common share adjusted to give effect to the 1 for 8 reverse stock split that became effective on June 9, 2016), the decision to suspend the dividend reflects the board’s determination that it is in the best long term interest of the Company and its shareholders to aggressively preserve liquidity to manage current market conditions and be in a position to benefit from an eventual sector recovery.