Low Rates Lead Diana Containerships to 1Q Loss
- Business & Finance
Greek-based containership owner Diana Containerships widened its net loss in the first quarter of this year, reaching USD 7.4 million, compared to a net loss of USD 5.8 million seen in the respective period of 2016.
Time charter revenues, net of prepaid charter revenue amortization, were USD 3.8 million in the three-month period of 2017, compared to USD 11.8 million in 1Q 2016.
As disclosed, revenues dropped mainly due to reduced employment opportunities and time charter equivalent (TCE) rates.
During the quarter, TCE rates decreased to USD 3,067 from USD 8,905 recorded in the same period a year earlier.
In February, Diana Containerships entered into a time charter contract with French shipping company CMA CGM for one of its Post-Panamax vessels, M/V Rotterdam. The gross charter rate is USD 6,890 per day for a period of minimum eight to maximum eleven months and the charter commenced on March 7.
In March, the company secured a time charter deal for its 6,541 TEU boxship M/V Pucon. Under the deal signed between Diana Containerships and Hong Kong-based shipping company Orient Overseas Container Line (OOCL), the 2006-built Pucon is deployed at a gross charter rate of USD 10,750 per day for a period of twelve to fourteen months.
The company also found work for one of its Panamax container vessels, the 3,426 TEU M/V Sagitta. On May 12, the vessel started to work for German container liner Hapag-Lloyd. The gross charter rate is USD 9,500 per day for a period of up to minimum July 7, 2017, to maximum August 15, 2017.
World Maritime News reported in March that Diana Containerships entered into a securities purchase agreement with Kalani Investments Limited targeting USD 150 million in net proceeds.
“The company intends to use the net proceeds from the sale of the offered securities for general corporate purposes and/or to repay indebtedness under one or more of our existing credit facilities,” the company said earlier, announcing the deal.
As of March 22, 2017, Diana Containerships owned and operated twelve container vessels – six Post-Panamaxes and six Panamaxes.