Based on the current container vessel charter market, Athens-based shipping company Diana Containerships Inc. made a decision to suspend the quarterly cash dividend on its common shares effective with the quarter ended June 30, 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,” Diana Containerships said.
Nasdaq-listed containership owner reported a net loss of USD 8 million for the second quarter of 2016, compared to a net income of USD 0.9 million seen in the same period a year earlier.
The company’s time charter revenues, net of prepaid charter revenue amortization, were at USD 8 million for the quarter, against USD 17.3 million reported a year earlier, 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 Diana Containerships’ fleet.
Net loss for the six months ended June 30, 2016 amounted to USD 13.8 million, compared to USD 0.4 million seen in the first half of 2015, while time charter revenues for the first half dropped to USD 19.8 million from USD 31.2 million seen in the same period of 2015.