BOX Ships Inc, an Athens, Greece-based international shipping company specialising in the transportation of containers, has announced fourth quarter, ended December 31, 2013, net income rose to US$3.016 million, up from $2.87 million for the same quarter a year earlier.
Fourth quarter time charter revenues amounted to $17.25 million, down from $18.05 million in the fourth quarter of 2012, a company statement posted by PRNewswire said.
Net revenues for the fourth quarter of $16.9 million were down 4.5 per cent compared to the fourth quarter of 2012 mainly due to 31 idle days of ship, the Box Queen, in the fourth quarter of 2013.
Full-year 2013 net income rose 14 per cent year on year to $15.31 million on time charter revenues of $71.3 million, up 5.6 per cent.
Commenting on the results, chairman, president and chief executive officer Michael Bodouroglou said, "The fourth quarter of 2013 was a challenging one, despite being our eleventh consecutive profitable quarter as a public company."
"The containership market continues to be pressured by the extended weakness in Europe and the United States, and charter rates have continued to decline during the fourth quarter."
The average time charter rate for the fourth quarter of 2013 was $20,591 per vessel per day, down 3.2 per cent year on year.
Mr Bodouroglou explained that the Box Queen (formerly known as the Maersk Diadema) was redelivered to the company upon expiration of its time charter with Maersk and was subsequently rechartered to MSC at a rate that was $21,900 per day less than its previous employment."
Two other vessels, the CMA CGM Kingfish and CMA CGM Marlin, both extended their charters with CMA CGM for a period of four to seven months "at a rate, which is $16,000 per day less than their previous employment," he said.
"This continued decline in rates, coupled with the fact that we have another vessel employed at a charter rate well above the current market levels expiring in 2014, has caused the board of directors to refrain from paying a common stock dividend with respect to the fourth quarter of 2013 in an effort to maintain our liquidity and ensure the sustainability of the company going forward," said Mr Bodouroglou.
During the fourth quarter of 2013, the company operated an average of nine vessels with a total carrying capacity of 43,925 TEU and average age of nine years.
Box Ships Inc was formed by Paragon Shipping Inc, a global provider of shipping transportation services specialising in transporting dry bulk cargoes.
WORLD SHIPPING
16 March 2014 - 22:32
Box Ships posts 4Q earnings of US$3 million, as revenue falls 4.5pc
BOX Ships Inc, an Athens, Greece-based international shipping company specialising in the transportation of containers, has announced fourth quarter, ended December 31, 2013, net income rose to US$3.016 million, up from $2.87 million for the same quarter a year earlier.
WORLD SHIPPING
16 March 2014 - 22:32
Box Ships posts 4Q earnings of US$3 million, as revenue falls 4.5pc
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