Diana Containerships swings back to the black with Q2 profit of US$36m
NASDAQ-LISTED and Greece-headquartered Diana Containerships swung to a net income of $36.5 million in the second quarter from a net loss of $8 million a year earlier, helped by a debt write-off agreement with a bank.
The ship owner's net charter revenue slipped to $5.5 million from $8 million in the second quarter of 2016, mainly due to reduced employment opportunities and lower time-charter rates.
The Athens-based company posted net income of $29.1 million in the first half of the year compared with a year-earlier loss of $13.8 million, but time charter revenue declined to $9.3 million from $19.8 million.
Diana Containerships' agreement with the Royal Bank of Scotland on June 30 involved an $85 million payment for a full and final settlement of a $148 million loan, which had an outstanding balance of $128.9 million.
The company refinanced the loan with a $35 million loan from Addiewell Ltd, a $40 million loan from its parent Diana Shipping, and $10 million of available cash.
Diana Containerships owns 11 vessels - five Panamax and six post-Panamax - ranging from a 3,426 TEU ship chartered to German carrier Hapag-Lloyd to a 6,541 TEU vessel chartered by Hong Kong-based OOCL, according to IHS Media.