Diana containerships cuts quarterly dividend

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