Diana Containerships today reported a net loss of $31.8 million in the first quarter of 2013, compared with a net income of $1.9 million in the first quarter of 2012.
The decrease resulted from a non-cash impairment loss of $32.6 million recorded during the quarter for the vessels Maersk Madrid, Maersk Malacca and Maersk Merlion, without which the first quarter of 2013 would be a profit of $0.8 million, the Greek container ship operator said in a written statement.
Time-charter revenue totaled $15.1 million in the first quarter, up from $12.4 million in the same period last year, driven by increases in the number of vessels in the fleet following the delivery of the Cap Domingo, Cap Doukato, APL Sardonyx, APL Spinel and APL Garnet in 2012, as well as the delivery of the Hanjin Malta in March 2013, according to Diana Containerships.
The company also announced that, through a wholly owned subsidiary, it has entered into a loan agreement with Diana Shipping, pursuant to which Diana Shipping has agreed to loan the company up to $50 million to fund vessel acquisitions and for general corporate purposes.
In addition, Diana Containerships has signed, through a separate wholly owned subsidiary, a memorandum of agreement to sell to an unaffiliated third party the Merlion vessel for demolition, with delivery due to the buyers by early June for about $10 million before commissions. Upon completion of the sale, as well as the previously announced sale of Malacca, Diana Containerships’ fleet will consist of eight Panamax container vessels.