Diana Containerships Inc. (NASDAQ:DCIX) In Focus After Q2 Profit

Diana Containerships Inc. (NASDAQ:DCIX)

Diana Containerships Inc. (NASDAQ:DCIX)

Shares of Diana Containerships Inc. (NASDAQ:DCIX) edged lower even as the shipping company reported a surprise second quarter profit $36.5 million compared to a net loss for the same period last year. The stock was down by 9.72% in Tuesday’s trading session to end the day at $0.46 a share.

Q2 Earnings

Tuesday’s sell-off added fuel to a downward trend that has pushed the stock to its all-time lows. The stock has underperformed the market over the past twelve months as it continues to trade on the lower end of $0.45-$0.83 a share trading range.   Investor sentiment has suffered on growing concerns about its debt burden.

Diana Containerships Inc. (NASDAQ:DCIX) is a Greek shipping company that operates containerships in addition to pursuing opportunities through acquisitions. The company had six Panamax containerships as of the end of last year.

The company’s Q2 net income included a gain from a debt write off on a settlement of a secured loan facility with the Royal Bank of Scotland. Net loss for the six months ended June 30, 2017, totaled (-$29.1) million compared to a net loss of (-$13.8) million for the corresponding period last year.

Time charter revenues in the quarter totaled $5.5 million, a decline from $8 million reported last year. Diana Containerships attributes the decline to reduced employment opportunities as well as lower time charter rates.

Time Charter Agreements

Separately, Diana Containerships Inc. (NASDAQ:DCIX) has entered into a time charter contract with Maersk Line A/S for its m/v Puelo Post-Panamax container vessel. The charter contract is for a minimum of eight months with a gross charter rate of $10,600 per day. Extension of the charter period beyond eight months will result in the charter rate increasing to $12,000 a day. The charter will commence on August 2, 2017.

Diana Containerships has also extended the present time charter contract with CMA CGM Marseille for one its m/v Centaurus Panamax container vessel.

“The employment of “Puelo”, as well as the employment extension of “Centaurus”, are anticipated to generate approximately $4.45 million of gross revenue for the minimum scheduled period of the time charters.,” Diana Containerships in a statement.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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