Friday, July 15, 2011

Diana Containerships Inc. - Earnings Estimate For 2011 Q2

For the quarter ended June 30th, 2011, we forecast that Diana Containerships Inc. (NASDAQ: DCIX) generated a net loss of $165,000 or ($0.02) basic earnings per common share. We also forecast that TCE Revenues for the quarter were $3,970,000 and the net average TCE rate was $18,300.

As of June 30th, 2011, we estimate that the company had a total book capitalization of $206.5 million. Following the company’s secondary offering at $7.50 per share in June 2011 (the company received net proceeds of approximately $121.5 million), DCIX repaid its bank loan and currently has no debt outstanding. We estimate that as of the end of the second quarter the company had $44.5 million cash on hand to finance future vessel acquisitions.

DCIX intends to declare a variable quarterly dividend equal to 70% of it operating cash flow. According to our estimates for the second quarter the company generated cash from operations of $1,600,000. On this basis, we forecast that DCIX will declare a quarterly dividend of $0.05 per share.

Diana Containerships owns a fleet of two new building, intermediate size vessels and three older panamax vessels, with an aggregate capacity of 20,486 TEU. Diana Shipping Inc. (NYSE: DSX) has a 14.5% ownership in the company.