Diana Containerships narrows Q2 loss to US$0.6M versus year-ago loss of US$1.7M, reports time charter revenues of US$4.2M

ATHENS, Greece , August 3, 2011 (press release) – Diana Containerships Inc. (Nasdaq:DCIX - News), a global shipping company specializing in the transportation of containers, today reported net loss of $0.6 million for the second quarter of 2011 compared to a net loss of $1.7 million for the same period of 2010. Net loss to Diana Containerships Inc. for the six months ended June 30, 2011 amounted to $0.4 million, compared to net loss of $1.9 million for the period from January 7, 2010 (inception date) to June 30, 2010.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.03 per share. The cash dividend will be payable on August 25, 2011 to all shareholders of record as at August 15, 2011. The Company has 23,076,161 shares of common stock outstanding.

Fleet Employment Profile (As of August 1, 2011)  
Currently Diana Containerships' fleet is employed as follows:  
               
Vessel
BUILT TEU

Sister Ships*
Gross Rate
(USD Per Day)

Com**

Charterer
Delivery
Date to Charterer
Redelivery
Date to Owners***

Notes
Container Vessels
SAGITTA A $16,000 5.25% A.P. Moller - Maersk A/S 30-Jun-10 15-May-11  
2010 3,426   $22,000 2.25%   15-May-11 15-Mar-13 - 15-Jun-13 1
CENTAURUS A $20,000 2.25% CSAV Valparaiso 4-Sep-10 21-Jul-12 - 19-Oct-12  
2010 3,426              
MAERSK MALACCA B $21,450 2.25% A.P. Moller - Maersk A/S 24-Jun-11 10-May-13 - 8-Aug-13 2
1990 4,714              
MAERSK MERLION B $21,450 2.25% A.P. Moller - Maersk A/S 19-Jun-11 5-May-13 - 3-Aug-13 2
1990 4,714              
MAERSK MADRID   $21,450 2.25% A.P. Moller - Maersk A/S 15-Jun-11 1-May-13 - 30-Jul-13 2
1989 4,206              
               
* Each container vessel is a "sister ship", or closely similar, to other container vessels that have the same letter.
** Total commission as a percentage of charterhire paid to third parties and Diana Shipping Services S.A.
*** Charterers' optional period to redeliver the vessel to owners. Charterers have the right to add the off hire days, if any, and therefore the optional period may be extended.
 
1 The charterer has the option to employ the vessel for a further 11-13 month period. The optional period, if exercised, must be declared on or before December 15, 2012 and can only commence on May 1, 2013 at a gross daily rate of $30,000.
2 The charterer has the option to employ the vessel for a further 12 month period, plus or minus 45 days at a gross daily rate of $25,000. The optional period, if exercised, must be declared on or before the end of the 20th month of employment and will only commence at the end of the 24th month.
 
Summary of Selected Financial & Other Data
 
  Three Months Ended June 30,    
 

2011


2010
Six Months
Ended
June 30, 2011
For the period from January 7
(inception date) to
June 30, 2010
  (unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA:        
Time charter revenues $ 4,248,020 $ 1,322 $ 7,488,020 $ 1,322
Voyage expenses 138,525 25,114 254,625 25,114
Vessel operating expenses 1,821,362 375,549 2,775,584 375,549
Net loss (645,739) (1,698,394) (388,910) (1,935,076)
FLEET DATA        
Average number of vessels 2.4 -- 2.2 --
Number of vessels 5.0 1.0 5.0 1.0
Weighted average age of fleet (in years) 14.5 -- 14.5 --
Ownership days 220 1 400 1
Available days 220 1 400 1
Operating days 214 -- 394 --
Fleet utilization 97.3% -- 98.5% --
AVERAGE DAILY RESULTS        
Time charter equivalent (TCE) rate (1) $ 18,680 $ -- $ 18,083 $ --
Daily vessel operating expenses (2) $ 8,279 $ -- $ 6,939 $ --
         
(1) Time charter equivalent rates, or TCE rates, are defined as our time charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.
         
(2) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.
Conference Call and Webcast Information

Diana Containerships Inc. will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Wednesday, August 3, 2011.

Investors may access the webcast by visiting the Company's website at www.dcontainerships.com, and clicking on the webcast link. The conference call also may be accessed by telephone by dialing 1-877-407-8029 (for U.S.-based callers) or 1-201-689-8029 (for international callers), and asking the operator for the Diana Containerships Inc. conference call.

A replay of the webcast will be available soon after the completion of the call and will be accessible on www.dcontainerships.com. A telephone replay will be available by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers), and providing the Account number 391 and Replay ID number 375456.

About the Company

Diana Containerships Inc. is a Marshall Islands corporation founded in 2010 to own and operate containerships and pursue containership acquisition opportunities. Diana Containerships Inc. intends to continue to capitalize on investment opportunities by purchasing additional containerships in the secondhand market, from other companies, shipyards and lending institutions, and may also enter into newbuilding contracts with shipyards for new containerships.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for containership capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

(See financial tables attached)

DIANA CONTAINERSHIPS INC.
FINANCIAL TABLES
Expressed in U.S. Dollars, except for share data
         
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
         
  For the three months ended
June 30,
   
 
2011

2010
For the six months ended
June 30, 2011
For the period from January 7
(inception date) to June 30, 2010
REVENUES        
Time charter revenues $ 4,248,020 $ 1,322 $ 7,488,020 $ 1,322
         
EXPENSES:        
Voyage expenses 138,525 25,114 254,625 25,114
Vessel operating expenses 1,821,362 375,549 2,775,584 375,549
Depreciation 935,727 7,886 1,659,498 7,886
Management fees 110,000 23,000 200,000 23,000
General and administrative expenses 942,971 1,553,444 1,794,287 1,789,977
Foreign currency losses / (gains) (5,562) (242,639) 453 (242,490)
Operating income / (loss) 304,997 (1,741,032) 803,573 (1,977,714)
         
OTHER INCOME / (EXPENSES):        
Interest and finance costs (992,517) -- (1,256,067) --
Interest Income 41,781 42,638 63,584 42,638
Other income / (loss) (950,736) 42,638 (1,192,483) 42,638
         
Net loss $ (645,739) $ (1,698,394) $ (388,910) $ (1,935,076)
         
Loss per common share, basic and diluted $ (0.06) $ (0.31) $ (0.05) $ (0.67)
         
Weighted average number of common shares, basic and diluted 10,071,074 5,529,773 8,020,014 2,875,722
 
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEET DATA
(Expressed in US Dollars)
  June 30, 2011 December 31, 2010
ASSETS    
     
Cash and cash equivalents $ 46,170,273 $ 11,098,284
Other current assets 1,556,320 1,277,730
Vessels' net book value 161,731,656 92,077,309
Other non-current assets -- 895,846
Total assets $ 209,458,249 $ 105,349,169
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities, including current portion of long-term debt $ 3,048,490 $ 2,428,676
Long-term debt, net of current portion -- 18,128,095
Other non-current liabilities 136,253 181,684
Total stockholders' equity 206,273,506 84,610,714
Total liabilities and stockholders' equity $ 209,458,249 $ 105,349,169
     
 
OTHER FINANCIAL DATA
         
  For the three months
ended June 30,
   
 
2011

2010
For the six months ended
June 30, 2011
For the period from January 7,
(inception date) to June 30, 2010
  (unaudited) (unaudited) (unaudited) (unaudited)
Net Cash provided by/(used in) Operating Activities $ 2,373,955 $ (470,970) $ 4,204,298 $ (470,970)
Net Cash used in Investing Activities (71,313,845) (50,468,694) (71,313,845) (50,468,694)
Net Cash provided by Financing Activities 83,298,336 35,280,896 102,181,536 85,281,396


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