Performance Shipping Inc (PSHG) 2014 Q2 法說會逐字稿

Greetings and welcome to the Diana Containerships Inc. second-quarter 2014 earnings conference call. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ed Nebb, IR advisor for Diana Containerships. Thank you, sir, you may begin.

Well, thank you, Christine, and thanks to all of you for joining us today for the Diana Containerships Inc. 2014 second-quarter conference call. Members of the Diana Containerships management team who are with us today include Mr. Symeon Palios, Chairman and Chief Executive Officer; Mr. Anastasios Margaronis, President; Mr. Andreas Michalopoulos, Chief Financial Officer; Mr. Ioannis Zafirakis, Chief Operating Officer and Secretary; and Ms. Eleni Leontari, Chief Accounting Officer.

Before management begins their remarks let me briefly summarize the Safe Harbor notice. Certain statements made during this call which are not statements of historical fact are forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act. Such forward-looking statements are based on assumptions, expectations, projections, intentions and beliefs as to future events that may not prove to be accurate.

For a description of the risks, uncertainties and other factors that may cause future results to differ materially from those statements, please refer to the Company's filings with the Securities and Exchange Commission. And with that let me turn the call over to Mr. Symeon Palios, Chairman and Chief Executive Officer.

Thank you, Ed. Good morning and thank you for joining us to discuss the results of Diana Containerships Inc. for the 2014 second quarter, as well as the other matters we have just reported. The initiatives we are announcing today are designed to significantly strengthen the Company and to help ensure that we are well positioned for the next phase of the industry cycle.

The Board of Directors believes that these steps are strategic and transformational for Diana Containerships. They will result in a Company with greater capital resources and expanded financial stability. We intend to dedicate those resources to pursuing the opportunities that should arise with the eventual recovery of the container market and to enhancing long-term shareholder value.

Specifically the Company has agreed to sell 36,653,386 shares of common stock in a private placement to a group of investors at a purchase price of $2.51 per share. For expected proceeds of approximately $92 million.

The investor group consists of Diana Shipping Inc., two unaffiliated institutional investors whose managers is based in the US and members of Diana Containerships' senior management. Of this group Diana Shipping will purchase $40 million of common shares and the (inaudible) institutional investor will also purchase a total of $40 million of common shares.

Additionally, I, along with members of my family and other members of the Company's senior management, will purchase in aggregate of $12 million of common shares. The transaction is subject to customary closing conditions and is expected to close on or prior to July 29, 2014.

The transaction was approved by an independent committee of the Board of Directors, which obtained an opinion at exacting the financial fairness to the Company of the aggregate purchase price in the transaction. In addition to strengthening the Company's capital by $92 million this transaction represents a substantial vote of confidence in Diana Containerships and its long-term strategies.

We are pleased to note the strong showing of interest and support by the unaffiliated institutional investors as well as by Diana Shipping and by our own senior management.

In a related action the Board has declared a first dividend on the Company's common stock of $0.25 per share with respect to the second quarter of 2014. This cash dividend will be payable on or about September 3, 2014 to all shareholders of record as at August 14, 2014.

As with the private placement the decision as to the dividend reflects our strategy of positioning Diana Containerships to capitalize on the eventual recovery in the container market by providing the Company the flexibility to acquire additional containership vessels when attractive opportunities arise.

We have been actively seeking such vessel purchase opportunities. We further announced today that the Company does not expect to sell additional shares under its existing (inaudible) market offering with Deutsche Bank Securities, Inc., our sales agent, until the container market improves significantly.

Now let me briefly review our financial results for the 2014 second quarter. Time charter revenues net of prepaid charter revenues amortization for the 2014 second quarter were $12.5 million, up slightly from $12.2 million for the 2013 second quarter.

Diana Containerships recorded net income of $26 million for the 2014 second quarter. This compared to net loss of $5 million for the same period of 2013 which was mainly the result of charges associated with disposal of three vessels.

Our fleet is time chartered to some of the industry's leading container lines for more than 92% of the days in 2014 and approximately 25% of the days in 2015 providing a stable revenue stream. The contracted gross revenue of the fleet, including the first six months of 2014, is approximately $82.7 million.

Our balance sheet remains solid with more than $38 million of available cash, approximately $10 million more of [restricted] cash and $163 million in stockholders' equity and will be further enhanced by the results of the private placement.

In summary, today marks an important turning point for Diana Containerships. We hope to go forward as profitable Company with greater access to capital and we have a sense of enthusiasm for the future that is shared by both our own management team and independent investors.

Now let me go back to how many cents I said before we are going to pay as a dividend. The correct is $0.0025 per share, sorry for that.

Now I will turn the call over to our President, Stasi Margaronis, for a perspective on industry conditions. We will then be followed by our Chief Financial Officer, Andreas Michalopoulos, who will provide a more detailed financial overview. Thank you.

Thank you, Symeon, and welcome to all the participants with the quarterly conference call. As usual we'll start with some macroeconomic news and then continue with detailed analysis of the containership market to the extent that time allows.

The US federal reserve has cut its GDP growth forecast for 2014 to around 2.2% as a result of the effects on (technical difficulty) the harsh winter weather experienced mainly in the eastern states. The IMF has maintained its forecast for 2015 GDP growth at 3%.

According to Maersk Broker, the recovery in the United States, which appeared to have stalled at the beginning of this year, seems to have restarted. The manufacturing PMI in June has risen to 57.5%, its highest level since May 2010. At the same time consumer confidence has risen to its highest level in seven years.

China's manufacturing PMI improved in June to 50.8% from (technical difficulty) direct investment though slipped 6.7% in May. The Chinese government has taken steps to boost the economy by introducing a more rapid incentives for growth, lower taxes for small businesses and will also encourage banks to lend more to exporters to boost shipments. Most of these shipments will be in the form of containerized cargoes.

In Europe survey indicators show higher economic activity with improvement in consumer and business confidence leading to higher growth in private consumption and investments. However, there are some signs that this recovery might be at worst losing momentum and at best becoming uneven with robust activity in Germany, but a worsening downturn in France. (Inaudible) is certainly improving, but the numbers are still relatively small to affect overall euro zone GDP performance in a significant way.

Let's look at the important latest developments in the containership market. The proposed P3 alliance between Maersk Lines, MSC and CMA CGM have been abandoned after the Chinese Ministry of Commerce rejected the plan. The liner companies were unable to convince the Chinese authorities that the advantages of the tie up would outweigh the disadvantages to market competition.

The effect of this decision to the demand for vessels by liner companies is not entirely clear. However, according to Braemar, early consensus is that freight rate should remain more resilient in its absence and that without the potential mega-cascade and increased utilization efficiencies of the P3 owners may have been spared a drop in demand.

We believe that on balance the absence of this alliance should support the chartering prospects of medium-size ships as liner companies set their strategy for providing an independent [through] transportation service to the final port of destination without depending on services offered by their other partners in the proposed alliance.

On the other hand, there might be (inaudible) collusion between the huge operators in which case the favorable effect mentioned above may be weaker than anticipated.

Let's turn to trade growth. According to Clarkson, global container trade is projected to be 6% in the full year 2014, an acceleration from 4.9% growth seen in 2013. Far East to Europe and eastbound transpacific volumes are projected to expand by around 5% this year. This should provide a slightly more balanced spread of global trade growth with combined non-main lane trade expected to grow by 6.5% in 2014.

For 2015 Clarkson predicts that the global container trade will increase by 6.8%, while the container capable fleet is expected to increase by 5.1% over the same period.

Turning to idle tonnage, according to Alphaliner on June 16, idle capacity of ships over 500 TEU have come down to 121 vessels or 251,000 TEU carrying capacity representing about 1.5% of the container ship fleet.

According to the Shanghai shipping exchange and Alphaliner idle capacity of ships up to 2,000 TEU is still relatively high, but post Panamax vessels are almost fully utilized. A number of mid-sized vessels between 3,000 and 5,100 TEU remaining idle has fallen to a three-year low with only 20 units currently idle due to a recent surge in demand mainly from West Africa. The average size of the idle fleet has fallen from 3,300 at the beginning of the year to 1,960 TEU currently.

Demolition now. According to Clarkson's, 15 containerships with a combined 47,076 TEU nominal capacity were sold for demolition in May bringing the total in the year to date to 87 ships with a combined capacity of 260,000 TEU. It is interesting to note that during the same period last year a similar number of ships were scrapped, but their total TEU nominal capacity was only 198,000 TEU.

The average age of ships demolished so far in 2014 is 21.1 years with an average capacity of 3,050 TEU. In 2013 the average age of units sold for demolition was 22.7 years with an average size of only 2,300 TEU. Current projections suggest that 500,000 TEU of box ship capacity will be scrapped this year with a further 370,000 TEU expected to be sold for demolition in 2015.

Let's look at the charter market development now. The container ship target market, according to Maersk Broker, continues to witness a recovery in rate for larger and smaller vessels while rates for medium-size (inaudible) remain relatively stagnant in the [lag of order] and demand.

Nevertheless, with the high level of activity experienced during the second quarter of 2014, the overall supply for Panamax ships has been reduced and ships which open in July and August appear to be manageable this year.

The question, according to Maersk Broker, is whether owners well exhibit the courage to demand further rate increases from charterers. In the meantime the capacity of the Panamax fleet contracted by 2.5% during the first quarter. And according to Clarkson's, with scrapping expected to remain high and the order book negligible, the shrinking would probably continue through the year. Overall the capacity of the sub 4,000 TEU fleet has shrunk by 9.8% since its peak in December 2008.

Charter rates for older Panamax tonnage increased this year on the back of short vessel supply and firm demand. Time charter rates have been hovering between $25,000 per day and $27,000 per day for between four and six month employment. A wide beam 4,000 to 5,000 TEU ships have been generating interest for a while now and rates have reached $17,000 per day for periods of up to 12 months.

Freight markets now developments. According to the Shanghai Containerized Freight Index, freight rates from Shanghai to Europe have averaged $1,277 per TEU so far this year, which is 17% higher than the full year 2013. Meanwhile rates for boxes shipped from Shanghai to the US West Coast has averaged $1,911 per 40 foot unit so far in 2014, which is 6% lower than the 2013 average of a mere 2,028 FEU.

(Inaudible). At the beginning of the second quarter 2014, 49% of capacity for the (inaudible) to Europe [group] was provided by vessels of 12,000 TEU plus, while 35% was provided by ships of 8,000 to 12,000 TEU carrying capacity. In total the 83% share provided by 8,000 plus TEU ships has grown from 55% at the start of 2011.

At the end of the first quarter of this year 19% of capacity on North to South groups was provided by vessels of 8,000 plus TEU which is up from just 8% at the beginning of 2013. Clarkson's points out that there is probably a limit to the (inaudible) effect which has been decimating the earnings of medium-size containerships for a few years now.

The ability to cascade will slow owing to the absorption of easily sustainable tonnage and the demand from cumulative trade growth. In the longer term the slowing cascade, a thin order book in small- and medium-sizes along with rapid demolition should tighten supply.

An example of the above-mentioned developing trend is mentioned by (inaudible) Transport in their latest monthly report. More specifically, the switch in African trade to gearless Panamax tonnage is not progressing as smoothly as had been hoped for by shippers and liner operators.

The tonnage upsizing is creating difficulties in most ports and some liner companies are considering switching from specific trade back to smaller geared and gearless tonnage. This is certainly a development we intend to follow going forward. Therefore it is not unreasonable to expect that small- and medium-size vessels may eventually see a supply deficit as demolition continues to outstrip deliveries and the availability of flexible cascading opportunities gradually declines.

Let's turn to supply now. The container capable fleet is, according to Clarkson, expected to grow by 4.8% in 2014 to reach 19.6 million TEU with a further expansion expected in 2015 of 5.1%. Clarksons considered that (inaudible) continues to battle the overhang of surplus capacity created by the 9.2% trade contraction of 2009. A combination of slow steaming and idling have been used to manage excess supply.

According to Clarkson's research study, the adoption of slower speed has been encouraged by high bunker prices and is estimated to absorb up to around 2 million TEU of nominal cargo carrying capacity.

If the above mentioned predictions come to pass, overall global demand growth is expected to outpace global supply growth this year and next. However, a degree of structural oversupply persists as evidenced by the fact that there are still ships in lay-up, albeit in fewer numbers than in previous quarter.

As has also been pointed out in this half, there is a mismatch between the pattern of demand growth in the order book, which is dominated by large [post] Panamax ships. This has led to the much discussed cascade which has had a significant impact on supply on the non-main lane trade, thus placing pressure on both freight rates and the charter market.

As for new building deliveries now, according to Maersk Broker, about 102 containerships of a combined 810,000 TEU carrying capacity were delivered in the first half of this year. This includes 58 ships of 8,000 plus TEU carrying capacity. [78%] of all deliveries in 2014 and 84% of all deliveries in 2015 are expected to be of ships larger than 10,000 TEU. A slippage of new building deliveries in 2013 has been calculated by [Aris Platu] who have been up 28% while so far in 2014 the calculated numbers who have fallen to just 12%.

Turning to the order book. According to Clarkson the total containership fleet on order represents 18.6% of the existing tonnage by deadweight. Panamax ships on order in excess of 3,000 TEU are only six in number and 4.6% of the existing fleet. Post Panamax ships of up to 8,000 TEU an order number 73 units and are 9.7% of the existing fleet. There are 248 vessels larger than 8,000 TEU on order and represent about 48% of the existing fleet.

During 2014 about 71 new building contracts have been signed of a combined total of 510,000 TEU. In this total there are 20 ships larger than 12,000 TEU, 16 ships between 8,000 and 12,000 TEU, 34 ships between 1,000 and 3,000 TEU and no ships in the 2,000 to 7,999 TEU size bracket. There have been no orders in that size sector since November last year.

So let's try and look forward. We agree with Maersk Broker that private consumption is the most important driver of the container trade. Without growth in consumer spending there is need for companies to expand manufacturing capacity.

Lackluster spending by western consumers has been the main problem for the global container trade in recent years. The rebound we are witnessing in consumption is similarly the primary explanation why the global recovery is now taking hold and why growth in container demand should improve accordingly.

Western consumption, which as we have mentioned in the past, has a very high multiplier effect on container demand, has been supported by rising real wage growth, robust wealth increases in -- and improving job markets as unemployment is falling in most countries.

Given the above mentioned macroeconomic development the Board of Directors of Diana Containerships Inc. have approved changes in the Company's investment strategy and dividend policy which have already been adopted and announced. Together with the significant strengthening of an already strong balance sheet the Company is ready and more able than ever to take advantage of available investment opportunities in modern tonnage in the middle size range of container vessels.

These investments, should produce a healthy cash flow in the medium- and long-term, provided our assumptions regarding economic growth, scrapping and ordering our are fulfilled.

I will now pass the call to our CFO, Andreas Michalopoulos, who will provide us with financial highlights of the second quarter and first half of this year. Thank you.

Thank you, Stasi, and good morning. I am pleased to be discussing today with you Diana Containerships (technical difficulty) results for the second quarter of 2014 for the six months ended June 30, 2014.

Second quarter 2014 net income of Diana Containerships Inc. amounted to $46 million and the earnings per share amounted to $0.02. Time charter revenues net of prepaid charter revenue amortization amounted to $12.5 million compared to $12.2 million in 2013.

The increase in terms of the revenues was mainly due to increased average time charter rates achieved and was partly offset by decreased ownership days in the second quarter of 2014 compared to the same period of 2013. Ownership days were 728 for the quarter compared to 960 in the same period of 2013.

Fleet utilization was 100% for the quarter compared to 92.5% for 2013 and the daily time charter equivalent rate was $17,114 compared to $13,381 in 2013. Voyage expenses were $0.1 million for the quarter. Operating expenses decreased by $2.2 million or 26% to $6.2 million in 2014 compared to $8.4 million for the same quarter of 2013.

Operating expenses in the second quarter of 2014 mainly decreased due to the 20% decrease in the ownership days compared to 2013. In addition, average operating expenses decreased mainly due to decreased crew costs, stores and [payout] expenses and this decrease was partly offset by increased repairs and maintenance costs.

Daily operating expenses were $8,521 for the second quarter 2014 compared to $9,302 in 2013. Depreciation amounted to $2.5 million for the quarter. General and administrative expenses were $1.5 million compared to $1.4 million in the second quarter of 2013. The increase was mainly attributable to increased payroll cost of the (inaudible) employees and was partially offset by decreased legal expenses.

Interest and finance costs for the second quarter of 2014 amounted to $1.7 million compared to $0.8 million for the same quarter 2013. The increase was a result of increased average debt after the drawdown of $50 million from our loan agreement with Diana Shipping Inc. and $6 million from our credit facility with RBS in August and September 2013 respectively and is also attributable to increased average interest rates.

Turning now to the six months ended June 30, 2014, net income of Diana Containerships Inc. amounted to $0.9 million and the earnings per share amounted to $0.03. Time charter revenues, net of prepaid charter revenue amortization, amounted to $26 million compared to $27.4 million in 2013.

The time charter revenues decreased due to decreased ownership days in 2014 compared to the same period of 2013 and were partially offset by the increase in the average time charter rates achieved in 2014 compared to the same period of 2013.

Ownership days were 1,499 in 2014 compared to 1,822 in 2013. Fleet utilization was 99.5% compared to 96.3% in 2013 and the daily time charter equivalent rate was $17,229 for the period compared to $14,799 for the same period of 2013. (Inaudible) expenses were $0.2 million, operating expenses for the period ended June 30, [2013] amounted to $12.8 million compared to $16.7 million for the same period of 2013.

The decrease in operating expenses was due to the decrease in ownership days and also due to the decreased crew costs, stores and (inaudible). Daily operating expenses were $8,561 for the period compared to $9,144 in the prior period.

Depreciation amounted to $4.9 million. General and administrative expenses amounted to $3.1 million compared to $2.7 million for the same period in 2013. The increase was mainly attributable to the establishment of UOT, our wholly-owned subsidiary [flagged] as our fleet manager effective March 1, 2014 and was partially offset by decreased [composition] cost on restricted stock rewards.

Loss on vessel sale amounted to $0.7 million and relates to the sale of the vessel Sardonyx in the first quarter 2014. Interest and finance costs were $3.4 million for the period compared to $1.5 million for the same period in 2013. As mentioned earlier, in 2014 we had increased average debt outstanding through [2013] as well as increased average interest rate.

Turning to dividend policy now. For the second quarter of 2014 the Board of Directors have decided to declare a dividend of $0.25 (sic -- see press release) per share. Thank you for your attention. We will be pleased to respond to your questions and I will turn the call to the operator who will instruct you as to the procedure for asking questions. Thank you.

(Operator Instructions). Michael Webber, Wells Fargo.

Hey, guys, this is Donald McLee on for Michael. So first question is just around the dividend. This is the second quarter in a row where you have cut the dividend. I was kind of interested in how that is indicative of your longer-term outlook for the container market?

This is indicative of results to what we want to do with the cash that we have available. And is a clear sign that we believe that there are plenty of opportunities out there that are going to increase the shareholders' value, meaning that we think that there are nicely priced vessels that are waiting for us to buy them. And the more money we have available the better for our shareholders.

Got you. And I guess that kind of brings me to the pipe and what the primary (inaudible) would be?

Certainly. The primary use of the proceeds is going to be buying nicely priced vessels.

And is there a specific asset size? Are you considering both charter free, charter attached?

We prefer the charter free or with minimum period charter attached to get the benefit of the market turning positively as we expect and the size is in the vicinity of the 5,000 TEU vessels and above, either post Panamaxes or Panamaxes.

Got you. That is all of my questions. Thanks, guys.

(Operator Instructions). Kevin Sterling, BB&T.

You have taken several steps here to position yourself to be able to acquire a new [tranche], you've got the private placement, you've cut the dividend, you have scrapped older vessels. And it sounds like you may have your eye on some vessels. Are we getting closer?

Asset values seem to be holding steady. Are we getting close to you guys pulling the trigger? And if we do see some vessel purchases will we see maybe more than just one or two, maybe a couple, or would you just kind of look to acquire maybe an individual ship or two? How should we think about that?

This is Ioannis Zakfirakis again. We think that there are not a lot of companies out there with available cash over $130 million to purchase containers today. And this is a very strong position to be at since we have explained our expectations about the future on the medium-sized vessels. So we think that we are very fortunate that we have this dry powder and we plan to spend it as soon as possible. Since we expect the market to improve significantly soon.

Okay, thank you. Let me kind of touch base on your strategy with the charter market. You have got one vessel coming off charter the next couple months, I believe several more either later this year or early 2015. A lot can happen over the next six months.

But given the current market environment I think, Ioannis, you talked about the -- you see it strengthening. So could we assume you will look at shorter-term charters here in the near term for some of these vessels and then obviously lock in a longer-term charter at a higher rate down the road?

Correct, that is correct. We will play with the one year period for the vessels that we have since, as we told you, we expect the market to improve.

Okay, great. And last question here. You talked about the ability I think to have cash to come to the market to look at secondhand tonnage or to look at new tonnage. How important is that? Are you guys seeing, as you look at acquisitions, people want you to shipyards or whoever you are looking to buy the tonnage from is it --?

How important is it to have that cash right there so they can see that you are serious buyer? And does that assume that gives you a position of strength or maybe a little bargaining power to have that cash and be able to show that cash that -- to show that you are serious?

This is very correct as well. Having cash (inaudible) and that makes you a serious buyer and the seller's, they prefer quick transactions and they prefer doing business with very reputable companies like ours. And this is an advantage to have in today's market. And it gives you a nice bargaining power.

Got you, that makes sense. Gentlemen, that is all I had. Thanks for your time this morning and best luck to you as you grow your fleet.

(Operator Instructions). Mark Suarez, Euro Pacific Capital.

Ioannis, you talked about the macro environment and you guys went into some more of the details from the containership side of things in both Panamax and post Panamax. But just to go back to that somewhat macro question.

Last quarter I would say over the next -- last three or four, five months we have seen some good utilization of vessels in the sub 2,000 TEU range, especially among the euro vessels where demand has been relatively strong. Do you still see that as being the case and will that be a good opportunity for you to go out there and maybe buy some of those assets in the 1,500, 2,000 TEU range now with your common stock offering and cash in hand?

We don't like the size that you have described for two reasons. The one has to do with the fact that we expect the cascade effect to affect mostly the smaller vessels rather than anything else eventually. And secondly, we don't like these vessels simply because it does not have the necessary volatility for our model to create a shareholders' value.

The volatility, the smaller the vessel the less the volatility on the charter rate and on the prices. What we want to do at this stage in the cycle is buy vessels that will appreciate in a much bigger degree.

To see having the burden of operating a vessel you may as well have it on a vessel that gives you the opportunity to make a lot of money when the market turns. If you look at the charter rates and the values of the smaller vessels the volatility is not comparable to the medium or even the very big vessels. You need that.

Got you.

To reinforce what Ioannis just said -- this is Stasi here. The cascade that we tried to explain a bit more than usual in this presentation is going to start weakening from the larger sizes downward, it always does.

This will not be an exception, which is the reason why, as Ioannis explained, the displacement is going to go all the way down to the smaller sizes and it will eventually end there, but it is going to take longer than for the larger sizes where they will be basically replacing the immediately smaller ones.

You understand that the whole thing is based on the larger getting into the business of the smaller and eventually somebody takes the business of the very small ship. And that is why we are not interested in what used to be the [feeders] of the last decade which were the 1,500 to 2,000 TEU.

We want to concentrate on the feeders of the larger category which will be the 3,000, 3,500 to 4,000 TEU ships which will feeder basically and [trans ship] the cargo that will be arriving at (inaudible) from the 10,000 plus TEU vessels.

Got it. And with that and with that trend that you just mentioned have you seen any increased [turning] activity from distressed owners of maybe secondhand tonnage wanting to get rid of it? Are you getting more calls now that they know you have that cash on hand, you've done the private placement? But what sort of trends are you seeing in the market? Are you seeing more distressed sellers out there or less? Just trying to get a sense.

There is an improvement in that psychology on the medium-size vessels but still there are not a lot of buyers out there. Before six months ago if you were trying to talk about the medium-size vessels nobody would have listened to you. Now the peoples whispering about those, we explained the reasons why.

Certainly the fact that nobody wanted to talk about these medium-size vessels the last four years or so or even five, it is a very good reason for someone to expect the market to improve significantly when the right time comes.

So to respond to your question directly is that there are not a lot of buyers out there for this type of vessel, but certainly the sellers, they have increased a little bit their expectations as a result the price of the vessels that they are selling simply because they see these good sentiments that we see as well.

Got it. And in a hypothetical situation let's say you need more cash, you go ahead you do your acquisitions. Would a preferred stock offering now make more sense now that you have a more competitive dividend yield for the firm at a lower rate, I mean, would that then make more sense (multiple speakers) over the next two to three years or so?

This is too early to discuss. And certainly let's spend the money that we have outside and see how we are doing. The main purpose of the exercise is to increase the value of our Company and the value of our share price. We feel that we have indicated to everyone what we consider to be a flaw as a result of the price of our stock.

And certainly knowledgeable people in the industry have determined that the $2.51 price is something very attractive. So let's wait and see the result of how we are going to use the money and then we talk about anything else.

Great, okay, that is all I have for now. Thanks for your time as always.

It appears we have no further questions at this time. I would now like to turn the floor back over to management for closing comments.

Thank you again for your interest in and support of Diana Containerships. We look forward to speaking to you in the months ahead. Thank you.

Ladies and gentlemen, this does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.