Performance Shipping Inc (PSHG) 2017 Q2 法說會逐字稿

Greetings, and welcome to the Diana Containerships 2017 Second Quarter Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Diana Containerships 2017 年第二季電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Mr. Ed Nebb, Investor Relations. Thank you. You may begin.

現在我想將會議轉交給東道主投資者關係部門的艾德·內布先生。謝謝。你可以開始了。

Thanks, Audrey, and thanks to all of you for joining us this morning for the Diana Containerships 2017 Second Quarter Conference Call. The members of the company management who are with us today include Mr. Symeon Palios, Chairman and CEO; 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.

謝謝奧黛麗，也謝謝大家今天早上參加我們戴安娜貨櫃船 2017 年第二季電話會議。今天與我們在一起的公司管理層成員包括董事長兼首席執行官 Symeon Palios 先生；阿納斯塔西奧斯·馬加羅尼斯先生，主席； Andreas Michalopoulos 先生，財務長； Ioannis Zafirakis 先生，營運長兼秘書；以及首席會計官 Eleni Leontari 女士。

Before management begins its remarks, let me just 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 Private Securities Litigation Reform Act. Forward-looking statements are based on assumptions, expectations, projections or beliefs as to future events that may or may not prove to be accurate. For a description of the risks, uncertainties and other factors that may cause future results to differ from the forward-looking statements, I refer you to the company's filings with the SEC.

在管理層開始發言之前，讓我先簡單總結安全港通知。本次電話會議期間所做的某些陳述並非歷史事實陳述，而是《私人證券訴訟改革法案》安全港條款下的前瞻性陳述。前瞻性陳述是基於對未來事件的假設、期望、預測或信念，這些假設、期望、預測或信念可能被證明是準確的，也可能不準確。有關可能導致未來結果與前瞻性陳述不同的風險、不確定性和其他因素的描述，請參閱該公司向 SEC 提交的文件。

And now with that, let me turn the call over to Mr. Symeon Palios, Chairman and Chief Executive Officer.

現在，讓我將電話轉給董事長兼執行長 Symeon Palios 先生。

Thank you, Ed. Good morning, and thank you for joining us to the performance of Diana Containerships Inc. for the second quarter of 2017.

謝謝你，艾德。早安，感謝您與我們一起觀看戴安娜貨櫃船公司的表演。2017 年第二季。

Second quarter was highlighted by financing transactions that have significantly strengthened the company's balance sheet and has also provided additional flexibility to take advantage of an eventual improvement in market conditions in the containership segment.

第二季的亮點是融資交易，這些交易顯著增強了公司的資產負債表，並提供了額外的靈活性，以利用貨櫃船領域市場狀況的最終改善。

Turning first to our financial results. The company reported net income of USD 36.5 million for the second quarter of 2017. In the comparable quarter of 2016, the results were a net loss of USD 8 million. In 2017, second quarter income included a gain of USD 42.2 million, net of related expenses, from a debt write-off relating to the settlement of our prior secured loan facility with The Royal Bank of Scotland plc.

首先來看我們的財務業績。該公司公佈 2017 年第二季淨利為 3,650 萬美元。2016 年同期，淨虧損 800 萬美元。2017 年，第二季收入包括 4,220 萬美元的收益（扣除相關費用），該收益來自與我們先前與蘇格蘭皇家銀行 plc 達成的擔保貸款安排相關的債務沖銷。

Time charter revenues, net of prepaid charter revenues amortization, were USD 5.5 million for the second quarter of 2017. This compares to USD 8 million for the same period 2016. The difference was mainly due to reduced employment opportunities and time charter rates.

2017 年第二季定期租船收入（扣除預付租船收入攤銷後）為 550 萬美元。相較之下，2016 年同期為 800 萬美元。差異主要是由於就業機會和期租費率的減少。

At June 30, 2017, company had approximately USD 11.6 million in cash on its balance sheet. Shareholders' equity was approximately USD 129 million, an increase from about USD 91 million at year-end 2016.

截至2017年6月30日，公司資產負債表上現金約1,160萬美元。股東權益約1.29億美元，較2016年底的約9,100萬美元增加。

Subsequent to the close of the quarter, we announced several financing transactions that have placed the company in a significantly stronger financial position. As noted, we paid an aggregate of USD 85 million for full and final settlement of USD 128.9 million remaining on our secured loan facility with The Royal Bank of Scotland plc. The repayment of the RBS loan was funded with aggregate proceeds of USD 75 million under 2 new secured loan facilities with Addiewell Limited, an unaffiliated third party, and with Diana Shipping Inc., together with available cash on hand.

本季結束後，我們宣布了幾項融資交易，使公司的財務狀況明顯增強。如前所述，我們總共支付了 8,500 萬美元，以全額最終結算我們與蘇格蘭皇家銀行 (Royal Bank of Scotland plc) 的擔保貸款融資中剩餘的 1.289 億美元。蘇格蘭皇家銀行貸款的償還資金來自與非關聯第三方 Addiewell Limited 和 Diana Shipping Inc. 的 2 項新擔保貸款融資，總收益為 7,500 萬美元，此外還有手頭上可用現金。

Also, the company refinanced its unsecured loan facility with Diana Shipping Inc., entered into on May 20, 2013, having an outstanding balance of USD 42.6 million as of June 30, 2017. The principal amount of the new secured loan is USD 82.6 million, which includes the existing loan and the new USD 40 million loan used to refinance the RBS loan.

此外，該公司還為其與 Diana Shipping Inc. 於 2013 年 5 月 20 日簽訂的無擔保貸款融資進行了再融資，截至 2017 年 6 月 30 日，未償還餘額為 4,260 萬美元。新擔保貸款的本金為8,260萬美元，其中包括現有貸款和用於蘇格蘭皇家銀行貸款再融資的新4,000萬美元貸款。

Diana Containerships Inc. completed a reverse stock split on its common shares at a ratio of 1-for-7, effective as of the opening of trading on July 5, 2017.

戴安娜貨櫃船公司公司以 7 比 1 的比例完成了普通股的反向股票分割，自 2017 年 7 月 5 日開市起生效。

Our fleet is time chartered to some of the industry's leading container lines for more than 62% of the days in 2017 and approximately 8% of days in 2018. The contracted gross revenue of the fleet, including the first 6 months of 2017, is approximately USD 21.7 million.

我們的船隊在 2017 年超過 62% 的天數和 2018 年約 8% 的天數中被定期租給一些行業領先的貨櫃航運公司。包括2017年前6個月在內，機隊的合約總收入約為2,170萬美元。

In summary, despite continued challenges in the container shipping market, Diana Containerships Inc. has taken action to reinforce our financial strength and to operate our business to navigate the current phase of the industry cycle.

總之，儘管貨櫃運輸市場持續面臨挑戰，但戴安娜貨櫃船公司 (Diana Containerships Inc.)已採取行動增強我們的財務實力並經營我們的業務，以應對行業週期的當前階段。

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

我現在將把電話轉給我們的總裁史黛西·馬加羅尼斯 (Stacey Margaronis)，以獲取對行業狀況的看法。隨後我們的財務長 Andreas Michalopoulos 將提供更詳細的財務概覽。謝謝。

Thank you, Symeon, and greetings to all the participants of the second quarter conference call of Diana Containerships.

謝謝 Symeon，並向戴安娜貨櫃船公司第二季度電話會議的所有參與者致以問候。

I (inaudible) first half of this year as a period during which the containership market showed some signs of life. During this short presentation, we will try to examine the reasons behind this, and the prospect for [overlapping] recovery down the road.

我（聽不清楚）今年上半年是貨櫃船市場顯示出一些活力跡象的時期。在這個簡短的演講中，我們將嘗試探討背後的原因，以及未來[重疊]復甦的前景。

Starting as usual with macroeconomic development. We should point out that the IMF cut its growth forecast for the U.S. economy for 2017 from 2.3% to 2.1%, citing the possible effects of uncertainty associated with White House policy. The U.S. Commerce Department reported that the economy grew at an annualized pace of 1.4% in the first quarter of 2017. This, however, is still a slowdown from the final quarter of 2016 when the economy grew at a rate of 2.1% year-on-year.

像往常一樣從宏觀經濟發展開始。值得注意的是，國際貨幣基金組織將美國2017年經濟成長預期從2.3%下調至2.1%，理由是白宮政策不確定性可能產生影響。美國商務部報告稱，2017 年第一季經濟年化成長率為 1.4%。不過，與 2016 年最後一季的經濟年增率 2.1% 相比，這仍然有所放緩。

In Japan, the Nikkei Flash Japan Manufacturing Purchasing Managers' Index, or PMI, dropped to a 7-month low of 52 in June of this year from 53.1 in May. Slower growth was signaled in June, with both orders and output rising at weakest (inaudible) rate since late last year.

在日本，日經快速日本製造業採購經理人指數（PMI）從 5 月的 53.1 跌至今年 6 月的 52 點，為 7 個月以來的最低點。六月成長放緩的跡像已經顯現，訂單和產出均以去年年底以來最弱（聽不清楚）的速度成長。

In the Eurozone, businesses and consumers became more optimistic in June, about the prospects that's been at any time since before the global financial crisis. Business and consumer confidence jumped to 111.1 in June from 109.2 in May, reaching the highest level since August 2007, which was more than half a year before the start of 2008-2009 credit market meltdown.

在歐元區，企業和消費者在 6 月對前景變得更加樂觀，這是自全球金融危機爆發以來的任何時候。商業和消費者信心從 5 月份的 109.2 躍升至 6 月份的 111.1，達到 2007 年 8 月以來的最高水平，距 2008-2009 年信貸市場崩潰開始已有半年多。

European manufacturing PMI rose to 57.3 in June, indicating the strongest rate of expansion in the manufacturing sector since April 2011. In Germany, the Ifo Business Climate Index rose from 114.6 points in May of this year to 116.1 points in June. The final HIS (sic) [IHS] Markit Eurozone Manufacturing PMI rose to 57.4 in June, up from 57 in May.

6月歐洲製造業PMI升至57.3，顯示製造業自2011年4月以來最強勁的擴張速度。德國Ifo商業景氣指數從今年5月的114.6點上升至6月的116.1點。6 月 HIS（原文如此）[IHS] Markit 歐元區製造業 PMI 終值上升至 57.4，高於 5 月的 57。

The Chinese Academy of Social Sciences reported that China's GDP grew by 6.8% year-on-year during the first quarter of 2017. For the full year 2017, the same organization is forecasting GDP growth of 6.5% year-on-year.

中國社會科學院報告顯示，2017年第一季中國國內生產毛額年增6.8%。該機構預測 2017 年全年 GDP 年增 6.5%。

Let's look at tonnage supply now. According to Clarksons, container fleet capacity have grown by approximately 1% since the start of 2017 and is expected to rise 2.7% in the full year. Braemar's net fleet growth for this year is estimated at 4.1% after a 1.2% increase during the first 6 months of this year. We find the lower fleet growth estimate more realistic than the latter, especially because both analysts more or less agree on the first half fleet growth numbers.

現在讓我們來看看噸位供應。據克拉克森稱，自 2017 年初以來，貨櫃船隊運力增長了約 1%，預計全年將增長 2.7%。繼今年前 6 個月增長 1.2% 後，今年 Braemar 的機隊淨增長預計為 4.1%。我們發現較低的機隊成長預測比後者更為現實，特別是因為兩位分析師或多或少都同意上半年機隊成長數字。

The Clarksons projection for scrapping in the full year 2017 has been revised down to 550,000 TEU. Newbuilding deliveries are expected to reach 1.1 million TEU in the full year. So far this year, supply of newbuilding tonnage has been restricted to just 450,000 TEU.

克拉克森對 2017 年全年報廢量的預測已下調至 55 萬 TEU。預計全年新船交付量將達到110萬個標準箱。今年到目前為止，新船供應量僅限於 450,000 TEU。

Net of scrapping, supply of tonnage is estimated to be up by about 225,000 TEU or 1.1% of the existing fleet. However, Clarksons point out that strengthening demand should result in an increase in fleet utilization, but the sheer scale of the tonnage overshoot in recent years make it extremely difficult to balance demand and supply on a sector-by-sector basis in the near term.

扣除報廢後，供應噸位預計將增加約 225,000 TEU，即現有船隊的 1.1%。然而，克拉克森指出，需求的增強應該會導致船隊利用率的提高，但近年來噸位超調的規模之大，使得短期內按行業平衡供需變得極其困難。

According to Clarksons, the widespread adoption of slow steaming by liner companies also continue to follow part of the supply side story and along with other productivity enhancing changes is now estimated to have absorbed around 2.7 million TEU of nominal capacity in comparison with the end of 2008.

據 Clarksons 稱，班輪公司廣泛採用慢速航行也是供應方面的一部分，加上其他生產率提高的變化，與 2008 年底相比，目前估計已吸收了約 270 萬標準箱的名義運力。

As for demand now. According to Clarksons Research, demand trends appear to have become more positive in recent months, and global container trade is projected to grow by 4.8% in 2017, up from 3.8% in 2016. Provisional expectations are for further gradual improvement in box trade growth to 4.6% in 2018.

至於現在的需求。根據克拉克森研究公司的數據，近幾個月需求趨勢似乎變得更加積極，預計 2017 年全球貨櫃貿易將成長 4.8%，高於 2016 年的 3.8%。初步預計2018年貨櫃貿易成長將進一步逐步提高至4.6%。

Demolition. In 2016, containership demolition reached record levels with 194 boxes having an aggregate TEU of 654,441 reportedly sold for scrap. According to Braemar ACM Shipbroking, during the first half of this year, 103 container vessels over 1,000 TEU was sold for scrap, with total capacity of 309,000 TEU. Assets indicates up to now more than half were in the 2,000 to 5,099 TEU-size range. As mentioned earlier on, the Clarksons projection for scrapping in the full year 2017 has been revised down to 550,000 TEU.

拆除。2016 年，貨櫃船拆解量達到創紀錄水平，據報道，有 194 個貨櫃被出售為廢品，總標準箱為 654,441 個標準箱。根據Braemar ACM Shipbroking統計，今年上半年，共有103艘1000TEU以上貨櫃船出售報廢，總運力達30.9萬TEU。資產顯示，到目前為止，超過一半的貨櫃尺寸範圍為 2,000 至 5,099 TEU。如前所述，克拉克森對 2017 年全年報廢量的預測已下調至 55 萬 TEU。

Let's turn and look at the newbuilding order book. According to Braemar ACM, at the beginning of July, the containership order book stood at 392 vessels with a combined 2.9 million TEU capacity, down from 434 boxes with a combined 3.26 million TEU of capacity at the beginning of the year. The vessels on order represent 14.8% of the existing fleet. In the 3,000 to 5,099 TEU-size range, the order book represents only 2.5% of the existing fleet. In the 6,000 to 7,999 TEU-size range, the ships on order represent a mere 0.4% of the existing fleet.

讓我們看看新船訂單簿。據Braemar ACM稱，7月初，貨櫃船訂單量為392艘，總運力290萬標準箱，低於年初的434艘貨櫃船，總運力326萬標準箱。訂購的船舶佔現有船隊的 14.8%。在 3,000 至 5,099 TEU 尺寸範圍內，訂單量僅佔現有船隊的 2.5%。在 6,000 至 7,999 TEU 尺寸範圍內，訂購的船舶僅佔現有船隊的 0.4%。

According to Alphaliner, as of early June this year, there were only 31 ships on order in the 3,000 to 5,099 TEU-size range and 7 units were on order in the 5,100 to 9,999 TEU-size range. Unfortunately, there are still over 150 ships on order in the 10,000-plus TEU-size range. All sub-10,000 TEU vessels will be delivered by the end of 2018, with only very few ships scheduled for delivery that year.

據Alphaliner稱，截至今年6月初，僅訂購了31艘3,000至5,099 TEU規格的船舶，並訂購了7艘5,100至9,999 TEU規格的船舶。不幸的是，仍有超過 150 艘 10,000 標準箱以上的船舶訂單。所有低於 10,000 TEU 的船舶將於 2018 年底交付，只有極少數船舶計劃當年交付。

Newbuilding contracting now. According to Clarksons Plateau, the total reported box ship contracting in the year-to-date came to 15 containerships of 33,900 TEU. Clarksons report that most newbuilding orders were for ships between 1,400 and 2,150 TEU. This fashion was also seen in 2016 with overall volumes remaining limited and interest focused in the smaller size.

現在新造船承包。據Clarksons Plateau稱，今年迄今報告的貨櫃船簽約總數為15艘貨櫃船，容量為33,900 TEU。克拉克森報告稱，大多數新造船訂單都是 1,400 至 2,150 TEU 的船隻。這種時尚在 2016 年也出現過，整體銷量仍然有限，人們的興趣集中在較小的尺寸上。

Cascading now. According to Clarksons, the further delivery of very large containership capacity further cascading of large units of the main lane still looks likely, even though volume growth on the main lane east-west trade has indeed improved. They also point out, however, that the rate at which this occurs may slow as the number of relatively smaller candidates to redeploy diminishes.

現在級聯。克拉克森表示，儘管東西向主要航道的貨量增長確實有所改善，但仍可能進一步交付超大型貨櫃船運力，並在主要航道上進一步級聯大型貨櫃船。然而，他們也指出，隨著需要重新部署的相對較小的候選人數量減少，這種情況發生的速度可能會減慢。

The Panama Canal now. A major shift in deployments have happened last year came following the opening of the new expanded Panama Canal obviously in June 2016. At the beginning of the second half of 2017, there were around 40 total Panamax vessels less deployed on the Asia to U.S. East Coast route via the Panama Canal, down from over 150 vessels at the start of June 2016. Meanwhile, large vessels of up to 14,000 TEU started using the canal in larger and larger numbers. Over 100 large-scale ships have used the new Panama Canal thus far this year.

現在的巴拿馬運河。去年，隨著新擴建的巴拿馬運河於 2016 年 6 月開通，部署發生了重大轉變。2017年下半年年初，經巴拿馬運河亞洲至美國東岸航線上部署的巴拿馬型船舶總數減少了約40艘，低於2016年6月初的150多艘。與此同時，容量達 14,000 TEU 的大型船舶開始越來越多地使用該運河。今年迄今已有100多艘大型船舶使用新巴拿馬運河。

Let's look at trade volumes now. According to Clarksons, main lane container trade is expected to grow by 3.4% in 2017, marginally faster than the expansion of 3.2% recorded in 2016. Growth this year is expected to be supported by expansion of 4.3% in peak leg Trans-Pacific volumes and the gradual improvement in European demand in full year 2017.

現在讓我們來看看貿易量。據Clarksons稱，2017年幹線貨櫃貿易預計將成長3.4%，略高於2016年3.2%的成長速度。預計今年的成長將受到跨太平洋航線尖峰貨運量成長 4.3% 以及 2017 年全年歐洲需求逐步改善的支撐。

Maersk Broker report that year-to-date 2017, the Asia-to-Europe volumes increased 4.2%. The Asia-to-U. S. volumes increased 9.3%, while the Europe-to-North America route so show volumes increased by 8.1%. Lower growth rates were seen in the Indian subcontinent and Middle East trades where volumes increased by only 1.8% and 1.1%, respectively.

馬士基經紀公司報告稱，2017 年迄今，亞洲至歐洲的貨運量增加了 4.2%。亞洲至美國。美國航線運量成長 9.3%，而歐洲至北美航線運量成長 8.1%。印度次大陸和中東貿易的成長率較低，成交量分別僅成長 1.8% 和 1.1%。

It is interesting to note that the intra-Asian trades are continuously gaining importance and are estimated according to Alphaliner to reach about 2.5 million TEU this year. It is about 12% of the global capacity deployment according to Alphaliner. The largest trade are Far East to Europe at around 21% and Far East to North America which is estimated at 16% of global capacity.

有趣的是，亞洲內部貿易的重要性不斷提高，根據 Alphaliner 估計，今年將達到約 250 萬個標準箱。據 Alphaliner 稱，這約佔全球運力部署的 12%。最大的貿易是遠東至歐洲，約佔全球運力的 21% 和遠東至北美，估計佔全球運力的 16%。

The North-South trade growth has continued to be held back by the relatively weak commodity price environment, although some improvements in commodity price levels seen recently could create a limited positive impact. Even though volumes could increase marginally in 2017, expansion is likely to remain subdued overall, given the continuous relatively weak commodity price environment.

儘管近期商品價格水準的一些改善可能會產生有限的正面影響，但相對疲軟的商品價格環境繼續阻礙南北貿易成長。儘管 2017 年銷量可能小幅增長，但鑑於大宗商品價格環境持續相對疲軟，整體擴張可能仍將放緩。

Let's look at time charter rate development. According to Maersk Broker, Post-Panamax tonnage saw higher rates at the early part of this year. However, the availability growing and demand slowly evaporating, time charter rates for 8,500 TEU vessels came down from around $19,000 per day before May to $11,000 per day at the end of June. Similar drops were seen for the 6,000 TEU vessel time charter rates, which went down during the same period from around $14,000 a day to $10,000 per day. As regards Panamaxes, rates went from just over $10,000 a day to under $8,000 per day in June. The charter periods were on average between 8 and 12 months deployment.

讓我們來看看期租費率的發展。據馬士基經紀公司稱，今年年初超巴拿馬型船舶的運價出現了上漲。然而，隨著供應量的增加和需求的緩慢蒸發，8,500 TEU 船舶的期租費率從 5 月之前的每天 19,000 美元左右下降到 6 月底的每天 11,000 美元。6,000 TEU 船舶期租費率也出現類似下降，同期從每天約 14,000 美元下降至每天 10,000 美元。至於巴拿馬型船，6 月的費率從每天 1 萬美元多一點升至每天 8,000 美元以下。包機部署期平均為 8 至 12 個月。

However, in the latest report, Howe Robinson point out that time charter rates for Post-Panamax sizes are once again on the way up and supply is thin, which is supportive of a market that has recently been led by the performance of the larger sizes. We recently witnessed the first upward movement in the Howe Robinson containership index for 8 weeks, and the short-term indicators appear to be moving into a more relative phase.

然而，豪羅賓遜在最新報告中指出，超巴拿馬型船型的期租費率再次上漲，且供應量較少，這對最近由較大型船型的表現主導的市場提供了支撐。我們最近見證了豪羅賓遜貨櫃船指數連續 8 週首次上漲，短期指標似乎正在進入一個更相對的階段。

According to Maersk Broker, coming late autumn, a new round of demolitions of Panamaxes will have to take place for the market to maintain some sort of balance and hopefully increase again early next year. For the 2,000 to 4,000 TEU vessels, Maersk remain optimistic on weight from the latter part of the third quarter this year onward. They base this on limited newbuildings and longer-term potential market development on the demand side during 2018 and 2019.

據馬士基經紀公司稱，即將到來的深秋，新一輪巴拿馬型船舶的拆除工作將不得不進行，以使市場保持某種平衡，並有望在明年初再次增加。對於2,000至4,000 TEU船舶，馬士基對今年第三季後半段起的船舶重量仍持樂觀態度。他們的這項預測是基於 2018 年和 2019 年需求方面有限的新造船和長期潛在市場發展。

As for laid-up tonnage, according to Clarksons Research, the total level of idle capacity dropped to around 5.6% at the end of the first quarter of 2017 and fell further over the next few weeks to reach about 3.5% of the existing fleet. According to Braemar ACM, the idle containership fleet at the beginning of July was approximately 500,000 TEU, representing about 2.5% of trading fleet. Recent additions to the laid-up fleet amounted to 20,000 TEU came entirely from the smaller-sized vessels or below 7,500 TEU.

至於閒置噸位，克拉克森研究公司的數據顯示，2017 年第一季末閒置運力總水準下降至 5.6% 左右，並在接下來的幾週內進一步下降，達到現有船隊的 3.5% 左右。根據Braemar ACM的數據，7月初閒置的貨櫃船船隊約為50萬標準箱，約佔貿易船隊的2.5%。最近閒置船隊新增的 20,000 TEU 船舶全部來自小型船舶或 7,500 TEU 以下船舶。

So let's close with an outlook now for our industry. According to Clarksons, while the level of surplus capacity that has built up in the containership sector in recent years will still take time to be fully absorbed, further gradual improvement in the supply-demand balance is expected in the remainder of 2017 and 2018. As has been mentioned already, fleet expansion is expected to remain relatively low in the short term, reflecting both elevated levels of demolition and the continued subdued pace of delivery, which should allow a continuation of improved trend on the demand side to gradually erode surplus capacity.

最後，讓我們展望一下我們行業的前景。克拉克森表示，雖然近年來貨櫃船產業累積的過剩產能仍需要時間才能完全消化，但預計2017年剩餘時間和2018年供需平衡將進一步逐步改善。正如已經提到的，短期內船隊擴張預計將保持在相對較低的水平，反映出拆船量的增加和交付速度的持續低迷，這將使得需求端的改善趨勢繼續下去，從而逐步侵蝕過剩產能。

According to Clarksons Research, a significant amount of consolidation seen over the last few quarters will certainly have an impact on future development. There does appear to be general consensus that it is possible that any isolated downsize could be counterbalanced by the much-needed potential impact on supply-side management.

根據克拉克森研究公司的說法，過去幾季出現的大量整合肯定會對未來的發展產生影響。人們似乎確實達成了普遍共識，即任何孤立的規模縮減都可能被供應方管理所急需的潛在影響所抵消。

Putting the general tendency for recalibration alongside improving fundamentals and market conditions, the foundations for lasting improvement to the market environment are at last starting to appear. As our Chairman and CEO mentioned earlier on, there has been a dramatic improvement in the company's balance sheet this quarter coming from the recent buyout of Royal Bank of Scotland loan facility. Senior management realizes that more capital will be needed over the next few quarters to repay short and medium-term debt and enable the company to take advantage of opportunities, which may from time to time arise in our sector.

將調整的整體趨勢與基本面和市場狀況的改善結合起來，市場環境持續改善的基礎終於開始顯現。正如我們的董事長兼執行長早些時候提到的，由於最近收購了蘇格蘭皇家銀行貸款設施，本季公司的資產負債表有了顯著改善。高階管理層意識到，未來幾季將需要更多資本來償還短期和中期債務，並使公司能夠利用我們行業中不時出現的機會。

I will now pass the call over to our CFO, Andreas Michalopoulos, who will provide financial highlights for the second quarter and first half of 2017. Thank you.

我現在將把電話轉給我們的財務長 Andreas Michalopoulos，他將提供 2017 年第二季和上半年的財務摘要。謝謝。

Thank you, Stacey, and good morning. I'm pleased to be discussing today with you Diana Containerships Inc. operational results for the second quarter 2017 and the 6 months ended June 30, 2017.

謝謝你，史黛西，早安。我很高興今天與您討論戴安娜貨櫃船公司。2017年第二季及截至2017年6月30日止6個月的營運表現。

Second quarter 2017 net income of Diana Containerships Inc. amounted to $36.5 million, and the earnings per share, basic and diluted, amounted to $18.39 and $17.27, respectively.

戴安娜貨櫃船公司2017年第二季淨利潤每股收益為 3,650 萬美元，基本每股收益和稀釋每股收益分別為 18.39 美元和 17.27 美元。

Time charter revenues, net of prepaid charter revenue amortization, amounted to $5.5 million compared to $8 million in 2016. The decrease in net time charter revenues was mainly due to reduced employment opportunities and time charter rates compared to the same period of 2016.

定期租船收入（扣除預付租船收入攤銷後）為 550 萬美元，而 2016 年為 800 萬美元。淨期租收入下降的主要原因是與2016年同期相比，就業機會和期租費率減少。

Ownership days were 1,074 for the quarter compared to 1,183 in the same period of 2016. Fleet utilization was 73.4% for the quarter compared to 67.4% for 2016. The improvement of our fleet utilization is a result of decrease of holidays in the first 6 months of

本季的所有權天數為 1,074 天，而 2016 年同期為 1,183 天。本季機隊利用率為 73.4%，而 2016 年為 67.4%。我們機隊利用率的提高是由於今年前 6 個月假期的減少

(technical difficulty)

（技術難度）

The daily time charter equivalent rate was $4,708 compared to $5,979 in the second quarter of 2016.

日期租船等值費率為 4,708 美元，而 2016 年第二季為 5,979 美元。

Voyage expenses were $0.6 million for the quarter compared to $0.9 million in the respective period of 2016. The decrease is mainly attributable to decreased commissions, which are a percentage of the time charter revenues and also due to decreased bunker costs.

本季航程費用為 60 萬美元，而 2016 年同期為 90 萬美元。下降的主要原因是佣金減少（佔期租收入的一定比例）以及燃油成本下降。

Vessel operating expenses amounted to $5.9 million in the second quarter of 2017 compared to $7.9 million for the same quarter of 2016. The decrease was mainly attributable to the decrease of all major categories of the operating expenses, such as average insurance, stores, spares, repairs and maintenance and crew costs and was partly offset by increased lay-up expenses. Daily operating expenses were $5,507 for the second quarter of 2017 compared to $6,668 in 2016.

2017 年第二季船舶營運費用為 590 萬美元，而 2016 年同一季為 790 萬美元。減少的主要原因是所有主要類別的營運費用減少，例如平均保險、物料、備件、維修和保養以及船員成本，但部分被閒置費用增加所抵消。2017 年第二季的日常營運費用為 5,507 美元，而 2016 年為 6,668 美元。

Depreciation and amortization of deferred charges amounted to $2 million for the quarter. General and administrative expenses were $1.7 million in the second quarter of 2017 compared to $1.9 million for the same quarter of 2016, mainly due to decreased salaries as a result of reduced number of employees as well as due to decreased consultancy fees and consolidation cost on restricted stock awards.

本季遞延費用的折舊和攤銷金額為 200 萬美元。2017 年第二季的一般及行政費用為 170 萬美元，而 2016 年同一季度為 190 萬美元，主要是由於員工人數減少以及諮詢費和限制性業務合併成本減少導致工資下降。

Gain on vessel sales amounted $2.9 million and relates to the sale of the vessel DOUKATO in June 2017. Interest and finance costs for the second quarter of 2017 amounted to $2 million compared to $1.7 million in the respective period of 2016, mainly due to increased LIBOR rates and increased margin in both loan agreements with RBS and Diana Shipping Inc. Gain from bank debt write-off for the second quarter of 2017 amounted to $42.2 million and relates to the gain, net of related expenses, arising from the settlement agreement with respect to the secured loan facility with RBS, which was signed on June 30, 2017.

船舶銷售收益達 290 萬美元，與 2017 年 6 月出售 DOUKATO 船有關。2017 年第二季的利息和財務成本為 200 萬美元，而 2016 年同期為 170 萬美元，主要是由於 LIBOR 利率上升以及與蘇格蘭皇家銀行和戴安娜航運公司的貸款協議保證金增加。2017 年第二季銀行債務沖銷收益為 4,220 萬美元，與 6 月 30 日與蘇格蘭皇家銀行簽署的擔保貸款安排和解協議產生的收益（扣除相關費用）有關。

Turning now to the 6 months ended June 30, 2017. Net income of Diana Containerships Inc. amounted to $29.1 million, and the earnings per share, basic and diluted, amounted to $17.53 and $16.84, respectively. Time charter revenues, net of prepaid charter revenue amortization, amounted to $9.3 million compared to $19.8 million in 2016. The net time charter revenues decreased mainly due to the decreased time charter rates and increase of hire rates, partly offset by the decreased prepaid charter revenue amortization. Ownership days were 2,154 in 2017 compared to 4,300 -- to 2,434 in 2016. Fleet utilization was 66.8% compared to 73.3% in 2016. And the daily time charter equivalent rate was $3,876 for the period compared to $7,456 for the same period of 2016.

現在轉向截至 2017 年 6 月 30 日的 6 個月。戴安娜貨櫃船公司的淨利潤每股收益為 2,910 萬美元，基本每股收益和稀釋每股收益分別為 17.53 美元和 16.84 美元。定期租船收入（扣除預付租船收入攤銷後）為 930 萬美元，而 2016 年為 1,980 萬美元。淨定期租船收入下降主要是由於定期租船費率下降和租金率上升，但部分被預付租船收入攤提減少所抵銷。2017 年的所有權天數為 2,154 天，而 2016 年為 4,300 天，達到 2,434 天。機隊利用率為 66.8%，而 2016 年為 73.3%。該期間的每日定期租船等值費率為 3,876 美元，而 2016 年同期為 7,456 美元。

Voyage expenses were $1 million compared to $2 million for the same period of 2016. Vessel operating expenses for the 6 months ended June 30, 2017, amounted to $11.1 million compared to $16.8 million for the same period of 2016. The decrease was attributable to the decrease of all major categories of the operating expenses, offset by increased lay-up expenses.

航程費用為 100 萬美元，而 2016 年同期為 200 萬美元。截至2017年6月30日止6個月的船舶營運費用為1,110萬美元，而2016年同期為1,680萬美元。減少的原因是所有主要類別的營運費用減少，但被閒置費用增加所抵銷。

Daily operating expenses were $5,161 for 2017 compared to $6,893 in the prior period. Depreciation and amortization of deferred charges amounted to $4 million. General and administrative expenses amounted to $3.3 million compared to $3.7 million for the same period in 2016. The decrease in general and administrative expenses was mainly attributable to decreased salaries and brokerage fees.

2017 年日常營運費用為 5,161 美元，上一期間為 6,893 美元。遞延費用的折舊和攤提金額為 400 萬美元。一般及行政費用為 330 萬美元，而 2016 年同期為 370 萬美元。一般及行政費用減少主要由於工資和經紀費用減少。

Gain on vessels sales amounted to $0.9 million and relates to the sale of the vessel DOUKATO during 2017. Interest and finance costs were $3.9 million for 2017 compared to $3.5 million for 2016. In 2017, we have decreased average debt outstanding compared to 2016, however, LIBOR rates and margins increased in both loan agreements with RBS and Diana Shipping Inc. Gain from bank debt write-off for the 6 months ended June 30, 2017, amounted to $42.2 million and, as already mentioned, relates to the gain from the RBS loan write-off.

船舶銷售收益達 90 萬美元，與 2017 年出售 DOUKATO 號船舶有關。2017 年的利息和財務成本為 390 萬美元，而 2016 年為 350 萬美元。2017 年，與 2016 年相比，我們的平均未償債務有所下降，但與蘇格蘭皇家銀行和戴安娜航運公司簽訂的兩項貸款協議中的 LIBOR 利率和利潤率均有所增加。截至 2017 年 6 月 30 日止 6 個月，銀行債務沖銷收益達 4,220 萬美元，如前所述，與蘇格蘭皇家銀行貸款沖銷收益相關。

Thank you for your attention.

感謝您的關注。

We will be pleased to respond to your question. I'll return the call over to operator, who will instruct you as to the procedure for asking questions. Thank you.

我們將很高興回答您的問題。我會將電話回覆給接線員，接線員將指導您提問的程序。謝謝。

(Operator Instructions) I'm showing no questions in our question queue. So I will turn it back to management for closing comments.

（操作員說明）我的問題佇列中沒有顯示任何問題。因此，我會將其轉回給管理層以徵求結束意見。

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

再次感謝您對戴安娜貨櫃船公司的關注與支持。我們期待在未來幾個月與您交談。謝謝。

This concludes today's conference. Thank you for your participation. You may disconnect your lines at this time.

今天的會議到此結束。感謝您的參與。此時您可以斷開線路。