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Diana Containerships posts lower 3Q net income

NEW YORK (AP) -- Diana Containerships Inc. said Monday that its third-quarter net income declined despite higher revenue, as vessel operating and other expenses increased.

The company earned $1.6 million, or 5 cents per share, down 41 percent from $2.7 million, or 12 cents per share, a year ago. The number of shares outstanding rose to $29.6 million from 22.9 million.

Revenue rose 50 percent to $14.6 million, helped by an increase in the number of vessels in the company's fleet.

Analysts, on average, expected earnings of 7 cents per share on revenue of $14.8 million, according to FactSet.

Diana said that its vessel operating costs nearly doubled in the third quarter, to $7.4 million from $3.7 million a year earlier.

Jefferies analyst Douglas Mavrinac said that weak economic conditions are likely to continue to weigh on containership demand. But he thinks the market will "likely remain well-balanced in 2013."

Shares of the containership company rose 58 cents, or 10.5 percent, to close at $6.10. The stock has traded in a 52-week range of $4.57 to $7.88