Our adjusted net income was $15.6 million, or $0.14 per share, for the three months ended September 30, 2012 compared to $17.6 million, or $0.16 per share, for the three months ended September 30, 2011. We have adjusted our net income in the third quarter of 2012 for unrealized losses on derivatives of $12.9 million, realized losses on swaps of $5.0 million attributable to our over-hedging position (as described below), as well as a non-cash expense of $4.8 million for fees related to our comprehensive financing plan (comprised of non-cash, amortizing and accrued finance fees). Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The decrease of 11.4%, or $2.0 million, in adjusted net income for the three months ended September 30, 2012 compared to the three months ended September 30, 2011, was attributable to the softening of the charter market during the last year. Although the vessel additions to our fleet over the course of the last year was accretive to the bottom line, the soft charter market has triggered the cold lay up of 4 vessels and has also affected the re-chartering of another 7 vessels that currently run at operating break even levels while they had a positive contribution to earnings during the 3rd quarter of 2011.
On a non-adjusted basis our net loss was $7.0 million, or $0.06 per share, for the third quarter of 2012, compared to net loss of $0.8 million, or $0.01 per share, for the third quarter of 2011, which is mainly attributable to the unrealized losses on our interest rate swaps discussed above.
As a result of our comprehensive financing plan, we are in an over-hedged position under our cash flow interest rate swaps, which is due to deferred progress payments to shipyards, cancellation of three newbuildings in 2011, the replacement of variable interest rate debt with fixed interest rate vendor financing and equity proceeds from our private placement in 2010, all of which reduced initially forecasted variable interest rate debt and resulted in notional cash flow interest rate swaps being above our variable interest rate debt eligible for hedging. The over-hedged position described above is gradually being reduced and ultimately will be eliminated by the end of 2012.
On July 1, 2012, we elected to prospectively de-designate interest rate swaps for which we were applying hedge accounting treatment due to the compliance burden associated with this accounting policy. As a result, all changes in the fair value of our interest rate swaps will be recorded in earnings under "Unrealized (Losses)/Gains on Derivatives" from the de-designation date forward. In addition, unrealized losses in Accumulated Other Comprehensive Loss associated with the previously designated cash flow interest rate swaps will be reclassified to earnings as the respective interest payments are recognized in earnings.
Discontinuation of hedge accounting increases the potential volatility in our reported earnings due to the recognition of non-cash fair value movements of our interest rate swaps directly to our earnings, however our adjusted earnings will not be affected.
Operating revenue increased 24.0%, or $30.3 million, to $156.3 million in the three months ended September 30, 2012, from $126.0 million in the three months ended September 30, 2011. The increase was primarily attributable to the addition of eight vessels to our fleet, as follows:
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