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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
Operating revenue increased 25.8%, or $120.9 million, to $589.0 million in the twelve months ended December 31, 2012, from $468.1 million in the twelve months ended December 31, 2011. The increase was primarily attributable to the addition of six vessels to our fleet, as follows:
Vessel Name Vessel Size (TEU) Date Delivered------------------------ ------------------------ ------------------------Hyundai Together 13,100 February 16, 2012CMA CGM Melisande 8,530 February 28, 2012Hyundai Tenacity 13,100 March 8, 2012Hyundai Smart 13,100 May 3, 2012Hyundai Speed 13,100 June 7, 2012Hyundai Ambition 13,100 June 29, 2012
These additions to our fleet contributed revenues of $88.8 million during the twelve months ended December 31, 2012 (1,564 operating days in total).
Furthermore, operating revenues for the twelve months ended December 31, 2012, reflect:
•$64.0 million of incremental revenues in the twelve months ended December 31, 2012 compared to the same period of 2011, related to two 3,400 TEU containerships (the Hanjin Algeciras and the Hanjin Constantza, which were added to our fleet on January 26, 2011 and April 15, 2011, respectively), three 10,100 TEU containerships (the Hanjin Germany, the Hanjin Italy and the Hanjin Greece, which were added to our fleet on March 10, 2011, April 6, 2011 and May 4, 2011, respectively) and four 8,530 TEU containerships (the CMA CGM Attila, the CMA CGM Tancredi, the CMA CGM Bianca and the CMA CGM Samson, which were added to our fleet on July 8, 2011, August 22, 2011, October 26, 2011 and December 15, 2011, respectively).
•$2.4 million decrease in revenues in the twelve months ended December 31, 2012 compared to the same period in 2011, related to the sale of one 2,130 TEU containership, the Montreal, on April 27, 2012.
•$29.5 million decrease in revenues in the twelve months ended December 31, 2012 compared to the same period of 2011. This was mainly attributable to increased off-hire days by 1,136 days, to 1,613 days in the twelve months ended December 31, 2012, from 477 days in the twelve months ended December 31, 2011 ($18.5 million reduction in revenue in relation to certain vessels that were off-charter and laid up for 1,349 days during the twelve months ended December 31, 2012 compared to 155 days during the twelve months ended December 31, 2011).
Vessel Operating Expenses
Vessel operating expenses increased 3.6%, or $4.3 million, to $123.4 million in the twelve months ended December 31, 2012, from $119.1 million in the twelve months ended December 31, 2011. The increase is mainly attributable to the increased average number of vessels in our fleet during the twelve months ended December 31, 2012 compared to the same period of 2011. This overall increase was offset in part by the lower average daily operating cost per vessel of $5,907 for the twelve months ended December 31, 2012 compared to $6,246 for the twelve months ended December 31, 2011 (excluding vessels on lay-up).
