Excluding these non-cash items, net income for the first half of 2012 would amount to $3.2 million, or $0.59 earnings per basic and diluted share, based on 5,385,359 shares, which was the weighted average number of basic and diluted shares.
Adjusted EBITDA for the first half of 2013 and 2012, excluding the above items, was $17.1 million and $26.4 million, respectively. A reconciliation of EBITDA and adjusted EBITDA to net cash provided by cash flows from operating activities is set forth below.
We owned and operated an average of 13.6 and 14.4 vessels during the first half of 2013 and 2012, respectively, earning an average TCE rate of $14,301 and $15,724 per day, respectively. We refer you to the information under the heading "Summary of Selected Data" later in this earnings release for further information regarding our calculation of TCE rates.
Voyage expenses decreased to $4.5 million for the first half of 2013 compared to $14.0 million for the first half of 2012. The decrease is attributable to:
a) voyage expenses of $4.1 million related to chartering-in third party vessels to serve shipments under a Contract of Affreightment (COA) recorded in the first half of 2012 while there were no corresponding expenses during the first half of 2013. The respective revenues earned from the COA during the first half of 2012 was $3.4 million.
b) the fact that during the first half of 2013 our vessels were under voyage charter agreements for 149 days while during the first half of 2012 our vessels were under voyage charter agreements for 242 days. Under voyage charter agreements all voyage costs are borne and paid by us, as opposed to time charter agreements where they are paid by the charterer. The revenues earned from the voyage charter agreements during the first half of 2013 and 2012 were $4.2 million and $11.8 million, respectively, after excluding COAs.
For the first half of 2013, vessel operating expenses decreased to $13.7 million compared to $14.2 million for the first half of 2012. The decrease is mainly due to fewer ownership days during the first half of 2013 as compared to the same period in 2012. Ownership days for the first half of 2013 and 2012 were 2,454 and 2,616, respectively.
For the first half of 2013, dry-docking expenses totaled $0.6 million compared to $1.0 million for the first half of 2012. The amount of $1.0 million incurred during the first half of 2012, mainly refers to the portion of the dry-docking cost for vessel Star Mega, which underwent a periodic dry-docking survey in late June 2012.
Depreciation expense decreased to $8.1 million for the first half of 2013, compared to $19.2 million for the first quarter of 2012. The decrease was due to:
a) the impairment losses recognized as of September 30, 2012, in connection with our oldest Capesize vessel, the Star Sigma, and the entire fleet of our eight Supramax vessels, which resulted in a further reduction in the net book value for the respective vessels.
b) the lower average number of vessels of 13.6 during the first half of 2013 compared to 14.4 during the first half of 2012.
For the first half of 2013, general and administrative expenses totaled $4.7 million compared to $5.3 million for the first half of 2012. If we exclude the stock based compensation expense for the first half of 2013 and 2012, which amounted to $0.6 million and $1.4, respectively, the general and administrative expenses would slightly increase due to increase of our number of employees during the first half of 2013 compared to the same period in 2012, as a result of the growth of our managed fleet.
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