Gain on time charter agreement termination totaled $6.45 million for the first half of 2012, representing a cash payment of $5.73 million and fuel oil valued at $0.72 million received as compensation for the early redelivery of vessel the Star Sigma by its previous charterer. No gain on time charter agreement was recorded during the first half of 2013.
Other operational gain amounted to $1.6 million during the first half of 2013 and mainly consisted of non-recurring revenue of $1.2 million, which represented the payment of installments due to us under settlement agreement for a commercial claim and a gain of $0.4 million regarding a hull and machinery claim. Other operational gain amounting to $0.1 million during the first half of 2012, represents a gain from a hull and machinery claim.
In September 2010, we signed an agreement to sell a 45% interest in the future proceeds related to the settlement of certain commercial claims. As a result, in connection to the settlement amount of $1.2 million described in other operational gain above, during the first half of 2013, we incurred an expense of $0.6 million which is included under other operational loss. During the first half of 2012, no other operational loss incurred.
For the first half of 2013, loss on sale of vessel of $0.1 million represents a loss on sale of the vessel Star Sigma that concluded in March of 2013 and the vessel was delivered to her new owners on April 10, 2013. For the first half of 2012, loss on sale of vessel of $3.2 million represented a loss on sale of the vessel Star Ypsilon that concluded in February of 2012.
In June 2013, we entered into two interest rate swap agreements. The valuation of these as of June 30, 2013, resulted into a gain amounting to $0.4 million. Gain on derivative instruments for the first half of 2012 amounted to $0.1 million.
Interest and finance costs for the first half of 2013 were $3.8 million, while for the first half of 2012 were $4.1 million. The decrease in our interest expenses was mainly due to decrease in average outstanding debt during the first half of 2013 amounting to $206.6 million compared to $251.3 million for the first half of 2012.
(*) Amounts relating to variations in period-on-period comparisons shown in this section are derived from the actual numbers in our books and records
Liquidity and Capital Resources
Net cash provided by operating activities for the first half of 2013 and 2012, was $15.0 million and $19.4 million, respectively. Cash flows generated by the operation of our fleet decreased mainly due to lower average TCE rates, (see "Summary of Selected Data" below) as a result of the decline in the prevailing freight rate environment. For the first half of 2013, we earned a daily TCE rate of $14,301 compared to a daily TCE rate of $15,724 for the first half of 2012. Net cash provided by operating activities for the first half of 2013 decreased also due to fewer voyage days, which amounted to 2,378 compared to 2,468 days during the same period of 2012.
Net cash provided by investing activities for the first half of 2013 and 2012, was $16.3 million and $10.6 million, respectively. For the first half of 2013 net cash provided by investing activities consisted of $8.3 million representing proceeds from sale of the vessel Star Sigma which concluded in March 2013 and under which the vessel was delivered to its new owner on April 10, 2013, a decrease of $7.6 million in restricted cash and insurance proceeds amounting to $1.2 million offset by additions to vessels cost and other fixed assets amounting to $0.8 million. Net cash provided by investing activities for the first half of 2012 consisted of the proceeds from sale of the vessel Star Ypsilon amounting to $8.0 million, a net decrease of $1.3 million in restricted cash, insurance proceeds amounting to $1.4 million and $0.1 million regarding additions to vessels cost and other fixed assets.
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