's Board of Directors has declared a cash dividend of $0.57 per share. The dividend is payable on November 4, 2008 to shareholders of record at the close of business on October 31, 2008.
The additional charter hire earned during the third quarter of 2008 was derived from profit sharing arrangements under the time charters of the Company's V-MAX, Panamax and Product tankers. Of the $1.2 million in additional charter hire, $700,000 was attributed to profit sharing for the two V-MAX vessels. The remaining $500,000 was attributed to additional charter hire from the Company's two Panamax tankers. For these two vessels, the average time charter equivalent rates under the Company's profit sharing agreements over the preceding twelve months were in excess of contractual minimum levels.
The Company's operating expenses during the third quarter of 2008, including depreciation costs of $3.9 million and administrative expenses of $2.7 million were $11.8 million. Included in the $2.7 million of administrative expenses are $2.3 million of expenses incurred in connection with the Company's pending merger with General Maritime Corporation. These merger costs were funded with a portion of the Company's interest rate swap benefit realized in 2005 that had not been previously distributed to shareholders. The Company's interest expense, net of interest income for the third quarter of 2008, was $3.4 million. This expense represents interest under the Company's $229.5 million, secured credit facility with The Royal Bank of Scotland plc.
The Company's net income for the third quarter of 2008 was decreased by an unrealized loss of approximately $270,000, representing the change in the fair value of the Company's interest rate swap arrangement related to its secured credit facility with The Royal Bank of Scotland plc. As a result, the Company's net income for the third quarter of 2008 was $2.4 million, or $0.16 per share. Excluding the expenses incurred in connection with the pending General Maritime merger and the effect of the unrealized loss on the interest rate swap, the Company's net income for the third quarter of 2008 was $4.9 million, or $0.32 per share.
On August 5, 2008, the Company entered into a definitive agreement with General Maritime whereby the two companies will combine in a stock-for-stock combination. Under the terms of the definitive agreement, shareholders of General Maritime will receive 1.340 shares of the combined company for each share of General Maritime held, and shareholders of Arlington Tankers will receive one share of the combined company for each share of Arlington Tankers held. The completion of the proposed merger remains subject to approval by the shareholders of and General Maritime, and certain other conditions. The transaction is expected to be completed by the end of the fourth quarter of 2008.
All of 's eight vessels are currently trading on time charter contracts to subsidiaries of and Concordia Maritime AB. The charters have terms that expire at various dates, with the charters for four vessels expiring in 2009, the charters for two vessels expiring in 2010 and the charters for two vessels expiring in 2011. All of the charter contracts also include options to extend the terms of the charters. During the second quarter of 2008, the Company announced that Stena had exercised the first of its three one-year options for the Stena Companion and Stena Concord, and its 30-month options for the Stena Contest and Stena Concept.