VLCCF - Fourth Quarter and Financial Year 2011 Results
(Thomson Reuters ONE) -
HIGHLIGHTS
* Knightsbridge reports net income of $9.5 million and earnings per share of
$0.39 for the fourth quarter of 2011.
* Knightsbridge reports EBITDA of $16.7 million and EBITDA per share of $0.68
for the fourth quarter of 2011.
* Knightsbridge announces a cash dividend of $0.50 per share for the fourth
quarter of 2011.
* Knightsbridge reports net income of $34.4 million and earnings per share of
$1.41 for the year ended December 31, 2011.
* Knightsbridge reports EBITDA of $62.6 million and EBITDA per share of $2.56
for the year ended December 31, 2011.
PRELIMINARY FOURTH QUARTER AND FINANCIAL YEAR 2011 RESULTS
Knightsbridge Tankers Limited (the "Company" or "Knightsbridge") reports net
income of $9.5 million and earnings per share of $0.39 for the fourth quarter
compared to net income of $9.1 million and earnings per share of $0.37 for the
third quarter of 2011. Net income increased primarily due to an improvement in
the results of the VLCC Kensington, which is operating in the spot market. The
average daily time charter equivalents ("TCEs") earned by the Company's VLCCs
and Capesize vessels were $26,900 and $36,500, respectively, compared with
$25,300 and $36,800 in the preceding quarter.
Cash and cash equivalents decreased by $2.5 million in the quarter. The Company
generated cash from operating activities of $10.6 million, used $0.9 million to
repay loan facilities and paid $12.2 million in dividends. "Other current
assets" have increased partly due to outstanding charter hires. The Company is
in constructive discussions with the relevant counterparts in order to resolve
this issue. In February 2012, the Company has an average cash breakeven rate for
the remainder of 2012 for its VLCCs, excluding bareboat charters, and Capesize
vessels of $14,100 and $7,600, respectively, per vessel per day. The VLCCs which
are on bareboat charters have a cash break even rate of $5,300 per vessel per
day.
For the year ended December 31, 2011 the Company reports net income of $34.4
million and earnings per share of $1.41 compared to net income of $38.6 million
and earnings per share of $2.02 for the year ended December 31, 2010. The
average daily TCEs for the Company's VLCCs, excluding bareboat charters, and
Capesize vessels for the year ended December 31, 2011 were $28,500 and $36,600,
respectively, compared with $37,700 and $41,100 for the year ended December
31, 2010.
THE TANKER MARKET
The market rate for a VLCC trading on a standard 'TD3' voyage between the
Arabian Gulf and Japan in the fourth quarter of 2011 was WS 54, representing an
increase of approximately WS 7.5 points from the third quarter of 2011 and a
decrease of approximately WS 4 points from the fourth quarter of 2010. Present
market indications are approximately $20,000/day in the first quarter of 2012.
Bunkers at Fujairah averaged $672/mt in the fourth quarter of 2011 compared to
$664/mt in the third quarter of 2011; an increase of approximately $9/mt. Bunker
prices varied between a low of $629/mt at the beginning of October and a high of
$711/mt on November 14, 2011.
The International Energy Agency's ("IEA") January 2012 report stated an average
OPEC oil production, including Iraq, of 30.53 million barrels per day (mb/d)
during the fourth quarter of the year. This was an increase of 0.6 million
barrels per day compared to the third quarter of 2011 and an increase of 1.1
million barrels per day compared to the fourth quarter of 2010.
IEA further estimates that world oil demand averaged 89.53 mb/d in the fourth
quarter of 2011, which is the same level as the previous quarter, and a decrease
of approximately 0.25 mb/d from the fourth quarter of 2010. Additionally, the
IEA estimates that world oil demand will average approximately 90 mb/d in 2012,
representing an increase of 1.2 percent or approximately 1.07 mb/d from 2011.
The VLCC fleet totalled 594 vessels at the end of the fourth quarter of 2011, up
from 584 vessels at the end of the previous quarter. 11 VLCCs were delivered
during the quarter whilst one was deleted. The orderbook counted 123 vessels at
the end of the fourth quarter, down from 131 orders from the previous quarter.
Three new orders were placed during the quarter, and the current orderbook
represents about 21 percent of the VLCC fleet. According to Fearnleys the single
hull fleet stands at 30 vessels.
THE DRY BULK MARKET
For quite some time dry bulk analysts have focused on the order book and
potential oversupply of dry bulk vessels. In 2011 more than 1100 vessels entered
the market out of which 250 were Capesizes and 290 were Panamaxes.
At the beginning of 2011 the official order book showed as much as 140 million
dead weight ton (mdwt) scheduled to be delivered during the year which
represented as much as 25 percent of the existing fleet at the time. However,
the same trend witnessed in 2009 and 2010 persisted throughout 2011. A
combination of delays, cancellations and restructuring of contracts resulted in
a delivery ratio of 67 percent compared to the official order book. Forecasters
are questioning the quality of the input to the official order book which mainly
derives from lack of information when cancellation are done and not reported. In
addition, the ambitious plans of many so called green field yards have not been
realistic.
Scrapping, which is mainly a function of the earnings in the spot market, was at
a historic high in 2011. Almost 25 mdwt was scrapped and the average age of the
vessels being scrapped was at its lowest since 2003. Consequently the net fleet
growth was 77 mdwt or close to 14 percent of the existing fleet.
With such supply growth we should have expected a dramatic drop in utilization
and earnings, but that did not happen, at least not to the same extent as most
analysts predicted. Earnings for the smaller sizes were relatively flat
throughout the year, while caepsize earnings were split in two with considerably
higher returns in the second half of the year compared to the first half. Three
factors made the first half particularly difficult. Adverse weather in Australia
with flooding combined with generally bad weather conditions in the southern
hemisphere, the earthquake and the devastating tsunami in Japan, and lastly the
traditional high influx of newbuildings which takes place at the beginning of
every calendar year. However, it is believed that the average utilization of the
dry bulk fleet during 2011 was around 85 percent: The increase in ton mile
demand was close to 10 percent, while volume growth on its own was less than six
percent. Other positive elements were slow steaming, congestion and Chinese
coastal trade.
Since the start of the dry bulk "super cycle" in 2003 focus has been on China.
The country has accounted for about 95 percent of incremental growth and the
dependence of Chinese growth will remain the same in the coming years. In 2011,
dry bulk imports to China increased by 21.5 percent and in four months last year
monthly imports of all dry bulk commodities exceeded 100 million metric tons.
Looking in to the future, most forecasters agree that 2012 will be a challenging
year for owners of dry bulk tonnage. It is expected that net supply growth could
almost reach same levels as in 2011, while demand growth is expected to be
slightly lower resulting in lower spot earnings and further downward pressure on
asset values.
Further out in time, analysts are giving good reasons for a potential positive
fundamental trend shift. In 2013, the order book is considerably smaller and, in
spite of a bleak outlook for the European economies in particular, demand growth
is expected to remain robust. A combination of poorer quality of the Chinese
iron production and substantial new capacity of international iron ore entering
the market will most likely give a positive arbitrage for Chinese steel
producers. It is also expected that Indian ore exports will continue to diminish
which in turn will result in longer sailing distances for iron ore in general.
The coal imported to China only accounts for six percent of the total Chinese
coal consumption and similar to iron ore it is expected that positive arbitrage
will stimulate imports. India will continue its strong growth in coal imports
and could potentially as well be forced to import iron ore if analysts are
correct when they forecast Indian steel production in the years to come.
CORPORATE AND OUTLOOK
The Company's VLCC and Capesize fleet is fixed on time and bareboat charters
expiring between April 2012 and 2016, except for the VLCC Kensington which is
employed in the spot market.
Despite the continued soft development in vessel values, the Company's loan to
value ratios are comfortable due to the low gearing of the Company. It is the
Company's intention to renew and grow the fleet. The Board believes it has been
prudent to delay new investments, based on the decrease in vessel values. The
Company will seek to take advantage of the current weakness in the market to
develop new projects. The Company's financial flexibility is strong with cash at
hand, low gearing and availability of a revolving credit facility of $75
million.
On December 22, 2011, the Board granted a total of 93,189 restricted stock units
(RSUs) pursuant to the 2010 Equity Plan to members of the Board of the Directors
and the two management companies. These RSUs will vest rateably over three years
at a rate of one third of the number of RSUs granted on each anniversary of the
date of grant.
On January 9, 2012, the Company announced an amendment to the time charter with
Frontline Ltd. for the VLCC Hampstead. The time charter hire has been reduced
from $37,750 per day to $27,050 per day for the remaining period of the charter
commencing January 1, 2012. The expected redelivery date is April 22, 2012. The
Company will be compensated if actual earnings exceed the new rate up to and
including the original rate.
On February 7, 2012, the Board declared a dividend of $0.50 per share. The
record date for the dividend is February 23, 2012, the ex dividend date is
February 21, 2012 and the dividend will be paid on or around March 8, 2012.
24,425,699 ordinary shares were outstanding as of December 31, 2011, and the
weighted average number of shares outstanding for the fourth quarter was
24,425,699.
FORWARD LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business. Forward-
looking statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
Knightsbridge desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The words
"believe," "except," "anticipate," "intends," "estimate," "forecast," "project,"
"plan," "potential," "will," "may," "should," "expect" "pending" and similar
expressions identify forward-looking statements.
The forward-looking statements in this document are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections.
In addition to these important factors, important factors that, in our view,
could cause actual results to differ materially from those discussed in the
forward-looking statements include the strength of world economies and
currencies, general market conditions, including fluctuations in charterhire
rates and vessel values, changes in demand in the tanker market, as a result of
changes in OPEC's petroleum production levels and world wide oil consumption and
storage, changes in Knightsbridge's operating expenses, including bunker prices,
drydocking and insurance costs, the market for Knightsbridge's vessels,
availability of financing and refinancing, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential liability from
pending or future litigation, general domestic and international political
conditions, potential disruption of shipping routes due to accidents or
political events, and other important factors described from time to time in the
reports filed by Knightsbridge with the Securities and Exchange Commission.
The full report is available in the link enclosed.
The Board of Directors
Knightsbridge Tankers Limited
Hamilton, Bermuda
February 7, 2012
Questions should be directed to:
Contact:
Ola Lorentzon: Chairman, Knightsbridge Tankers Limited
+ 46 703 998886
Inger M. Klemp: Chief Financial Officer, Knightsbridge Tankers Limited
+47 23 11 40 76
4th Quarter and FY 2011 Results :
http://hugin.info/132879/R/1583713/495282.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Knightsbridge Tankers Limited via Thomson Reuters ONE
[HUG#1583713]
Unternehmensinformation / Kurzprofil:
Datum: 08.02.2012 - 12:49 Uhr
Sprache: Deutsch
News-ID 112466
Anzahl Zeichen: 15954
contact information:
Town:
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Kategorie:
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