ITCL - First Quarter 2013 Results
(Thomson Reuters ONE) -
Highlights
* Independent Tankers reports a net loss of $1.8 million, equivalent to a loss
per share of $0.02 for the first quarter of 2013.
* In January 2013, BP Shipping gave twelve months notice of its intention to
terminate the bareboat charter for the VLCC British Progress.
* In March 2013, the VLCC Phoenix Voyager was redelivered to the Company by
Chevron.
Introduction
Independent Tankers Corporation Limited (the "Company" or "Independent Tankers")
was incorporated in Bermuda on January 18, 2008 and the shares have traded on
the Norwegian over-the-counter market since March 7, 2008. Independent Tankers'
business is mainly concentrated on the ownership and operation of crude oil
tankers on long term bareboat contracts to major oil companies and two vessels
operating in the spot market. Independent Tankers owns six VLCC's and three
Suezmax tankers. All vessels are financed through bonds in the U.S. market. The
main shareholder is Frontline Ltd. with an ownership of approximately 83
percent.
First Quarter 2013 Results
The Board of Independent Tankers announces a net loss of $1.8 million,
equivalent to a loss per share of $0.02 for the first quarter of 2013 compared
to a net loss of $1.9 million, equivalent to a loss per share of $0.02 for the
fourth quarter of 2012. The average daily time charter equivalent rate earned in
the first quarter by the Company's VLCCs trading in the spot market was $13,600
compared with $9,800 in the preceding quarter. The average daily bareboat rate
earned in the first quarter by the Company's VLCCs was $22,100, which was the
same as the preceding quarter.
In May 2013, the average total cash cost breakeven rates for the remaining part
of 2013 is approximately $30,600 per day for the three spot trading VLCCs and
$21,300 per day for the three vessels on bareboat charters.
Chartering Summary
In January 2013, BP Shipping gave twelve months notice of its intention to
terminate the bareboat charter for the VLCC British Progress. Termination will
take effect on February 2, 2014.
In March 2013, the VLCC Phoenix Voyager was redelivered to the Company by
Chevron. The vessel was renamed Ulysses and commenced trading in the spot
market.
Other Matters
In January 2013, the Company sold $6.8 million of the Windsor Notes for proceeds
of $4.5 million. In April 2013, the Company sold $1.7 million of the Windsor
Notes for proceeds of $1.0 million and in May 2013, the Company sold $8.5
million for proceeds of $5.2 million. The proceeds from the sales were used to
partially repay the loan from Frontline Ltd. The difference between the value of
the bonds sold and the sale proceeds is recorded as a discount on issuance of
debt in the balance sheet and will be amortized over the term of the notes.
74,825,166 ordinary shares were outstanding as of March 31, 2013, and the
weighted average number of shares outstanding for the quarter was also
74,825,166.
The Market
The market rate for a VLCC trading on a standard 'TD3' voyage between the
Arabian Gulf and Japan in the first quarter of 2013 was WS 35, representing a
decrease of approximately WS 7.8 point from the fourth quarter of 2012 and a
decrease of approximately WS 21 points from the first quarter of 2012. The flat
rate increased by 9.1% from 2012 to 2013.
Bunkers at Fujairah averaged $633/mt in the first quarter of 2013 compared to
$615/mt in the fourth quarter of 2012. Bunker prices varied between a low of
$606/mt on January 2 and a high of $663/mt on February 18.
The International Energy Agency's ("IEA") May 2013 report stated an OPEC oil
production, including Iraq, of 30.5 million barrels per day (mb/d) in the first
quarter of 2013. This was a decrease of 0.4 mb/d compared to the fourth quarter
of 2012.
The IEA estimates that world oil demand averaged 89.8 mb/d in the first quarter
of 2013, which is a decrease of 1.2 mb/d compared to the previous quarter. IEA
estimates that world oil demand in 2013 will be 90.6 mb/d, representing an
increase of 0.9 percent or 0.8 mb/d from 2012.
The VLCC fleet totalled 634 vessels at the end of the first quarter of 2013, up
from 622 vessels at the end of the previous quarter. 14 VLCCs were delivered
during the quarter, two were removed. The order book counted 81 vessels at the
end of the first quarter, unchanged from the previous quarter. The current order
book represents approximately 13 percent of the VLCC fleet. According to
Fearnleys, the single hull fleet is 15 vessels, two less than last quarter.
Strategy and Outlook
The Company's strategy is mainly concentrated on chartering out vessels on long
term charters to reputable oil companies, for the time being BP and Chevron. The
Company's charter coverage for its six double hull VLCCs is 53 percent in 2013
and 20 percent in 2014 if the current charters are not extended further. The
charter coverage for the three double hull Suezmax tankers is 100 percent until
2015.
Following the termination of the bareboat charters for the VLCCs Ulriken,
Pioneer and Ulysses (ex. Phoenix Voyager) in 2010, 2011 and 2013 respectively,
these vessels are trading in the spot market and are exposed to earnings
fluctuations.
The Company's assets are financed through the US bond market with maturities
from 2015 to 2021. The fixed minimum bareboat rates of $20,000 per day for three
of the Windsor Petroleum VLCCs supports the debt of these vessels until the
charters expire in 2014 (or potentially longer if contracts are extended).
However, with current earnings being around operating expense levels for the
spot trading vessels, the Company will have to draw on the restricted cash
reserves to operate these vessels. Continued operation in the spot market at
rates that do not support the debt of the vessels increases the risk of the
Company and will have a negative influence on the Company's future earnings and
credit profile if the low spot rates continue, in addition to increasing the net
debt of the Company.
The broker valuations received for the vessels at March 31, 2013 indicate that
the market values of the Windsor vessels are lower than the net debt of the
vessels. The two VLCCs in the Golden State bond structure had combined estimated
market values in line with the net debt of the vessels. Whether the estimated
market values can be achieved through actual transactions is highly uncertain
due to the lack of liquidity in the secondhand sale and purchase market for
VLCCs. The Company has not given any financial guarantees for any of its
subsidiaries.
Forward Looking Statements
This press release contains forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including the Company's management's examination of historical
operating trends. Although the Company believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond its control, the Company cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to
differ materially from those discussed in this press release include the
strength of world economies and currencies, general market conditions including
fluctuations in charter hire 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 the Company's operating
expenses including bunker prices, drydocking and insurance costs, 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 the Company with the Norwegian over-the-
counter market in Oslo.
The Board of Directors
Independent Tankers Corporation Limited
Hamilton, Bermuda
June 6, 2013
Questions should be directed to:
Magnus Vaaler: Vice President Finance, Frontline Management AS
+47 23 11 40 00
1st quarter 2012 results :
http://hugin.info/138953/R/1707645/565552.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: Independent Tankers Corporation Limited via Thomson Reuters ONE
[HUG#1707645]
Unternehmensinformation / Kurzprofil:
Datum: 06.06.2013 - 12:25 Uhr
Sprache: Deutsch
News-ID 267306
Anzahl Zeichen: 10264
contact information:
Town:
0112 Oslo
Kategorie:
Business News
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