ITCL - Third Quarter and Nine Months 2013 Results
(Thomson Reuters ONE) -
Highlights
· Independent Tankers reports a net loss of $4.2 million, equivalent to
a loss per share of $0.06, for the third quarter of 2013.
· Independent Tankers reports a net loss of $10.2 million, equivalent to
a loss per share of $0.14, for the nine months ended September 30, 2013.
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 has three
vessels operating in the spot market. Independent Tankers owns six VLCC's and
three Suezmax tankers. All vessels are financed through bonds in the US market.
The main shareholder is Frontline Ltd. ("Frontline") with an ownership of
approximately 83 percent.
Third Quarter and Nine Months 2013 Results
The Board of Independent Tankers announces a net loss of $4.2 million,
equivalent to a loss per share of $0.06, for the third quarter of 2013. This
compares with a net loss of $4.1 million, equivalent to a loss per share of
$0.06, for the preceding quarter. The average daily time charter equivalent rate
earned in the third quarter by the VLCCs trading in the spot market was $11,300
compared with $12,500 in the preceding quarter. The average daily bareboat rate
earned in the third quarter by the Company's VLCCs was $20,000, which was the
same as in the preceding quarter.
The Board of Independent Tankers announces a net loss of $10.2 million,
equivalent to a loss per share of $0.14, for the nine months ended September
30, 2013. This compares with a net loss of $4.7 million, equivalent to a loss
per share of $0.6 for the nine months ended September 30, 2012. The increase in
the loss is primarily attributable to a decrease in earnings from the Ulysses
following the termination of the bareboat charter on March 15, 2013 and the
commencement of trading in the spot market and the amortization of the discount
on the issuance of debt. These factors were partially offset by an improvement
in the spot earnings from the Ulriken. The average daily time charter equivalent
rate earned in the nine months ended September 30, 2013 by the VLCCs trading in
the spot market was $12,300 compared with $13,400 in the nine months ended
September 30, 2012. The average daily bareboat rate earned in the nine months
ended September 30, 2013 by the Company's VLCCs was $20,700 compared with
$22,100 in the nine months ended September 30, 2012.
In November 2013, the average cash breakeven rate for the remaining part of
2013 is approximately $33,900 per day for the three spot trading VLCCs and
$21,300 per day for the three vessels on bareboat charters.
Chartering Summary
In July 2013, BP Shipping Ltd. ("BP") did not exercise its right to terminate
the lease for the VLCC British Purpose and so the charter will continue until
July 14, 2015, if not further extended. The vessel will trade on a market rate
with a minimum of $20,000 per day until July 14, 2014 at which time the charter
is converted from the Minimum Rate Period to the Variable Rate Period in
accordance with the terms of the charter agreement with BP.
In July 2013, BP gave twelve months irrevocable notice of termination of the
bareboat charter for the VLCC British Pride. The vessel will be redelivered to
the Company on July 30, 2014.
Other Matters
74,825,166 ordinary shares were outstanding as of September 30, 2013, and the
weighted average number of shares outstanding for the third quarter was also
74,825,166.
On September 20, 2013, at the Annual General Meeting of the Company, it was
resolved that the issued and paid-up share capital of the Company be reduced
from $22,447,549.80 to $748,251.66, with effect from September 30, 2013, by
cancelling the paid-up capital of $0.29 on each of the ordinary shares in issue
so that each of the 74,825,166 shares of par value $0.30 shall have a par value
of $0.01. It was also resolved that the amount of credit arising be credited to
the contributed surplus account of the Company and that the authorized share
capital of the Company be maintained at $200,000,000 comprising 20 billion
shares of $0.01 each.
The Market
The market rate for a VLCC trading on a standard 'TD3' voyage between the
Arabian Gulf and Japan in the third quarter of 2013 was WS 36, representing a
decrease of WS 1 point from the second quarter of 2013 and the same level as the
third quarter of 2012. The flat rate increased by 9.1 percent from 2012 to 2013.
Bunkers at Fujairah averaged $600/mt in the third quarter of 2013 compared to
$614/mt in the second quarter of 2013. Bunker prices varied between a high of
$617/mt on August 29th and a low of $585/mt on July 3rd.
The International Energy Agency's ("IEA") October 2013 report stated an OPEC
crude production, including Iraq, of 30.5 million barrels per day (mb/d) in the
third quarter of 2013. This was a decrease of 0.3 mb/d compared to the second
quarter of 2013.
The IEA estimates that world oil demand averaged 91.7 mb/d in the third quarter
of 2013, which is an increase of 1.2 mb/d compared to the previous
quarter. IEA estimates that world oil demand in 2013 will be 91.0
mb/d, representing an increase of 1.0 percent or 1.0 mb/d from 2012.
The VLCC fleet totalled 623 vessels at the end of the third quarter of 2013,
unchanged from the previous quarter. Five VLCCs were delivered during the
quarter, five were removed. The order book counted 56 vessels at the end of the
third quarter which represents nine percent of the VLCC fleet. According to
Fearnleys, the single hull fleet is down to one vessel.
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 fixed rate charter coverage for its six double hull VLCCs is 53
percent in 2013 and 20 percent in 2014. 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. Within 2014, all the vessels will eventually be exposed to the
spot market fluctuations as the British Progress and British Pride will be
redelivered from BP in February and July respectively, and the British Purpose
charter is converted from the Minimum Rate Period to the Variable Rate Period in
July 2014 in accordance with the terms of the charter agreement with BP.
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. However, with current earnings being lower than the
cash break even rates 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 low spot rates continue.
The broker valuations received for the vessels at September 30, 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 slightly lower than 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.
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 full report is available for download in the link enclosed.
The Board of Directors
Independent Tankers Corporation Limited
Hamilton, Bermuda
December 2, 2013
Questions should be directed to:
Magnus Vaaler: Vice President Finance, Frontline Management AS
+47 23 11 40 21
WEBSITE: WWW.ITCL.BM
3rd Quarter 2013 Results :
http://hugin.info/138953/R/1747148/588239.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1747148]
Unternehmensinformation / Kurzprofil:
Datum: 03.12.2013 - 08:45 Uhr
Sprache: Deutsch
News-ID 322007
Anzahl Zeichen: 12039
contact information:
Town:
0112 Oslo
Kategorie:
Business News
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