VLCCF - Second Quarter 2009 and Six Months Results
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ HIGHLIGHTS * Knightsbridge reports net income of $3.1 million and earnings per share of $0.18 for the second quarter of 2009. * Knightsbridge reports net income of $9.6 million and earnings per share of $0.56 for the six months ended June 30, 2009.SECOND QUARTER 2009 AND SIX MONTHS RESULTSKnightsbridge Tankers Limited (the "Company") reports net income of$3.1 million and earnings per share of $0.18 for the second quarterof 2009. The average daily time charter equivalents ("TCEs") earnedby the Company's four VLCCs decreased to $33,100 compared with$40,700 in the preceding quarter due to a weaker market, whichresulted in no profit share earnings for M/T Hampstead and M/TKensington and a reduction in rates from M/T Camden.The net decrease in cash and cash equivalents in the quarter was$43.4 million. The Company generated cash from operating activitiesof $8.3 million, used $2.2 million to repay debt facilities andinvested $49.5 million in our newbuildings. In August 2009, theCompany has an average cash breakeven rate for its vessels of $18,400per vessel per day compared to $18,700 in August 2008.For the six months ended June 30, 2009 the Company reports net incomeof $9.6 million and earnings per share of $0.56. The average dailyTCEs for the six months ended June 30, 2009 was $36,900.THE MARKETAccording to industry sources, the average earnings for a modern,double hulled VLCC tanker was approximately $27,500/day for thequarter. The earnings varied from $32,000/day at the beginning of thequarter with a low of approximately $17,000/day at the beginning ofJune to a high of approximately $47,000/day at the end of June.Present indications are approximately $12000 per dayBunkers at Fujairah averaged approximately $345/mt in the secondquarter of 2009 with a high of approximately $424/mt at the end ofJune and a low of approximately $252/mt on April 1st. We have seenhigh bunker prices over the last week and current indications areapproximately $430/mt according to Platt'sIEA estimates that world oil demand averaged 83.1 million barrels perday in the second quarter of 2009, 1.36 million barrels less than inthe first quarter of 2009. IEA predicts that the average demand for2009 in total will be 83.8 million barrels per day, a 2.9 percentdecline from 2008.According to industry sources, the VLCC fleet totalled 511 vessels atthe end of the second quarter with 16 deliveries during the quarter,an increase of 1.2 percent from the previous quarter when the fleettotalled 505. Throughout 2009 it is expected that a total of 73 VLCCdeliveries will take place. The total order book amounted to 200vessels at the end of the second quarter, down from 217 vessels afterthe first quarter of 2009, including one cancellation. The currentorderbook represents about 39 percent of the VLCC fleet. During thequarter no new orders were made and there were 10 deletions from thetrading fleet, of which one was demolished and the rest conversionsto non-tanker regular trade. According to Fearnleys, the total singlehull tanker fleet stands at 91 vessels at the end of the quarter.CORPORATE AND OUTLOOKThe total contract price for the two newbuildings is $162 million ofwhich the Company has paid $97.2 million at the end of the secondquarter. $32.4 million of these installments have been financedthrough a short term bank facility, which will be repaid upondelivery of the vessels, while the balance of $64.8 million has beenfinanced by equity. As announced in the first quarter, the Companyhas been working to put in place financing for the remaininginstalments of $64.8 million due on the two newbuildings andKnightsbridge has secured long term, bank financing in the amount of$60 million.The Capesize MV Battersea is expected to be delivered from DaehanShipyard on the 26th of August and concurrently enter hertime-charterparty with Sanko Steam Ship of Tokyo. The Company expectsthe MV Belgravia to be delivered during the fourth quarter of 2009.Three of the Company's VLCCs are fixed on time charters expiringbetween 2010 and 2012. One of our VLCCs is trading in the spotmarket.Although the Company has secured financing, the level of debt is notconsidered optimal. Despite the strong forward charter cover theBoard has agreed to take a conservative stance and has decided not todistribute any dividend this quarter.The Company announces that its 2009 Annual General Meeting will beheld in Bermuda on September 25, 2009. The Notice of Annual GeneralMeeting and associated material will be distributed to shareholdersshortly. The Company currently has an authorized share capital of$200,000 consisting of 20,000,000 common shares of $0.01 par valueeach and issued share capital of $170,000 consisting of 17,100,000common shares of $0.01 par value each. At the Annual General Meeting,the Board will ask the Company's shareholders to approve an increasein the authorized share capital to $350,000 consisting of 35,000,000common shares of $0.01 par value each. This increase will give theCompany the ability and flexibility to raise equity at such time asthe Board of Directors considers appropriate and necessary. Theapproval of the resolution to increase the Company's authorized sharecapital requires a majority of all votes attached to the Company'sissued and outstanding common shares The Board believes the approvalof this resolution is important to the Company and encouragesshareholders to read the material provided and vote accordingly.FORWARD LOOKING STATEMENTSMatters discussed in this press release may constituteforward-looking statements. The Private Securities Litigation ReformAct of 1995 provides safe harbor protections for forward-lookingstatements in order to encourage companies to provide prospectiveinformation about their business. Forward-looking statements includestatements concerning plans, objectives, goals, strategies, futureevents or performance, and underlying assumptions and otherstatements, which are other than statements of historical facts.Knightsbridge desires to take advantage of the safe harbor provisionsof the Private Securities Litigation Reform Act of 1995 and isincluding this cautionary statement in connection with this safeharbor legislation. The words "believe," "except," "anticipate,""intends," "estimate," "forecast," "project," "plan," "potential,""will," "may," "should," "expect" "pending" and similar expressionsidentify forward-looking statements.The forward-looking statements in this document are based uponvarious assumptions, many of which are based, in turn, upon furtherassumptions, including without limitation, our management'sexamination of historical operating trends, data contained in ourrecords and other data available from third parties. Although webelieve that these assumptions were reasonable when made, becausethese assumptions are inherently subject to significant uncertaintiesand contingencies which are difficult or impossible to predict andare beyond our control, we cannot assure you that we will achieve oraccomplish these expectations, beliefs or projections.In addition to these important factors, important factors that, inour view, could cause actual results to differ materially from thosediscussed in the forward-looking statements include the strength ofworld economies and currencies, general market conditions, includingfluctuations in charterhire rates and vessel values, changes indemand in the tanker market, as a result of changes in OPEC'spetroleum production levels and world wide oil consumption andstorage, changes in Knightsbridge's operating expenses, includingbunker prices, drydocking and insurance costs, the market forKnightsbridge's vessels, availability of financing and refinancing,changes in governmental rules and regulations or actions taken byregulatory authorities, potential liability from pending or futurelitigation, general domestic and international political conditions,potential disruption of shipping routes due to accidents or politicalevents, and other important factors described from time to time inthe reports filed by Knightsbridge with the Securities and ExchangeCommission.The full report is available in the link enclosed.The Board of DirectorsKnightsbridge Tankers LimitedHamilton, BermudaAugust 13, 2009Questions should be directed to:Contacts:Ola Lorentzon : Chairman, Knightsbridge Tankers Limited + 46 703 998886Inger M. Klemp: Chief Financial Officer, Knightsbridge TankersLimited+47 23 11 40 76http://hugin.info/132879/R/1334910/317091.pdf --- End of Message ---Knightsbridge Tankers Limited P.O. Box HM 1593, Par-la-Ville Place, 14 Par-la-Ville Road Hamilton BermudaISIN: BMG5299G1069; ;
Datum: 14.08.2009 - 13:15 Uhr
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