ITCL - Second quarter 2009 and six months results
(Thomson Reuters ONE) - Highlights* Independent Tankers reports net income of $3.2 million, equivalent to earnings per share of $0.04 for the second quarter of 2009.* Independent Tankers reports net income of $7.1 million, equivalent to earnings per share of $0.09 for the six months ended June 30, 2009.* The Company has secured short term refinancing for the $40.6 million loan drawn in 2008 in connection with purchase of Windsor term notes.* BP extended the charter for the double hull VLCC British Purpose for one year after the fixed period ends in July 2010.IntroductionIndependent 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-countermarket since March 7, 2008. Independent Tankers' business is mainlyconcentrated on the ownership and operation of crude oil tankers onlong term bareboat contracts, which include certain cancellationoptions to major oil companies. Independent Tankers owns or leases insix VLCCs and four Suezmax tankers. All vessels are financed throughbonds in the US market and some of the vessels are also subject tofinancial lease arrangements. The main shareholder is Frontline Ltd.("Frontline") with an ownership of approximately 83 percent.Second Quarter and Six Month Results 2009The Board of Independent Tankers announces net income of $3.2million, equivalent to earnings per share of $0.04 for the secondquarter of 2009. This compares with a net income of $3.9 million,equivalent to earnings per share of $0.05 for the first quarter of2009. The decrease in net income is primarily due to foreign exchangemovements.The average daily bareboat rates earned in the second quarter by theCompany's VLCCs and the Suezmax tanker Front Voyager wereapproximately $25,400 and $7,900, respectively, compared withapproximately $25,700 and $8,000, respectively, in the precedingquarter. The decrease is explained by fluctuations in days betweenthe quarters.Net interest expense was $5.3 million (first quarter 2009: $5.2million). At June 30, 2009, all of the Company's bond debt of $335.2million is at fixed interest rates ranging from 6.63% to 8.52%. TheCompany repaid short term bank facilities of $40.6 million in June,financed by a new $33.0 million short term bank loan and a $7.6million short term loan from Frontline.The Company has reclassified some of its restricted cash balances tolong-term. These balances relate to the restricted cash that aresegregated for the settlement of long-term lease obligations. Theamount reclassified as of June 30, 2008 to conform to the currentyear presentation was $252.0 million.For the six months ended June 30, 2009 the Company announces netincome of $7.1 million, equivalent to earnings per share of $0.09(2008 comparable six months $7.2 million, equivalent to earnings pershare of $0.10). Net interest expense was $10.5 million (2008comparable six months: $12.2 million).In August 2009, the Company has an average cash breakeven rate forits VLCCs and Suezmax tanker of approximately $19,100 and $5,000 pervessel per day, respectively.Charter DevelopmentThe VLCC British Pioneer is currently on a market related charter toBP Shipping Limited ("BP") under which the Company's ship owningsubsidiary receives the greater of $20,000 per day or a spot marketrate. The market related rate, while calculated quarterly, iscumulative on a four year basis or shorter if BP terminates thecharter earlier. The Company has not accrued any market related hireas of June 30, 2009.On July 14, 2009, BP extended the charter for the double hull VLCCBritish Purpose for one year after the fixed period ends in July2010. The vessel will continue on a bareboat rate of $24,895 per dayuntil the fixed period ends in July 2010, followed by the same ratestructure as for British Pioneer until July 2011.Other Matters74,825,166 ordinary shares were outstanding as of June, 30 2009 andthe weighted average number of shares outstanding for the quarter wasalso 74,825,166.The MarketThe average market rate for VLCCs from MEG to Japan in the secondquarter of 2009 was about WS 36 ($ 20,600 per day) compared to aboutWS 47 ($ 44,000 per day) in the first quarter of 2009.Bunkers at Fujairah averaged approximately $345/mt in the secondquarter of 2009 with a high of approximately $424/mt on June 30 and alow of approximately $252/mt on April 1. On August 27, 2009 thequoted bunker price in Fujairah was $442/mt.The International Energy Agency ("IEA") reported in August 2009 anaverage OPEC oil production, including Iraq, of 28.5 million barrelsper day during the second quarter of the year, a small increase of30,000 barrels per day from the first quarter of 2009. The next OPECmeeting is scheduled to take place on September 9, 2009.IEA further estimates that world oil demand averaged 83.7 millionbarrels per day in the second quarter of 2009, 0.8 million barrelsless compared to the first quarter of 2009. IEA predicts that theaverage demand for 2009 in total will be 83.9 million barrels perday, a 2.7 percent decline from 2008.The VLCC fleet totalled 511 vessels at the end of the second quarterwith 16 deliveries during the quarter. Throughout 2009 it is expectedthat a total of 73 VLCC deliveries will take place. The total orderbook amounted to 200 vessels at the end of the second quarter, downfrom 217 vessels after the first quarter of 2009, including onecancellation. The current orderbook represents about 39 percent ofthe VLCC fleet. During the quarter, no new orders were made and therewere 10 deletions from the trading fleet of which one was demolishedand the rest were conversions to non-tanker regular trade. The totalsingle hull fleet counted 91 vessels at the end of the secondquarter.The Suezmax fleet totalled 374 vessels at the end of the quarter, upfrom 361 vessels after the first quarter of 2009. Fifteen Suezmaxtankers were delivered during the quarter, whilst there were twodeletions from the trading fleet and no new orders took place. Thetotal orderbook amounted to 147 vessels at the end of the quarter, adecrease of 15 vessels from the end of the first quarter of 2009.There are 74 deliveries expected in 2009 according to Fearnleys andthe orderbook represents approximately 39 percent of the currentSuezmax fleet. The Single hull fleet totalled 35 vessels at the endof the second quarter.Strategy and OutlookThe Company's strategy is mainly concentrated around long termcharters to reputable companies and for the time being BP, Chevronand Frontline. The Company's charter coverage for its six double hullVLCCs is 100 percent for the second half of 2009, 99 percent in 2010and 24 percent in 2011, if the charterers are not extended. For theone single hull and three double hull Suezmax tankers, the chartercoverage is 100 percent for the second half of 2009 and 81 percent in2010. We are slowly building up our cash positions in comfortablepace hence the Company's long term charters.The Company has low cash breakeven rates and the vessels are financedthrough the US bond market with maturity from 2015 to 2021. Thecombination of fixed bareboat charters and floating market rates forthe six VLCCs in the years ahead and the fact that all the vesselsare financed creates a solid platform for the Company going forward.The long term focus is on restructuring the bond debt and UK leasingarrangements within the Company.Forward Looking StatementsThis press release contains forward looking statements. Thesestatements are based upon various assumptions, many of which arebased, in turn, upon further assumptions, including the Company'smanagement's examination of historical operating trends. Although theCompany believes that these assumptions were reasonable when made,because assumptions are inherently subject to significantuncertainties and contingencies which are difficult or impossible topredict and are beyond its control, the Company cannot give assurancethat it will achieve or accomplish these expectations, beliefs orintentions.Important factors that, in the Company's view, could cause actualresults to differ materially from those discussed in this pressrelease include the strength of world economies and currencies,general market conditions including fluctuations in charter hirerates and vessel values, changes in demand in the tanker market as aresult of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operatingexpenses including bunker prices, drydocking and insurance costs,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 the Company with the Norwegian over-the-countermarket in Oslo.The full report is available in the link enclosed.August 27, 2009The Board of DirectorsIndependent Tankers Corporation LimitedHamilton, BermudaQuestions should be directed to:Bengt Neteland: Vice President Finance, Frontline Management AS +47 23 11 40 37 or +47 924 99 386WEBSITE: WWW.ITCL.BMhttp://hugin.info/138953/R/1337748/318895.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 28.08.2009 - 08:01 Uhr
Sprache: Deutsch
News-ID 5210
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