VLCCF - Third Quarter 2009 and Nine 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 third quarter of 2009. * Knightsbridge reports net income of $12.7 million and earnings per share of $0.74 for the nine months ended September 30, 2009. * The first Capesize newbuilding from Daehan, the MV Battersea, was delivered on August 26 and commenced a five year time charter. * The second and final Capesize newbuilding from Daehan, the MV Belgravia, was delivered on October 29 and commenced a five year time charter.THIRD QUARTER 2009 AND NINE MONTHS RESULTSKnightsbridge Tankers Limited (the "Company") reports net income of$3.1 million and earnings per share of $0.18 for the third quarter of2009. The average daily time charter equivalents ("TCEs") earned bythe Company's four VLCCs and one Capesize vessel was $32,900 and$39,200 respectively compared with $33,100 for the VLCCs in thepreceding quarter. Revenues increased due to the MV Battersea, whichcommenced a five year time charter during the quarter offset by lowerrates earned by the MT Camden in a weaker spot market.Cash and cash equivalents decreased in the quarter by $35.1 million.The Company generated cash from operating activities of $5.3 million,drewdown a new long term loan of $28.6 million (net of fees paid),made loan repayments of $19.0 million and invested $50.0 million innewbuildings. In November 2009, the Company has an average cashbreakeven rate for its vessels of $18,000 per vessel per day comparedto $19,300 in November 2008.For the nine months ended September 30, 2009 the Company reports netincome of $12.7 million and earnings per share of $0.74. The averagedaily TCEs for the nine months ended September 30, 2009 was $35,700for the VLCCs and $39,200 for the Capesize vessels.THE TANKER MARKETAccording to industry sources the average earnings for a moderndouble hulled VLCC were approximately $23,500/day for the quarter.The earnings varied from a high of approximately $42,000/day at thebeginning of the quarter to a low of approximately $15,500/day nearthe end of July. At the end of the quarter the rate was close to$27,000/day. Present indications are approximately at $23,000/day.Bunkers at Fujairah averaged approximately $426/mt in the thirdquarter compared to $345/mt in the second quarter of 2009, anincrease of some $80/mt. Bunker prices varied between a low of$378/mt in the middle of July and a high of $459/mt at the end ofAugust. We have seen increased bunker prices over the last two weeksand current indications are approximately $465/mt according toPlatt's.The International Energy Agency ("IEA") reported in October 2009 anaverage OPEC oil production, including Iraq, of 28.83 million barrelsper day during the third quarter of the year - an increase of 350,000bpd compared to the second quarter of 2009. At the last OPECconference on September 10, it was agreed to keep the currentproduction levels unchanged. The next and 155th OPEC meeting isscheduled to take place on December 22, 2009.IEA estimates that world oil demand averaged 84.62 million barrelsper day in the third quarter of 2009, an increase of approximately0.5 million barrels per day compared to the second quarter of theyear. IEA predicts that the average demand for 2009 in total will be84.63 million barrels per day, a 1.9 percent decline from 2008.Additionally, the IEA estimates that the demand will increase by 1.7percent in 2010 to 86.05 million barrels per day.According to industry sources the VLCC fleet totalled 524 vessels atthe end of the third quarter with nine deliveries during the quarter.Throughout 2009 it is estimated that 61 deliveries will take placeincluding 48 made so far. The orderbook counted 188 vessels at theend of the third quarter, down from 197 vessels after the secondquarter of 2009. A new order for 12 VLCCs was reported during thequarter; however this is not yet confirmed. The current orderbookrepresents approximately 35 percent of the VLCC fleet. During thequarter there were two deletions from the trading fleet whilst fivevessels were sold for demolition and six for conversion projects.According to Fearnleys the single hull fleet now stands at 89vessels.THE DRY BULK MARKETAccording to industry sources the average earnings for a modernCapesize was approximately $41,900/day for the quarter. The earningsvaried from a high of approximately $64,000/day at the very beginningof the quarter to a low of approximately $21,000/day in the last weekof September. The rates have improved significantly from thebeginning of October and current levels are approximately$67,000/day.CORPORATE AND OUTLOOKThe total contract price for the two newbuildings is $162 million ofwhich the Company has paid $145.8 million at the end of the thirdquarter. $16.8 million of these installments have been financedthrough a short term bank facility and $30 million through a new longterm bank facility of $60 million. The short term bank facility wasrepaid in October when the MV Belgravia was delivered. At the sametime the second tranche of $30 million was drawn under the new longterm bank facility of $60 million.The Capesize vessels MV Battersea and MV Belgravia each commenced afive year time charter at the date of delivery from the ship yard.Three of the Company's VLCCs are fixed on time charters expiringbetween 2010 and 2012 and one VLCC is trading in the spot market.The last two quarters halt in dividend distribution is mainly causedby the large amount of equity paid on the Capesize vessels. Despitethis fact, the Company is now building its cash reserves supported bythe recently commenced time charter contracts. Although the weaktanker market has a negative impact on the spot trading vessel andthe vessels with profit share the Board of Directors expects toresume dividend payments in 2010.The full report is available in the link enclosed.The Board of DirectorsKnightsbridge Tankers LimitedHamilton, BermudaNovember 11, 2009Questions should be directed to:Ola Lorentzon: Chairman, Knightsbridge Tankers Limited+ 46 703 998886Inger M. Klemp: Chief Financial Officer, Knightsbridge TankersLimited+47 23 11 40 76FORWARD 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.http://hugin.info/132879/R/1354618/328544.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: 12.11.2009 - 14:00 Uhr
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