PRELIMINARY FOURTH QUARTER AND FINANCIAL YEAR 2007 RESULTS
Knightsbridge Tankers Limited (the “Company” or “Knightsbridge”) reports net income of $60.4 million and earnings per share of $3.53 for the fourth quarter of 2007. Included in the net income figure is a gain of $49.1 million resulting from the sale of 1995- built VLCC Chelsea in December 2007. Earnings per share in the fourth quarter before this gain on sale were $0.66. The average daily time charter equivalents (“TCEs”) earned by the Company’s five VLCCs was $46,800 compared with $39,200 in the preceding quarter. In the fourth quarter four vessels operated in the time charter market, two of which with profit sharing and one vessel in the spot market. Net interest expense for the quarter was $1.2 million (2006 comparable quarter: $1.4 million) and at December 31, 2007, all of the Company’s debt was carrying floating interest.
The net increase in cash and cash equivalents in the quarter was $77.3 million. The Company generated cash from operating activities of $9.8 million and received $99.0 million net from the sale of Chelsea. The Company used $22.4 million to repay the Company’s loan and credit facilities, invested $0.5 million in its newbuilding project and distributed $8.6 million in dividend payments. Of the $22.4 million in loan repayment, $20.1 million was used to settle the full outstanding amount relating to Chelsea. In February 2008, the Company has an average cash breakeven rate for its vessels of $19,410 per vessel per day compared to $18,540 in February 2007.
For the year ended December 31, 2007 the Company reports net income of $84.8 million and earnings per share of $4.96, compared with $45.7 million and $2.67, respectively in 2006. The average daily TCEs in 2007 were $41,700, compared with $48,000 in 2006. Net interest expense for the year was $5.3 million (2006: $5.5 million).
The net increase in cash and cash equivalents in 2007 was $73.6 million. The Company generated cash from operating activities of $48.2 million, used $30.8 million to repay loan and credit facilities and distributed $42.8 million in dividend payments. Total dividends paid per share in 2007 were $2.50 compared to $3.60 in 2006.
On February 13, 2008, the Board declared a dividend of $0.75 per share. The record date for the dividend is February 26, 2008, ex dividend date is February 22, 2008 and the dividend will be paid on or around March 7, 2008.
The full report is available in the link below.
February 12, 2008
The Board of Directors
Knightsbridge Tankers Limited
Questions should be directed to:
Ola Lorentzon : Chairman, Knightsbridge Tankers Limited
+46 703 998886
Bjørn Sjaastad: Chief Executive Officer, Knightsbridge Tankers Limited
+47 23 11 40 99
Inger M. Klemp: Chief Financial Officer, Knightsbridge Tankers Limited
+47 23 11 40 76