FOR IMMEDIATE RELEASE
KNIGHTSBRIDGE TANKERS LIMITED
Knightsbridge Tankers Limited (VLCCF) Announces Medium-Term Time Charters for Two Vessels
Hamilton, Bermuda, February 13, 2004. Knightsbridge Tankers Limited (“Knightsbridge” or the “Company”) (NASDAQ NM: VLCCG) today announced it has secured medium-term time charter contracts for two of the Company’s five very large crude carriers (VLCCs). The Company has chartered the vessels to Tankers International LLC, each for a period of three years at a rate of $30,000 per day with a 50:50 profit sharing arrangement for earnings in excess of $30,000 per day calculated by reference to the BITR Index. Tankers International LLC is a pool for the commercial operations of four large tanker owners and operators: A.P. Moller, Euronav Luxembourg SA., Overseas Shipholding Group, Inc and Reederei “Nord” Klaus E. Oldendorff. The two time charters will commence prior to April 30, 2004.
In June 2003, Knightsbridge received notice that Shell International has chosen not to renew the existing bareboat charters for any of the Company’s five VLCCs for a second seven year period. Consequently, all five VLCCs will be redelivered to the Company during late February and March 2004. In September 2003, at a Special General Meeting of Shareholders, the shareholders voted to continue the Company in business. Since that time the Company has been evaluating the alternatives available with respect to future employment of the VLCCs. The Company has now fixed three of its five VLCCs on medium or long-term charters. The Company expects the remaining two vessels to trade initially on the spot market on redelivery from Shell International although it will continue to evaluate market opportunities and employment options that may become available.
Knightsbridge’s Common Shares trade on the Nasdaq National Market under the symbol “VLCCF”.
Cautionary Statement Regarding Forward-looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
Knightsbridge desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “except,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect” “pending and similar expressions identify forward-looking statements.
The forward-looking statements in this document are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charterhire 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 Knightsbridge’s operating expenses, including bunker prices, drydocking and insurance costs, the market for Knightsbridges vesssels, availability of financing and refinancing, 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 Knightsbridge with the Securities and Exchange Commission.
Hamilton, Bermuda, February 13, 2004
Contact: Knightsbridge Tankers Limited Ola Lorentzon
Investor Relations +46 703 99 8886