VLCCF – Knightsbridge Tankers Limited First Quarter 2010 Results
- Knightsbridge reports net income of $10.2 million and earnings per share of $0.60 for the first quarter of 2010.
- Knightsbridge announces a cash dividend of $0.40 per share for the first quarter of 2010, an increase of $0.10 per share compared to the fourth quarter of 2009.
FIRST QUARTER 2010 RESULTS
Knightsbridge Tankers Limited (the “Company” or “Knightsbridge”) reports net income of $10.2 million and earnings per share of $0.60 for the first quarter compared to net income of $9.0 million and earnings per share of $0.53 for the fourth quarter of 2009. The average daily time charter equivalents (“TCEs”) earned by the Company’s four VLCCs and two Capesize vessels were $35,500 and $45,500 respectively, compared with $36,900 and $44,300 in the preceding quarter. Revenues and net income increased mainly due to a full quarter’s earnings from the Belgravia, which commenced a five year time charter during the preceding quarter and profit share earned by the Hampstead and Kensington due to an improvement in spot rates, which were partially offset by reduced earnings from the Camden.
The net increase in cash and cash equivalents in the quarter was $0.6 million. The Company generated cash from operating activities of $12.8 million, used $3.5 million to repay loan facilities, made final payments relating to its newbuilding project of $3.6 million and paid a dividend of $5.1 million. With effect from April 1, 2010 the minimum cash required to be held by the Company will increase from $10 million to $15 million, in accordance with the terms of the loan agreement for the Capesize vessels that were delivered in 2009. This is accounted for as restricted cash in the Company’s balance sheet. In May 2010, the Company has average cash breakeven rates for its VLCCs and Capesize vessels of approximately $19,300 and $16,800 per vessel per day, respectively.
On May 11, 2010, the Board declared a dividend of $0.40 per share. The record date for the dividend is May 21, 2010, the ex dividend date is May 19, 2010 and the dividend will be paid on or around June 7, 2010.
The full report is available in the link enclosed.
The Board of Directors
Knightsbridge Tankers Limited
May 11, 2010
Questions should be directed to:
Ola Lorentzon: Chairman, Knightsbridge Tankers Limited, + 46 703 998886 Inger M. Klemp: Chief Financial Officer, Knightsbridge Tankers Limited, +47 23 11 40 76
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 Knightsbridge’s vessels, 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.