FIRST QUARTER 2008 RESULTS
Knightsbridge Tankers Limited (the “Company”) reports net income of $14.8 million and earnings per share of $0.87 for the first quarter of 2008. This compares with net income of $9.7 million and earnings per share of $0.57 for the first quarter of 2007. The average daily time charter equivalent (“TCEs”) earned by the Company’s VLCCs was $55,300 compared with $46,800 in the preceding quarter. The increase represents the continuation of the strong market, which started in the prior quarter. Net operating income was $15.2 million (2007 comparable quarter: $11.1 million) and net interest expense for the quarter was $0.3 million (2007 comparable quarter: $1.4 million). At March 31, 2008 all of the Company’s debt is floating rate debt.
The net increase in cash and cash equivalents in the quarter was $5.8 million. The Company generated cash from operating activities of $21.3 million, used $2.2 million to repay loan facilities, invested $0.5 million in its newbuilding project and distributed $12.8 million in dividend payments. In May 2008, the Company has an average cash breakeven rate for its vessels of $19,100 per vessel compared to $18,439 in May 2007.
On May 14, 2008 the Board declared a dividend of $0.75 per share. The record date for the dividend is May 27, 2008, ex dividend date is May 22, 2008 and the dividend will be paid on or about June 9, 2008.
The full report is available in the link enclosed and on the Company’s website: http://www.knightsbridgetankers.com/
May 14, 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
+47 906 90 130
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.