Knightsbridge Tankers Limited (“Knightsbridge” or “Company”) is pleased to announce that it has agreed to sell its 1995-built double hull VLCC tanker Chelsea for the net sale proceeds of approximately $99 million. Delivery to buyers is expected to take place in January 2008.
The sale will generate approximately $78.8 million in liquidity and a gain of approximately $49 million, based on delivery 21 December, 2007. In addition, the vessel is recently fixed to the beginning of February 2008 and the net result would be for the benefit of Knightsbridge.
The additional liquidity will partly be used to fund pre delivery installments on Knightsbridge’s newbuilding program, and will in addition strengthen the Company’s dividend capacity going forward. The sale of the vessel represents no change in the Company’s strategy, but should be seen as an opportunistic transaction in the present strong tanker market.
December 21, 2007
The Board of Directors
Knightsbridge Tankers Limited
Questions should be directed to:
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