6-K 1 d937649_6-k.htm d937649_6-k.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13A-16 OR 15D-16 UNDER THE SECURITIES
EXCHANGE ACT OF 1934

For the month of November 2008

Commission File Number:  000-29106

KNIGHTSBRIDGE TANKERS LIMITED
(Translation of registrant's name into English)

Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton, HM 08 Bermuda
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ X ]     Form 40-F [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ________.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ________.


 
 
 

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached as Exhibit 1 is a copy of the press release of Knightsbridge Tankers Limited (the “Company”) dated November 5, 2008, announcing the Company’s financial results for the third quarter of 2008 and the nine months ended September 30, 2008.



 
 
 

Exhibit 1




Knightsbridge Tankers Limited

HIGHLIGHTS

·  
Knightsbridge reports net income of $11.3 million and earnings per share of $0.66 for the third quarter of 2008.
·  
Knightsbridge reports net income of $40.3 million and earnings per share of $2.36 for the nine months ended September 30, 2008.
·  
Knightsbridge announces a cash dividend of $0.50 per share for the third quarter of 2008.
 
THIRD QUARTER AND NINE MONTHS RESULTS
 
Knightsbridge Tankers Limited (the “Company”) reports net income of $11.3 million and earnings per share of $0.66 for the third quarter of 2008. The average daily time charter equivalents (“TCEs”) earned by the Company’s four VLCCs was $52,800 compared with $58,700 in the preceding quarter. The third quarter earnings reflect a decrease in the profit share on the vessels Hampstead and Kensington.

The net decrease in cash and cash equivalents in the quarter was $12.8 million. The Company generated cash from operating activities of $18.7 million, used $2.2 million to repay debt facilities, invested $16.5 million in its newbuilding project and distributed $12.8 million in dividend payments. In November 2008, the Company has an average cash breakeven rate for its vessels of approximately $19,300 per vessel per day compared to approximately $19,500 in November 2007.

For the nine months ended September 30, 2008 the Company reports net income of $40.3 million and earnings per share of $2.36. The average daily TCEs for the nine months ended September 30, 2008 was $55,600. Net interest expense, net of capitalized interest, for the period was $0.5 million (2007 comparable nine months: $4.1 million) mainly due to the lower net debt level.

On November 5, 2008, the Board declared a dividend of $0.50 per share. The record date for the dividend is November 17, 2008, ex dividend date is November 13, 2008 and the dividend will be paid on or about December 1, 2008.

 
 
 

THE MARKET

The average market rate for VLCCs from MEG to Japan in the third quarter was about WS 148 ($96,500 per day) compared to about WS 173 ($130,000 per day) in the second quarter of 2008. The fourth quarter started with average TCE rates for modern VLCCs, according to Clarkson, of $88,800 per day while the present indications are $62,500 per day.

Bunkers at Fujairah averaged approximately $666/mt in the third quarter with a low of approximately $520/mt and a high of approximately $756/mt.

The International Energy Agency (IEA) reported in October 2008 an average OPEC oil production, including Iraq, of 32.5 million barrels per day during the third quarter of the year, a 0.3 million barrels per day increase from the second quarter. The next OPEC meeting is scheduled to take place on November 18, 2008.

IEA further estimates that world oil demand averaged 85.9 million barrels per day in the third quarter, a 0.1 percent increase from the second quarter of 2008. IEA predicts that the average demand for 2008 in total will be 86.5 million barrels per day, or a 0.5 percent growth from 2007.

According to Fearnleys, the VLCC fleet totalled 490 vessels at the end of the third quarter with five deliveries during the quarter. There are 16 additional deliveries expected in 2008. The total order book amounted to 241 vessels at the end of the third quarter, up from 215 vessels after the second quarter of 2008. The current orderbook represents about 49 percent of the VLCC fleet. One VLCC was deleted from the trading fleet whilst 31 VLCCs were ordered during the quarter. The single hull fleet amounted to 113 vessels at the end of the third quarter.



 
 
 

CORPORATE AND OUTLOOK

The Company believes it is well positioned with a strong balance sheet and a steady cash flow secured by long term time charter agreements to face the challenges and opportunities that may arise as a consequence of the current financial crisis. Our VLCCs are fixed on timecharters expiring between 2009 and 2012 and thus our exposure to short term tanker market fluctuations is limited.  Two of these time charters also include a profit sharing arrangement. The Company nevertheless finds it prudent to reduce the dividend payment this quarter in order to strengthen its balance sheet.

As previously announced, the Company has two Capesize bulk carriers under construction at Daehan Shipbuilding Co. Ltd (“Daehan”). The total contract price is $162 million of which the Company has paid $48.6 million to date, $32.4 million of these instalments have been financed through a bank facility, while the balance of $16.2 million has been financed by equity. We have also entered into related long-term time charters for employment of these vessels upon their scheduled delivery in 2009. There is uncertainty related to the ability of Daehan to deliver these vessels in accordance with the contracted delivery dates.


November 5, 2008
The Board of Directors
Knightsbridge Tankers Limited
Hamilton, Bermuda


Questions should be directed to:

Contact:
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.

 

 
 
 

KNIGHTSBRIDGE TANKERS LIMITED THIRD QUARTER REPORT (UNAUDITED)
 
2007
Jul-Sept
 
    
2008
Jul-Sept
 
  
INCOME STATEMENT
(in thousands of $)
 
  
2008
Jan-Sept
 
    
2007
Jan-Sept
 
    
2007
Jan-Dec
(audited)
  
                             
  20,166       19,813  
Operating revenues
     66,805       63,959       88,160  
  -       -  
Gain on sale of asset
     -       -       49,119  
             
Operating expense
                        
  2,770       654  
Voyage expenses
     3,773       10,183       12,872  
  3,712       3,908  
Ship operating expenses
     10,692       11,146       15,544  
  377       406  
Administrative expenses
     1,146       1,130       1,481  
  4,316       3,428  
Depreciation
     10,284       12,806       17,016  
  11,175       8,396  
Total operating expenses
     25,895       35,265       46,913  
  8,991       11,417  
Net operating income
     40,910       28,694       90,366  
             
Other income (expenses)
                        
  260       591  
Interest income
     1,921       764       1,026  
  (1,602 )     (663 )
Interest expense
     (2,408 )     (4,883 )     (6,373 )
  (45 )     (47 )
Other financial items
     (133 )     (92 )     (183 )
  (1,387 )     (119 )
Total other expenses
     (620 )     (4,211 )     (5,530 )
  7,604       11,298  
Net income
     40,290       24,483       84,836  
                                       
$ 0.44     $ 0.66  
Earnings per share ($)
   $ 2.36     $ 1.43     $ 4.96  
$ 39,200     $ 52,800  
Income on timecharter basis ($ per day per vessel)*
   $ 55,600     $ 39,900     $ 41,700  
                                       
 
* Basis = Calender days less off-hire. Figures after deduction of broker commission.

 
 
 


BALANCE SHEET
(in thousands of $)
 
  
2008
Sept 30
 
    
2007
Sept 30
 
    
2007
Dec 31
(audited)
  
                   
ASSETS
                  
Short term
                  
Cash and cash equivalents
     74,660       4,856       82,143  
Restricted cash
     10,000       10,000       10,000  
Other current assets
     8,783       8,793       15,210  
Long term
                        
Vessels, net
     190,788       255,144       201,072  
Newbuildings
     50,725       32,953       33,459  
Deferred charges
     177       349       282  
Total assets
     335,133       312,095       342,166  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                        
Short term
                        
Current portion of long-term debt
     8,960       11,200       8,960  
Other current liabilities
     6,762       8,223       8,890  
Long term
                        
Long term debt
     96,320       123,200       103,040  
Stockholders’ equity
     223,091       169,472       221,276  
Total liabilities and stockholders’ equity
     335,133       312,095       342,166  


 
 
 


2007
Jul-Sept
 
    
2008
Jul-Sept
 
  
STATEMENT OF CASHFLOWS
(in thousands of $)
 
  
2008
Jan-Sept
 
    
2007
Jan-Sept
 
    
2007
Jan-Dec
(audited)
  
         
OPERATING ACTIVITIES
                  
  7,604       11,298  
Net income
     40,290       24,483       84,836  
             
Adjustments to reconcile net income to net cash provided by operating activities
                        
  4,350       3,462  
Depreciation and amortisation
     10,390       12,874       17,164  
  -       -  
Gain on sale of asset
     -       -       (49,119 )
  (1,840 )     3,968  
Change in operating assets and liabilities
     4,299       1,054       (4,695 )
  10,114       18,728  
Net cash provided by operating activities
     54,979       38,411       48,186  
                                       
             
INVESTING ACTIVITIES
                        
  (530 )     (16,501 )
Additions to newbuildings
     (17,267 )     (32,953 )     (33,459 )
  -       -  
Proceeds from disposal of asset
     -       -       98,980  
  (530 )     (16,501 )
Net cash (used in) provided by investing activities
     (17,267 )     (32,953 )     65,521  
                                       
             
FINANCING ACTIVITIES
                        
  -       -  
Proceeds from long-term debt
     -       33,600       33,600  
  (2,800 )     (2,240 )
Repayments of long-term debt and credit facilities
     (6,720 )     (8,411 )     (30,811 )
  (10,260 )     (12,825 )
Dividends paid
     (38,475 )     (34,200 )     (42,750 )
  (26 )     -  
Debt finance costs
     -       (129 )     (141 )
  (13,086 )     (15,065 )
Net cash used in financing activities
     (45,195 )     (9,140 )     (40,102 )
                                       
  (3,502 )     (12,838 )
Net (decrease) increase in cash and cash equivalents
     (7,483 )     (3,682 )     73,605  
  8,358       87,498  
Cash and cash equivalents at start of period
     82,143       8,538       8,538  
  4,856       74,660  
Cash and cash equivalents at end of period
     74,660       4,856       82,143  



 
 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
           
           

  KNIGHTSBRIDGE TANKERS LIMITED
  (registrant)
   
   
Dated:  November 14, 2008
By:  /s/ Georgina Sousa
 
Name: Georgina Sousa
Title:   Secretary




SK 01655 0002 937649