UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November , 2005
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Knightsbridge Tankers Limited
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(Translation of registrant's name into English)
Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton HM 08, Bermuda
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
Item 1. INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 1, is a copy of the Press Release to Shareholders of
Knightsbridge Tankers Ltd. (the "Company") released November 11, 2005,
announcing third quarter and nine month results for 2005.
EXHIBIT 1
Knightsbridge Tankers Limited
Interim Report September 2005
THIRD QUARTER AND NINE MONTH RESULTS
The Board of Knightsbridge Tankers Limited (the "Company") reports net income of
$3.6 million and earnings per share of $0.22 for the third quarter of 2005. The
average daily time charter equivalents ("TCEs") earned by the Company's five
VLCCs was $34,700 compared with $38,900 in the immediately preceding quarter.
The decline in net income as compared with previous quarters reflects the
weakening of the tanker market early in the third quarter combined with the
effect of the drydocking of the two vessels. Net interest expense for the
quarter was $1.4 million (2004 comparable quarter: $1.9 million) and at
September 30, 2005, all of the Company's debt is floating rate debt.
During the third quarter, the drydockings of the vessels Chelsea and Mayfair
were completed, as scheduled, at a total cost of $1.6 million. The vessel
Kensington is scheduled to be drydocked in the fourth quarter.
The net decrease in cash and cash equivalents in the quarter was $11.6 million.
The Company generated cash from operating activities of $8.3 million and used
$6.3 million to repay debt and credit facilities and $13.6 million to pay
dividends.
For the nine months ended September 30, 2005 the Company reports net income of
$28.1 million and earnings per share of $1.65. The average daily TCE's for the
nine months ended September 30, 2005 was $43,400. Net interest expense for the
period was $3.8 million (2004 comparable six months: $6.7 million).
On November 10, 2005, the Board declared a dividend of $0.50 per share. The
record date for the dividend is November 21, 2005, ex dividend date is November
17, 2005 and the dividend will be paid on or about December 5th, 2005.
THE MARKET AND OUTLOOK
Compared to the steady downward trend witnessed throughout the second quarter
tanker rates in the third quarter experienced higher volatility with steep ups
and downs. A peak in rates in the middle of July, seeing the benchmark route
from AG-Japan stretching up to Word Scale 107, was followed by a dive in the
market down to period low of World Scale 58 less than a month a later. Late
September saw a sharp rebound with a particularly strong West Africa market;
hence the overall trend was more positive than the previous quarter.
Multiple factors have influenced the oil tanker market during the period, with
the Hurricanes Katrina and Rita stealing the headlines. With U.S. Gulf oil
production and refinery capacity shut in, the global oil supply system started
to look fragile. Analysts are still trying to assess the overall consequences,
but the delay of vessels in the U.S. Gulf is one factor putting upwards pressure
on rates. The refinery shut downs boosted the U.S. demand for sweeter crude,
allowing for the rate increase in the West Africa to U.S. Gulf market seen
towards the end of the quarter. As a consequence a larger portion of heavier,
sour crude from the Caribbean went east, generating ton miles and stimulating
the demand side of oil transportation services. With the winter ahead, rising
rates toward the end of the third quarter is in line with the seasonal tend for
this time of the year.
During the quarter the spread in earnings between eastbound and westbound routes
decreased, seeing the traditionally lower yielding western routes increase in
attractiveness. This is largely attributable to three factors: increased spread
in earnings for single and double hulled units, the trade pattern after the
hurricane activity, and a more favourable tonnage situation due to uncertainty
created by a strike in Mediterranean port Fos/Lavera.
The increasing VLCC fleet obviously put pressure on the supply side, with six
units delivered in the third quarter of 2005 and one scrapped, according to
shipbroker Bassoe. This accounts for a year-to-date fleet growth of 5.1%. In
line with the oil price rally, bunker prices rose during the quarter, ending at
an average of $287 per ton in Fujairah, putting further pressure on vessel
earnings.
At the time of writing the spot market is on the rise, and AG to Singapore has
been fixed at World Scale 205. Oil market analysts have downgraded demand
figures slightly after the oil price rally and the supply disruptions, but the
IEA still believes in consumption growth of around 1.75 million barrels in 2006.
During the fourth quarter the vessels Hampstead and Kensington will be renamed
TI Ningbo and TI Qingdao respectively, based on a request from the charterer.
The Board expect the earnings to improve significantly during the fourth quarter
as the market rebounds from second and early third quarter lows.
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.
November 10, 2005
The Board of Directors
Knightsbridge Tankers Limited
Hamilton, Bermuda
Questions should be directed to:
Contact: Ola Lorentzon
+ 46 703 998886
Inger M. Klemp
+ 47 23 11 40 76
KNIGHTSBRIDGE TANKERS LIMITED THIRD QUARTER REPORT
(UNAUDITED)
2004
2004 2005 INCOME STATEMENT 2005 2004 Jan-Dec
Jul- Sep Jul- Sep (in thousands of $) Jan-Sep Jan-Sep (audited)
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28,481 19,752 Operating revenues 70,045 93,132 135,695
3,733 4,673 Voyage expenses 12,362 10,089 14,240
2,989 5,667 Ship operating expenses 12,889 6,756 9,868
266 247 Administrative expenses 810 894 1,114
21,493 9,165 Operating income before depreciation 43,984 75,393 110,473
4,290 4,315 Depreciation 12,805 12,915 17,219
17,203 4,850 Operating income after depreciation 31,179 62,478 93,254
126 220 Interest income 819 263 449
(1,949) (1,368) Interest expense (3,804) (6,742) (7,877)
2,401 (57) Other financial items (79) (76) 13
17,781 3,645 Net income (loss) 28,115 55,923 85,839
17,100 17,100 Average number of ordinary shares outstanding 17,100 17,100 17,100
$ 1.04 $ 0.22 Earnings per Share ($) $ 1.65 $ 3.27 $ 5.02
BALANCE SHEET
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2004
(in thousands of $) 2005 2004 Dec 31
Sep 30 Sep 30 (audited)
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ASSETS
Short term
Cash and cash equivalents 21,228 36,124 41,653
Other current assets 8,886 12,497 22,009
Long term
Vessels and equipment, net 289,385 305,803 301,500
Deferred charges and other long-term assets 376 408 392
Total assets 319,875 354,832 365,554
LIABILITIES AND STOCKHOLDERS' EQUITY
Short term
Short term interest bearing debt 11,355 11,200 11,309
Other current liabilities 8,789 4,378 4,974
Long term
Long term interest bearing debt 112,000 123,200 120,400
Stockholders' equity 187,731 216,054 228,871
Total liabilities and stockholders' equity 319,875 354,832 365,554
2004
2004 2005 STATEMENT OF CASHFLOWS 2005 2004 Jan-Dec
Jul- Sep Jul- Sep (in thousands of $) Jan-Sep Jan-Sep (audited)
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OPERATING ACTIVITIES
17,781 3,645 Net income (loss) 28,115 55,923 85,839
Adjustments to reconcile net income to net cash
provided by operating activities
4,310 4,332 Depreciation and amortisation 12,854 13,009 17,219
(2,477) - Adjustment of financial derivatives to market value -
- Other - 110
(6,504) 326 Change in operating assets and liabilities 16,248 12,336 3,420
13,110 8,303 Net cash provided by operating activities 57,217 81,268 106,588
- - INVESTING ACTIVITIES
690 - Compensation on vessel redelivery - 690 690
690 - Net cash provided by investing activities - 690 690
FINANCING ACTIVITIES
- (33) Proceeds from long-term debt and credit facilities, (33) 140,000 139,556
net of fees paid
(2,894) (6,211) Repayments of long-term debt and credit facilities (8,354) (131,441) (133,688)
(12,825) (13,680) Dividends paid (69,255) (60,705) (77,805)
(15,719) (19,924) Net cash used in financing activities (77,642) (52,146) (71,937)
(1,919) (11,621) Net increase (decrease) in cash and cash equivalents (20,425) 29,812 35,341
38,043 32,849 Cash and cash equivalents at start of period 41,653 6,312 6,312
36,124 21,228 Cash and cash equivalents at end of period 21,228 36,124 41,653
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 authorised.
Knightsbridge Tankers Limited
(Registrant)
Date November 22, 2005 By /s/ Kate Blankenship
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Kate Blankenship
Secretary
01655.0002 #620577