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
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2006
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 office)
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: ___
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): ________.
Item 1. INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 1 is the interim report of Knightsbridge Tankers Limited
dated November 14, 2006, with respect to its interim results for the third
quarter of 2006.
Exhibit 1
Knightsbridge Tankers Limited
Interim Report September 2006
THIRD QUARTER AND NINE MONTH RESULTS
Knightsbridge Tankers Limited (the "Company") reports net income of $14.5
million and earnings per share of $0.85 for the third quarter of 2006. The
average daily time charter equivalents ("TCEs") earned by the Company's five
VLCCs was $52,900 compared with $42,800 in the preceding quarter. The third
quarter earnings reflect the strengthening of the tanker market that commenced
in the second quarter. Net interest expense for the quarter was $1.5 million
(2005 comparable quarter: $1.1 million) and at September 30, 2006, all of the
Company's debt is floating rate debt. As of November 6, 2006, the Company has an
average cash breakeven rate for its vessels of $18,998 per vessel per day
compared to $19,200 on August 7, 2006.
The net decrease in cash and cash equivalents in the quarter was $0.1 million.
The Company generated cash from operating activities of $16.4 million, used $2.8
million to repay loan and credit facilities and distributed $13.7 million in
dividend payments.
For the nine months ended September 30, 2006 the Company reports net income of
$36.6 million and earnings per share of $2.14. The average daily TCEs for the
nine months ended September 30, 2006 was $50,100. Net interest expense for the
period was $4.1 million (2005 comparable nine months: $2.9 million).
On November 14, 2006 the Board declared a dividend of $1.00 per share. The
record date for the dividend is November 27, 2006, ex dividend date is November
22, 2006 and the dividend will be paid on or about December 7, 2006.
THE MARKET
The third quarter tanker market was seasonally very strong and, according to
Clarkson's, VLCCs averaged a TCE of $79,300 for the third quarter of 2006.
The International Energy Agency (IEA) reported in November an average OPEC Oil
production, including Iraq, of 29.98 million barrels per day during the third
quarter of the year, a 0.18 million barrels per day or 0.6 percent increase from
second quarter. OPEC decided at its extraordinary meeting held in Doha, Qatar on
October 19, 2006 to reduce production by an amount of 1.2 million barrels per
day, effective November 1, 2006, as a result of the recent development in the
oil market.
IEA estimates that world oil demand averaged 83.9 million barrels per day in the
third quarter, a 0.7 percent increase from the second quarter of 2006. The IEA
predicts that the average demand for 2007 in total will be 85.9 million barrels
per day, or a 1.7 percent growth from 2006, hence showing a firm belief in
continued demand growth.
According to Fearnleys, the VLCC fleet totalled 475 vessels at the end of the
third quarter of 2006 with eight deliveries and no vessels scrapped during the
quarter. The total order book amounted to 165 vessels at the end of the third
quarter, up from 147 vessels after the second quarter of 2006. For the remainder
of 2006 there are four deliveries expected and there are 31 deliveries expected
in 2007. The current orderbook represent 34.7 percent of the current VLCC fleet.
A total of 18 VLCCs were ordered during the quarter.
OUTLOOK
The market in the fourth quarter has shown continuing strength, although it has
been weaker to date compared with the same quarter in 2005. The average Clarkson
TCE reference rate for the quarter until 10 November 2006 is $51,500 per day. It
is expected that the market will strengthen as the winter season sets in, but
the increased number of ships in the global fleet may trend rates lower. The
Company is well positioned with a low degree of debt and good future contract
coverage.
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 14, 2006
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)
- -------------- ----------- ------------------------------------------------------- ----------------- -------------- --------------
2005 2006 INCOME STATEMENT 2006 2005 2005
Jul-Sept Jul-Sept (in thousands of $) Jan-Sept Jan-Sept Jan-Dec
(audited)
- -------------- ----------- ------------------------------------------------------- ----------------- -------------- --------------
19,752 30,379 Operating revenues 81,268 70,045 100,179
Operating expense
4,673 6,180 Voyage expenses 14,293 12,362 16,459
5,667 3,589 Ship operating expenses 12,312 12,889 17,211
247 308 Administrative expenses 1,142 810 988
4,315 4,316 Depreciation 12,806 12,805 17,120
14,902 14,393 Total operating expenses 40,553 38,866 51,778
4,850 15,986 Net operating income 40,715 31,179 48,401
Other income/(expenses)
220 343 Interest income 1,025 819 959
(1,368) (1,836) Interest expense (5,129) (3,804) (5,310)
(57) 6 Other financial items (47) (79) (83)
(1,205) (1,487) Total other expenses (4,151) (3,064) (4,434)
3,645 14,499 Net income 36,564 28,115 43,967
17,100 17,100 Average number of ordinary shares outstanding (000's) 17,100 17,100 17,100
$ 0.22 $ 0.85 Earnings per share ($) $ 2.14 $ 1.65 $ 2.57
- -------------- ----------- ------------------------------------------------------------------------- -------------- --------------
BALANCE SHEET 2006 2005 2005
(in thousands of $) Sept 30 Sept 30 Dec 31
(audited)
- ---------------------------------------------------------------------------------------------------------------
ASSETS
Short term
Cash and cash equivalents 10,973 11,228 12,634
Restricted cash 10,000 10,000 10,000
Other current assets 15,269 8,886 15,096
Long term
Vessels, net 272,264 289,385 285,070
Deferred charges and other long-term assets 306 376 359
Total assets 308,812 319,875 323,159
LIABILITIES AND STOCKHOLDERS' EQUITY
Short term
Short term debt and current portion of long-term debt 11,200 11,355 11,200
Other current liabilities 9,675 8,789 7,726
Long term
Long term interest bearing debt 100,800 112,000 109,200
Stockholders' equity 187,137 187,731 195,033
Total liabilities and stockholders' equity 308,812 319,875 323,159
- ---------------------------------------------------------------------------------------------------------------
- -------------- ------------ -------------------------------------------------------- ----------------- -------------- --------------
2005 2006 STATEMENT OF CASHFLOWS 2006 2005 2005
Jul-Sept Jul-Sept (in thousands of $) Jan-Sept Jan-Sept Jan-Dec
(audited)
- -------------- ------------ -------------------------------------------------------- ----------------- -------------- --------------
OPERATING ACTIVITIES
3,645 14,499 Net income 36,564 28,115 43,967
Adjustments to reconcile net income to net cash
provided by operating activities
4,332 4,333 Depreciation, amortization and foreign exchange 12,857 12,854 17,186
326 (2,456) Change in operating assets and liabilities 1,778 16,248 8,975
8,303 16,376 Net cash provided by operating activities 51,199 57,217 70,128
FINANCING ACTIVITIES
- - Proceeds from long-term debt and credit facilities 76 - -
(6,244) (2,816) Repayments of long-term debt and credit facilities (8,476) (8,387) (11,342)
(13,680) (13,680) Dividends paid (44,460) (69,255) (77,805)
(19,924) (16,496) Net cash used in financing activities (52,860) (77,642) (89,147)
(11,621) (120) Net decrease in cash and cash equivalents (1,661) (20,425) (19,019)
22,849 11,093 Cash and cash equivalents at start of period 12,634 31,653 31,653
11,228 10,973 Cash and cash equivalents at end of period 10,973 11,228 12,634
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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)
Date November 20, 2006 By /s/ Kate Blankenship
---------------------
Kate Blankenship
Secretary
SK 01655 0002 721774