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: March 2007
Commission File Number: 000-29106
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 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):
82-______________.
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 99.1 is a copy of the press release of Knightsbridge Tankers
Ltd. (the "Company") dated February 13, 2007, announcing the Company's
preliminary financial results for the fourth quarter and year ended December 31,
2006.
EXHIBIT 99.1
KNIGHTSBRIDGE
TANKERS LIMITED
Knightsbridge Tankers Limited
PRELIMINARY FOURTH QUARTER AND FINANCIAL YEAR 2006 RESULTS
Knightsbridge Tankers Limited (the "Company") reports net income of $9.2 million
and earnings per share of $0.53 for the fourth quarter of 2006. The average
daily time charter equivalents ("TCEs") earned by the Company's five VLCCs was
$41,700 compared with $52,900 in the preceding quarter. The decrease represents
a seasonal weakening of the tanker market. Net interest expense for the quarter
was $1.4 million (2005 comparable quarter: $1.4 million), and at December 31,
2006 all of the Company's debt is floating rate debt.
The net decrease in cash and cash equivalents in the quarter was $2.4 million.
The Company generated cash from operating activities of $17.5 million, used $2.8
million to repay loan and credit facilities and distributed $17.1 million in
dividend payments. As of February 5, 2007, the Company has an average cash
breakeven rate for its vessels of $18,540 per vessel compared to $16,700 on
January 31, 2006.
For the financial year ended December 31, 2006 the Company reports net income of
$45.7 million and earnings per share of $2.67 compared with $44.0 million and
$2.57, respectively in 2005. The average daily TCEs in 2006 was $48,000 compared
with $47,100 in 2005. Net interest expense for the year was $5.5 million (2005:
$4.3 million).
The net decrease in cash and cash equivalents in 2006 was $4.1 million. The
Company generated cash from operating activities of $68.7 million, used $11.3
million to repay loan and credit facilities and distributed $61.5 million in
dividend payments. The total dividend paid per share in 2006 was $3.60 compared
to $4.55 in 2005.
On February 13, 2007 the Board declared a dividend of $0.80 per share. The
record date for the dividend is February 26, 2007 and the dividend will be paid
on or about March 9, 2007.
THE MARKET
The fourth quarter was seasonally relatively weak for the VLCC segment and the
average was calculated to World Scale ("WS") 69.5 based on data from the
benchmark route MEG to Japan. This equated to a daily TCE of approximately
$35,750 per day compared to approximately WS 156 ($95,500 per day) in the fourth
quarter of 2005. Freight was quoted at approximately WS 102 ($64,000 per day) at
the start of the quarter for the given route but markets declined throughout the
period and ended at approximately WS 60 ($27,000 per day) at December 31, 2006.
The International Energy Agency ("IEA") reported in January an average OPEC oil
production, including Iraq, of 29.07 million barrels per day during the fourth
quarter of the year, a 0.90 million barrels per day or 3.0 percent decrease from
the third quarter. OPEC decided at its extraordinary meeting held in Abuja, the
Federal Republic of Nigeria on December 14, 2006 to "reduce OPEC production by a
further 500,000 barrels per day, with effect from February 1, 2007 in order to
balance supply and demand". This adds to their previously announced cut of 1.2
million barrels per day effective November 1, 2006. On January 1, 2007, Angola
became the twelfth member of OPEC.
IEA estimates that world oil demand averaged 85.7 million barrels per day in the
fourth quarter, a 1.9 percent increase from the third quarter of 2006. IEA
further predicts that the average demand for 2007 in total will be 85.8 million
barrels per day, or a 1.6 percent growth from 2006, hence showing a firm belief
in continued demand growth.
According to Fearnleys, the VLCC fleet totalled 479 vessels at the end of the
fourth quarter with four deliveries and no vessels scrapped during the last
quarter of the year. The total order book amounted to 161 vessels at the end of
the fourth quarter, down from 165 vessels after the third quarter of 2006. There
are 30 deliveries expected in 2007 and 39 in 2008. The current order book
represent 33.6 percent of the VLCC fleet.
OUTLOOK
The average Clarkson TCE reference rate for the first quarter to date is $54,400
per day. However, the market has softened recently and this may be due to
seasonal factors. In light of the Company's low degree of debt and good future
contract coverage the Board remains satisfied with the Company's position.
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.
February 13, 2007
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 FOURTH QUARTER REPORT (UNAUDITED)
2005 2006 INCOME STATEMENT 2006 2005
Oct-Dec Oct-Dec (in thousands of $) Jan-Dec Jan-Dec
(audited)
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30,134 24,460 Operating revenues 105,728 100,179
Operating expenses
4,097 5,722 Voyage expenses 20,015 16,459
4,322 3,523 Ship operating expenses 15,835 17,211
178 350 Administrative expenses 1,492 988
4,315 4,315 Depreciation 17,121 17,120
12,912 13,910 Total operating expenses 54,463 51,778
17,222 10,550 Net operating income 51,265 48,401
Other income/(expenses)
140 358 Interest income 1,383 959
(1,506) (1,752) Interest expense (6,881) (5,310)
(4) (3) Other financial items (50) (83)
(1,370) (1,397) Total other expenses (5,548) (4,434)
15,852 9,153 Net income 45,717 43,967
17,100 17,100 Average number of ordinary
shares outstanding (000's) 17,100 17,100
$0.93 $0.53 Earnings per share ($) $2.67 $2.57
BALANCE SHEET 2006 2005
(in thousands of $) Dec 31 Dec 31
(audited)
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ASSETS
Short term
Cash and cash equivalents 8,538 12,634
Restricted cash 10,000 10,000
Other current assets 14,723 15,096
Long term
Vessels, net 267,949 285,070
Deferred charges and other long-term assets 289 359
Total assets 301,499 323,159
LIABILITIES AND STOCKHOLDERS' EQUITY
Short term
Short term debt and current portion of long-term debt 11,211 11,200
Other current liabilities 13,098 7,726
Long term
Long term interest bearing debt 98,000 109,200
Stockholders' equity 179,190 195,033
Total liabilities and stockholders' equity 301,499 323,159
<table>
<caption>
2005 2006 STATEMENT OF CASHFLOWS 2006 2005
Oct-Dec Oct-Dec (in thousands of $) Jan-Dec Jan-Dec
(audited)
OPERATING ACTIVITIES
15,852 9,153 Net income 45,717 43,967
Adjustments to reconcile net income
to net cash provided by operating activities
4,332 4,332 Depreciation, amortization and foreign exchange 17,191 17,186
(7,273) 3,969 Change in operating assets and liabilities 5,745 8,975
12,911 17,454 Net cash provided by operating activities 68,653 70,128
FINANCING ACTIVITIES
- 11 Proceeds from long-term debt and credit 87 -
facilities
(2,955) (2,800) Repayments of long-term debt and credit (11,276) (11,342)
facilities
(8,550) (17,100) Dividends paid (61,560) (77,805)
(11,505) (19,889) Net cash used in financing activities (72,749) (89,147)
1,406 (2,435) Net increase (decrease) in cash and cash (4,096) (19,019)
equivalents
11,228 10,973 Cash and cash equivalents at start of period 12,634 31,653
12,634 8,538 Cash and cash equivalents at end of period 8,538 12,634
</table>
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: March 21, 2007 By: /s/ Kate Blankenship
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Kate Blankenship
Secretary
SK 01655 0002 757794