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 2007
Commission
File Number: 001-16601
|
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):
82-______________.
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 9, 2007, announcing the Company’s financial
results for the third quarter of 2007.
Exhibit
1
 |
Knightsbridge
Tankers Limited
Interim
Report September 2007
THIRD
QUARTER AND NINE MONTHS RESULTS
Knightsbridge
Tankers Limited (the “Company”) reports net income of $7.6 million and earnings
per share of $0.44 for the third quarter of 2007. The average daily
time charter equivalents (“TCEs”) earned by the Company’s five VLCCs was $39,200
compared with $36,800 in the preceding quarter. In the third quarter four
vessels operated in the time charter market and one vessel in the spot market.
Net interest expense for the quarter was $1.3 million (2006 comparable quarter:
$1.5 million) and at September 30, 2007, all of the Company’s debt is floating
rate debt.
The
Company generated cash from operating activities of $10.1 million, used $2.8
million to repay the Company’s loan and credit facilities, invested $0.5 million
in its newbuilding project and distributed $10.3 million in dividend
payments. The net decrease in cash and cash equivalents in the
quarter was $3.5 million. In November 2007, the Company has an
average cash breakeven rate for its vessels of $19,500 per vessel per day
compared to $19,000 in November 2006.
For
the nine months ended September 30, 2007 the Company reports net income of
$24.5
million and earnings per share of $1.43. The average daily TCEs for
the nine months ended September 30, 2007 was $39,900. Net interest
expense for the period was $4.1 million (2006 comparable nine months: $4.1
million).
On
November 8, 2007, the Board declared a dividend of $0.50 per
share. The record date for the dividend is November 23, 2007, ex
dividend date is November 21, 2007 and the dividend will be paid on or around
December 7, 2007.
THE
MARKET
The
average market rate for VLCCs from MEG to Japan in the third quarter was
approximately WS 56 ($22,500 per day) compared to approximately WS 71 ($41,200
per day) in the second quarter of 2007.
Crude
oil prices fell the first half of the quarter and thereafter increased during
the second half of the quarter. Bunkers at Fujairah averaged
approximately $385/mt in the third quarter with a low of approximately $359/mt
and a high of approximately $413/mt.
The
International Energy Agency (IEA) reported in October an average OPEC oil
production, including Iraq, of 30.54 million barrels per day during the third
quarter of the year, a 0.36 million barrels per day or 1.2 percent increase
from
the second quarter.
IEA
estimates that world oil demand averaged 85.5 million barrels per day in the
third quarter, a 1.0 percent increase from the second quarter of
2007. IEA further predicts that the average demand for 2008 in total
will be 88.0 million barrels per day, or a 2.4 percent growth from 2007, hence
showing a firm belief in continued demand growth.
According
to Fearnleys, the VLCC fleet totalled 491 vessels at the end of the third
quarter with six deliveries during the quarter. There are seven
additional deliveries expected in 2007 and 39 in 2008. The total
orderbook amounted to 161 vessels at the end of the third quarter, up from
157
vessels after the second quarter of 2007. The current orderbook
represents 32.8 percent of the VLCC fleet with one VLCC being ordered during
the
quarter. The single hull fleet amounted to 147 vessels at the end of
the third quarter.
We
estimate that about 30 VLCCs will be converted for non-oil trading purposes.
There are a further 20 vessels currently circulated as conversion
candidates.
OUTLOOK
The
Company has four out of its five VLCCs fixed on timecharters expiring between
2009 and 2012 and thus its exposure to short term market fluctuations is
limited. Two of these time charters also include a profit sharing
arrangement. This contract coverage provides good long term stability
and limits financial risk.
On
June 4, 2007 the Company purchased two newbuilding contracts, each for a capsize
bulkcarrier of approximately 170.000 deadweight tons. These vessels
are scheduled for delivery in 2009. One of the new vessels under
constructions has been fixed on a five year time charter from delivery in 2009
at a net rate of $38,000 per day. The market for bulk carriers is
currently strong and the Board is evaluating options for the second vessel.
The
total investment for the newbuilding contracts is approximately $162 million
of
which the Company has paid $32.4 million to date.
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
9, 2007
The
Board of Directors
Knightsbridge
Tankers Limited
Hamilton,
Bermuda
Questions
should be directed to:
Contact: Ola
Lorentzon : Chairman, Knightsbridge Tankers Limited
+
46 703 998886
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
KNIGHTSBRIDGE
TANKERS LIMITED THIRD QUARTER REPORT (UNAUDITED)
|
2006
Jul-Sept
|
2007
Jul-Sept
|
INCOME
STATEMENT
(in
thousands of $)
|
2007
Jan-Sept
|
2006
Jan-Sept
|
2006
Jan-Dec
(audited)
|
||||||||||||||
|
30,379
|
20,166
|
Operating
revenues
|
63,959
|
81,268
|
105,728
|
||||||||||||||
|
Operating
expense
|
|||||||||||||||||||
|
6,180
|
2,770
|
Voyage
expenses
|
10,183
|
14,293
|
20,015
|
||||||||||||||
|
3,589
|
3,712
|
Ship
operating expenses
|
11,146
|
12,312
|
15,835
|
||||||||||||||
|
308
|
377
|
Administrative
expenses
|
1,130
|
1,142
|
1,492
|
||||||||||||||
|
4,316
|
4,316
|
Depreciation
|
12,806
|
12,806
|
17,121
|
||||||||||||||
|
14,393
|
11,175
|
Total
operating expenses
|
35,265
|
40,553
|
54,463
|
||||||||||||||
|
15,986
|
8,991
|
Net
operating income
|
28,694
|
40,715
|
51,265
|
||||||||||||||
|
Other
income/(expenses)
|
|||||||||||||||||||
|
343
|
260
|
Interest
income
|
764
|
1,025
|
1,383
|
||||||||||||||
| (1,836 | ) | (1,602 | ) |
Interest
expense
|
(4,883 | ) | (5,129 | ) | (6,881 | ) | |||||||||
|
6
|
(45 | ) |
Other
financial items
|
(92 | ) | (47 | ) | (50 | ) | ||||||||||
| (1,487 | ) | (1,387 | ) |
Total
other expenses
|
(4,211 | ) | (4,151 | ) | (5,548 | ) | |||||||||
|
14,499
|
7,604
|
Net
income
|
24,483
|
36,564
|
45,717
|
||||||||||||||
|
17,100
|
17,100
|
Average
number of ordinary shares outstanding (000’s)
|
17,100
|
17,100
|
17,100
|
||||||||||||||
| $ |
0.85
|
$ |
0.44
|
Earnings
per share ($)
|
$ |
1.43
|
$ |
2.14
|
$ |
2.67
|
|||||||||
|
BALANCE
SHEET
(in
thousands of $)
|
2007
Sept
30
|
2006
Sept
30
|
2006
Dec
31
(audited)
|
|||||||||
|
ASSETS
|
||||||||||||
|
Short
term
|
||||||||||||
|
Cash
and cash equivalents
|
4,856
|
10,973
|
8,538
|
|||||||||
|
Restricted
cash
|
10,000
|
10,000
|
10,000
|
|||||||||
|
Other
current assets
|
8,793
|
15,269
|
14,723
|
|||||||||
|
Long
term
|
||||||||||||
|
Vessels,
net
|
255,144
|
272,264
|
267,949
|
|||||||||
|
Newbuildings
|
32,953
|
-
|
-
|
|||||||||
|
Deferred
charges and other long-term assets
|
349
|
306
|
289
|
|||||||||
|
Total
assets
|
312,095
|
308,812
|
301,499
|
|||||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||||
|
Short
term
|
||||||||||||
|
Short
term debt and current portion of long-term debt
|
11,200
|
11,200
|
11,211
|
|||||||||
|
Other
current liabilities
|
8,223
|
9,675
|
13,098
|
|||||||||
|
Long
term
|
||||||||||||
|
Long
term interest bearing debt
|
123,200
|
100,800
|
98,000
|
|||||||||
|
Stockholders’
equity
|
169,472
|
187,137
|
179,190
|
|||||||||
|
Total
liabilities and stockholders’ equity
|
312,095
|
308,812
|
301,499
|
|||||||||
|
2006
Jul-Sept
|
2007
Jul-Sept
|
STATEMENT
OF CASHFLOWS
(in
thousands of $)
|
2007
Jan-Sept
|
2006
Jan-Sept
|
2006
Jan-Dec
(audited)
|
||||||||||||||
|
OPERATING
ACTIVITIES
|
|||||||||||||||||||
|
14,499
|
7,604
|
Net
income
|
24,483
|
36,564
|
45,717
|
||||||||||||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities
|
|||||||||||||||||||
|
4,333
|
4,350
|
Depreciation
and amortisation
|
12,874
|
12,857
|
17,191
|
||||||||||||||
| (2,456 | ) | (1,840 | ) |
Change
in operating assets and liabilities
|
1,054
|
1,778
|
5,745
|
||||||||||||
|
16,376
|
10,114
|
Net
cash provided by operating activities
|
38,411
|
51,199
|
68,653
|
||||||||||||||
|
INVESTING
ACTIVITIES
|
|||||||||||||||||||
|
-
|
(530 | ) |
Additions
to newbuildings
|
(32,953 | ) |
-
|
-
|
||||||||||||
|
-
|
(530 | ) |
Net
cash used in investing activities
|
(32,953 | ) |
-
|
-
|
||||||||||||
|
FINANCING
ACTIVITIES
|
|||||||||||||||||||
|
-
|
-
|
Proceeds
from long-term debt and credit facilities
|
33,600
|
76
|
87
|
||||||||||||||
| (2,816 | ) | (2,800 | ) |
Repayments
of long-term debt and credit facilities
|
(8,411 | ) | (8,476 | ) | (11,276 | ) | |||||||||
| (13,680 | ) | (10,260 | ) |
Dividends
paid
|
(34,200 | ) | (44,460 | ) | (61,560 | ) | |||||||||
|
-
|
(26 | ) |
Debt
finance costs
|
(129 | ) |
-
|
-
|
||||||||||||
| (16,496 | ) | (13,086 | ) |
Net
cash used in financing activities
|
(9,140 | ) | (52,860 | ) | (72,749 | ) | |||||||||
| (120 | ) | (3,502 | ) |
Net
decrease in cash and cash equivalents
|
(3,682 | ) | (1,661 | ) | (4,096 | ) | |||||||||
|
11,093
|
8,358
|
Cash
and cash equivalents at start of period
|
8,538
|
12,634
|
12,634
|
||||||||||||||
|
10,973
|
4,856
|
Cash
and cash equivalents at end of period
|
4,856
|
11,093
|
8,538
|
||||||||||||||
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.
| FRONTLINE LTD. | |||
| (registrant) | |||
|
Dated:
November 21, 2007
|
By:
|
/s/ Inger
M. Klemp
|
|
|
Inger
M. Klemp
|
|||
|
Principal
Financial Officer
|
|||
SK
02089 0009
831659