FRONTLINE-owned, newly created Independent Tankers made a Q1 net profit of US$3.7m. This compares with a net profit of $3.1m for the first quarter of 2007 based on predecessor combined accounts. Independent Tankers was incorporated on Bermuda on 18 January and its shares have traded on the Norwegian over-the-counter market, since 7 March 7. The company's business is mainly concentrated on the ownership and operation of crude oil tankers on long term bareboat contracts, which include certain cancellation options to major oil companies. Independent Tankers owns or leases six VLCC's and four Suezmax tankers. All vessels are financed through bonds in the US market and some of the vessels are also subject to financial lease arrangements. The average daily bareboat rate earned by the company's VLCCs and its suezmax tanker were approximately $26,100 and $7,800 – almost the same as in in the preceding quarter.
The company says its strategy will mainly be concentrated around long term charter to reputable companies, for the time being BP Shipping Limited, Chevron Transport Corporation and Frontline Ltd. It adds: “In order to enhance shareholder value the Company's short and medium strategy would be to focus on restructuring the Company's debt as well as trying to renegotiate charter terms.”
Independent Tankers expects that its quarterly earnings for the remainder of the year will be in line with first quarter of 2008. From January 2009 it anticipates stronger results as a consequence of the VLCC vessel British Pioneer coming off a fixed charter rate and starting to trade at a market rate.