Bermuda-registered Knightsbridge Tankers made a Q2 net profit of US$14.2m compared with US$7.2 in the same quarter last year. The average daily time charter equivalents ("TCEs") earned by the company's four VLCCs was $58,700 compared with $55,300 in the preceding quarter and $36,800 in Q2 2007.
Knightsbridge notes that the average market rate for VLCCs from MEG to Japan in Q2 was about WS 173 ($130,000 per day) compared to about WS 126 ($ 6,000 per day) in the first quarter of 2008. The company notes that, according to Clarkson, the third quarter started with average TCE rates for modern VLCCs, of $153,000 per day while present indications are $60,000 per day. Commenting on the bunker situation the company says that Bunkers at Fujairah averaged approximately $578 per tonne in the second quarter with a low of approximately $495 per tonne and a high of approximately $680 per tonne. It adds: “The average bunker price at Fujairah so far in the third quarter is $713 per tonne, according to Platts, while present quotes are $657 per tonne. Knightsbridge says it has four VLCCs fixed on timecharters expiring between 2009 and 2012 and so its exposure to short term market fluctuations is limited. Two of these time charters also include a profit sharing arrangement. The company says: “ This contract coverage provides good long term stability and limits financial risk.” In June Knightsbridge bought two capesize newbuilding contracts with deliveries scheduled for next year. Both have been fixed on five year time charters from delivery in 2009 at net rates of $40,000 and $53,000 per day. The company says: “The total investment for the newbuilding contracts is approximately $162m of which the company has paid $32.4m to date. The $32.4m has been 100 % financed through a bank facility.”
Knightsbridge notes that the average market rate for VLCCs from MEG to Japan in Q2 was about WS 173 ($130,000 per day) compared to about WS 126 ($ 6,000 per day) in the first quarter of 2008. The company notes that, according to Clarkson, the third quarter started with average TCE rates for modern VLCCs, of $153,000 per day while present indications are $60,000 per day. Commenting on the bunker situation the company says that Bunkers at Fujairah averaged approximately $578 per tonne in the second quarter with a low of approximately $495 per tonne and a high of approximately $680 per tonne. It adds: “The average bunker price at Fujairah so far in the third quarter is $713 per tonne, according to Platts, while present quotes are $657 per tonne. Knightsbridge says it has four VLCCs fixed on timecharters expiring between 2009 and 2012 and so its exposure to short term market fluctuations is limited. Two of these time charters also include a profit sharing arrangement. The company says: “ This contract coverage provides good long term stability and limits financial risk.” In June Knightsbridge bought two capesize newbuilding contracts with deliveries scheduled for next year. Both have been fixed on five year time charters from delivery in 2009 at net rates of $40,000 and $53,000 per day. The company says: “The total investment for the newbuilding contracts is approximately $162m of which the company has paid $32.4m to date. The $32.4m has been 100 % financed through a bank facility.”