Knightsbridge Tankers Limited: Second quarter and six month result
Knightsbridge Tankers Limited (the “Company”) reports net income of $7.9 million and earnings per share of $0.46 for the second quarter of 2006. The average daily time charter equivalents (“TCEs”) earned by the Company’s five VLCCs was $42,800 compared with $54,300 in the immediately preceding quarter. The second quarter earnings reflect the weakening of the tanker market that occurred in the first quarter and early into the second quarter of 2006 before a steady recovery that continued through the end of the second quarter. Net interest expense for the quarter was $1.3 million (2005 comparable quarter: $1.0 million) and at June 30, 2006, all of the Company’s debt is floating rate debt. As of August 7, 2006, the Company has an average cash breakeven rate for its vessels of $19,200 per vessel per day compared to $18,900 on May 8, 2006. This increase is as result of increased general market interest rates.