2013-02-25 09:04:33 -
Highlights
· Independent Tankers reports a net loss of $1.9 million, equivalent to
a loss per share of $0.02, for the fourth quarter of 2012.
· Independent Tankers reports a net loss of $6.5 million, equivalent to
a loss per share of $0.09, for the year ended December 31, 2012.
· In February 2013, BP Shipping Ltd. gave twelve months irrevocable
notice of termination of the bareboat charter for the VLCC British Progress.
Introduction
Independent Tankers Corporation Limited (the "Company" or "Independent
Tankers")
was incorporated in Bermuda on January 18, 2008 and the shares have traded on
the Norwegian over-the-counter market since March 7, 2008. Independent Tankers'
business is mainly concentrated on the ownership and operation
of crude oil
tankers on long term bareboat contracts to major oil companies and two vessels
operating in the spot market. Independent Tankers owns six VLCC's and three
Suezmax tankers. All vessels are financed through bonds in the US market. The
main shareholder is Frontline Ltd. ("Frontline") with an ownership of
approximately 83 percent.
Preliminary Fourth Quarter and Full Year 2012 Results
The Board of Independent Tankers announces a net loss of $1.9 million,
equivalent to a loss per share of $0.02, for the fourth quarter of 2012. This
compares with a net loss of $1.4 million, equivalent to a loss per share of
$0.02, for the preceding quarter. The increase in the loss is primarily due to a
decrease in the earnings from the two vessels operating in the spot market. The
average daily time charter equivalent rate earned in the fourth quarter by the
two VLCCs trading in the spot market was $9,800 compared with $11,200 in the
preceding quarter. The average daily bareboat rate earned in the fourth quarter
by the Company's VLCCs was $22,100, which was the same as the preceding quarter.
The Board of Independent Tankers announces a net loss of $6.5 million,
equivalent to a loss per share of $0.09, for the year ended December 31, 2012.
This compares with net income of $3.5 million, equivalent to earnings per share
of $0.05 for the year ended December 31, 2011. The decrease is primarily due to
the absence of a gain of $8.8 million, which was recognized in the first quarter
of 2011 on the termination of a funding agreement in the Golden State group and
a $1.5 million reduction in the earnings from the two vessels operating in the
spot market partially offset by a $0.3 million reduction in net interest
expense. The average daily time charter equivalent rate earned in the year ended
December 31, 2012 by the two VLCCs trading in the spot market was $12,500
compared with $13,900 in the year ended December 31, 2011. The average daily
bareboat rate earned in the year ended December 31, 2012 by the Company's VLCCs
was $22,100 compared with $22,800 in the year ended December 31, 2011.
In February 2013, the Company has average total cash cost breakeven rates for
the remaining part of 2013 for its two spot traded VLCCs of $30,500 per day and
$21,500 per day for the four VLCC bareboat vessels.
Chartering Summary
In September 2012, Chevron Transport Corporation ("Chevron") gave six months
binding notice of termination of the bareboat charter for the VLCC Phoenix
Voyager. The termination will take effect in March 2013 and the Company expects
the vessel to commence trading in the spot market following the termination. The
vessel currently earns a bareboat rate of $28,500 per day.
In February 2013, BP Shipping Ltd. gave twelve months irrevocable notice of
termination of the bareboat charter for the VLCC British Progress. The vessel
will be redelivered from BP to ITCL in February 2014.
Other Matters
74,825,166 ordinary shares were outstanding as of December 31, 2012, and the
weighted average number of shares outstanding for the first quarter was also
74,825,166.
Forward Looking Statements
This press release contains forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including the Company's management's examination of historical
operating trends. Although the Company believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond its control, the Company cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to
differ materially from those discussed in this press release include the
strength of world economies and currencies, general market conditions including
fluctuations in charter hire 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 the Company's operating
expenses including bunker prices, drydocking and insurance costs, 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 the Company with the Norwegian over-the-
counter market in Oslo.
The full report is available for download in the link enclosed.
The Board of Directors
Independent Tankers Corporation Limited
Hamilton, Bermuda
February 25, 2013
Questions should be directed to:
Magnus Vaaler: Vice President Finance, Frontline Management AS
+47 23 11 40 00
4th quarter 2012 results:
hugin.info/138953/R/1680695/549192.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Independent Tankers Corporation Limited via Thomson Reuters ONE
[HUG#1680695]
