Bulker deliveries boost Knightsbridge income.
DELIVERY of two capesize bulk carriers in 2009 boosted Bermuda-registered Knightsbridge Tankers income and revenues in the fourth quarter, offsetting falling earnings from its tanker operations.
The company, which is affiliated to John Fredriksen"s tanker group Frontline, reported a 15% jump in net income in the last three months of last year to $9m, despite a 30% decline in daily earnings from its fleet of four very large crude carriers.
The company"s operating revenues rose by 45% to $23.4m in the fourth quarter after it received the last of two newbuildings from the Daehan shipyard in South Korea.
?The main reason for the increase in income is the capesizes that were delivered,?said Knightsbridge chief financial officer Inger Klemp. ?The Battersea was delivered in the third quarter, so we got a full quarter of revenue for this ship and the Belgravia was delivered in October.?
She said the two capesizes were the last of the company"s newbuildings and there were no plans to order any more ships.
But the company kept the door open for future acquisitions and said ?opportunities for expanding the fleet are increasing?.
Knightsbridge generated $12m from operating activities and received $30m from its long term loans during the fourth quarter. It paid off $19m of loans and spent $16.6m on its last newbuilding project.
Knightsbridge"s operating revenues for the whole of 2009 dropped to $67.3m compared with $82.9m in 2008 because of a decrease in tanker earnings.
The average time charter earnings for its VLCCs was $36,000 last year compared with $52,600 per day the year before.
Last year Knightsbridge spent $42.5m to repay loans and $116.5m on the newbuildings, while it generated $34.6m from operating activities and received $58.7m from long-term loans.
Knightsbridge is looking for future time charter employment for its 1995-built VLCC Mayfair, which will be redelivered from an existing time charter in March.
Next month, its 1995-built VLCC Camden will begin a 30-month bareboat charter, which will generate $32,000 per day for Knightsbridge.
The shipowner"s other ships are on time charter for the rest of this year. The next ship to be available will be the 1995-built Kensington, which is scheduled to complete its existing time charter contract in June 2011.