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ITCL - First Quarter 2010 Results

Press release from Independent Tankers Corporation Limited 21.05.2010


Highlights 

·    Independent Tankers reports net income of $6.1 million, equivalent to earnings per share of $0.08 for the first quarter of 2010.

  • A subsidiary of Independent Tankers received a termination fee of $4.9 million upon termination of the Front Voyager bareboat charter.
  • The single hull Suezmax vessel, Front Voyager, was sold for net proceeds of $8.3 million and delivered to the buyer on April 8, 2010.
  • In March 2010, Chevron Transport Corporation chose not to declare the termination option for the Suezmax tanker Sirius Voyager and the bareboat charter will continue until 2015.
  • The UK tax lease for the VLCC British Purpose will be terminated in the third quarter of 2010.

 

 

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, which include certain cancellation options, to major oil companies. Independent Tankers owns or leases six VLCC's and three 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 main shareholder is Frontline Ltd. ("Frontline") with an ownership of approximately 83 percent.

 

First Quarter 2010 Results

 

The Board of Independent Tankers announces net income of $6.1 million, equivalent to earnings per share of $0.08 for the first quarter of 2010. This compares with a net income of $4.4 million, equivalent to earnings per share of $0.06 for the preceding quarter. The increase of $1.7 million is largely due to the fee received on the termination of the Front Voyager bareboat charter. Further details are described in the chartering summary below.

 

The average daily bareboat rates earned in the fourth quarter by the Company's VLCCs and the Suezmax tanker Front Voyager were approximately $24,800 and $7,800 (excluding termination fee), respectively, compared with approximately $25,100 and $7,800, respectively, in the preceding quarter.

 

Net interest expense was $5.1 million (preceding quarter: $5.1 million). At March 31, 2010, all of the Company's bond debt of $321.3 million is at fixed interest rates ranging from 6.68% to 8.52%.

 

In May 2010, the Company has average cash breakeven rates for its VLCCs of approximately $18,500 per vessel.

The full report is available in the link enclosed and on the Company's website: www.itcl.bm

 

The Board of Directors

Independent Tankers Corporation Limited

Hamilton, Bermuda

May 20, 2010

 

 

Questions should be directed to:

Bengt Neteland: Vice President Finance, Frontline Management AS

                        +47 23 11 40 37 or +47 924 99 386

 

1st quarter 2010 results

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