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ITCL - Preliminary Fourth Quarter and Financial Year 2011 Results

Press release from Independent Tankers Corporation Limited 17.02.2012


Highlights

·         Independent Tankers reports a net loss of $2.3 million, equivalent to a loss per share of $0.03, for the fourth quarter of 2011.
·         Independent Tankers reports net income of $3.5 million, equivalent to earnings per share of $0.05, for the year ended December 31, 2011.
·         In February 2012, BP Shipping Limited extended the charter for the VLCC British Progress for one additional year.

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 Financial Year 2011 Results

The Board of Independent Tankers announces a net loss of $2.3 million, equivalent to a loss per share of $0.03, for the fourth quarter of 2011, which is the same result as the preceding quarter. The average daily bareboat rate earned in the fourth quarter by the Company's VLCCs was $22,100, which represents a small decrease compared with the preceding quarter due to a rate decrease on the VLCC British Pride following the end of the fixed period charter in July. The average daily time charter equivalent rate earned in the fourth quarter by the Company's two VLCCs trading in the spot market was $12,900 compared with $7,800 in the preceding quarter. Increased revenues in the spot market of $0.9 million were offset by increased operating costs on the two VLCCs trading in the spot market, reduced bareboat revenues and a decrease in interest income.

For the year ended December 31, 2011, the Company announces net income of $3.5 million, equivalent to earnings per share of $0.05, compared with net income of $15.5 million in the year ended December 31, 2010, equivalent to earnings per share of $0.20. The decrease in net income is mainly attributable to a reduction in vessel earnings of $17.3 million, due mainly to two vessels switching from fixed bareboat charters to the spot market, offset by an increase of $5.2 million relating to the termination of funding agreements. At December 31, 2011, all of the Company's bond debt of $288.1 million is at fixed interest rates ranging from 7.84% to 8.52%.

In February 2012, the average total cash cost breakeven rates for the remaining part of 2012 is $30,000 per day on TCE basis for the two spot trading VLCCs and $21,200 per day on a bareboat basis for the four vessels on bareboat charters.

Chartering Summary

In February 2012, BP extended the charter for the VLCC British Progress for one additional year. As a result, the vessel will trade on a market rate with a minimum bareboat rate of $20,000 per day from February 2, 2012 until February 2, 2014.

Other Matters

On October 3, 2011, pursuant to the Collateral Trust Agreement, excess funds of $6.7 million held by the Trustee allocable to Calpetro Tankers (Bahamas III) Limited ("Bah III"), a wholly-owned subsidiary of the Company, were released to Bah III. These funds were dividended to the Company in the fourth quarter.

The Company received a loan of $23.0 million from Frontline in December 2011 and used these funds together with the dividend received from Bah III and free cash to repay the $33.0 million bank loan.
74,825,166 ordinary shares were outstanding as of December 31, 2011, and the weighted average number of shares outstanding for the quarter was also 74,825,166.

The full report is available for download in the link enclosed and from the Company's website www.itcl.bm.

The Board of Directors
Independent Tankers Corporation Limited
Hamilton, Bermuda
February 16, 2012

Questions should be directed to:

Magnus Vaaler: Vice President Finance, Frontline Management AS
+47 23 11 40 21

Website: www.itcl.bm

4th quarter 2011 results

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