ITCL - Second Quarter and Six Months 2012 Results
Press release from Independent Tankers Corporation Limited 30.08.2012
Highlights
· Independent Tankers reports a net loss of $0.4 million, equivalent to a loss per share of $0.006, for the second quarter of 2012.
· Independent Tankers reports a net loss of $3.3 million, equivalent to a loss per share of $0.04, for the six months ended June 30, 2012.
· In June 2012, Chevron gave nine months non-binding notice of termination for the bareboat charter for the VLCC Phoenix Voyager.
· In July 2012, BP extended the bareboat charters for the VLCCs British Purpose and British Pride 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.
Second Quarter and Six Months 2012 Results
Independent Tankers announces a net loss of $0.4 million, equivalent to a loss per share of $0.006, for the second quarter of 2012. This compares with a net loss of $2.9 million, equivalent to a loss per share of $0.04, for the preceding quarter. The decrease in the loss is primarily due to improved earnings from the two vessels operating in the spot market. The average daily time charter equivalent rate earned in the second quarter by the two VLCCs trading in the spot market was $23,200 compared with $6,500 in the preceding quarter. The average daily bareboat rate earned in the second quarter by the Company's VLCCs was $22,100, which was the same as the preceding quarter.
Independent Tankers announces a net loss of $3.3 million, equivalent to a loss per share of $0.04, for the six months ended June 30, 2012. This compares with net income of $8.1 million, equivalent to earnings per share of $0.11 for the six months ended June 30, 2011. The decrease is primarily due to the absence of a gain of $8.8 million in the Golden State group in the first quarter of 2011 on the termination of a funding agreement and a $2.4 million reduction in the earnings from the two vessels operating in the spot market. The average daily time charter equivalent rate earned in the six months ended June 30, 2012 by the two VLCCs trading in the spot market was $14,600 compared with $17,500 in the six months ended June 30, 2011. The average daily bareboat rate earned in the six months ended June 30, 2012 by the Company's VLCCs was $22,100, compared to $23,300 in the six months ended June 30, 2011.
In August 2012, the Company has average total cash cost breakeven rates for the remaining part of 2012 for its two spot traded VLCCs of $30,000 per day and $21,200 per day for the four VLCC bareboat vessels.
Chartering Summary
In June 2012, Chevron Transport Corporation ("Chevron") gave nine months non-binding notice of termination for the bareboat charter for the VLCC Phoenix Voyager. Six months binding notice of termination has to be given by Chevron in September 2012 for the termination to take effect in March 2013. The vessel currently earns a bareboat rate of $28,500 per day.
In July 2012, BP Shipping Ltd ("BP") extended the bareboat charters for the VLCCs British Purpose and British Pride for one additional year. British Purpose will trade on a market rate with a minimum rate of $20,000 per day until July 14, 2014. British Pride will trade on a market rate with a minimum rate of $20,000 per day until July 30, 2014.
Other Matters
74,825,166 ordinary shares were outstanding as of June 30, 2012, and the weighted average number of shares outstanding for the first quarter was also 74,825,166.
The full report is available for download in the link enclosed.
The Board of Directors
Independent Tankers Corporation Limited
Hamilton, Bermuda
August 29, 2012
Questions should be directed to:
Magnus Vaaler: Vice President Finance, Frontline Management AS
+47 23 11 40 21
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.
2nd quarter 2012 results