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ITCL - Preliminary Fourth Quarter and Full Year 2012 Results

Press release from Independent Tankers Corporation Limited 25.02.2013


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

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