Thursday, oil transportation company Knightsbridge Tankers Ltd. (VLCCF), reported a plunge in third quarter profit on lackluster top-line performance for the period, hurt further by higher operating costs.
Hamilton, Bermuda-based Knightsbridge reported net income for the third quarter of $3.10 million or $0.18 per share, compared with $11.30 million or $0.66 per share in the year-ago quarter. On average, seven analysts polled by Thomson Reuters expected the company to earn $0.31 per share. Analysts' estimates typically exclude special items.
Operating revenues for the quarter decreased to $14.21 million from $19.81 million in the prior-year quarter, missing Wall Street expectations of $15.74 million.
While revenues suffered from lower hire rates for chartered trips, they were offset partially by a newly initiated five-year time charter during the quarter, noted the company. Net operating income declined significantly to $13.76 million from $40.91 million reported for the same third quarter of last year.
Total operating expenses rose to $10.75 million from $8.4 million a year-ago, led by $2.17 million in voyage expenses compared to $0.65 million year-ago, offset by lower ship operating expenses at $3.91 million compared with $4.85 million last year.
For the first nine months of 2009, the company's net income slumped to $12.69 million or $0.74 per share from $40.29 million or $2.36 per share reported for the same period last year. Operating revenues fell to $43.92 million from $66.81 million reported for the same January-September period of 2008.
Looking ahead, the company plans to capitalize on higher demand for oil. It added that according to the International Energy Agency or IEA estimates, oil demand will increase 1.7% in 2010 to 86.05 million barrels per day, compared with 84.63 million barrels per day in the current year.
The company noted that it had halted dividend distribution for the last two quarters on large amount of equity paid on the Capesize vessels. However, it expects to resume the dividend payments in 2010, citing improvement in cash reserves on recently commenced charter contracts.
VLCCF is currently trading at $13.02, up 35 cents or 2.76% on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.