(RTTNews) - Friday, Knightsbridge Tankers Ltd. (VLCCF:
News ), a provider of seaborne transportation of crude oil, reported a sharp decline in net earnings for the second quarter, hit by a 36% decline in revenues owing to weak demand.
The Hamilton, Bermuda-based company's quarterly net income declined to $3.09 million or $0.18 per share from $14.16 million or $0.83 per share last year. On an average, seven analysts polled by Thomson Reuters expected earnings of $0.29 per share. Analysts' estimates typically exclude special items.
Knightsbridge Tankers' quarterly operating revenues plunged to $13.97 million, yet surpassed the Street View of $13.45 million, from $21.98 million a year ago.
Due to an increase in voyage expenses, ship operating expenses, administrative expenses, the company's total operating expenses for the quarter rose to $10.54 million from $7.68 million last year.
The average daily time charter equivalents, or TCEs, earned by the company's four very large crude oil carriers or VLCCs fell to $33,100 per day per vessel from $58,700 per day per vessel, hit by weaker market. The company noted that according to industry sources, the average earnings for a double hulled VLCC tanker was approximately $27,500 per day for the quarter.
Knightsbridge had recently entered into agreements with Daehan Shipbuilding Company in the Republic of Korea. The contract entails construction of two Capesize dry bulk carriers, each with a cargo-carrying capacity of approximately 170,000 deadweight ton and is expected to be delivered from Daehan Shipyard on August, 26.
For the six months ended June 30, 2009, the company reported net income of $9.59 million or $0.56 on operating revenues of $29.70 million, compared with $28.99 million or $1.70 on operating revenues of $46.99 million in the prior year.
VLCCF, currently dipped 7.44% to $14.56 on the Nasdaq.
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by RTT Staff Writer
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