VLCCF - Acquisition of newbuilding contracts and sale of vessel
Knightsbridge Tankers Limited ("Knightsbridge" or the "Company") is pleased to announce that it has concluded two newbuilding contracts for 182,000 dwt Capesize bulk carriers with Japan Marine United Corporation ("JMU") in Japan.
The design provided by JMU represents the next generation Capesize bulk carriers with the latest technology available in order to secure fuel efficiency. The vessels are expected to be delivered during 2015. The Board is of the opinion that it has obtained favorable terms, attractive pricing and considers risk / reward as attractive from a historical perspective. The Board also believes that after a period of oversupply but still with solid demand growth, utilization of the dry bulk fleet is expected to improve at the time of delivery of the newbuildings.
Furthermore the Company announces that the VLCC Mayfair has been sold to an unrelated third party with expected delivery in the second quarter of 2013. The Company expects to record a loss of approximately $5.3 million. The net cash proceeds from the sale is approximately $4 million after repayment of debt.
The acquisition of the Capesize newbuilding contracts and the sale of the Mayfair is part of Knightsbridge's strategy to renew and grow the fleet. After the above transactions the Company's fleet consists of four Capesize bulk carriers and two Capesize bulk carrier newbuilding contracts.
The Board of Directors
Knightsbridge Tankers Limited
March 19, 2013
Questions should be directed to:
Ola Lorentzon: Chairman, Knightsbridge Tankers Limited
+ 46 703 998886
Inger M. Klemp: Chief Financial Officer, Knightsbridge Tankers Limited
+47 23 11 40 76
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Knightsbridge Tankers Limited via Thomson Reuters ONE