World News
Knightsbridge Loss Up as It Shifts Focus to Capesize Bulkers
Knightsbridge Tankers Limited [NASDAQ:VLCCF] (Knightsbridge) of Bermuda reports a net loss of $6.9 million for the first quarter of 2013, which it said was largely attributable to its discontinued very large crude carrier (VLCC) operations.
The company, which has shifted its focus to Capesize bulk carriers, had a net loss from continuing operations of $400,000 for the quarter, while it brought in $6.5 million in revenue.
Knightsbridge had a net income of $7.1 million in the first quarter of 2012 on revenues of $13.6 million.
The company's VLCC, the Mayfair, was delivered to a buyer on April 9, and the sale resulted in an impairment loss of $5.3 million, reflecting the expected loss from the sale.
Knightsbridge said the dry bulk market "showed few signs of recovery during the quarter," with the Baltic Dry Index showing average earnings for Capesize carriers of $6,015 per day, too little to cover expenses for many owners.
The company reported time charter equivalent (TCE) earnings of $17,900 per day per vessel for the quarter, compared with $22,500 in FY 2012.
It said the market was hurt by factors including low levels of iron ore exports from Brazil and of coal from Colombia.
Knightsbridge, which has a current fleet of four Capesize vessels, ordered two new fuel-efficient bulk carriers from Japan Marine United Corp. in March.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 506.50 | 6.50 | 622.50 | 7.00 |
| Rotterdam | 460.00 | 1.50 | 630.00 | 8.50 |
| Houston | 472.50 | 0.50 | 625.00 | 1.50 |
| Fujairah | 501.00 | 6.00 | 721.00 | 8.00 |
| Global 20 Ports Average | 529.00 | 2.50 | 724.00 | 1.50 |
| Global 4 Ports Average | 485.00 | 3.50 | 649.50 | 5.00 |
| Global Average Bunker Price | 571.00 | 4.00 | 755.50 | 0.00 |
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