HAMILTON, Bermuda, June 23, 2006 (PRIMEZONE) -- Knightsbridge Tankers Limited ("Knightsbridge" or the "Company") (Nasdaq:VLCCF) is pleased to announce it has entered into new time charter agreements for its two very large crude carriers, ("VLCCs") TI Ningbo and TI Qingdao. The two VLCCs, which are currently time chartered to Tankers International LLC, will commence their new time charter employment directly after the current charters expire in the first half of 2007.
The TI Ningbo has been chartered for a period of four years and the TI Qingdao for a period of five years. The charter income for each VLCC will consist of a fixed base rate of US$37,750 per day plus a market related element being 50 percent of the difference between a spot market related rate index and the base rate. (The VLCCs current charters are at a base rate of US$30,000). The new charterer is Frontline Ltd.
The Board of Knightsbridge Tankers believes that the new charters will serve the Company well. The new charters create secured income into the next decade and at the same time allow the Company to benefit from spot market increases.
Knightsbridge Tankers owns, in addition to the VLCCs discussed above, one VLCC which is time chartered out at a fixed rate of US$30,000 until 2009 and two VLCCs that are employed in the spot market.
Knightsbridge's Common Shares trade on the Nasdaq National Market under the symbol "VLCCF".
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
Knightsbridge desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this document are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charterhire 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 Knightsbridge's operating expenses, including bunker prices, drydocking and insurance costs, the market for Knightsbridges vessels, availability of financing and refinancing, 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 Knightsbridge with the Securities and Exchange Commission.