Knightsbridge Tankers sheds two VLCCs

Knightsbridge logoSEPTEMBER 11, 2012 — John Fredriksen's Knightsbridge Tankers Limited (Nasdaq:VLCCF) has sold two VLCCs, the Hampstead and the Titan Venus, though the Hampstead transaction didn't go quite as planned.

The Hampstead sale discussed in the company's second quarter earnings release was not completed due to the buyer's default. That sale was, therefore, cancelled and Knightsbridge will retain the $2.43 million deposit and will recorded it as a gain in the third quarter. The company will also claim for costs, arising from the sales process, from the buyer.

The Hampstead was marketed for sale after this cancellation and has vessel has now been sold to an unrelated third party with expected delivery in September 2012. Knightsbridge expects to record a loss of approximately $15 million in the third quarter. The net cash proceeds, including the $2.43 million deposit from the cancelled sale, are approximately $11 million.

Knightsbridge says that the VLCC Titan Venus (ex. Camden) has been sold to an unrelated third party with expected delivery in the fourth quarter of 2012 upon the expiry of its bareboat storage charter. The company expects to record a loss of approximately $15 million in the third quarter and the net cash proceeds from the sale are approximately $7 million.

The sales of the two VLCCs are part of the Knightsbridge's intention to renew and grow the fleet. It says they may assist it in "reacting to interesting acquisition opportunities."

After the sales, the Knightsbridge fleet consists of four Capesize vessels and two VLCCs. One of the VLCCs and two of the Capesize vessels are fixed on bareboat and time charters expiring between 2013 and 2015.

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