VLCCF - Knightsbridge Tankers Limited First Quarter 2010 Results

12.05.2010

HIGHLIGHTS

Knightsbridge reports net income of $10.2 million and earnings per share of $0.60 for the first quarter of 2010.

Knightsbridge announces a cash dividend of $0.40 per share for the first quarter of 2010, an increase of $0.10 per share compared to the fourth quarter of 2009.

FIRST QUARTER 2010 RESULTS

Knightsbridge Tankers Limited (the "Company" or "Knightsbridge") reports net income of $10.2 million and earnings per share of $0.60 for the first quarter compared to net income of $9.0 million and earnings per share of $0.53 for the fourth quarter of 2009. The average daily time charter equivalents ("TCEs") earned by the Company's four VLCCs and two Capesize vessels were $35,500 and $45,500 respectively, compared with $36,900 and $44,300 in the preceding quarter. Revenues and net income increased mainly due to a full quarter's earnings from the Belgravia, which commenced a five year time charter during the preceding quarter and profit share earned by the Hampstead and Kensington due to an improvement in spot rates, which were partially offset by reduced earnings from the Camden.

The net increase in cash and cash equivalents in the quarter was $0.6 million. The Company generated cash from operating activities of $12.8 million, used $3.5 million to repay loan facilities, made final payments relating to its newbuilding project of $3.6 million and paid a dividend of $5.1 million. With effect from April 1, 2010 the minimum cash required to be held by the Company will increase from $10 million to $15 million, in accordance with the terms of the loan agreement for the Capesize vessels that were delivered in 2009. This is accounted for as restricted cash in the Company's balance sheet. In May 2010, the Company has average cash breakeven rates for its VLCCs and Capesize vessels of approximately $19,300 and $16,800 per vessel per day, respectively.

On May 11, 2010, the Board declared a dividend of $0.40 per share. The record date for the dividend is May 21, 2010, the ex dividend date is May 19, 2010 and the dividend will be paid on or around June 7, 2010.

The full report is available in www.knightsbridgetankers.com

Knightsbridge Tankers Limited