1 / 12

Knightsbridge Tankers Limited

Knightsbridge Tankers Limited. Company Background. Knightsbridge Tankers Limited is an international tanker company with the primary business activity of international seaborne transportation of crude oil.

elia
Download Presentation

Knightsbridge Tankers Limited

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Knightsbridge Tankers Limited

  2. Company Background • Knightsbridge Tankers Limited is an international tanker company with the primary business activity of international seaborne transportation of crude oil. • Knightsbridge is wholly owned subsidiary of Frontline Ltd., and has 4 VLCC or very large crude carriers

  3. Ships

  4. Statement of Cash Flows

  5. Balance Sheet

  6. Analysis

  7. Stock Price

  8. VLCCF vs. S&P 500

  9. Strengths • Relatively new ships. Older ships have to be phased out over the next few years, which Knightsbridge could take advantage of because they have no old ships. • Expanding into dry bulk shipping with the purchase of 2 ships underconstruction • Locked in charter rates for its two under construction vessels, which limiting its exposure to declining charter rates. • Potentially limited risk in credit markets because of their large amount of cash on hand. If needed Knightsbridge could use cash instead of debt for financing. • Have historically paid a consistent and high dividend, yielding approximately 10% over the past 3 years.

  10. Weaknesses • Expiring Charter on one ship • Mainly use charters as oppose trading on the spot market • Possibility of charter cancellation • If the 2 vessels are not delivered within the deadline set by the charter, the charterer will have the right to cancel the charter. • Four customers accounted for 92% of gross revenue in 2007

  11. Opportunities Threats Increase in government regulation Continued weakness in oil demand • Increase in oil demand leads to increase in demand for oil transportation • Route expansion into other areas of the world

  12. Questions

More Related