ITCL - Preliminary Fourth Quarter and Full Year 2012 Results

Independent Tankers Corporation Limited was incorporated in Bermuda on January 18, 2008 and the shares have traded on the Norwegian over-the-counter market since March 7, 2008. Independent Tankers' business is mainly concentrated on the ownership and operation of crude oil tankers on long term bareboat contracts to major oil companies and two vessels operating in the spot market. Independent Tankers owns six VLCC's and three Suezmax tankers. All vessels are financed through bonds in the US market. The main shareholder is Frontline Ltd. ("Frontline") with an ownership of approximately 83 percent.
Preliminary Fourth Quarter and Full Year 2012 Results
The Board of Independent Tankers announces a net loss of $1.9 million, equivalent to a loss per share of $0.02, for the fourth quarter of 2012. This compares with a net loss of $1.4 million, equivalent to a loss per share of $0.02, for the preceding quarter. The increase in the loss is primarily due to a decrease in the earnings from the two vessels operating in the spot market. The average daily time charter equivalent rate earned in the fourth quarter by the two VLCCs trading in the spot market was $9,800 compared with $11,200 in the preceding quarter. The average daily bareboat rate earned in the fourth quarter by the Company's VLCCs was $22,100, which was the same as the preceding quarter.
The Board of Independent Tankers announces a net loss of $6.5 million, equivalent to a loss per share of $0.09, for the year ended December 31, 2012. This compares with net income of $3.5 million, equivalent to earnings per share of $0.05 for the year ended December 31, 2011. The decrease is primarily due to the absence of a gain of $8.8 million, which was recognized in the first quarter of 2011 on the termination of a funding agreement in the Golden State group and a $1.5 million reduction in the earnings from the two vessels operating in the spot market partially offset by a $0.3 million reduction in net interest expense. The average daily time charter equivalent rate earned in the year ended December 31, 2012 by the two VLCCs trading in the spot market was $12,500 compared with $13,900 in the year ended December 31, 2011. The average daily bareboat rate earned in the year ended December 31, 2012 by the Company's VLCCs was $22,100 compared with $22,800 in the year ended December 31, 2011.
In February 2013, the Company has average total cash cost breakeven rates for the remaining part of 2013 for its two spot traded VLCCs of $30,500 per day and $21,500 per day for the four VLCC bareboat vessels.
Chartering Summary
In September 2012, Chevron Transport Corporation ("Chevron") gave six months binding notice of termination of the bareboat charter for the VLCC Phoenix Voyager. The termination will take effect in March 2013 and the Company expects the vessel to commence trading in the spot market following the termination. The vessel currently earns a bareboat rate of $28,500 per day.
In February 2013, BP Shipping Ltd. gave twelve months irrevocable notice of termination of the bareboat charter for the VLCC British Progress. The vessel will be redelivered from BP to ITCL in February 2014.
Other Matters
74,825,166 ordinary shares were outstanding as of December 31, 2012, and the weighted average number of shares outstanding for the first quarter was also 74,825,166.
Source: Independent Tankers Corporation Limited