Seeking Alpha

Knightsbridge Tankers beats Q2 estimates, still sees drybulk market recovery

  • Knightsbridge Tankers (VLCCF +7.5%) opens with strong gains after reporting Q2 earnings of $0.14, easily beating the analyst consensus estimate of $0.03.
  • Q2 average daily time charter equivalent earned by capesize vessels was $15K, compared with $25.2K in the preceding quarter; capesize vessels earned $11.9K/day in Q2 vs. $16.3K/day the Q1 but still almost twice as much as the same quarter in 2013.
  • Says the weak drybulk market in Q2 has continued into Q3, but VLCCF is still confident of a recovery in the market later this year; with a targeted cash breakeven rate below $15K/day, says is in a strong position to benefit from an expected recovery.
  • VLCCF says it will seek to grow dividends as the dry bulk market recovers and newbuildings commence operation.

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