Knightsbridge Tankers Limited: VLCCF - Second Quarter 2009 and Six Months Results

HAMILTON, BERMUDA--(Marketwire - August 14, 2009) -

HIGHLIGHTS

* Knightsbridge reports net income of $3.1 million and earnings per
share of $0.18 for the second quarter of 2009.
* Knightsbridge reports net income of $9.6 million and earnings per
share of $0.56 for the six months ended June 30, 2009.

SECOND QUARTER 2009 AND SIX MONTHS RESULTS

Knightsbridge Tankers Limited (the "Company") reports net income of
$3.1 million and earnings per share of $0.18 for the second quarter
of 2009. The average daily time charter equivalents ("TCEs") earned
by the Company's four VLCCs decreased to $33,100 compared with
$40,700 in the preceding quarter due to a weaker market, which
resulted in no profit share earnings for M/T Hampstead and M/T
Kensington and a reduction in rates from M/T Camden.

The net decrease in cash and cash equivalents in the quarter was
$43.4 million. The Company generated cash from operating activities
of $8.3 million, used $2.2 million to repay debt facilities and
invested $49.5 million in our newbuildings. In August 2009, the
Company has an average cash breakeven rate for its vessels of $18,400
per vessel per day compared to $18,700 in August 2008.

For the six months ended June 30, 2009 the Company reports net income
of $9.6 million and earnings per share of $0.56. The average daily
TCEs for the six months ended June 30, 2009 was $36,900.

THE MARKET

According to industry sources, the average earnings for a modern,
double hulled VLCC tanker was approximately $27,500/day for the
quarter. The earnings varied from $32,000/day at the beginning of the
quarter with a low of approximately $17,000/day at the beginning of
June to a high of approximately $47,000/day at the end of June.
Present indications are approximately $12000 per day

Bunkers at Fujairah averaged approximately $345/mt in the second
quarter of 2009 with a high of approximately $424/mt at the end of
June and a low of approximately $252/mt on April 1st. We have seen
high bunker prices over the last week and current indications are
approximately $430/mt according to Platt's

IEA estimates that world oil demand averaged 83.1 million barrels per
day in the second quarter of 2009, 1.36 million barrels less than in
the first quarter of 2009. IEA predicts that the average demand for
2009 in total will be 83.8 million barrels per day, a 2.9 percent
decline from 2008.

According to industry sources, the VLCC fleet totalled 511 vessels at
the end of the second quarter with 16 deliveries during the quarter,
an increase of 1.2 percent from the previous quarter when the fleet
totalled 505. Throughout 2009 it is expected that a total of 73 VLCC
deliveries will take place. The total order book amounted to 200
vessels at the end of the second quarter, down from 217 vessels after
the first quarter of 2009, including one cancellation. The current
orderbook represents about 39 percent of the VLCC fleet. During the
quarter no new orders were made and there were 10 deletions from the
trading fleet, of which one was demolished and the rest conversions
to non-tanker regular trade. According to Fearnleys, the total single
hull tanker fleet stands at 91 vessels at the end of the quarter.

CORPORATE AND OUTLOOK

The total contract price for the two newbuildings is $162 million of
which the Company has paid $97.2 million at the end of the second
quarter. $32.4 million of these installments have been financed
through a short term bank facility, which will be repaid upon
delivery of the vessels, while the balance of $64.8 million has been
financed by equity. As announced in the first quarter, the Company
has been working to put in place financing for the remaining
instalments of $64.8 million due on the two newbuildings and
Knightsbridge has secured long term, bank financing in the amount of
$60 million.

The Capesize MV Battersea is expected to be delivered from Daehan
Shipyard on the 26th of August and concurrently enter her
time-charterparty with Sanko Steam Ship of Tokyo. The Company expects
the MV Belgravia to be delivered during the fourth quarter of 2009.

Three of the Company's VLCCs are fixed on time charters expiring
between 2010 and 2012. One of our VLCCs is trading in the spot
market.

Although the Company has secured financing, the level of debt is not
considered optimal. Despite the strong forward charter cover the
Board has agreed to take a conservative stance and has decided not to
distribute any dividend this quarter.

The Company announces that its 2009 Annual General Meeting will be
held in Bermuda on September 25, 2009. The Notice of Annual General
Meeting and associated material will be distributed to shareholders
shortly. The Company currently has an authorized share capital of
$200,000 consisting of 20,000,000 common shares of $0.01 par value
each and issued share capital of $170,000 consisting of 17,100,000
common shares of $0.01 par value each. At the Annual General Meeting,
the Board will ask the Company's shareholders to approve an increase
in the authorized share capital to $350,000 consisting of 35,000,000
common shares of $0.01 par value each. This increase will give the
Company the ability and flexibility to raise equity at such time as
the Board of Directors considers appropriate and necessary. The
approval of the resolution to increase the Company's authorized share
capital requires a majority of all votes attached to the Company's
issued and outstanding common shares The Board believes the approval
of this resolution is important to the Company and encourages
shareholders to read the material provided and vote accordingly.

FORWARD LOOKING STATEMENTS

Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation Reform
Act of 1995 provides safe harbor protections for forward-looking
statements in order to encourage companies to provide prospective
information about their business. Forward-looking statements include
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.

Knightsbridge desires to take advantage of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995 and is
including this cautionary statement in connection with this safe
harbor legislation. The words "believe," "except," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential,"
"will," "may," "should," "expect" "pending" and similar expressions
identify forward-looking statements.

The forward-looking statements in this document are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, our management's
examination of historical operating trends, data contained in our
records and other data available from third parties. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant uncertainties
and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.

In addition to these important factors, important factors that, in
our view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of
world economies and currencies, general market conditions, including
fluctuations in charterhire rates and vessel values, changes in
demand in the tanker market, as a result of changes in OPEC's
petroleum production levels and world wide oil consumption and
storage, changes in Knightsbridge's operating expenses, including
bunker prices, drydocking and insurance costs, the market for
Knightsbridge's vessels, availability of financing and refinancing,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political
events, and other important factors described from time to time in
the reports filed by Knightsbridge with the Securities and Exchange
Commission.

The full report is available in the link enclosed.

http://hugin.info/132879/R/1334910/317091.pdf

The Board of Directors
Knightsbridge Tankers Limited
Hamilton, Bermuda
August 13, 2009

Questions should be directed to:

Contacts:

Ola Lorentzon : Chairman, Knightsbridge Tankers Limited
+ 46 703 998886

Inger M. Klemp: Chief Financial Officer, Knightsbridge Tankers
Limited
+47 23 11 40 76

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