KnightsbridgeTankers cut its quarterly dividend in half Wednesday in response to the earlytermination of charter contracts with Hong Xiang Shipping and Sanko Steamship.
Nasdaq-listed Knightsbridge declared asecond-quarter payout of $0.175 per share after posting a net loss of $3.3m,versus a gain of $7.1m in the same period a year ago.
In the first quarter of this year andthe second quarter of 2011 the dividend stood at $0.35 and $0.50, respectively.
The Oslo and Hamilton,Bermuda-based shipowner said the latest deficit, which amounted to $0.13 in lostearnings per share, included a $5.1m hit linked to the collapse of a contractinvolving the 176,000-dwt Golden Zhejiang(built 2010).
The capesize bulker, which was earning $32,326per day in a contract with Hong Xiang that wasn’t due to expire until 2014 oreven later as it included a two-year extension, is nowtrading in the spot market.
Knightsbridge said the fixture wasguaranteed by the charterer’s parent, Beijing Jianlong Heavy Industry Group,and expects to seek damages while simultaneously chasing a claim tied to Sanko and the premature redelivery of the 169,000-dwt Battersea(built2009).
Looking forward, the company said it expects tobook a loss of $13m in the third quarter from the sale of the 280,000-dwt tanker Hampstead (built 1996) in a deal that confirms reports that made TradeWinds headlinesearlier this month.
“The sale of the VLCC Hampstead is apart of the company’s intention to renew and grow the fleet and may assist thecompany in reacting to interesting acquisition opportunities,” it added in anote to investors.
