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 Vessel NameTypeEmploymentExpiration DateTerms CamdenVLCCTime CharterMarch 2009$37,750/day MayfairVLCCTime CharterMarch 2010$37,750/day HampsteadVLCCTime CharterMay 2012$31,000/day KensingtonVLCCTime CharterMay 2011$45,000 /day

4. Statement of Cash Flows

5. Balance Sheet

6. Analysis VLCCFNATTKIndustry P/E4.947.115.827.97 ROE21.67%16.27%6.98%25.09% ROA14.26%14.69%1.79%3.99% ROI15.83%14.97%2.04%9.98% Operating Profit Margin 59.24%53.20%16.74%36.15%

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

12. Questions