2Q Results from Arlington Tankers
Arlington Tankers Ltd. recently announced its unaudited financial results for the second quarter ended June 30, 2006. The company's total revenues were $17.3m, consisting of $16m in basic vessel charter hire and $1.3m in additional charter hire that the company received under its profit sharing arrangements. On the basis of the second quarter results from operations, Arlington's Board of Directors has declared a cash dividend of $0.59 per share. The dividend is payable on August 8, 2006 to shareholders of record at the close of business on August 4. The additional charter hire earned during the second quarter of 2006 was derived from profit sharing arrangements under the time charters of the company's V-Max, Panamax and Product vessels. Of the $1.3m in additional hire, $600,000 was attributed to contractually guaranteed profit sharing for the two V-MAX vessels. The remaining $700,000 was attributed to our Panamax and Product tankers. Average time charter equivalent rates for the Panamax and Product tankers under profit sharing agreements in the second quarter continued at levels above the guaranteed time charter levels for the vessels. The company's net income for the second quarter of 2006 was $7.7m, or $0.50 per share. Included in net income for the quarter was an unrealized gain of $3m, which contributed $0.19 per share to the company's earnings per share during the second quarter, and represented the change in the fair value of the company's interest rate swap arrangement related to its $229.5m, five-year, secured credit facility with The Royal Bank of Scotland plc.