Knightsbridge Tankers Limited announced that its Board of Directors has declared a cash distribution in the amount of $0.80 per common share. The cash distribution will be payable on or about February 10, 2004, to shareholders of record as of January 27, 2004. The declaration of the cash distribution follows the calculation by Knightsbridge of the payment of charterhire due from Shell International Petroleum Company Limited ("Shell International"), a member of the Royal Dutch/Shell Group of Companies, for the period from October 1, 2003 to December 31, 2003. The charterhire payable by Shell International is the greater of a guaranteed minimum rate or a spot market related rate.
On June 24, 2003, the Company received notice that Shell International has chosen not to renew the
bareboat charters for any of Knightsbridge's five double hull very large crude carriers (VLCC's) for a second seven year period. Consequently, the existing bareboat charters to Shell will expire for all five VLCC's, in accordance with their terms, on or about February 27, 2004, Knightsbridge has previously stated that it may retain cash in reserve should Shell International not renew all of the charters. For the fourth quarter of 2003, Knightsbridge's Board of Directors has determined to retain an additional US$6.6 million for future working capital purposes, bringing the total cash retained to approximately US$12.5 million.