Boston, MA 03/13/2014 (wallstreetpr) – Knightsbridge Tankers Limited (NASDAQ:VLCCF) is in the business of crude oil and dry bulk transportation. Like most other businesses in this industry, VLCCF had a very challenging year in 2013. The lag in demand for iron ore and slowdown in global oil refinery activities all added up to the pain that consumed the company and its shareholders. But things have changed, or at least are changing in its favor.
Since this year, recovery in dry bulk shipping activities has been noted and players in the industry are doing all that is possible to take advantage of the opportunities as they come. Acquisition of shipping vessels is among the priorities of Knightsbridge Tankers Limited (NASDAQ:VLCCF) and its peers in the seaborne transportation and dry bulk shipping market.
The company is also adjusting its expenses and costs to ensure that when revenue starts trickling in, they will lead to positive improvement of the bottom line.
Shares of Knightsbridge Tankers Limited (NASDAQ:VLCCF) rose 1.41 percent to $12.98 in the last session. More than normal daily volume of shares changed hands in the last session, on day that the shares were traded in the range of $11.75 to $13.03. In the past one year the stock price has been swinging between $6.10 and $13.22.
Vessels acquisition
Knightsbridge Tankers Limited (NASDAQ:VLCCF) is keen to replace its aging vessels and also to increase its transportation fleet. And doing this will result in more efficient transportation as modern vessels come with high fuel efficiency capabilities. Thus, the company has just announced acquisition of six new vessels at the cost of $360 million, of which the transaction involves stock and cash.
The management has called the move to acquire the six vessels a major step and has said that they expect to have 14 newbuildings on water by 2015 and even more in 2016.
Investor Takeaway
Knightsbridge Tankers Limited (NASDAQ:VLCCF) is currently in an exciting position, all because of the easy-to-see opportunities in the crude oil and dry bulk transportation market. The shares of the stock have been nicely up since February 19, going up more than 33 percent to-date.
