The Nasdaq-listed company, which operates four capesize carriers, profited as its average time charter equivalent (TCE) earnings in the fourth quarter rose to $28,600 per day from $21,000 in the preceding three months.
Knightsbridge pointed to extreme market volatility last year which saw a low point in April when a Cape earned some $4,200 per day, compared with $42,200 per day for the same vessel at the end of September.
“The difference between the first part of last year and the second half was significant and for the first time since 2007, utilisation of the dry bulk fleet turned in favour of owners towards the end of 2013,” the company said.
Knightsbridge says its ships earned an average TCE of $21,100 throughout 2013. It has a cash breakeven rate of $10,800 per vessel per day for the rest of the first quarter of 2014.
“The recent spike in freight rates is a sign of an improved balance in the dry bulk market and the company expects that supply/demand balance will improve further going forward,” said chairman Ola Lorentzon.
Knightsbridge has four capesize ships on order with deliveries expected in 2015.
The company reported a $500,000 loss on its discontinued tanker operations for the last quarter of 2013 and a net loss of $3.9m for the year including the effect of selling out of the sector early in the year.
