Bermuda-based shipping firm Knightsbridge Tankers boosted its earning potential for the third quarter 2007 by $2,400 per day.

The company, which operates out of Hamilton, saw its average daily time charter equivalents earned by its five very large crude carriers (VLCCs) climb from $36,800 in the preceding quarter to $39,200 for this quarter.

But, profits were down by almost half, from $14.5 million in the third quarter 2006 to $7.6 million for the same period this year.

Net interest expense for the 2007 third quarter was $1.3 million, down from $1.5 million from the previous year.

The company has four out of its five VLCCs fixed on time charters expiring between 2009 and 2012 and thus its exposure to short term market fluctuations is limited.

Two of these time charters also include a profit sharing arrangement and this contract coverage provides good long term stability and limits financial risk.