Ship Finance International Limited

May 30, 2013 09:18 ET

SFL - First Quarter 2013 Results

Reports preliminary 1Q 2013 results and quarterly dividend of $0.39 per share

HAMILTON, BERMUDA--(Marketwired - May 30, 2013) - Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended March 31, 2013.

Highlights

* Declares first quarter dividend of $0.39 per share

* Delivery of the final dry-bulk newbuilding and disposal of three older vessels in 1Q 2013

* Refinanced $375 million bank debt related to an ultra-deepwater drilling rig - total capital raised now exceeds $1.4 billion since October 2012

* Contracted four 8,700 TEU eco-design container newbuildings with delivery in 2014 and 2015

* Selected key financial data:

+-----------------------+-----------------------------+
|                       |     Three Months Ended      |
|                       |                             |
|                       | Mar 31, 2013   Dec 31, 2012 |
+-----------------------+-----------------------------+
| Charter revenues((1)) |        $153m          $168m |
|                       |                             |
| EBITDA((2))           |        $122m          $134m |
|                       |                             |
| Net income            |         $32m           $51m |
|                       |                             |
| Earnings per share    |        $0.38          $0.60 |
+-----------------------+-----------------------------+

Dividends and Results for the Quarter Ended March 31, 2013

The Board of Directors has declared a quarterly cash dividend of $0.39 per share. The dividend will be paid on or about June 28, 2013 to shareholders of record as of June 21, 2013. The ex-dividend date will be June 19, 2013.

The Company reported total U.S. GAAP operating revenues on a consolidated basis of $65.1 million, or $0.76 per share, in the first quarter of 2013. This number excludes $14.0 million of revenues classified as 'repayment of investments in finance lease', and also excludes $74.9 million of charter revenues earned by assets classified as 'investment in associate'.

The Company recorded a $18.0 million gain on sale of vessels in the quarter arising from the sale of three older vessels; a combination carrier, a Suezmax tanker and a non-double hull VLCC.

Reported net operating income pursuant to U.S. GAAP for the quarter was $43.8 million, or $0.51 per share, and reported net income was $32.4 million, or $0.38 per share.

Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS said in a comment: "We continue the renewal of the fleet and have now ordered four 8,700 TEU container vessels at historically low prices. The vessels will be built to high specifications at one of the leading shipyards in Korea and will include the latest in eco-design features.

Mr Hjertaker continued: "We see interesting investment opportunities also in our other core segments and expect to invest more capital in the near term with the ambition to build additional distribution capacity going forward."

The full report can be found in the link below.

May 30, 2013

The Board of Directors

Ship Finance International Limited

Hamilton, Bermuda

About Ship Finance

Ship Finance is a major ship owning company listed on the New York Stock Exchange (NYSE: SFL). Including newbuildings, the Company has a fleet of 69 vessels, including 24 crude oil tankers (VLCC and Suezmax), two chemical tankers, 12 drybulk carriers, 19 container vessels, including eight newbuildings, six offshore supply vessels, one jack-up drilling rig, one ultra-deepwater drillship, two ultra-deepwater semi-submersible drilling rigs and two car carriers. The fleet is one of the largest in the world and most of the vessels are employed on long-term charters.

More information can be found on the Company's website: www.shipfinance.org

Cautionary Statement Regarding Forward Looking Statements

This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Ship Finance management's examination of historical operating trends. Although Ship Finance believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this presentation include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.

First Quarter 2013 Results: http://hugin.info/134876/R/1705876/564385.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ship Finance International Limited via Thomson Reuters ONE

[HUG#1705876]

Contact Information

  • Questions can be directed to Ship Finance Management AS:

    Investor and Analyst Contact:

    Harald Gurvin
    Chief Financial Officer
    +47 23114009

    Magnus T. Valeberg
    Senior Vice President
    +47 23114012

    Media Contact:

    Ole B. Hjertaker
    Chief Executive Officer
    Ship Finance Management AS
    +47 23114011