SOURCE: Ship Finance International Limited

February 26, 2010 08:33 ET

SFL - Fourth Quarter 2009 Results

HAMILTON, BERMUDA--(Marketwire - February 26, 2010) -


Ship Finance International Limited (NYSE: SFL) - Earnings Release

Reports preliminary 4Q 2009 results and quarterly dividend of $0.30 per share

Hamilton, Bermuda, February 26, 2010. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended December 31, 2009.

Highlights

  * Declared a quarterly dividend of $0.30 per share.
  * Reported net income for the quarter of $62.4 million, or $0.80 per
    share. The result includes a $24.7 million cash gain related to the
    newbuilding Suezmax Glorycrown.
  * Accrued profit share in the fourth quarter was $5.7 million, or $0.07
    per share. The total accrued profit share for 2009 was $33.0 million
    and is payable in March 2010.
  * In November 2009, the first newbuilding Suezmax tanker was delivered
    from the shipyard and was chartered out for five years with a purchase
    obligation at the end. The transaction also included a $40.5 million
    upfront cash payment by the charterer.
  * In November 2009, the charterer of the single-hull VLCC Front Vanadis
    exercised a pre-agreed purchase option of $11.7 million.
  * In February 2010, the VLCC Front Vista was sold to a subsidiary of
    Frontline Ltd. ("Frontline") for net sales proceeds of $58.5 million.
  * Ship Finance has converted newbuilding contracts for container vessels
    into Handysize dry bulk vessels with delivery in 2011 and 2012.
  * The Company is in the process of refinancing a syndicated bank loan
    relating to 26 vessels on charter to Frontline. The new five-year
    $675 million facility is already significantly oversubscribed, and we
    expect the documentation to be finalized in the first quarter.

Dividends and Results for the Quarter ended December 31, 2009

The Board of Directors has declared a quarterly cash dividend of $0.30 per share. The dividend will be paid on or about 30 March, 2010 to shareholders of record as of 19 March, 2010. The ex-dividend date will be 17 March, 2010.

The profit share accrued in the fourth quarter was $5.7 million, or $0.07 per share, compared to $4.8 million, or $0.06 per share in the third quarter of 2009. The total profit share accrued in 2009 was $33.0 million, and will be payable in March 2010.

Under US GAAP, the 100% owned ultra-deepwater drilling units West Polaris, West Hercules and West Taurus and the Panamax dry bulk vessel Golden Shadow are accounted for as 'investment in associate'. Consequently, only the aggregate 'net income' from these vessel-owning subsidiaries is recognized in the consolidated income statement of Ship Finance as 'results in associate'.

The Company reported total net operating revenues of $80.1 million, or $1.03 per share, in the fourth quarter of 2009. This number excludes charter hire classified as 'repayment of investments in finance lease', and also excludes substantial charter revenues earned by the three 100% owned subsidiaries classified as 'investment in associate'. Gross charter hire revenues, including these items, were $202.8 million or $2.60 per share.

Reported net operating income for the quarter was $72.2 million, or $0.92 per share, and reported net income was $62.4 million, or $0.80 per share.

For the complete report please see the link below.

February 26, 2010
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda

Questions should be directed to:

Ole B. Hjertaker: Chief Executive Officer, Ship Finance Management AS
+47 23114011 / +47 90141243

Magnus T. Valeberg: Vice President, Ship Finance Management AS
+47 23114012 / +47 93440960

[HUG#1389163]

Fourth quarter 2009 results: http://hugin.info/134876/R/1389163/347367.pdf

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