HAMILTON, BERMUDA--(Marketwire - Dec 11, 2012) - Press release from Ship Finance
International Limited, December 11, 2012
Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the
today announced that it has agreed with a subsidiary of Frontline Ltd.
("Frontline") to terminate the charter parties for the two remaining
combination carriers Front Viewer and Front Guider.
Frontline will make a net settlement payment to Ship Finance of
$23.5 million as compensation for the early termination of the charters and
estimated loss of future cash sweep relating to the two vessels. The two
were previously employed on profitable sub-charters which have now been
terminated early by Frontline against a cash settlement.
The Company has agreed to sell Front Viewer to an unrelated third party
expected delivery to the new owner in late December 2012. Net proceeds from
sale is estimated to be approximately $9.1 million. The last combination
carrier, Front Guider, is expected to be sold in the first quarter of 2013,
will remain on charter to Frontline until a sale is concluded.
The sale of older vessels and termination of charters to Frontline is a
the Company's strategy to renew and diversify the fleet and the net cash
proceeds after repayment of debt is expected to be reinvested in new
Following the sale of the two vessels, the number of vessels on charter to
Frontline is reduced to 23 vessels, including 17 VLCCs and six Suezmax
The Board of Directors
Ship Finance International Limited
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 66
vessels, including 25 crude oil tankers (VLCC and Suezmax), two chemical
tankers, 12 drybulk carriers including one newbuilding, 15 container
including four newbuildings, six offshore supply vessels, one jack-up
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
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
based upon various assumptions, many of which are based, in turn, upon
assumptions, including Ship Finance management's examination of historical
operating trends. Although Ship Finance believes that these assumptions
reasonable when made, because assumptions are inherently subject to
uncertainties and contingencies which are difficult or impossible to
are beyond its control, Ship Finance cannot give assurance that it will
or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results
differ materially from those discussed in this presentation include the
of world economies and currencies, general market conditions including
fluctuations in charter hire rates and vessel values, changes in demand in
tanker market as a result of changes in OPEC's petroleum production levels
worldwide oil consumption and storage, changes in the Company's operating
expenses including bunker prices, dry-docking and insurance costs, changes
governmental rules and regulations or actions taken by regulatory
potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes
to accidents or political events, and other important factors described
time to time in the reports filed by the Company with the United States
Securities and Exchange Commission.
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