Ship Finance International Limited

August 28, 2013 09:06 ET

SFL - Second Quarter 2013 Results

HAMILTON, BERMUDA--(Marketwired - Aug 28, 2013) -



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

Reports preliminary 2Q 2013 results and quarterly dividend of $0.39 per share

Hamilton, Bermuda, August 28, 2013. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended June 30, 2013.

Highlights

  * Declares second quarter dividend of $0.39 per share
  * Contracted four 8,700 TEU container newbuildings in the quarter with
delivery in 2014 and 2015
  * Acquisition of harsh-environment jack-up drilling rig in combination
with long-term charter
  * Secured bank financing of $475 million for the new rig acquisition -
more than $2 billion raised in the capital markets during the last 12
months
  * Raised $129 million in an equity offering in June
  * Selected key financial data:

+-----------------------+-----------------------------+
|                       |     Three Months Ended      |
|                       |                             |
|                       | Jun 30, 2013   Mar 31, 2013 |
+-----------------------+-----------------------------+
| Charter revenues((1)) |        $154m          $153m |
|                       |                             |
| EBITDA((2))           |        $122m          $122m |
|                       |                             |
| Net income            |         $25m           $32m |
|                       |                             |
| Earnings per share    |        $0.29          $0.38 |
+-----------------------+-----------------------------+

Dividends and Results for the Quarter Ended June 30, 2013

The Board of Directors has declared a quarterly cash dividend of $0.39 per share, and Ship Finance has now declared dividends for 38 consecutive quarters. The dividend will be paid on or about September 27, 2013 to shareholders of record as of September 12, 2013. The ex-dividend date will be September 10, 2013.

The Company reported total U.S. GAAP operating revenues on a consolidated basis of $66.0 million, or $0.77 per share, in the second quarter of 2013. This number excludes $12.9 million of revenues classified as 'repayment of investments in finance lease', and also excludes $76.6 million of charter revenues earned by assets classified as 'investment in associate'.

Reported net operating income pursuant to U.S. GAAP for the quarter was $25.8 million, or $0.30 per share, and reported net income was $25.1 million, or $0.29 per share.

Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS said in a comment: "We continue to expand our presence in the offshore market with the acquisition of a new harsh-environment jack-up drilling rig, adding more than $800 million to our charter backlog. We have also ordered four 8,700 TEU vessels with the latest eco-design features providing better operational performance compared to existing ships of similar size".

Mr. Hjertaker continued: "With new investments totaling nearly $1 billion in the quarter, our focus is to continue building the Company's long-term distribution capacity. The equity raised in June was immediately invested in the new accretive drilling rig project and we are well positioned for further growth within our core segments".

The full report can be found in the link below.



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 70 vessels, including 24 crude oil tankers (VLCC and Suezmax), two chemical tankers, 12 drybulk carriers, 19 container vessels (including eight newbuildings), two car carriers, six offshore supply vessels, two jack-up drilling rigs (including one newbuilding), two ultra-deepwater semi- submersible drilling rigs and one ultra-deepwater drillship. 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.


Second Quarter 2013 Results:

http://hugin.info/134876/R/1725370/575353.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#1725370]

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