SOURCE: Ship Finance International Limited

February 11, 2009 09:35 ET

SFL - Termination of agreement to acquire two Capesize dry-bulk vessels

HAMILTON, NORWAY--(Marketwire - February 11, 2009) -

Press release from Ship Finance International Limited, February 11, 2009

Ship Finance International Limited (NYSE: SFL) ("Ship Finance" or the "Company"), today announces the termination of an agreement to acquire two newbuilding Capesize dry-bulk vessels from Golden Ocean Group Limited ("Golden Ocean").

The transaction was announced in February 2007, and the plan was to acquire the vessels immediately after delivery from the shipyard in Korea. Due to delayed delivery and anticipated non-compliance with the terms and conditions for the deal, Ship Finance and Golden Ocean have now agreed to terminate the agreement.

The investment by Ship Finance was originally planned to be approximately $80 million per vessel, or approximately $160 million in total. Net of $130 million in committed financing, the equity investment was estimated to approximately $30 million in total. As the investment was payable on delivery of the vessels, Ship Finance has not paid in any of the capital.

February 11, 2009
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 68 vessels, including 33 crude oil tankers (VLCC and Suezmax), two chemical tankers, eight oil/bulk/ore vessels, one dry-bulk carrier, 13 container vessels, six offshore supply vessels, two jack-up drilling rigs and three ultra-deepwater drilling units. 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:

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 world wide 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.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Copyright © Hugin AS 2009. All rights reserved.

Contact Information

  • Contact Persons:
    Lars Solbakken:
    Chief Executive Officer
    Ship Finance Management AS
    +47 2311 4006 / +47 9119 8844

    Ole B. Hjertaker:
    Chief Financial Officer
    Ship Finance Management AS
    +47 2311 4011 / +47 9014 1243