Ship Finance International Limited (NYSE: SFL)
Reports Results for First Quarter 2007 and Declares Quarterly Dividend
Ship Finance International Limited (“Ship Finance” or the “Company”) announces today the financial results for the first quarter ended March 31, 2007.
Dividends and Results for the Quarter ended March 31, 2007
The Board of Directors has reviewed the long term prospects for the Company including its significant fixed charter backlog, growth prospects and strong financial position, and has decided to increase the dividend payment for the quarter to $0.55 per share. The dividend will be paid on or about June 21, 2007 to shareholders of record as of June 8, 2007. The ex-dividend date is June 6, 2007.
The Company reported total operating revenues of $86.5 million, net operating income of $83.0 million and net income of $55.3 million for the first quarter of 2007. Earnings per share for the quarter were $0.76. This includes a profit of $30.8 million relating to the sale of the six single hull Suezmax tankers.
For the first quarter of 2007, the Company estimates that a total of $15.2 million or $0.21 per share has accumulated in profit share from Frontline Ltd. (“Frontline”). Based on U.S. generally accepted accounting principles (“US GAAP”), this has not been accounted for in the period and will be recognized later in the year provided the vessels on charter to Frontline continue to earn in excess of the minimum fixed charter rates.
As most of the Company’s assets are accounted for based on lease accounting, a significant portion of the charter hire received does not appear in the income statement as described in Note 2 to the Income Statement. These amounts are classified as ‘repayment of investment in finance leases’, and are included in the statement of cashflows only. For the first quarter, this amounted to $36.3 million or $0.50 per share.
Net cash provided by operating activities in the first quarter was $112.1 million, net cash provided by investing activities was $6.4 million and net cash used in financing activities was $36.6 million.
As of March 31, 2007, the Company had total cash and cash equivalents of $146.4 million and restricted cash of $13.5 million. In addition, $0.4 million in cash and cash equivalents was held in a 100% owned subsidiary accounted for under the equity method. At the end of the quarter, the Company had available undrawn credit lines in the amount of $219.7 million.
For the complete report please see the link below.
May 30, 2007
The Board of Directors
Ship Finance International Limited
Questions should be directed to:
Lars Solbakken: Chief Executive Officer, Ship Finance Management AS
+47 23114006 / +47 91198844
Ole B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47 23114011 / +47 90141243