Ship Finance International Limited (NYSE: SFL) – Earnings Release
Reports first quarter 2008 results and increased quarterly dividend of $0.56 per share
Ship Finance International Limited (“Ship Finance” or the “Company”) announces the financial results for the quarter ended March 31, 2008.
Dividends and Results for the Quarter ended March 31, 2008
The Board of Directors has declared an increased cash dividend in respect of the first quarter of $0.56 per share. The dividend will be paid on or about June 30, 2008 to shareholders of record as of June 17, 2008. The ex-dividend date will be June 13, 2008.
The Company reported total operating revenues of $121.9 million, or $1.68 per share, in the first quarter. Net operating income for the quarter was $94.7 million, or $1.30 per share, and net income was $ 59.8 million, or $0.82 per share.
The profit share accumulated in the first quarter was $33.7 million, or $0.46 per share, up from $16.1 million, or $0.22 per share, in the fourth quarter. The substantial profit share accumulated in the quarter was due to a very strong spot charter market for crude oil tankers, and the market has remained firm so far in the second quarter.
There was a $2.2 million, or $0.03 per share, non-cash negative adjustment in mark-to-market of swaps in the first quarter, compared to a $5.5 million, or $0.08 per share, loss in the previous quarter.
The Company’s fixed-rate charter hire was $136.3 million, or $1.87 per share, in the quarter. Net of operating expenses and general and administrative expenses in the first quarter, the contribution from the fixed-rate charters was $108.3 million, or $1.49 per share. These numbers are excluding the profit share contribution.
As the majority of the Company’s assets are accounted for as finance leases, a significant portion of the charter hire is not included in the total operating revenues in the Company’s Income Statement. These amounts are classified as ‘repayment of investment in finance leases’, and are included in the Statement of Cashflows. For the first quarter, this amounted to $48.1 million or $0.66 per share.
May 22, 2008
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