Ship Finance International Limited (NYSE: SFL) – Earnings Release
Reports preliminary 1Q 2010 results and increased quarterly dividend of $0.33 per share
Hamilton, Bermuda, May 20, 2010. Ship Finance International Limited (“Ship Finance” or the “Company”) today announced its preliminary financial results for the quarter ended March 31, 2010.
Highlights
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Declared an increased quarterly dividend of $0.33 per share.
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Reported net income for the quarter of $57.0 million, or $0.72 per share. The result includes a $26.0 million gain related to the newbuilding Suezmax tanker Everbright and a negative $12.8 million mark to market of derivatives relating to interest rate swaps.
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Accrued profit share in the first quarter was $11.3 million, or $0.14 per share.
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In February 2010, the VLCC Front Vista was sold to a subsidiary of Frontline Ltd. (“Frontline”) for net sales proceeds of $58.5 million.
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In March 2010, the newbuilding Suezmax tanker Everbright was delivered from the shipyard and chartered out for five years.
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In March 2010, the Company refinanced a syndicated bank loan relating to 26 vessels on charter to Frontline. The new five-year facility was upsized from $675 million to $725 million due to very strong demand in the banking market.
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In April 2010, the single-hull VLCC Golden River was sold to an unrelated third party for a net sales price of approximately $12.6 million.
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Three Handysize dry bulk carriers under construction in China have already been chartered out for three years at attractive rates. Scheduled delivery is in 2011-2012.
Dividends and Results for the Quarter ended March 31, 2010
The Board of Directors has declared an increased quarterly cash dividend of $0.33 per share. The dividend will be paid on or about June 10, 2010 to shareholders of record as of June 2, 2010. The ex-dividend date will be May 28, 2010.
The profit share accrued in the first quarter was $11.3 million, or $0.14 per share, compared to $5.7 million, or $0.07 per share in the fourth quarter of 2009.
Under US GAAP, the 100% owned ultra-deepwater drilling units West Polaris, West Hercules and West Taurus and the Panamax dry bulk carrier Golden Shadow are accounted for as ‘investment in associate’. Consequently, only the aggregate ‘net income’ from these assets is recognized in the consolidated income statement of Ship Finance as ‘results in associate’.
The Company reported total net operating revenues of $82.6 million, or $1.04 per share, in the first quarter of 2010. This number excludes charter hire classified as ‘repayment of investments in finance lease’, and also excludes substantial charter revenues earned by the assets classified as ‘investment in associate’. Gross charter hire revenues, including these items, were $196.7 million or $2.49 per share.
Reported net operating income for the quarter was $78.9 million, or $1.00 per share, and reported net income was $57.0 million, or $0.72 per share.
For the complete report, please see the link below.
May 20, 2010
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Questions should be directed to:
Ole B. Hjertaker: Chief Executive Officer, Ship Finance Management AS
+47 23114011 / +47 90141243
Magnus T. Valeberg: Vice President, Ship Finance Management AS
+47 23114012 / +47 93440960