Ship Finance International Limited (NYSE: SFL) – Earnings Release
Reports preliminary 1Q 2014 results and increased quarterly dividend of $0.41 per share
Hamilton, Bermuda, May 27, 2014. Ship Finance International Limited (“Ship Finance” or the “Company”) today announced its preliminary financial results for the quarter ended March 31, 2014.
- Increased first quarter dividend of $0.41 per share
- $11.7 million accumulated in cash sweep from Frontline
- Delivery of the drilling rig West Linus and commencement of long-term charter
- Acquisition of nine container vessels in combination with long-term charters
- Acquisition of two 82,000 dwt dry-bulk carriers in combination with long-term charters
- Secured long term contracts for four 8,700 TEU container vessels under construction
- Raised approximately $150 million of senior unsecured bonds
- Received $15 million in partial settlement for early termination of charters and unpaid charter hire
- Selected key financial data:
|Three Months Ended|
|Mar 31, 2014||Dec 31, 2013|
|Net income||$ 41m||$ 18m|
|Earnings per share||$0.44||$0.20|
Dividends and Results for the Quarter Ended March 31, 2014
The Board of Directors has declared an increased quarterly cash dividend of $0.41 per share, and Ship Finance has now declared dividends for 41 consecutive quarters. The dividend will be paid on or about June 30, 2014 to shareholders of record as of June 12, 2014. The ex-dividend date will be June 10, 2014.
The Company reported total U.S. GAAP operating revenues on a consolidated basis of $82.7 million, or $0.89 per share, in the first quarter of 2014. This number excludes $11.2 million of revenues classified as ‘repayment of investments in finance lease’, and also excludes $67.1 million of charter revenues earned by assets classified as ‘investment in associate’.
The cash sweep agreement with Frontline had a positive effect of $11.7 million, or $0.13 per share in the quarter. The cash sweep for the full year 2014 will be payable in March 2015. There was also a $0.5 million profit share in the quarter relating to four Handysize dry-bulk carriers.
Reported net operating income pursuant to U.S. GAAP for the quarter was $46.6 million, or $0.50 per share, and reported net income was $40.7 million, or $0.44 per share. This includes approximately $1.0 million of non-cash expense of theoretical equity cost relating to one of our convertible bonds and $10.2 million book gain related to early termination of charters.
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
Ole B. Hjertaker, Chief Executive Officer: +47 23114011
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 73 vessels, including 22 crude oil tankers (VLCC and Suezmax), two chemical tankers, 14 drybulk carriers (including two acquisitions), 24 container vessels (including four newbuildings), two car carriers, six offshore supply vessels, two jack-up drilling rigs, 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.