Ship Finance International Limited (NYSE: SFL) – Earnings Release
Reports preliminary 1Q 2015 results and increased quarterly dividend of $0.43 per share
Hamilton, Bermuda, May 29, 2015. Ship Finance International Limited (“Ship Finance” or the “Company”) today announced its preliminary financial results for the quarter ended March 31, 2015.
Increased first quarter dividend of $0.43 per share
Delivery of remaining 8,700 TEU container vessels in combination with long-term charters
Acquisition of eight Capesize dry-bulk carriers in combination with charters to Golden Ocean
Revised terms on Frontline charters in exchange for 28% ownership in Frontline
Selected key financial data:
|Three Months Ended|
|Mar 31, 2015||Dec 31, 2014|
|Net income||$ 33m||$ 25m|
|Earnings per share||$0.35||$0.27|
Dividends and Results for the Quarter Ended March 31, 2015
The Board of Directors has declared an increased quarterly cash dividend of $0.43 per share. The dividend will be paid on or about June 30, 2015 to shareholders on record as of June 15, 2015, and the ex-dividend date at the New York Stock Exchange will be June 11, 2015. This will be the 45th consecutive quarterly dividend declared by the Company.
The Company reported total U.S. GAAP operating revenues on a consolidated basis of $90.1 million, or $0.96 per share, in the first quarter of 2015. This number excludes $9.6 million of revenues classified as ‘repayment of investments in finance lease’, and $53.2 million of charter revenues earned by 100% owned assets classified as ‘investment in associate’.
The cash sweep agreement with Frontline had a positive effect of $9.9 million, or $0.11 per share in the first quarter. For the full year 2014 a total cash sweep of $32.7 million was recorded and paid to the Company in March 2015. There was also a $0.2 million profit share in the first quarter relating to some of our dry-bulk vessels.
Reported net operating income pursuant to U.S. GAAP for the quarter was $42.2 million, or $0.45 per share, and reported net income was $33.1 million, or $0.35 per share. This is after approximately $9.5 million, or $0.10 per share in negative non-cash charges, which includes a negative mark-to-market of $6.6 million related to interest rate hedging instruments and amortization of deferred charges of $2.9 million in the first quarter of 2015.
Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS said in a comment: “We continue expanding our asset base and charter backlog across our core business segments, and enjoy the benefits of a strong tanker market. The deal announced earlier today with Frontline could be very interesting for us, both from an earnings perspective with the new increased profit split starting from a lower level, and also with respect to the ownership position in Frontline. We raise our dividend again and have significant capital available for new accretive acquisitions.”
Questions can be directed to Ship Finance Management AS:
Investor and Analyst Contact:
Harald Gurvin, Chief Financial Officer: +47 23114009
Andre Reppen, Senior Vice President: +47 23114055
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 recent acquisitions, the Company will have a fleet of 72 vessels, including 19 crude oil tankers (VLCC and Suezmax), two chemical tankers, 22 dry bulk carriers (including 8 acquisitions), 17 container vessels, two car carriers, six offshore supply vessels, two jack-up drilling rigs and two ultra-deepwater semi-submersible drilling rigs. 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.