Ship Finance International Limited
Preliminary Fourth Quarter and Financial Year 2005 Results
- Ship Finance reports a net income of $83.1 million and earnings per share of $1.11 for the fourth quarter of 2005.
- Ship Finance reports a net income of $209.5 million and earnings per share of $2.84 for the financial year 2005.
- Ship Finance announces an ordinary cash dividend of $0.45 per share, and a supplementary extraordinary dividend of $0.05 per share.
Ship Finance International Limited (“Ship Finance” or the “Company”) reports total operating revenues of $143.2 million, operating income of $107.1 million and net income of $83.1 million for the fourth quarter of 2005. Earnings per share for the quarter were $1.11. Currently, all but seven of the Company’s vessels are trading under long term charters to Frontline Ltd (“Frontline”). Two of these vessels, the Company’s first containerships, are on a medium and short term time charter to unrelated third parties.
In the fourth quarter, operating revenues include $51.8 million of accrued profit share due from Frontline under long term charter agreements. The average daily time charter equivalents (“TCEs”) earned by Frontline in the fourth quarter in the spot and time charter period market from the Company’s VLCCs, Suezmax tankers, and Suezmax OBO carriers were $66,300, $44,900 and $32,900, respectively.
As at December 31, 2005, the Company had interest rate swaps with a total notional principal of $568.3 million and an average interest rate of 3.7 percent. In the fourth quarter other financial items include a gain of $2.9 million that is attributable to the mark to market valuations of interest rate swaps compared with a gain of $8.1 million in the third quarter.
Ship Finance announces net income of $209.5 million for the year ended December 31, 2005 equivalent to earnings per share of $2.84. Of the total net income, $88.1 million relates to the profit share with Frontline. The average daily time charter equivalents (“TCEs”) earned by Frontline in the spot and time charter period market from the Company’s VLCCs, Suezmax tankers, and Suezmax OBO carriers were $58,200, $40,500 and $35,000, respectively.
As at December 31, 2005, the Company had total cash and cash equivalents of $34.4 million, of which $1.6 million is restricted. Cash provided by operating activities in the quarter was $37.4 million, net cash provided by investing activities was $24.0 million and net cash used in financing activities was $97.5 million. In November of 2005 the bareboat charterer of the VLCC Navix Astral exercised an option to purchase the vessel for approximately $40.5 million. The vessel was delivered to its new owner in January of 2006, resulting in a loss on sale. At December 31, 2005 a $1.8 million loss on impairment was accrued and applied against the vessel’s book value. In January 2006 the Company acquired the VLCC Front Tobago from Frontline for consideration of $40.0 million. Effective January 2006 this vessel has replaced the Navix Astral and will fulfil the remainder of the Navix Astral time charter with Frontline from the delivery of the vessel to its new owner until the charter termination date in January 2014.
The full report is available in the attachment below: