Press release from Ship Finance International Limited, September 13, 2011
Ship Finance International Limited (NYSE:SFL) (“Ship Finance” or the “Company”) announces that it has agreed to sell its three remaining single hull vessels to an unrelated third party for a total net sales price of approximately $72.7 million. Concurrently with the sale, Ship Finance has agreed to terminate the corresponding charters to Frontline Ltd. (“Frontline”).
The estimated delivery of Titan Orion, Titan Aries, and Ticen Ocean to the new owner will be in 1Q 2012, 4Q 2012 and 3Q 2013, respectively. Frontline will receive an aggregate compensation of approximately $26.2 million for the termination of the current charters, or approximately $8.7 million per vessel on average.
As a result of the sale, Ship Finance expects to record an average book gain of approximately $3.2 million per vessel at the time of delivery to the new owner.
The disposal of older vessels is in line with the Company’s strategy of maintaining a young and modern fleet and the liquidity that will be released in connection with the sale is expected to be reinvested in new projects.
September 13, 2011
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
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 28 crude oil tankers (VLCC and Suezmax), two chemical tankers, six oil/bulk/ore vessels, 12 drybulk carriers including seven newbuildings, 15 container vessels, six offshore supply vessels, one jack-up drilling rig, one ultra-deepwater drillship 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.