Press release from Ship Finance International Limited, February 5, 2010
Ship Finance International Limited (NYSE:SFL) (“Ship Finance” or the “Company”), today announced that it has sold the 1998-built VLCC Front Vista to a subsidiary of Frontline Ltd. (“Frontline”) for total sales proceeds of $58.5 million.
Frontline has concurrently agreed to sell the vessel to an undisclosed third party with settlement by way of installments. This transaction is linked to a 10-year time charter to a state-owned oil company.
Ship Finance will receive net proceeds of approximately $22.1 million after prepayment of associated debt. The sale is expected to result in a book gain on sale of assets of approximately $1.8 million.
February 5, 2010
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Contact Persons:
Ole B. Hjertaker: Chief Executive Officer, Ship Finance Management AS
+47 2311 4011 / +47 9014 1243
Magnus T. Valeberg: Vice President, Ship Finance Management AS
+47 2311 4012 / +47 9344 0960
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 66 vessels, including 32 crude oil tankers (VLCC and Suezmax), two chemical tankers, eight oil/bulk/ore vessels, one dry-bulk carrier, 13 container vessels, six offshore supply vessels, one jack-up drilling rig and three ultra-deepwater drilling units. The fleet is one of the largest in the world and most of the vessels are employed on long-term charters. The Company has declared a cash dividend for 23 consecutive quarters.
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 world wide 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.