SFL – Second Quarter 2004 Results

 

 

 

 

         A further 10 percentage points of Frontline’s shares in Ship Finance will be distributed to Frontline shareholders.

 

 

Ship Finance reports total operating revenues of $93.2 million, operating income of $59.2 million and net income of $62.2 million for the second quarter of 2004. Operating revenues include finance lease interest income and finance lease service revenues in addition to charter revenues for the period prior to the vessels commencing trading under the charters to Frontline. Operating revenues also include charter revenues for vessels trading under long term charters to third parties during the period and $5.7 million of profit share due from Frontline under the long-term charter arrangements.

 

The average daily time charter equivalents (“TCEs”) earned by Frontline in the spot and time charter period market by the Company’s VLCCs, Suezmax tankers, and Suezmax OBO carriers were $56,600, $37,100 and $27,000, respectively.

 

Ship operating expenses of $23.7 million for the second quarter primarily consist of the management fee payable to Frontline. In the first quarter of 2004 the Company entered into interest rates swaps with a total notional principal amount of $500 million and an average interest rate of 3.4 percent. In the second quarter other financial items includes a credit of $25.7 million of which $25.5 million is attributable to the mark to market valuations of these interest rate swaps.

 

Ship Finance reports net income of $106.3 million for the six months ended June 30, 2004. For this six month period the average daily time charter equivalents (“TCEs”) earned by Frontline in the spot and time charter period market by the Company’s VLCCs, Suezmax tankers, and Suezmax OBO carriers were $63,800, $47,200 and $26,600, respectively. 

 

As at June 30, 2004, the Company had total cash and cash equivalents of $40.0 million, of which $7.9 million is restricted. Cash provided by operating activities in the quarter was $27.1 million, net cash used in investing activities was $38.5 million and net cash used in financing activities was $86.1 million. The latter amount includes the repayment of $83.4 million to Frontline. At quarter end the Company had an amount due from Frontline of $55.3 million which has since been repaid.  The Company’s cash position as of August 19 is approximately $102.0 million. Total book equity at quarter end was $642.4 million.

 

The full report is enclosed on the following link: