Ship Finance International Limited (NYSE: SFL) – Earnings Release
Reports second quarter 2008 results and increased quarterly dividend to $0.58 per share
Ship Finance International Limited (“Ship Finance” or the “Company”) announces the financial results for the quarter ended June 30, 2008.
Dividends and Results for the Quarter ended June 30, 2008
The Board of Directors has declared an increased quarterly cash dividend of $0.58 per share. The dividend will be paid on or about September 15, 2008 to shareholders of record as of September 2, 2008. The ex-dividend date will be August 28, 2008.
The Company reported total operating revenues of $120.9 million, or $1.66 per share, in the second quarter. Net operating income for the quarter was $96.8 million, or $1.33 per share, and net income was $71.3 million, or $0.98 per share.
As the majority of the Company’s assets are accounted for as finance leases, a significant portion of the charter hire is classified as ‘Repayment of investment in finance leases’ and is deducted from the revenues in the Company’s Income Statement. For the second quarter, this amounted to $71.1 million or $0.98 per share, including an extraordinary upfront payment of $21.6 mill. related to the hire/purchase arrangement for Front Sabang.
The profit share accumulated in the second quarter was $33.1 million, or $0.46 per share, compared to $33.7 million, or $0.46 per share, in the first quarter. The substantial profit share accumulated in the quarter was due to a very strong spot charter market for crude oil tankers. The market continued to be strong into the third quarter, but has softened in August.
There was a $3.2 million, or $0.04 per share, positive adjustment in mark-to-market of swaps in the second quarter, compared to a $2.2 million, or $0.03 per share, negative adjustment in the previous quarter.
August 21, 2008
The Board of Directors
Ship Finance International Limited
Questions should be directed to:
Lars Solbakken: Chief Executive Officer, Ship Finance Management AS
+47 23114006 / +47 91198844
Ole B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47 23114011 / +47 90141243