Ship Finance International Limited (NYSE: SFL) – Earnings Release
Reports preliminary 2Q 2010 results and increased quarterly dividend of $0.35 per share
Hamilton, Bermuda, August 26, 2010. Ship Finance International Limited (“Ship Finance” or the “Company”) today announced its preliminary financial results for the quarter ended June 30, 2010.
Highlights
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The Board of Directors declared an increased quarterly dividend of $0.35 per share. This is the second dividend increase in 2010 and the Company has now paid dividends the last 26 consecutive quarters.
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Reported net income for the quarter was $43.6 million, or $0.55 per share.
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Accrued profit share in the second quarter was $11.4 million, or $0.14 per share. Total accrued profit share for the first half of 2010 is $22.7 million.
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We have agreed to acquire three 57,000dwt Supramax dry bulk carries for a total investment of $100.7 million. The vessels have been chartered to an Asia-based logistics company on long-term time charters at approximately $17,000 per day, adding approximately $160 million to our fixed-rate charter backlog.
Dividends and Results for the Quarter ended June 30, 2010
The Board of Directors has declared an increased quarterly cash dividend of $0.35 per share. The dividend will be paid on or about September 30, 2010 to shareholders of record as of September 10, 2010. The ex-dividend date will be September 8, 2010.
The profit share accrued in the second quarter was $11.4 million, or $0.14 per share, compared to $11.3 million, or $0.14 per share in the first quarter of 2010. The accrued profit share in the quarter was on the back of strong revenues in the tanker sector in the second quarter.
Under US GAAP, the ultra-deepwater drilling units West Polaris, West Hercules and West Taurus and the Panamax dry bulk carrier Golden Shadow are accounted for as ‘investment in associate’. Consequently, only the aggregate ‘net income’ from these assets is recognized in the consolidated income statement of Ship Finance as ‘results in associate’.
The Company reported total net operating revenues of $80.8 million, or $1.02 per share, in the second quarter of 2010. This number excludes charter hire classified as ‘repayment of investments in finance lease’, and also excludes substantial charter revenues earned by the assets classified as ‘investment in associate’.
Reported net operating income for the quarter was $50.1 million, or $0.63 per share, and reported net income was $43.6 million, or $0.55 per share.
August 26, 2010
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Questions should be directed to:
Ole B. Hjertaker: Chief Executive Officer, Ship Finance Management AS
+47 23114011 / +47 90141243
Magnus T. Valeberg: Vice President, Ship Finance Management AS
+47 23114012 / +47 93440960