Ship Finance International Limited
Preliminary Q2 2019 results and quarterly cash dividend of $0.35 per share
Hamilton, Bermuda, August 20, 2019. Ship Finance International Limited (“SFL” or the “Company”) today announced its preliminary financial results for the quarter ended June 30, 2019.
- 62nd consecutive quarterly dividend declared, $0.35 per share
- Received charter hire of $152 million in the quarter from our vessels and rigs
- Adjusted EBITDA of $91 million from consolidated subsidiaries, and $30 from unconsolidated subsidiaries
- Reported net income of $28.1 million, or $0.26 per share for the second quarter
- Issued NOK800 million (approximately $90 million) senior unsecured bonds
- Added approximately $200 million to the backlog of contracted future charter hire
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:
“Over years, SFL has solidified its position in the maritime industry with a diversified portfolio of assets supported by a strong technical and commercial operating platform. This gives us the ability to offer a wide range of services to our customers, from structured financing to full service time charters.
We are careful and selective in our investments, and with our portfolio approach we have been able to time our investments in each segment through the market cycles. Our consistent ability to access attractively priced capital has allowed us to continuously renew our fleet and pursue profitable growth opportunities. As a result, $2.2 billion has been returned to shareholders through dividends since 2004, and we have a significant charter backlog supporting future distribution capacity.”
The Board of Directors has declared a quarterly cash dividend of $0.35 per share. The dividend will be paid on or around September 23, to shareholders on record as of September 12, and the ex-dividend date on the New York Stock Exchange will be September 11, 2019.
Results for the Quarter ended June 30, 2019
The Company reported total U.S. GAAP operating revenues on a consolidated basis of $110.9 million in the second quarter, down from $116.5 million in the previous quarter. This figure is lower than actual earned charter hire as it excludes $10.4 million of charter hire accounted for as ‘repayment of investment in finance leases’ that is not reflected in the income statement. In addition, our 100% owned subsidiaries which are classified as ‘investment in associates’ for accounting purposes, received charter hire of $30.1 million for the quarter which is also not included in the U.S GAAP operating revenue number above.
SFL recorded a $16.8 million gain on mark-to-market movement on its equity securities investments and losses of $4.4 million related to mark-to-market movement on hedging derivatives and $2.0 million in amortization of deferred charges, all of which are non-cash items for the quarter. In addition, the Company recorded a $8.2 million non-cash impairment on a note issued by a subsidiary of Solstad Offshore in conjunction with the sale of a vessel and termination of charter in 2016.
Reported net operating income pursuant to U.S. GAAP for the quarter was $46.1 million, or $0.43 per share, and reported net income was $28.1 million, or $0.26 per share.
August 20, 2019
The Board of Directors
Ship Finance International Limited
The full report can be found by following this link: and at the Company’s website www.sflcorp.com.
Questions can be directed to SFL Management AS:
Investor and Analyst Contact
Aksel C. Olesen, Chief Financial Officer: +47 23114036
André Reppen, Senior Vice President: +47 23114055
Ole B. Hjertaker, Chief Executive Officer: +47 23114011
Ship Finance International Limited (NYSE: SFL) has a unique track record in the maritime industry, being consistently profitable and paying dividends every quarter since 2004. The Company’s fleet of more than 80 vessels is split between tankers, bulkers, container vessels and offshore assets, and SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found at the Company’s website www.sflcorp.com.
Forward Looking Statements
This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL 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, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which we operate, changes in demand resulting from changes in OPEC’s petroleum production levels and worldwide oil consumption and storage, developments regarding the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and more restrictive import and export controls, changes in our operating expenses, including bunker prices, dry docking and insurance costs, performance of our charterers and other counterparties with whom we deal, timely delivery of vessels under construction within the contracted price, 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.