Press release, June 14, 2007
Ship Finance International Limited (NYSE:SFL) (“Ship Finance” or the “Company”), today announced that the Company has signed shipbuilding contracts for a total of five container vessels with scheduled delivery in 2010.
Two 2,500 TEU container vessels will be built at Jiangsu Yangzijiang Shipbuilding Co. Ltd., China and three 1,700 TEU container vessels will be built at Guangzhou Wenchong Shipyard Co. Ltd., China. The aggregate construction cost for the vessels will be approximately $190 million, and will be paid according to the work in progress schedule as specified in the shipbuilding contracts.
Including newbuildings, the Companys’s container fleet will then consist of 12 vessels, of a total fleet of 65 vessels. The new vessels will be marketed for medium to long-term contracts, consistent with our strategy.
Lars Solbakken, Chief Executive Officer in Ship Finance Management AS, said in a comment: “We are very pleased with these newbuilding contracts, where a combination of very attractive construction cost for the vessels and a positive outlook for the container market is expected to generate premium returns for Ship Finance and a higher long term dividend capacity when the vessels commence trading.
The investments in the newbuildings will initially be financed through existing credit lines and will thereby not restrict the dividend capacity until delivery. These investments verify the Company’s strategy to grow and diversify the asset base, and we anticipate further growth opportunities in the container segment.”
June 14, 2007
The Board of Directors
Ship Finance International Limited
Lars Solbakken: Chief Executive Officer, Ship Finance Management AS
+47 2311 4006 / +47 9119 8844
Ole B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47 2311 4011 / +47 9014 1243
About Ship Finance
Ship Finance is a major shipowning company listed on the New York Stock Exchange (NYSE: SFL). Including newbuildings, Ship Finance owns a fleet consisting of 65 vessels, including 37 crude oil tankers (VLCC and Suezmax), 8 oil/bulk/ore vessels, 12 container vessels, 3 dry bulk carriers, 2 jack-up drilling rigs and 3 seismic vessels. The fleet is one of the largest in the world with a total cargo capacity of more than 11 million dwt. and most of the vessels are employed on medium or long term charters.
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.