SFL – Third Quarter 2008 Results

 

 

Hamilton, Bermuda, November 28, 2008.  Ship Finance International Limited (“Ship Finance” or the “Company”) today announced its financial results for the quarter ended September 30, 2008.

 

 

Declared an increased quarterly cash dividend of $0.60 per share. The Company has now declared stable or increasing dividends for 19 consecutive quarters.

Reported net income for the quarter of $47.4 million, or $0.65 per share, including profit share of $28.5 million, or $0.39 per share, and a $10.4 million, or $0.14 per share, non-cash negative adjustment in mark-to-market of swaps.

The ultra-deepwater drillship West Polaris was delivered in July 2008 and commenced its 15-year bareboat charter to Seadrill Limited (“Seadrill”).

Announced the sale of two newbuilding Suezmax tankers for a record $111 million per vessel. The transaction is expected to generate a book profit of approximately $68 million, or $34 million per vessel, to be recognized at delivery of the vessels in 2009.

Announced the $1.7 billion acquisition of two ultra-deepwater drilling rigs in combination with
15-year bareboat charters to Seadrill. The drilling rigs were delivered to Ship Finance in November 2008.

The second of two 17,000 dwt chemical tanker newbuildings was delivered in October 2008 and commenced its 10-year bareboat charter to Bryggen Shipping & Trading AS (“Bryggen”).

 

 

The Board of Directors has declared a quarterly cash dividend of $0.60 per share. The dividend will be paid on or about January 7, 2009 to shareholders of record as of December 23, 2008. The ex-dividend date will be December 19, 2008.

 

The Company reported total operating revenues of $114.3 million, or $1.57 per share, in the third quarter. Net operating income for the quarter was $80.3 million, or $1.10 per share, and net income was $47.4 million, or $0.65 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 third quarter, this amounted to $46.6 million or $0.64 per share.

 

Under US GAAP, the drillship West Polaris and the Panamax dry bulk vessel Golden Shadow are accounted for as investment in associates. Consequently, the ‘net income’ from these 100% owned vessel owning subsidiaries are recognized in the consolidated income statement of Ship Finance as ‘results in associate’.

 

The profit share accrued in the third quarter was $28.5 million, or $0.39 per share, compared to $33.1 million, or $0.46 per share, in the second quarter.

 

There was a $10.4 million, or $0.14 per share, negative adjustment in mark-to-market of swaps in the third quarter, compared to a $3.2 million, or $0.04 per share, positive adjustment in the second quarter.

 

 

For the complete report please see the link below.

 

 

November 28, 2008

The Board of Directors

Ship Finance International Limited

Hamilton, Bermuda

 

 

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