Ship Finance International Limited (NYSE: SFL) – Earnings Release
Reports third quarter 2008 results and increased quarterly dividend of $0.60 per share
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.
15-year bareboat charters to Seadrill. The drilling rigs were delivered to Ship Finance in November 2008.
Dividends and Results for the Quarter ended September 30, 2008
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
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