Ship Finance International Limited (NYSE: SFL) – Earnings Release
Hamilton, Bermuda, November 27, 2009. Ship Finance International Limited (“Ship Finance” or the “Company”) today announced its preliminary financial results for the quarter ended September 30, 2009.
The Board of Directors has declared a quarterly dividend of $0.30 per share in cash, or, at the election of the shareholder, payable in newly issued common shares. The dividend will be paid on or about January 27, 2010 to shareholders of record as of December 8, 2009. The ex-dividend date will be December 4, 2009.
Similar to the previous three quarters, shareholders may make an election to receive the dividend in newly issued common shares after reviewing a prospectus supplement relating to the dividend payment which will be filed with the U.S. Securities and Exchange Commission (“SEC”). The number of common shares to be issued as dividend will be set based on the volume-weighted average price of the shares on the New York Stock Exchange during the three trading days prior to the ex-dividend date, less a 5% discount.
The Company’s largest shareholders, Farahead Investments Inc. (“Farahead”) and Hemen Holding Ltd. (“Hemen”), who collectively own 42.6 % of the shares, have again informed the Company that they will elect to receive all of their dividends in the form of newly issued common shares. Farahead and Hemen are indirectly controlled by trusts established by Mr. John Fredriksen for the benefit of his immediate family.
The Company reported total operating revenues of $80.2 million, or $1.04 per share, in the third quarter of 2009. This number excludes charter hire classified as ‘repayment of investments in finance lease’, and also excludes substantial charter revenues in three 100% owned subsidiaries classified as ‘investment in associate’. Net operating income for the quarter was $46.1 million, or $0.60 per share, and reported net income was $34.0 million, or $0.44 per share.
Adjusted net income in the third quarter was $36.3 million, or $0.47 per share. The adjustments include a negative non-cash mark-to-market of derivatives of $2.3 million and a minor gain on sale of asset of $0.02 million.
The profit share accrued in the third quarter was $4.8 million, or $0.06 per share, compared to $8.0 million, or $0.11 per share in the second quarter of 2009. The total profit share accrued in the first three quarters is $27.3 million, and will be payable in March 2010
Under US GAAP, the 100% owned ultra-deepwater drilling units West Polaris, West Hercules and West Taurus and the Panamax dry bulk vessel Golden Shadow are accounted for as ‘investment in associate’. Consequently, only the aggregate ‘net income’ from these vessel-owning subsidiaries is recognized in the consolidated income statement of Ship Finance as ‘results in associate’.
For the complete report please see the link below.
November 27, 2009
Magnus T. Valeberg: Vice President, Ship Finance Management AS
+47 23114012 / +47 93440960