SFL – Third Quarter 2014 Results

Ship Finance International Limited (NYSE: SFL) – Earnings Release

Reports preliminary third quarter 2014 results and quarterly dividend of $0.41 per share

Hamilton, Bermuda, November 25, 2014. Ship Finance International Limited (“Ship Finance” or the “Company”) today announced its preliminary financial results for the quarter ended September 30, 2014.



  • Third quarter dividend of $0.41 per share

  • $7.9 million accumulated in cash sweep from Frontline

  • Acquisition of two 2012-built 82,000 dwt dry-bulk carriers in combination with long-term charters

  • Delivery of two 8,700 TEU container vessels in combination with long-term charters

  • Sale of three older VLCCs

  • Selected key financial data:
Three Months Ended    
  Sep 30, 2014 Jun 30, 2014
Charter revenues(1)   $176m $157m
EBITDA(2) $146m $129m
Net income                    $ 35m                $  22m
Earnings per share    $0.37    $0.24  

Dividends and Results for the Quarter Ended September 30, 2014

The Board of Directors has declared a quarterly cash dividend of $0.41 per share, and Ship Finance has now declared dividends for 43 consecutive quarters. The dividend will be paid on or about December 30, 2014 to shareholders on record as of December 12, 2014. The ex-dividend date at NYSE will be December 10, 2014.

The Company reported total U.S. GAAP operating revenues on a consolidated basis of $83.2 million, or $0.89 per share, in the third quarter of 2014. This number excludes $11.3 million of revenues classified as ‘repayment of investments in finance lease’, and $82.3 million of charter revenues earned by assets classified as ‘investment in associate’.

The cash sweep agreement with subsidiaries of Frontline had a positive effect of $7.9 million, or $0.08 per share in the quarter despite the soft tanker market that continued into the third quarter. The cash sweep for the full year 2014 will be payable in March 2015. There was also a $0.1 million profit share in the quarter relating to four Handysize dry-bulk carriers.

Reported net operating income pursuant to U.S. GAAP for the quarter was $38.5 million, or $0.41 per share, and reported net income was $34.6 million, or $0.37 per share. This is after approximately $2.8 million of expenses related to amortization of deferred charges which has no cash effect for the Company.

The full report can be found in the link below.

Questions can be directed to Ship Finance Management AS:

Investor and Analyst Contact:

Harald Gurvin, Chief Financial Officer: +47 23114009
André Reppen, Senior Vice President: +47 23114055


Media Contact:

Ole B. Hjertaker, Chief Executive Officer: +47 23114011

About Ship Finance

Ship Finance is a major ship owning company listed on the New York Stock Exchange (NYSE: SFL). Including newbuildings and adjusted for the sale of assets, the Company will have a fleet of 70 vessels, including 19 crude oil tankers (VLCC and Suezmax), two chemical tankers, 14 drybulk carriers, 22 container vessels (including two newbuildings), two car carriers, six offshore supply vessels, two jack-up drilling rigs, two ultra-deepwater semi-submersible drilling rigs and one ultra-deepwater drillship. The fleet is one of the largest in the world and most of the vessels are employed on 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 worldwide 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.

Third Quarter 2014 Results