Ship Finance International Limited (NYSE: SFL) – Earnings Release
Reports preliminary 3Q 2015 results and increased quarterly dividend of $0.45 per share
Hamilton, Bermuda, November 24, 2015. Ship Finance International Limited (“Ship Finance” or the “Company”) today announced its preliminary financial results for the quarter ended September 30, 2015.
- Increased third quarter dividend of $0.45 per share
- $16.6 million profit share from vessels on charter to Frontline
- Successful delivery of eight Capesize dry bulk carriers with long-term charters
- Acquisition of container vessels with long term charters
- Sale of older crude oil tankers
- Selected key financial data:
|Three Months Ended|
|Sep 30, 2015||Jun 30, 2015|
|Net income||$ 45m||$ 68m|
|Earnings per share||$0.49||$0.73|
Dividends and Results for the Quarter Ended September 30, 2015
The Board of Directors has declared an increased quarterly cash dividend of $0.45 per share. The dividend will be paid on or about December 30, 2015 to shareholders on record as of December 10, 2015, and the ex-dividend date will be December 8, 2015. This is the 47th consecutive quarterly dividend declared by the Company.
The Company reported total U.S. GAAP operating revenues on a consolidated basis of $111 million, or $1.18 per share, in the third quarter of 2015. This number excludes $9.1 million of revenues classified as ‘repayment of investments in finance lease’, and $47 million of charter revenues earned by 100% owned assets classified as ‘investment in associate’.
The new 50% profit share agreement with Frontline had a positive contribution of $16.6 million, or $0.18 per share in the third quarter. There was also a $1.0 million profit share in the third quarter relating to some of our dry bulk carriers.
Reported net operating income pursuant to U.S. GAAP for the quarter was $58.6 million, or $0.63 per share, and reported net income was $45.5 million, or $0.49 per share. This is after approximately $15.2 million, or $0.16 per share in negative non-cash charges, which includes a negative mark-to-market of $12.4 million related to interest rate hedging instruments and amortization of deferred charges of $2.8 million in the third quarter of 2015.
Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS, said in a comment: “Ship Finance delivers yet another strong quarter, and with new vessel deliveries, the distributable cash-flow is expected to increase going forward. Our business model has been tested through all market cycles, and we have been profitable every quarter. With our track record and industry relationships we have access to a consistent stream of growth opportunities, and we have significant capital available for new accretive investments.”
Investor and Analyst Contact:
Harald Gurvin, Chief Financial Officer: +47 23114009
André Reppen, Senior Vice President: +47 23114055
About Ship Finance
Ship Finance International Limited (NYSE: SFL) has an unprecedented track record in the maritime industry, being consistently profitable and paying dividends every quarter since 2004. The Company’s fleet of more than 70 vessels is split between tankers, bulkers, container vessels and offshore assets, and Ship Finance’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company’s website: www.shipfinance.bm
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.