Ship Finance International Reports Results for First Quarter 2007 and Declares Quarterly Dividend
HAMILTON, Bermuda, May 30, 2007 (PRIME NEWSWIRE) — Ship Finance International Limited (NYSE:SFL) (“Ship Finance” or the “Company”) announces today the financial results for the first quarter ended March 31, 2007.
* The Board of Directors has declared a cash dividend of $0.55 per share with respect to the first quarter of 2007, up from $0.54 per share for the previous quarter. * Total operating revenues for the quarter were $86.5 million or $1.19 per share and net income was $55.3 million or $0.76 per share. * The six single-hull Suezmax tankers Front Target, Front Traveller, Front Transporter, Front Comor, Front Granite and Front Sunda were sold and delivered to their new owners in March 2007. Net proceeds to the Company were $142.0 million adjusted for charter termination compensations to Frontline. A gain of $30.8 million relating to the sale of these vessels was recorded in the quarter. * In January 2007, Ship Finance announced the acquisition of a second newbuilding jack-up drilling rig for a purchase price of $210 million, in combination with a 15 year charter to Seadrill Limited ("Seadrill"). The rig is scheduled to be delivered from the shipyard in July 2007. * In February 2007, the Company announced the acquisition of two newbuilding 170,000 dwt dry bulk vessels for a total delivered cost price of $160 million, in combination with 15 year charters to Golden Ocean Group Limited ("Golden Ocean"). The vessels are scheduled to be delivered from the shipyard in the fourth quarter of 2008 and the first quarter of 2009. * In March 2007, Ship Finance announced the agreement to acquire three newbuilding seismic vessels from SCAN Geophysical ASA ("SCAN") based on a total delivered price of $210 million, or $70 million per vessel, including complete seismic equipment. The vessels are scheduled for delivery in 2008, and will be chartered back to SCAN for a period of 12 years thereafter. * In March 2007, Ship Finance announced the agreement to sell the single hull VLCC Front Vanadis to Great Elephant Corporation ("Great Elephant") a subsidiary of Taiwan Maritime Transportation Co. Ltd. in the form of a hire-purchase agreement. The vessel is chartered to Great Elephant until November 2010, with a purchase obligation at the end of the charter. Delivery took place at the beginning of May 2007.
Dividends and Results for the Quarter ended March 31, 2007
The Board of Directors has reviewed the long term prospects for the Company including its significant fixed charter backlog, growth prospects and strong financial position, and has decided to increase the dividend payment for the quarter to $0.55 per share. The dividend will be paid on or about June 21, 2007 to shareholders of record as of June 8, 2007. The ex-dividend date is June 6, 2007.
The Company reported total operating revenues of $86.5 million, net operating income of $83.0 million and net income of $55.3 million for the first quarter of 2007. Earnings per share for the quarter were $0.76. This includes a profit of $30.8 million relating to the sale of the six single hull Suezmax tankers.
For the first quarter of 2007, the Company estimates that a total of $15.2 million or $0.21 per share has accumulated in profit share from Frontline Ltd. (“Frontline”). Based on U.S. generally accepted accounting principles (“US GAAP”), this has not been accounted for in the period and will be recognized later in the year provided the vessels on charter to Frontline continue to earn in excess of the minimum fixed charter rates. As most of the Company’s assets are accounted for based on lease accounting, a significant portion of the charter hire received does not appear in the income statement as described in Note 2 to the Income Statement. These amounts are classified as ‘repayment of investment in finance leases’, and are included in the statement of cashflows only. For the first quarter, this amounted to $36.3 million or $0.50 per share.
Net cash provided by operating activities in the first quarter was $112.1 million, net cash provided by investing activities was $6.4 million and net cash used in financing activities was $36.6 million.
As of March 31, 2007, the Company had total cash and cash equivalents of $146.4 million and restricted cash of $13.5 million. In addition, $0.4 million in cash and cash equivalents was held in a 100% owned subsidiary accounted for under the equity method. At the end of the quarter, the Company had available undrawn credit lines in the amount of $219.7 million.
For the complete report please see the link below.
May 30, 2007 The Board of Directors Ship Finance International Limited Hamilton, Bermuda
CONTACT: Ship Finance Management AS Lars Solbakken, Chief Executive Officer +47 23114006 +47 91198844 Ole B. Hjertaker, Chief Financial Officer +47 23114011 +47 90141243