Ship Finance International Limited – Third Quarter 2007 Results

Reports Third Quarter 2007 Results and Quarterly Dividend of $0.55 Per Share

HAMILTON, Bermuda, Nov. 15, 2007 (PRIME NEWSWIRE) — Ship Finance International Limited (“Ship Finance” or the “Company”) announces the financial results for the quarter ended September 30, 2007.


  * Declared a quarterly cash dividend of $0.55 per share.

  * Reported net income for the quarter of $20.6 million or $0.28 per
    share, including profit share contribution of $5.5 million or
    $0.07 per share in the third quarter.

  * $7.2 million or $0.10 per share non-cash negative adjustment in
    mark-to-market of interest and bond swaps, primarily due to lower
    interest rates at the end of the third quarter compared to the
    previous quarter.

  * Fixed-rate charter hire, excluding profit share contribution,
    increased by 15% to $132.8 million, or $1.83 per share in the
    quarter. Due to lease accounting, a significant portion of the
    cash flow is not included in the Income Statement, but appears as
    'repayment of investment in finance leases' only.

  * The Company's second jack-up drilling rig West Prospero was
    delivered from the shipyard end of June 2007 and was in operation
    for the full quarter.

  * Acquisition of the 2003 built 1,700 TEU container vessel Montemar
    Europa, which was delivered to Ship Finance end of August 2007.

  * Acquisition of seven offshore supply vessels from Deep Sea Supply
    Plc. in combination with 12-year charters. Four vessels were
    delivered in September 2007, one vessel in October 2007 and the
    last two vessels are expected to be delivered in December 2007.

  * Announced the sale of the single hull VLCC Front Duchess to an
    unrelated third party. Delivery to new owner is expected in the
    first quarter 2008.

  * The Board of Directors has approved a share repurchase program
    for up to 7 million shares (9.6% of outstanding shares).

Dividends and Results for the Quarter ended September 30, 2007

The Board of Directors has declared a cash dividend for the third quarter of $0.55 per share. The dividend will be paid on or about December 10, 2007 to shareholders of record as of November 27, 2007. The ex-dividend date will be November 23, 2007.

The Company reported total operating revenues of $93.4 million or $1.28 per share in the third quarter. This includes $5.5 million or $0.07 per share of profit share from subsidiaries of Frontline Ltd. (“Frontline”). Net operating income for the quarter was $59.9 million or $0.82 per share and net income was $20.6 million or $0.28 per share.

The profit share contribution is down from $15.7 million, or $0.22 per share in the second quarter, due to lower earnings in the spot tanker market in the period. Year-to-date, $36.4 million of profit share has accumulated, of which $15.2 million, or $0.21 per share has not yet been recognized in the accounts, and will be included in the fourth quarter.

The fixed-rate charter hire increased to $132.8 million, or $1.83 per share in the quarter, up from $115.0 million, or $1.58 per share in the second quarter. Net of operating expenses and general and administrative expenses in the third quarter, the contribution from the fixed-rate charters was $105.4 million or $1.45 per share, compared to $87.8 million, or $1.21 per share in the second quarter. This excludes profit share contribution.

For the complete report please click or cut and paste the following link,

November 15, 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