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, http://hugin.info/134876/R/1168808/229876.pdf
November 15, 2007
The Board of Directors
Ship Finance International Limited
CONTACT: Ship Finance Management AS Lars Solbakken, Chief Executive Officer +47 23114006 / +47 91198844 Ole B. Hjertaker, Chief Financial Officer +47 23114011 / +47 90141243