2012-11-29 14:50:34 -
HAMILTON, BERMUDA -- (Marketwire) -- 11/29/12 --
Ship Finance International Limited (NYSE: SFL) - Earnings Release
Reports preliminary 3Q 2012 results and quarterly dividend of $0.39 per
share
Hamilton, Bermuda, November 29, 2012. Ship Finance International Limited
("Ship
Finance" or the "Company") today announced its preliminary financial
results for
the quarter ended September 30, 2012.
Highlights:
* Declares a third quarter dividend of $0.39 per share.
* Declares an additional accelerated dividend of $0.39 per share for the
fourth quarter 2012, payable in December 2012.
* Acquisition of two car carriers in combination with long-term charters.
* Recently raised $194 million of equity and senior unsecured bonds.
* Selected key financial data:
+-----------------------+-----------------------------+
| | Three Months Ended |
| | |
| | Sep 30, 2012 Jun 30, 2012 |
+-----------------------+-----------------------------+
| Charter revenues((1)) | $179m $182m |
| | |
| EBITDA((2)) | $145m $150m |
| | |
| Net income | $35m $61m |
| | |
| Earnings per share | $0.44 $0.77 |
| | |
| Dividend per share | $0.39 $0.39 |
+-----------------------+-----------------------------+
Dividends and Results for the Quarter Ended September 30, 2012
The Board of Directors has declared a third quarter cash dividend of $0.39
per
share. The Board has noted that a significant part of the Company's U.S.
shareholder base may be subject to increased dividend taxation for 2013. In
view
of this, the Board has decided to accelerate the dividend payment for the
fourth
quarter 2012 such that the dividend can be paid out together with the third
quarter dividend in December 2012.
The combined dividend of $0.78 per share will be paid on or about December
28, 2012 to shareholders of record as of December 20, 2012. The ex-dividend
date
will be December 18, 2012. In view of the acceleration of the fourth
quarter
2012 dividend payment, no additional dividend payment can be expected prior
to
the declaration of the first quarter dividend in 2013.
The Company reported total U.S. GAAP operating revenues on a consolidated
basis
of $74.3 million, or $0.94 per share, in the third quarter of 2012. This
number
excludes $14.6 million of revenues classified as 'repayment of
investments in
finance lease', and also excludes $88.9 million of charter revenues
earned by
assets classified as 'investment in associate'.
The cash sweep agreement with Frontline had a net positive effect of
$10.2
million, or $0.13 per share in the third quarter. This includes a
positive
contribution of $13.0 million relating to 23 vessels, less a $2.8
million
negative adjustment relating to the remaining five vessels. A total of
$40.1
million has accumulated in the first three quarters of 2012.
The Company recorded a $1.9 million gain on sale of vessels in the
quarter
arising from the sale of the 20-year old combination carrier Front
Rider. The
net cash proceeds to Ship Finance after repayment of associated debt was
$2.5
million, including a charter termination compensation payment from
Frontline of
$0.4 million.
Reported net operating income pursuant to U.S. GAAP for the quarter was
$35.1
million, or $0.44 per share, and reported net income was $34.6 million, or
$0.44
per share.
Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS
said in
a comment: "We continue to diversify our portfolio and deliver positive
results
and quarterly cash dividends. Our standing in the financial
markets is
demonstrated by the successful equity and bond placements in
October, in
addition to the recent bank financing of the newly acquired car carriers.
Mr Hjertaker continued: "We see an increasing number of investment
opportunities
and have recently acquired two car carriers at very attractive terms. We
are
well positioned for continued selective growth within our core segments,
and
expect to invest the remaining portion of the newly raised capital within
the
next four to six month period."
The full report can be found in the link below.
November 29, 2012
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Forward Looking Statements
This press release contains 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, data contained in the Company's records and other
data
available from third parties. 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 our view, could cause actual results to
differ
materially from those discussed in the forward-looking statements
include the
strength of world economies, fluctuations in currencies and interest
rates,
general market conditions including fluctuations in charter hire
rates and
vessel values, changes in demand in the markets in which we operate,
changes in
demand resulting from changes in OPEC's petroleum production levels
and
worldwide oil consumption and storage, developments regarding the
technologies
relating to oil exploration, changes in market demand in countries which
import
commodities and finished goods and changes in the amount and location
of the
production of those commodities and finished goods, increased
inspection
procedures and more restrictive import and export controls, changes
in our
operating expenses, including bunker prices, drydocking and insurance
costs,
performance of our charterers and other counterparties with whom we deal,
timely
delivery of vessels under construction within the contracted price,
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
Securities and
Exchange Commission.
Third Quarter 2012 Results:
hugin.info/134876/R/1661455/538252.pdf :
hugin.info/134876/R/1661455/538252.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ship Finance International Limited via Thomson Reuters ONE
[HUG#1661455]
Questions should be directed to:
Investor and Analyst Contact:
Harald Gurvin
Chief Financial Officer
Ship Finance Management AS
+47 23114009
Magnus T. Valeberg
Senior Vice President
Ship Finance Management AS
+47 23114012
Media Contact:
Ole B. Hjertaker
Chief Executive Officer
Ship Finance Management AS
+47 23114011
