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SFL - Second Quarter 2018 Results

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Ship Finance International Limited (NYSE:SFL) - Earnings Release


Reports preliminary Q2 2018 results and quarterly cash dividend of $0.35 per share


Hamilton, Bermuda, August 22, 2018. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended June 30, 2018.

Highlights

  • Declaration of second quarter dividend of $0.35 per share, the Company's 58th consecutive quarterly dividend
  • Operating revenue of $97 million and net income of $16 million or $0.15 per share in the second quarter, after impairments of approximately $22 million relating to the sale of three older VLCCs subsequent to quarter end
  • Delivery of 19 container vessels in the second quarter, adding nearly $600 million of contracted future charter hire
  • Acquisition of three modern 10,600 TEU container vessels, in combination with six year charters to a leading container line, adding more than $260 million of contracted future charter hire
  • Continued fleet renewal with the divestment of three older VLCCs, a container vessel and a jackup drilling rig

Selected key financial data

    Three Months Ended
    Jun 30, 2018 Mar 31, 2018
Long term charter hire(1)   $127 million $118 million
Short term charter hire(2)   $14 million $15 million
Total charter hire(1)(2)    $141 million $133 million
Net Income   $16 million $25 million
Earnings per share   $0.15 $0.24

Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "Following the acquisition of three modern container vessels reported earlier today, Ship Finance's charter backlog has increased to $3.6 billion. 2018 has been an active year where we have significantly grown and renewed our fleet through a series of transactions. This has increased our cash flow visibility and diversified our counterparty exposure, and in the process we have maintained a strong liquidity profile, allowing us to act decisively on accretive growth opportunities that fit our investment profile."

Dividends and Results for the Quarter ended June 30, 2018

The Board of Directors has declared a quarterly cash dividend of $0.35 per share. The dividend will be paid on or around September 27, 2018 to shareholders on record as of September 14, 2018 and the ex-dividend date on the New York Stock Exchange will be September 13, 2018.

The full report can be found in the link below and at the Company's website www.shipfinance.bm.

Questions can be directed to Ship Finance Management AS:

Investor and Analyst Contact:
Harald Gurvin, Chief Financial Officer: +47 23114009
André Reppen, Senior Vice President: +47 23114055

Media Contact:
Ole B. Hjertaker, Chief Executive Officer: +47 23114011

About Ship Finance
Ship Finance International Limited (NYSE:SFL) has a unique track record in the maritime industry, being consistently profitable and paying dividends every quarter since 2004. The Company's fleet of more than 80 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 at 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.

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