Reports
preliminary 1Q 2016 results and quarterly dividend of $0.45 per
share
Hamilton, Bermuda, May 31, 2016.
Ship Finance International Limited ("Ship Finance" or the
"Company") today announced its preliminary financial results for
the quarter ended March 31, 2016.
Highlights
- Declaration of first quarter dividend of $0.45
per share, our 49th consecutive
dividend
- $24.7 million in profit share from Frontline in
the quarter as a result of a strong tanker market
- Continuation of the Company's strategy of fleet
renewal and diversification with sale of an older offshore support
vessel in the first quarter and an older VLCC subsequent to quarter
end
- Successful delivery of two large container
vessels with long term charters to Maersk Line
- Cash redemption of the $125 million convertible
notes due in February 2016 without diluting existing
shareholders
- Selected key financial data:
Three
Months Ended |
|
|
|
Mar 31, 2016 |
Dec 31, 2015 |
Charter
revenues(1) |
$174m |
$170m |
EBITDA(2) |
$139m |
$142m |
Net
income |
$ 47m |
$ 54m |
Earnings
per share |
$0.50 |
|
$0.58 |
|
|
|
|
|
|
Ole B. Hjertaker, CEO of Ship
Finance Management AS, said in a comment: "Ship Finance delivers
yet another strong quarter, and our fleet renewal and
diversification program continues with the recent delivery of two
newbuilding container vessels with long term charters to Maersk
Line.
Our business model has been tested
through all market cycles, and we are to our knowledge the only
maritime company which has been consistently profitable and paid
dividends every quarter the last twelve years. Our key focus
remains on prudently managing our balance sheet and our existing
asset portfolio whilst sourcing new accretive opportunities through
our industry relationships and unique access to deal flow."
Dividends and
Results for the Quarter Ended March 31, 2016
The Board of Directors has
declared a quarterly cash dividend of $0.45 per share. The
dividend will be paid on or around June 29 to shareholders on
record as of June 14, and the ex-dividend date on the New York
Stock Exchange will be June 10, 2016. This is the 49th consecutive
quarterly dividend declared by the Company.
The Company reported total U.S.
GAAP operating revenues on a consolidated basis of $117.6 million,
or $1.26 per share, in the first quarter of 2016. This number
excludes $8.8 million of charter revenues classified as 'repayment
of investments in finance lease' and $47.3 million of charter
revenues earned by 100% owned assets classified as 'investment in
associate.' Inclusive of those revenues, the total actual revenues
were $1.86 per share.
The 50% profit share agreement
with Frontline contributed $24.7 million, or $0.26 per share in the
first quarter above the base contracted rates. There was also a
$0.2 million profit share in the first quarter relating to some of
our dry bulk carriers.
Reported net operating income
pursuant to U.S. GAAP for the quarter was $57.2 million, or $0.61
per share, and reported net income was $46.8 million, or $0.50 per
share. This is after approximately $10.0 million, or $0.11 per
share in negative non-cash charges, which includes a negative
mark-to-market of $7.1 million related to interest rate hedging
instruments and amortization of deferred charges of $2.9 million in
the first quarter.
The full report can be found in
the link below.
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 an unprecedented track record in the maritime
industry, being consistently profitable and paying dividends every
quarter since 2004. The Company's fleet of more than 70 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
on 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.