SFL - First Quarter 2016 Results
May 31 2016 - 7:42AM
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.
First Quarter 2016 Results
http://hugin.info/134876/R/2016539/748098.pdf
HUG#2016539
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