SFL - Acquisition of 15 vintage vessels and sale of SFL Avon
March 14 2018 - 9:47AM
Ship Finance International Limited (NYSE: SFL)
("Ship Finance" or the "Company") announces that it has agreed to
acquire a fleet of 15 feeder size container vessels, ranging from
1,100 TEU to 4,400 TEU, in combination with long term bareboat
charters to a leading container line.
The purchase price is confidential, but close to
recycling value of the vessels. The charter term will be seven
years from delivery, with subsequent purchase obligations by the
charterer. Delivery of the vessels is expected in April and their
aggregate EBITDA contribution is estimated to be approximately $20
million per year.
Concurrently, the Company has agreed to sell the
1,700 TEU container vessel SFL Avon to an unrelated third party.
This vessel has been operated in the short term charter market and
net sales proceeds will be approximately $12.5 million. Delivery to
the new owner is expected in April 2018, and we expect a minor book
gain in connection with the sale.
Ole B. Hjertaker, CEO of Ship Finance Management
AS, said in a comment: "We are very pleased to continue building
our relationship with one of the world's leading container lines.
This transaction offers an attractive cash flow from a strong
counterpart and with limited downside risk. The SFL Avon was
our only container vessel operated in the short term charter
market, and in light of the recent upswing in values in the
sector we have decided to sell the vessel as we evaluate
various growth prospects. We are seeing increasing opportunities to
deploy capital in 2018 and we remain focused on growing our fleet
and charter backlog."
March 14, 2018
The Board of DirectorsShip Finance International
LimitedHamilton, Bermuda
Questions can be directed to Ship Finance
Management AS:
Investor and Analyst Contacts: Harald
Gurvin, Chief Financial Officer, Ship Finance Management AS +47 23
11 40 09 André Reppen, Senior Vice President, Ship Finance
Management AS +47 23 11 40 55
Media Contact: Ole B. Hjertaker, Chief
Executive Officer, Ship Finance Management AS +47 23 11 40 11
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 around 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.
SFL (NYSE:SFL)
Historical Stock Chart
From Aug 2024 to Sep 2024
SFL (NYSE:SFL)
Historical Stock Chart
From Sep 2023 to Sep 2024