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


Reports preliminary Q3 2018 results and quarterly cash dividend of $0.35 per share


Hamilton, Bermuda, November 20, 2018. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended September 30, 2018.

Highlights

  • Declaration of third quarter dividend of $0.35 per share, the Company's 59th consecutive quarterly dividend
  • Operating revenue of $111 million and net income of $30 million or $0.28 per share in the third quarter
  • Acquired three 10,600 TEU container vessels with minimum 6-year time charters to Maersk Line, adding more than $260 million of contracted future charter hire
  • Agreed the sale of the jackup drilling rig Soehanah for $84 million, with estimated book gain of approximately $8 million in the fourth quarter
  • Issued NOK 600 million NIBOR + 4.75% five-year senior unsecured bonds due September 2023
  • Entered into lease financings totaling $400 million for four container vessels acquired in May 2018 at very attractive terms
  • Continued fleet renewal with the divestment of older VLCCs, including sale of two vessels subsequent to quarter end

Selected key data
Three months ended September 30, 2018

  Company
(excluding 100% owned associates)
100% owned
 associates
Long term charter hire(1) $102 million $35 million
Short term charter hire(1) $18 million -
Total charter hire(1) $120 million $35 million
Adjusted EBITDA(2) $86 million $35 million

Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "Ship Finance has invested nearly $900 million so far in 2018, far outweighing the divestment of older assets. And of a fleet totaling 84 vessels and rigs, only one vessel will soon remain from the initial fleet in 2004. This demonstrates our ability to continuously renew, diversify and increase our portfolio of assets and charters, supporting a long term distribution capacity.

The Company's strong liquidity profile and consistent ability to access attractively priced financing has allowed us to pursue accretive growth opportunities in the maritime and offshore industries. As a result more than $2 billion has been returned to shareholders through dividends since 2004."

Dividends and Results for the Quarter ended September 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 December 28, 2018 to shareholders on record as of December 12, 2018 and the ex-dividend date on the New York Stock Exchange will be December 11, 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.