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


Reports preliminary Q1 2018 results and quarterly cash dividend of $0.35 per share


Hamilton, Bermuda, May 31, 2018. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended March 31, 2018.

Highlights

  • Declaration of first quarter dividend of $0.35 per share, the Company's 57th consecutive quarterly dividend
  • Net income of $25 million and $133 million of total charter revenues for the first quarter
  • Acquisition of 15 feeder size container vessels in combination with seven-year lease back agreements, adding approximately $140 million to our charter backlog
  • Acquisition of four 14,000 TEU container vessels on long term charters to a leading container line until 2024, increasing the charter backlog by nearly $450 million
  • Further strengthened balance sheet with the issuance of $164 million of convertible notes due 2023

Selected key financial data

    Three Months Ended
    Mar 31, 2018 Dec 31, 2017
Long term charter revenues(1)   $118 million $139 million
Short term charters(2)   $15 million $13 million
Total charter revenues(1)(2)    $133 million $152 million
Adjusted EBITDA(3)   $100 million $117 million
Net Income   $25 million $20 million
Earnings per share   $0.24 $0.20

Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "Ship Finance has successfully deployed over $500 million towards accretive investments over the last three months. In the process, we have increased the size of our fleet considerably and further diversified our exposure with high quality counterparts.

The latest acquisition of four large eco-design container vessels alone increases the charter backlog by nearly $450 million, representing the Company's largest investment in five years, and we are very pleased to build a relationship with another leading container line. This clearly demonstrates our ability to source accretive transactions and reflects our stated commitment to continue building our contracted backlog supporting a long term dividend policy."

Dividends and Results for the Quarter Ended March 31, 2018

The Board of Directors has declared a quarterly cash dividend of $0.35 per share. The dividend will be paid on or around June 29, 2018 to shareholders on record as of June 15, 2018 and the ex-dividend date on the New York Stock Exchange will be June 14, 2018.

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 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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