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Ship Finance reports Q3 financial results

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

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

Ship Finance International Limited (“Ship Finance” or the “Company”) yesterday (Nov. 20) 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.

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